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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 246-H.F.No. 632 
                  An act relating to capital improvements; cleaning up 
                  lands contaminated by petroleum leaks; providing for 
                  replacement of leaking underground petroleum tanks; 
                  cleaning up contaminated building sites; transferring 
                  authority to administer individual on-site sewage 
                  treatment programs to the pollution control agency; 
                  modifying sewer loan repayment provisions; 
                  appropriating money for flood damage reduction and for 
                  local bridges; modifying previous appropriations for 
                  certain capital improvements; changing the source of 
                  funds for certain projects; defining design and 
                  predesign; transferring authority to administer grants 
                  for certain projects; appropriating money; authorizing 
                  the sale of state bonds; amending Minnesota Statutes 
                  1996, sections 16B.335, subdivision 3; 115C.09, by 
                  adding a subdivision; 116.18, subdivision 3c; 
                  116J.554, subdivisions 1 and 2; 116J.556; and 
                  446A.072, by adding a subdivision; Laws 1994 chapter 
                  643, sections 3, subdivision 2; 10, subdivision 10, as 
                  amended; 15, subdivisions 2 and 4; 19, subdivision 8, 
                  as amended; and 23, subdivision 28, as amended, and by 
                  adding a subdivision; Laws 1996, chapters 407, section 
                  8, subdivision 3; and 463, sections 7, subdivision 9; 
                  13, subdivisions 2, 4, and 8; 14, subdivision 7; 22, 
                  subdivision 8; and 24, subdivision 8; Laws 1997, 
                  chapter 202, article 1, section 35; proposing coding 
                  for new law in Minnesota Statutes, chapter 116J; 
                  repealing Laws 1994, chapter 643, section 19, 
                  subdivision 11; Laws 1996, chapter 463, section 7, 
                  subdivision 26; and Laws 1997, chapter 200, article 2, 
                  section 5. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
        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 act. 
                                    SUMMARY 
        MINNESOTA STATE COLLEGES AND UNIVERSITIES        $    4,500,000
        NATURAL RESOURCES                                     4,000,000
        POLLUTION CONTROL AGENCY                              7,400,000
        PUBLIC FACILITIES AUTHORITY                           7,000,000
        AGRICULTURE                                           4,000,000
        ADMINISTRATION                                       74,035,000
        TRADE AND ECONOMIC DEVELOPMENT                        7,000,000
        TRANSPORTATION                                        3,000,000
        BOND SALE EXPENSES                                       90,000
        TOTAL                                            $  111,025,000
        Bond Proceeds Fund                                   86,625,000
        Transportation Fund                                   3,000,000
        General Fund                                         13,600,000
        Motor Vehicle Transfer Fund                           7,800,000
                                                         APPROPRIATIONS 
                                                         $
        Sec. 2.  MINNESOTA STATE COLLEGES
        AND UNIVERSITIES 
        Hibbing Community and 
        Technical Colleges                                    4,500,000
        This appropriation is to the board of 
        trustees of the Minnesota state 
        colleges and universities to construct 
        additions and install related 
        electrical and mechanical utilities at 
        the community college site to prepare 
        for collocation of programs. 
        Sec. 3.  NATURAL RESOURCES 
        Flood Damage Reduction                                4,000,000
        This appropriation is to the 
        commissioner of natural resources to 
        fund flood damage reduction projects 
        under Minnesota Statutes, section 
        103F.161, including the nonfederal 
        portion of federal hazard mitigation 
        grant program projects.  The 
        appropriation is available until 
        expended. 
        Sec. 4.  POLLUTION CONTROL AGENCY
        Subdivision 1.  To the commissioner
        of the pollution control agency for the
        purposes specified in this section                    7,400,000
        Subd. 2.  Individual Sewage Treatment Grants          1,000,000
        This one-time appropriation is from the 
        general fund for grants to 
        municipalities for the purposes 
        specified in Minnesota Statutes, 
        section 116.18, subdivision 3c.  
        For purposes of grants awarded under 
        this section, the definition of 
        "individual on-site treatment system" 
        in Minnesota Statutes, section 116.18, 
        subdivision 3c, paragraph (b), also 
        includes an alternative discharging 
        sewage system serving one or more 
        dwellings and other establishments that 
        discharges less than 10,000 gallons of 
        water per day and uses any treatment 
        and disposal methods other than 
        subsurface soil treatment and disposal, 
        as permitted under Minnesota Statutes, 
        section 115.58. 
        Up to ten percent of this appropriation 
        may be used for administration of the 
        grants.  
        Subd. 3.  Environmental Response,
        Compensation, and Compliance                          6,400,000
        This appropriation is from the motor 
        vehicle transfer fund for transfer to 
        the environmental response, 
        compensation, and compliance fund and 
        is appropriated for the purposes 
        provided in Minnesota Statutes, chapter 
        115B.  This amount must be included in 
        the agency's budgetary base for the 
        next biennium. 
        Sec. 5.  PUBLIC FACILITIES AUTHORITY                           
        Wastewater Infrastructure Fund Loans                  7,000,000
        $3,000,000 of this appropriation is 
        from the general fund.  
        This appropriation is to the public 
        facilities authority for loans to 
        eligible municipalities under the 
        wastewater infrastructure funding 
        program established in Minnesota 
        Statutes, section 446A.072.  
