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

                              CHAPTER 12-H.F.No. 8 
                  An act relating to capital improvements; authorizing 
                  spending for public purposes, including, but not 
                  limited to, acquiring and bettering public land and 
                  buildings and other public improvements of a capital 
                  nature with certain conditions; authorizing the sale 
                  of state bonds; appropriating money; reenacting 
                  certain corrections made by Laws 2000, chapter 499, 
                  sections 12, 15, 17, and 18; amending Minnesota 
                  Statutes 2000, section 16B.335, subdivision 1; Laws 
                  1998, chapter 404, section 23, subdivision 30; Laws 
                  2000, chapter 492, article 1, section 7, subdivision 3.
        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, but not limited to, acquiring and 
        bettering 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 
        CHILDREN, FAMILIES, AND LEARNING                     20,700,000
        NATURAL RESOURCES                                     2,000,000
        BOARD OF WATER AND SOIL RESOURCES                    53,487,000
        POLLUTION CONTROL AGENCY                             20,500,000
        ADMINISTRATION                                        3,400,000
        TRANSPORTATION                                       10,000,000
        TRADE AND ECONOMIC DEVELOPMENT                        8,000,000
        BOND SALE EXPENSES                                      118,000
        TOTAL                                            $  118,205,000
        Bond Proceeds Fund                                   99,205,000
        Maximum Effort School Loan Fund                      19,000,000
                                                         APPROPRIATIONS
                                                         $             
        Sec. 2.   CHILDREN, FAMILIES, AND LEARNING                     
        Subdivision 1.  To the commissioner of 
        children, families, and learning for 
        the purposes specified in this section               20,700,000
        Subd. 2.  Metropolitan Magnet Schools                 1,700,000
        For a metropolitan magnet school grant 
        to school district No. 6067, 
        Tri-District, to complete construction 
        of, furnish, and equip the East Metro 
        middle school.  This appropriation is 
        added to the appropriations in Laws 
        1998, chapter 404, section 5, 
        subdivision 5; Laws 1999, chapter 240, 
        article 1, section 3; and Laws 2000, 
        chapter 492, article 1, section 5, 
        subdivision 2, for the same project. 
        Subd. 3.  Maximum Effort Capital      
        Loan                                                 19,000,000
        For a capital loan to independent 
        school district No. 2580, East Central, 
        under Minnesota Statutes 2000, sections 
        126C.60 to 126C.72.  A capital loan in 
        this amount is approved. 
        Notwithstanding the timelines in 
        Minnesota Statutes 2000, section 
        126C.69, subdivision 3, 6, 7, or 11, or 
        the application limitation in Laws 
        2000, chapter 492, article 1, section 
        5, subdivision 5, independent school 
        district No. 2580, East Central, may 
        apply to the department of children, 
        families, and learning for a maximum 
        effort capital loan. 
        The commissioner of children, families, 
        and learning shall complete the review 
        and comment process according to 
        Minnesota Statutes 2000, section 
        126C.69, subdivisions 3, 4, 5, and 8, 
        for the project approved in this 
        subdivision. 
        The commissioner shall review the 
        proposed plan and budget of the project 
        approved in this subdivision and may 
        reduce the amount of a loan to ensure 
        that the project will be economical.  
        The commissioner may recover the cost 
        incurred by the commissioner for any 
        professional services associated with 
        the final review by reducing the 
        proceeds of the loan paid to a district.
        Notwithstanding Minnesota Statutes, 
        section 123B.53, subdivision 3, 
        independent school district No. 2580, 
        East Central, must notify the 
        commissioner of children, families and 
        learning of the amount of its intended 
        debt service revenue calculated under 
        section 123B.53, subdivision 1, for all 
        bonds sold by the district prior to the 
        notification by September 1, 2001. 
