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SF 980

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:12am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to health care facility finance; restructuring and renaming the Minnesota
Higher Education Facilities Authority as the Minnesota Health and Education
Facilities Authority; authorizing the authority to construct and finance health care
facilities; increasing bonding capacity; amending Minnesota Statutes 2020, sections
3.732, subdivision 1; 10A.01, subdivision 35; 136A.25; 136A.26; 136A.27;
136A.28; 136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 22, by adding a
subdivision; 136A.32, subdivision 4; 136A.33; 136A.34, subdivisions 3, 4;
136A.36; 136A.38; 136A.41; 136A.42; 136F.67, subdivision 1; 354B.20,
subdivision 7; repealing Minnesota Statutes 2020, section 136A.29, subdivision
4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY

Section 1.

Minnesota Statutes 2020, section 136A.25, is amended to read:


136A.25 CREATION.

A state agency known as the Minnesota deleted text beginHigherdeleted text end new text beginHealth and new text endEducation Facilities Authority
is hereby created.

Sec. 2.

Minnesota Statutes 2020, section 136A.26, is amended to read:


136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.

Subdivision 1.

Membership.

The Minnesota deleted text beginHigherdeleted text end new text beginHealth and new text endEducation Facilities
Authority shall consist of deleted text begineightdeleted text endnew text begin ninenew text end members appointed by the governor with the advice
and consent of the senate, and a representative of the office.

All members to be appointed by the governor shall be residents of the state. At least two
members must reside outside the metropolitan area as defined in section 473.121, subdivision
2
. At least one of the members shall be a person having a favorable reputation for skill,
knowledge, and experience in the field of state and municipal finance; deleted text beginanddeleted text end at least one shall
be a person having a favorable reputation for skill, knowledge, and experience in the building
construction field; deleted text beginanddeleted text end at least one of the members shall be a trustee, director, officer, or
employee of an institution of higher educationnew text begin; and at least one of the members shall be a
trustee, director, officer, or employee of a health care organization
new text end.

Subd. 1a.

Private College Council member.

The president of the Minnesota Private
College Council, or the president's designee, shall serve without compensation as an advisory,
nonvoting member of the authority.

new text begin Subd. 1b. new text end

new text begin Nonprofit health care association member. new text end

new text begin The chief executive officer of
a Minnesota nonprofit membership association whose members are primarily nonprofit
health care organizations, or the chief executive officer's designee, shall serve without
compensation as an advisory, nonvoting member of the authority. The identity of the
Minnesota nonprofit membership association shall be determined and may be changed from
time to time by the members of the authority in accordance with and as shall be provided
in the bylaws of the authority.
new text end

Subd. 2.

Term; compensation; removal.

The membership terms, compensation, removal
of members, and filling of vacancies for authority members other than the representative
of the office, deleted text beginanddeleted text end the president of the Private College Council,new text begin or the chief executive officer
of the Minnesota nonprofit membership association described in subdivision 1b
new text end shall be as
provided in section 15.0575.

Sec. 3.

Minnesota Statutes 2020, section 136A.27, is amended to read:


136A.27 POLICY.

It is hereby declared that for the benefit of the people of the state, the increase of their
commerce, welfare and prosperity and the improvement of their health and living conditions
it is essential that new text beginhealth care organizations within the state be provided with appropriate
additional means to establish, acquire, construct, improve, and expand health care facilities
in furtherance of their purposes; that
new text endthis and future generations of youth be given the fullest
opportunity to learn and to develop their intellectual and mental capacities; deleted text beginthat it is essentialdeleted text end
that institutions of higher education within the state be provided with appropriate additional
means to assist such youth in achieving the required levels of learning and development of
their intellectual and mental capacitiesnew text begin;new text end andnew text begin that health care organizations and institutions
of higher education
new text end be enabled to refinance outstanding indebtedness incurred to provide
existing facilities used for such purposes in order to preserve and enhance the utilization of
facilities for purposes of new text beginhealth care and new text endhigher education, to extend or adjust maturities in
relation to the resources available for their payment, and to save interest costs and thereby
reduce new text beginhealth care costs or higher education new text endtuition, feesnew text begin,new text end and chargesdeleted text begin; anddeleted text endnew text begin. It is hereby
further declared
new text end that it is the purpose of sections 136A.25 to 136A.42 to provide a measure
of assistance and an alternative method to enable new text beginhealth care organizations and new text endinstitutions
of higher education in the state to provide the facilities and structures which are sorely
needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit
and good, to the extent and manner provided herein.