        From this appropriation, the public 
        facilities authority shall provide 
        supplemental assistance to a 
        municipality that, before the first 
        loans were made from the wastewater 
        infrastructure fund, incurred increased 
        project costs as a result of a 
        wastewater discharge into outstanding 
        resource value water.  "Outstanding 
        resource value water" is water that has 
        high water quality, wilderness 
        characteristics, unique scientific or 
        ecological significance, exceptional 
        recreational value, or other special 
        qualities that warrant stringent 
        protection from pollution.  The amount 
        of supplemental assistance under this 
        paragraph is up to 100 percent of the 
        increased project costs to comply with 
        the applicable discharge restrictions.  
        The agency shall determine the amount 
        of project costs attributable to the 
        discharge restrictions to the 
        outstanding resource value water.  A 
        municipality may appeal the agency's 
        determination to the public facilities 
        authority within 60 days of 
        notification of the determination. 
        The public facilities authority, in 
        conjunction with the pollution control 
        agency, shall analyze and report to the 
        legislature by January 15, 1998, the 
        long-term financial implications to the 
        wastewater infrastructure fund of 
        providing supplemental assistance for 
        increased costs incurred for projects 
        that discharge wastewater into 
        outstanding resource value water. 
        Sec. 6.  AGRICULTURE                          
        Individual Sewage Treatment Systems                   4,000,000
        This one-time appropriation from the 
        general fund is to the commissioner of 
        agriculture to provide loans to 
        counties for loans to property owners 
        under Minnesota Statutes, section 
        17.117 or 115.57. 
        Individual counties may elect to apply 
        for and administer the loans under the 
        agricultural best management loan 
        practices program established in 
        Minnesota Statutes, section 17.117, or 
        under section 115.57.  Regardless of 
        the section a county applies under, the 
        commissioner shall review and rank 
        allocation requests from counties under 
        the procedure and relevant criteria 
        listed in Minnesota Statutes, section 
        17.117, subdivision 9.  Loans made 
        under Minnesota Statutes, section 
        17.117, with money appropriated under 
        this section must be used for site 
        evaluation, design, installation, 
        repair, and replacement of individual 
        sewage treatment systems only.  
        Notwithstanding the eligibility 
        criteria in Minnesota Statutes, section 
        17.117, subdivisions 1; and 4, 
        paragraph (e), all private landowners 
        in a county may apply for loans made 
        under this section.  Loans made under 
        Minnesota Statutes, section 115.57, may 
        be used for any of the purposes 
        specified in that section.  Counties 
        receiving funds under this section must 
        use the funds to administer loan 
        programs on a countywide basis. 
        Sec. 7.  TRADE AND ECONOMIC DEVELOPMENT  
        Contaminated Site Cleanup                             7,000,000 
        $5,600,000 of this appropriation is 
        from the general fund. 
        $1,400,000 of this appropriation is 
        from the motor vehicle transfer fund. 
        This appropriation is for transfer to 
        the contaminated site cleanup and 
        development account and is appropriated 
        for the purposes specified in Minnesota 
        Statutes, section 116J.551.  Of this 
        amount, $7,000,000 must be included in 
        the department's budget base for the 
        next biennium. 
        Sec. 8.  TRANSPORTATION
        Local Bridge Replacement and
        Rehabilitation                                        3,000,000
        This appropriation is from the 
        transportation fund as provided in 
        Minnesota Statutes, section 174.50, to 
        match federal funds and to replace or 
        rehabilitate local deficient bridges. 
        Political subdivisions may use grants 
        made under this section to construct or 
        reconstruct bridges, including: 
        (1) matching federal-aid grants to 
        construct or reconstruct key bridges; 
        (2) paying the costs to abandon an 
        existing bridge that is deficient and 
        in need of replacement, but where no 
        replacement will be made; 
        (3) paying the costs to construct a 
        road or street to 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 the 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.  BOND SALE EXPENSES                             90,000
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8. 
           Sec. 10.  [BOND SALE AUTHORIZATIONS.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
        appropriated in this act 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 $86,625,000 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 act 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 $3,000,000 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.  
        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. 
           Sec. 11.  Minnesota Statutes 1996, section 16B.335, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PREDESIGN REQUIREMENT.] The definitions in 
        paragraphs (a) and (b) apply to this section. 
           (a) "Predesign" means the stage in the development of a 
        project during which the purpose, scope, cost, and schedule of 
        the complete project are defined and instructions to design 
        professionals are produced.  
           (b) "Design" means the stage in the development of a 
        project during which schematic, design development, and contract 
        documents are produced. 
           (c) A recipient to whom an appropriation is made for a 
        project subject to review under subdivision 1 or notice under 
        subdivision 2 shall prepare a predesign package and submit it to 
        the commissioner for review and recommendation before proceeding 
        with design activities.  The commissioner must complete the 
        review and recommendation within ten working days after 
        receiving it.  Failure to review and recommend within the ten 
        days is considered a positive recommendation.  The predesign 
        package must be sufficient to define the purpose, scope, cost, 
        and schedule of the project and must demonstrate that the 
        project has been analyzed according to appropriate space needs 
        standards. 
