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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                              CHAPTER 2-H.F.No. 1 
                  An act relating to capital improvements; authorizing 
                  spending to acquire and better public land and 
                  buildings and other public improvements of a capital 
                  nature with certain conditions; authorizing sale of 
                  state bonds; requiring periodic reports on the status 
                  of authorized and outstanding state bonds; reducing 
                  1995 appropriations; appropriating money; amending 
                  Minnesota Statutes 1994, sections 16A.672, by adding 
                  subdivisions; 16A.695, subdivisions 1, 2, 3, and by 
                  adding a subdivision; 16B.24, by adding a subdivision; 
                  16B.335, subdivisions 1, 2, and 5; 124.431, 
                  subdivisions 2, 5, 6, 7, and 10; 124.494, subdivisions 
                  2, 3, and 4; 136.62, subdivision 9, and by adding a 
                  subdivision; 136A.28, subdivision 7; and 446A.12, 
                  subdivision 1; Laws 1994, chapter 632, article 3, 
                  section 12; Laws 1994, chapter 643, sections 2, 
                  subdivision 15; 10, subdivision 10; 11, subdivisions 8 
                  and 13; 19, subdivision 8; 21, subdivision 4; 23, 
                  subdivisions 7 and 28; and 26, subdivisions 3 and 4; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 16A; repealing Laws 1991, chapter 265, article 
                  5, section 23, as amended. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                              CAPITAL IMPROVEMENTS
        Section 1.  [CAPITAL IMPROVEMENTS APPROPRIATIONS.] 
           The sums 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 to 
        acquire and to better public land and buildings and other public 
        improvements of a capital nature, as specified in this article. 
                                SUMMARY BY FUND
        ADMINISTRATION                                    $   2,065,000
        AGRICULTURE                                             103,000
        NATURAL RESOURCES                                     1,875,000
        POLLUTION CONTROL                                       750,000
        HUMAN SERVICES                                          148,000
        TRANSPORTATION                                        4,500,000
        EDUCATION                                            23,670,000
        MINNESOTA STATE COLLEGES 
        AND UNIVERSITIES                                        750,000
        PUBLIC SAFETY                                           410,000
        BOND SALE EXPENSES                                       36,000
        TOTAL                                             $  34,307,000
        Bond Proceeds Fund                                    5,630,000
        Maximum Effort School 
        Loan Fund                                            23,670,000
        Transportation Fund                                   4,500,000
        General Fund                                            332,000
        Minnesota Environment and
        Natural Resources Trust Fund                            175,000
                                                         APPROPRIATIONS
        Sec. 2.  ADMINISTRATION                         
        Subdivision 1.  To the commissioner of
        administration for the purposes specified
        in this section                                    $  2,065,000
        Subd. 2. Predesign Revenue      
        Department Facility                                     350,000
        As part of the predesign of this 
        facility, the commissioner of 
        administration shall assume that, to 
        the extent feasible and cost-effective, 
        any new jobs created in the debt 
        collections entity will be located in a 
        county in greater Minnesota that had a 
        population loss of five percent or more 
        between the 1980 and 1990 census. 
        As part of the predesign process, the 
        commissioner must consider options that 
        do not require constructing a new 
        building, including acquisition of the 
        building currently housing the revenue 
        department or another existing building.
        Subd. 3.  Renovate Capitol Building                   1,715,000
        This appropriation is to predesign, 
        design, renovate, and equip the Capitol 
        building. 
        $184,000 is from the general fund for 
        furnishings, fixtures, equipment, and 
        relocation expenses. 
        The unencumbered balance from the 
        appropriation in Laws 1990, chapter 
        610, article 1, section 18, item (f), 
        to plan to remodel the Capitol, may be 
        used to design and construct this 
        project. 
        Sec. 3.  AGRICULTURE                                    103,000
        This appropriation is to the 
        commissioner of agriculture for 
        completion of a seed potato inspection 
        facility in East Grand Forks. 
        The debt service cost on bonds sold to 
        provide the money appropriated in this 
        section must be paid from potato 
        inspection fees charged and collected 
        by the commissioner of agriculture 
        under Minnesota Statutes, sections 
        21.115 and 27.07.  Inspection fees 
        established by the commissioner of 
        agriculture must include appropriate 
        charges for this debt service, which 
        are appropriated to the commissioner 
        for payment to the commissioner of 
        finance under Minnesota Statutes, 
        section 16A.643. 
        Sec. 4.  OFFICE OF    
        ENVIRONMENTAL ASSISTANCE                                      
        The appropriation of $3,000,000 in Laws 
        1994, chapter 643, section 24, 
        subdivision 4, for a solid waste 
        capital assistance program is 
        transferred from the commissioner of 
        the pollution control agency to the 
        director of the office of environmental 
        assistance. 
        Sec. 5.  NATURAL RESOURCES                                   
        Subdivision 1.  To the commissioner of 
        natural resources for the purposes 
        specified in this section                             1,875,000
        Subd. 2.  Cannon Valley Trail Repair                    175,000
        This appropriation is available July 1, 
        1995, from the Minnesota environment 
        and natural resources trust fund for 
        repair of erosion damage to the Cannon 
        Valley Trail in the vicinity of 
        milepost 80. 
        This appropriation is available only 
        when the commissioner has determined 
        that the Cannon Valley Trail joint 
        powers board has committed sufficient 
        additional money to complete the 
        project. 
        Subd. 3.  Eagle Creek Acquisition                     1,500,000
        This appropriation is to protect the 
        state-designated trout stream named 
        Eagle Creek by acquiring portions of 
        the creek and adjacent springs, seeps, 
        wetlands, and other lands necessary to 
        protect the creek.  
        The lands and waters to be acquired are 
        located in Scott county in the city of 
        Savage and described as follows:  the 
        southernmost portion of the property 
        commonly known as the Marshall/McCune 
        property from the historic residence to 
        the southern boundary of the 
        Marshall/McCune property between 
        Highway 13 South and the east branch of 
        Eagle Creek; the approximately 15 acres 
        adjacent to and immediately surrounding 
        the headwaters of the east branch of 
        Eagle Creek on the northwest portion of 
        the property commonly known as the 
        Buesing property; the approximately 
        five acre Town and Country campground 
        at 12630 Boone Avenue adjacent to the 
        west branch of Eagle Creek; and the 
        property commonly known as the Strom 
        property through which Eagle Creek 
        traverses, which is located south of 
        Highway 101 between Steiner Industrial 
        Development and the Steiner Industrial 
        Development First Addition.  The land 
        to be acquired may include other 
        critical lands needed to protect the 
        creek, such as contiguous wetlands, 
        steep slopes, rare plant communities, 
        and habitat for endangered or 
        threatened species.  This appropriation 
        may not be used to acquire an option to 
        purchase land. 
        The acquired lands and waters must be 
        established by the commissioner of 
        natural resources as an aquatic 
        management area under Minnesota 
        Statutes, section 86A.05, subdivision 
        14.  
