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Office of the Revisor of Statutes

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                              CHAPTER 20-H.F.No. 8 
                  An act relating to capital improvements; authorizing 
                  spending to acquire and better public land and 
                  buildings and other public improvements of a capital 
                  nature with certain conditions; requiring certain 
                  studies and reports; authorizing sale of bonds; 
                  appropriating money; amending Laws 2002, chapter 393, 
                  section 13, subdivision 8. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                              CAPITAL IMPROVEMENTS 
        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.  Appropriations of bond proceeds must be spent 
        as authorized by the Minnesota Constitution, article XI, section 
        5, paragraph (a), to acquire and better public land and 
        buildings and other public improvements of a capital nature, or 
        as authorized by article XI, section 5, paragraphs (b) to (j), 
        or article XIV.  Unless otherwise specified, the appropriations 
        in this article are available until the project is completed or 
        abandoned.  
                                    SUMMARY 
        UNIVERSITY OF MINNESOTA                          $   48,708,000 
        MINNESOTA STATE COLLEGES AND UNIVERSITIES            59,716,000 
        CHILDREN, FAMILIES, AND LEARNING                     11,500,000 
        NATURAL RESOURCES                                    10,755,000 
        BOARD OF WATER AND SOIL RESOURCES                     6,400,000 
        AMATEUR SPORTS COMMISSION                             5,000,000 
        ARTS                                                 30,000,000 
        TRANSPORTATION                                       26,500,000 
        METROPOLITAN COUNCIL                                  1,000,000 
        HEALTH                                                  775,000 
        TRADE AND ECONOMIC DEVELOPMENT                       29,800,000 
        MINNESOTA HISTORICAL SOCIETY                            500,000 
        BOND SALE EXPENSES                                      236,000 
        TOTAL                                            $  230,890,000
        Bond Proceeds Fund 
        (General Fund Debt Service)                         183,256,000 
        Bond Proceeds Fund  
        (User Financed Debt Service)                         47,634,000  
                                                         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                   48,708,000 
        Subd. 2.  Twin Cities - Minneapolis
        (a) Jones Hall                                        8,000,000
        To renovate Jones Hall on the 
        Minneapolis campus. 
        The board of regents may use the 
        single-phase design-build method 
        described in Minnesota Statutes, 
        section 16C.31, subdivision 6, 
        paragraph (c), to implement this 
        project. 
        (b) Translational Research Facility                  24,700,000
        To design, construct, furnish, and 
        equip the Translational Research 
        Facility, an addition to the Lyons 
        Research Lab building on the 
        Minneapolis campus. 
        This appropriation is not available 
        until the commissioner of finance has 
        determined that at least $12,300,000 
        has been committed from nonstate 
        sources.  
        The board of regents may use the 
        two-phase design-build method described 
        in Minnesota Statutes, section 16C.31, 
        to implement this project. 
        (c) Teaching and Technology Center                    3,000,000
        To predesign and design a teaching and 
        technology center for the Institute of 
        Technology. 
        Subd. 3.  Twin Cities - St. Paul                               
        Veterinary Diagnostic Laboratory                      1,500,000
        To renovate and upgrade the veterinary 
        diagnostic laboratory to provide 
        additional laboratory space for a 
        veterinary molecular diagnostic 
        laboratory.  The renovation and upgrade 
        must include space for molecular 
        diagnostic testing for paratuberculosis 
        (Johne's Disease), porcine reproductive 
        and respiratory syndrome virus in 
        swine, avian pneumovirus in turkeys, 
        bovine mastitis, and emerging and 
        foreign animal diseases. 
        Subd. 4.  Morris                                      8,600,000
        To design, renovate, furnish, and equip 
        the social science building to correct 
        building code deficiencies, remodel the 
        interior, install new windows, upgrade 
        the building's mechanical and 
        electrical systems, replace the roof, 
        and construct an addition over the 
        existing auditorium wing to create 
        space for faculty offices, and to 
        install fire protection systems in 
        three student housing facilities. 
        This appropriation is not available 
        until the commissioner of finance has 
        determined that at least $400,000 has 
        been committed from nonstate sources. 