           Sec. 12.  Minnesota Statutes 1996, section 115C.09, is 
        amended by adding a subdivision to read: 
           Subd. 3f.  [REIMBURSEMENTS; SMALL GASOLINE RETAILERS.] (a) 
        As used in this subdivision, "small gasoline retailer" means a 
        responsible person who owns no more than one location where 
        motor fuel was dispensed into motor vehicles or aircraft in the 
        previous year. 
           (b) For eligible applicants who are small gasoline 
        retailers that have dispensed less than 500,000 gallons of motor 
        fuel during the most recent calendar year that petroleum 
        products were dispensed at the location owned by the retailer, 
        the board shall reimburse the applicant for 90 percent of the 
        applicant's total reimbursable cost for tank removal projects 
        started after January 1, 1997, including, but not limited to, 
        closure in place, backfill, resurfacing, and utility service 
        restoration costs, provided that the tank involved is a 
        regulated underground storage tank. 
           (c) For eligible applicants who are small gasoline 
        retailers that have dispensed less than 250,000 gallons of motor 
        fuel during the most recent calendar year that petroleum 
        products were dispensed at the location owned by the retailer, 
        provided that the tank involved is a regulated underground 
        storage tank, the board shall reimburse the applicant for 95 
        percent of the following costs: 
           (1) tank removal costs described in paragraph (b); and 
           (2) petroleum contamination cleanup as provided under 
        subdivision 1. 
           (d) This subdivision expires January 1, 2000. 
           Sec. 13.  Minnesota Statutes 1996, section 116.18, 
        subdivision 3c, is amended to read: 
           Subd. 3c.  [INDIVIDUAL ON-SITE TREATMENT SYSTEMS PROGRAM.] 
        (a) Beginning in fiscal year 1989, up to ten percent of the 
        money to be awarded as grants under subdivision 3a in any single 
        fiscal year, up to a maximum of $1,000,000, may be set aside for 
        the award of grants by the authority agency to municipalities to 
        reimburse owners of individual on-site wastewater treatment 
        systems for a part of the costs of upgrading or replacing the 
        systems. 
           (b) An individual on-site treatment system is a wastewater 
        treatment system, or part thereof, that uses soil treatment and 
        disposal technology to treat 5,000 gallons or less of wastewater 
        per day from dwellings or other establishments. 
           (c) Municipalities may apply yearly for grants of up to 50 
        percent of the cost of replacing or upgrading individual on-site 
        treatment systems within their jurisdiction, up to a limit of 
        $5,000 per system or per connection to a cluster system.  Before 
        agency approval of the grant application, a municipality must 
        certify that:  
           (1) it has adopted and is enforcing the requirements of 
        Minnesota Rules governing individual sewage treatment systems; 
           (2) the existing systems for which application is made do 
        not conform to those rules, were constructed prior to January 1, 
        1977 are at least 20 years old, do not serve seasonal 
        residences, and were not constructed with state or federal 
        funds; and 
           (3) the costs requested do not include administrative 
        costs, costs for improvements or replacements made before the 
        application is submitted to the authority agency unless it 
        pertains to the plan finally adopted, and planning and 
        engineering costs other than those for the individual site 
        evaluations and system design.  
           (d) The federal and state regulations regarding the award 
        of state and federal wastewater treatment grants do not apply to 
        municipalities or systems funded under this subdivision, except 
        as provided in this subdivision.  
           (e) The authority shall award individual on-site wastewater 
        treatment grants to municipalities selected by the state 
        pollution control commissioner upon certification by the state 
        pollution control commissioner that the municipalities' 
        applications have been reviewed and approved in accordance with 
        this subdivision and agency rules adopted under paragraph (f). 
           (f) The agency shall adopt permanent rules regarding 
        priorities, distribution of funds, payments, 
        inspections, procedures for administration of the agency's 
        duties, and other matters that the agency finds necessary for 
        proper administration of grants awarded under this subdivision.  
           (g) The commissioner of trade and economic development may 
        adopt rules containing procedures for administration of the 
        authority's duties as set forth in paragraph (e). 
           Sec. 14.  Minnesota Statutes 1996, section 116J.554, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] (a) The commissioner may make 
        a grant to an applicant development authority to pay for up to 
        75 percent of the cleanup project costs for a qualifying site, 
        except the grant may not exceed 50 percent of the project costs. 
           (b) The commissioner may also make a grant to an applicant 
        development authority to pay up to 75 percent or $50,000, 
        whichever is less, toward the cost of performing contaminant 
        investigations and the development of a response action plan for 
        a qualifying site. 
           (c) The commissioner may also make a grant to an applicant 
        to fill a site that would represent more than 50 percent of the 
        remaining land in a city suitable for industrial development if 
        it were properly filled. 
           (d) The determination of whether to make a grant for a 
        qualifying site is within the sole discretion of the 
        commissioner, subject to the process provided by this section, 
        and available unencumbered money in the appropriation.  The 
        commissioner's decisions and application of the priorities under 
        section 116J.555 are not subject to judicial review, except for 
        abuse of discretion. 
           (e) The total amount of money provided in grants under 
        paragraph (b) may not exceed $250,000 per fiscal year. 
           (f) In making grants under paragraph (b), the commissioner 
        shall give priority to applicants that have not received a grant 
        under paragraph (a) or section 473.252 during the year ending on 
        the date of application. 