Sec. 4.

Minnesota Statutes 2020, section 136A.28, is amended to read:


136A.28 DEFINITIONS.

Subdivision 1.

Scope.

In sections 136A.25 to 136A.42, the following words and terms
shall, unless the context otherwise requires, have the meanings ascribed to them.

new text begin Subd. 1a. new text end

new text begin Affiliate. new text end

new text begin "Affiliate" means an entity that directly or indirectly controls, is
controlled by, or is under common control with, another entity. For the purposes of this
paragraph, "control" means either the power to elect a majority of the members of the
governing body of an entity or the power, whether by contract or otherwise, to direct the
management and policies of the entity. Affiliate also means an entity whose business or
substantially all of whose property is operated under a lease, management agreement, or
operating agreement by another entity, or an entity who operates the business or substantially
all of the property of another entity under a lease, management agreement, or operating
agreement.
new text end

Subd. 2.

Authority.

"Authority" means the deleted text beginHigherdeleted text end new text beginHealth and new text endEducation Facilities
Authority created by sections 136A.25 to 136A.42.

Subd. 3.

Project.

"Project" means deleted text begina structure or structures available for use as a dormitory
or other student housing facility, a dining hall, student union, administration building,
academic building, library, laboratory, research facility, classroom, athletic facility, health
care facility, child care facility, and maintenance, storage, or utility facility and other
structures or facilities related thereto or required or useful for the instruction of students or
the conducting of research or the operation of an institution of higher education, whether
proposed, under construction, or completed, including parking and other facilities or
structures essential or convenient for the orderly conduct of such institution for higher
education, and shall also include landscaping, site preparation, furniture, equipment and
machinery, and other similar items necessary or convenient for the operation of a particular
facility or structure in the manner for which its use is intended but shall not include such
items as books, fuel, supplies, or other items the costs of which are customarily deemed to
result in a current operating charge, and shall
deleted text end new text begina health care facility or an education facility
whether proposed, under construction, or completed, and includes land or interests in land,
appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures,
furniture, machinery, equipment, and parking. Project also includes other structures, facilities,
improvements, machinery, equipment, and means of transport of a capital nature that are
necessary or convenient for the operation of the facility. Project does
new text endnot includenew text begin: (1)new text end any
facility used or to be used for sectarian instruction or as a place of religious worship deleted text beginnordeleted text endnew text begin;
(2)
new text end any facility which is used or to be used primarily in connection with any part of the
program of a school or department of divinity for any religious denominationnew text begin; nor (3) any
books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are
customarily deemed to result in a current operating charge
new text end.

Subd. 4.

Cost.

"Cost," as applied to a project or any portion thereof financed under the
provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction,
acquisition, alteration, enlargement, reconstruction and remodeling of a project including
all lands, structures, real or personal property, rights, rights-of-way, franchises, easements
and interests acquired or used for or in connection with a project, the cost of demolishing
or removing any buildings or structures on land so acquired, including the cost of acquiring
any lands to which deleted text beginsuchdeleted text end buildings or structures may be moved, the cost of all machinery
and equipment, financing charges, interest prior to, during and for a period after completion
of such construction and acquisition, provisions for reserves for principal and interest and
for extensions, enlargements, additions and improvements, the cost of architectural,
engineering, financial and legal services, plans, specifications, studies, surveys, estimates
of cost and of revenues, administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing the project and such other
expenses as may be necessary or incident to the construction and acquisition of the project,
the financing of such construction and acquisition and the placing of the project in operation.

Subd. 5.

Bonds.

"Bonds," or "revenue bonds" means revenue bonds of the authority
issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding
bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit
of a participating institution deleted text beginfor higher educationdeleted text end or any other lawfully pledged security of
a participating institution deleted text beginfor higher educationdeleted text end.

Subd. 6.

Institution of higher education.

