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HF 2269

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/22/2021 05:23pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/17/2021

Current Version - as introduced

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A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and other improvements of a capital nature with certain
conditions; authorizing the issuance of redevelopment appropriation bonds for
areas damaged by civil unrest; authorizing the issuance of housing infrastructure
bonds; modifying programs; modifying prior appropriations; appropriating money;
amending Minnesota Statutes 2020, section 462A.37, subdivisions 2, 5, by adding
a subdivision; Laws 2009, chapter 93, article 1, section 14, subdivision 3, as
amended; Laws 2020, Fifth Special Session chapter 3, article 1, sections 16,
subdivision 36; 20, subdivision 5; article 2, section 2, subdivision 4; proposing
coding for new law in Minnesota Statutes, chapter 16A.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginCAPITAL IMPROVEMENT APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the bond
proceeds fund, or another named fund, to the state agencies or officials indicated, to be
spent for public purposes. Appropriations of bond proceeds must be spent as authorized by
the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public
land and buildings and other public improvements of a capital nature, or as authorized by
the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless
otherwise specified, money appropriated in this act:
new text end

new text begin (1) may be used to pay state agency staff costs that are attributed directly to the capital
program or project in accordance with accounting policies adopted by the commissioner of
management and budget;
new text end

new text begin (2) is available until the project is completed or abandoned subject to Minnesota Statutes,
section 16A.642;
new text end

new text begin (3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
should not be used for projects that can be financed within a reasonable time frame under
Minnesota Statutes, section 16B.322 or 16C.144; and
new text end

new text begin (4) is available for a grant to a political subdivision after the commissioner of management
and budget determines that an amount sufficient to complete the project as described in this
act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
new text end

new text begin APPROPRIATIONS
new text end

Sec. 2. new text beginUNIVERSITY OF MINNESOTA
new text end

new text begin $
new text end
new text begin 56,916,000
new text end

new text begin To the Board of Regents of the University of
Minnesota, to be spent in accordance with
Minnesota Statutes, section 135A.046.
new text end

Sec. 3. new text beginMINNESOTA STATE COLLEGES AND
UNIVERSITIES
new text end

new text begin $
new text end
new text begin 62,422,000
new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities, to be spent in
accordance with Minnesota Statutes, section
135A.046.
new text end

Sec. 4. new text beginMINNESOTA STATE ACADEMIES
new text end

new text begin $
new text end
new text begin 1,224,000
new text end

new text begin To the commissioner of administration for
capital asset preservation improvements and
betterments on both campuses of the
Minnesota State Academies, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

Sec. 5. new text beginPERPICH CENTER FOR ARTS
EDUCATION
new text end

new text begin $
new text end
new text begin 777,000
new text end

new text begin To the commissioner of administration for
capital asset preservation improvements and
betterments at the Perpich Center for Arts
Education, to be spent in accordance with
Minnesota Statutes, section 16B.307.
new text end

Sec. 6. new text beginNATURAL RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 52,762,000
new text end

new text begin (a) To the commissioner of natural resources
for the purposes specified in this section.
new text end

new text begin (b) The appropriations in this section are
subject to the requirements of the natural
resources capital improvement program under
Minnesota Statutes, section 86A.12, unless
this section or the statutes referred to in this
section provide more specific standards,
criteria, or priorities for projects than
Minnesota Statutes, section 86A.12.
new text end

new text begin Subd. 2. new text end

new text begin Natural Resources Asset Preservation
new text end

new text begin 33,430,000
new text end

new text begin For the renovation of state-owned facilities
and recreational assets operated by the
commissioner of natural resources to be spent
in accordance with Minnesota Statutes, section
84.946. Notwithstanding Minnesota Statutes,
section 84.946, the commissioner may use this
appropriation to replace buildings if,
considering the embedded energy in the
building, that is the most energy-efficient and
carbon-reducing method of renovation.
new text end

new text begin Subd. 3. new text end

new text begin Acquisition and Betterment of
Buildings
new text end

new text begin 19,082,000
new text end

new text begin For acquisition, design, and construction to
improve existing facilities or to replace
existing facilities that no longer meet the
business needs of the department.
new text end