           Sec. 15.  Minnesota Statutes 1996, section 116J.554, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUALIFYING SITES.] A site qualifies for a grant 
        under this section, if the following criteria are met: 
           (1) the site is not scheduled for funding during the 
        current or next fiscal year under the Comprehensive 
        Environmental Response, Compensation, and Liability Act, United 
        States Code, title 42, section 9601, et seq. or under the 
        environmental response, and liability act under sections 115B.01 
        to 115B.24; 
           (2) the appraised value of the site after adjusting for the 
        effect on the value of the presence or possible presence of 
        contaminants using accepted appraisal methodology (i) is less 
        than 50 75 percent of the estimated cleanup project costs for 
        the site or (ii) is less than or equal to the estimated cleanup 
        costs for the site and the cleanup costs equal or exceed $3 per 
        square foot for the site; and 
           (3) if the proposed cleanup is completed, it is expected 
        that the site will be improved with buildings or other 
        improvements and these improvements will provide a substantial 
        increase in the property tax base within a reasonable period of 
        time or the site will be used for an important publicly owned or 
        tax-exempt facility. 
           Sec. 16.  Minnesota Statutes 1996, section 116J.556, is 
        amended to read: 
           116J.556 [LOCAL MATCH REQUIREMENT.] 
           (a) In order to qualify for a grant under sections 116J.551 
        to 116J.557, the municipality must pay for at least one-half 
        one-quarter of the project costs as a local match.  The 
        municipality shall pay an amount of the project costs equal to 
        at least 12 percent of the cleanup costs from the municipality's 
        general fund, a property tax levy for that purpose, or other 
        unrestricted money available to the municipality (excluding tax 
        increments).  These unrestricted moneys may be spent for project 
        costs, other than cleanup costs, and qualify for the local match 
        payment equal to 12 percent of cleanup costs.  The rest of the 
        local match may be paid with tax increments, regional, state, or 
        federal money available for the redevelopment of brownfields or 
        any other money available to the municipality. 
           (b) If the development authority establishes a tax 
        increment financing district or hazardous substance subdistrict 
        on the site to pay for part of the local match requirement, the 
        district or subdistrict is not subject to the state aid 
        reductions under section 273.1399.  In order to qualify for the 
        exemption from the state aid reductions, the municipality must 
        elect, by resolution, on or before the request for certification 
        is filed that all tax increments from the district or 
        subdistrict will be used exclusively to pay (1) for project 
        costs for the site and (2) administrative costs for the district 
        or subdistrict.  The district or subdistrict must be decertified 
        when an amount of tax increments equal to no more than three 
        times the costs of implementing the response action plan for the 
        site and the administrative costs for the district or 
        subdistrict have been received, after deducting the amount of 
        the state grant. 
           Sec. 17.  [116J.57] [UNDERGROUND PETROLEUM TANK REPLACEMENT 
        LOAN PROGRAM.] 
           Subdivision 1.  [LOAN PROGRAM.] (a) The commissioner shall 
        establish and implement an underground petroleum tank 
        replacement loan program to facilitate the continued operation 
        of small gasoline retailers, as defined in section 115C.09, 
        subdivision 3f, paragraph (a), in this state. 
           (b) The commissioner may make a direct loan for the cost of 
        a replacement tank to a small gasoline retailer who has 
        dispensed less than 500,000 gallons of motor fuel during the 
        previous year who demonstrates an ability to repay the loan.  
        The interest rate on the loan shall not exceed three percent per 
        year, and the term of the loan may not exceed seven years.  
        Loans made under this subdivision may not exceed $10,000 or the 
        total out-of-pocket expenses of the small gasoline retailer for 
        tank replacement, whichever is less.  Payments on the principal 
        shall be credited to the petroleum tank fund under section 
        115C.08.  The interest payments must be deposited in the state 
        treasury and credited to an account in the special revenue 
        fund.  Money in this account is appropriated to the commissioner 
        for administrative expenses of the underground petroleum tank 
        replacement loan program. 
           Subd. 2.  [APPROPRIATION.] An amount necessary is 
        appropriated from the petroleum tank release cleanup fund to the 
        commissioner of trade and economic development for the 
        underground petroleum tank replacement loan program established 
        under this section. 
           Subd. 3.  [EXPIRATION.] This section expires January 1, 
        2000.  
           Sec. 18.  Minnesota Statutes 1996, section 446A.072, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [LOAN REPAYMENT; NEW DEVELOPMENT.] (a) For the 
        purposes of this subdivision, "loan" includes a loan that has 
        been forgiven under this section. 
           (b) A municipality that receives a supplemental assistance 
        loan under this section that, within 20 years after receiving 
        the assistance, extends sewer service to serve a residential, 
        industrial, or commercial development that is completed on 
        unplatted land after March 1, 1996, or that is on a lot whose 
        plat was recorded after that date, must repay a portion of the 
        loan to the authority before providing the sewer connection.  
        The commissioner shall calculate the amount to be repaid by 
        first determining the number of households included in the 
        extension financed by the original loan.  The commissioner must 
        then determine the present value of the original loan amount.  