"Institution of higher education" means a
nonprofit educational institution within the state authorized to provide a program of education
beyond the high school level.

new text begin Subd. 6a. new text end

new text begin Health care organization. new text end

new text begin (a) "Health care organization" means a nonprofit
organization located within the state and authorized by law to operate a nonprofit health
care facility in the state. Health care organization also means a nonprofit affiliate of a health
care organization as defined under this paragraph, provided the affiliate is located within
the state or within a state that is geographically contiguous to Minnesota.
new text end

new text begin (b) Health care organization also means a nonprofit organization located within another
state that is geographically contiguous to Minnesota and authorized by law to operate a
nonprofit health care facility in that state, provided that the nonprofit organization located
within the contiguous state is an affiliate of a health care organization located within the
state.
new text end

new text begin Subd. 6b. new text end

new text begin Education facility. new text end

new text begin "Education facility" means a structure or structures
available for use as a dormitory or other student housing facility, dining hall, student union,
administration building, academic building, library, laboratory, research facility, classroom,
athletic facility, student health care facility, or child care facility, and includes other facilities
or structures related thereto essential or convenient for the orderly conduct of an institution
of higher education.
new text end

new text begin Subd. 6c. new text end

new text begin Health care facility. new text end

new text begin (a) "Health care facility" means a structure or structures
available for use within this state as a hospital, clinic, psychiatric residential treatment
facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
medical office building, residence for nurses or interns, nursing home, boarding care home,
assisted living facility, residential hospice, intermediate care facility for persons with
developmental disabilities, supervised living facility, housing with services establishment,
board and lodging establishment with special services, adult day care center, day services
facility, prescribed pediatric extended care facility, community residential setting, adult
foster home, or other facility related to medical or health care research, or the delivery or
administration of health care services, and includes other structures or facilities related
thereto essential or convenient for the orderly conduct of a health care organization.
new text end

new text begin (b) Health care facility also means a facility in a state that is geographically contiguous
to Minnesota operated by a health care organization that corresponds by purpose, function,
or use with a facility listed in paragraph (a).
new text end

Subd. 7.

Participating institution deleted text beginof higher educationdeleted text end.

"Participating institution deleted text beginof
higher education
deleted text end" meansnew text begin a health care organization ornew text end an institution of higher education
that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and
construction or acquisition of a project or undertakes the refunding or refinancing of
obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42.
Community colleges and technical colleges may be considered participating institutions deleted text beginof
higher education
deleted text end for the purpose of financing and constructing child care facilities and
parking facilities.

Sec. 5.

Minnesota Statutes 2020, section 136A.29, subdivision 1, is amended to read:


Subdivision 1.

Purpose.

The purpose of the authority shall be to assist new text beginhealth care
organizations and
new text endinstitutions of higher education in the construction, financing, and
refinancing of projects. The exercise by the authority of the powers conferred by sections
136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public
function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the
powers and duties set forth in subdivisions 2 to 23.

Sec. 6.

Minnesota Statutes 2020, section 136A.29, subdivision 3, is amended to read:


Subd. 3.

Employees.

The authority is authorized and empowered to appoint and employ
employees as it may deem necessary to carry out its duties, determine the title of the
employees so employed, and fix the salary of deleted text beginsaiddeleted text endnew text begin itsnew text end employees. Employees of the authority
shall participate in retirement and other benefits in the same manner that employees in the
deleted text begin unclassified service of the officedeleted text endnew text begin managerial plan under section 43A.18, subdivision 3,new text end
participate.

Sec. 7.

Minnesota Statutes 2020, section 136A.29, subdivision 6, is amended to read:


Subd. 6.

Projects; generally.

new text begin(a) new text endThe authority is authorized and empowered to determine
the location and character of any project to be financed under the provisions of sections
136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge,
alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into
contracts for any or all of such purposes, to enter into contracts for the management and
operation of a project, and to designate a participating institution deleted text beginof higher educationdeleted text end as its
agent to determine the location and character of a project undertaken by such participating
institution deleted text beginof higher educationdeleted text end under the provisions of sections 136A.25 to 136A.42 and as
the agent of the authority, to construct, reconstruct, remodel, maintain, manage, enlarge,
alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, and as the
agent of the authority, to enter into contracts for any or all of such purposes, including
contracts for the management and operation of such project.

new text begin (b) Notwithstanding paragraph (a), a project involving a health care facility within the
state financed under sections 136A.25 to 136A.42, must comply with all applicable
requirements in state law related to authorizing construction of or modifications to a health
care facility, including the requirements of sections 144.5509, 144.551, 144A.071, and
252.291.
new text end

new text begin (c) new text endContracts of the authority or of a participating institution deleted text beginof higher educationdeleted text end to
acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair
projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other
public contract or competitive bid law.