new text begin Subd. 4. new text end

new text begin Upper Sioux Agency State Park Bond
Defeasance
new text end

new text begin 250,000
new text end

new text begin From the general fund in fiscal year 2022 to
the commissioner of management and budget
to prepay and defease any outstanding state
general obligation bonds used for
improvements and betterments at Upper Sioux
Agency State Park, and other associated
financing costs. This amount may be
deposited, invested, and applied to accomplish
the purposes of this section as provided in
Minnesota Statutes, section 475.67,
subdivisions 5 to 10 and 13. Upon the
prepayment and defeasance of all associated
debt on the real property and improvements,
all conditions set forth in Minnesota Statutes,
section 16A.695, subdivision 3, shall be
deemed to have been satisfied and the real
property and improvements shall no longer
constitute state bond financed property under
Minnesota Statutes, section 16A.695.
new text end

Sec. 7. new text beginADMINISTRATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 46,133,000
new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Capital Asset Preservation and
Replacement Account
new text end

new text begin 3,133,000
new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 16A.632.
new text end

new text begin Subd. 3. new text end

new text begin Capitol Complex - Physical Security
Upgrades Phase II
new text end

new text begin 43,000,000
new text end

new text begin For the continuation of the design,
construction, and equipping required to
upgrade the physical security elements and
systems for the Capitol Mall and the buildings
listed in this subdivision, their attached tunnel
systems, their surrounding grounds, and
parking facilities as identified in the 2017
Minnesota State Capitol Complex Physical
Security Predesign completed by Miller
Dunwiddie and an updated assessment to be
completed in 2021. Work includes but is not
limited to the installation of bollards, blast
protection, infrastructure security screen walls,
door access controls, emergency call stations,
surveillance systems, security kiosks, locking
devices, and traffic and crowd control devices.
This appropriation includes money for work
associated with the following buildings:
Administration, Ag/Health Lab, Bureau of
Criminal Apprehension, Capitol, Centennial,
Governor's Residence, Judicial Center,
Minnesota History Center, Capitol Complex
Power Plant and Shops, Stassen, State Office,
and Veterans Service. $12,000,000 of this
appropriation is from the general fund in fiscal
year 2022 to be used at the Andersen,
Freeman, Minnesota Senate, Retirement
Systems, and Transportation buildings for the
purposes described in this subdivision.
new text end

Sec. 8. new text beginTRANSPORTATION
new text end

new text begin $
new text end
new text begin 10,000,000
new text end

new text begin To the commissioner of transportation for
capital improvements and betterments for the
second daily Amtrak train between St. Paul,
Milwaukee, and Chicago project.
Notwithstanding any law to the contrary, a
portion or phase of this intercity passenger rail
project may be accomplished with one or more
state appropriations and an intercity passenger
rail project need not be completed with any
one appropriation. Capital improvements and
betterments include project administration,
design, engineering, acquisition of land and
right-of-way, and construction.
new text end

Sec. 9. new text beginHUMAN SERVICES
new text end

new text begin $
new text end
new text begin 4,213,000
new text end

new text begin To the commissioner of administration for
asset preservation improvements and
betterments of a capital nature at Department
of Human Services facilities statewide, to be
spent in accordance with Minnesota Statutes,
section 16B.307.
new text end

Sec. 10. new text beginVETERANS AFFAIRS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 6,367,000
new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

new text begin 1,867,000
new text end

new text begin For asset preservation improvements and
betterments of a capital nature at the veterans
homes in Minneapolis, Hastings, Fergus Falls,
Silver Bay, and Luverne, and the Little Falls
Cemetery, to be spent in accordance with
Minnesota Statutes, section 16B.307.
new text end

new text begin Subd. 3. new text end

new text begin New State Veterans Cemetery
new text end

new text begin 4,500,000
new text end

new text begin To design, construct, furnish, and equip a new
State Veterans Cemetery in Redwood County.
new text end

Sec. 11. new text beginCORRECTIONS
new text end

new text begin $
new text end
new text begin 9,730,000
new text end

new text begin To the commissioner of administration for
asset preservation improvements and
betterments of a capital nature at Minnesota
correctional facilities statewide, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

Sec. 12. new text beginMINNESOTA HISTORICAL
SOCIETY
new text end

new text begin $
new text end
new text begin 1,466,000
new text end

new text begin To the Minnesota Historical Society for capital
improvements and betterments at state historic
sites, buildings, landscaping at historic
buildings, exhibits, markers, and monuments,
to be spent in accordance with Minnesota
Statutes, section 16B.307. The society shall
determine project priorities as appropriate
based on need.
new text end