        The city of Savage shall prohibit 
        development of any lands and waters 
        within a corridor 200 feet wide along 
        each side of the creek, including both 
        the east branch and the west branch, 
        and shall limit the use of the land 
        within the corridor to uses that will 
        protect the natural environment of the 
        creek and enhance its value as a trout 
        stream.  Notwithstanding Minnesota 
        Statutes, section 18B.02, within the 
        watershed of Eagle Creek, except for 
        lands zoned agricultural, the city of 
        Savage shall impose restrictions on the 
        application of agricultural chemicals, 
        as defined in Minnesota Statutes, 
        section 18D.01, subdivision 3, that 
        would have an adverse impact on the 
        quality of water in the creek as a 
        habitat for trout. 
        The city of Savage and the commissioner 
        of natural resources shall enter into a 
        joint review process with respect to 
        the east branch of Eagle Creek to 
        evaluate strategies to protect the east 
        branch and to mitigate adverse impacts 
        to the creek associated with 
        development adjacent to the east 
        branch.  The city shall consult with 
        the commissioner as part of this joint 
        process and shall consider the 
        commissioner's comments, but the 
        commissioner shall not have permit or 
        approval authority not otherwise 
        provided by law with respect to any 
        proposed development adjacent to the 
        east branch. 
        Subd. 4.  Dam Safety                                    200,000
        This appropriation is for dam safety 
        projects under Minnesota Statutes, 
        section 103G.511. 
        Sec. 6.  POLLUTION CONTROL                              750,000
        AGENCY
        This appropriation is to the 
        commissioner of the pollution control 
        agency for combined sewer overflow 
        grants to the city of Red Wing under 
        Minnesota Statutes, section 116.162, 
        for projects to be begun in fiscal year 
        1996.  The total amount of grants under 
        this section must not exceed one-half 
        of the capital costs of the city of Red 
        Wing to abate combined sewer overflow. 
        Sec. 7.  HUMAN SERVICES                                 148,000
        This appropriation is from the general 
        fund to the commissioner of human 
        services to demolish building No. 30 at 
        the Moose Lake Regional Treatment 
        Center.  The commissioner shall seek 
        reimbursement through the federal 
        Health Care Finance Agency based on 
        Medicare principles of reimbursements.  
        Notwithstanding Laws 1995, chapter 226, 
        article 1, section 11, subdivision 4, 
        the appropriation of $80,000 in that 
        law for the same purpose is transferred 
        to the commissioner of human services 
        and added to this appropriation, and 
        the federal money received by the 
        commissioner of human services must be 
        retained by the commissioner of human 
        services, not transferred to the 
        commissioner of corrections. 
        Sec. 8.  TRANSPORTATION                               4,500,000
        This appropriation is from the 
        Minnesota state transportation fund for 
        grants to political subdivisions for 
        the construction and reconstruction of 
        key bridges on the state transportation 
        system. 
        Political subdivisions may use grants 
        made under this section for purposes of 
        construction and reconstruction of 
        bridges, including: 
        (1) matching federal-aid grants for the 
        construction or reconstruction of key 
        bridges; 
        (2) paying the costs of abandoning an 
        existing bridge that is deficient and 
        in need of replacement, but where no 
        replacement will be made; 
        (3) paying the costs of constructing a 
        road or street that would facilitate 
        the abandonment of an existing bridge 
        determined by the commissioner to be 
        deficient, if the commissioner 
        determines that construction of the 
        road or street is more cost efficient 
        than replacement of the existing 
        bridge; and 
        (4) paying the costs of preliminary 
        engineering and environmental studies 
        authorized under Minnesota Statutes, 
        section 174.50, subdivision 6a. 
        Sec. 9.  EDUCATION                                  
        Subdivision 1.                                       23,670,000
        To the commissioner of education to 
        make capital loans to school districts 
        for which loans are approved in this 
        section as provided in Minnesota 
        Statutes, sections 124.36 to 124.46.  
        This appropriation is from the maximum 
        effort school loan fund.  
        Subd. 2.  Loan Approval 
        The commissioner shall make capital 
        loans to independent school district 
        No. 36, Kelliher; independent school 
        district No. 362, Littlefork-Big Falls; 
        and independent school district No. 
        727, Big Lake.  Capital loans to these 
        districts are approved. 
        Notwithstanding provisions to the 
        contrary in Minnesota Statutes, section 
        124.431, subdivisions 1 and 11, the 
        proceeds of the capital loan to 
        independent school district No. 727, 
        Big Lake, may be used to pay the 
        district for costs associated with the 
        construction of a school facility, 
        whether or not construction of the 
        project has been entered into or 
        completed and without regard to the 
        requirement that the contract for 
        construction be entered into within 18 
        months after the capital loan is 
        granted. 
        Subd. 3.  Commissioner Review
        The commissioner of education shall 
        review the proposed plan and budget of 
        the projects approved in this section 
        and may reduce the amount of a loan to 
        ensure that a project will be 
        economical.  The commissioner may 
        recover the cost incurred by the 
        commissioner for any professional 
        services associated with the final 
        review by reducing the proceeds of the 
        loan paid to a district. 
        Sec. 10.  MINNESOTA  
        STATE COLLEGES AND UNIVERSITIES                         750,000
        This appropriation is to the board of 
        trustees of the Minnesota state 
        colleges and universities to acquire 
        land in the vicinity of Metropolitan 
        State University. 
        The state board for community colleges 
        or the board of trustees of the 
        Minnesota state colleges and 
        universities may acquire land in the 
        vicinity of Normandale Community 
        College for parking facilities. 
        During the biennium, Mankato State 
        University may spend up to $15,000 of 
        nonstate money for construction of a 
        storage building for its manufacturing 
        engineering technology department, to 
        be located on property owned by the 
        university. 
        Sec. 11.  PUBLIC SAFETY                                 410,000
        This appropriation is for a grant to 
        the city of Parkers Prairie to assist 
        with the design and construction of a 
        fire hall and city hall to replace 
        those damaged by a propane explosion in 
        April 1995. 
        Sec. 12.  BOND SALE EXPENSES                             36,000
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8. 
        Sec. 13.  BOND SALE SCHEDULE                                    
        The commissioner of finance shall 
        schedule the sale of state general 
        obligation bonds so that, during the 
        biennium ending June 30, 1997, no more 
        than $458,704,000 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 finance 
        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. 
           Sec. 14.  [BOND SALE AUTHORIZATION.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
        appropriated in this article from the bond proceeds fund, the 
        commissioner of finance, on request of the governor, shall sell 
        and issue bonds of the state in an amount up to $5,630,000 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. 
           Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
        appropriated in this article from the state transportation fund, 
        the commissioner of finance, on request of the governor, shall 
        sell and issue general obligation bonds of the state in an 
        amount up to $4,500,000 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.  The proceeds of the bonds, except accrued interest and 
        any premium received on the sale of the bonds, must be credited 
        to a bond proceeds account in the state transportation fund. 
           Subd. 3.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] To provide the 
        money appropriated by this article from the maximum effort 
        school loan fund, the commissioner of finance, on request of the 
        governor, shall sell and issue bonds of the state in an amount 
        up to $23,670,000 in the manner, on 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.  The proceeds of the bonds, except accrued interest and 
        any premium received on the sale of the bonds, must be credited 
        to a bond proceeds account in the maximum effort school loan 
        fund. 
           Sec. 15.  [BOND SALE AUTHORIZATIONS REDUCED.] 
           The bond sale authorizations in the following laws are 
        reduced by the amounts indicated. 
           (1)  Laws 1987, chapter 400, section 25, subdivision 1, is 
        reduced by $50,000. 