        The interest rate used to calculate the present value must be 
        equivalent to the interest rate on the loan made to the 
        municipality under section 446A.07 at the time of the original 
        supplemental assistance loan under this section.  The 
        commissioner must then divide the present value of the loan by 
        the number of households included in the original loan.  For an 
        extension to a residential development, the repayment to the 
        authority must be equal to the per household amount calculated 
        for the original loan multiplied by the number of households in 
        the proposed extension.  For an extension to a commercial or 
        industrial development, the commissioner shall determine the 
        repayment to the authority by using the per household amount 
        calculated for the original loan to calculate a proportionally 
        equivalent amount based on the projected wastewater discharge 
        from the proposed development.  The total repayments to the 
        authority under this paragraph may not exceed the original 
        amount of the supplemental assistance loan.  The repayment must 
        be processed as provided in subdivision 7. 
           (c) The authority shall waive the loan repayment if the 
        commissioner determines that the community in which the sewer 
        extension is undertaken meets the following conditions: 
           (1) there is a shortage of decent, safe, and affordable 
        housing; 
           (2) the housing units served by the sewer extension are 
        located in an incorporated area; and 
           (3) the housing units served by the sewer extension are 
        moderately priced. 
           The authority shall also waive the loan repayment if the 
        commissioner determines that the population of the community in 
        which the sewer extension is undertaken has declined by more 
        than ten percent since the preceding federal decennial census. 
           The commissioner shall provide the determinations made 
        under this paragraph to the authority to be included in the 
        reports required by subdivision 11. 
           Sec. 19.  Laws 1994, chapter 643, section 3, subdivision 2, 
        is amended to read:  
        Subd. 2.  Restore and Renovate
        Capitol Building Exterior                             5,000,000
        To the commissioner of administration 
        to renovate and improve the capitol 
        including reroofing, repair of the roof 
        balustrade, and Quadriga restoration, 
        and for an exterior stone testing 
        program.  No more than $35,000 of this 
        appropriation is to the capitol area 
        architectural and planning board for 
        design review fees. 
           Sec. 20.  Laws 1994, chapter 643, section 10, subdivision 
        10, as amended by Laws 1995, First Special Session chapter 2, 
        article 1, section 42, is amended to read: 
        Subd. 10.  Rochester Technical College University 
        Center Rochester                                       1,200,000
        This appropriation is to the board of 
        trustees of the Minnesota state 
        colleges and universities for predesign 
        and design of 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., remodeling of student support 
        facilities, remodeling of facilities 
        for joint academic programming, and 
        construction of roads and other 
        infrastructure to integrate the campus 
        for the delivery of consolidated 
        college, state university, and 
        University of Minnesota programs at the 
        University Center Rochester.  Planning 
        may include consideration of 
        codevelopment of facilities with local 
        units of government. 
        (1) The board of 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 the approval of the board 
        of 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.  The plan shall 
        be submitted for review to the higher 
        education finance divisions by January 
        16, 1996, and must be approved by the 
        legislature before the remaining 
        $600,000 of the appropriation is 
        available.  
        (4) The proceeds from the sale of the 
        technical college are appropriated for 
        the 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 trustees 
        may not begin construction of this 
        project until the legislature has 
        approved the construction plans. 
        (5) The state board of 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 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. 21.  Laws 1994, chapter 643, section 15, subdivision 
        2, is amended to read: 
        Subd. 2.  Bloomington Ferry Bridge          7,631,000 5,131,000
        This appropriation is from the state 
        transportation fund as provided in 
        Minnesota Statutes, section 174.50, to 
        match federal funds to complete 
        construction of the Bloomington ferry 
        bridge and approaches.  
        This appropriation is added to the 
        appropriation in Laws 1993, chapter 
        373, section 14, subdivision 2. 
           Sec. 22.  Laws 1994, chapter 643, section 15, subdivision 
        4, is amended to read: 
        Subd. 4.  Local Bridge 
        Replacement and Rehabilitation            12,445,000 14,945,000
        This appropriation is from the state 
        transportation fund as provided in 
        Minnesota Statutes, section 174.50, to 
        match federal funds and to replace or 
        rehabilitate local deficient bridges. 
        Political subdivisions may use grants 
        made under this section to construct or 
        reconstruct bridges, including: 
        (1) matching federal-aid grants to 
        construct or reconstruct key bridges; 
        (2) paying the costs to abandon an 
        existing bridge that is deficient and 
        in need of replacement, but where no 
        replacement will be made; 
        (3) paying the costs to construct a 
        road or street to 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 the 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. 23.  Laws 1994, chapter 643, section 19, subdivision 
        8, as amended by Laws 1995, First Special Session chapter 2, 
        article 1, section 45, is amended to read: 
        Subd. 8.  Battle Point 
        Historic Site                                           350,000
        This appropriation is to the Indian 
        Affairs Council for 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 the state with custodial 
        control assigned to the Indian Affairs 
        Council, and is subject to Minnesota 
        Statutes, section 16A.695.  The center 
        must be constructed on land leased to 
        the school district state 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 ground lease must be 
        executed by the commissioner of 
        administration under Minnesota 
        Statutes, section 16B.24, subdivision 
        6, based on the recommendations of the 
        Indian Affairs Council, provided that, 
        notwithstanding the limitations of 
        section 16B.24, subdivision 6, the 
        lease must be for the initial term 
        described in this subdivision.  The 
        ground lease must be administered by 
        the Indian Affairs Council.  The school 
        district Indian Affairs Council 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.  Notwithstanding Minnesota 
        Statutes, section 3.922, for the 
        purposes of carrying out the duties 
        assigned to it in this subdivision, the 
        Indian Affairs Council is authorized to 
        assume custodial control over the 
        planned educational center, administer 
        the ground lease, enter into the 
        contract described in this subdivision 
        with the Leech Lake Band to operate the 
        center, and take any other action 
        necessary to carry out the duties 
        assigned to it in this subdivision and 
        to a public officer or agency by 
        Minnesota Statutes, section 16A.695. 