        Sec. 3.   NATURAL RESOURCES                            2,000,000
        Flood Hazard Mitigation Grants
        To the commissioner of natural 
        resources for grants to local units of 
        government under Minnesota Statutes, 
        section 103F.161, for publicly owned 
        capital improvements to assist with the 
        cost of mitigative storm drainage 
        system improvement and other flood 
        mitigation measures. 
        $234,000 of this appropriation is for 
        projects in the Red River basin. 
        Sec. 4.   BOARD OF WATER AND SOIL RESOURCES                     
        Subdivision 1.  To the board of water and soil 
        resources for the purposes specified in 
        this section                                          53,487,000
        Subd. 2.  Minnesota River Basin
        Conservation Reserve Enhancement Program              51,487,000
        To acquire easements and implement 
        conservation practices on frequently 
        flooded cropland, including land within 
        the 100-year floodplain and the major 
        tributaries; on marginal cropland along 
        rivers and streams; and on drained or 
        altered wetlands in the Minnesota River 
        basin to protect soil, enhance water 
        quality, and support fish and wildlife 
        habitat as provided in Minnesota 
        Statutes, sections 103F.515 and 
        103F.516. 
        Of this amount, $43,000,000 is to 
        acquire easements and $8,487,000 is for 
        administrative costs to acquire the 
        easements, both under this act and 
        under Laws 2000, chapter 492, article 
        1, section 9, subdivision 3. 
        Subd. 3.  Wetland Replacement Due to
        Public Road Projects                                  2,000,000
        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 required by 
        Minnesota Statutes, section 103G.222, 
        subdivision 1, paragraph (1). 
        The purchase price paid for acquisition 
        of land, fee, or perpetual easement, 
        must 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 to acquire 
        land and restore and create wetlands 
        and to acquire existing wetland banking 
        credits with money provided by this 
        appropriation.  Acquisition of or the 
        conveyance of land may be in the name 
        of the political subdivision. 
        Sec. 5.   POLLUTION CONTROL AGENCY                   20,500,000
        Closed Landfill Cleanup Program
        To the commissioner of the pollution 
        control agency for capital costs of 
        response actions at qualified 
        facilities under the closed landfill 
        cleanup program under Minnesota 
        Statutes, sections 115B.39 to 115B.445. 
        Notwithstanding Minnesota Statutes, 
        section 16A.642, any part of this 
        appropriation not expended, encumbered, 
        or otherwise obligated on February 1, 
        2005, must be included in the report 
        submitted under Minnesota Statutes, 
        section 16A.642, in 2005. 
        Sec. 6.   ADMINISTRATION                                       
        Subdivision 1.  To the commissioner of 
        administration for the purposes 
        specified in this section                             3,400,000
        Subd. 2.  State Office Building                       2,200,000
        To complete tuckpointing and masonry 
        repair on the north and west sides of 
        the building and the associated 
        interior remediation work. 
        Subd. 3.  Electrical Utility                          1,200,000
        Infrastructure, Phase 5 
        To upgrade the primary electrical 
        distribution system in the capitol 
        complex. 
        Sec. 7.   TRANSPORTATION                              10,000,000
        To the commissioner of transportation 
        for local bridge replacement and 
        rehabilitation. 
        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. 
        Sec. 8.   TRADE AND ECONOMIC DEVELOPMENT                        
        Subdivision 1.  To the commissioner  of
        trade and economic development for the purposes
        specified in this section                              8,000,000
        Subd. 2.  For a grant of                               7,000,000
        $5,000,000 to the city of Eagan, and a 
        grant of $2,000,000 to the city of 
        Austin, to pay costs not covered by 
        federal disaster programs under the 
        Presidential Declaration of Major 
        Disaster No. 1333, for publicly owned 
        capital improvements, including storm 
        drainage system improvements, 
        acquisition, relocation, and other 
        mitigation measures.  