           (2) Laws 1987, chapter 400, section 25, subdivision 3, is 
        reduced by $10,000. 
           (3) Laws 1989, chapter 41, section 3, is reduced by $54,000.
           (4) Laws 1989, chapter 300, article 1, section 23, 
        subdivision 1, is reduced by $65,000. 
           (5) Laws 1990, chapter 610, article 1, section 30, 
        subdivision 1, is reduced by $580,000. 
           (6) Laws 1991, chapter 265, article 12, section 1, is 
        reduced by $6,610,000.  The approval of a capital loan to 
        independent school district No. 345, New London-Spicer, in Laws 
        1991, chapter 265, article 12, section 2, is rescinded. 
           (7) Laws 1992, chapter 558, section 28, subdivision 1, is 
        reduced by $5,000. 
           (8) Laws 1994, chapter 643, section 31, subdivision 1, is 
        reduced by $1,245,000. 
           Sec. 16.  [16A.642] [STATE BONDS:  REPORTS; CANCELLATIONS.] 
           Subdivision 1.  [REPORTS.] The commissioner of finance 
        shall report to the chairs of the senate committee on finance 
        and the house of representatives committees on ways and means 
        and on capital investment by February 1 of each even-numbered 
        year on the following: 
           (1) all state building projects for which bonds have been 
        authorized and issued by a law enacted more than seven years 
        before February 1 of that even-numbered year and of which 20 
        percent or less of a project's authorization has been encumbered 
        or otherwise obligated for the purpose stated in the law 
        authorizing the issue; and 
           (2) all state bonds authorized and issued for purposes 
        other than building projects reported under clause (1), by a law 
        enacted more than seven years before February 1 of that 
        even-numbered year, and the amount of any balance that is 
        unencumbered or otherwise not obligated for the purpose stated 
        in the law authorizing the issue. 
           The commissioner shall also report on bond authorizations 
        or bond proceed balances that may be canceled because projects 
        have been canceled, completed, or otherwise concluded, or 
        because the purposes for which the bonds were authorized or 
        issued have been canceled, completed, or otherwise concluded.  
        The bond authorizations or bond proceed balances that are 
        unencumbered or otherwise not obligated that are reported by the 
        commissioner under this subdivision are canceled, effective July 
        1 of the year of the report, unless specifically reauthorized by 
        act of the legislature. 
           Subd. 2.  [CANCELLATION.] If the commissioner determines 
        that the purposes for which general obligation bonds of the 
        state have been issued are accomplished or abandoned, after 
        consultation with the affected agencies, and there is a 
        remaining authorization for a specific project of $500 or less, 
        the commissioner may cancel the remaining authorization for that 
        project.  The commissioner must notify the chairs of the senate 
        finance committee and the house capital investment committee of 
        any bond authorizations canceled under this subdivision. 
           Sec. 17.  Minnesota Statutes 1994, section 16A.672, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [EXCHANGE LISTING.] The commissioner may provide 
        for listing of any bonds or certificates of indebtedness on an 
        exchange or similar arrangement to facilitate their sale and 
        exchange in the secondary market. 
           Sec. 18.  Minnesota Statutes 1994, section 16A.672, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [CONTINUING DISCLOSURE AGREEMENTS.] The 
        commissioner and any other officer of a state department or 
        state agency charged with the responsibility of issuing bonds 
        for or on behalf of the state department or agency, may enter 
        into written agreements or contracts relating to the continuing 
        disclosure of information necessary to comply with, or 
        facilitate the issuance of bonds in accordance with, federal 
        securities laws, rules, and regulations, including securities 
        and exchange commission rules and regulations, section 
        240.15c2-12.  An agreement may be in the form of covenants with 
        purchasers and holders of bonds set forth in the order or 
        resolution authorizing the issuance of the bonds, or a separate 
        document authorized by the order or resolution. 
           Sec. 19.  Minnesota Statutes 1994, section 16A.695, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section.  
           (b) "State bond financed property" means property acquired 
        or bettered in whole or in part with the proceeds of state 
        general obligation bonds authorized to be issued under article 
        XI, section 5, clause (a), of the Minnesota Constitution. 
           (c) "Public officer or agency" means a state officer or 
        agency, the University of Minnesota, the Minnesota historical 
        society, and any county, home rule charter or statutory city, 
        school district, special purpose district, or other public 
        entity, or any officer or employee thereof. 
           (d) "Fair market value" means, with respect to the sale of 
        state bond financed property, the price that would be paid by a 
        willing and qualified buyer to a willing and qualified seller as 
        determined by an appraisal of the property, or the price bid by 
        a purchaser under a public bid procedure after reasonable public 
        notice. 
           (e) "Outstanding state bonds" means the dollar amount 
        certified by the commissioner, upon the request of a public 
        officer or agency, to be the principal amount of state bonds, 
        including any refunding bonds, issued with respect to the state 
        bond financed property, less the principal amount of state bonds 
        paid or defeased before the date of the request. 
           Sec. 20.  Minnesota Statutes 1994, section 16A.695, 
        subdivision 2, is amended to read: 
           Subd. 2.  [LEASES AND MANAGEMENT CONTRACTS.] (a) A public 
        officer or agency that is authorized by law to lease or enter 
        into a management contract with respect to state bond financed 
        property shall comply with this subdivision. 
           (b) The lease or management contract may be entered into 
        for the express purpose of carrying out a governmental program 
        established or authorized by law and established by official 
        action of the contracting public officer or agency, in 
        accordance with orders of the commissioner intended to ensure 
        the legality and tax-exempt status of bonds issued to finance 
        the property, and with the approval of the commissioner.  A 
        lease or management contract, including any renewals that are 
        solely at the option of the lessee, must be for a term 
        substantially less than the useful life of the property, but may 
        allow renewal beyond that term upon a determination by the 
        lessor that the use continues to carry out the governmental 
        program.  A lease or management contract must be terminable by 
        the contracting public officer or agency if the other 
        contracting party defaults under the contract or if the 
        governmental program is terminated or changed, and must provide 
        for program oversight by the contracting public officer or 
        agency.  Money received by the public officer or agency under 
        the lease or management contract that is not needed to pay and 
        not authorized to be used to pay operating costs of the 
        property, or to pay the principal, interest, redemption 
        premiums, and other expenses when due on debt related to the 
        property other than state bonds, must be: 
           (1) paid to the commissioner in the same proportion as the 
        state bond financing is to the total public debt financing for 
        the property, excluding debt issued by a unit of government for 
        which it has no financial liability; 
           (2) deposited in the state bond fund,; and 
           (3) used to pay or redeem or defease bonds issued to 
        finance the property in accordance with the commissioner's order 
        authorizing their issuance;.  
           The money paid to the commissioner is appropriated for this 
        purpose. 
           (c) With the approval of the commissioner, a lease or 
        management contract between a city and a nonprofit corporation 
        under section 471.191, subdivision 1, need not require the 
        lessee to pay rentals sufficient to pay the principal, interest, 
        redemption premiums, and other expenses when due with respect to 
        state bonds issued to acquire and better the facilities. 
