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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 404-H.F.No. 3843 
                  An act relating to public administration; authorizing 
                  spending for public purposes; authorizing spending to 
                  acquire and to better public land and buildings and 
                  other public improvements of a capital nature with 
                  certain conditions; authorizing state bonds; 
                  appropriating money; amending Minnesota Statutes 1996, 
                  sections 16A.105; 16A.11, subdivision 3a, and by 
                  adding a subdivision; 16A.501; 16B.30; 85.019, 
                  subdivision 4a; 103F.725, subdivision 1a; 116.16, 
                  subdivision 5; 116.182, subdivision 1, and by adding a 
                  subdivision; 446A.072, subdivisions 2, 4, and by 
                  adding a subdivision; 473.39, by adding a subdivision; 
                  473.399; 473.3994, subdivisions 5, 10, and 12; and 
                  473.3998; Minnesota Statutes 1997 Supplement, sections 
                  16A.641, subdivision 4; 16B.335, subdivision 1; 
                  116.18, subdivision 3c; 124C.498, subdivision 2; 
                  268.917; and 462A.202, subdivision 3a; Laws 1963, 
                  chapter 305, sections 1, 2, 3, 4, 5, 7, 8, 9, 10, and 
                  11; Laws 1986, chapter 396, section 2, subdivision 1, 
                  as amended; Laws 1990, chapter 610, article 1, section 
                  16, subdivision 4; Laws 1994, chapter 643, section 2, 
                  subdivision 13; Laws 1996, chapter 463, sections 13, 
                  subdivision 4, as amended, 14, subdivisions 2 and 6, 
                  and 22, subdivision 7; and Laws 1997, chapter 202, 
                  article 1, section 35, as amended; proposing coding 
                  for new law in Minnesota Statutes, chapter 116J; 
                  repealing Minnesota Statutes 1996, section 473.3994, 
                  subdivision 11; Minnesota Statutes 1997 Supplement, 
                  section 446A.072, subdivision 4a; Laws 1985, First 
                  Special Session chapter 15, section 36; and Laws 1986, 
                  chapter 396, section 2, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
        Section 1.  [CAPITAL IMPROVEMENT 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 for 
        public purposes including to acquire and to better public land 
        and buildings and other public improvements of a capital nature, 
        as specified in this act.  Unless otherwise specified, the 
        appropriations in this act are available until the project is 
        completed or abandoned. 
                                    SUMMARY 
        UNIVERSITY OF MINNESOTA                          $  138,300,000 
        MINNESOTA STATE COLLEGES AND UNIVERSITIES           143,080,000 
        CENTER FOR ARTS EDUCATION                             1,395,000 
        CHILDREN, FAMILIES, AND LEARNING                     62,405,000 
        FARIBAULT RESIDENTIAL ACADEMIES                       9,225,000 
        NATURAL RESOURCES                                   130,251,000 
        OFFICE OF ENVIRONMENTAL ASSISTANCE                    3,500,000 
        PUBLIC FACILITIES AUTHORITY                          44,050,000 
        BOARD OF WATER AND SOIL RESOURCES                    19,800,000 
        AGRICULTURE                                             500,000 
        ZOOLOGICAL GARDENS                                    1,750,000 
        ADMINISTRATION                                       46,250,000 
        CAPITOL AREA ARCHITECTURAL AND
        PLANNING BOARD                                        9,544,000 
        AMATEUR SPORTS COMMISSION                            11,020,000 
        MILITARY AFFAIRS                                      1,230,000 
        TRANSPORTATION                                       93,300,000 
        HUMAN SERVICES                                       19,975,000 
        VETERANS HOMES BOARD                                 12,055,000 
        CORRECTIONS                                          14,185,000 
        PUBLIC SAFETY                                         2,230,000 
        INDIAN AFFAIRS COUNCIL                                1,700,000 
        TRADE AND ECONOMIC DEVELOPMENT                      225,680,000 
        HOUSING FINANCE AGENCY                                6,000,000 
        MINNESOTA HISTORICAL SOCIETY                         13,110,000 
        BOND SALE EXPENSES                                      500,000 
        CANCELLATIONS                                       (11,993,000) 
        TOTAL                                           $   999,042,000 
        Bond Proceeds Fund 
        (General Fund Debt Service)                         438,184,000
        Bond Proceeds Fund  
        (User Financed Debt Service)                         25,611,000
        Transportation Fund                                  34,000,000 
        General Fund                                        500,047,000 
        Trunk Highway Fund                                    1,200,000 
                                                         APPROPRIATIONS
                                                         $ 
        Sec. 2.  UNIVERSITY OF MINNESOTA 
        Subdivision 1.  To the board of regents
        of the University of Minnesota for the 
        purposes specified in this section                 138,300,000 
        Subd. 2.  Higher Education Asset
        Preservation and Replacement                         4,000,000 
        To be spent in accordance with 
        Minnesota Statutes, section 135A.046.  
        This appropriation is from the general 
        fund. 
        Subd. 3.  Twin Cities - Minneapolis                           
        (a) Amundson Hall                                    1,250,000
        To construct, furnish, and equip an 
        addition for the Chemical Engineering 
        and Materials Science program and 
        remodel existing space.  This 
        appropriation is contingent upon 
        $2,488,000 of nonstate matching money.  
        The nonstate money is in lieu of 
        one-third debt service payments. 
        (b) Art Building                                       730,000 
        To design and prepare construction 
        drawings for the construction of a new 
        facility. 
        This appropriation is from the general 
        fund. 
        (c) Digital and Utility Infrastructure               3,500,000 
        To predesign, design, and complete the 
        following projects: 
        (1) $1,000,000 is to replace and 
        upgrade the information technology 
        infrastructure serving Mall District 
        buildings.  This appropriation is from 
        the general fund. 
        (2) $2,500,000 is to separate the 
        combined storm sewer and sanitary sewer 
        systems and for air conditioning Mall 
        District buildings using chilled water 
        clusters. 
        (d) Folwell Hall Renovation                             690,000 
        To design the renovation and upgrading 
        of classrooms. 
        (e) Walter Digital
        Technology Center/Science
        and Engineering Library                              53,600,000
        To design, renovate, furnish, and equip 
        the Walter Digital Technology 
        Center/Science and Engineering Library 
        on the Minneapolis campus.  
        Subd. 4.  Twin Cities - St. Paul                               
        (a) Gortner and Snyder Halls                          4,000,000
        To design and remodel selected biology 
        laboratories.  
        (b) Greenhouse Renovation and Replacement               900,000 
        To design for upgrading plant growth 
        facilities for teaching and research.  
        The project will renovate or replace 
        obsolete greenhouse and headhouse space 
        and construct a biocontainment facility 
        to support the teaching and research 
        activities of both the university and 
        the Minnesota department of agriculture.
        (c) Peters Hall, Phase II                             6,950,000 
        To renovate, furnish, and equip 
        classroom, research, and office space. 
        Subd. 5.  Use of Facilities
        The board of regents is requested to 
        use the molecular cellular biology 
        building and the remodeled Gortner and 
        Snyder Hall laboratories in a manner 
        that increases the interdisciplinary 
        opportunities for collaborative 
        research to the benefit of plant, 
        animal, and human health applications, 
        and ensures that agriculture research 
        and outreach is enhanced through the 
        use of these facilities, programs, and 
        services. 
        Subd. 6.  Women's Athletics Fields 
        and Facilities                                        3,000,000
        To design and rebuild the soccer 
        complex on the St. Paul campus, design 
        and rebuild the softball complex on the 
        Minneapolis campus, and design and 
        construct women's athletics office 
        space in the Bierman complex on the 
        Minneapolis campus.  
        Subd. 7.  Crookston   
        (a) Facility Improvements                             3,800,000 
        To design, construct, furnish, and 
        equip four projects: 
        (1) Early Child Development Center new 
        construction; 
        (2) Knutson Hall remodeling; 
        (3) Owen Hall Addition remodeling; and 
        (4) University Teaching and Outreach 
        Center stable expansion. 
        (b) Kiehle Building Renovation
        and Addition                                            180,000
        To predesign and design the Kiehle 
        building renovation and addition on the 
        Crookston campus. 
        Subd. 8.  Duluth     
        (a) Library                                          22,300,000 
        To construct, furnish, and equip a new 
        library. 
        (b) Academic Space Renovation                           200,000 
        To design the renovation of vacated 
        academic and laboratory space on the 
        Duluth campus in Heller Hall, MW 
        Alworth Hall, Business and Economics, 
        and the existing library building. 
        (c) Glensheen Mansion                                   600,000
        For capital repair, reconstruction, or 
        replacement of the foundation and 
        heating, ventilating, and air 
        conditioning system of the Glensheen 
        Mansion, subject to the requirements of 
        Minnesota Statutes, section 16A.695. 
        This appropriation is from the general 
        fund. 
        Subd. 9.  Morris                                    28,200,000 
        To construct, furnish, and equip 
        existing space and the additions and to 
        demolish the physical education annex.  
        This project consists of four 
        components: 
        (1) an addition to the existing science 
        building; 
        (2) renovation of the science 
        auditorium/lecture hall; 
        (3) expansion of the heating plant; and 
        (4) an addition to the Physical 
        Education Center in partnership with 
        the Morris community.  
        Subd. 10.  Agricultural Experiment
        Stations                                              4,400,000
        To design, construct, furnish, and 
        equip the following experiment station 
        projects: 
        (1) $2,600,000 for swine research 
        facilities at Morris and Waseca.  
        $200,000 of this appropriation is for a 
        low input systems research facility at 
        Morris and $200,000 is for an extensive 
        confinement (including Swedish deep 
        bedded system) research facility at 
        Morris; 
        (2) $700,000 for the 
        Arboretum/Horticultural Research Center 
        laboratory in Victoria; 
        (3) $800,000 for Cloquet Forestry 
        Center dormitory remodeling; and 
        (4) $300,000 for Grand Rapids 
        Administration Building addition. 
        In addition, the university shall 
        contribute $833,000 of agency operating 
        funds towards construction of these 
        projects. 
        Subd. 11.  Debt Service Responsibilities
        (a) The projects in this section shall 
        not be assessed one-third debt service 
        if the board of regents completes the 
        following projects by July 1, 2002: 
        (1) at a cost estimated at $35,000,000, 
        design a new Molecular and Cellular 
        Biology Building, construct the 
        facility's shell, and demolish all or 
        part of the existing 
        Jackson-Owre-Millard-Lyon Hall complex; 
        (2) at a cost estimated at $14,600,000, 
        design, construct, furnish, and equip 
        an addition to the Architecture 
        Building; 
        (3) at a cost estimated at $9,000,000, 
        renovate Murphy Hall; and 
        (4) at a cost estimated at $9,900,000, 
        renovate Ford Hall. 
        (b) If the board of regents does not 
        complete the projects specified in 
        paragraph (a) by July 1, 2002, the 
        board shall reimburse the state for 
        one-third of the debt service 
        previously paid and pay one-third of 
        the debt service accruing after July 1, 
        2002, on state bonds sold to finance 
        appropriations in this section except 
        those in subdivision 3, paragraph (a) 
        and paragraph (c), clause (2).  After 
        each sale of general obligation bonds, 
        the commissioner of finance shall 
        notify the board of regents of the 
        amounts for which it is assessed each 
        year for the life of the bonds. 
        (c) The commissioner shall reduce the 
        board's assessment each year by 
        one-third of the net income from 
        investment of general obligation bond 
        proceeds in proportion to the amount of 
        principal and interest otherwise 
        required to be paid by the board.  The 
        board shall pay its resulting net 
        assessment to the commissioner of 
        finance by December 1 each year.  If 
        the board fails to make a payment when 
        due, the commissioner of finance shall 
        reduce allotments for appropriations 
        from the general fund otherwise 
        available to the board and apply the 
        amount of the reduction to cover the 
        missed debt service payment.  The 
        commissioner of finance shall credit 
        the payments received from the board to 
        the bond debt service account in the 
        state bond fund each December 1 before 
        money is transferred from the general 
        fund under Minnesota Statutes, section 
        16A.641, subdivision 10. 
        Subd. 12.  Separate Account                  
        The appropriations in this section are 
        conditioned on the board of regents 
        adopting a resolution establishing an 
        account for regular repair and 
        maintenance at the university, and into 
        which appropriations from fiscal years 
        1999, 2000, 2001, and 2002 could be 
        deposited. 
        Sec. 3.  MINNESOTA STATE COLLEGES 
        AND UNIVERSITIES
        Subdivision 1.  To the board of trustees 
        of the Minnesota state colleges and 
        universities for the purposes specified in 
        this section                                        143,080,000
        Subd. 2.  Higher Education Asset
        Preservation and Replacement                         43,000,000
        This appropriation is for the purposes 
        specified in Minnesota Statutes, 
        section 135A.046.  This appropriation 
        is from the general fund. 
        $31,615,000 of this appropriation is 
        for code compliance, including health 
        and safety, ADA requirements, hazardous 
        material abatement, air quality 
        improvement, building or infrastructure 
        repairs to preserve existing buildings 
        systemwide.  The chancellor shall 
        determine project priorities as 
        appropriate based on need.  Priorities 
        may include but are not limited to:  
        Anoka-Ramsey Community College 
        ($1,080,000); Riverland Community 
        College ($1,339,000); St. Cloud 
        Technical College ($1,378,000); 
        Northland Community and Technical 
        College ($1,546,000); Minneapolis 
        Community and Technical College 
        ($2,735,000); St. Cloud State 
        University ($1,900,000); Southwest 
        State University ($1,390,000); Metro 
        State University ($1,148,000); Bemidji 
        State University ($1,088,000); Mankato 
        State University ($5,322,000); and 
        Moorhead State University ($3,556,000). 
        $11,385,000 of this appropriation is 
        for facilities replacement, as follows: 
        (1) $1,720,000 to construct a 
        replacement classroom for the Staples 
        West Campus of Central Lakes Technical 
        College; 
        (2) $500,000 to design and construct an 
        electrical distribution tunnel for St. 
        Cloud State University; 
        (3) $305,000 to design and construct a 
        Chiller Plant for Bemidji State 
        University; 
        (4) $5,030,000 to design, construct, 
        furnish, and equip a renovation of 
        Nemzek Field House at Moorhead State 
        University; 
        (5) $3,145,000 to design, construct, 
        furnish, and equip a renovation of 
        Dille Center for the Arts at Moorhead 
        State University; and 
        (6) $685,000 to design, construct, 
        furnish, and equip a renovation of 
        Livingston Lord Library at Moorhead 
        State University. 
        Subd. 3.  Master Facilities Plans                     1,400,000 
        Complete and update college and 
        university master facilities plans.  Of 
        this appropriation, up to $400,000 is 
        for Minnesota West Technical and 
        Community College and Northwest 
        Technical College.  This appropriation 
        is from the general fund. 
        Subd. 4.  Anoka Hennepin 
        Technical College and Century Community 
        and Technical College                                   800,000 
        To prepare regional academic and 
        facilities master plans and predesign 
        the facility needs for each college.  
        The board is not restricted to current 
        buildings in developing the plan.  
        Anoka Hennepin College plans must be 
        for facilities within Anoka county. 
        Subd. 5.  Bemidji State University
        and Northwest Technical College, Bemidji              1,000,000
        To predesign and design facilities 
        required to colocate all programs of 
        the technical college and the state 
        university's industrial technology and 
        nursing programs.  The board of 
        trustees may consider, among other 
        options, the remodeling of the former 
        Bemidji high school.  The board may 
        acquire the former Bemidji high school 
        and may convey the former technical 
        college to the school district.  
        Minnesota Statutes, sections 94.09 to 
        94.16 and 103F.535 do not apply to 
        these real estate transactions. 
        Subd. 6.  Century Community 
        and Technical College                                 3,200,000
        To design and construct an all-season 
        footbridge connecting Century's two 
        campuses, traffic control measures, and 
        reroute campus traffic. 
        The board and the department of 
        transportation shall cooperate in the 
        design and construction of this project.
        Subd. 7.  Fond du Lac Community 
        and Tribal College 
        The board of trustees may design, 
        through construction documents, a 
        classroom addition using money from 
        nonstate sources.  The college is 
        encouraged to seek additional nonstate 
        matching money to offset a portion of 
        the cost of construction.  The total 
        cost to construct, furnish, and equip 
        the classroom addition must not exceed 
        $7,500,000. 
        Subd. 8.  Hibbing Community 
        and Technical College                                16,000,000
        To construct a new facility, adjacent 
        to the community college, for technical 
        programs, administrative services, and 
        customized training.  Upon completion 
        of this facility, the college must 
        vacate all classroom buildings of the 
        former technical college.  The city 
        shall provide sewer and water, and a 
        perimeter street.  The board of 
        trustees shall dispose of the former 
        technical college land and classroom 
        buildings.  The proceeds may be 
        retained by the board pursuant to 
        Minnesota Statutes, section 136F.71, 
        subdivision 1.  Minnesota Statutes, 
        sections 94.09 to 94.16 and 103F.535 do 
        not apply to these real estate 
        transactions. 
        Subd. 9.  Inver Hills Community College              11,000,000
        To design and construct a new 
        instructional building and renovate the 
        existing science building.  The new 
        building will include space for the 
        emergency health services program, 
        chemistry and biology laboratories, an 
        interactive television classroom, 
        general instruction classrooms, 
        activities/fitness rooms, faculty 
        offices, small group meeting rooms, and 
        conference rooms.  Up to $600,000 may 
        be spent for the new entrance to the 
        college. 
        Subd. 10.  Mankato State University                  11,000,000 
        (a) This money is for:  (1) the design 
        of Phase I and Phase II of the project 
        to renovate the indoor and outdoor 
        athletic facilities, and (2) for 
        construction and renovation work in 
        Myers Field House, Pennington 
        Foundation Building and tennis courts; 
        add required chiller capacity at the 
        utility plant; and selected remodeling 
        in Otto Arena, Highland Center, 
        Highland North, Blakeslee Stadium, and 
        outdoor track.  Phase II of the project 
        consists of completion of the remaining 
        construction and renovation work in 
        Highland Center, Highland North, Otto 
        Arena, Blakeslee Stadium, and the 
        outdoor track.  Money for Phase II of 
        this project is not included in this 
        appropriation. 
        (b) Notwithstanding Laws 1997, chapter 
        183, article 3, section 37, subdivision 
        6, the Mankato state university 
        foundation may build a black box 
        theater on the Mankato state university 
        campus at a site approved by the 
        board.  Prior to the beginning of 
        construction, the board must approve 
        the design and the foundation must 
        agree to donate the theater to the 
        state.  Title to the building shall 
        pass to the state immediately upon 
        donation. 
        Subd. 11.  Mesabi Community and
        Technical College                                       500,000
        To predesign and design a new learning 
        resource center and remodel classrooms, 
        computer labs, and offices at the 
        Virginia campus. 
        Subd. 12.  Metropolitan State University              1,000,000 
        To design a new library and information 
        access center on the university's St. 
        Paul campus, including space for 
        collections of the St. Paul public 
        library and community library services. 
        Subd. 13.  Minneapolis Community
        and Technical College                                   500,000
        To design an addition and remodel the 
        existing library and other space.  The 
        addition will include a library and 
        media center and an instructional 
        technology center.  The remodeled space 
        will include classrooms, laboratories, 
        faculty offices, student services, and 
        interactive television classrooms. 
        Subd. 14.  Normandale Community College                 240,000 
        To predesign and design the renovation 
        or new construction of science 
        facilities. 
        Subd. 15.  North Hennepin Community
        College, Phase One                                   10,400,000 
        To predesign, design, construct, and 
        equip an addition and remodel existing 
        facilities for a science center.  This 
        appropriation is also to predesign and 
        design phase two to remodel and 
        renovate classroom and office space. 
        Subd. 16.  Northland Community
        and Technical College                                 4,000,000
        To design and construct an addition and 
        remodel existing space for student 
        services, women's center, bookstore, 
        customized training, administrative 
        services, and classrooms. 
        Subd. 17.  Pine Technical College                     1,700,000 
        To predesign, design, and renovate for 
        a telecommunications/media/technology 
        center, student services, 
        administrative services, classrooms, 
        and a regional economic development 
        center. 
        Subd. 18.  Red Wing/Winona Technical College          1,500,000
        To design and construct a new classroom 
        and garage facility for the truck 
        driving program at the Winona campus.  
        The facility may be separate from the 
        main campus building, as appropriate to 
        accommodate safety, traffic, and 
        programmatic concerns. 
        Subd. 19.  Ridgewater Community     
        and Technical College                                 7,600,000
        To design and construct a new addition 
        and remodel existing facilities at the 
        Hutchinson campus for nondestructive 
        testing facilities, a library and media 
        resource center, student support 
        services, and child care center.  
        Subd. 20.  Riverland Community and 
        Technical College                                     1,000,000
        (a) To design, construct, and remodel 
        the Austin campus, including remodeling 
        for student services and health science 
        programs, and reconfiguration of 
        building entryways, sidewalks, and 
        roadways to better connect the two 
        separate facilities.  
        (b) The board may enter into an 
        agreement with the city of Austin 
        whereby the city agrees to construct, 
        improve, and maintain a road at city 
        expense that provides access to and 
        improves the safety of the north side 
        of the Austin campus.  In exchange for 
        the city's services, the board may 
        convey title to the roadway and a 
        parcel of land not to exceed five acres 
        that is not needed by the college for 
        education purposes.  The land shall be 
        used to promote a technology center 
        that is compatible with the college's 
        education mission.  City plans and 
        actions for the land shall be developed 
        in consultation with the college and 
        the board.  Minnesota Statutes, 
        sections 94.09 to 94.16, and 103F.535, 
        do not apply to these real estate 
        transactions. 
        Subd. 21.  Rochester Center                           6,000,000 
        To predesign, design, and renovate 
        existing facilities and install 
        telecommunications infrastructure 
        improvements to create an instructional 
        development and digital media center to 
        improve education in southeastern 
        Minnesota.  This appropriation is from 
        the general fund and will be 
        supplemented by an additional 
        $3,237,000 from other sources. 