Sec. 13. new text beginBOND SALE EXPENSES
new text end

new text begin $
new text end
new text begin 240,000
new text end

new text begin To the commissioner of management and
budget from the bond proceeds fund for bond
sale expenses under Minnesota Statutes,
section 16A.641, subdivision 8.
new text end

Sec. 14. new text beginBOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this act from the bond proceeds fund, the
commissioner of management and budget shall sell and issue bonds of the state in an amount
up to $240,000,000 in the manner, upon the terms, and with the effect prescribed by
Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article
XI, sections 4 to 7.
new text end

Sec. 15. new text beginBOND SALE SCHEDULE.
new text end

new text begin The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2023, no more than
$1,263,777,000 will need to be transferred from the general fund to the state bond fund to
pay principal and interest due and to become due on outstanding state general obligation
bonds. During the biennium, before each sale of state general obligation bonds, the
commissioner of management and budget shall calculate the amount of debt service payments
needed on bonds previously issued and shall estimate the amount of debt service payments
that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
amount of bonds scheduled to be sold so as to remain within the limit set by this section.
The amount needed to make the debt service payments is appropriated from the general
fund as provided in Minnesota Statutes, section 16A.641.
new text end

Sec. 16. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 2

APPROPRIATION AND HOUSING INFRASTRUCTURE BONDS

Section 1. new text beginPURPOSE.
new text end

new text begin The financing provided by Minnesota Statutes, section 16A.962, is for the public purpose
of redeveloping the areas in Minneapolis and St. Paul damaged in May and June of 2020,
by civil unrest which led to severe damage or destruction to small businesses, private
property, and public property in Minneapolis and St. Paul. The public purpose of the
redevelopment is to create or retain jobs, preserve the tax base and support enterprise
development and wealth creation for persons adversely affected by long-standing structural
racial discrimination and poverty and prevent displacement of small businesses owned by
people of color and indigenous people.
new text end

Sec. 2.

new text begin [16A.962] REDEVELOPMENT APPROPRIATION BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of
the state payable during a biennium from one or more of the following sources:
new text end

new text begin (1) money appropriated by law from the general fund in any biennium for debt service
due with respect to obligations described in subdivision 2, paragraph (a);
new text end

new text begin (2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);
new text end

new text begin (3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (d); and
new text end

new text begin (4) investment earnings on amounts in clauses (1) to (3).
new text end

new text begin (c) "City" means Minneapolis or St. Paul, or an agency of Minneapolis or St. Paul.
new text end

new text begin (d) "Debt service" means the amount payable in any biennium of principal, premium,
if any, and interest on appropriation bonds, and the fees, charges, and expenses related to
the bonds.
new text end

new text begin (e) "Eligible area" means an area in Minneapolis or St. Paul adversely affected by civil
unrest during the events leading up to and surrounding the peacetime emergency declared
in Emergency Executive Order 20-64.
new text end

new text begin (f) "Redevelopment" may include the acquisition of real property; site preparation;
predesign, design, engineering, repair, or renovation of facilities damaged during the civil
unrest and construction of buildings, infrastructure, and related site amenities; landscaping;
street-scaping; land-banking for future development or redevelopment; or financing any of
these activities taken on by a private party pursuant to an agreement with the city.
Redevelopment does not include project costs eligible for compensation or assistance
available through insurance policies or from other organizations or government agencies.
new text end

new text begin Subd. 2. new text end

new text begin Authorization to issue appropriation bonds. new text end

new text begin (a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law, including for the purposes of capitalizing
an account in the city of Minneapolis' commercial property development fund and an account
in the St. Paul Housing and Redevelopment Authority's funds to pay for redevelopment in
the eligible areas. Appropriation bonds may be sold and issued in amounts that, in the
opinion of the commissioner, are necessary to provide sufficient money to the commissioner
of employment and economic development under subdivision 7, not to exceed $150,000,000
net of costs of issuance, for the purposes as provided under this subdivision; to pay debt
service including capitalized interest, costs of issuance, and costs of credit enhancement;
or to make payments under other agreements entered into under paragraph (d).
new text end