           Sec. 21.  Minnesota Statutes 1994, section 16A.695, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SALE OF PROPERTY.] A public officer or agency 
        shall not sell any state bond financed property unless the 
        public officer or agency determines by official action that the 
        property is no longer usable or needed by the public officer or 
        agency to carry out the governmental program for which it was 
        acquired or constructed, the sale is made as authorized by law, 
        the sale is made for fair market value, and the sale is approved 
        by the commissioner.  If any state bonds issued to purchase or 
        better the state bond financed property that is sold remain 
        outstanding on the date of sale, the net proceeds of sale must 
        be applied as follows: 
           (1) if the state bond financed property was acquired and 
        bettered solely with state bond proceeds, the net proceeds of 
        sale must be paid to the commissioner, deposited in the state 
        bond fund, and used to pay or redeem or defease the outstanding 
        state bonds in accordance with the commissioner's order 
        authorizing their issuance, and the proceeds are appropriated 
        for this purpose; or 
           (2) if the state bond financed property was acquired or 
        bettered partly with state bond proceeds and partly with other 
        money, the net proceeds of sale must first be used:  first, to 
        pay or redeem or defease the state bonds as provided in clause 
        (1), and to the state the amount of state bond proceeds used to 
        acquire or better the property; second, to pay in full any 
        outstanding public or private debt incurred to acquire or better 
        the property; and third, any excess over the amount needed 
        for that purpose those purposes must be divided in proportion to 
        the shares contributed to its the acquisition or betterment of 
        the property and paid to the interested public and private 
        entities, other than any private lender already paid in full, 
        and the proceeds are appropriated for this purpose. 
           When all of the net proceeds of sale have been applied as 
        provided in this subdivision, this section no longer applies to 
        the property. 
           Sec. 22.  Minnesota Statutes 1994, section 16A.695, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [INVOLUNTARY SALE OF PROPERTY.] Notwithstanding 
        subdivision 3, this subdivision applies to the sale of state 
        bond financed property by a lender that has provided money to 
        acquire or better the property.  Purchase by the lender in a 
        foreclosure sale, acceptance of a deed in lieu of foreclosure, 
        or enforcement of a security interest in personal property, by 
        the lender, is not a sale.  Following purchase by the lender, 
        the lender shall not operate the property in a manner 
        inconsistent with the governmental program established as 
        provided in subdivision 2, paragraph (b).  The lender shall 
        exercise its best efforts to sell the property to a third party 
        as soon as feasible following acquisition of marketable title to 
        the property by the lender.  A sale by the lender must be made 
        as authorized by law and must be made for fair market value.  
           Sec. 23.  Minnesota Statutes 1994, section 16B.24, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [SALE OF REAL PROPERTY.] By February 1 of each 
        year, the commissioner shall report to the chairs of the senate 
        committee on finance and the house of representatives committees 
        on ways and means and capital investment all sales or other 
        transfers of real property owned by the state that have taken 
        place in the preceding calendar year.  The report shall include 
        a description of the property, reason for the sale, the name of 
        the buyer, and the price for which the property was sold.  Sales 
        of easements need not be included.  This subdivision does not 
        apply to real property held by the department of natural 
        resources, the department of transportation, or the board of 
        water and soil resources, except for real property that has been 
        used for office space by any of those agencies.  This 
        subdivision does not apply to property owned by the board of 
        trustees of the Minnesota state colleges and universities or the 
        University of Minnesota.  
           Sec. 24.  Minnesota Statutes 1994, section 16B.335, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSTRUCTION AND MAJOR REMODELING.] The 
        commissioner, or any other recipient to whom an appropriation is 
        made to acquire or better public lands or buildings or other 
        public improvements of a capital nature, must not prepare final 
        plans and specifications for any construction, major remodeling, 
        or land acquisition in anticipation of which the appropriation 
        was made until the agency that will use the project has 
        presented the program plan and cost estimates for all elements 
        necessary to complete the project to the chair of the senate 
        finance committee and the chair of the house ways and means 
        committee and the chairs have made their recommendations, and 
        the chair of the house capital investment committee is 
        notified.  "Construction or major remodeling" means construction 
        of a new building or substantial alteration of the exterior 
        dimensions or interior configuration of an existing building.  
        The presentation must note any significant changes in the work 
        that will be done, or in its cost, since the appropriation for 
        the project was enacted.  The program plans and estimates must 
        be presented for review at least two weeks before a 
        recommendation is needed.  The recommendations are advisory 
        only.  Failure or refusal to make a recommendation is considered 
        a negative recommendation.  The chairs of the senate finance 
        committee, the house capital investment committee, and the house 
        ways and means committee must also be notified whenever there is 
        a substantial change in a construction or major remodeling 
        project, or in its cost. 
           Sec. 25.  Minnesota Statutes 1994, section 16B.335, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OTHER PROJECTS.] All other capital projects for 
        which a specific appropriation is made must not proceed until 
        the recipient undertaking the project has notified the chair of 
        the senate finance committee, the chair of the house capital 
        investment committee, and the chair of the house ways and means 
        committee that the work is ready to begin.  Notice is not 
        required for capital projects needed to comply with the 
        Americans with Disabilities Act or funded by an agency's 
        operating budget or by a capital asset preservation and 
        replacement account under section 16A.632, or a higher education 
        capital asset preservation and renewal account under section 
        135A.046. 
           Sec. 26.  Minnesota Statutes 1994, section 16B.335, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INFORMATION TECHNOLOGY.] Agency requests for 
        construction and remodeling funds shall include money for 
        cost-effective information technology investments that would 
        enable an agency to reduce its need for office space, provide 
        more of its services electronically, and decentralize its 
        operations.  The information policy office must review and 
        approve the information technology portion of construction and 
        major remodeling program plans before the plans are submitted to 
        the chairs of the senate finance committee and the house of 
        representatives ways and means committee for their 
        recommendations and the chair of the house of representatives 
        capital investment committee is notified as required by 
        subdivision 1. 
           Sec. 27.  Minnesota Statutes 1994, section 124.431, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
        school district or a joint powers district that intends to apply 
        for a capital loan must submit a proposal to the commissioner 
        for review and comment according to section 121.15 on or before 
        July 1 of an odd-numbered year.  The commissioner must prepare a 
        review and comment on the proposed facility, regardless of the 
        amount of the capital expenditure required to construct the 
        facility.  In addition to the information provided under section 
        121.15, subdivision 7, the commissioner shall consider the 
        following criteria in determining whether to make a positive 
        review and comment.  
           (a) To grant a positive review and comment the commissioner 
        must determine that all of the following conditions are met: 
           (1) the facilities are needed for pupils for whom no 
        adequate facilities exist or will exist; 
           (2) the district will serve, on average, at least 80 pupils 
        per grade or is eligible for sparsity revenue; 
           (3) no form of cooperation with another district would 
        provide the necessary facilities; 
           (4) the facilities are comparable in size and quality to 
        facilities recently constructed in other districts that have 
        similar enrollments; 
           (5) the facilities are comparable in size and quality to 
        facilities recently constructed in other districts that are 
        financed without a capital loan; 
           (6) the district is projected to maintain or increase its 
        average daily membership over the next five years or is eligible 
        for sparsity revenue; 
           (7) the current facility poses a threat to the life, 
        health, and safety of pupils, and cannot reasonably be brought 
        into compliance with fire, health, or life safety codes; 
           (8) the district has made a good faith effort, as evidenced 
        by its maintenance expenditures, to adequately maintain the 
        existing facility during the previous ten years and to comply 
        with fire, health, and life safety codes and state and federal 
        requirements for handicapped accessibility; 
           (9) the district has made a good faith effort to encourage 
        integration of social service programs within the new facility; 
        and 
           (10) evaluations by school boards of adjacent districts 
        have been received. 