        Subd. 22.  Rochester Regional 
        Recreation and Sports Center                          5,000,000
        To predesign, design, and construct 
        phase 1 of a regional community 
        recreation and sports activity complex 
        adjacent to the Rochester Center, 
        including a field house, sport and 
        fitness center, aquatics facility, 
        outdoor football and soccer stadium, 
        soccer and baseball fields, and surface 
        parking lots.  This appropriation is 
        not available until the board of 
        trustees has determined that an equal 
        amount has been committed by the city 
        of Rochester.  Operating and management 
        costs shall be shared by the city of 
        Rochester and the Minnesota state 
        colleges and universities in proportion 
        to their relative use of the facility. 
        Subd. 23.  St. Cloud State University
        St. Cloud State University may design 
        and construct a building to house a 
        bookstore and student services, 
        following consultation with the 
        university community, including the 
        student senate and the bookstore 
        committee.  After submitting the design 
        and the financing plan to the board, 
        the board shall submit it to the 
        legislature as provided in Minnesota 
        Statutes, section 16B.335, subdivision 
        2.  
        Subd. 24.  St. Cloud Technical College                1,000,000 
        To design and construct an addition and 
        remodeling of graphic arts and dental 
        space, including classrooms, and design 
        remodeling of most of the remaining 
        space. 
        Subd. 25.  St. Paul Technical College                10,000,000 
        To design, construct, furnish, and 
        equip an addition to the library and 
        learning resource center and renovate 
        existing space for student services, 
        chemical technology laboratory, and to 
        renovate the building control system. 
        Subd. 26.  Southwest State University                    40,000 
        To predesign the renovation of the 
        library.  The renovation will include 
        replacement of HVAC systems and 
        installation of wiring for computer 
        technology.  
        Subd. 27.  Winona State University                      200,000 
        To design the remodeling of Maxwell 
        Library into offices and classrooms. 
        Subd. 28.  Land Acquisition                           5,000,000 
        To acquire real property land adjacent 
        to or near the state college and 
        university campuses.  Of this amount at 
        least $2,500,000 is for Winona State 
        University and $1,000,000 is for St. 
        Cloud State University.  The board of 
        trustees shall report annually to the 
        legislature on purchases made from this 
        appropriation. 
        Subd. 29.  Debt Service
        (a) The board shall pay one-third of 
        the debt service on state bonds sold to 
        finance projects authorized by this 
        section, except for subdivisions 10 and 
        22.  After each sale of general 
        obligation bonds, the commissioner of 
        finance shall notify the board of the 
        amounts assessed for each year for the 
        life of the bonds. 
        (b) The commissioner shall reduce the 
        board's assessment each year by 
        one-third of the net income from 
        investment of general obligation bond 
        proceeds in proportion to the amount of 
        principal and interest otherwise 
        required to be paid by the board.  The 
        board shall pay its resulting net 
        assessment to the commissioner of 
        finance by December 1 each year.  If 
        the board fails to make a payment when 
        due, the commissioner of finance shall 
        reduce allotments for appropriations 
        from the general fund otherwise 
        available to the board and apply the 
        amount of the reduction to cover the 
        missed debt service payment.  The 
        commissioner of finance shall credit 
        the payments received from the board to 
        the bond debt service account in the 
        state bond fund each December 1 before 
        money is transferred from the general 
        fund under Minnesota Statutes, section 
        16A.641, subdivision 10. 
        Subd. 30.  Separate account  
        The appropriations in this section are 
        conditioned on the board of trustees 
        adopting a resolution establishing an 
        account for regular repair and 
        maintenance at the colleges and 
        universities, and into which 
        appropriations from fiscal years 1999, 
        2000, 2001, and 2002 could be deposited.
        Sec. 4.  CENTER FOR ARTS EDUCATION 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                             1,395,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  Administration/Classroom
        Building Renovation                                     780,000
        To design, furnish, equip, and renovate 
        the administrative/classroom building.  
        This project is to include upgrades to 
        building hallways, conversion of a 
        temporary student computer lab to a 
        student commons area, reconfiguration 
        of support and classroom spaces, and 
        partial renovation of the cafeteria 
        food service and seating areas. 
        Subd. 3.  Asset Preservation                            465,000 
        For asset preservation improvements on 
        the campus including, but not limited 
        to, design and construction of 
        sprinkler systems, demolition of the 
        main entry to the 
        administration/classroom building, 
        foundation repairs, reconstruction of 
        campus roads and parking areas, and 
        replacement of deteriorated sidewalks. 
        Subd. 4.  GAIA Building Renovation                      150,000 
        For the partial renovation of spaces 
        currently used for student instruction 
        to spaces that will be utilized for 
        adult professional development and 
        related administrative support services.
        Sec. 5.  CHILDREN, FAMILIES, AND LEARNING 
        Subdivision 1.  To the commissioner of
        children, families, and learning for the
        purposes specified in this section                   62,405,000 
        This appropriation is from the general 
        fund. 
        Subd. 2.  Early Childhood
        Learning Facilities                                   5,000,000
        For grants to state agencies, political 
        subdivisions, Indian tribes, or private 
        nonprofit organizations to construct or 
        rehabilitate facilities for programs 
        under Minnesota Statutes, section 
        268.917.  Facilities financed with 
        these grants may be owned by Indian 
        tribes or private nonprofit 
        organizations. 
        Subd. 3.  Youth Enrichment                            5,000,000 
        (a) For grants to local government 
        units to design, furnish, equip, 
        renovate, replace, or construct parks 
        and recreation facilities and school 
        facilities to provide youth, with 
        preference for youth in grades 4 to 8, 
        with regular enrichment activities 
        during nonschool hours, including after 
        school, evenings, weekends, and school 
        vacation periods, and that will provide 
        equal access and programming for all 
        children.  The buildings or facilities 
        may be leased to nonprofit community 
        organizations, subject to Minnesota 
        Statutes, section 16A.695, for the same 
        purposes.  Enrichment programs include 
        academic enrichment, homework 
        assistance, computer and technology 
        use, arts and cultural activities, 
        clubs, school-to-work and workforce 
        development, athletic, and recreational 
        activities.  Grants must be used to 
        expand the number of children 
        participating in enrichment programs or 
        improve the quality or range of program 
        offerings.  The facilities must be 
        fully available for programming 
        sponsored by nonprofit and community 
        groups serving youth, or school, 
        county, or city programs, for maximum 
        hours after school, evenings, weekends, 
        summers, and other school vacation 
        periods.  Priority must be given to 
        proposals that demonstrate 
        collaborations among private, 
        nonprofit, and public agencies, 
        including regional entities dealing 
        with at-risk youth, and community and 
        parent organizations in arranging for 
        programming, staffing, transportation, 
        and equipment.  All proposals must 
        include an inventory of existing 
        facilities and an assessment of 
        programming needs in the community. 
        (b) $1,000,000 is for enrichment grants 
        within the city of Minneapolis.  
        (c) $2,000,000 is for enrichment grants 
        within the city of St. Paul.  
        (d) $1,000,000 is for enrichment grants 
        in metropolitan statistical areas 
        outside of the cities of Minneapolis 
        and St. Paul.  Priority must be given 
        to school attendance areas with high 
        concentrations of children eligible for 
        free or reduced school lunch and to 
        government units demonstrating a 
        commitment to collaborative youth 
        efforts. 
        (e) $1,000,000 is for enrichment grants 
        for areas outside of metropolitan 
        statistical areas and outside of the 
        cities of Minneapolis and St. Paul.  
        Priority must be given to school 
        attendance areas with high 
        concentrations of children eligible for 
        free or reduced school lunch and to 
        government units demonstrating a 
        commitment to collaborative youth 
        efforts. 
        (f) Each grant must be matched by one 
        dollar from nonstate sources for each 
        two dollars of state money.  In-kind 
        contributions of facilities may be used 
        for the local match.  The value of 
        in-kind contributions must be 
        determined by the commissioner of 
        finance. 
        Subd. 4.  Recreation and Community
        Center Grants                                        10,800,000
        (a) Unless otherwise specifically 
        provided, the commissioner may not make 
        a grant from this appropriation until 
        the commissioner has determined that at 
        least an equal amount has been 
        committed to the project from nonstate 
        sources. 
        (b) The commissioner may not make a 
        grant under this subdivision until the 
        commissioner has determined that, if 
        the center will charge a fee for use of 
        the center's facilities, the plan for 
        operating the center includes free or 
        reduced-rate use of the facilities by 
        individuals and families that have a 
        household income at or below 150 
        percent of the federal poverty income 
        guidelines.  
        (c) The commissioner may not make a 
        grant under this subdivision until the 
        commissioner has determined that the 
        recipient has the ability and a plan to 
        fund the program intended for the 
        facility. 
        (d) Dawson-Boyd Educational       
        and Community Center                     1,000,000
        For a grant to independent school 
        district No. 378, Dawson-Boyd, to 
        design, construct, furnish, and equip 
        an educational and community center. 
        (e) Detroit Lakes Community
        Center                                   1,500,000
        For a grant to the city of Detroit 
        Lakes to design, construct, furnish, 
        and equip the Detroit Lakes Community 
        Center.  
        (f) Granite Falls Area 
        Multipurpose Community Recreation and 
        Education Center                         1,000,000
        For a grant to the city of Granite 
        Falls to design, construct, furnish, 
        and equip a multipurpose community 
        recreation and education building.  
        (g) Hallett Community
        Center, City of Crosby                     300,000
        For a grant to the city of Crosby to 
        design, construct, furnish, and equip 
        the Hallett Community Center.  
        (h) Hastings Municipal Water
        Park                                       500,000
        For a grant to the city of Hastings to 
        design, construct, furnish, and equip a 
        municipal water park.  
        (i) Hermantown Community Indoor 
        Sports and Physical Education Complex    1,000,000
        For a grant to independent school 
        district No. 700, Hermantown, to 
        design, construct, furnish, and equip a 
        community indoor sports and physical 
        education complex with an indoor track. 
        (j) Isle Community Center                1,000,000
        For a grant to independent school 
        district No. 473, Isle, to convert a 
        school building into a community 
        center.  Programs located at the 
        converted facility must include the 
        alternative education program, early 
        childhood family education programs, 
        centralized school district kitchen 
        facilities, and other community 
        programs.  
        (k) Lake Crystal Area
        Recreation Center                        1,500,000
        For a grant to the city of Lake Crystal 
        to design, construct, furnish, and 
        equip the Lake Crystal Area Recreation 
        Center. 
        (l) Proctor Community
        Activity Center                          1,000,000
        For a grant to the city of Proctor to 
        design, construct, furnish, and equip a 
        city community activity center designed 
        to provide facilities for city 
        government, library, arts, museum, and 
        other public functions.  
        (m) Redwood Valley Multipurpose   
        Education and Community Center           1,000,000
        For a grant to independent school 
        district No. 2758, Redwood Falls, to 
        design, construct, furnish, and equip a 
        multipurpose education and community 
        center to be constructed and operated 
        under a joint powers agreement with the 
        city of Redwood Falls.  
        The center must provide:  (1) expanded 
        physical education curriculum for 
        Redwood Valley students; (2) a latchkey 
        program and an after-school program for 
        at-risk youth; (3) expanded healthy 
        lifestyle community education and 
        recreation programs for all age groups 
        in the community; and (4) community 
        conference and meeting facilities.  
        (n) Windom Area Multipurpose 
        Center                                   1,000,000
        For a grant to the city of Windom to 
        design, construct, furnish, and equip a 
        multipurpose center. 
        Subd. 5.  Metropolitan Magnet Schools                22,200,000 
        For awarding metropolitan magnet school 
        grants to groups of qualified 
        metropolitan school districts under 
        Minnesota Statutes, section 124C.498.  
        $1,900,000 is for the completion of the 
        Downtown Integration magnet school in 
        Minneapolis. 
        $3,800,000 is for planning, design, 
        acquisition of land, architectural 
        fees, and engineering fees for the East 
        Metropolitan Integration magnet school 
        in the East Metropolitan area.  Of that 
        amount, $2,800,000 is for land 
        acquisition.  
        $14,500,000 is for the construction of 
        the Metropolitan Integration magnet 
        school in Robbinsdale. 
        $2,000,000 is for the Southwest 
        Metropolitan Integration magnet school 
        in Edina. 
        Subd. 6.  Community Schools
        Partnership, St. Paul                                14,030,000
        For a grant to independent school 
        district No. 625 to acquire and better 
        achievement-plus facilities. 
        (a) $2,180,000 is to remodel and 
        renovate the Monroe community school 
        and $2,400,000 is to remodel and 
        renovate the Dayton's Bluff elementary 
        school.  Neither of these two 
        appropriations is available until the 
        commissioner has determined that an 
        amount equal to the total of the two 
        has been committed from nonstate 
        sources to either or both of the 
        projects.  Any amounts raised in excess 
        of the amount needed as match for these 
        two projects may be used to satisfy the 
        match required for the project in 
        paragraph (b). 
        (b) $9,450,000 is to acquire land for, 
        design, construct, furnish, and equip a 
        new achievement-plus facility.  This 
        appropriation is not available until 
        the commissioner has determined that 
        the following amounts have been 
        committed to the project: 
        (1) $940,000 is available upon receipt 
        of a commitment for an equal amount. 
        (2) $2,680,000 is available upon 
        receipt of a commitment for an equal 
        amount. 
        (3) $5,830,000 is available upon 
        receipt of a commitment for an equal 
        amount. 
        Subd. 7.  Fridley Middle School 
        Boiler and Windows                                       90,000
        For a grant to independent school 
        district No. 14, Fridley, for a new 
        boiler and new exterior windows at 
        Central Middle School.  This 
        appropriation is from the general fund. 
        Subd. 8.  School Building Accessibility 
        Grants                                                1,000,000
        For school building accessibility 
        grants under Minnesota Statutes, 
        sections 124C.71 to 124C.74. 
        Subd. 9.  Mississippi Education Center                 1,400,000 
        For a grant to independent school 
        district No. 318, Grand Rapids, to 
        design and construct a new library in 
        Grand Rapids.  This appropriation is 
        not available until the commissioner 
        determines that $4,820,000 has been 
        committed from nonstate sources. 
        Subd. 10.  Library Accessibility
        Grants                                                1,500,000
        For library accessibility grants under 
        Minnesota Statutes, section 134.45. 
        Subd. 11.  McLeod West Interdistrict 
        Cooperative                                             500,000
        For a grant to the McLeod West 
        Interdistrict Cooperative, made up of 
        independent school district Nos. 421, 
        Brownton, and 426, Stewart, to design 
        and acquire land for a new 
        prekindergarten through grade 12 
        educational facility.  
        Subd. 12.  Little Falls Carnegie
        Library ADA Grant                                       500,000
        For a grant to the city of Little Falls 
        for design and construction of capital 
        improvements for handicapped 
        accessibility to the Little Falls 
        Carnegie library.  This appropriation 
        is not available until the commissioner 
        determines that $500,000 has been 
        committed from nonstate sources. 
        Subd. 13.  Minnesota Lake                               385,000 
        For a grant to the fiscal agent for the 
        public school building in Minnesota 
        Lake for repair and improved energy 
        conservation. 
        Sec. 6.  RESIDENTIAL ACADEMIES AT FARIBAULT 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                             9,225,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  Asset Preservation                            725,000 
        For asset preservation improvements on 
        both campuses at the Faribault 
        residential academies including, but 
        not limited to, asbestos removal and 
        replacement of roofs, windows, fire 
        protection systems, and sidewalks. 
        Subd. 3.  Tate Hall Renovation                        4,000,000 
        To design, remodel, furnish, and equip 
        Tate Hall on the campus of the 
        Minnesota State Academy for the Deaf.  
        This project is to include asset 
        preservation improvements, installation 
        of a ventilation and humidity control 
        system, remodeling to expand bathroom 
        facilities, and renovation of new space 
        for a home living skills center. 
        Subd. 4.  Lysen Expansion
        and Renovation                                        4,500,000
        To design, construct, furnish, and 
        equip an expansion and renovation of 
        the Lysen learning building on the 
        campus of the Minnesota State Academy 
        for the Blind.  This project is to 
        include expansion or remodeling of 
        classrooms, offices, recreation areas, 
        and related spaces in this building. 
        Sec. 7.  NATURAL RESOURCES 
        Subdivision 1.  To the 
        commissioner of natural resources 
        for the purposes specified
        in this section                                     130,251,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  Office Facility
        Consolidation                                         7,391,000
        To acquire land, design, construct, 
        furnish, and equip offices and service 
        facilities at consolidated office sites 
        in Tower and Windom. 
        Subd. 3.  Statewide Asset Preservation
        and State Park and Recreation
        Area Building Rehabilitation                          6,500,000
        For repair and renovation of the 
        department of natural resources land, 
        buildings, or other improvements of a 
        capital nature throughout the state; 
        and to design, repair, rehabilitate, 
        construct, or add to state park 
        buildings throughout the state, 
        according to the management plan 
        required in Minnesota Statutes, chapter 
        86A.  The commissioner shall determine 
        project priorities as appropriate based 
        upon need. 
        Subd. 4.  State Park and Recreation
        Area Building Development                             5,535,000
        To design, construct, furnish, and 
        equip new buildings and associated 
        utilities in the state park system, 
        according to the management plan 
        required in Minnesota Statutes, chapter 
        86A.  
        Subd. 5.  State Park and Recreation
        Area Betterment and Rehabilitation                    2,750,000
        To upgrade, repair, or rehabilitate 
        improvements of a capital nature at 
        state park and recreation area 
        facilities throughout the state, 
        including, but not limited to, resource 
        management projects, trail 
        rehabilitation, campground 
        rehabilitation, and road and bridge 
        repair.  The commissioner shall 
        determine project priorities as 
        appropriate based upon need. 
        Subd. 6.  State Park and 
        Recreation Area Acquisition                           2,250,000
        For acquisition from willing sellers of 
        private lands within state park and 
        recreation area boundaries established 
        by law.  The commissioner shall 
        determine project priorities as 
        appropriate based upon need. 
        Subd. 7.  Metro Regional Park 
        Acquisition and Betterment                           14,400,000
        (a) $9,000,000 is for payment 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.  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.  
        $840,000 of this appropriation may be 
        used by the metropolitan council to 
        reimburse Washington county for 
        acquiring St. Croix Bluffs regional 
        park in 1997. 
        (b) $3,900,000 of this appropriation is 
        for a grant to the metropolitan council 
        to prepare a site for, design, 
        construct, furnish, and equip, 
        including utility infrastructure, the 
        Como Park Education Resource Center, 
        Phase One.  The grant is contingent 
        upon the city of St. Paul maintaining 
        Como Park zoo as a free attraction for 
        the life of the bonds.  The city may, 
        however, charge a fee for use of the 
        Como Park golf course and the 
        conservatory and for special event 
        facility rentals at the park, including 
        the zoo and the conservatory.  
        The center must report to the chair of 
        the senate environment and agriculture 
        budget division, the chair of the house 
        environment and agriculture finance 
        committee, and the chairs of the senate 
        and house environment and natural 
        resources policy committees as soon as 
        the center has secured half of the 
        total project costs from nonstate 
        sources. 
        (c) $1,500,000 is for a grant to the 
        metropolitan council for capital 
        expenditures necessary to carry out the 
        Harriet Island Redevelopment in 
        accordance with the Lilydale/Harriet 
        Island master plan.  This appropriation 
        is not available until the commissioner 
        determines that an equal amount has 
        been committed from nonstate sources.  
        Subd. 8.  Dam Improvements                            1,300,000 
        For the emergency repair, 
        reconstruction, or removal of publicly 
        owned dams.  Up to $300,000 of this 
        appropriation is for the Sauk River Dam 
        and up to $100,000 of this 
        appropriation is for a study of removal 
        of the Rapidan Dam.  Up to $300,000 of 
        this appropriation is for a grant to 
        the city of Appleton for removal of a 
        dam located on the Pomme de Terre river 
        in Swift county.  The commissioner 
        shall determine remaining project 
        priorities as appropriate based upon 
        need as provided in Minnesota Statutes, 
        section 103G.511. 
        Subd. 9.  Flood Hazard
        Mitigation Grants                                    30,000,000
        For the flood hazard mitigation grant 
        program to local government units for 
        publicly owned capital improvements to 
        prevent or alleviate flood damages 
        under Minnesota Statutes, section 
        103F.161. 
        $1,500,000 is to construct ring dikes, 
        whether publicly or privately owned.  
        $500,000 is for a grant to Clay county 
        to remove houses in the Crestwood 
        addition in Kurtz township on the Red 
        River that are endangered by the 
        collapsing river bank. 
        The commissioner shall determine other 
        project priorities as appropriate based 
        upon need.  
        As soon as the United States Army Corps 
        of Engineers section 205 flood control 
        study for the city of Breckenridge is 
        complete, the commissioner shall make a 
        recommendation to the legislature for 
        the funding necessary to complete flood 
        hazard mitigation efforts in the city.  
        Subd. 10.  Forest Road and
        Bridge Projects                                       2,000,000
        For reconstruction, resurfacing, 
        replacement, or construction of other 
        improvements of a capital nature to 
        state forest roads and bridges 
        throughout the state.  The commissioner 
        shall determine project priorities as 
        appropriate based upon need.  Of this 
        amount, $500,000 may be used for forest 
        roads in northern Minnesota peat areas. 
        Subd. 11.  Forestry Land Acquisition                    800,000 
        To acquire private lands from willing 
        sellers within established boundaries 
        of state forests throughout the state.  
        The commissioner shall determine 
        project priorities as appropriate based 
        upon need. 
        Subd. 12.  White Pine Management                        300,000 
        For planting of stands of white pine 
        and management of white pine resources. 
        Subd. 13.  Forestry Recreation
        Facilities                                              750,000
        For improvements of a capital nature to 
        rehabilitate, improve, or develop 
        forestry recreation facilities 
        throughout the state.  The commissioner 
        shall determine project priorities as 
        appropriate based upon need. 
        Subd. 14.  RIM Wildlife Management Areas, 
        Critical Habitat, and North American 
        Waterfowl Management Plan                             7,000,000
        $1,000,000 of this appropriation is to 
        acquire land for wildlife management 
        areas under Minnesota Statutes, section 
        97A.135; $5,500,000 is for the critical 
        habitat private sector matching account 
        under Minnesota Statutes, section 
        84.943; and $500,000 is for acquisition 
        and wetland restoration under the North 
        American Waterfowl Management Plan.  