           Sec. 24.  Laws 1994, chapter 643, section 23, subdivision 
        28, as amended by Laws 1995, First Special Session chapter 2, 
        article 1, section 48, 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) and (b) 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 $12,500,000, up to 25 
        percent of which may consist of loans, 
        has been committed by nonstate 
        sources for predesign, design, and 
        construction of the facilities named in 
        items (a) and (b), and the following 
        privately owned residential 
        environmental learning centers:  Wolf 
        Ridge Environmental Learning Center, 
        Northwoods Audubon Center, and 
        Southeastern Minnesota Forest Resource 
        Center; and (2) the remaining 
        $2,500,000 is available to the extent 
        that matching money, which may include 
        loans, in the amount of $2 $1 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 any money from nonstate 
        sources that is allocated to a facility 
        in item (a) or (b), is sufficient to 
        complete a functional improvement at 
        the facility.  Up to 25 percent of the 
        total amount of money committed by 
        nonstate sources under this subdivision 
        may consist of loans. 
        After the first $12,500,000 has been 
        committed by nonstate sources for the 
        Long Lake Conservation Center, the Deep 
        Portage Conservation Reserve, the Wolf 
        Ridge Environmental Learning Center, 
        the Northwoods Audubon Center, and the 
        Southeastern Minnesota Forest Resource 
        Center, the appropriations in items (a) 
        and (b) must be distributed and 
        administered separately for each 
        facility.  Money from nonstate sources 
        required for the balances of the 
        appropriations in items (a) and (b) 
        must be committed as required in this 
        section for each facility separately to 
        allow functional improvements, but work 
        at the facilities need not proceed 
        simultaneously.  Funds raised or 
        borrowed after January 1, 1992, and 
        spent or committed to be spent for 
        predesign, design, or construction of 
        these facilities are eligible to count 
        toward the required commitment from 
        nonstate sources, and, upon proper 
        application, nonstate money spent after 
        that date for qualified capital 
        expenditures at the Long Lake 
        Conservation Center and the Deep 
        Portage Conservation Reserve shall be 
        reimbursed by the commissioner from 
        money appropriated for these 
        facilities, to allow the nonstate money 
        to be used for qualified capital 
        expenditures at the Wolf Ridge 
        Environmental Learning Center, the 
        Northwoods Audubon Center, and the 
        Southeastern Minnesota Forest Resource 
        Center. 
        The predesign and design requirements 
        of Minnesota Statutes, section 16B.335, 
        do not apply to the specific 
        appropriations for these facilities in 
        this section. 
        (a) Long Lake Conservation Center           1,200,000 3,370,000
        This appropriation is for a grant to 
        Aitkin county. 
        (b) Deep Portage Conservation Reserve       1,470,000 4,130,000
        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) (c) Forest Resource Eagle Bluff
        Environmental Learning 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 provide financing for the 
        predesign, design, or construction of 
        environmental education facilities at 
        the Eagle Bluff Environmental Learning 
        Center, the right of reverter retained 
        by the state is waived in favor of the 
        lender. 
        For the purposes of this subdivision, 
        "nonstate source" means a source of 
        money other than a direct state 
        appropriation for an environmental 
        learning center. 
        (f) (d) Agassiz Environmental   
        Learning Center                                         300,000
        This appropriation is for a grant to 
        the city of Fertile. 
        (g) (e) Laurentian Environmental
        Learning Center                                         450,000
        This appropriation is for a grant to 
        independent school district No. 621, 
        Mounds View. 
        (h) (f) Prairie Woods           
        Environmental Learning Center                           250,000
        This appropriation is for a grant to 
        Kandiyohi county. 
        (i) (g) 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. 25.  Laws 1994, chapter 643, section 23, is amended by 
        adding a subdivision to read: 
        Subd. 31.  St. Croix Valley  
        Heritage Center                                         150,000 
        To the commissioner of natural 
        resources for a grant to the city of 
        Taylors Falls to prepare a preliminary 
        design for a heritage center, subject 
        to Minnesota Statutes, section 16A.695. 
           Sec. 26.  Laws 1996, chapter 407, section 8, subdivision 3, 
        is amended to read: 
        Subd. 3.  Parks and Trails
        (a) Metropolitan Regional Park System         1,000,000 850,000 
        This appropriation is from the future 
        resources fund for payment by the 
        commissioner of natural resources to 
        the metropolitan council for subgrants 
        to rehabilitate, develop, acquire, and 
        retrofit the metropolitan regional park 
        system consistent with the metropolitan 
        council regional recreation open space 
        capital improvement program. 
        This appropriation may be used for the 
        purchase of homes only if the purchases 
        are expressly included in the work 
        program approved by the legislative 
        commission on Minnesota resources. 