           (b) The commissioner may grant a negative review and 
        comment if: 
           (1) the state demographer has examined the population of 
        the communities to be served by the facility and determined that 
        the communities have not grown during the previous five years; 
           (2) the state demographer determines that the economic and 
        population bases of the communities to be served by the facility 
        are not likely to grow or to remain at a level sufficient, 
        during the next ten years, to ensure use of the entire facility; 
           (3) the need for facilities could be met within the 
        district or adjacent districts at a comparable cost by leasing, 
        repairing, remodeling, or sharing existing facilities or by 
        using temporary facilities; 
           (4) the district plans do not include cooperation and 
        collaboration with health and human services agencies and other 
        political subdivisions; or 
           (5) if the application is for new construction, an existing 
        facility that would meet the district's needs could be purchased 
        at a comparable cost from any other source within the area. 
           Sec. 28.  Minnesota Statutes 1994, section 124.431, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 
        school board of a district desiring a capital loan shall adopt a 
        resolution stating the amount proposed to be borrowed, the 
        purpose for which the debt is to be incurred, and an estimate of 
        the dates when the facilities for which the loan is requested 
        will be contracted for and completed.  Applications for loans 
        must be accompanied by a copy of the adopted board resolution 
        and copies of the adjacent district evaluations.  The evaluation 
        shall be retained by the commissioner as part of a permanent 
        record of the district submitting the evaluation. 
           Applications must be in the form and accompanied by the 
        additional data required by the commissioner.  Applications must 
        be received by the commissioner by November September 1 of an 
        odd-numbered year.  A district must resubmit an application each 
        odd-numbered year.  Capital loan applications that do not 
        receive voter approval or are not approved in law cancel July 1 
        of the year following application.  When an application is 
        received, the commissioner shall obtain from the commissioner of 
        revenue the information in the revenue department's official 
        records that is required to be used in computing the debt limit 
        of the district under section 475.53, subdivision 4. 
           Sec. 29.  Minnesota Statutes 1994, section 124.431, 
        subdivision 6, is amended to read: 
           Subd. 6.  [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 
        January November 1 of each odd-numbered year, the state board 
        must review all applications for capital loans that have 
        received a positive review and comment.  When reviewing 
        applications, the state board shall consider whether the 
        criteria in subdivision 2 have been met.  The state board may 
        not approve an application if all of the required deadlines have 
        not been met.  The state board may either approve or reject an 
        application for a capital loan. 
           Sec. 30.  Minnesota Statutes 1994, section 124.431, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RECOMMENDATIONS OF THE COMMISSIONER.] The 
        commissioner shall examine and consider applications for capital 
        loans that have been approved by the state board of education, 
        and promptly notify any district rejected by the state board of 
        the state board's decision.  
           The commissioner shall report each capital loan that has 
        been approved by the state board and that has received voter 
        approval to the education committees of the legislature by 
        February January 1 of each even-numbered year.  The commissioner 
        must not report a capital loan that has not received voter 
        approval.  The commissioner shall also report on the money 
        remaining in the capital loan account and, if necessary, request 
        that another bond issue be authorized. 
           Sec. 31.  Minnesota Statutes 1994, section 124.431, 
        subdivision 10, is amended to read: 
           Subd. 10.  [DISTRICT REFERENDUM.] After receipt of the 
        review and comment on the project and before February January 1 
        of the even-numbered year, the question authorizing the 
        borrowing of money for the facilities must be submitted by the 
        school board to the voters of the district at a regular or 
        special election.  The question submitted must state the total 
        amount to be borrowed from all sources.  Approval of a majority 
        of those voting on the question is sufficient to authorize the 
        issuance of the obligations on public sale in accordance with 
        chapter 475.  The face of the ballot must include the following 
        statement:  "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 
        THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE.  
        THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 
        DEPENDENT ON AVAILABLE FUNDING."  The district shall mail to the 
        commissioner of education a certificate by the clerk showing the 
        vote at the election. 
           Sec. 32.  Minnesota Statutes 1994, section 124.494, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REVIEW BY COMMISSIONER.] (a) Any group of 
        districts that submits an application for a grant shall submit a 
        proposal to the commissioner for review and comment under 
        section 121.15, and the commissioner shall prepare a review and 
        comment on the proposed facility by July 1 of an odd-numbered 
        year, regardless of the amount of the capital expenditure 
        required to acquire, construct, remodel or improve the secondary 
        facility.  The commissioner must not approve an application for 
        an incentive grant for any secondary facility unless the 
        facility receives a favorable review and comment under section 
        121.15 and the following criteria are met: 
           (1) a minimum of two or more districts, with kindergarten 
        to grade 12 enrollments in each district of no more than 1,200 
        pupils, enter into a joint powers agreement; 
           (2) a joint powers board representing all participating 
        districts is established under section 471.59 to govern the 
        cooperative secondary facility; 
           (3) the planned secondary facility will result in the joint 
        powers district meeting the requirements of Minnesota Rules, 
        parts 3500.2010 and 3500.2110; 
           (4) at least 198 pupils would be served in grades 10 to 12, 
        264 pupils would be served in grades 9 to 12, or 396 pupils 
        would be served in grades 7 to 12; 
           (5) no more than one superintendent is employed by the 
        joint powers board as a result of the cooperative secondary 
        facility agreement; 
           (6) a statement of need is submitted, that may include 
        reasons why the current secondary facilities are inadequate, 
        unsafe or inaccessible to the handicapped; 
           (7) an educational plan is prepared, that includes input 
        from both community and professional staff; 
           (8) a combined seniority list for all participating 
        districts is developed by the joint powers board; 
           (9) an education program is developed that provides for 
        more learning opportunities and course offerings, including the 
        offering of advanced placement courses, for students than is 
        currently available in any single member district; 
           (10) a plan is developed for providing instruction of any 
        resident students in other districts when distance to the 
        secondary education facility makes attendance at the facility 
        unreasonably difficult or impractical; and 
           (11) the joint powers board established under clause (2) 
        discusses with technical colleges located in the area how 
        vocational education space in the cooperative secondary facility 
        could be jointly used for secondary and post-secondary purposes. 
           (b) To the extent possible, the joint powers board is 
        encouraged to provide for severance pay or for early retirement 
        incentives under section 125.611, for any teacher or 
        administrator, as defined under section 125.12, subdivision 1, 
        who is placed on unrequested leave as a result of the 
        cooperative secondary facility agreement. 
           (c) For the purpose of paragraph (a), clause (8), each 
        school district must be considered to have started school each 
        year on the same date. 
           (d) The districts may develop a plan that provides for the 
        location of social service, health, and other programs serving 
        pupils and community residents within the cooperative secondary 
        facility.  The commissioner shall consider this plan when 
        preparing a review and comment on the proposed facility. 
           (e) The districts shall schedule and conduct a meeting on 
        library services.  The school districts, in cooperation with the 
        regional public library system and its appropriate member 
        libraries, shall discuss the possibility of including jointly 
        operated library services at the cooperative secondary facility. 