        Subd. 5.  Research and Outreach        
        Centers                                               2,508,000
        To acquire land and design, construct, 
        furnish, and equip facilities at 
        research and outreach centers.  
        Projects funded by this appropriation 
        include: 
        (1) research laboratory and office 
        space at the Northwest ROC at 
        Crookston; 
        (2) an addition to the aspen/larch 
        genetics laboratory at the North 
        Central ROC at Grand Rapids and 
        acquisition of land for the development 
        of two test planting sites to conduct 
        research on fast-growing trees; 
        (3) an addition to the administration 
        building at the Southern ROC at Waseca; 
        and 
        (4) of this amount, $70,000 is to 
        construct an environmentally friendly 
        swine farrowing demonstration facility 
        at the West Central ROC, subject to 
        Minnesota Statutes, section 16A.695. 
        Subd. 6.  Genomics Building -          
        Rochester                                               400,000
        To predesign and design a medical 
        genomics research building at the Mayo 
        Clinic in Rochester, Minnesota, subject 
        to Minnesota Statutes, section 16A.695. 
        Subd. 7.  Debt Service
        (a) The board of regents shall pay the 
        debt service on one-third of the 
        principal amount of state bonds sold to 
        finance projects authorized by this 
        section, except that, where a nonstate 
        match is required, the debt service is 
        due on a principal amount equal to 
        one-third of the total project cost, 
        less the match committed before the 
        bonds are sold.  After each sale of 
        general obligation bonds, the 
        commissioner of finance shall notify 
        the board of regents 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. 8.  Contingencies                              
        The commissioner of finance must 
        combine into one account, under the 
        control of the board of regents, the 
        portion of each appropriation in this 
        section that is attributable to the 
        amount budgeted for contingencies for 
        projects in this section.  The board 
        must manage the account to pay for 
        exceptional but necessary costs of 
        projects authorized in this section.  
        Upon substantial completion or 
        abandonment of all projects authorized 
        in this section, the board must use any 
        funds remaining in the contingency 
        account for HEAPR under Minnesota 
        Statutes, section 135A.046.  The board 
        of regents must report by February 1 of 
        each even-numbered year to the chairs 
        of the house and senate committees with 
        jurisdiction over capital investments 
        and higher education finance, and to 
        the chairs of the house ways and means 
        committee and the senate finance 
        committee on how the money in the 
        contingency account has been allocated 
        or spent. 
        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                                         59,716,000
        Subd. 2.  Bemidji State University                    1,000,000 
        To design the colocation of the 
        emerging technologies and health care 
        programs of Bemidji State University 
        and Northwest Technical College. 
        Subd. 3.  Dakota Technical College                      500,000
        To design the renovation of the west 
        side of the main campus facility to 
        create an information technology and 
        telecommunications center of excellence 
        and an integrated library and library 
        information technology center. 
        Subd. 4.  Fergus Falls                 
        Community College                                       760,000
        To design, construct, furnish, and 
        equip an expansion of the existing 
        maintenance shop. 
        To design an addition to link 
        Administration and Fine Arts to provide 
        a one-stop student service shop, smart 
        classrooms, open computer laboratories; 
        design renovation to provide space for 
        technology support next to the library; 
        and design asset preservation work. 
        Subd. 5.  Hennepin Technical College                  2,000,000
        To design, renovate, furnish, and equip 
        existing space at the Brooklyn Park and 
        Eden Prairie campuses.  
        Subd. 6.  Inver Hills Community
        College                                                 500,000
        To design renovation of existing space 
        and construction of an addition to 
        create a one-stop student services 
        shop; enlarge and colocate central 
        services, the bookstore, and a new 
        loading dock; upgrade mechanical 
        systems; and provide a welcoming front 
        door and help desk for the campus. 
        Subd. 7.  Lake Superior Community      
        and Technical College                                   700,000
        To design a student center addition to 
        house a consolidated system of student 
        services, smart classrooms, and open 
        laboratories. 
        Subd. 8.  Minnesota State University - 
        Mankato - Phase 3                                     8,400,000
        To renovate, furnish, and equip Otto 
        Arena and adjacent areas to provide a 
        student fitness facility. 