        The commissioner shall determine 
        project priorities as appropriate based 
        upon need.  
        Subd. 15.  RIM Fish Hatchery
        Rehabilitation                                        1,000,000
        For improvements of a capital nature to 
        rehabilitate, improve, or develop fish 
        culture facilities. 
        Subd. 16.  RIM Wildlife,
        Habitat Improvements                                  2,500,000
        For improvements of a capital nature to 
        develop, protect, or improve wildlife 
        management areas and other state lands 
        throughout the state.  The commissioner 
        shall determine project priorities as 
        appropriate based upon need.  
        Subd. 17.  Stream Protection
        and Restoration                                       1,000,000
        For the acquisition of easements and 
        aquatic management areas on streams for 
        fisheries management purposes, and 
        stream restoration on portions of the 
        Whitewater river and Sandy river. 
        Subd. 18.  Scientific and Natural Area and
        Prairie Bank Acquisition and Improvement              3,000,000
        To acquire land related to scientific 
        and natural areas and prairie bank 
        easements and for development, 
        protection, or improvements of a 
        capital nature to scientific and 
        natural areas throughout the state.  
        $2,200,000 is for scientific and 
        natural area acquisition, $400,000 is 
        for scientific and natural area 
        restoration and development, and 
        $400,000 is for Prairie Bank 
        easements.  The commissioner shall 
        determine project priorities as 
        appropriate based upon need.  
        Subd. 19.  Metro Greenways
        and Natural Areas                                     4,000,000
        To acquire and improve natural areas 
        and greenways in the metro region 
        through purchase of conservation 
        easements or fee acquisition.  The 
        commissioner shall determine project 
        priorities as appropriate based upon 
        need and shall consult with 
        representatives of local units of 
        government, nonprofit organizations, 
        and other interested parties. 
        Subd. 20.  Accelerated Wildlife
        Habitat Management                                      500,000
        For wildlife habitat improvement.  Of 
        this amount, $400,000 is for winter 
        wildlife habitat improvement for 
        pheasants and other grassland wildlife 
        in key farmland areas and $100,000 is 
        for brushland and forest habitat 
        renewal for sharp-tailed grouse and 
        other species of birds dependent on 
        open brushlands in forest areas. 
        Subd. 21.  Water Access
        Acquisition and Development                           2,000,000
        For public water access acquisition 
        development and rehabilitation on lakes 
        and rivers, including water access 
        through the provision of fishing piers 
        and shoreline access. 
        Subd. 22.  Trail Acquisition
        and Development                                      10,250,000
        For acquisition and development of a 
        capital nature on state trails as 
        specified in Minnesota Statutes, 
        section 85.015.  Projects include 
        $500,000 for the Willard Munger Trail, 
        $1,000,000 for the Root River Trail, 
        $140,000 for the Lanesboro Trailhead of 
        the Root River Trail, $1,350,000 for 
        the Luce Line, $500,000 for the 
        Heartland Trail, $2,000,000 for the 
        Paul Bunyan Trail, $1,050,000 for the 
        Goodhue Pioneer Trail, $800,000 for the 
        Blazing Star Trail, $1,310,000 for the 
        Blufflands Trail development, and 
        $350,000 for the Gateway Trail.  The 
        commissioner shall determine additional 
        project priorities as appropriate based 
        upon need.  $1,250,000 of this 
        appropriation is for the state 
        targeting accessible recreation trails 
        (START) project to complete the trail 
        survey, prioritizing, and 
        preengineering work for all 100 major 
        recreation areas and to improve 
        accessibility in up to 35 of these 
        areas.  
        Subd. 23.  Metro Regional Trails                      5,000,000 
        For grants to the metropolitan council 
        for acquisition and development of a 
        capital nature of trail connections in 
        the metropolitan area as specified in 
        this subdivision.  The purpose of the 
        grants is to improve trails in the 
        metropolitan park and open space system 
        and connect them with existing state 
        and regional trails.  Priority shall be 
        given to matching funds for an ISTEA 
        grant. 
        The funds shall be allocated by the 
        council as follows: 
        (1) $1,050,000 is allocated to Ramsey 
        county as follows: 
        (i) $400,000 to complete six miles of 
        trails between the Burlington Northern 
        Regional Trail and Bald Eagle-Otter 
        Lake Regional Park; 
        (ii) $150,000 to complete a one-mile 
        connection between Birch Lake and the 
        Lake Tamarack segment of Bald 
        Eagle-Otter Lake Regional Park; 
        (iii) $500,000 to acquire real property 
        and design and construct or renovate 
        recreation facilities along the 
        Mississippi River in cooperation with 
        the city of St. Paul; 
        (2) $1,050,000 is allocated to the city 
        of St. Paul as follows: 
        (i) $250,000 to construct a bridge over 
        Lexington Parkway in Como Regional 
        Park; and 
        (ii) $800,000 to enhance amenities for 
        the trailhead at the Lilydale-Harriet 
        Island Regional Park pavilion; 
        (3) $1,400,000 is allocated to Anoka 
        county as follows: 
        (i) $1,100,000 to construct a 
        pedestrian tunnel under Highway 65 on 
        the Rice Creek West Regional Trail in 
        the city of Fridley; and 
        (ii) $300,000 to construct a pedestrian 
        bridge on the Mississippi River 
        Regional Trail crossing over 
        Mississippi Street in the city of 
        Fridley; and 
        (4) $1,500,000 is allocated to the 
        suburban Hennepin regional park 
        district as follows: 
        (i) $1,000,000 to connect North 
        Hennepin Regional Trail to Luce Line 
        State Trail and Medicine Lake; and 
        (ii) $500,000 is for the cost of 
        development and acquisition of the 
        Southwest regional trail in the city of 
        St. Louis Park.  The trail must connect 
        the Minneapolis regional trail system 
        at Cedar Lake park to the Hennepin 
        parks regional trail system at the 
        Hopkins trail head. 
        Subd. 24.  Lake Superior
        Safe Harbors                                          5,000,000
        For acquisition, design, and 
        development of safe harbors and public 
        accesses on Lake Superior.  $1,500,000 
        is for Taconite Harbor and $3,500,000 
        is for Two Harbors.  This appropriation 
        is not available until an equal amount 
        in federal matching funds has been 
        committed.  
        Subd. 25.  Lake Superior Zoo                          1,300,000 
        To the commissioner of administration 
        for a grant to the city of Duluth for 
        capital improvements to the animal care 
        center, including veterinary hospital, 
        laboratory, clinic, and quarantine 
        area, and the childrens' zoo at the 
        Lake Superior Zoological Garden. 
        Subd. 26.  Local Initiative Grants                    8,000,000 
        For matching grants to be provided to 
        local units of government for 
        acquisition, development, or renovation 
        of a capital nature of local parks, 
        trails, and natural and scenic areas.  
        Recipients must provide a match of at 
        least one-half of total eligible 
        project costs.  The commissioner shall 
        make payment to local units of 
        government upon receiving documentation 
        of reimbursable expenditures.  The 
        commissioner shall determine project 
        priorities as appropriate based upon 
        need. 
        $3,500,000 of this appropriation is for 
        grants to units of government to 
        acquire and develop outdoor recreation 
        areas, and for grants to units of 
        government to acquire and better 
        natural and scenic areas under 
        Minnesota Statutes, section 85.019, 
        subdivision 4a.  
        $1,000,000 of this appropriation is for 
        cooperative trail grants of up to 
        $50,000 per project to acquire or 
        construct trail linkages between 
        communities, trails, and parks. 
        $3,500,000 of this appropriation is for 
        trail grants for the following locally 
        funded publicly owned trails serving 
        multiple communities:  $1,400,000 for 
        Beaver Island Trail in Stearns County, 
        $1,400,000 for Skunk Hollow Trail in 
        Yellow Medicine and Chippewa Counties, 
        and $700,000 for Unity Trail in 
        Faribault County. 
        Subd. 27.  Environmental Learning
        Centers                                               2,350,000
        $1,000,000 of this appropriation is for 
        a grant to independent school district 
        No. 621, Mounds View, to renovate the 
        Laurentian environmental learning 
        center located in the Superior National 
        Forest.  This portion of the 
        appropriation must not be used to 
        expand the bed capacity of the center.  
        It may be used to renovate and replace 
        existing facilities.  $300,000 of this 
        appropriation is available 
        immediately.  The balance is available 
        to the extent matched by money expended 
        from other sources after the date of 
        final enactment of this act. 
        $1,350,000 of this appropriation is for 
        a grant to Kandiyohi county to 
        construct a trailhead at the Prairie 
        Woods environmental learning center.  
        This portion of the appropriation may 
        not be used for overnight facilities.  
        Subd. 28.  Sand Dunes State 
        Forest Center                                           150,000 
        For predesign and design of an office 
        facility/visitor center in Sand Dunes 
        State Forest. 
        Subd. 29.  Willernie Erosion Control                     75,000
        For a grant to the city of Willernie 
        for publicly owned capital improvements 
        to forestall erosion from a natural 
        waterway.  This appropriation must be 
        equally matched by nonstate funds. 
        Subd. 30.  Hartley Nature Center                      1,500,000
        For a grant to the city of Duluth for 
        the purpose of constructing capital 
        improvements to the Hartley Nature 
        Center.  This appropriation is not 
        available until an equal amount has 
        been committed from nonstate sources. 
        Subd. 31.  International Wolf Center                    350,000 
        To the commissioner of administration 
        for capital improvements to the 
        International Wolf Center, including 
        repair of grounds and buildings, 
        improvements to the heating and 
        ventilation system, the wolf enclosure, 
        and the children's exhibit room, and 
        added facilities for vehicle garaging 
        and a workshop. 
        Subd. 32.  Savage Water Supply System                   800,000
        For a grant to the city of Savage for a 
        water supply system.  
        The Department of Health shall assign 
        the amount of additional priority 
        points necessary to place the city of 
        Savage in the fundable range of the 
        intended use plan for the Drinking 
        Water Revolving Fund under Minnesota 
        Statutes, section 446A.081, for a water 
        supply and treatment system to protect 
        the Savage Fen Wetland Complex.  The 
        amount of the loan shall be 
        $10,000,000.  The system must implement 
        uniform demand management measures and 
        provide for alternative sustainable 
        water sources while protecting the 
        Savage Fen Wetland Complex and the 
        water resources of the aquifers.  
        Conservation and demand reduction 
        measures must be adopted.  The system 
        may be constructed under authority of 
        Minnesota Statutes, section 471.59, 
        471.591, or other law.  The alternative 
        sources of water must be approved by 
        the commissioner and comply with permit 
        requirements under Minnesota Statutes, 
        chapter 103G.  
        Subd. 33.  Bald Eagle Center                              500,000
        To the commissioner of administration 
        for a grant to the city of Wabasha for 
        construction of the American bald eagle 
        center.  The city of Wabasha may enter 
        into a lease or management agreement 
        with a nonprofit corporation under 
        Minnesota Statutes, section 16A.695.  
        This appropriation is not available 
        until at least $1,000,000 has been 
        committed from nonstate sources. 
        Subd. 34.  Work Program                                         
        The commissioner must submit a work 
        program and semiannual progress reports 
        in the form determined by the 
        legislative commission on Minnesota 
        resources and request its 
        recommendation before spending any 
        money appropriated by subdivision 3, 4, 
        5, 6, 7, 11, 13, 14, 15, 16, 17, 18, 
        19, 20, 21, 22, 23, 24, 26, 27, 31, or 
        33 of this section.  The commission's 
        recommendation is advisory only.  
        Failure to respond to a request within 
        60 days after receipt is a positive 
        recommendation.  Work programs 
        involving land acquisition must include 
        a land acquisition plan. 
        Sec. 8.  OFFICE OF 
        ENVIRONMENTAL ASSISTANCE                              3,500,000
        To the office of environmental 
        assistance for the solid waste capital 
        assistance grants program under 
        Minnesota Statutes, section 115A.54.  
        Grants under this section are exempt 
        from the requirements of Minnesota 
        Statutes, section 16B.335. 
        This appropriation is from the general 
        fund. 
        $375,000 is for a grant to the 
        Prairieland Compost Facility Board, a 
        public body, for an air emissions 
        project at the Prairieland Compost 
        Facility located in Martin county. 
        Sec. 9.  PUBLIC FACILITIES AUTHORITY 
        Subdivision 1.  To the public
        facilities authority for the purposes
        specified in this section                            44,050,000
        Subd. 2.  Matching Money
        for Federal Grants                                   15,000,000
        For state matching money for federal 
        grants to capitalize the water 
        pollution control fund and the drinking 
        water revolving fund under Minnesota 
        Statutes, sections 446A.07 and 446A.081.
        The expenditure and allocation of state 
        matching funds between funds shall be 
        based on the amount of federal funds 
        appropriated to the funds.  This 
        appropriation must be used for 
        qualified capital projects. 
        Subd. 3.  Wastewater
        Infrastructure Program                               15,300,000
        For supplemental assistance to 
        municipalities under Minnesota 
        Statutes, section 446A.072. 
        The authority shall reimburse the city 
        of Isanti for costs it has incurred in 
        construction of a project that reduced 
        discharges into outstanding resource 
        value waters in order to comply with 
        more stringent wastewater standards 
        required to protect those waters.  The 
        amount of the reimbursement shall be 
        equal to the reimbursement the city 
        would have received pursuant to 
        Minnesota Statutes, section 446A.072, 
        subdivision 4, as it is amended by the 
        1998 legislature. 
        To the greatest extent practicable, the 
        authority should use the funds to first 
        match grant funds on a 50 percent basis 
        with USDA rural development projects 
        prior to using the funds for 
        non-USDA-eligible projects.  
        The authority shall also give priority 
        to multijurisdictional projects 
        connecting areas with failing on-site 
        treatment systems with an existing 
        wastewater treatment system. 
        The authority shall set aside up to 
        $500,000 to provide 50 percent grant 
        funding for the cost of equipment and 
        installation into an existing municipal 
        wastewater treatment system.  The 
        project must demonstrate the 
        application of existing technology that 
        currently is not being used in the 
        treatment of municipal wastewater, but 
        has the potential to improve the 
        treatment of wastewater or make the 
        treatment process more cost effective.  
        The authority should work with the 
        pollution control agency to solicit 
        proposals from municipalities willing 
        to share the risks and cost of removing 
        the equipment if it does not perform.  
        $1,300,000 must be used to make a grant 
        to the city of Hawley to repair and 
        update sewer lagoons. 
        Subd. 4.  Storm Sewer     
        Matching Funds, Stewart                               1,000,000
        For a loan to the city of Stewart for 
        storm sewer projects as matching money 
        for the federal small cities 
        development program. 
        This appropriation is from the general 
        fund. 
        Subd. 5.  City of St. Peter                           3,000,000 
        To the commissioner of trade and 
        economic development for a grant to the 
        city of St. Peter for the construction 
        of a new wastewater facility outside 
        the floodplain. 
        Subd. 6.  Planning Grants                               100,000 
        For grants under Minnesota Statutes, 
        section 446A.071.  This appropriation 
        is from the general fund. 
        Subd. 7.  Bayport Sewer       
        Reconstruction                                          650,000
        For a grant to the city of Bayport to 
        pay the cost of a preconstruction study 
        and engineering for a storm sewer 
        reconstruction project within and 
        adjacent to the Minnesota correctional 
        facility-Stillwater.  The study and 
        design of the project, including how 
        the costs of the project will be 
        assessed against property owners whose 
        properties will be served by the 
        project, must be reported to the chairs 
        of the judiciary finance division in 
        the house and the crime prevention and 
        judiciary budget division in the senate 
        by January 15, 1999.  The assessment 
        must include the costs of predesign, 
        design, and construction, including 
        this appropriation and amounts 
        previously spent by the cities of 
        Bayport and Oak Park Heights and the 
        county of Washington.  The benefit 
        allocation of the costs of this 
        improvement must include consideration 
        of the allocable volume of water 
        generated in the winter by the property 
        owner and drained by the reconstructed 
        storm sewer. 
        Subd. 8.  State Revolving Fund
        Supplemental                                          9,000,000
        For deposit in the water pollution 
        control fund under Minnesota Statutes, 
        section 446A.07, for the agricultural 
        best management practices loan program 
        under Minnesota Statutes, section 
        17.117, except that none of this 
        appropriation may be used for 
        conservation tillage equipment. 
        This appropriation is from the general 
        fund. 
        Sec. 10.  BOARD OF WATER AND SOIL RESOURCES 
        Subdivision 1.  To the board
        of water and soil resources for the
        purposes specified in this section                   19,800,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  RIM and PWP
        Conservation Easements                               15,000,000
        This appropriation is for the following 
        purposes: 
        (1) 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; and 
        (2) to acquire perpetual conservation 
        easements on existing type 1, 2, 3, and 
        6 wetlands, adjacent lands, and for the 
        establishment of permanent cover on 
        adjacent lands, in accordance with 
        Minnesota Statutes, section 103F.516. 
        Up to $250,000 may be used for the 
        acquisition of flood storage easements 
        that allow haying, grazing, or other 
        activities approved by the board when 
        the flood storage is not needed, and 
        for the cost of constructing related 
        dikes and other structures necessary to 
        maintain water in the flood storage 
        easement areas.  Up to ten percent of 
        the appropriation may be used for 
        professional and technical services 
        related to acquisition of the easement. 
        The board, in consultation with the 
        commissioner of natural resources, must 
        select at least two local government 
        units for participation in the flood 
        storage easement pilot program based on 
        the potential and need for flood water 
        storage in the local area.  The board 
        may acquire the easement directly or 
        provide grants to the local government 
        units for their acquisition of 
        easements that conform with the 
        requirements established by the board.  
        A conservation easement must be for at 
        least ten years.  The board or the 
        local government unit must make the 
        following payments to the landowner for 
        the conservation easement and agreement:
        (1) to establish conservation practices 
        required by the easement, up to 75 
        percent of the total eligible cost, not 
        to exceed an average of $75 per acre; 
        and 
        (2) 25 percent of the payment rate for 
        20-year easements acquired under 
        Minnesota Statutes, section 103F.515; 
        or 
        (3) an alternative payment system for 
        easements as may be determined by the 
        board, in consultation with the 
        commissioner of natural resources. 
        By January 15, 2000, the board, in 
        conjunction with the commissioner of 
        natural resources, shall report to the 
        senate environment and agriculture 
        budget division and the house 
        environment, natural resources, and 
        agriculture finance committee on the 
        acquisition of easements under this 
        paragraph.  The report must include an 
        analysis of the benefit to expansion of 
        the program in other areas of the state 
        that are prone to flooding and on the 
        adequacy of payments under the pilot 
        program. 
        Up to $1,000,000 is for professional 
        and technical services necessary to 
        administer the program. 
        Subd. 3.  Local Government
        Road Replacement                                      2,750,000
        To acquire land for wetlands or restore 
        wetlands to be used to replace wetlands 
        drained or filled as a result of the 
        repair, maintenance, or rehabilitation 
        of existing public roads, as provided 
        in Minnesota Statutes, section 
        103G.222, subdivision 1, paragraph (m). 
        The purchase price paid for acquisition 
        of land, fee or perpetual easement, 
        shall be the amount deemed reasonable 
        by the board.  The board may enter into 
        agreements with the federal government, 
        other state agencies, political 
        subdivisions, and nonprofit 
        organizations or fee owners for 
        acquisition of land and restoration and 
        creation of wetlands with funds 
        provided by this appropriation.  
        Acquisition of or the conveyance of 
        land may be in the name of the 
        political subdivision.  
        Up to $400,000 is for professional and 
        technical services necessary to 
        administer the program. 
        Subd. 4.  Quad-Lakes Restoration                        300,000 
        For a grant to the Faribault county 
        soil and water conservation district 
        for the quad-lakes restoration project 
        in Faribault and Blue Earth counties. 
        Subd. 5.  Lakeshore Easements                           250,000
        To acquire conservation easements for 
        sensitive shoreland and riparian areas 
        on lakes. 
        Subd. 6.  Area II Minnesota
        River Basin Grant-in-Aid Program                        500,000
        For grants to assist local governments 
        in acquiring and constructing 
        floodwater retention systems in area II 
        of the Minnesota river basin.  Projects 
        may include flood control reservoirs, 
        road retention structures, and other 
        floodwater mitigation improvements.  
        This appropriation must be matched by 
        at least $333,000 from nonstate 
        sources.  Grants under this subdivision 
        are exempt from the requirements of 
        Minnesota Statutes, section 16B.335. 
        Subd. 7.  Feedlot Water Quality                       1,000,000
        For grants to soil and water 
        conservation districts for cost-sharing 
        contracts for water quality management 
        on feedlots.  Priority must be given to 
        feedlot operators who have received a 
        notice of violation and for feedlots in 
        counties that are conducting or have 
        completed a level 2 or level 3 feedlot 
        inventory. 
        Subd. 8.  Work Program                                          
        The board must submit a work program 
        and semiannual progress reports in the 
        form determined by the legislative 
        commission on Minnesota resources and 
        request its recommendation before 
        spending any money appropriated by this 
        section.  The commission's 
        recommendation is advisory only.  
        Failure to respond to a request within 
        60 days after receipt is a positive 
        recommendation.  Work programs 
        involving land acquisition must include 
        a land acquisition plan. 
        Sec. 11.  AGRICULTURE                                    500,000
        For a grant to a political subdivision 
        that is chosen as a site for a soybean 
        oilseed processing and refining 
        facility, constructed by a 
        Minnesota-based cooperative.  This 
        appropriation is for site preparation, 
        predevelopment, and other 
        infrastructure improvements, including 
        public and private utility 
        improvements, that are necessary for 
        development of the oilseed processing 
        and refining facility.  This 
        appropriation is available until 
        December 31, 2000. 
        This appropriation is from the general 
        fund. 
        Sec. 12.  MINNESOTA ZOOLOGICAL
        GARDENS                                               1,750,000
        To the Minnesota zoological gardens for 
        design, repair, and reconstruction of 
        roadways, pathways, parking lots, 
        outdoor lighting, and public plaza 
        areas.  This appropriation is exempt 
        from the requirements of Minnesota 
        Statutes, section 16B.335. 