Sec. 8.

Minnesota Statutes 2020, section 136A.29, subdivision 9, is amended to read:


Subd. 9.

Revenue bonds; limit.

The authority is authorized and empowered to issue
revenue bonds whose aggregate principal amount at any time shall not exceed deleted text begin$1,300,000,000deleted text endnew text begin
$4,000,000,000
new text end and to issue notes, bond anticipation notes, and revenue refunding bonds
of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for
acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving,
furnishing, or equipping one or more projects or parts thereof.

Sec. 9.

Minnesota Statutes 2020, section 136A.29, subdivision 10, is amended to read:


Subd. 10.

Revenue bonds; issuance, purpose, conditions.

The authority is authorized
and empowered to issue revenue bonds to acquire projects from or to make loans to
participating institutions deleted text beginof higher educationdeleted text end and thereby refinance outstanding indebtedness
incurred by participating institutions deleted text beginof higher educationdeleted text end to provide funds for the acquisition,
construction or improvement of a facility before or after the enactment of sections 136A.25
to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the
authority finds that such refinancing will enhance or preserve such participating institutions
and such facilities or utilization thereof for new text beginhealth care or new text endeducational purposes or extend
or adjust maturities to correspond to the resources available for their payment, or reduce
new text begin charges or fees imposed on patients or occupants, or new text endthe tuition, chargesnew text begin,new text end or fees imposed
on students for the use new text beginor occupancy new text endof the facilities of such participating institutions deleted text beginof
higher education
deleted text end or costs met by federal or state public funds, or enhance or preserve new text beginhealth
care or
new text endeducational programs and research or the acquisition or improvement of other
facilities eligible to be a project or part thereof by the participating institution deleted text beginof higher
education
deleted text end. The amount of revenue bonds to be issued to refinance outstanding indebtedness
of a participating institution deleted text beginof higher educationdeleted text end shall not exceed the lesser of (a) the fair
value of the project to be acquired by the authority from the institution or mortgaged to the
authority by the institution or (b) the amount of the outstanding indebtedness including any
premium thereon and any interest accrued or to accrue to the date of redemption and any
legal, fiscal and related costs in connection with such refinancing and reasonable reserves,
as determined by the authority. The provisions of this subdivision do not prohibit the authority
from issuing revenue bonds within and charged against the limitations provided in subdivision
9 to provide funds for improvements, alteration, renovation, or extension of the project
refinanced.

Sec. 10.

Minnesota Statutes 2020, section 136A.29, subdivision 14, is amended to read:


Subd. 14.

Rules for use of projects.

The authority is authorized and empowered to
establish rules for the use of a project or any portion thereof and to designate a participating
institution deleted text beginof higher educationdeleted text end as its agent to establish rules for the use of a project undertaken
for such participating institution deleted text beginof higher educationdeleted text end.

Sec. 11.

Minnesota Statutes 2020, section 136A.29, subdivision 19, is amended to read:


Subd. 19.

Surety.

Before the issuance of any revenue bonds under the provisions of
sections 136A.25 to 136A.42, any member or officer of the authority authorized by resolution
of the authority to handle funds or sign checks of the authority shall be covered under a
surety or fidelity bond in an amount to be determined by the authority. Each such bond shall
be conditioned upon the faithful performance of the duties of the office of the member or
officer, new text beginand new text endshall be executed by a surety company authorized to transact business in the
state of Minnesota as surety. The cost of each such bond shall be paid by the authority.

Sec. 12.

Minnesota Statutes 2020, section 136A.29, subdivision 20, is amended to read:


Subd. 20.

Sale, lease, and disposal of property.

