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SF 3665

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/05/2020 09:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to capital investment; authorizing the use of general fund appropriations
that pay debt service on University of Minnesota debt for the biomedical research
facilities to also be used to pay for debt service on bonds issued for the clinical
research facility; appropriating money; amending Minnesota Statutes 2018, sections
137.61; 137.62, subdivision 2, by adding a subdivision; 137.63; 137.64.

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

Section 1.

Minnesota Statutes 2018, section 137.61, is amended to read:


137.61 PURPOSE.

Sections 137.61 to 137.65 provide for a biomedical science research funding program
to further the investment in biomedical science research facilities in Minnesota to benefit
the state's economy, advance the biomedical technology industry, benefit human health,
and facilitate research collaboration between the University of Minnesota and other private
and public institutions in this state.new text begin Sections 137.61 to 137.65 also provide funding for
design, land acquisition, site preparation, and preconstruction services for the new clinical
research facility on the University of Minnesota's Twin Cities campus.
new text end

Sec. 2.

Minnesota Statutes 2018, section 137.62, subdivision 2, is amended to read:


Subd. 2.

Biomedical science research facility.

"Biomedical science research facility"
means a facility located on the campus of the University of Minnesota to be used as a
research facility and laboratory for biomedical science and biomedical technology. A hospital
licensed under sections 144.50 to 144.56 is not a biomedical science research facility.new text begin
Biomedical science research facility includes the clinical research facility defined in this
section.
new text end

Sec. 3.

Minnesota Statutes 2018, section 137.62, is amended by adding a subdivision to
read:


new text begin Subd. 3a. new text end

new text begin Clinical research facility. new text end

new text begin "Clinical research facility" means a facility located
on the Twin Cities campus of the University of Minnesota to connect a broad array of clinical
research units and activities from across the university, providing a consolidated home for
the Clinical Translational Science Institute and related programs that support education,
research, clinical training, and patient care.
new text end

Sec. 4.

Minnesota Statutes 2018, section 137.63, is amended to read:


137.63 BIOMEDICAL SCIENCE RESEARCH FACILITIES FUNDING
PROGRAM.

Subdivision 1.

Program established.

A biomedical science research facilities funding
program is established to provide appropriations to the Board of Regents of the University
of Minnesota for up to 75 percent of the project costs for each of four projects approved by
the Board of Regents under section 137.64new text begin, other than the clinical research facilitynew text end.new text begin
Appropriations to the Board of Regents for the clinical research facility are for 100 percent
of the project costs for design, land acquisition, site preparation, and preconstruction services.
new text end

Subd. 2.

Project requirements.

The Board of Regents of the University of Minnesota,
either acting on its own or in collaboration with another private or public entity, must pay
at least 25 percent of the project costs for each of four projectsnew text begin, other than the clinical
research facility
new text end. The board must not use tuition revenue to pay for the university's share
of the costs for the projects approved under section 137.64.

Sec. 5.

Minnesota Statutes 2018, section 137.64, is amended to read:


137.64 CONDITIONS FOR PAYMENTS TO UNIVERSITY.

Subdivision 1.

Certifications.

Before the commissioner may make any payments
authorized in this section to the Board of Regents for a biomedical science research facility
project, the commissioner must certify that the board has, by board resolution, approved
the maximum project cost for the project and complied with the requirements of section
137.63deleted text begin, subdivision 2deleted text end. For each project approved by the board, the board must certify to the
commissioner the amount of the annual payments of principal and interest required to service
each series of bonds issued by the University of Minnesota for the project, and the actual
amount of the state's annual payment to the University of Minnesota under subdivision 2.
The annual payment must not exceed the amount required to pay debt service on the bonds
issued to finance 75 percent of the project costsnew text begin of biomedical science research facilities
authorized before 2019. The annual payment may additionally be for the amount required
to pay debt service on the bonds issued to finance 100 percent of the costs of the clinical
research facility
new text end.

Subd. 2.

Payments.

On July 15 of each year after the certification under subdivision 1,
but no earlier than July 15, 2009, and for so long thereafter as any bonds issued by the board
for deleted text beginthe construction ofdeleted text end a projectnew text begin, or any refunding bonds issued under subdivision 7,new text end are
outstanding, the state must transfer to the board annual payments as certified under
subdivision 1, up to the maximum amounts in the appropriation schedule under subdivision
3. Payments under this section are to reimburse the Board of Regents for the state's share
of the project costs for the biomedical science research facility projects, provided that the
principal amount of bonds issued by the University of Minnesota to pay the state's share of
the costs must not exceed $219,000,000.

Subd. 3.

Appropriations.

Annual appropriations are made from the general fund to the
commissioner of management and budget for transfer to the Board of Regents, as follows:

(1) up to $850,000 is appropriated in fiscal year 2010;

(2) up to $3,650,000 is appropriated in fiscal year 2011;

(3) up to $7,825,000 is appropriated in fiscal year 2012;

(4) up to $12,100,000 is appropriated in fiscal year 2013;

(5) up to $14,825,000 is appropriated in fiscal year 2014; deleted text beginand
deleted text end

(6) up to $15,550,000 is appropriated in fiscal year 2015 and each year thereafterdeleted text begin, up to
25 years following the certification of the last project by the commissioner.
deleted text end new text beginthrough fiscal
year 2020; and
new text end

new text begin (7) up to $13,930,000 is appropriated in fiscal year 2021 and each year thereafter through
fiscal year 2039.
new text end

Subd. 4.

Report to legislature.

The Board of Regents must report to the committees of
the legislature with responsibility for capital investment by January 15 of each even-numbered
year on the biomedical science research facility projects authorized under this section. The
report must at a minimum include for each project, the total cost, the number of researchers,
research grants, and the amount of debt issued by the board.

Subd. 5.

Reinvestment.

The Board of Regents must, to the extent permitted under federal
law and University of Minnesota policies, place a priority on reducing the state's share of
project costs by dedicating a share of the proceeds from any commercialization or licensing
revenues attributable to research conducted in the biomedical science facilities to reducing
the appropriations needed under subdivision 3.

Subd. 6.

Services to individuals and firms.

Consistent with its mission and governing
policies and the requirements for tax-exempt bonds, the university shall make available
laboratory and other services on a fee-for-service basis to individuals and firms in the
bioscience industry in Minnesota. The university will not assert patent rights when providing
services that do not involve its innovative intellectual contributions.

new text begin Subd. 7. new text end

new text begin Refunding of bonds; allocation of savings realized. new text end

new text begin (a) The board may issue
bonds in one or more series to refund bonds that were issued for a project before January
1, 2019, if refunding is determined by the board to be in the best interest of the university.
The principal amount of bonds issued in each refunding must not exceed the amount
necessary to defease the associated bonds outstanding immediately prior to refunding. The
amount of the state's annual payment to the university required for the debt service on the
refunded bonds, or original bonds if not yet refunded, or a combination of the two, shall be
up to the maximum annual appropriation under subdivision 3 for all series.
new text end

new text begin (b) The amount of the annual appropriation under subdivision 3 that is not needed to
pay the annual debt service under paragraph (a) is appropriated to the Board of Regents of
the University of Minnesota to pay the annual debt service amount on bonds issued by the
university to pay the costs of design, land acquisition, site preparation, and preconstruction
services of the clinical research facility.
new text end

new text begin (c) In any year that the state general fund appropriation authorized in this section exceeds
the amount needed to pay debt service on bonds issued by the university for purposes
specified in sections 137.61 to 137.65, the excess amount is canceled to the state general
fund.
new text end