        Subd. 9.  Minnesota West Community and
        Technical College at Worthington                      6,300,000
        To design, construct, furnish, and 
        equip a one-stop student services shop 
        and welcome counter addition. 
        To design, renovate, furnish, and equip 
        two science laboratories and associated 
        preparation, storage, and office spaces.
        To design, renovate, furnish, and equip 
        consolidated nursing and allied health 
        department and other classroom spaces. 
        Subd. 10.  Northeast Higher Education  
        District - Virginia                                   5,496,000
        To design, renovate, and equip science 
        laboratories, a learning resource 
        center, a student commons, and 
        classrooms, including 
        technology-equipped classrooms, and 
        construct new loading dock and driveway.
        Subd. 11.  Northwest Technical College -     
        Moorhead Campus                                         400,000
        To design the renovation of existing 
        facilities and design new facilities 
        for an allied health and applied 
        technology laboratory and support 
        facilities. 
        Subd. 12.  Ridgewater Community and
        Technical College                                     2,880,000
        To design, renovate, furnish, and equip 
        existing chemistry, physics, and 
        biology laboratories and convert a 
        classroom into a geology laboratory on 
        the Willmar campus.  
        To design, renovate, furnish, and equip 
        interior space to convert obsolete 
        applied laboratory space on the 
        Hutchinson campus into chemistry, 
        physics, and biology laboratories. 
        Subd. 13.  South Central Technical                              
        College                                                 300,000
        To design renovation of teaching 
        laboratories at the North Mankato 
        campus and design asset preservation at 
        the Faribault campus. 
        Subd. 14.  Southeast Technical
        College                                                 580,000
        To design, renovate, furnish, and equip 
        a one-stop student services area and 
        workforce center entrance at Winona. 
        To design the renovation of a one-stop 
        student services area and student 
        center entrance at Red Wing. 
        Subd. 15.  Southwest State University                 9,200,000 
        To renovate and reconfigure, furnish, 
        and equip the library and construct a 
        new entrance. 
        Subd. 16.  St. Cloud State University                10,000,000 
        To design the renovation of Centennial 
        Hall and to renovate, furnish, and 
        equip the renovation of Centennial Hall 
        and its conversion from library to 
        classroom use and to design the code 
        correction and renovation of Riverview 
        Hall.  This appropriation may also be 
        used for design of the renovation of 
        Brown Hall and Eastman Hall. 
        Subd. 17.  St. Cloud Technical College                  700,000
        To design the construction of a 
        multistory building connected to the 
        existing facility and the renovation of 
        part of "G" wing. 
        Subd. 18.  Land Acquisition                          10,000,000
        To acquire real property near the state 
        college and university campuses. 
        Subd. 19.  Debt Service
        (a) The board shall pay the debt 
        service on one-third of the principal 
        amount of state bonds sold to finance 
        projects authorized by this section, 
        except that, where a nonstate match is 
        required, the debt service is due on a 
        principal amount equal to one-third of 
        the total project cost, less the match 
        committed before the bonds are sold.  
        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. 20.  Contingencies                                        
        The commissioner of finance must 
        combine into one account, under the 
        control of the board of trustees, the 
        portion of each appropriation in this 
        section that is attributable to the 
        amount budgeted for contingencies for 
        projects in this section.  The board 
        must manage the account to pay for 
        exceptional but necessary costs of 
        projects authorized in this section.  
        Upon substantial completion or 
        abandonment of all projects authorized 
        in this section, the board must use any 
        funds remaining in the contingency 
        account for HEAPR under Minnesota 
        Statutes, section 135A.046.  The board 
        of trustees must report by February 1 
        of each even-numbered year to the 
        chairs of the house and senate 
        committees with jurisdiction over 
        capital investments and higher 
        education finance, and to the chairs of 
        the house ways and means committee and 
        the senate finance committee on how the 
        money in the contingency account has 
        been allocated or spent. 
        Sec. 4.  CHILDREN, FAMILIES, AND LEARNING 
        Subdivision 1.  To the commissioner of
        children, families, and learning to be
        known as the commissioner of education
        as of August 1, 2003, for the
        purposes specified in this section                   11,500,000
        Subd. 2.  Library Access Grants                       1,000,000 
        For library access grants under 
        Minnesota Statutes, section 134.45, to 
        remove architectural barriers from a 
        library building or site. 