        (b) State Park and Recreation 
        Area Acquisition                                      1,000,000
        This appropriation is from the trust 
        fund to the commissioner of natural 
        resources for acquisition of land 
        within the statutory boundaries of 
        state parks and recreation areas. 
        (c) Local Grants                                        895,000
        This appropriation is from the future 
        resources fund to the commissioner of 
        natural resources to provide matching 
        grants to local units of government for 
        local park and recreation areas; trail 
        linkages between communities, trails, 
        and parks; and at least $100,000 for 
        the conservation partners program as 
        provided in Laws 1995, chapter 220, 
        section 19, subdivision 4, paragraph 
        (e).  In addition to the required work 
        program, grants may not be approved 
        until grant proposals to be funded have 
        been submitted to the legislative 
        commission on Minnesota resources, and 
        the commission has either made a 
        recommendation or allowed 60 days to 
        pass without making a recommendation.  
        The above appropriations are available 
        half for the seven-county metropolitan 
        area and half for outside the 
        metropolitan area.  For the purposes of 
        this paragraph, match includes nonstate 
        contributions in either cash or in-kind.
        (d) Chippewa County Regional Trail                      410,000
        This appropriation is to the 
        commissioner of natural resources from 
        the future resources fund for a grant 
        to the city of Montevideo for 
        acquisition and development of the 
        Chippewa county regional trail. 
           Sec. 27.  Laws 1996, chapter 463, section 7, subdivision 9, 
        is amended to read: 
        Subd. 9.  Metro Regional Park 
        Rehabilitation, Acquisition, and
        Development                                 9,400,000 9,550,000
        This appropriation is for payment by 
        the commissioner of natural resources 
        to the metropolitan council.  The 
        commissioner shall pay the amount on a 
        reimbursement basis to the metropolitan 
        council upon receipt of a certified 
        copy of a council resolution requesting 
        payment.  The appropriation must be 
        used to pay the cost of rehabilitation, 
        acquisition, and development by the 
        council and local government units of 
        regional recreational open-space lands 
        in accordance with the council's policy 
        plan as provided in Minnesota Statutes, 
        section 473.315.  The metropolitan 
        council, in cooperation with the city 
        of St. Paul, must develop a plan and 
        fund the restoration of oak savannah 
        remnants in two regional parks in 
        Ramsey county.  This appropriation must 
        not be used for research, planning, 
        administration, or tax equivalency 
        payments.  This appropriation may be 
        used for the purchase of homes only if 
        the purchases are included in the work 
        program required by law and they are 
        expressly approved by the legislative 
        commission on Minnesota resources. 
           Sec. 28.  Laws 1996, chapter 463, section 13, subdivision 
        2, is amended to read:  
        Subd. 2.  Capital Asset
        Preservation and Replacement (CAPRA)                 12,000,000
        To be spent in accordance with 
        Minnesota Statutes, section 16A.632. 
        Up to $900,000 of the money 
        appropriated in this subdivision may be 
        used as necessary to renovate the 
        Governor's Residence in St. Paul for 
        life safety, code, security, and 
        ancillary storage facility improvements.
        Up to $600,000 of the money 
        appropriated in this subdivision may be 
        used to continue the electrical utility 
        infrastructure conversion of the 
        primary feeder loop system to a primary 
        selective system by rerouting the 
        system around the capitol. 
        In accordance with Minnesota Statutes, 
        section 16B.31, subdivision 6, the 
        commissioner of administration shall 
        identify the condition and suitability 
        of all major state buildings and office 
        space and report the commissioner's 
        findings by June 30, 1997, to the 
        chairs of the senate committee on 
        finance and the house of 
        representatives committees on ways and 
        means and on capital investment.  The 
        report must identify the useful life, 
        the current condition, the estimated 
        cost of currently needed repairs, and 
        the suitability for the current state 
        purposes of all major state-owned 
        buildings and office space owned or 
        leased by the state.  The legislature 
        intends to use the report in 
        considering future appropriations to 
        the commissioner of administration and 
        to state agencies for asset 
        preservation.  
           Sec. 29.  Laws 1996, chapter 463, section 13, subdivision 
        4, is amended to read:  
        Subd. 4.  Renovate Capitol
        Building                                            7,400,000
                                                              8,435,000
        $4,800,000 is to predesign, design, and 
        reconstruct the northeast terrace and 
        predesign and design the northwest 
        terraces terrace of the capitol 
        building.  
        $1,400,000 is to renovate the lantern 
        and related structures on the capitol 
        dome. 
        $1,200,000 $2,235,000 is to predesign, 
        design, construct, furnish, and equip 
        the renovation of the capitol cafeteria 
        including full-service kitchen and 
        related spaces.  The appropriation is 
        available after review and comment by 
        the council on disability. 
        The balance of the appropriation in 
        this subdivision that is not needed for 
        the projects specified may be used for 
        other structural stabilization projects 
        at the capitol or to improve the 
        capitol mall. 
           Sec. 30.  Laws 1996, chapter 463, section 13, subdivision 
        8, is amended to read: 
        Subd. 8.  Revenue Facilities
        Design                                                1,950,000
                                                             74,950,000
        To design, construct, furnish, and 
        equip new revenue department 
        facilities, including parking to 
        accommodate approximately 950 vehicles. 