        Sec. 13.  ADMINISTRATION 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                            46,250,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  Capital Asset
        Preservation and Replacement (CAPRA)                 15,000,000
        To be spent in accordance with 
        Minnesota Statutes, section 16A.632.  
        The commissioner of administration, in 
        cooperation with the commissioner of 
        finance, president of the University of 
        Minnesota, and chancellor of the 
        Minnesota state colleges and 
        universities, shall review how state 
        agencies and state higher education 
        institutions plan and budget for 
        ongoing asset preservation needs in 
        capital and operating budgets, examine 
        alternative methodologies and formulas 
        for future agency requests, and report 
        the commissioner's findings by January 
        15, 1999, to the chairs of the senate 
        committees on finance and the house of 
        representatives committees on ways and 
        means and capital investment. 
        The legislature intends to use the 
        report in considering future capital 
        and operating appropriations to state 
        agencies and state higher education 
        institutions for asset preservation, 
        repair, and replacement budgets. 
        Subd. 3.  Ely Revenue  
        Building                                              2,200,000
        This appropriation is to predesign, 
        design, construct, furnish, and equip a 
        new building for the department of 
        revenue's Minnesota collection 
        enterprise operations in Ely.  The 
        unencumbered balance of the 
        appropriation of $650,000 in Laws 1997, 
        chapter 202, article 1, section 12, 
        subdivision 3, to acquire the building 
        in Ely currently used by the department 
        of revenue is canceled. 
        Subd. 4.  Capitol Square
        Building                                              3,100,000
        To relocate the department of children, 
        families, and learning (CFL), and the 
        higher education services office (HESO) 
        and pay rent in a new facility and 
        conduct a predesign study of future 
        facilities for CFL and HESO.  
        Notwithstanding Minnesota Statutes, 
        section 16B.24, the commissioner of 
        administration must retain the capitol 
        square site.  
        Subd. 5.  Labor Interpretive Center                   6,000,000 
        For renovation and upgrades to the East 
        Building of the Science Museum for use 
        for the Minnesota Labor Interpretive 
        Center. 
        Subd. 6.  Department of
        Revenue Relocation                                    5,350,000
        To relocate the department of revenue 
        from a leased facility to a new 
        state-owned facility in the Capitol 
        complex.  This appropriation includes 
        staging equipment and furnishings 
        necessary to complete the relocation 
        and to continue critical operations at 
        the new facility.  Any computers 
        replaced as a result of these 
        relocations will be offered to the 
        Center for the Arts in Golden Valley. 
        Subd. 7.  Agency Relocation                           2,490,000 
        For relocation of state agencies as 
        determined by the commissioner of 
        administration. 
        Subd. 8.  Electrical Utility
        Infrastructure                                        5,350,000
        To upgrade the primary electrical 
        distribution system in the Capitol 
        complex and to upgrade the mechanical 
        infrastructure in the east Capitol area.
        Subd. 9.  Capitol Security and
        Plant Management Facility Predesign                      45,000
        To conduct a predesign of a new 
        facility for the department of public 
        safety's capitol security division and 
        the department of administration's 
        plant management division. 
        Subd. 10.  Real Property Acquisition                  2,800,000 
        This appropriation is from the general 
        fund for acquisition of land and to 
        purchase options in order to hold 
        properties that meet state development 
        needs. 
        Subd. 11.  Bureau of Criminal 
        Apprehension Facility Design and Site 
        Acquisition                                           3,815,000 
        To design a new building for the bureau 
        of criminal apprehension, including 
        offices and forensic laboratories and 
        to select and acquire a site for the 
        building in St. Paul and predesign of a 
        satellite laboratory facility in 
        northern Minnesota.  
        Subd. 12.  Dahl House Relocation                        100,000
        This appropriation is from the general 
        fund to relocate the Dahl House near 
        its original site, stabilize, and 
        restore the structure.  Up to $150,000 
        from the plaza percent for art budget 
        may be used for the restoration and 
        related art objects. 
        Subd. 13.  Department of Human Services 
        Consolidation 
        Within the limits of available 
        appropriations, the commissioner of 
        administration and the commissioner of 
        human services may enter into a 
        contract with a third party to 
        consolidate the department of human 
        services central office operations into 
        one location. 
        Sec. 14.  CAPITOL AREA ARCHITECTURAL AND
        PLANNING BOARD 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                             9,544,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  Capitol Building
        Structural Stabilization                              6,600,000
        To stabilize the Capitol building's 
        structure and provide related facility 
        improvements. 
        Subd. 3.  Capitol Building Accessibility              1,500,000 
        To design, construct, renovate, and 
        replace exterior doors on the Capitol's 
        ground, first, and second floors to 
        meet code requirements. 
        The commissioner of administration and 
        the capitol area architectural and 
        planning board shall study and report 
        to the legislature by January 15, 1999, 
        on possible improvements of the stairs 
        from the tunnel to the Capitol, so as 
        to encourage greater use of stairs and 
        less use of elevators. 
        $150,000 of this appropriation is to 
        predesign improvements to the heating, 
        ventilation, and air conditioning 
        system in the State Office Building 
        hearing rooms.  This appropriation is 
        also to design and construct storage 
        behind members' chairs in hearing rooms 
        of the State Office Building and to 
        design and construct improved access to 
        the hearing rooms of the State Office 
        Building. 
        Subd. 4.  Security Lighting                             734,000
        To improve security lighting for 
        pedestrians parking in lots and ramps 
        north of the Capitol and, to the extent 
        money is available, for 
        pedestrian-scaled lighting on the mall 
        south of the Capitol. 
        Subd. 5.  Statuary Restoration                          120,000
        This appropriation is to restore the 
        statuary immediately in front of the 
        Capitol. 
        Subd. 6.  Capitol Mall
        Memorials                                               440,000
        This appropriation is to repair and 
        rehabilitate the reflecting pool and 
        sculpture at the veterans services 
        building, the plaza and wall of the 
        Floyd B. Olson memorial, and the paving 
        stones at the Lindbergh memorial. 
        Subd. 7.  Women's Suffrage
        Memorial Garden                                         150,000
        This appropriation is to complete the 
        Minnesota women's suffrage memorial 
        garden. 
        Subd. 8.  Greening the Mall                                    
        The capitol area architectural and 
        planning board shall solicit 
        contributions of labor, trees, and 
        other landscape materials from 
        individuals and groups willing to 
        assist with replacing and increasing 
        vegetation on the capitol mall in 
        preparation for the Capitol's 
        centennial celebration in 2005.  
        Sec. 15.  AMATEUR SPORTS COMMISSION 
        Subdivision 1.  To the amateur
        sports commission for the purposes
        specified in this section                            11,020,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  National Sports Center                      4,800,000 
        $1,700,000 is to purchase and develop 
        land adjacent to the National Sports 
        Center in Blaine for use as athletic 
        fields. 
        $3,100,000 is to develop the National 
        Children's Golf Course.  The primary 
        purpose of the National Children's Golf 
        Course is to serve youth of 18 years 
        and younger.  Market rates must be 
        charged for adult golf. 
        Subd. 3.  Giants Ridge Facility                         690,000
        For a grant to the Iron Range resources 
        and rehabilitation board to enhance the 
        Giants Ridge cross-country ski event 
        facility. 
        Subd. 4.  Minneapolis Urban
        Sports Center                                           600,000
        For a grant to special school district 
        No. 1, Minneapolis, to complete funding 
        for an urban sports facility, to be 
        owned by the district.  This 
        appropriation is in addition to the 
        project appropriation of $3,400,000 in 
        Laws 1996, chapter 463, section 14, 
        subdivision 5, paragraph (a), and 
        subject to the conditions contained 
        therein. 
        Subd. 5.  Tennis Facility                               800,000
        For a grant to the city of St. Paul to 
        design a tennis center to offer indoor 
        tennis facilities, subject to the 
        requirements of Minnesota Statutes, 
        section 16A.695.  The center may be 
        constructed only after endorsement by a 
        national governing body member of the 
        United States Olympic Committee.  
        Subd. 6.  Ice Centers                                 2,000,000
        For grants for ice centers under 
        Minnesota Statutes, section 240A.09, of 
        up to $250,000 each. 
        Subd. 7.  Mt. Itasca Ski Area                           130,000
        For a grant to the Iron Range resources 
        and rehabilitation board to expand the 
        facilities at Mt. Itasca ski area. 
        Subd. 8.  Richfield Athletic Fields                   2,000,000
        For a grant to the city of Richfield 
        for planning, designing, constructing, 
        and equipping recreational facilities 
        needed to replace facilities lost due 
        to improvements to Wold Chamberlain 
        field.  The city must spend the money 
        in a manner consistent with the 
        recreation asset replacement study of 
        the Richfield community services 
        department. 
        Sec. 16.  MILITARY AFFAIRS 
        Subdivision 1.  To the adjutant
        general or other named agency for the
        purposes specified in this section                    1,230,000
        This appropriation is from the general 
        fund. 
        Subd. 2.  Kitchen Renovation                            880,000 
        To renovate kitchen facilities at 
        National Guard training and community 
        centers in Thief River Falls, Bemidji, 
        Detroit Lakes, Marshall, Litchfield, 
        Anoka, Fergus Falls, and Pine City.  
        This appropriation is exempt from the 
        requirements of Minnesota Statutes, 
        section 16B.335. 
        Subd. 3.  Asset Preservation                            250,000 
        For asset preservation improvements at 
        military affairs facilities statewide. 
        Subd. 4.  Military Affairs/Emergency
        Management Facility Predesign                           100,000
        To the commissioner of administration 
        to predesign a joint military 
        affairs/emergency management facility. 
        Sec. 17.  TRANSPORTATION 
        Subdivision 1.  To the
        commissioner of transportation for
        the purposes specified in this section               93,300,000
        Subd. 2.  Local Bridge
        Replacement and Rehabilitation                       34,000,000
        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 of preliminary 
        engineering and environmental studies 
        authorized under Minnesota Statutes, 
        section 174.50, subdivision 6a; 
        (3) paying the costs to abandon an 
        existing bridge that is deficient and 
        in need of replacement, but where no 
        replacement will be made; and 
        (4) 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. 
        Subd. 3.  Transitways                                46,500,000 
        (a) This appropriation is to match 
        federal and local funding for the 
        planning, design, engineering, and 
        construction of transitways in the 
        metropolitan area. 
        (b) $40,000,000 is for the preliminary 
        engineering, final design, and 
        construction of light rail transit in 
        the Hiawatha Avenue corridor from 
        downtown Minneapolis through 
        Minneapolis-St. Paul International 
        Airport and the site of the former Met 
        Center or surrounding area with a 
        terminus in southern Hennepin or 
        northern Dakota county. 
        The Hiawatha Avenue corridor management 
        committee created pursuant to Minnesota 
        Statutes, section 473.3994, subdivision 
        10, shall establish an advisory 
        committee of: 
        (1) individuals who reside near the 
        proposed corridor; 
        (2) representatives of businesses 
        located within one mile on either side 
        of the corridor; and 
        (3) elected officials, including 
        legislators, who represent the area in 
        which the Hiawatha corridor is located. 
        The advisory committee shall advise the 
        corridor management committee on issues 
        relating to the preliminary 
        engineering, final design, and 
        construction of light rail facilities, 
        including the proposed alignment for 
        the corridor. 
        (c) The funds in this paragraph must be 
        distributed as grants to appropriate 
        county regional rail authorities as 
        follows: 
        (1) $3,000,000 to match federal funding 
        for a major investment study, 
        engineering, and implementation in the 
        Riverview corridor between the east 
        side of St. Paul and the 
        Minneapolis-St. Paul International 
        Airport and the Mall of America; 
        (2) $1,500,000 to match federal funding 
        for a major investment study, 
        engineering, and implementation in the 
        Northstar corridor linking downtown 
        Minneapolis to the St. Cloud area and 
        to study the feasibility of commuter 
        rail and other transportation 
        improvements within the corridor; 
        (3) $500,000 to study potential transit 
        improvements and engineering studies in 
        the Cedar Avenue corridor to link the 
        Hiawatha, Riverview, and Northstar 
        transit corridors with Dakota county; 
        and 
        (4) $500,000 to develop engineering 
        documents for a commuter rail line from 
        Minneapolis to downtown St. Paul 
        through southern Washington county to 
        Hastings. 
        The commissioner of transportation, in 
        coordination with the North Star 
        Corridor Joint Powers Authority and the 
        St. Cloud area planning agency, shall 
        study the transportation needs within 
        the St. Cloud metropolitan area.  
        (d) $1,000,000 is available as grants 
        to appropriate county regional rail 
        authorities to conduct major investment 
        studies and to develop engineering 
        documents for commuter rail lines in 
        the following corridors: 
        (1) the Young America corridor from 
        Carver county to Minneapolis and St. 
        Paul; 
        (2) the Bethel corridor linking 
        Cambridge with the Northstar corridor 
        in Anoka county; 
        (3) the Northwest corridor from 
        downtown Minneapolis to the Northwest 
        suburbs of Hennepin county; and 
        (4) other commuter rail corridors 
        identified in phase II of the 
        department of transportation's commuter 
        rail service study, except for the 
        corridors identified in paragraph (c). 
        The appropriation in this paragraph is 
        not available until the completion of 
        the commuter rail service study as 
        provided in Laws 1997, chapter 159, 
        article 2, section 51.  The funds may 
        be made available only after approval 
        by the commissioner of transportation 
        of an application submitted by county 
        regional rail authorities that is 
        consistent with the results of the 
        commuter rail service study and 
        demonstrates a coordinated 
        implementation strategy. 
        Subd. 4.  Rural Transit Assistance                    5,000,000
        This appropriation is from the general 
        fund. 
        $2,500,000 of this appropriation is for 
        grants to local units of government to 
        acquire rolling stock for transit 
        systems under Minnesota Statutes, 
        section 174.24.  $1,500,000 is for 
        public transit subsidy program grants 
        to eligible recipients under Minnesota 
        Statutes, section 174.24.  Priority 
        must be given to projects involving 
        collaboration between transit operators 
        and local government. 
        The following appropriations are not 
        available until equal amounts have been 
        committed from nonstate sources: 
        $675,000 is for renovation of the 
        Duluth transit operating facility.  
        $100,000 is for renovation and roof 
        replacement at the Duluth Transit 
        Center.  $100,000 is to design and 
        construct a transit hub on or near the 
        campus of St. Cloud State University.  
        $125,000 is to renovate the heating, 
        ventilation, and air conditioning 
        system at the Mankato transit building. 
        Subd. 5.  Forest Highway 11 and CSAH No. 90            3,050,000 
        To fund the nonfederal matching 
        requirement for Forest Highway 11 in 
        St. Louis and Lake counties and County 
        State Aid Highway No. 90 in Blue Earth 
        county.  The amount for Forest Highway 
        11 is $1,650,000 and the amount for 
        County State Aid Highway No. 90 is 
        $1,400,000. 
        This appropriation is from the general 
        fund. 
        Subd. 6.  Port Development Assistance                 4,500,000 
        For port development assistance grants, 
        the grants must be made to political 
        subdivisions for capital improvements 
        constructed after the effective date of 
        this appropriation under the provisions 
        of Minnesota Statutes, sections 457A.01 
        to 457A.06.  Any improvements made with 
        the proceeds of these grants must be 
        publicly owned. 
        Subd. 7.  Seaway Port Authority
        of Duluth                                               250,000
        For a grant to the Seaway Port 
        Authority of Duluth to design a new 
        warehouse. 
        This appropriation is from the general 
        fund. 
        Subd. 8.  Exception
        Notwithstanding any provision of 
        Minnesota Statutes, chapter 398A, the 
        Hennepin county regional railroad 
        authority may expend up to $400,000 
        from its funds to fund a circulator 
        vehicle pilot project in South 
        Minneapolis.  The funds may be used for 
        capital or operating costs. 
        Sec. 18.  HUMAN SERVICES 
        Subdivision 1.  To the
        commissioner of administration
        for the purposes specified 
        in this section                                      19,975,000
        Subd. 2.  Capital Roof Repairs
        and Replacement                                       1,900,000
        For critical repairs of a capital 
        nature and replacement to roofs of 
        department of human services service 
        facilities statewide. 
        This appropriation is from the general 
        fund. 
        Subd. 3.  Asset Preservation                          4,000,000 
        To be spent for asset preservation 
        needs at state regional treatment 
        centers.  Priority must be given to 
        fire alarm systems and sprinklers. 
        This appropriation is from the general 
        fund. 
        Subd. 4.  People, Inc. North Side Community 
        Support Program                                         375,000
        For a grant to Hennepin county to 
        purchase, remodel, and complete 
        accessibility upgrades to an existing 
        building to be used by the People, Inc. 
        North Side Community Support Program 
        which may provide office space for 
        state employees.  
        This appropriation is from the general 
        fund. 
        Subd. 5.  METO Construction,
        Cambridge                                             1,500,000
        To undertake site improvements 
        including demolition, and to design 
        construct, remodel, furnish, and equip 
        12 additional beds for the Minnesota 
        extended treatment option (METO) 
        program on the Cambridge regional human 
        services center campus.  
        Subd. 6.  Building Renovations, Moose Lake 
        Sexual Psychopathic Personality Center                8,000,000
        To design, construct, furnish, and 
        equip additional residential and 
        ancillary service facilities for the 
        Minnesota sexual psychopathic 
        personality treatment center at Moose 
        Lake.  The facilities are expected to 
        provide two 25-bed residential units 
        plus eight beds in an isolation unit. 
        Subd. 7.  Crisis and Respite 
        Residential Capacity                                  1,200,000
        To develop crisis and respite 
        residential capacity.  In the 
        development of this capacity, the 
        department shall consider the use of 
        existing surplus space in the public 
        and private human service system. 
        Debt service costs on the bonds sold to 
        finance projects for crisis and respite 
        capacity shall be paid to the 
        commissioner of finance in accordance 
        with Minnesota Statutes, section 
        16A.643, with funds appropriated to the 
        commissioner for this purpose.  
        Subd. 8.  Building Renovations, Willmar               3,000,000
        To renovate building 3 (MTC) and 
        building 14 at the Willmar regional 
        treatment center. 
        Sec. 19.  VETERANS HOMES BOARD 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                            12,055,000  
        This appropriation is from the general 
        fund. 
        Subd. 2.  Minneapolis
        Veterans Home                                         6,340,000
        For design and construction of capital 
        infrastructure improvements to tunnels, 
        piping systems, and utility systems at 
        the campus of the Minneapolis veterans 
        home. 
        Subd. 3.  Hastings Veterans Home                      5,715,000 
        For design and renovation of the power 
        plant, boiler, and related utility 
        infrastructure systems at the campus of 
        the Hastings veterans home. 
        Sec. 20.  CORRECTIONS 
        Subdivision 1.  To the 
        commissioner of administration 
        for the purposes specified in
        this section                                         14,185,000
        Subd. 2.  Asset Preservation                          3,500,000 
        For asset preservation needs at state 
        correctional facilities.  $1,250,000 of 
        this appropriation is for fire/life 
        safety needs at the Stillwater 
        correctional facility.  $1,225,000 of 
        this appropriation is for new plumbing 
        for the education building at the St. 
        Cloud correctional facility.  The 
        remainder of the appropriation is for 
        installing fire sprinklers and 
        replacing roofs, where needed. 
        This appropriation is from the general 
        fund. 
        Subd. 3.  Inmate Bed
        Expansion, Shakopee                                   4,645,000
        To design, construct, furnish, and 
        equip a two story 62-bed living unit at 
        MCF-Shakopee and expansion and 
        modification of related support service 
        areas.  The living units must be able 
        to be double-bunked.  
        Subd. 4.  Administrative
        Segregation Unit, Lino Lakes                            340,000
        To construct, furnish, and equip an 
        80-cell administrative segregation unit 
        to provide more restrictive and 
        staff-efficient housing for inmates who 
        are unable to live in the general 
        population.  This appropriation is 
        contingent upon $7,592,000 in federal 
        matching funds. 
        Subd. 5.  Health Care 
        Improvements, Oak Park Heights                        3,000,000
        To convert Complex 4 from a 52-bed 
        living unit to a 45-bed departmentwide 
        mental health unit, convert an existing 
        42-bed unit to a 39-bed departmentwide 
        infirmary, and provide predesign and 
        partial design funds for a new 60-bed 
        high security unit to replace beds lost 
        in the previous improvements. 
        Subd. 6.  Intake Center,
        St. Cloud                                             1,500,000
        To design and renovate dayrooms into 
        offices and inmate processing areas. 
        Subd. 7.  Security Fence,
        Red Wing                                              1,200,000
        To design and construct a security 
        fence and purchase related lighting and 
        security equipment at MCF-Red Wing.  
        This subdivision is exempt from the 
        requirements of Minnesota Statutes, 
        sections 16B.33, subdivision 3, and 
        16B.335.  
        This appropriation is from the general 
        fund. 
        Sec. 21.  PUBLIC SAFETY                                       
        Subdivision 1.  To the 
        commissioner of public safety, or 
        other named official, for the purposes 
        specified in this section                             2,230,000
        Subd. 2.  State Patrol Camp 
        Ripley Training Facility                              1,200,000 
        To the commissioner of transportation 
        to design, construct, furnish, and 
        equip a state patrol training facility 
        at Camp Ripley in Little Falls.  This 
        appropriation is from the trunk highway 
        fund. 
        Subd. 3.  Fire and Public Safety 
        Training                                                150,000
        To develop a statewide master plan for 
        siting, ownership, and operation of 
        fire and public safety training 
        facilities.  The commissioner of public 
        safety will consult with the Minnesota 
        state colleges and universities, the 
        department of military affairs, and the 
        peace officer standards and training 
        board in preparation of the master plan.
        This appropriation is from the general 
        fund. 
        Subd. 4.  Regional Emergency
        Response and Industrial Training Center                  880,000
        For a grant to the Southwest Regional 
        Development Commission for an award to 
        a community for constructing a regional 
        emergency response and fire training 
        center following a site selection 
        process.  The community will contract 
        with Minnesota West Technical College 
        to provide instruction for the center.  