new text begin (b) Proceeds of the appropriation bonds must be credited to a special appropriation
redevelopment bond proceeds fund in the state treasury. All income from investment of the
bond proceeds is appropriated to the commissioner for the payment of principal and interest
on the appropriation bonds.
new text end

new text begin (c) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 21 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest from the date of issuance, and
may be includable in or excludable from the gross income of the owners for federal income
tax purposes.
new text end

new text begin (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time
thereafter so long as the appropriation bonds are outstanding, the commissioner may enter
into agreements and ancillary arrangements relating to the appropriation bonds, including
but not limited to trust indentures, grant agreements, lease or use agreements, operating
agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
letter of credit agreements, insurance policies, guaranty agreements, reimbursement
agreements, indexing agreements, or interest exchange agreements. Any payments made
or received according to the agreement or ancillary arrangement shall be made from or
deposited as provided in the agreement or ancillary arrangement. The determination of the
commissioner, included in an interest exchange agreement, that the agreement relates to an
appropriation bond, shall be conclusive.
new text end

new text begin (e) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with or facilitate the issuance of
appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized by
the order or resolution.
new text end

new text begin (f) The appropriation bonds are not subject to chapter 16C.
new text end

new text begin Subd. 3. new text end

new text begin Form; procedure. new text end

new text begin (a) Appropriation bonds may be issued in the form of bonds,
notes, or other similar instruments in the manner provided in section 16A.672. In the event
that any provision of section 16A.672 conflicts with this section, this section shall control.
new text end

new text begin (b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 6.
new text end

new text begin (c) Appropriation bonds may be sold at either public or private sale upon such terms as
the commissioner shall determine are not inconsistent with this section and may be sold at
any price or percentage of par value. Any bid received may be rejected.
new text end

new text begin (d) Appropriation bonds must bear interest at a fixed or variable rate.
new text end

new text begin (e) Notwithstanding any other law, appropriation bonds issued under this section shall
be fully negotiable.
new text end

new text begin Subd. 4. new text end

new text begin Refunding bonds. new text end

new text begin The commissioner may issue appropriation bonds for the
purpose of refunding any appropriation bonds issued under subdivision 2 then outstanding,
including the payment of any redemption premiums on the bonds, any interest accrued or
to accrue to the redemption date, and costs related to the issuance and sale of the refunding
bonds. The proceeds of any refunding bonds may, at the discretion of the commissioner,
be applied to the purchase or payment at maturity of the appropriation bonds to be refunded,
to the redemption of the outstanding appropriation bonds on any redemption date, or to pay
interest on the refunding bonds and may, pending application, be placed in escrow to be
applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds,
pending such use, may be invested and reinvested in obligations that are authorized
investments under section 11A.24. The income earned or realized on the investment may
also be applied to the payment of the appropriation bonds to be refunded or interest or
premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds.
After the terms of the escrow have been fully satisfied, any balance of the proceeds and any
investment income may be returned to the general fund or, if applicable, the special
appropriation redevelopment bond proceeds fund for use in any lawful manner. All refunding
bonds issued under this subdivision must be prepared, executed, delivered, and secured by
appropriations in the same manner as the appropriation bonds to be refunded.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation bonds as legal investments. new text end

new text begin Any of the following entities may
legally invest any sinking funds, money, or other funds belonging to them or under their
control in any appropriation bonds issued under this section:
new text end

new text begin (1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;
new text end

new text begin (2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and
new text end

new text begin (3) personal representatives, guardians, trustees, and other fiduciaries.
new text end

new text begin Subd. 6. new text end

new text begin No full faith and credit; state not required to make appropriations. new text end

new text begin The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation of proceeds. new text end

new text begin The proceeds of appropriation bonds issued under
subdivision 2, paragraph (a), and interest credited to the special appropriation redevelopment
bond proceeds fund are appropriated as follows:
new text end

new text begin (1) to the commissioner of employment and economic development for a grant of
$100,000,000 to the city of Minneapolis and a grant of $50,000,000 to the St. Paul Housing
and Redevelopment Authority, and as further specified in subdivision 2, paragraph (a); and
new text end