The authority is authorized and
empowered to sell, lease, releasenew text begin,new text end or otherwise dispose of real and personal property or
interests therein, or a combination thereof, acquired by the authority under authority of
sections 136A.25 to 136A.42 and no longer needed for the purposes of deleted text beginsuchdeleted text endnew text begin thisnew text end chapter or
of the authority, and grant such easements and other rights in, over, under, or across a project
as will not interfere with its use of deleted text beginsuchdeleted text endnew text begin thenew text end property. deleted text beginSuchdeleted text endnew text begin Thenew text end sale, lease, release,
disposition, or grant may be made without competitive bidding and in deleted text beginsuchdeleted text endnew text begin thenew text end mannernew text begin andnew text end
for such consideration as the authority in its judgment deems appropriate.

Sec. 13.

Minnesota Statutes 2020, section 136A.29, subdivision 21, is amended to read:


Subd. 21.

Loans.

The authority is authorized and empowered to make loans to any
participating institution deleted text beginof higher educationdeleted text end for the cost of a project in accordance with an
agreement between the authority and the participating institution deleted text beginof higher educationdeleted text end;
provided that no deleted text beginsuchdeleted text end loan shall exceed the total cost of the project as determined by the
participating institution deleted text beginof higher educationdeleted text end and approved by the authority.

Sec. 14.

Minnesota Statutes 2020, section 136A.29, subdivision 22, is amended to read:


Subd. 22.

Costs, expenses, and other charges.

The authority is authorized and
empowered to charge to and apportion among participating institutions deleted text beginof higher educationdeleted text end
its administrative costs and expenses incurred in the exercise of the powers and duties
conferred by sections 136A.25 to 136A.42new text begin in the manner as the authority in its judgment
deems appropriate
new text end.

Sec. 15.

Minnesota Statutes 2020, section 136A.29, is amended by adding a subdivision
to read:


new text begin Subd. 24. new text end

new text begin Determination of affiliate status. new text end

new text begin The authority is authorized and empowered
to determine whether an entity is an affiliate as defined in section 136A.28, subdivision 1a.
A determination by the authority of affiliate status shall be deemed conclusive for the
purposes of sections 136A.25 to 136A.42.
new text end

Sec. 16.

Minnesota Statutes 2020, section 136A.32, subdivision 4, is amended to read:


Subd. 4.

Provisions of resolution authorizing bonds.

Any resolution or resolutions
authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which
shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:

(1) pledging all or any part of the revenues of a project or projects, any revenue producing
contract or contracts made by the authority with deleted text beginany individual partnership, corporation or
association or other body
deleted text endnew text begin one or more partnerships, corporations or associations, or other
bodies
new text end, public or private, to secure the payment of the revenue bonds or of any particular
issue of revenue bonds, subject to such agreements with bondholders as may then exist;

(2) the rentals, fees and other charges to be charged, and the amounts to be raised in
each year thereby, and the use and disposition of the revenues;

(3) the setting aside of reserves or sinking funds, and the regulation and disposition
thereof;

(4) limitations on the right of the authority or its agent to restrict and regulate the use of
the project;

(5) limitations on the purpose to which the proceeds of sale of any issue of revenue
bonds then or thereafter to be issued may be applied and pledging such proceeds to secure
the payment of the revenue bonds or any issue of the revenue bonds;

(6) limitations on the issuance of additional bonds, the terms upon which additional
bonds may be issued and secured and the refunding of outstanding bonds;

(7) the procedure, if any, by which the terms of any contract with bondholders may be
amended or abrogated, the amount of bonds the holders of which must consent thereto, and
the manner in which such consent may be given;

(8) limitations on the amount of moneys derived from the project to be expended for
operating, administrative or other expenses of the authority;

(9) defining the acts or omissions to act which shall constitute a default in the duties of
the authority to holders of its obligations and providing the rights and remedies of such
holders in the event of a default;new text begin or
new text end

(10) the mortgaging of a project and the site thereof for the purpose of securing the
bondholders.

Sec. 17.

Minnesota Statutes 2020, section 136A.33, is amended to read:


136A.33 TRUST AGREEMENT.