        The community selected will operate and 
        maintain the facility.  This grant is 
        not available until at least an equal 
        amount has been committed from nonstate 
        sources. 
        This appropriation is from the general 
        fund. 
        Sec. 22.  INDIAN AFFAIRS COUNCIL                      1,700,000
        To the Indian affairs council for 
        construction of the Battle Point 
        Cultural and Education Center.  The 
        center must be publicly owned. The 
        Indian affairs council may enter into a 
        lease or management agreement for the 
        center subject to Minnesota Statutes, 
        chapter 16A.695. 
        Sec. 23.  TRADE AND ECONOMIC DEVELOPMENT 
        Subdivision 1.  To the commissioner
        of trade and economic development or other
        named official for the purposes specified
        in this section                                     225,680,000
        Subd. 2.  Redevelopment Grant Program                 4,000,000
        For purposes of new Minnesota Statutes, 
        sections 116J.561 to 116J.567. 
        This appropriation is from the general 
        fund. 
        Priority must be given to projects in 
        areas of high unemployment, to projects 
        that enhance the property tax base on 
        the site or adjacent to it, and to 
        grants that will be used in conjunction 
        with remediation activities. 
        Subd. 3.  Direct Reduction Iron
        Processing Facilities                                10,000,000
        For grants for construction of up to 
        three direct reduction iron processing 
        facilities.  The commissioner of trade 
        and economic development and natural 
        resources must jointly agree on and 
        issue the grants.  This appropriation 
        is from the general fund and does not 
        cancel but is available until June 30, 
        2003.  
        Subd. 4.  Phillips Neighborhood Job
        Creation, Green Institute                             1,500,000
        To the city of Minneapolis for a grant 
        to the Green Institute to design, 
        construct, furnish, and equip a 
        building to house the Phillips 
        Ecoenterprise Center in the Phillips 
        neighborhood in south Minneapolis to 
        create up to 200 jobs in businesses, 
        many of which specialize in energy 
        conservation, renewable energy, 
        environmental technology, recycling, 
        reuse, and related fields.  One-half of 
        the job openings must be targeted for 
        persons on public assistance or below 
        150 percent of the federal poverty 
        level.  This grant must be matched on a 
        one-to-one basis from nonstate sources 
        of debt and equity.  The city may enter 
        into a lease or management agreement 
        with the Green Institute subject to 
        Minnesota Statutes, section 16A.695. 
        This appropriation is from the general 
        fund. 
        Subd. 5.  Taconite Mining Grants                        500,000
        For the taconite mining grant program 
        under Minnesota Statutes, section 
        116J.992. 
        This appropriation is from the general 
        fund. 
        Subd. 6.  St. Paul RiverCentre
        Arena                                                65,000,000
        This appropriation is from the general 
        fund to the commissioner of finance for 
        a loan to the city of St. Paul to 
        demolish the existing St. Paul 
        RiverCentre Arena and to design, 
        construct, furnish, and equip a new 
        arena.  This appropriation is not 
        available until the lessee to whom the 
        city has leased the arena has agreed to 
        make rental or other payments to the 
        city under the terms set forth in this 
        subdivision.  The loan is repayable 
        solely from and secured by the payments 
        made to the city by the lessee.  The 
        loan is not a public debt and the full 
        faith, credit, and taxing powers of the 
        city are not pledged for its repayment. 
        (a) $48,000,000 of the loan must be 
        repaid to the commissioner, without 
        interest, within 20 years from the date 
        of substantial completion of the arena 
        in accordance with the following 
        schedule: 
        (1) no repayments are due in the first 
        two years from the date of substantial 
        completion; 
        (2) in each of the years three to five, 
        the lessee must pay $1,250,000; 
        (3) in each of the years six to ten, 
        the lessee must pay $1,500,000; 
        (4) in each of the years 11 to 13, the 
        lessee must pay $2,000,000; 
        (5) in year 14, the lessee must pay 
        $3,000,000; 
        (6) in year 15, the lessee must pay 
        $4,000,000; and 
        (7) in each of the years 16 to 20, the 
        lessee must pay $4,750,000. 
        (b) The commissioner must deposit the 
        repayments in the state treasury and 
        credit them to the youth activities 
        account, which is hereby created in the 
        special revenue fund.  Money in the 
        youth activities account is available 
        for expenditure as appropriated by law. 
        (c) The loan may not be made until the 
        commissioner has entered into an 
        agreement with the city of St. Paul 
        identifying the rental or other 
        payments that will be made and 
        establishing the dates on and the 
        amounts in which the payments will be 
        made to the city and by the city to the 
        commissioner.  The payments may include 
        operating revenues and additional 
        payments to be made by the lessee under 
        agreements to be negotiated between the 
        commissioner, the city, and the 
        lessee.  Those agreements may include, 
        but are not limited to, an agreement 
        whereby the lessee pledges to provide 
        each year a letter of credit sufficient 
        to guarantee the payment of the amount 
        due for the next succeeding year; an 
        agreement whereby the lessee agrees to 
        maintain a net worth, certified each 
        year by a financial institution or 
        accounting firm satisfactory to the 
        commissioner, that is greater than the 
        balance due under the payment schedule 
        in paragraph (a); and any other 
        agreements the commissioner may deem 
        necessary to ensure that the payments 
        are made as scheduled. 
        (d) The agreements must provide that 
        the failure of the lessee to make a 
        payment due to the city under the 
        agreement is an event of default under 
        the lease between the city and the 
        lessee and that the state is entitled 
        to enforce the remedies of the lessor 
        under the lease in the event of 
        default.  Those remedies must include, 
        but need not be limited to, the 
        obligation of the lessee to pay the 
        balance due for the remainder of the 
        payment schedule in the event the 
        lessee ceases to operate a National 
        Hockey League team in the arena. 
        (e) By January 1, 1999, the 
        commissioner shall report to the chair 
        of the senate committee on state 
        government finance and the chair of the 
        house committee on ways and means the 
        terms of an agreement between the 
        lessee and the amateur sports 
        commission whereby the lessee agrees to 
        make the facilities of the arena 
        available to the commission on terms 
        satisfactory to the commission for 
        amateur sports activities consistent 
        with the purposes of Minnesota 
        Statutes, chapter 240A, each year 
        during the time the loan is 
        outstanding.  The amateur sports 
        commission must negotiate in good faith 
        and may be required to pay no more than 
        actual out-of-pocket expenses for the 
        time it uses the arena.  The agreement 
        may not become effective before 
        February 1, 1999.  During any calendar 
        year after 1999 that an agreement under 
        this paragraph is not in effect and a 
        payment is due under the schedule, the 
        lessee must pay to the commissioner a 
        penalty of $750,000 for that year.  If 
        the amateur sports commission has not 
        negotiated in good faith, no penalty is 
        due. 
        Subd. 7.  Minneapolis
        Convention Center                                    87,145,000
        To the commissioner of finance for a 
        grant to the city of Minneapolis to pay 
        principal costs on city of Minneapolis' 
        $178,985,000 general obligation sales 
        tax refunding bonds, series 1992.  It 
        is the expectation of the legislature 
        that the city will issue bonds and pay 
        all capital and operating costs 
        associated with an expansion of the 
        existing Minneapolis Convention 
        Center.  This is the final state 
        appropriation for this facility. 
        Subd. 8.  Minneapolis Convention
        Center Circulator                                       220,000
        To the Metropolitan Council in 
        cooperation with the Office of Tourism 
        at the Department of Trade and Economic 
        Development and the Scenic Byways 
        program at the Department of 
        Transportation from the general fund 
        for planning and start-up costs of a 
        pilot transportation project: 
        (1) connecting the Minneapolis 
        convention center and other locations 
        in downtown Minneapolis with 
        multicultural tourist, heritage, and 
        cultural resources in Phillips, Stevens 
        Square, Whittier, Central, Powderhorn, 
        Seward, Loring Park, and 
        Cedar-Riverside neighborhoods in 
        Minneapolis and contributing to the 
        revitalization of those neighborhoods 
        by increasing urban tourism; 
        (2) generating additional spending by 
        expanding the selection of tourism 
        activities provided by the convention 
        center and downtown Minneapolis; and 
        (3) promoting state and local tourism 
        activities which provide a richer, more 
        culturally diverse experience of 
        Minneapolis urban life as an 
        alternative to larger, more commercial 
        attractions. 
        Subd. 9.  Duluth Entertainment and
        Convention Center                                    12,000,000
        For a grant to the Duluth entertainment 
        and convention center authority for the 
        purpose of planning, designing, 
        constructing, and equipping of capital 
        improvements to the Duluth 
        entertainment and convention center.  
        This appropriation is not available 
        until the commissioner has determined 
        that the necessary additional financing 
        to complete a project with a total cost 
        of at least $20,000,000 has been 
        committed from nonstate sources. 
        Subd. 10.  Mayo Civic Center
        in Rochester                                          2,800,000
        For a grant to the city of Rochester to 
        acquire land, design, construct, 
        furnish, and equip an expansion and 
        remodeling of the Mayo Civic Center.  
        This appropriation is contingent upon 
        demonstration of an equal amount in 
        nonstate matching funds to the 
        commissioner of finance. 
        Subd. 11.  St. Cloud Community
        Event Center                                          6,100,000
        For a grant to the city of St. Cloud 
        for Phase I of the Central Minnesota 
        Events Center, including predesign, 
        design, land acquisition, site 
        preparation, and construction. 
        Subd. 12.  Fergus Falls Convention
        Center                                                1,500,000
        For a grant to the city of Fergus Falls 
        to acquire land, predesign, design, 
        construct, furnish, and equip a 
        convention center in Fergus Falls.  
        This appropriation is contingent upon 
        demonstration of $1,500,000 in nonstate 
        matching funds to the commissioner. 
        Subd. 13.  Hutchinson Community
        Civic Center                                          1,000,000
        For a grant to the city of Hutchinson 
        to design, construct, furnish, and 
        equip a community civic center, subject 
        to the requirements of Minnesota 
        Statutes, section 16A.695.  This 
        appropriation is not available until 
        the commissioner has determined that an 
        equal amount has been committed from 
        nonstate sources. 
        Subd. 14.  Humboldt Avenue Greenway
        Project                                               7,000,000
        To the commissioner of natural 
        resources for a grant to Hennepin 
        county as the state contribution for 
        the Humboldt Avenue greenway project in 
        accordance with the multijurisdictional 
        reinvestment program plan established 
        in Minnesota Statutes, section 
        383B.79.  The purpose of the grant is 
        to acquire land for green space and 
        infrastructure improvements in the 
        vicinity of Humboldt Avenue North; 
        reclamation of wetland amenities for 
        public use; and construction of a 
        parkway.  This appropriation is not 
        available until the governmental 
        jurisdictions participating in the 
        multijurisdictional reinvestment 
        program have committed in the aggregate 
        $12,000,000 for the project.  The 
        governmental jurisdictions, however 
        constituted, may use any nonstate money 
        under their control to meet the match 
        requirement. 
        Subd. 15.  Prairieland Expo                           3,000,000 
        To the commissioner of administration 
        for a grant to the southwest regional 
        development commission to construct and 
        equip Prairieland Expo.  The southwest 
        regional development commission may 
        enter into a lease or management 
        agreement for Prairieland Expo subject 
        to the requirements of Minnesota 
        Statutes, section 16A.695.  This 
        appropriation is contingent upon 
        demonstration of $1,500,000 in nonstate 
        matching funds. 
        Subd. 16.  Montevideo Downtown
        Revitalization                                        1,500,000
        For a grant to the city of Montevideo 
        for engineering, architecture, and 
        development of a public capital 
        improvement downtown revitalization 
        project following the 1997 flood.  This 
        appropriation is not available until 
        the commissioner has determined that 
        $1,500,000 has been committed to the 
        project from nonstate sources.  
        Subd. 17.  Paramount Arts District
        Regional Arts Center                                    750,000
        To the commissioner of administration 
        for a grant to the city of St. Cloud to 
        construct, furnish, and equip the 
        paramount arts district regional arts 
        center, subject to Minnesota Statutes, 
        section 16A.695.  This appropriation is 
        not available until the commissioner 
        has determined that the necessary 
        additional financing to complete at 
        least a $5,400,000 project has been 
        committed by nonstate sources.  
        Subd. 18.  Veterans Memorial Performing
        Arts Amphitheater                                       315,000 
        For a grant to the city of St. Louis 
        Park to construct a veterans memorial 
        performing arts amphitheater.  This 
        appropriation is for a portion of a 
        larger project to which at least an 
        equal amount of funds from nonstate 
        sources must be committed. 
        Subd. 19.  Brooklyn Center Earle Brown
        Heritage Center Restoration                           2,500,000
        To the commissioner of administration 
        to make a grant to the city of Brooklyn 
        Center to acquire land and improve it 
        for parking and to design, construct, 
        furnish, and equip an additional 
        building, together with connecting 
        structures and the remodeling of 
        existing buildings at the Earle Brown 
        Heritage Center. 
        Subd. 20.  Valley Technology Park
        in Crookston                                            600,000
        For a grant to the city of Crookston 
        for capital development of its Valley 
        Technology Park located adjacent to the 
        campus of the University of Minnesota 
        at Crookston.  This appropriation is 
        not available until an equal amount has 
        been committed from nonstate sources. 
        This appropriation is from the general 
        fund. 
        Subd. 21.  Minnesota Agricultural 
        Interpretive Center (Farmamerica)                     1,500,000
        For a grant to the Minnesota 
        Agricultural Interpretive Center 
        (Farmamerica) to construct its 
        visitors' center.  This appropriation 
        is from the general fund. 
        Subd. 22.  Owatonna Infrastructure                      500,000 
        For a grant from the general fund to 
        the city of Owatonna to defray costs of 
        city infrastructure for the Heritage 
        Halls Museum/Cabela's project. 
        Subd. 23.  United States Hockey 
        Hall of Fame                                            250,000
        For a grant to the city of Eveleth for 
        construction, remodeling, and 
        renovation of displays celebrating boys 
        and girls amateur and high school 
        hockey in the United States at the 
        United States Hockey Hall of Fame.  
        This appropriation is not available 
        until the commissioner has determined 
        that an equal amount has been committed 
        from nonstate sources. 
        This appropriation is from the general 
        fund. 
        Subd. 24.  Minnesota African-American
        Performing Arts Center                                2,250,000
        To the commissioner of administration 
        for a grant to the city of St. Paul to 
        predesign, design, construct, furnish, 
        and equip the Minnesota 
        African-American performing arts and 
        education center.  The city of St. Paul 
        may contract with a nonprofit 
        organization to operate the center, 
        subject to Minnesota Statutes, section 
        16A.695.  This appropriation is not 
        available until the commissioner has 
        determined that an equal amount has 
        been committed by nonstate sources.  
        Subd. 25.  Phalen Corridor                            3,850,000
        For a grant to the St. Paul Port 
        Authority for the removal of blight by 
        property acquisition, site preparation, 
        and redevelopment activities on and 
        around the former Stroh brewery 
        property and to acquire a roadway 
        right-of-way in the Phalen corridor.  
        The city shall consider the potential 
        for connection with an adjoining 
        transit hub and any connector roads.  
        Subd. 26.  Sewer and Water
        to Community College                                    500,000
        For a grant to the city of Cambridge 
        for extension of pipe for sewer and 
        water service including extension under 
        the Rum River to the community college 
        campus at Cambridge. 
        This appropriation is from the general 
        fund. 
        Subd. 27.  Red Lake  
        Educational and Training Facility                     2,600,000
        For a grant to the Red Lake tribal 
        council to construct an educational and 
        training facility and a production 
        facility on land assigned by the 
        council on the Red Lake reservation.  
        The educational and training facility 
        will provide a site for Northwest 
        technical college to offer basic skills 
        and vocational training to adults to 
        help them overcome the effects of 
        underemployment and unemployment and to 
        prepare them for meaningful employment. 
        Training will utilize personalized, 
        computerized programs designed to 
        prepare participants for college and 
        other further training as well as 
        direct access to the work force. 
        This appropriation is from the general 
        fund. 
        Subd. 28.  Headwaters Science Center                     200,000
        To the commissioner of administration 
        for a grant to the city of Bemidji for 
        design of the Headwaters Science Center.
        Subd. 29.  Little Falls Conference
        and Retreat Center                                      100,000
        For a grant to the city of Little Falls 
        to equip a conference center and 
        retreat site on the Mississippi River 
        in Little Falls. 
        This appropriation is from the general 
        fund. 
        Subd. 30.  Itasca County School-to-Work
        Technology Center                                     2,000,000 
        For a grant to Itasca county to design 
        and construct a school-to-work 
        technology center in conjunction with 
        the school district, the city of 
        Nashwauk, and private industry.  Each 
        dollar of state money must be matched 
        by $1 of nonstate money. 
        This appropriation is from the general 
        fund. 
        Subd. 31.  Mankato Technology Center                  4,500,000
        For a grant to the city of Mankato to 
        acquire real property, design, and 
        construct a multiuse facility that 
        includes a technology incubator, a 
        community technology park, an education 
        center, headquarters space for the 
        Institute for Wireless Education, 
        laboratories, and office and 
        administrative space.  This 
        appropriation is not available until 
        the commissioner has determined that at 
        least $4,500,000 has been committed by 
        the city of Mankato and other nonstate 
        sources.  
        This appropriation is from the general 
        fund. 
        Sec. 24.  HOUSING FINANCE AGENCY                      6,000,000
        This appropriation is from the general 
        fund. 
        (a) $4,000,000 is for transfer to the 
        housing development fund for the 
        purpose of making loans or grants for 
        temporary or transitional housing under 
        Minnesota Statutes, section 462A.201, 
        subdivision 2, including loans or 
        grants for housing homeless youth, 
        homeless families, battered women, and 
        individuals leaving prostitution. 
        At least 25 percent of the 
        appropriation under this section must 
        utilize youthbuild, Minnesota Statutes, 
        sections 268.361 to 268.366, or other 
        youth employment and training programs. 
        Eligible programs must consult with 
        appropriate labor organizations to 
        deliver education and training.  In 
        making grants under this section, the 
        commissioner shall use a request for 
        proposal process. 
        (b) $2,000,000 is for transfer to the 
        housing development fund for the 
        purpose of making loans for permanent 
        housing under Minnesota Statutes, 
        sections 462A.21, subdivision 8b, and 
        462A.206. 
        Sec. 25.  MINNESOTA HISTORICAL SOCIETY 
        Subdivision 1.  To the Minnesota 
        Historical Society for the purposes 
        specified in this section                            13,110,000
        Subd. 2.  Historic Site
        Preservation and Repair                               1,500,000
        For capital repair, reconstruction, or 
        replacement of deferred maintenance 
        needs at state historic sites, 
        buildings, exhibits, markers, and 
        monuments, including replacement of the 
        permanent exhibit at the Lindbergh 
        Historic Site Visitor Center.  The 
        society shall determine project 
        priorities as appropriate based on need.
        This appropriation is from the general 
        fund. 
        Subd. 3.  County and Local
        Preservation Projects                                 1,150,000
        To be allocated to county and local 
        jurisdictions as matching money for 
        historic preservation projects of a 
        capital nature.  Grant recipients must 
        be public entities and must match state 
        funds on at least an equal basis.  The 
        facilities must be publicly owned.  
        $175,000 of this appropriation is for 
        the Veterans Memorial Hall Project at 
        the St. Louis County Heritage and Arts 
        Center. 
        This appropriation is from the general 
        fund. 
        Subd. 4.  Split Rock Lighthouse
        Visitor Center Improvements                             780,000
        To design, renovate, and expand public 
        restrooms and related facilities at the 
        Split Rock Lighthouse visitor center. 
        This appropriation is from the general 
        fund. 
        Subd. 5.  Northwest Company Fur 
        Post Interpretive Center                              1,500,000
        To design, construct, furnish, and 
        equip the North West Company Fur Post 
        Interpretive Center. 
        Subd. 6.  Historic Fort Snelling                        600,000 
        For the abatement of hazardous 
        materials at Historic Fort Snelling and 
        design for the renovation of building 
        no. 17 at Fort Snelling for its 
        possible future use as the Fort 
        Snelling International Hostel. 
        Hosteling International of Minnesota 
        must enter into a lease with the 
        Minnesota historical society to operate 
        the hostel.  State operating funds must 
        not be used for the operation and 
        maintenance of the hostel. 
        This appropriation is from the general 
        fund. 
        Subd. 7.  St. Anthony Falls 
        Heritage Education Center                             4,000,000
        For structural stabilization, landscape 
        improvements of a capital nature, and 
        design in the St. Anthony Falls 
        Historic District. 
        Subd. 8.  Herman Monument in
        New Ulm                                                 400,000
        For a grant to the city of New Ulm for 
        the restoration, enhancement, and 
        protection of Herman Monument.  The 
        appropriation must be matched with 
        nonstate contributions sufficient to 
        provide and install the four decorative 
        copper lions depicted in Julius 
        Berndt's 1885 architectural drawings of 
        the monument.  The nonstate 
        contribution may be any combination of 
        materials, in-kind, or cash 
        contributions.  The city of New Ulm, in 
        consultation with the director of the 
        state historical society, must develop 
        interpretive displays depicting the 
        significance of Herman in the history 
        of German people and their immigration 
        to America and with the director of the 
        office of tourism to develop and 
        implement a program to inform and 
        attract national and international 
        visitors to New Ulm and Herman Monument.
        The appropriation is available 
        proportionally as the match is raised 
        by the city of New Ulm.  
        This appropriation is from the general 
        fund. 
        Subd. 9.  Treaty Site History
        Center                                                  400,000
        For a grant to the Nicollet county 
        historical society to design and 
        construct a new central exhibit at the 
        treaty site history center, subject to 
        the requirements of Minnesota Statutes, 
        section 16A.695.  This appropriation is 
        not available until an equal amount has 
        been committed from nonstate sources. 
        This appropriation is from the general 
        fund. 