new text begin (2) to the commissioner of management and budget for debt service on the bonds
including capitalized interest, nonsalary costs of issuance of the bonds, costs of credit
enhancement of the bonds, and payments under any agreements entered into under
subdivision 2, paragraph (d), as permitted by state and federal law.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation for debt service and other purposes. new text end

new text begin An amount needed to
pay principal and interest on appropriation bonds issued under subdivision 2, paragraph (a),
is appropriated each fiscal year from the general fund to the commissioner, subject to repeal,
unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6,
for deposit into the bond payments account established for such purpose in the special
appropriation redevelopment bond proceeds fund. The appropriation is available beginning
in fiscal year 2022 and remains available through fiscal year 2043.
new text end

new text begin Subd. 9. new text end

new text begin Waiver of immunity. new text end

new text begin The waiver of immunity by the state provided for by
section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
contracts to which the commissioner is a party.
new text end

new text begin Subd. 10. new text end

new text begin Grant requirements. new text end

new text begin In addition to any other terms in a grant agreement with
the commissioner of employment and economic development, a grant of special appropriation
redevelopment bonds proceeds must:
new text end

new text begin (1) require the city to segregate the grant money in a separate account;
new text end

new text begin (2) in the event that projects funded through appropriation bonds issued under this section
materially change in a manner that a city determines the money must be repaid, or in the
event that project money is repaid to a city, require the city to deposit any returned money
in a segregated account in the city of Minneapolis' commercial property development fund
or a segregated account in the St. Paul Housing and Redevelopment Authority's funds, to
be reused for redevelopment in the eligible areas;
new text end

new text begin (3) require each grant recipient in subdivision 7 to solicit community input on funding
needs for the purposes identified in this section, to prioritize businesses owned or operated
by a minority person as defined in section 116M.14, and to prioritize the retention and
rebuilding of impacted businesses and infrastructure in the eligible area; and
new text end

new text begin (4) require a biannual report to the commissioner of employment and economic
development from each grant recipient in subdivision 7 on the expenditures made from the
accounts funded with a grant made under this section in the form that the commissioner
prescribes and include any documentation of and supporting information regarding the
expenditures that the commissioner prescribes.
new text end

new text begin Subd. 11. new text end

new text begin Audit. new text end

new text begin The commissioner of employment and economic development must
review the report of expenditures made by the cities.
new text end

new text begin Subd. 12. new text end

new text begin Prevailing wage requirement. new text end

new text begin During the construction, installation,
remodeling, and repair of any project funded by bonds sold under this section, laborers and
mechanics at the site must be paid the prevailing wage rate as defined in section 177.42,
subdivision 6, and the project is subject to the requirements of sections 177.30 and 177.41
to 177.44.
new text end

Sec. 3.

Minnesota Statutes 2020, section 462A.37, subdivision 2, is amended to read:


Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on
terms and conditions the agency deems appropriate, made for one or more of the following
purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;

(6) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in part,
outstanding bonds previously issued by the agency or another government unit to finance
or refinance such costs; deleted text beginand
deleted text end

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housingdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (8) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of multifamily rental housing for households with incomes at or below 50 percent of the
area median income. Among comparable proposals, the agency shall give priority to requests
for projects that serve households at the lowest incomes.
new text end

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:

(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
seniors;

(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;

(4) provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and

(5) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

To the extent practicable, the agency shall balance the loans made between projects in the
metropolitan area and projects outside the metropolitan area. Of the loans made to projects
outside the metropolitan area, the agency shall, to the extent practicable, balance the loans
made between projects in counties or cities with a population of 20,000 or less, as established
by the most recent decennial census, and projects in counties or cities with populations in
excess of 20,000.

Sec. 4.

Minnesota Statutes 2020, section 462A.37, is amended by adding a subdivision to
read:


new text begin Subd. 2h. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2g, the agency may issue up to $100,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end

Sec. 5.

Minnesota Statutes 2020, section 462A.37, subdivision 5, is amended to read:


Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2d remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2e remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2f remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2g remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

new text begin (i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2h remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.
new text end

deleted text begin (i)deleted text endnew text begin (j)new text end The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 6. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 3

MISCELLANEOUS

Section 1.

Laws 2009, chapter 93, article 1, section 14, subdivision 3, as amended by Laws
2011, First Special Session chapter 12, section 37, and Laws 2018, chapter 214, article 2,
section 23, is amended to read:


Subd. 3.