           (f) The school board of a district that has reorganized 
        under section 122.23 or 122.243 and that is applying for a grant 
        for remodeling or improving an existing facility may act in the 
        place of a joint powers board to meet the criteria of this 
        subdivision. 
           Sec. 33.  Minnesota Statutes 1994, section 124.494, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISTRICT PROCEDURES.] A joint powers board of a 
        secondary district established under subdivision 2 or a school 
        board of a reorganized district that intends to apply for a 
        grant shall adopt a resolution stating the proposed costs of the 
        project, the purpose for which the costs are to be incurred, and 
        an estimate of the dates when the facilities for which the grant 
        is requested will be contracted for and completed.  Applications 
        for the state grants must be accompanied by (a) a copy of the 
        resolution, (b) a certificate by the clerk and treasurer of the 
        joint powers board showing the current outstanding indebtedness 
        of each member district, and (c) a certificate by the county 
        auditor of each county in which a portion of the joint powers 
        district lies showing the information in the auditor's official 
        records that is required to be used in computing the debt limit 
        of the district under section 475.53, subdivision 4.  The 
        clerk's and treasurer's certificate shall show, as to each 
        outstanding bond issue of each member district, the amount 
        originally issued, the purpose for which issued, the date of 
        issue, the amount remaining unpaid as of the date of the 
        resolution, and the interest rates and due dates and amounts of 
        principal thereon.  Applications and necessary data must be in 
        the form prescribed by the commissioner and the rules of the 
        state board of education.  Applications must be received by the 
        commissioner by September 1 of an odd-numbered year.  When an 
        application is received, the commissioner shall obtain from the 
        commissioner of revenue, and from the public utilities 
        commission when required, the information in their official 
        records that is required to be used in computing the debt limit 
        of the joint powers district under section 475.53, subdivision 4.
           Sec. 34.  Minnesota Statutes 1994, section 124.494, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AWARD OF GRANTS.] By November 1 of the 
        odd-numbered year, the commissioner shall examine and consider 
        all applications for grants, and if any district is found not 
        qualified, the commissioner shall promptly notify that board.  
           A grant award is subject to verification by the district as 
        specified in subdivision 6.  A grant award for a new facility 
        must not be made until the site of the secondary facility has 
        been determined.  A grant award to remodel or improve an 
        existing facility must not be made until the districts have 
        reorganized.  If the total amount of the approved applications 
        exceeds the amount that is or can be made available, the 
        commissioner shall allot the available amount equally between 
        the approved applicant districts.  The commissioner shall 
        promptly certify to each qualified district the amount, if any, 
        of the grant awarded to it. 
           Sec. 35.  Minnesota Statutes 1994, section 136.62, 
        subdivision 9, is amended to read: 
           Subd. 9.  [AUTHORIZATION TO SEEK FINANCING.] A community 
        college must not seek financing for child care facilities or 
        parking facilities through the higher education facilities 
        authority, as provided in section 136A.28, subdivision 3, 
        without the explicit authorization of the state board. 
           Sec. 36.  Minnesota Statutes 1994, section 136.62, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [PARKING FACILITIES.] State appropriations for 
        repair or construction of parking facilities must not be used 
        for more than one-half of the repair or construction cost of a 
        parking facility at any community college campus.  The campus 
        must provide the remaining costs through user fees. 
           Sec. 37.  [PARKING FACILITIES REPORT.] 
           By January 1, 1996, the board of trustees of the Minnesota 
        state colleges and universities must develop and implement a 
        plan to finance all repair and construction costs for parking 
        facilities with user fees.  The plan must be reported to the 
        legislature by February 1, 1996. 
           Sec. 38.  Minnesota Statutes 1994, section 136A.28, 
        subdivision 7, is amended to read: 
           Subd. 7.  "Participating institution of higher education" 
        means 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 of higher education for 
        the purpose of financing and constructing child care 
        facilities and parking facilities.  
           Sec. 39.  Minnesota Statutes 1994, section 446A.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BONDING AUTHORITY.] The authority may 
        issue negotiable bonds in a principal amount that the authority 
        determines necessary to provide sufficient funds for achieving 
        its purposes, including the making of loans and purchase of 
        securities, the payment of interest on bonds of the authority, 
        the establishment of reserves to secure its bonds, the payment 
        of fees to a third party providing credit enhancement, and the 
        payment of all other expenditures of the authority incident to 
        and necessary or convenient to carry out its corporate purposes 
        and powers, but not including the making of grants.  Bonds of 
        the authority may be issued as bonds or notes or in any other 
        form authorized by law.  The principal amount of bonds issued 
        and outstanding under this section at any time may not exceed 
        $350,000,000 $450,000,000, excluding bonds for which refunding 
        bonds or crossover refunding bonds have been issued. 
           Sec. 40.  Laws 1994, chapter 632, article 3, section 12, is 
        amended to read: 
        Sec. 12.  MILITARY AFFAIRS                              50,000
        This appropriation is to the adjutant 
        general for a grant to the Minnesota 
        National Guard youth camp to set up and 
        provide initial funding for a 
        foundation to run the camp.  The 
        appropriation must be is available only 
        as matched, dollar for dollar, by an 
        equal amount from nonstate sources. 
           Sec. 41.  Laws 1994, chapter 643, section 2, subdivision 
        15, is amended to read: 
        Subd. 15.  Science Museum of
        Minnesota                                             1,000,000 
        This appropriation is for a grant to 
        the city of St. Paul to plan for 
        predesign and design of a science 
        museum as authorized by section 81, 
        subject to new Minnesota Statutes, 
        section 16A.695. 
        This appropriation is not available 
        until the city of St. Paul has 
        delivered to the commissioner a 
        certified copy of a resolution of the 
        city of St. Paul requesting payment and 
        evidencing the commitment of the city 
        to make a city-owned riverfront site 
        available for the museum at no cost to 
        the nonprofit organization that will 
        operate the museum and the commissioner 
        has determined that the necessary 
        financing to complete the design of the 
        museum $2 has been committed by 
        nonstate sources for each $1 from this 
        appropriation. 
           Sec. 42.  Laws 1994, chapter 643, section 10, subdivision 
        10, is amended to read: 
        Subd. 10.  Rochester Technical College                 1,200,000
        This appropriation is to prepare 
        working drawings for predesign and 
        design an integrated campus in 
        accordance with this 
        subdivision.  $600,000 of this 
        appropriation is available immediately. 
        The remainder is available after a 
        master academic plan has been approved 
        under clause (3) and the technical 
        college has been sold. 
        (1) Rochester independent school 
        district No. 535 and The state board of 
        technical colleges trustees of the 
        Minnesota state colleges and 
        universities may enter into an 
        agreement for the sale of the Rochester 
        Technical College.  The sale is 
        contingent on state the approval of the 
        board of technical colleges approval 
        and passage of a referendum by the 
        voters in Rochester school district No. 
        535 trustees and a determination by the 
        board of trustees that the sale is 
        consistent with its priorities.  The 
        sale price shall equal the appraised 
        value if sold to independent school 
        district No. 535, Rochester, or, if 
        sold to any other party, the sale price 
        shall not be less than the appraised 
        value. 
        It is the intent of the legislature 
        that no technical college program 
        reduction, apart from normal program 
        review, shall occur as a result of this 
        sale. 
        (2) The sale shall not cause the 
        technical college to lease space or to 
        move to any temporary site. 