        Subd. 10.  Humphrey Museum and
        Learning Center, Waverly                              1,000,000
        For a grant to the city of Waverly to 
        renovate the existing village hall as 
        the Hubert H. Humphrey Museum and 
        Learning Center.  The city may enter 
        into a lease or management agreement 
        for the center subject to Minnesota 
        Statutes, section 16A.695.  It is 
        expected that the city of Waverly will 
        construct an addition to the building 
        with funds from nonstate sources.  
        Subd. 11.  Bemidji Historic Railroad
        Depot                                                   650,000
        For a grant to the city of Bemidji to 
        pay up to one-half of the total costs, 
        including acquisition, design, other 
        preliminary work, construction costs, 
        furniture, fixtures, and equipment, to 
        convert an abandoned historic railroad 
        depot within the city to a historical 
        museum and facility for the Beltrami 
        county historical society.  This 
        appropriation is in addition to the 
        appropriation of $50,000 for the same 
        project in Laws 1997, chapter 200, 
        article 1, section 18, subdivision 5, 
        paragraph (g). 
        This appropriation is from the general 
        fund. 
        Subd. 12.  Montevideo Railroad
        Depot                                                   130,000
        For a grant to the city of Montevideo 
        for exterior improvements to the city's 
        historic railroad depot and for design 
        and development of a related parking 
        area, trailhead, and public facilities 
        at the site. 
        This appropriation is from the general 
        fund. 
        Subd. 13.  Red River Valley Center                    1,000,000 
        For a grant to the city of Moorhead for 
        capital remodeling and new construction 
        to expand the Red River Valley Center 
        under Minnesota Statutes, section 
        138.93.  The state's share of the 
        remodeling and expansion must not 
        exceed 50 percent of the cost of the 
        project. 
        This appropriation is from the general 
        fund. 
        Sec. 26.  BOND SALE EXPENSES                            500,000 
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8.  This 
        appropriation is from the bond proceeds 
        fund. 
           Sec. 27.  [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 $463,795,000 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 transportation fund, the 
        commissioner of finance, on request of the governor, shall sell 
        and issue bonds of the state in an amount up to $34,000,000 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. 28.  Minnesota Statutes 1996, section 16A.105, is 
        amended to read: 
           16A.105 [DEBT CAPACITY FORECAST.] 
           By December 1 of each even-numbered In February and 
        November of each year the governor commissioner shall submit to 
        the legislature prepare a debt capacity forecast to be delivered 
        to the governor and legislature according to section 16A.103, 
        subdivision 1.  The debt capacity forecast must include 
        statements of the indebtedness of the state for bonds, notes, 
        and other forms of long-term general obligation 
        indebtedness that are not accounted for in proprietary or 
        fiduciary funds, including general obligation bonds, moral 
        obligation bonds, revenue bonds, loans, grants payable, and 
        capital leases.  The forecast must show the actual amount of the 
        debt service for at least the past two completed fiscal years, 
        and the estimated amount for the current fiscal year and the 
        next six fiscal years, the debt authorized and unissued, the 
        condition of the sinking funds, and the borrowing capacity for 
        the next six fiscal years. 
           Sec. 29.  Minnesota Statutes 1996, section 16A.11, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PART THREE:  DETAILED CAPITAL BUDGET.] The 
        detailed capital budget must include recommendations for capital 
        projects to be funded during the next six fiscal years.  It must 
        be submitted with projects rank ordered in two ways:  in order 
        of importance among all budget projects as 
        determined recommended by the governor, and in order of 
        importance among that agency's requests as determined by the 
        agency originating the request. 
           Sec. 30.  Minnesota Statutes 1996, section 16A.11, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [BUILDING MAINTENANCE.] The detailed operating 
        budget must include amounts necessary to maintain state 
        buildings.  The commissioner of finance, in consultation with 
        the commissioner of administration, the board of trustees of the 
        Minnesota state colleges and universities, and the regents of 
        the University of Minnesota, shall establish budget guidelines 
        for building maintenance appropriations.  Unless otherwise 
        provided by the commissioner of finance, the amount to be 
        budgeted each year for building maintenance is two percent of 
        the cost of the building, adjusted up or down depending on the 
        age and condition of the building. 
           Sec. 31.  Minnesota Statutes 1996, section 16A.501, is 
        amended to read: 
           16A.501 [REPORT ON MATCHING MONEY EXPENDITURE OF BOND 
        PROCEEDS.] 
           The commissioner of finance must report annually to the 
        legislature on the degree to which entities receiving 
        appropriations of bond proceeds contingent upon obtaining 
        matching money have been successful in raising have encumbered 
        or expended that money.  The report must be submitted to the 
        chairs of the house of representatives ways and means committee 
        and the senate finance committee by February 1 of each year. 
           Sec. 32.  Minnesota Statutes 1997 Supplement, section 
        16A.641, subdivision 4, is amended to read: 
           Subd. 4.  [SALE AND ISSUANCE.] State bonds must be sold and 
        issued upon sealed competitive bids in the manner and on the 
        terms and conditions determined by the commissioner in 
        accordance with the laws authorizing them and subject to the 
        approval of the attorney general, but not subject to chapter 14, 
        including section 14.386.  For each series, in addition to 
        provisions required by subdivision 3, the commissioner may 
        determine:  
           (1) the time, place, and notice of sale and method of 
        comparing bids; 
           (2) the price, not less than par for highway bonds; 
           (3) the principal amount and date of issue; 
           (4) the interest rates and payment dates; 
           (5) the maturity amounts and dates, not more than 20 years 
        from the date of issue, subject to subdivision 5; 
           (6) the terms, if any, on which the bonds may or must be 
        redeemed before maturity, including notice, times, and 
        redemption prices; and 
           (7) the form of the bonds and the method of execution, 
        delivery, payment, registration, conversion, and exchange, in 
        accordance with section 16A.672.  
           Sec. 33.  Minnesota Statutes 1996, section 16B.30, is 
        amended to read: 
           16B.30 [GENERAL AUTHORITY.] 
           (a) Subject to other provisions in this chapter, the 
        commissioner shall supervise and control the making of all 
        contracts for the construction of buildings and for other 
        capital improvements to state buildings and structures, other 
        than buildings and structures under the control of the board of 
        trustees of the Minnesota state colleges and 
        universities.  Except as provided in paragraph (b), a state 
        agency may not undertake improvements of a capital nature 
        without specific legislative authority. 
           (b) Specific legislative authority is not required for 
        repairs or minor capital projects financed with operating 
        appropriations or agency receipts that: 
           (1) are undertaken for asset preservation or code 
        compliance purposes; 
           (2) do not materially increase the net square footage of a 
        facility; and 
           (3) do not materially increase the cost of agency programs. 
           Unless the commissioner determines that an urgency exists, 
        the commissioner of an agency undertaking a project with a cost 
        in excess of $50,000 pursuant to this paragraph shall notify the 
        chairs of the senate finance committee, the house capital 
        investment committee, the house ways and means committee, the 
        appropriate house and senate finance divisions, and the director 
        of the legislative coordinating commission prior to incurring 
        any contractual obligation with regard to the project.  Any 
        agency undertaking any project pursuant to this paragraph during 
        fiscal year 1999 must report all such projects to the 
        legislature by January 1, 2000. 
           Sec. 34.  Minnesota Statutes 1997 Supplement, section 
        16B.335, subdivision 1, is amended to read: 
           Subdivision 1.  [CONSTRUCTION AND MAJOR REMODELING.] (a) 
        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, a substantial alteration of the exterior 
        dimensions addition to an existing building, or a substantial 
        change to the 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 or from the predesign submittal.  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. 
           (b) Capital projects exempt from the requirements of this 
        section subdivision include construction, renovation, or 
        improvements to dams, demolition or decommissioning of state 
        assets, hazardous material projects, utility infrastructure 
        projects, environmental testing, parking lots, exterior 
        lighting, fencing, highway rest areas, truck stations, storage 
        facilities not consisting primarily of offices or heated work 
        areas, roads, bridges, trails, bike paths pathways, campgrounds, 
        athletic fields, dams, floodwater retention systems, water 
        access sites, harbors, sewer separation projects, water and 
        wastewater facilities, campgrounds, roads, bridges, port 
        development projects for which the commissioner of 
        transportation has entered into an assistance agreement under 
        section 457A.04, ice centers, or any other capital project with 
        a construction cost of less than $200,000 $500,000. 
           Sec. 35.  Minnesota Statutes 1996, section 85.019, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [NATURAL AND SCENIC AREAS.] The commissioner 
        shall administer a program to provide grants to units of 
        government and school districts for the acquisition and 
        betterment of natural and scenic areas such as blufflands, 
        prairies, shorelands, wetlands, and wooded areas.  A grant may 
        not exceed 50 percent or $200,000 $500,000, whichever is less, 
        of the costs of acquisition and betterment of land acquired 
        under this subdivision. 
           Sec. 36.  Minnesota Statutes 1996, section 103F.725, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [FINANCIAL ASSISTANCE; LOANS.] (a) Up to 
        $24,000,000 $36,000,000 of the balance in the water pollution 
        control revolving fund in section 446A.07, as determined by the 
        public facilities authority shall be appropriated, may be 
        provided to the commissioner for the establishment of a clean 
        water partnership loan program. 
           (b) The agency may award loans for up to 100 percent of the 
        costs associated with activities identified by the agency as 
        best management practices pursuant to section 319 and section 
        320 of the federal Water Quality Act of 1987, as amended, 
        including associated administrative costs. 
           (c) Loans may be used to finance clean water partnership 
        grant project eligible costs not funded by grant assistance. 
           (d) The interest rate, at or below market rate, and the 
        term, not to exceed 20 years, shall be determined by the agency 
        in consultation with the public facilities authority. 
           (e) The repayment must be deposited in the water pollution 
        control revolving fund under section 446A.07. 
           (f) The local unit of government receiving the loan is 
        responsible for repayment of the loan. 
           (g) For the purpose of obtaining a loan from the agency, a 
        local government unit may provide to the agency its general 
        obligation note.  All obligations incurred by a local government 
        unit in obtaining a loan from the agency must be in accordance 
        with chapter 475, except that so long as the obligations are 
        issued to evidence a loan from the agency to the local 
        government unit, an election is not required to authorize the 
        obligations issued, and the amount of the obligations shall not 
        be included in determining the net indebtedness of the local 
        government unit under the provisions of any law or chapter 
        limiting the indebtedness. 
           Sec. 37.  Minnesota Statutes 1996, section 116.16, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RULES.] (a) The agency shall promulgate 
        permanent rules for the administration of grants and loans 
        authorized to be made under the water pollution control program, 
        which rules, however, shall not be applicable to the issuance of 
        bonds by the commissioner of finance as provided in section 
        116.17.  The rules shall contain as a minimum: 
           (1) procedures for application by municipalities; 
           (2) conditions for the administration of the grant or loan; 
           (3) criteria for the ranking of projects in order of 
        priority for grants or loans, based on factors including the 
        extent and nature of pollution, technological feasibility, 
        assurance of proper operation, maintenance and replacement, and 
        participation in multimunicipal systems; and 
           (4) such other matters as the agency and the commissioner 
        find necessary to the proper administration of the grant program.
           (b) The agency shall award the amount of additional 
        priority points necessary to place a project in the fundable 
        range of the intended use plan if the agency determines that the 
        project would repair a facility that is an imminent threat to 
        discharge untreated or partially treated sewage to the Boundary 
        Waters Canoe Area Wilderness if it fails.  
           (c) For purposes of awarding independent state grants, the 
        agency may by rule waive the federal 20-year planning 
        requirement for municipalities with a population of less than 
        1,500. 
           Sec. 38.  Minnesota Statutes 1997 Supplement, section 
        116.18, subdivision 3c, is amended to read: 
           Subd. 3c.  [INDIVIDUAL ON-SITE TREATMENT SYSTEMS AND 
        ALTERNATIVE DISCHARGING SEWAGE 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 agency to municipalities to reimburse 
        owners of individual on-site wastewater treatment systems or 
        alternative discharging sewage 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) An alternative discharging sewage system is a system 
        permitted under section 115.58 that: 
           (1) serves one or more dwellings and other establishments; 
           (2) discharges less than 10,000 gallons of water per day; 
        and 
           (3) uses any treatment and disposal methods other than 
        subsurface soil treatment and disposal. 
           (d) Municipalities may apply yearly for grants of up to 50 
        percent of the cost of replacing or upgrading individual on-site 
        treatment systems, including conversion to an alternative 
        discharging sewage system, 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, 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 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) (e) 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) (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.  
           Sec. 39.  Minnesota Statutes 1996, section 116.182, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        section, the terms defined in this subdivision have the meanings 
        given them. 
           (b) "Agency" means the pollution control agency. 
           (c) "Authority" means the public facilities authority 
        established in section 446A.03. 
           (d) "Commissioner" means the commissioner of the pollution 
        control agency. 
           (e) "Essential project components" means those components 
        of a wastewater disposal system that are necessary to convey or 
        treat a municipality's existing wastewater flows and loadings, 
        and future wastewater flows and loadings based on 50 percent of 
        the projected residential growth of the municipality for a 
        20-year period. 
           (f) "Municipality" means a county, home rule charter or 
        statutory city, town, the metropolitan council, an Indian tribe 
        or an authorized Indian tribal organization; or any other 
        governmental subdivision of the state responsible by law for the 
        prevention, control, and abatement of water pollution in any 
        area of the state. 
           (g) "Outstanding international resource value waters" are 
        the surface waters of the state in the Lake Superior Basin, 
        other than Class 7 waters and those waters designated as 
        outstanding resource value waters. 
           (h) "Outstanding resource value waters" are those that have 
        high water quality, wilderness characteristics, unique 
        scientific or ecological significance, exceptional recreation 
        value, or other special qualities that warrant special 
        protection. 
           Sec. 40.  Minnesota Statutes 1996, section 116.182, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In 
        addition to other applicable statutes or rules that are required 
        to receive financial assistance consistent with this 
        subdivision, the commissioner may not approve or certify a 
        project to the public facilities authority for wastewater 
        financial assistance unless the following requirements are met: 
           (1) prior to the initiation of the public facilities 
        planning process for a new wastewater treatment system, the 
        project proposer gives written notice to all municipalities as 
        defined in 116.82 within ten miles of the proposed project 
        service area, including the county in which the project is 
        located, the office of strategic and long-range planning, and 
        the pollution control agency.  The notice shall state the 
        proposer's intent to begin the facilities planning process and 
        provide a description of the need for the proposed project.  The 
        notice also shall request a response within 30 days of the 
        notice date from all government units who wish to receive and 
        comment on the future facilities plan for the proposed project; 
           (2) during development of the facility plan's analysis of 
        service alternatives, the project proposer must request 
        information from all municipalities and sanitary districts which 
        have existing systems that have current capacity to meet the 
        proposer's needs or can be upgraded to meet those needs.  At a 
        minimum, the proposer must notify in writing those 
        municipalities and sanitary districts whose corporate limits or 
        boundaries are within three miles of the proposed project's 
        service area; 
           (3) 60 days prior to the municipality's public hearing on 
        the facilities plan, a copy of the draft facilities plan and 
        notice of the public hearing on the facilities plan must be 
        given to the local government units who previously expressed 
        interest in the proposed project under clause (1); 
           (4) for a proposed project located or proposed to be 
        located outside the corporate limits of a city, the affected 
        county has certified to the agency that the proposed project is 
        consistent with the applicable county comprehensive plan and 
        zoning and subdivision regulations; and 
           (5) copies of the notifications required under clauses (1) 
        and (2), as well as the certification from the county and a 
        summary of the comments received, must be included by the 
        municipality in the submission of its facilities plan to the 
        pollution control agency, along with other required items as 
        specified in the agency's rules. 
           This subdivision does not apply to the western Lake 
        Superior sanitary district or the metropolitan council. 
           Sec. 41.  [116J.561] [CREATION OF ACCOUNT.] 
           A redevelopment account is created in the general fund.  
        Money in the account may be used to make grants as provided in 
        section 116J.564 and to pay for the commissioner's costs in 
        reviewing applications and making grants. 
           Sec. 42.  [116J.562] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE OF APPLICATION.] For purposes of 
        sections 116J.561 to 116J.565, the terms in subdivisions 2 to 5 
        have the meanings given. 
           Subd. 2.  [REDEVELOPMENT COSTS OR COSTS.] "Redevelopment 
        costs" or "costs" means the costs of land acquisition, 
        demolition, infrastructure improvement, and ponding, or other 
        environmental infrastructure. 
           Subd. 3.  [DEVELOPMENT AUTHORITY.] "Development authority" 
        includes a statutory or home rule charter city, county, housing 
        and redevelopment authority, economic development authority, and 
        port authority. 
           Subd. 4.  [METROPOLITAN AREA.] "Metropolitan area" means 
        the seven-county metropolitan area, as defined in section 
        473.121, subdivision 2. 
           Subd. 5.  [MUNICIPALITY.] "Municipality" means the 
        statutory or home rule charter city, town, or, in the case of 
        unorganized territory, county in which the redevelopment is 
        located. 
           Subd. 6.  [PUBLIC BENEFITS.] "Public benefits" include job 
        creation, environmental benefits to the state and region, 
        efficient use of public transportation, efficient use of 
        existing infrastructure, provision of affordable housing, 
        multiuse development that constitutes community rebuilding 
        rather than single-use development, crime reduction, blight 
        reduction, community stabilization, and property tax base 
        maintenance or improvement. 
           Sec. 43.  [116J.563] [GRANT APPLICATIONS.] 
           Subdivision 1.  [APPLICATION REQUIRED.] To obtain a 
        redevelopment grant, the development authority shall apply to 
        the commissioner.  The governing body of the municipality must 
        approve, by resolution, the application. 
           Subd. 2.  [REQUIRED CONTENT.] The commissioner shall 
        prescribe and provide the application form.  The application 
        must include at least the following information: 
           (1) identification of the site; 
           (2) a redevelopment plan for the site; 
           (3) a detailed estimate, along with necessary supporting 
        evidence, of the total redevelopment costs for the site; 
           (4) an assessment of the development potential or likely 
        use of the site after completion of the redevelopment plan, 
        including any specific commitments from third parties to 
        construct improvements on the site; 
           (5) the manner in which the municipality will meet the 
        local match requirement; and 
           (6) any additional information or material that the 
        commissioner prescribes. 
           Sec. 44.  [116J.564] [GRANTS.] 
           The commissioner may make a grant to an applicant 
        development authority to pay for up to 50 percent of the 
        redevelopment costs for a qualifying site.  The determination of 
        whether to make a grant for a site is within the sole discretion 
        of the commissioner, subject to sections 116J.561 to 116J.566 
        and available unencumbered money in the redevelopment account.  
        The commissioner's decisions and application of the priorities 
        under this section are not subject to judicial review, except 
        for abuse of discretion. 
           Sec. 45.  [116J.565] [PRIORITIES.] 
           Subdivision 1.  [CHARACTERISTICS.] (a) If applications for 
        grants exceed the available appropriations, grants shall be made 
        for sites that, in the commissioner's judgment, provide the 
        highest return in public benefits for the public costs 
        incurred.  In making this judgment, the commissioner shall give 
        priority to redevelopment projects with one or more of the 
        following characteristics: 
           (1) the need for redevelopment in conjunction with 
        contamination remediation needs; 
           (2) the redevelopment project meets current tax increment 
        financing requirements for a redevelopment district and tax 
        increments will contribute to the project; 
           (3) the redevelopment potential within the municipality; 
           (4) proximity to public transit if located in the 
        metropolitan area; and 
           (5) multijurisdictional projects that take into account the 
        need for affordable housing, transportation, and environmental 
        impact. 
           (b) The factors in paragraph (a), clauses (1) to (5), are 
        not listed in a rank order of priority; rather the commissioner 
        may weigh each factor, depending upon the facts and 
        circumstances, as the commissioner considers appropriate.  The 
        commissioner may consider other factors that affect the net 
        return of public benefits for completion of the redevelopment 
        plan.  The commissioner, notwithstanding the listing of 
        priorities and the goal of maximizing the return of public 
        benefits, shall make grants that distribute available money to 
        sites both within and outside of the metropolitan area.  The 
        commissioner shall provide a written statement of the supporting 
        reasons for each grant.  Unless sufficient applications are not 
        received for qualifying sites outside of the metropolitan area, 
        at least 25 percent of the money provided as grants must be made 
        for sites located outside of the metropolitan area.  The 
        commissioner shall consult with the metropolitan council about 
        metropolitan area grants. 
           Subd. 2.  [APPLICATION CYCLES.] In making grants, the 
        commissioner shall establish semiannual application deadlines in 
        which grants will be authorized from all or part of the 
        available money in the account. 
           Sec. 46.  [116J.566] [LOCAL MATCH REQUIREMENT.] 
           In order to qualify for a grant under sections 116J.561 to 
        116J.567, the municipality must pay for at least one-half of the 
        redevelopment costs as a local match from any money available to 
        the municipality. 
           Sec. 47.  [116J.567] [SALE OF LAND.] 
           Bond proceeds funds in the account may only be used for 
        redevelopment costs for publicly owned property.  Nonbond 
        proceeds funds in the account may be used for redevelopment 
        costs as defined in section 116J.562, subdivision 2, provided 
        that the land upon which the improvements are made will 
        ultimately be sold to a private developer at the fair market 
        value of the land.  Net sale proceeds, up to the amount of the 
        grant, must be paid to the account by the development authority 
        within two years of the sale. 
           Sec. 48.  Minnesota Statutes 1997 Supplement, section 
        124C.498, subdivision 2, is amended to read: 
           Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
        extent money is available, the commissioner of children, 
        families, and learning may approve projects from applications 
        submitted under this section.  The grant money must be used only 
        to design, acquire, construct, expand, remodel, improve, 
        furnish, or equip the building or site of a magnet school 
        facility according to contracts entered into within 24 months 
        after the date on which a grant is awarded. 
           Sec. 49.  Minnesota Statutes 1997 Supplement, section 
        268.917, is amended to read: 
           268.917 [EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
        FACILITIES.] 