        $1,450,000 of this appropriation is not 
        available until the report required by 
        subdivision 10 has been completed. 
        Notwithstanding Minnesota Statutes, 
        section 15.50, subdivision 2, paragraph 
        (e), plans for the building need not be 
        selected through a design competition. 
        The plans for the facilities for the 
        department of revenue may provide for 
        two or more buildings in separate 
        locations.  The principal 
        administrative offices of the 
        department must be located in or near 
        the capitol area.  Other operations may 
        be located outside of the capitol area 
        as appropriate and conveniently 
        situated for efficient operations of 
        the department. 
        The design development phase of the 
        revenue department building project 
        must include an analysis of the cost, 
        benefit, and operational feasibility of 
        relocating revenue department jobs to 
        areas in greater Minnesota. 
        The commissioner of administration may 
        use a design-build method of project 
        development and construction for this 
        project.  The commissioner may award a 
        design-build contract on the basis of 
        requests for proposals or requests for 
        qualifications without bids. 
        The building must be located within an 
        eight-mile radius of the capitol, 
        providing approximately 315,000 net 
        square feet, and at a cost not to 
        exceed $74,950,000, including the 
        parking ramp, inflation adjustments, 
        and other contingencies.  
        Notwithstanding Minnesota Statutes, 
        section 15.50, subdivision 2, 
        paragraphs (c) and (e), if the building 
        is constructed within the capitol area 
        as defined in paragraph (a) of that 
        subdivision, plans for the building 
        need not conform to the comprehensive 
        plan for the area and need not be 
        selected through a design competition. 
        As an alternative to constructing a new 
        building, the commissioner of 
        administration may use this 
        appropriation to purchase the building 
        currently leased and occupied by the 
        department of revenue as its 
        headquarters at 10 River Park Place.  
        This appropriation may not be used to 
        remodel or renovate 10 River Park 
        Place.  Any appropriation for those 
        purposes should be requested by the 
        commissioner of administration as part 
        of the 1998 capital budget. 
        If the commissioner of administration 
        determines that it is not feasible to 
        construct the new facilities within the 
        capitol area within the time allowed 
        and within the limits of this 
        appropriation, and that the 
        commissioner is not able to purchase 
        the building and land leased by the 
        state at 10 River Park Place for 
        $23,000,000 or less, the commissioner 
        may locate the new facilities within 
        the city of Inver Grove Heights.  If 
        the facilities are located within the 
        city of Inver Grove Heights, this 
        appropriation is reduced to $46,000,000.
           Sec. 31.  Laws 1996, chapter 463, section 14, subdivision 
        7, is amended to read: 
        Subd. 7.  Mariucci Ice 
        and Tennis Facility                                   7,000,000
        To the board of regents of the 
        University of Minnesota to predesign, 
        design, construct, and equip a new 
        facility adjacent to Mariucci arena on 
        the Minneapolis campus to include an 
        ice sheet one or more ice sheets and 
        tennis courts. 
           Sec. 32.  Laws 1996, chapter 463, section 22, subdivision 
        8, is amended to read: 
        Subd. 8.  Pickwick Mill                                  150,000 
        For a grant to Winona county for 
        renovation of the historic Pickwick 
        Mill. 
        This appropriation is from the 
        Minnesota future resources fund and is 
        available until June 30, 1999. 
           Sec. 33.  Laws 1996, chapter 463, section 24, subdivision 
        8, is amended to read: 
        Subd. 8.  Lyn/Lake/Jungle 
        Theatre Performing Arts Center                          335,000
        For a grant to Hennepin county to 
        design, construct, furnish, and equip 
        the Lyn/Lake/Jungle Theatre community 
        performing arts center to provide a 
        community theater and rehearsal space, 
        offices, classrooms and meeting rooms 
        for performing arts organizations, arts 
        education, and arts development and 
        outreach in a formerly tax-forfeited 
        structure in Hennepin county.  Hennepin 
        county may contract with a nonprofit 
        organization for operation of the 
        center, subject to Minnesota Statutes, 
        section 16A.695.  This appropriation is 
        not available until the commissioner 
        has determined that at least $1,630,000 
        has been committed by nonstate sources 
        to complete the Lyn/Lake/Jungle Theatre 
        main stage in a nearby building owned 
        and operated by the Jungle Theater and 
        that $100,000 has been committed by 
        nonstate sources to complete the 
        community performing arts center.  This 
        is the final state appropriation for 
        this project.  
           Sec. 34.  Laws 1997, chapter 202, article 1, section 35, if 
        enacted, is amended to read: 
        Sec. 35.  BOND SALE SCHEDULE 
        The commissioner of finance shall 
        schedule the sale of state general 
        obligation bonds so that, during the 
        biennium ending June 30, 1999, no more 
        than $545,457,000 $560,457,000 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. 35.  [REPEALER.] 
           Laws 1994, chapter 643, section 19, subdivision 11; Laws 
        1996, chapter 463, section 7, subdivision 26; and Laws 1997, 
        chapter 200, article 2, section 5, are repealed. 
           Sec. 36.  [EFFECTIVE DATE.] 
           This act is effective the day following final enactment. 
           Presented to the governor May 29, 1997 
           Signed by the governor June 2, 1997, 2:04 p.m.