        (3) Prior to the preparation of design 
        documents, the post-secondary boards 
        and the relevant campus staff shall 
        jointly prepare a master academic plan 
        for an integrated campus for the 
        Rochester center facility.  The boards 
        shall consider the creation of a 
        polytechnic university.  Program review 
        by the higher education coordinating 
        board shall be done in accordance with 
        Minnesota Statutes, section 136A.04.  
        The plan shall be submitted to the 
        higher education board for approval by 
        December 1, 1994.  If approved, The 
        plan shall be submitted for review to 
        the higher education finance divisions 
        by January 15 16, 1995 1996, and must 
        be approved by the legislature before 
        the remaining $600,000 of the 
        appropriation is available.  The state 
        board of technical colleges, in 
        cooperation with the state board of 
        community colleges, shall not proceed 
        with working drawings until after 
        passage of the referendum and after the 
        master academic plan has been approved 
        by the higher education board.  
        (4) The proceeds from the sale of the 
        technical college to Rochester 
        independent school district No. 535, 
        are appropriated for the planning 
        design and construction necessary to 
        integrate technical college programs 
        into the Rochester center and to add or 
        modify space where necessary.  The new 
        technical college program space must be 
        attached to and must maximize the 
        current services, space, and programs 
        of the technical college, community 
        college, state university, and 
        University of Minnesota cooperative 
        campus.  The state board of technical 
        colleges trustees may not begin 
        construction of this project until the 
        legislature has approved the 
        construction plans. 
        (5) The state board of technical 
        colleges trustees shall develop a plan 
        to relocate to the Austin, Faribault, 
        and other Southeastern Minnesota 
        campuses all Rochester campus programs 
        that are not essential to the 
        integrated mission planned for the 
        Rochester center facility.  This plan 
        must be completed prior to preparing 
        design documents for the technical 
        college addition to the Rochester 
        center. 
        (6) The state board of technical 
        colleges trustees shall consider 
        relocating the horticulture technology 
        program from the Rochester campus to 
        the Austin campus of Riverland 
        technical college before the start of 
        the 1995-1996 academic year. 
           Sec. 43.  Laws 1994, chapter 643, section 11, subdivision 
        8, is amended to read: 
        Subd. 8.  Minneapolis Community College                 375,000 
        This appropriation is to prepare 
        working drawings design documents to 
        remodel and construct new space at the 
        campus for joint use with Minneapolis 
        Technical College.  The appropriation 
        is available only after an approved 
        master academic plan has been developed 
        for the campus.  The master academic 
        plan shall be developed jointly with 
        representation from each of the public 
        post-secondary systems campuses.  The 
        higher education board shall review the 
        plan.  The appropriation is available 
        if the higher education board approves 
        the plan. 
           Sec. 44.  Laws 1994, chapter 643, section 11, subdivision 
        13, is amended to read: 
        Subd. 13.  Vermilion Community College                  120,000
        This appropriation is to prepare 
        schematic plans to remodel and 
        construct space for labs, classrooms, 
        student services, campus 
        center, learning resource center, and 
        institutional services.  The 
        appropriation is available only after a 
        master academic plan has been developed 
        for the campus and approved by the 
        higher education board.  The master 
        academic plan shall be developed 
        jointly with representation from each 
        of the public post-secondary systems. 
           Sec. 45.  Laws 1994, chapter 643, section 19, subdivision 
        8, is amended to read: 
        Subd. 8.  Battle Point 
        Historic Site                                           350,000
        For construction design of the Battle 
        Point historic site, preliminary plans 
        for which were authorized in Laws 1990, 
        chapter 610, article 1, section 17, and 
        Laws 1992, chapter 558, section 24, 
        subdivision 5.  
        Notwithstanding Laws 1990, chapter 610, 
        article 1, section 17, the planned 
        educational center will be owned by 
        independent school district No. 115, 
        Cass Lake-Bena, and is subject to 
        Minnesota Statutes, section 16A.695.  
        The center must be constructed on land 
        leased to the school district by the 
        Leech Lake Band of Chippewa Indians 
        under a ground lease having an initial 
        term of at least 20 years and a total 
        term of at least 40 years, including 
        renewal options.  The school district 
        must contract with the Leech Lake Band 
        to operate the center on behalf of the 
        council.  The center and all classes 
        and programs run by or through the 
        center must be open to the public. 
           Sec. 46.  Laws 1994, chapter 643, section 21, subdivision 
        4, is amended to read: 
        Subd. 4.  Tourism and Exposition
        Centers                                               2,200,000
        For two grants to political 
        subdivisions for exhibition space for 
        tourism and exposition centers.  One 
        grant must be for $1,000,000 to the 
        southwest regional development 
        commission for the Prairieland Expo 
        facility to develop construction 
        planning documents for capital 
        improvements, and to acquire land for 
        the facility.  This grant is subject to 
        new Minnesota Statutes, section 
        16A.695.  It is the legislature's 
        expectation that the commission will 
        secure a grant from the department of 
        transportation's intermodal surface 
        transportation efficiency act funds.  
        The other grant must be for capital 
        improvements for a publicly owned 
        tourism and exposition center selected 
        by the commissioner and located in 
        northeastern Minnesota. 
           Sec. 47.  Laws 1994, chapter 643, section 23, subdivision 
        7, is amended to read: 
        Subd. 7.  Forestry Air 
        Tanker Facilities                                       368,000
        To replace temporary buildings, upgrade 
        equipment, and construct fuel and fire 
        retardant spill containment systems at 
        air tanker bases at Bemidji, Hibbing, 
        and Brainerd, and replace the temporary 
        building at Bemidji. 
        $183,000 of this appropriation is for 
        state funding of the Bemidji site and 
        is contingent upon commitment of 
        $200,000 in matching funds from the 
        United States Bureau of Indian Affairs. 
           Sec. 48.  Laws 1994, chapter 643, section 23, subdivision 
        28, is amended to read: 
        Subd. 28.  Environmental     
        Learning Centers                                     11,500,000 
        This appropriation is to the 
        commissioner of natural resources to 
        plan, design, and construct facilities 
        owned by political subdivisions at 
        residential environmental learning 
        centers as provided in this subdivision 
        and new Minnesota Statutes, section 
        84.0875. 
        The appropriations in items (a) through 
        (e) are available as follows:  (1) of 
        the $7,500,000 total, $5,000,000 is 
        available only when the commissioner 
        has determined that matching money in 
        the sum of $17,500,000 $12,500,000 has 
        been committed by nonstate sources; and 
        (2) the remaining $2,500,000 is 
        available to the extent that matching 
        money in the amount of $2 for each $1 
        of state money is committed by nonstate 
        sources, as determined by the 
        commissioner, provided that money may 
        not be spent under this sentence until 
        the amount available, including 
        matching money, is sufficient to 
        complete a functional improvement. 
        (a) Long Lake Conservation Center                     1,200,000
        This appropriation is for a grant to 
        Aitkin county. 
        (b) Deep Portage Conservation Reserve                 1,470,000
        This appropriation is for a grant to 
        Cass county. 
        (c) Wolf Ridge Environmental    
        Learning Center                                       2,100,000
        This appropriation is for a grant to 
        independent school district No. 381, 
        Lake Superior. 