           The commissioner may make grants to state agencies and 
        political subdivisions to construct or rehabilitate facilities 
        for Head Start, early childhood and family education programs, 
        other early childhood intervention programs, or demonstration 
        family service centers housing multiagency collaboratives, with 
        priority to centers in counties or municipalities with the 
        highest number percentage of children living in poverty.  The 
        commissioner may also make grants to state agencies and 
        political subdivisions to construct or rehabilitate facilities 
        for crisis nurseries or child visitation centers.  The 
        facilities must be owned by the state or a political 
        subdivision, but may be leased under section 16A.695 to 
        organizations that operate the programs.  The commissioner shall 
        prescribe the terms and conditions of the leases.  A grant for 
        an individual facility must not exceed $200,000 for each program 
        that is housed in the facility, up to a maximum of $500,000 for 
        a facility that houses three programs or more.  The commissioner 
        shall give priority to grants that involve collaboration among 
        sponsors of programs under this section and may give priority to 
        projects that collaborate with child care providers, including 
        all-day and school-age child care programs, special needs care, 
        sick child care, and nontraditional hour care.  The commissioner 
        may give priority to grants for programs that will increase 
        their child care workers' wages as a result of the grant.  At 
        least 25 percent of the amounts appropriated for these 
        grants must be used in conjunction with the youth employment and 
        training programs operated by the commissioner up to $50,000 
        must utilize youthbuild under sections 268.361 to 268.366 or 
        other youth employment and training programs for the labor 
        portion of the construction.  Eligible programs must consult 
        with appropriate labor organizations to deliver education and 
        training.  State appropriations must be matched on a 50 percent 
        basis with nonstate funds.  The matching requirement must apply 
        programwide and not to individual grants. 
           Sec. 50.  Minnesota Statutes 1996, section 446A.072, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TYPE OF SUPPLEMENTAL ASSISTANCE.] Supplemental 
        assistance shall be in the form of zero percent loans, with loan 
        repayments beginning February 20 or August 20 following the 
        scheduled date of the project obtaining grants.  If one year 
        after the initiation of operation of the project, the project 
        does not meet the operational performance standards established 
        by the agency, the grant must be repaid.  Upon receipt of notice 
        from the agency that the project operational performance 
        standards have been met, the authority will forgive the 
        scheduled loan repayments made under this section.  If not 
        forgiven, loan Grant repayments shall be deferred upon request 
        from the commissioner of the agency for six-month periods, 
        provided the commissioner has determined that satisfactory 
        progress is being made to achieve project performance or is 
        developing or implementing a corrective action plan. 
           Sec. 51.  Minnesota Statutes 1996, section 446A.072, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FUNDING LEVEL.] (a) The authority shall provide 
        supplemental assistance for essential project component costs as 
        certified by the commissioner of the pollution control agency 
        under section 116.182, subdivision 4.  
           (b) A municipality may not receive more than $4,000,000 
        under this section unless specifically approved by law. 
           (c) The authority will calculate the grant amount needed 
        for the essential project component costs by first determining 
        the amount needed to reduce a municipality's monthly residential 
        sewer service charge to $25 or to an annual residential sewer 
        service charge in excess of 1.5 percent of the municipality's 
        median household income, whichever is less, and then multiplying 
        that amount by 80 percent to determine the actual award amount 
        to supplement loans under section 446A.07 or provide up to 
        one-third of the amount of the grant funding level required by 
        USDA/RECD for projects listed on the agency's intended use plan. 
           (d) The authority shall provide supplemental assistance for 
        up to one-half of the eligible grant funding level determined by 
        the United States Department of Agriculture Rural Development 
        funding for projects listed on the agency's project priority 
        list, in priority order.  For municipalities that are not 
        eligible for United State Department of Agriculture Rural 
        Development funding for wastewater, the authority shall provide 
        supplemental assistance for:  (1) essential project component 
        costs calculated by first determining the amount needed to 
        reduce a municipality's annual residential sewer costs to 1.4 
        percent of the municipality's median household income or $25 per 
        month per household, whichever is greater, and then multiplying 
        that amount by 80 percent to determine the actual award amount 
        to supplement loans under section 446A.07; and (2) up to 50 
        percent of the incremental costs specifically identified by the 
        agency as being attributable to more stringent wastewater 
        standards required to protect outstanding resource value waters 
        or outstanding international resource value waters. 
           (d) Notwithstanding paragraph (b), in the event that a 
        municipality's monthly residential sewer service charges average 
        above $50, the authority will provide 90 percent of the grant 
        amount needed to reduce the average monthly sewer service charge 
        to $50, provided the project is ranked in the top 50 percentile 
        of the agency's intended use plan. 
           (e) Notwithstanding paragraphs (b), (c), and (d), a 
        municipality with an annual median household income of $40,000 
        or greater shall not be eligible for a grant, except for 
        incremental costs specifically identified by the agency as being 
        attributable to more stringent wastewater standards required to 
        protect outstanding resource value waters or outstanding 
        international resource value waters. 
           (f) The authority shall provide supplemental assistance to 
        a municipality that would not otherwise qualify for supplemental 
        assistance if: 
           (1) the municipality voluntarily accepts a sewer connection 
        from another governmental unit to serve residential, industrial, 
        or commercial developments that were completed before March 1, 
        1996, or are on lots whose plats were recorded before that date; 
        and 
           (2) fees charged by the municipality for the connection 
        must take into account state and federal grants used by the 
        municipality for the construction of the treatment plant. 
        The amount of supplemental assistance under this paragraph must 
        be sufficient to reduce debt service payments under section 
        446A.07 to an extent equivalent to a zero percent loan in an 
        amount up to the other governmental unit's project costs 
        necessary for connection.  Eligibility for supplemental 
        assistance under this paragraph ends three years after the 
        agency certifies that the connection has met the operational 
        performance standards established by the agency. 
           Sec. 52.  Minnesota Statutes 1996, section 446A.072, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [PLANNING GRANTS.] In order to determine the 
        feasibility of providing wastewater treatment in unsewered areas 
        and encourage multijurisdictional coordination, the authority 
        may provide grants to local governments to prepare preliminary 
        engineering plans and develop, as appropriate, intermunicipal 
        agreements, joint powers boards, or sanitary sewer districts.  
        Planning grants shall be equal to one-half of the eligible 
        engineering, legal, and administrative costs as determined by 
        the authority, up to a maximum of $50,000.  The authority shall 
        award planning grants based on the severity of the environmental 
        need and the potential for cooperation among local governments. 
           Sec. 53.  Minnesota Statutes 1997 Supplement, section 
        462A.202, subdivision 3a, is amended to read: 
           Subd. 3a.  [PERMANENT RENTAL HOUSING.] The agency may make 
        loans, with or without interest, to cities and counties to 
        finance the construction, acquisition, or rehabilitation of 
        affordable, permanent, publicly owned rental housing located in 
        the area designated under Presidential Declaration of Major 
        Disaster, DR-1175.  Loans made under this subdivision are 
        subject to the restrictions of subdivision 7.  In making loans 
        under this subdivision, the agency shall give priority to 
        projects that increase the supply of affordable family housing. 
           Sec. 54.  Minnesota Statutes 1996, section 473.39, is 
        amended by adding a subdivision to read: 
           Subd. 1f.  [PROHIBITION OF CERTAIN OBLIGATIONS.] The 
        council may not issue obligations for construction of light rail 
        transit in the Hiawatha corridor. 
           Sec. 55.  Minnesota Statutes 1996, section 473.399, is 
        amended to read: 
           473.399 [LIGHT RAIL TRANSIT; REGIONAL PLAN AND COMMUTER 
        RAIL PLANNING.] 
           Subdivision 1.  [GENERAL REQUIREMENTS.] (a) The council 
        shall adopt a regional light rail transit plan to ensure that 
        light rail transit facilities in the metropolitan area will be 
        acquired, developed, owned, and capable of operation in an 
        efficient, cost-effective, and coordinated manner as an 
        integrated and unified system on a multicounty basis in 
        coordination with buses and other transportation modes and 
        facilities.  The plan may be developed and adopted in phases 
        corresponding to phasing of construction of light rail.  To the 
        extent practicable, the council shall incorporate into its plan 
        appropriate elements of the plans of regional railroad 
        authorities in order to avoid duplication of effort. 
           (b) The regional light rail transit plan or first phase of 
        the plan required by this section must be adopted by the council 
        before the commissioner of transportation may begin construction 
        of light rail transit facilities and before the commissioner may 
        expend funds appropriated or obtained through bonding for 
        constructing light rail transit facilities.  Following adoption 
        of the regional plan, each regional railroad authority and the 
        commissioner of transportation shall act in conformity with the 
        plan.  The commissioner shall prepare or amend the final design 
        plans as necessary to make the plans consistent with 
        the regional light rail transit plan. 
           (c) Throughout the development and implementation of the 
        plan, the council shall contract for or otherwise obtain 
        engineering services to assure that the plan adequately 
        addresses the technical aspects of light rail transit. 
           Sec. 56.  Minnesota Statutes 1996, section 473.399, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [INTEGRATED TRANSPORTATION SYSTEM.] The 
        commissioner of transportation, the metropolitan council, and 
        the regional rail authorities shall ensure that the light rail 
        transit and commuter rail facilities are planned, designed, and 
        implemented:  (1) to move commuters and transit users into and 
        out of, as well as within, the metropolitan area, and (2) to 
        ensure that rail transit lines will interface with each other 
        and other transportation facilities and services so as to 
        provide a unified, integrated, and efficient multimodal 
        transportation system. 
           Sec. 57.  Minnesota Statutes 1996, section 473.3994, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FINAL DESIGN PLANS.] (a) If the final design 
        plans incorporate a substantial change from the preliminary 
        design plans with respect to location, length, or termini of 
        routes; general dimension, elevation, or alignment of routes and 
        crossings; location of tracks above ground, below ground, or at 
        ground level; or station locations, before beginning 
        construction, the commissioner shall submit the physical design 
        changed component of final design plans to the governing body of 
        each statutory and home rule city, county, and town in which the 
        route changed component is proposed to be located.  Within 60 
        days after the submission of the plans, the city, county, or 
        town shall review and approve or disapprove the plans for the 
        route changed component located in the city, county, or town.  A 
        local unit of government that disapproves the plans change shall 
        describe specific amendments to the plans that, if adopted, 
        would cause the local unit to withdraw its disapproval.  Failure 
        to approve or disapprove the changed plans in writing within the 
        time period is deemed to be approval, unless an extension is 
        agreed to by the city, county, or town and the commissioner.  
           (b) If the governing body of one or more cities, counties, 
        or towns disapproves the changed plans within the period allowed 
        under paragraph (a), the commissioner may refer the plans, along 
        with any comments of local jurisdictions, to the metropolitan 
        council.  The council shall review the final design plans under 
        the same procedure and with the same effect as provided in 
        subdivision 4 for preliminary design plans. 
           Sec. 58.  Minnesota Statutes 1996, section 473.3994, 
        subdivision 10, is amended to read: 
           Subd. 10.  [CORRIDOR MANAGEMENT COMMITTEE.] A corridor 
        management committee shall be established to advise the 
        commissioner of transportation in the design and construction of 
        light rail transit in each corridor to be constructed.  The 
        corridor management committee shall consist of the following 
        members of the light rail transit joint powers board established 
        pursuant to section 473.3998 and one representative from each 
        city in which the corridor is located.  Additionally, the 
        commissioner of transportation and three representatives of the 
        metropolitan council shall each appoint a member to the 
        committee.  For the corridor between Minneapolis and St. Paul, 
        the University of Minnesota shall appoint one member to the 
        committee.  A member representing the metropolitan council shall 
        chair the committee: 
           (1) one member appointed by the joint powers board 
        established under section 473.3998; 
           (2) one member appointed by each city and county in which 
        the corridor is located; 
           (3) the commissioner of transportation or a designee of the 
        commissioner; 
           (4) two members appointed by the metropolitan council, one 
        of whom shall be designated as the chair of the committee; 
           (5) one member appointed by the metropolitan airports 
        commission, if the designated corridor provides direct service 
        to the Minneapolis-St. Paul international airport; and 
           (6) one member appointed by the president of the University 
        of Minnesota, if the designated corridor provides direct service 
        to the university. 
           The corridor management committee shall advise the 
        commissioner of transportation and the regional railroad 
        authority or authorities in whose jurisdiction the line or lines 
        are located on issues relating to the alternatives analysis, 
        environmental review, preliminary design, preliminary 
        engineering, final design, implementation method, and 
        construction of light rail transit. 
           Sec. 59.  Minnesota Statutes 1996, section 473.3994, 
        subdivision 12, is amended to read: 
           Subd. 12.  [ALTERNATIVES ANALYSIS; ENVIRONMENTAL REVIEW.] 
        For light rail transit lines to be constructed in the 
        metropolitan area, the regional railroad authority or 
        authorities in whose jurisdiction a line or lines are to be 
        constructed and the commissioner of transportation shall jointly 
        prepare an alternatives analysis, the environmental review 
        documents required, and the preliminary engineering plan.  The 
        council must approve the design for the alternatives analysis 
        and the completed alternatives analysis.  The department of 
        transportation shall be the responsible governmental unit.  An 
        alternatives analysis is not required for the Hiawatha corridor. 
           Sec. 60.  Minnesota Statutes 1996, section 473.3998, is 
        amended to read: 
           473.3998 [LIGHT RAIL TRANSIT JOINT POWERS BOARD.] 
           A light rail transit joint powers board shall be formed 
        under section 471.59 consisting of one voting member from the 
        regional rail authorities of Hennepin, Ramsey, Anoka, 
        Washington, Dakota, Scott, and Carver counties. 
           The board shall review and approve light rail transit 
        system standards to be used by the commissioner in designing and 
        building a light rail transit facility and shall review and 
        approve the plan for community involvement and the marketing 
        program.  The board shall advise the corridor management 
        committee established pursuant to section 473.3994, subdivision 
        10, and the commissioner on the method of implementation.  All 
        members of the board shall be members of the corridor management 
        committee established pursuant to section 473.3994, subdivision 
        10. 
           Sec. 61.  Laws 1963, chapter 305, section 1, is amended to 
        read: 
           Section 1.  [DULUTH, CITY OF; ARENA-AUDITORIUM 
        ENTERTAINMENT AND CONVENTION CENTER.] 
           There is hereby created an arena-auditorium administrative 
        board entertainment and convention center authority for the city 
        of Duluth, hereinafter referred to as the board authority, which 
        shall consist of seven the directors, who shall be appointed to 
        membership on such board authority, and who shall have and 
        exercise the powers, perform the duties, and be subject to the 
        obligations, as hereinafter set forth in this act. 
           Sec. 62.  Laws 1963, chapter 305, section 2, is amended to 
        read: 
           Sec. 2.  The board authority created under this act shall 
        consist of seven 11 directors, who shall seven appointed by the 
        city of Duluth and four appointed by the governor.  The 
        directors serve without compensation but who may be reimbursed 
        for authorized out-of-pocket expenses incurred in the 
        fulfillment of their duties.  The original term of three of the 
        directors shall be for one year; the original term of two of the 
        directors shall be for two years; and the original term of two 
        of the directors shall be for three years, and until their 
        respective successors are appointed and qualified.  Subsequent 
        terms of directors appointed by the city shall be for three 
        years.  All terms shall expire on June 30 of the appropriate 
        year.  Directors appointed by the governor serve at the pleasure 
        of the governor.  Whenever a vacancy on such board authority 
        shall occur by reason of resignation, death, removal from the 
        city, or removal for failure or neglect to perform duties of a 
        director, such vacancy shall be filled for the unexpired term.  
        All appointments and removal of directors of the board authority 
        appointed by the city shall be made by the mayor, with the 
        approval of the city council, evidenced by resolution.  Every 
        appointee who shall fail, within ten days after notification of 
        his appointment, to file with the city clerk his oath or 
        affirmation to perform faithfully, honestly, and impartially the 
        duties of his office, shall be deemed to have refused such 
        appointment, and thereupon another person shall be appointed in 
        the manner prescribed in this section. 
           Sec. 63.  Laws 1963, chapter 305, section 3, is amended to 
        read: 
           Sec. 3.  Subdivision 1.  Within 30 days after the members 
        of the board authority shall have qualified for office, the 
        board authority shall meet and organize, and adopt and 
        thereafter may amend such rules and regulations for the conduct 
        of the board authority as the board authority shall deem to be 
        in the public interest and most likely to advance, enhance, 
        foster, and promote the use of such arena-auditorium the 
        entertainment and convention center and its facilities for 
        activities, conventions, events, and athletic and cultural 
        productions.  Such rules and regulations shall at all times be 
        in harmony with this act.  
           Subd. 2.  Such directors shall elect from among their 
        number a president and a vice-president, and shall also elect a 
        secretary who may or may not be a member of such board authority.
        No two of such offices may be held by one director.  The 
        officers shall have the duties and powers usually attendant upon 
        such officers, and such other duties and powers not inconsistent 
        herewith as may be provided by the board authority. 
           Subd. 3.  The authority shall select a specific site within 
        the city of Duluth for location of a national class 
        entertainment and convention center, and may spend money 
        appropriated, or otherwise available to it for that purpose, to 
        acquire property for the center and to plan, design, construct, 
        equip, and furnish the center.  The authority shall administer, 
        promote, and operate the center as a state facility, but for 
        which the state assumes no financial responsibility or liability 
        beyond the amounts appropriated for the facility. 
           Sec. 64.  Laws 1963, chapter 305, section 4, is amended to 
        read: 
           Sec. 4.  Subdivision 1.  The city treasurer of the city of 
        Duluth shall be the treasurer of the board authority.  The 
        treasurer shall receive and have the custody of all moneys of 
        the board authority from whatever source derived, and the same 
        shall be deemed public funds.  The treasurer shall disburse such 
        funds only upon written orders drawn against such funds, signed 
        by the manager and approved by the president, or in his absence, 
        the vice-president of such board authority; and each order shall 
        state the name of the payee and the nature of the claim for 
        which the same is issued.  The treasurer shall keep an account 
        of all monies coming into his hands, showing the source of all 
        receipts and the nature, purpose, and authority of all 
        disbursements, and at least four times each year, at times and 
        in a form to be determined by the city council, the board 
        authority shall file with the city clerk a financial statement 
        of the board authority, showing all receipts and disbursements, 
        the nature of the same, the moneys on hand, and the purposes for 
        which the same are applicable, the credits and assets of 
        the board authority, and its outstanding liabilities. 
           Subd. 2.  The board authority has the exclusive power to 
        receive, control, and order the expenditure of any and all 
        moneys and funds pertaining to the arena-auditorium center 
        operations.  
           Subd. 3.  There are hereby created in the treasury of the 
        city of Duluth a special arena-auditorium entertainment and 
        convention center fund, hereinafter referred to as the special 
        fund, and an arena-auditorium entertainment and convention 
        center operating fund, hereinafter referred to as the operating 
        fund.  The moneys in the special fund shall be used solely for 
        the acquisition and preparation of a site, and for the planning, 
        construction, and equipping of the arena-auditorium center.  The 
        special fund shall consist of: 
           (1) All moneys derived from the sale of bonds by the city 
        to provide funds for the acquisition and preparation of a site, 
        and for the planning, construction, and equipping of an 
        arena-auditorium the center.  
           (2) All moneys appropriated or made available to the city 
        of Duluth for the acquisition and preparation of a site, and for 
        the planning, construction, and equipping of the 
        arena-auditorium center. 
           (3) The proceeds of all financial aid or assistance by the 
        city or state governments for the acquisition and preparation of 
        a site, and for the planning, construction, and equipping of the 
        arena-auditorium center. 
           (4) All moneys received from the United States of America 
        to aid in the acquisition and preparation of a site, and for the 
        planning, construction, and equipping of the 
        arena-auditorium center. 
           (5) All moneys received as gifts or contributions to the 
        acquisition and preparation of a site, and for the planning, 
        construction, and equipping of the arena-auditorium center. 
           The operating fund shall be used for maintenance, 
        promotion, operation, or betterment of the arena-auditorium 
        center, and for expenses of the board authority.  The operating 
        fund shall consist of all moneys of the board authority derived 
        from any source other than moneys credited to the special fund 
        as hereinabove provided. 
           Subd. 4.  At least once in each year the city auditor shall 
        make, or cause to be made, at the expense of the board 
        authority, a complete examination and audit of all books and 
        accounts of the aforesaid board authority; and for such purpose 
        the city auditor shall have the authority and power to inspect 
        and examine such books and accounts at any time during regular 
        business hours and such intervals as he may determine.  One copy 
        of such yearly audit shall be filed by the city auditor with the 
        city clerk as a public document. 
           Subd. 5.  The authority shall annually submit to the 
        governor and the legislature a report detailing its activities 
        and finances for the previous year.  The report shall also 
        include a proposed budget for the succeeding two years, showing 
        in reasonable detail estimated operating and nonoperating 
        revenues from all sources, and estimated expenditures for 
        operation, administration, ordinary repair, and debt service. 
           Subd. 6.  The legislative auditor shall make an annual 
        audit of the authority's books and accounts once each year or as 
        often as the legislative auditor's funds and personnel permit. 
           Sec. 65.  Laws 1963, chapter 305, section 5, is amended to 
        read: 
           Sec. 5.  Subdivision 1.  Wherever the word 
        "arena-auditorium" are "center" is used in this act, such words 
        shall mean and include the municipal arena-auditorium 
        cultural it means the entertainment and convention center 
        complex of the city of Duluth, including the land upon which it 
        stands and land appurtenant thereto. 
           Subd. 2.  Notwithstanding anything to the contrary 
        contained in any law, or in the charter of the city of Duluth, 
        or in any ordinance thereof, passed by the city council, or 
        approved by the electors of the city, there is hereby conferred 
        upon such board authority the power and duty to contract for and 
        superintend the erection, construction, equipping and furnishing 
        of such arena-auditorium the center, and to administer, promote, 
        control, direct, manage, and operate such arena-auditorium the 
        center as a municipal facility. 
           Sec. 66.  Laws 1963, chapter 305, section 7, is amended to 
        read: 
           Sec. 7.  Subdivision 1.  No motor vehicle, either privately 
        or publicly owned, may be parked upon any parking lot or 
        facility operated by the board authority except as authorized by 
        this section.  The operation and supervision of all such parking 
        lots and facilities are vested in the board authority.  It may 
        fix and collect rents, charges, or fees in connection with and 
        for the use of any parking lot or facility operated by the board 
        authority. 