Veterans Cemeteries

1,500,000

Of this amount, up to $500,000 is to acquire
land located in southeastern, southwestern,
and northeastern Minnesota for publicly
owned veterans cemeteries, to be operated by
the commissioner of veterans affairs. The
commissioner also must seek donations of
land for the cemeteries. The balance of the
appropriation is to predesign deleted text beginanddeleted text endnew text begin,new text end designnew text begin,
construct, and equip
new text end the cemeteries. Federal
reimbursement of designnew text begin, construction, and
equipping
new text end costs for each cemetery must be
deposited in the state treasury and is
appropriated to the commissioner of veterans
affairs to designnew text begin, construct, and equipnew text end the
remaining cemeteries. Following completion
deleted text begin of designdeleted text end of the legislatively authorized
Minnesota state veterans cemeteries in
Redwood, St. Louis, and Fillmore Counties,
final federal reimbursement of predesign deleted text beginanddeleted text endnew text begin,new text end
designnew text begin, construction, and equippingnew text end costs is
appropriated to the commissioner for asset
preservation of veterans homes statewide, to
be spent in accordance with Minnesota
Statutes, section 16B.307. Federal
reimbursement may be sought for each
cemetery and must be spent to acquire land
for, to predesign deleted text beginanddeleted text endnew text begin,new text end designnew text begin, construct, and
equip
new text end additional cemeteries, or for asset
preservation as provided in this subdivision.
Notwithstanding Minnesota Statutes, section
16A.642, the bond sale authorization and
appropriation of bond proceeds for this project
are available until December 31, deleted text begin2022deleted text endnew text begin 2024new text end.

Sec. 2.

Laws 2020, Fifth Special Session chapter 3, article 1, section 16, subdivision 36,
is amended to read:


Subd. 36.

Olmsted County; Trunk Highway 14
and County Road 104 Interchange Construction

6,000,000

Fornew text begin a grant to Olmsted County for the county's
share of
new text end general obligation bond eligible
portions of a project tonew text begin conduct environmental
analysis, and to
new text end predesign, design,new text begin andnew text end
engineerdeleted text begin, construct, furnish, and equipdeleted text end an
interchange at marked Trunk Highway 14 and
County Road 104, including a flyover at 7th
Street NW, in deleted text beginOlmsteaddeleted text endnew text begin Olmstednew text end County, and
associated infrastructure and road work to
accommodate the interchange.new text begin Any amount
remaining after substantial completion of
environmental analysis, predesign, design, and
engineering work may be applied to the
county's share to acquire right-of-way for, and
to construct, furnish, and equip, this
interchange and associated infrastructure and
road work to accommodate the interchange.
new text end

Sec. 3.

Laws 2020, Fifth Special Session chapter 3, article 1, section 20, subdivision 5, is
amended to read:


Subd. 5.

Minnesota Correctional Facility - St.
Cloud

800,000

To design, renovate, construct, equip, and
install a new fire suppression system in Living
Units deleted text beginA, B, and Cdeleted text endnew text begin D and Enew text end at the Minnesota
Correctional Facility - St. Cloud. This
installation includes but is not limited to cells,
common areas, and control areas and must
comply with all applicable codes.

Sec. 4.

Laws 2020, Fifth Special Session chapter 3, article 2, section 2, subdivision 4, is
amended to read:


Subd. 4.

Flood Mitigation

23,000,000

From the bond proceeds account in the trunk
highway fund fornew text begin environmental analysis,
predesign, design, engineering, and
new text end
reconstruction of trunk highways that
experience frequent flooding in Sibley County
and Le Sueur County, to modify the elevation
of the roadways and reduce closures due to
river flooding, for portions of the projects that
are eligible for trunk highway bond proceeds.

Sec. 5. new text beginSTATE PARKING ACCOUNT.
new text end

new text begin Notwithstanding Laws 2013, chapter 136, section 3, subdivision 5, and Minnesota
Statutes, section 16A.643, for fiscal year 2022, the state parking account is not required to
make the transfer to the state bond fund mandated by Laws 2013, chapter 136, section 3,
subdivision 5. The application of this section shall not otherwise affect the schedule of
amounts assessed under Minnesota Statutes, section 16A.643, for the related capital project
for the remaining life of the bonds.
new text end

Sec. 6. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end