In the discretion of the authority any revenue bonds issued under the provisions of
sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the
authority and a corporate trustee or trustees, which may be any trust company or bank having
the powers of a trust company within the state. deleted text beginSuchdeleted text endnew text begin Thenew text end trust agreement or the resolution
providing for the issuance of deleted text beginsuchdeleted text end revenue bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may convey or mortgage the
project or any portion thereof. deleted text beginSuchdeleted text endnew text begin Thenew text end trust agreement or resolution providing for the
issuance of deleted text beginsuchdeleted text end revenue bonds may contain such provisions for protecting and enforcing
the rights and remedies of the bondholders as may be reasonable and proper and not in
violation of laws, including particularly such provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the authority authorizing revenue
bonds thereof. Any bank or trust company incorporated under the laws of the state deleted text beginwhichdeleted text endnew text begin
that
new text end may act as depository of the proceeds of bonds or of revenues or other moneys may
furnish deleted text beginsuchdeleted text end indemnifying bonds or deleted text beginpledges suchdeleted text end new text beginpledge new text endsecurities as may be required by
the authority. Any deleted text beginsuchdeleted text end trust agreement may set forth the rights and remedies of the
bondholders and of the trustee or trustees and may restrict the individual right of action by
bondholders. In addition to the foregoing, any deleted text beginsuchdeleted text end trust agreement or resolution may contain
deleted text begin suchdeleted text end other provisions as the authority may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions of deleted text beginsuchdeleted text endnew text begin thenew text end trust
agreement or resolution may be treated as a part of the cost of the operation of a project.

Sec. 18.

Minnesota Statutes 2020, section 136A.34, subdivision 3, is amended to read:


Subd. 3.

Investment.

Any deleted text beginsuchdeleted text end escrowed proceeds, pending such use, may be invested
and reinvested in direct obligations of the United States of America, or in certificates of
deposit or time deposits secured by direct obligations of the United States of America, new text beginor
in shares or units in any money market mutual fund whose investment portfolio consists
solely of direct obligations of the United States of America,
new text endmaturing at such time or times
as shall be appropriate to assure the prompt payment, as to principal, interest and redemption
premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income
and profits, if any, earned or realized on any such investment may also be applied to the
payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of such proceeds and interest, income
and profits, if any, earned or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.

Sec. 19.

Minnesota Statutes 2020, section 136A.34, subdivision 4, is amended to read:


Subd. 4.

Additional purpose; improvements.

The portion of the proceeds of any deleted text beginsuchdeleted text end
revenue bonds issued for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions or enlargements of a project
may be invested or deposited deleted text beginin time depositsdeleted text end as provided in section 136A.32, subdivision
7
.

Sec. 20.

Minnesota Statutes 2020, section 136A.36, is amended to read:


136A.36 REVENUES.

The authority may fix, revise, charge and collect rates, rents, fees and charges for the
use of and for the services furnished or to be furnished by each project and deleted text begintodeleted text endnew text begin maynew text end contract
with any person, partnership, association or corporation, or other body, public or private,
in respect thereof. deleted text beginSuchdeleted text endnew text begin Thenew text end rates, rents, feesnew text begin,new text end and charges new text beginmay vary between projects
involving an education facility and projects involving a health care facility and
new text endshall be
fixed and adjusted in respect of the aggregate of rates, rents, feesnew text begin,new text end and charges from deleted text beginsuchdeleted text endnew text begin
the
new text end project so as to provide funds sufficient with other revenues, if any:

(1) to pay the cost of maintaining, repairing and operating the project and each and every
portion thereof, to the extent that the payment of such cost has not otherwise been adequately
provided for;

(2) to pay the principal of and the interest on outstanding revenue bonds of the authority
issued in respect of such project as the same shall become due and payable; and