           Subd. 2.  [RULES AND REGULATIONS.] The board authority may 
        adopt and enforce rules and regulations governing the parking of 
        motor vehicles upon any such parking lot or facility so operated 
        by it.  Such rules and regulations shall be approved as to form 
        and validity by the city attorney, shall be published once in 
        the official newspaper of the city, and a certified copy of such 
        publication filed with the city clerk, and thereupon such rules 
        and regulations shall have the force of law. 
           Subd. 3.  [REMOVAL AND IMPOUNDING OF VEHICLES.] Any motor 
        vehicle parked upon any parking lot or facility operated by the 
        board authority not in conformity with the rules and regulations 
        of the board authority governing the operation and use thereof 
        shall be deemed a public nuisance and the board authority shall 
        provide for the abatement of such nuisance by rules and 
        regulations, including provision for the removal and impounding 
        of such motor vehicle.  The cost of such removal and impounding 
        shall be a lien against the motor vehicle until paid. 
           Subd. 4.  [VIOLATIONS.] Any person, city official, elective 
        or appointed, firm, association, or corporation which violates 
        any of the provisions of this section or any rule or regulation 
        made by the board authority hereunder is guilty of a misdemeanor 
        and upon conviction thereof shall be punished in the manner 
        provided by law. 
           Subd. 5.  [MONEYS COLLECTED.] All moneys collected by the 
        board authority as rents, charges, or fees in connection with 
        and for the use of any parking lot or facility shall be 
        deposited in the arena-auditorium entertainment and convention 
        center operating fund. 
           Sec. 67.  Laws 1963, chapter 305, section 8, is amended to 
        read: 
           Sec. 8.  The board authority shall have the power: 
           To adopt and alter all bylaws and rules and regulations 
        which it shall from time to time deem best for the conduct of 
        the business of the board authority, and for the use of the 
        facilities of the board authority, and for the purposes of 
        carrying out the objects of this act; but such bylaws, rules, 
        and regulations shall not be in conflict with the terms of this 
        act. 
           To appoint and remove a manager and such other employees as 
        the board authority may deem necessary, who shall not be within 
        the civil service classifications of the city, and to prescribe 
        the duties and fix the compensation and other benefits of such 
        manager and employees, without regard to any provision contained 
        in the charter or any ordinance of the city relating to civil 
        service, or to any provision contained in Minnesota Statutes 
        1961, Sections 197.45 to 197.47, inclusive. 
           To procure and provide for a policy or policies of 
        insurance for the defense and indemnification of the city of 
        Duluth, its officers and employees, and directors, manager, and 
        employees of the board authority, against claims arising against 
        them out of the performance of duty, whether such claims be 
        groundless, or otherwise.  Premiums for any policies of 
        insurance required by this act shall be paid for out of the 
        funds of the arena-auditorium administrative board entertainment 
        convention center authority. 
           To implement and carry out the provisions of section 7 of 
        this act. 
           To utilize the services and facilities of the city so far 
        as the same are offered by appropriate city officials and 
        accepted by the board authority, and to pay the city for all 
        charges and costs for such services. 
           To operate and maintain and to lease from others all 
        facilities necessary or convenient in connection with the 
        arena-auditorium center and to contract for the operation and 
        maintenance of any parts thereof or for services to be 
        performed; to lease the whole or parts thereof, and grant 
        concessions, all on such terms and conditions as the board 
        authority may determine. 
           To authorize and direct the city treasurer to invest, in 
        the manner provided by law, any funds held in reserve, or 
        sinking funds, or any funds not required for immediate 
        disbursement. 
           To fix, alter, charge, and collect rates, fees, and all 
        other charges to be made for all services or facilities 
        furnished by the board authority for the use of the 
        arena-auditorium center facilities by any persons or public or 
        private agencies utilizing such services or facilities. 
           To make and execute contracts, agreements, instruments, and 
        other arrangements necessary or convenient to the exercise of 
        its powers. 
           Sec. 68.  Laws 1963, chapter 305, section 9, is amended to 
        read: 
           Sec. 9.  The manager of the arena-auditorium center shall 
        be responsible for the custody and control of all moneys 
        received and collected from the daily operations of the 
        arena-auditorium center until such moneys are delivered to the 
        city treasurer and he shall have obtained a receipt therefor, or 
        until such moneys are deposited in a bank account under control 
        of the city treasurer. 
           The manager shall give bond in favor of the city of Duluth 
        in a sum equal to twice the amount of money which will probably 
        be in his hands at any time during any one year, that amount to 
        be determined at least annually by the board authority; such 
        bond to be conditioned upon the faithful discharge of his 
        official duties, and be approved as to form, correctness, and 
        validity by the city attorney, and filed with the city auditor; 
        such bond, however, shall not exceed $300,000.  Premiums for 
        such bonds shall be paid out of funds of the board authority. 
           Sec. 69.  Laws 1963, chapter 305, section 10, is amended to 
        read: 
           Sec. 10.  The board authority shall regulate the making of 
        bids and the letting of contracts through procedure established 
        by the board authority, subject to the following conditions: 
           (a) In all cases of work to be done by contract or the 
        purchase of property of any kind, or the rendering of any 
        service to the board authority other than professional services, 
        competitive bids shall be secured before any purchase is made or 
        any contract awarded where the amount involved exceeds the sum 
        of $2,000. 
           (b) All bids shall be sealed when received, shall be opened 
        in public at the hour stated in the notice; and all original 
        bids, together with all documents pertaining to the award of the 
        contract, shall be retained and made a part of the permanent 
        file or record, and shall be open to public inspection. 
           (c) Purchases of $2,000 or less may, through procedure 
        established by the board authority, be delegated to 
        the auditorium center manager.  Contracts involving more than 
        $2,000 shall be awarded only after authorization by the board 
        authority. 
           (d) The board authority may reject, or through procedure 
        established by the board authority, authorize the auditorium 
        center manager to reject, any and all bids. 
           (e) Contract shall be let to the lowest responsible bidder, 
        and purchases shall be made from the responsible bidder who 
        offers to furnish the article desired for the lowest sum. 
           (f) In determining the lowest responsible bidder, in 
        addition to price, the following may be considered: 
           (1) The ability, capacity, and skill of the bidder to 
        perform the contract or provide the service required. 
           (2) Whether the bidder can perform the contract or provide 
        the service promptly, or within the time specified, without 
        delay or interference. 
           (3) The character, integrity, reputation, judgment, 
        experience and efficiency of the bidder. 
           (4) The quality of performance of previous contracts or 
        services. 
           (5) The sufficiency of the financial resources and ability 
        of the bidder to perform the contract or provide the service. 
           (6) The quality, availability, and adaptability of the 
        supplies or contractual service to the particular use required. 
           (7) The ability of the bidder to provide future maintenance 
        and service for the use of the subject of the contract. 
           (8) The number and scope of conditions attached to the bid. 
           (g) Specifications shall not be so prepared as to exclude 
        all but one type or kind, but shall include competitive supplies 
        and equipment; provided, however, that unique or noncompetitive 
        articles which are determined by the board authority to be 
        sufficiently superior for the service intended by the board 
        authority, may be purchased without regard to other bids. 
           Sec. 70.  Laws 1963, chapter 305, section 11, is amended to 
        read: 
           Sec. 11.  The arena-auditorium board authority shall not 
        exercise the powers of eminent domain, but the city may acquire 
        lands for the arena-auditorium authority by exercise of the 
        power of eminent domain at the request and expense of the board 
        authority.  The arena-auditorium board authority shall not have 
        the power to raise any moneys by taxation in any form 
        whatsoever, nor to levy assessments for local improvements, nor 
        have the power to pledge the full faith and credit of the city. 
           Sec. 71.  Laws 1986, chapter 396, section 2, subdivision 1, 
        as amended by Laws 1987, chapter 55, section 4, and Laws 1989, 
        chapter 54, section 2, is amended to read: 
           Subdivision 1.  [ACTIVITIES; CONTRACTS.] The city may 
        acquire, design, construct, equip, improve, expand, control, 
        operate, and maintain the convention center and related 
        facilities.  The city shall have all powers necessary or 
        convenient for those purposes and may enter into any contract 
        for those purposes, including the financing of the convention 
        center and any related facilities. 
           The city may contract for construction materials, supplies, 
        and equipment in accordance with Minnesota Statutes, section 
        471.345, except that it may enter into contracts with persons, 
        firms, or corporations to perform one or more or all of the 
        functions of architect, engineer, and construction manager with 
        respect to all or part of a project to build or remodel the 
        convention center and related facilities.  Contractors shall be 
        selected through the process of public bidding provided that it 
        shall be permissible for the city to narrow the listing of 
        eligible bidders to those which the city determines to possess 
        sufficient expertise to perform the intended functions and the 
        city may negotiate with the three lowest responsible bidders to 
        achieve the lowest possible bid.  Notwithstanding any other law 
        or charter provision to the contrary, the city may, at the 
        discretion of the city council, enter into agreements relating 
        to the convention center, related facilities or any other city 
        construction project with appropriate labor organizations and 
        contractors which provide that no strike or lockout may be 
        ordered during the term of the agreements.  These provisions and 
        necessary procedures may be utilized for the purpose of 
        maintaining employment stability and avoiding delay or 
        interference with the performance of the fast-track construction 
        schedule in connection with the project.  The city may require 
        any construction manager to certify a construction price and 
        completion date to the city.  The city may require the posting 
        of a bond in an amount determined by the city to cover any costs 
        which may be incurred over and above the certified price, 
        including but not limited to costs incurred by the city or loss 
        of revenues resulting from incomplete construction on the 
        completion date and any other obligations the city may require 
        the construction manager to bear.  The city shall secure surety 
        bonds as required in Minnesota Statutes, section 574.26, 
        securing payment of just claims in connection with all public 
        work undertaken by it.  Persons entitled to the protection of 
        the bonds may enforce them as provided in Minnesota Statutes, 
        sections 574.28 to 574.32, and shall not be entitled to a lien 
        on any property of the city under the provisions of Minnesota 
        Statutes, sections 514.01 to 514.16. 
           Sec. 72.  Laws 1990, chapter 610, article 1, section 16, 
        subdivision 4, is amended to read: 
        Subd. 4.  For the labor 
        history center                                          550,000
        This appropriation is to plan and 
        design the Labor History Center.  The 
        society shall develop a facility 
        program document that defines the space 
        and programming needs of the center 
        including operating expenses.  The 
        society shall determine, through a site 
        location assessment study, the location 
        of the center on a site adjacent to the 
        history center and prepare working 
        drawings for the project.  Cost 
        estimates for all elements necessary to 
        complete the project must be submitted 
        to the chairs of the agriculture, 
        transportation, and semi-states 
        divisions of the senate finance and 
        house appropriations committees for 
        their recommendations.  The 
        recommendations are advisory only.  
        Failure or refusal to make a 
        recommendation promptly is deemed a 
        negative recommendation.  The total 
        cost of the project must not exceed 
        $12,500,000 $14,000,000.  The project 
        cost may include exhibits and 
        audio-visual devices and systems. 
           Sec. 73.  Laws 1994, chapter 643, section 2, subdivision 
        13, is amended to read: 
        Subd. 13.  St. Louis County
        Heritage and Arts Center                                750,000
        This appropriation is for a grant to 
        St. Louis county to construct an 
        addition and improvements to the St. 
        Louis county heritage and arts center 
        in Duluth, subject to new Minnesota 
        Statutes, section 16A.695. 
        This appropriation is available only as 
        matched by $2 of nonstate money for 
        every $1 of state money. 
           Sec. 74.  Laws 1996, chapter 463, section 13, subdivision 
        4, as amended by Laws 1997, chapter 246, section 29, is amended 
        to read:  
        Subd. 4.  Renovate Capitol
        Building                                                     
                                                              8,435,000
        $4,800,000 is to predesign, design, and 
        reconstruct the northeast terrace and 
        predesign and design the northwest 
        terrace terraces of the capitol 
        building.  
        $1,400,000 is to renovate the lantern 
        and related structures on the capitol 
        dome. 
        $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. 75.  Laws 1996, chapter 463, section 14, subdivision 
        2, is amended to read: 
        Subd. 2.  Ice Center Grants                           8,000,000
        (a) $6,500,000 is for grants of up to 
        $250,000 each to construct new ice 
        arenas and renovate existing arenas 
        throughout the state, according to 
        criteria in Minnesota Statutes, section 
        240A.09.  
        (b) $500,000 is for renovation grants 
        for arenas that are at least 20 years 
        old, which may be in amounts up to 
        $125,000. 
        (c) All new and renovated facilities 
        receiving grants must be publicly 
        owned.  Projects receiving grants from 
        appropriations in items (a) and, (b), 
        and (d) are exempt from the 
        requirements of Minnesota Statutes, 
        section 16B.335. 
        (d) $1,000,000 of this amount may be 
        used only for a national curling center 
        in the Virginia, Mountain Iron, 
        Gilbert, and Eveleth area.  The 
        facility may only be constructed after 
        endorsement by a national governing 
        body member of the United States 
        Olympic Committee. 
           Sec. 76.  Laws 1996, chapter 463, section 14, subdivision 
        6, is amended to read: 
        Subd. 6.  National Volleyball Center                  2,300,000
        For a grant to the city of Rochester to 
        design, construct, furnish, and equip a 
        national volleyball center, to be 
        located on land owned by the city.  
        This grant is contingent upon a local 
        match of at least $2,300,000 from 
        nonstate sources.  The facility may be 
        constructed only after endorsement by a 
        national governing body member of the 
        United States Olympic Committee.  This 
        project is exempt from the requirements 
        of Minnesota Statutes, section 16B.335. 
           Sec. 77.  Laws 1996, chapter 463, section 22, subdivision 
        7, is amended to read: 
        Subd. 7.  Battle Point                                   500,000 
        For a grant to independent school 
        district No. 115, Cass 
        Lake-Bena, Notwithstanding subdivision 
        1, this appropriation is to the Indian 
        Affairs Council for capital 
        improvements at the Battle Point 
        historic site.  This appropriation may 
        be supplemented with money from other 
        sources. 
           Sec. 78.  Laws 1997, chapter 202, article 1, section 35, as 
        amended by Laws 1997, chapter 246, section 34, and Laws 1997, 
        Second Special Session chapter 2, section 24, 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 $565,457,000 $554,691,000 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 commissioner may use the amount 
        needed of this appropriation to redeem 
        and prepay the state general obligation 
        taxable state various purpose bonds 
        dated July 1, 1988, and to also pay 
        expenses related to redeeming and 
        repaying these bonds.  The amount 
        needed to make the debt service 
        payments is appropriated from the 
        general fund as provided in Minnesota 
        Statutes, section 16A.641. 
           Sec. 79.  [ADVISORY COMMITTEE ON PUBLIC CONVENTION AND 
        CIVIC CENTERS.] 
           Subdivision 1.  [PURPOSE.] The state has a strong interest 
        in the proper development, marketing, and coordinated planning 
        for the use and funding of public convention and civic centers 
        throughout Minnesota.  The state further recognizes the need for 
        a joint effort among convention and civic centers in planning 
        and marketing the wide array of choices of state public centers 
        to the convention and tourist business. 
           Subd. 2.  [ESTABLISHMENT.] The advisory committee on public 
        convention and civic centers is hereby established.  The 
        advisory committee will be made up of the following members: 
           (1) a chair appointed by the governor; 
           (2) one member from any political subdivision receiving a 
        state subsidy for a convention or civic center, to be appointed 
        by the city council or board of county commissioners; 
           (3) four members of the public, appointed by the governor, 
        two of whom are representatives, members, or employees of 
        convention bureaus or trade associations, and two of whom are 
        representatives of other businesses or employee organizations 
        that benefit from the operation of public convention and civic 
        centers; and 
           (4) the commissioner of trade and economic development or 
        the commissioner's designee.  
           Subd. 3.  [DUTIES.] The duties of the advisory committee 
        include: 
           (1) development of methods and principles for coordinating 
        the marketing and use of public convention and civic centers 
        throughout the state; 
           (2) development of a plan to implement coordinated 
        marketing of all the facilities in the state to national, 
        regional, and state conventions and hospitality shows; 
           (3) development, in conjunction with the department of 
        trade and economic development, of an electronic database that 
        will promote the variety of state convention and civic centers 
        to interested parties outside the state including national and 
        international shows; 
           (4) solicitation of advice from the general public, 
        convention and tourist organizations, state companies with an 
        interest in displaying at conventions, and other individuals 
        with regard to the improvement of the use of convention and 
        civic centers; and 
           (5) review of proposals for state funding of new convention 
        and civic centers or major remodeling or additions to existing 
        facilities and preparation of funding recommendations to the 
        governor and legislature. 
           Subd. 4.  [OBLIGATIONS OF GRANT RECIPIENTS.] Any political 
        subdivision that has accepted state funding for a convention or 
        civic center shall: 
           (1) work cooperatively to determine the formula to be 
        applied to economic impact estimates for convention and civic 
        center usage in Minnesota; 
           (2) submit an annual report of the activity of the previous 
        year including usage days; local, state, regional, national, and 
        international conventions hosted; number of hotel room nights 
        generated; and economic impact to the area based on the agreed 
        upon formula; and 
           (3) work cooperatively to generate new meetings and 
        convention business to Minnesota from outside the state and to 
        avoid using the state subsidy to undercut existing in-state 
        business from using other convention and civic center facilities 
        throughout the state. 
           Sec. 80.  [YOUTH ENRICHMENT AND COMMUNITY CENTER GRANTS.] 
           The commissioner of children, families, and learning shall 
        consider establishing a youth enrichment and community center 
        grant program.  The commissioner shall report to the legislature 
        by January 15, 1999, recommendations on whether the program 
        should be established and what criteria should govern the 
        program. 
           Sec. 81.  [RIVERCENTRE ARENA; PROCUREMENT.] 
           (a) With respect to the construction of the RiverCentre 
        Arena, the construction manager may:  (1) guarantee a maximum 
        cost of construction; and (2) provide payment and performance 
        bonds or other security reasonably acceptable to the city in an 
        amount equal to the guaranteed maximum cost of construction, and 
        shall comply with all employment requirements applicable to 
        other city contracts for construction, including prevailing 
        wages, affirmative action, and outreach.  
           (b) The lessee under the arena lease described in paragraph 
        (c) or the construction manager may enter into contracts with 
        contractors for labor, materials, supplies, and equipment to 
        demolish the existing arena and equip and construct the new 
        RiverCentre Arena through the process of public bidding.  
           (c) The lessee or the construction manager may, with the 
        consent of the city lease representative as defined in the arena 
        lease among the city of St. Paul, the civic center authority, 
        and a lessee, dated as of January 15, 1998:  (1) limit the list 
        of eligible bidders to those that the construction manager 
        determines possess sufficient expertise to perform the intended 
        functions; (2) award contracts to the contractors that the 
        construction manager determines provide the best value, which 
        shall not necessarily be the lowest responsible bidder; and (3) 
        for work the construction manager determines to be critical to 
        the completion schedule, the construction manager may award 
        contracts on the basis of competitive proposals or perform work 
        with its own forces without soliciting competitive bids if the 
        construction manager provides evidence of competitive pricing. 
           Sec. 82.  [RIVERCENTRE:  LEASE; LICENSE; REAL ESTATE 
        TAXES.] 
           Notwithstanding any contrary provisions of law or charter, 
        the arena lease among the city, the civic center authority, and 
        a lessee, dated as of January 15, 1998, is authorized and the 
        civic center authority and the city of St. Paul may otherwise 
        lease the use and operation of the civic center arena for any 
        period of time by agreement in which the city retains title to 
        the property.  If the lease of January 15, 1998, is amended to 
        provide that the lessee will make to the city a payment in lieu 
        of taxes of at least $2,500,000 a year, increasing to over 
        $6,000,000 by the end of the lease, the use and operation of the 
        civic center arena, whether by the civic center authority or its 
        licensee or lessee, including any use arising from the arena 
        lease referred to in this section or demolition and construction 
        of the arena, is declared a use, lease, or occupancy for public, 
        governmental, and municipal purposes, and the civic center arena 
        is exempt from taxation by the state or any political 
        subdivision of the state during the use. 
           Sec. 83.  [CANCELLATIONS.] 
           (a) $1,200,000 of the appropriation in Laws 1994, chapter 
        643, section 8, subdivision 2, for homes for state-operated 
        waiver services is canceled.  The bond sale authorization in 
        Laws 1994, chapter 643, section 31, subdivision 1, is reduced by 
        $1,200,000. 
           (b) The $10,000,000 appropriation from the state 
        transportation fund in Laws 1994, chapter 643, section 15, 
        subdivision 6, for light rail transit is canceled.  The bond 
        authorization in Laws 1994, chapter 643, section 31, subdivision 
        2, is reduced by $10,000,000. 
           (c) The $150,000 appropriation from the bond proceeds fund 
        under Laws 1994, chapter 643, section 23, subdivision 31, as 
        added by Laws 1997, chapter 246, section 25, to the commissioner 
        of natural resources for a grant to the city of Taylors Falls to 
        prepare a preliminary design for the St. Croix Valley heritage 
        center is canceled.  The bond sale authorization in Laws 1994, 
        chapter 643, section 31, subdivision 1, is reduced by $150,000. 
           Sec. 84.  [REPEALER.] 
           Minnesota Statutes 1996, section 473.3994, subdivision 11, 
        is repealed.  
           Minnesota Statutes 1997 Supplement, section 446A.072, 
        subdivision 4a, is repealed. 
           Laws 1985, First Special Session chapter 15, section 36, is 
        repealed.  
           Laws 1986, chapter 396, section 2, subdivision 2, is 
        repealed. 
           Sec. 85.  [EFFECTIVE DATE.] 
           This act is effective the day after final enactment, except 
        that section 30 is effective for all operating budgets and 
        budget projections for the fiscal year beginning July 1, 1999, 
        and thereafter, and sections 61 to 70 are effective the day 
        after the governing body of the city of Duluth complies with 
        Minnesota Statutes, section 645.021, subdivision 3. 
           Presented to the governor April 10, 1998 
           Signed by the governor April 21, 1998, 9:35 a.m.