        (d) Northwoods Audubon Center                         1,080,000
        This appropriation is for a grant to 
        independent school district No. 2580, 
        East Central. 
        (e) Forest Resource Center                            1,650,000
        This appropriation is for a grant to 
        independent school district No. 229, 
        Lanesboro. 
        If land and improvements in Fillmore 
        county that were conveyed by the state 
        to Southern Minnesota Forest Resource 
        Center under Laws 1990, chapter 452, 
        section 7, are pledged as security for 
        a loan to assist with the completion of 
        this project, the right of reverter 
        retained by the state is waived in 
        favor of the lender. 
        (f) Agassiz Environmental   
        Learning Center                                         300,000
        This appropriation is for a grant to 
        the city of Fertile. 
        (g) Laurentian Environmental
        Learning Center                                         450,000
        This appropriation is for a grant to 
        independent school district No. 621, 
        Mounds View. 
        (h) Prairie Woods           
        Environmental Learning Center                           250,000
        This appropriation is for a grant to 
        Kandiyohi county. 
        (i) Prairie Wetlands        
        Environmental Learning Center                         3,000,000
        This appropriation is for a grant to 
        the city of Fergus Falls. 
        Appropriations in this subdivision must 
        be used for qualified capital 
        expenditures. 
           Sec. 49.  Laws 1994, chapter 643, section 26, subdivision 
        3, is amended to read: 
        Subd. 3.  RIM Conservation Easement 
        Acquisition                                           9,000,000
        This appropriation is for the purposes 
        specified in paragraphs (a) to (c). 
        (a) To acquire conservation easements 
        from landowners on marginal lands to 
        protect soil and water quality and to 
        support fish and wildlife habitat as 
        provided in Minnesota Statutes, section 
        103F.515. 
        (b) To acquire perpetual conservation 
        easements on existing type 1, 2, and 3 
        wetlands, adjacent lands, and for the 
        establishment of permanent cover on 
        adjacent lands, in accordance with 
        Minnesota Statutes, section 103F.516.  
        (c) Up to $300,000 of this 
        appropriation may be used to establish 
        and restore wetlands to provide credits 
        for deposit in the state wetland bank 
        established under Minnesota Statutes, 
        section 103G.2242, subdivision 1.  The 
        board may enter into agreements with 
        local government units and the 
        commissioner of transportation for this 
        purpose.  An agreement with the 
        commissioner of transportation may 
        provide for borrowing or acquiring 
        existing wetland credits from the 
        wetland bank established by the 
        commissioner.  Proceeds from the sale 
        of credits provided under this 
        paragraph are appropriated to the board 
        for the purposes of paragraph 
        (b).  Sales of credits provided under 
        this paragraph need not be made for 
        fair market value when the sale is to a 
        public entity. 
           Sec. 50.  Laws 1994, chapter 643, section 26, subdivision 
        4, is amended to read: 
        Subd. 4.  Work Program
        The board of water and soil resources 
        must submit a work program and 
        semiannual progress reports in the form 
        determined by the legislative water 
        commission and request its 
        recommendation before spending any 
        money appropriated by subdivisions 4 2 
        and 5 3.  The commission's 
        recommendation is advisory only.  
        Failure to respond to a request within 
        60 days after receipt is a negative 
        recommendation.  Work programs 
        involving land acquisition must include 
        a land acquisition plan. 
           Sec. 51.  [MANKATO STATE.] 
           Mankato State University may sell to the city of Mankato 
        for fair market value approximately 2.66 acres of land in the 
        area of Warren Street, Stadium Road, and Hiniker Mill Road for 
        use as a detention basin.  The university may also grant the 
        city of Mankato a permanent utility easement in order to provide 
        the city access to the basin. 
           Sec. 52.  [REPEALER.] 
           Laws 1991, chapter 265, article 5, section 23, as amended 
        by Laws 1992, chapter 499, article 5, section 25, is repealed. 
           Sec. 53.  [EFFECTIVE DATE.] 
           This article is effective the day after its final 
        enactment; section 17 applies to state bonds and certificates of 
        indebtedness, regardless of whether they were issued on, before, 
        or after that date. 
                                   ARTICLE 2 
                            APPROPRIATION REDUCTIONS 
        Section 1.  [APPROPRIATION REDUCTIONS; SUMMARY.] 
           Subdivision 1.  [SUMMARY.] The amounts set forth in 
        parentheses in the column headed "APPROPRIATION REDUCTIONS" are 
        reductions from appropriations for the fiscal year ending June 
        30, 1995. 
                                SUMMARY BY FUND
                                                          APPROPRIATION
                                                           REDUCTIONS
        General Fund                                      $ (10,699,000)
        Subd. 2.  Legislative Coordinating
        Commission                                             (500,000)
        This reduction is taken from 
        appropriations made in Laws 1993, 
        chapter 192, Laws 1994, chapter 632, or 
        other law, and shall be allocated by 
        the legislative coordinating commission 
        among the senate, the house of 
        representatives, and the legislative 
        commissions. 
        Subd. 3.  Environment and 
        Natural Resources
        (a) Department of Agriculture                          (113,000)
        (b) Office of Environmental Assistance                  (50,000)
        (c) Pollution Control Agency                           (569,000)
        (d) Department of Natural Resources                    (802,000)
        Subd. 4.  Education                                 
        Department of Education                                (200,000)
        Subd. 5.  Health and Human Services
        (a) Department of Human Services                     (2,000,000)
        (b) Department of Health                               (250,000)
        Subd. 6.  Transportation 
        (a) Department of Transportation                        (70,000)
        (b) Department of Public Safety                        (128,000)
        Subd. 7.  Economic Development,
        Infrastructure, and Regulation 
        (a) Department of Commerce                             (503,000)
        (b) Department of Economic Security                     (78,000)
        (c) Department of Labor and Industry                   (139,000)
        (d) Department of Public Service                       (175,000)
        (e) Department of Trade and 
        Economic Development                                   (371,000)
        Subd. 8.  State Government
        (a) Department of Administration                       (200,000)
        (b) Department of Employee Relations                   (600,000)
        (c) Department of Finance                              (350,000)
        (d) Department of Human Rights                          (85,000)
        (e) Department of Military Affairs                     (292,000)
        (f) Department of Revenue                              (600,000)
        Subd. 9.  Judiciary Finance
        (a) Department of Corrections                        (2,510,000)
        (b) Department of Public Safety                        (114,000)
           Sec. 2.  [AGENCY DUTIES TO UNALLOT.] 
           Each agency of the executive branch shall unallot as 
        necessary to accomplish its reductions.  Each executive branch 
        agency shall provide a listing to the commissioner of finance, 
        the chair of the senate finance committee, and the chair of the 
        ways and means committee of the house of representatives by June 
        1, 1995, of the appropriation accounts to be reduced.  The 
        commissioner of finance shall effect these reductions by June 
        15, 1995.  
           Sec. 3.  [APPROPRIATION.] 
           $20,000 is appropriated from the general fund to the peace 
        officer standards and training board for the fiscal year ending 
        June 30, 1995.  This appropriation is added to the appropriation 
        in Laws 1993, chapter 146, article 2, section 2, to provide for 
        staffing and general operating costs of the board, including 
        legal fees.  
           Sec. 4.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
           Presented to the governor May 26, 1995 
           Signed by the governor June 8, 1995, 12:58 p.m.