(3) to create and maintain reserves required or provided for in any resolution authorizing,
or trust agreement securing, deleted text beginsuchdeleted text end revenue bonds of the authority. deleted text beginSuchdeleted text endnew text begin Thenew text end rates, rents, fees
and charges shall not be subject to supervision or regulation by any department, commission,
board, body, bureau or agency of this state other than the authority. A sufficient amount of
the revenues derived in respect of a project, except deleted text beginsuchdeleted text end part of deleted text beginsuchdeleted text endnew text begin thenew text end revenues as may
be necessary to pay the cost of maintenance, repair and operation and to provide reserves
and for renewals, replacements, extensions, enlargements and improvements as may be
provided for in the resolution authorizing the issuance of any revenue bonds of the authority
or in the trust agreement securing the same, shall be set aside at such regular intervals as
may be provided in deleted text beginsuchdeleted text endnew text begin thenew text end resolution or trust agreement in a sinking or other similar fund
deleted text begin whichdeleted text endnew text begin thatnew text end is hereby pledged to, and charged with, the payment of the principal of and the
interest on deleted text beginsuchdeleted text end revenue bonds as the same shall become due, and the redemption price or
the purchase price of bonds retired by call or purchase as therein provided. deleted text beginSuchdeleted text endnew text begin Thenew text end pledge
shall be valid and binding from the time when the pledge is made; the rates, rents, fees and
charges and other revenues or other moneys so pledged and thereafter received by the
authority shall immediately be subject to the lien of deleted text beginsuchdeleted text endnew text begin thenew text end pledge without physical delivery
thereof or further act, and the lien of any such pledge shall be valid and binding as against
all parties having claims of any kind against the authority, irrespective of whether such
parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge
is created need be filed or recorded except in the records of the authority. The use and
disposition of moneys to the credit of such sinking or other similar fund shall be subject to
the provisions of the resolution authorizing the issuance of such bonds or of such trust
agreement. Except as may otherwise be provided in deleted text beginsuchdeleted text endnew text begin thenew text end resolution or deleted text beginsuchdeleted text end trust
agreement, deleted text beginsuchdeleted text endnew text begin thenew text end sinking or other similar fund shall be a fund for all deleted text beginsuchdeleted text end revenue bonds
issued to finance a project or projects at one or more participating institutions deleted text beginof higher
education
deleted text end without distinction or priority of one over another; provided the authority in any
such resolution or trust agreement may provide that such sinking or other similar fund shall
be the fund for a particular project at deleted text beginandeleted text endnew text begin a participatingnew text end institution deleted text beginof higher educationdeleted text end and
for the revenue bonds issued to finance a particular project and may, additionally, permit
and provide for the issuance of revenue bonds having a subordinate lien in respect of the
security herein authorized to other revenue bonds of the authority and, in such case, the
authority may create separate or other similar funds in respect of deleted text beginsuchdeleted text endnew text begin thenew text end subordinate lien
bonds.

Sec. 21.

Minnesota Statutes 2020, section 136A.38, is amended to read:


136A.38 BONDS ELIGIBLE FOR INVESTMENT.

Bonds issued bynew text begin thenew text end authority under the provisions of sections 136A.25 to 136A.42, are
hereby made securities in which all public officers and public bodies of the state and its
political subdivisions, all insurance companies, trust companies, banking associations,
investment companies, executors, administrators, trustees and other fiduciaries may properly
and legally invest funds, including capital in their control or belonging to them; it being the
purpose of this section to authorize the investment in such bonds of all sinking, insurance,
retirement, compensation, pension and trust funds, whether owned or controlled by private
or public persons or officers; provided, however, that nothing contained in this section may
be construed as relieving any person, firm, or corporation from any duty of exercising due
care in selecting securities for purchase or investment; and provide further, that in no event
shall assets of pension funds of public employees of the state of Minnesota or any of its
agencies, boards or subdivisions, whether publicly or privately administered, be invested
in bonds issued under the provisions of sections 136A.25 to 136A.42. Such bonds are hereby
constituted "authorized securities" within the meaning and for the purposes of Minnesota
Statutes 1969, section 50.14. deleted text beginSuchdeleted text endnew text begin Thenew text end bonds are hereby made securities deleted text beginwhichdeleted text endnew text begin thatnew text end may
properly and legally be deposited with and received by any state or municipal officer or any
agency or political subdivision of the state for any purpose for which the deposit of bonds
or obligations of the state now or may hereafter be authorized by law.

Sec. 22.

Minnesota Statutes 2020, section 136A.41, is amended to read:


136A.41 CONFLICT OF INTEREST.

Notwithstanding any other law to the contrary it shall not be or constitute a conflict of
interest for a trustee, director, officer or employee of any participating institution deleted text beginof higher
education
deleted text end, financial institution, investment banking firm, brokerage firm, commercial bank
or trust company, architecture firm, insurance company, construction company, or any other
firm, person or corporation to serve as a member of the authority, provided such trustee,
director, officer or employee shall abstain from deliberation, action and vote by the authority
in each instance where the business affiliation of any such trustee, director, officer or
employee is involved.