        Subd. 3.  Port Authority of
        St. Paul                                              1,000,000
        For a grant to the port authority of 
        the city of Saint Paul for the 
        acquisition of the Trillium site in the 
        city of Saint Paul. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Sec. 9.   BOND SALE EXPENSES                            118,000
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8. 
        Sec. 10.   BOND SALE SCHEDULE                                  
        The commissioner of finance shall 
        schedule the sale of state general 
        obligation bonds so that, during the 
        biennium ending June 30, 2003, no more 
        than $629,739,000 will need to be 
        transferred from the general fund to 
        the state bond fund to pay principal 
        and interest due and to become due on 
        outstanding state general obligation 
        bonds.  During the biennium, before 
        each sale of state general obligation 
        bonds, the commissioner of finance 
        shall calculate the amount of debt 
        service payments needed on bonds 
        previously issued and shall estimate 
        the amount of debt service payments 
        that will be needed on the bonds 
        scheduled to be sold.  The commissioner 
        shall adjust the amount of bonds 
        scheduled to be sold so as to remain 
        within the limit set by this section.  
        The amount needed to make the debt 
        service payments is appropriated from 
        the general fund as provided in 
        Minnesota Statutes, section 16A.641. 
           Sec. 11.  [BOND SALE AUTHORIZATION.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
        appropriated in this act from the bond proceeds fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $99,205,000 in the manner, on the terms, and 
        with the effect prescribed by Minnesota Statutes, sections 
        16A.631 to 16A.675, and by the Minnesota Constitution, article 
        XI, sections 4 to 7. 
           Subd. 2.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] To provide the 
        money appropriated by this act from the maximum effort school 
        loan fund, the commissioner of finance shall sell and issue 
        bonds of the state in an amount up to $19,000,000 in the manner, 
        on the terms, and with the effect prescribed by Minnesota 
        Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
        Constitution, article XI, sections 4 to 7.  The proceeds of the 
        bonds, except accrued interest and any premium received on the 
        sale of the bonds, must be credited to a bond proceeds account 
        in the maximum effort school loan fund. 
           Sec. 12.  Minnesota Statutes 2000, 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, a substantial 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 
        subdivision include 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, pathways, campgrounds, athletic 
        fields, dams, floodwater retention systems, water access sites, 
        harbors, sewer separation projects, water and wastewater 
        facilities, port development projects for which the commissioner 
        of transportation has entered into an assistance agreement under 
        section 457A.04, ice centers, a local government project with a 
        construction cost of less than $1,500,000, or any other capital 
        project with a construction cost of less than $500,000 $750,000. 
           Sec. 13.  Laws 1998, chapter 404, section 23, subdivision 
        30, is amended to read: 
        Subd. 30.  Itasca County School-to-Work
        Training and Technology Center                        2,000,000 
        For a grant to Itasca county to design 
        and construct a school-to-work training 
        and 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.  For every 
        dollar of nonstate money committed to 
        the project, two dollars of this 
        appropriation are available to the 
        county, up to the total amount 
        appropriated.  
        This appropriation is from the general 
        fund.  
           Sec. 14.  Laws 2000, chapter 492, article 1, section 7, 
        subdivision 3, is amended to read: 
        Subd. 3.  Office Facility Development                 3,250,000 
        To design, acquire, remodel, refurbish, 
        construct, furnish, and equip a 
        consolidated area office and service 
        facility in Fergus Falls. 
           Sec. 15.  [REENACTMENT OF CORRECTIONS TO 2000 BOND 
        PROVISIONS.] 
           The amendments made to Laws 2000, chapter 492, article 1, 
        sections 1; 22, subdivision 3; 25; and 26, subdivision 1; by 
        Laws 2000, chapter 499, sections 12, 15, 17, and 18, 
        respectively, are reenacted. 
           Sec. 16.  [EFFECTIVE DATE.] 
           This act is effective the day following its final enactment.
           Presented to the governor June 30, 2001 
           Signed by the governor June 30, 2001, 8:37 p.m.