Sec. 23.

Minnesota Statutes 2020, section 136A.42, is amended to read:


136A.42 ANNUAL REPORT.

The authority shall keep an accurate account of all of its activities and all of its receipts
and expenditures deleted text beginand shall annually report to the officedeleted text end.new text begin Each year, the authority shall submit
to the Minnesota Historical Society and the Legislative Reference Library a report of the
authority's activities in the previous year, including all financial activities.
new text end

Sec. 24. new text beginREVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the law establishing and governing the Minnesota
Higher Education Facilities Authority, renamed the Minnesota Health and Education
Facilities Authority in this act, as Minnesota Statutes, chapter 16F, coded in Minnesota
Statutes 2020, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor
of statutes shall also duplicate any required definitions from Minnesota Statutes, chapter
136A, revise any statutory cross-references consistent with the recoding, and report the
history in Minnesota Statutes, chapter 16F.
new text end

Sec. 25. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2020, section 136A.29, subdivision 4, new text end new text begin is repealed.
new text end

ARTICLE 2

CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2020, section 3.732, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section and section 3.736 the terms defined
in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and
officers in the executive, legislative, and judicial branches of the state of Minnesota and
includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
Education, the deleted text beginHigherdeleted text endnew text begin Health andnew text end Education Facilities Authority, the Health Technology
Advisory Committee, the Armory Building Commission, the Zoological Board, the
Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society,
the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges
and Universities, state hospitals, and state penal institutions. It does not include a city, town,
county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or
employees of the state, members of the Minnesota National Guard, members of a bomb
disposal unit approved by the commissioner of public safety and employed by a municipality
defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an official
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section 3.736 only,
a guardian ad litem acting under court appointment, or members of the Minnesota National
Guard while engaged in training or duty under United States Code, title 10, or title 32,
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
of the state" includes a district public defender or assistant district public defender in the
Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
and any officer, agent, or employee of the state of Wisconsin performing work for the state
of Minnesota pursuant to a joint state initiative.

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2020, section 10A.01, subdivision 35, is amended to read:


Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative auditor,
director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
Department;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a state
board or commission that has either the power to adopt, amend, or repeal rules under chapter
14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend, or
repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of Administrative
Hearings or unemployment law judge in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the Department
of Public Safety;

(15) member or executive director of the deleted text beginHigherdeleted text end new text beginHealth and new text endEducation Facilities
Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State High
School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management organization
as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30;

(25) member or chief executive of the Minnesota Sports Facilities Authority established
in section 473J.07;

(26) district court judge, appeals court judge, or supreme court justice;

(27) county commissioner;

(28) member of the Greater Minnesota Regional Parks and Trails Commission; or

(29) member of the Destination Medical Center Corporation established in section
469.41.

Sec. 3.

Minnesota Statutes 2020, section 136F.67, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

A technical college or a community college must not
seek financing for child care facilities or parking facilities through the deleted text beginHigherdeleted text endnew text begin Health andnew text end
Education Facilities Authority, as provided in section 136A.28, subdivision 7, without the
explicit authorization of the board.

Sec. 4.

Minnesota Statutes 2020, section 354B.20, subdivision 7, is amended to read:


Subd. 7.

Employing unit.

"Employing unit," if the agency employs any persons covered
by the individual retirement account plan under section 354B.211, means:

(1) the board;

(2) the Minnesota Office of Higher Education; and

(3) the deleted text beginHigherdeleted text endnew text begin Health andnew text end Education Facilities Authority.

APPENDIX

Repealed Minnesota Statutes: 21-02073

136A.29 POWERS; DUTIES.

Subd. 4.

Mutual agreement; staff, equipment, office space.

By mutual agreement between the authority and the office, authority staff employees may also be members of the office staff. By mutual agreement, authority employees may be provided office space in the office of the Office of Higher Education, and said employees may make use of equipment, supplies, and office space, provided that the authority fully reimburses the office for salaries and for space, equipment, supplies, and materials used. In the absence of such mutual agreement between the authority and the office, the authority may maintain an office at such place or places as it may designate.