        Subd. 3.  Paul and Sheila Wellstone 
        Center for Community Building                         5,000,000
        For a grant to the city of St. Paul to 
        acquire land for and to design, 
        construct, furnish, and equip the Paul 
        and Sheila Wellstone center for 
        community building.  The city may enter 
        into a lease or management agreement 
        for the center, subject to Minnesota 
        Statutes, section 16A.695. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources.  
        Subd. 4.  Trollwood Performing         
        Arts School                                           5,500,000
        For a grant to the city of Moorhead to 
        acquire land for and to design, 
        construct, furnish, and equip Trollwood 
        Performing Arts School in the city of 
        Moorhead, subject to Minnesota 
        Statutes, section 16A.695.  Trollwood 
        must be available to regional arts 
        groups. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources. 
        Sec. 5.  NATURAL RESOURCES 
        Subdivision 1.  To the 
        commissioner of natural resources 
        for the purposes specified
        in this section                                      10,755,000
        Subd. 2.  State Park and Recreation Area
        Acquisition                                           1,000,000 
        For acquisition of land under Minnesota 
        Statutes, section 86A.05, subdivision 
        2, from willing sellers of private 
        lands within state park and recreation 
        area boundaries established by law. 
        Subd. 3.  Metro Regional Park Acquisition    
        and Betterment                                        2,700,000
        For a grant to the metropolitan council 
        to complete renovation of the Como Park 
        conservatory under phase 2.  The 
        project must include renovation of the 
        fern room and construction of a bonsai 
        collection space, an orchid growing and 
        display house, and a children's 
        activity zone, as well as corridors and 
        connections to the education resource 
        building. 
        Subd. 4.  State Trail Acquisition     
        and Development                                         475,000
        To acquire, develop, and renovate state 
        trails as specified in Minnesota 
        Statutes, section 85.015. 
        $475,000 is for the Goodhue Pioneer 
        trail. 
        Subd. 5.  Red Rock Rural 
        Water System                                            125,000 
        For a grant to the Red Rock rural water 
        system to acquire land, predesign, 
        design, construct, and equip the 
        southwest Minnesota regional water 
        supply project.  This appropriation is 
        not available until at least an equal 
        amount of nonstate money has been 
        committed to the project. 
        Subd. 6.  Dam Improvements                            1,050,000
        For a grant to the city of Crookston 
        for phases 2 and 3 of the Red Lake 
        River restoration and habitat 
        improvement project. 
        Subd. 7.  Flood Hazard Mitigation Grants              1,405,000 
        For the state share of flood hazard 
        mitigation grants for publicly owned 
        capital improvements to prevent or 
        alleviate flood damage under Minnesota 
        Statutes, section 103F.161. 
        This appropriation includes money for 
        the following projects:  Warren and Hay 
        Creek. 
        To the extent that the cost of the 
        project in Warren exceeds two percent 
        of the median household income in the 
        municipality multiplied by the number 
        of households in the municipality, this 
        appropriation is also for the local 
        share of the project. 
        Subd. 8.  Stream Protection
        and Restoration                                         500,000
        For the design and implementation of 
        stream restoration projects that employ 
        natural channel design principles. 
        Subd. 9.  Scientific and Natural Area                 
        Acquisition and Improvement                           2,000,000
        To acquire land for scientific and 
        natural areas and for development, 
        protection, or improvements of a 
        capital nature to scientific and 
        natural areas throughout the state 
        under Minnesota Statutes, sections 
        84.033 and 86A.05, subdivision 5.  
        Up to $1,500,000 is to acquire and make 
        improvements of a capital nature to 
        restore and develop the Seminary fen in 
        the Assumption creek watershed in 
        Carver county.  The commissioner shall 
        manage the Seminary fen in accordance 
        with Minnesota Statutes, chapter 86A, 
        in part as an aquatic management area, 
        in part as a scientific and natural 
        area, and in part as a wildlife 
        management area. 
        Subd. 10.  Native Prairie    
        Bank Easements                                        1,000,000
        For acquisition of native prairie bank 
        easements under Minnesota Statutes, 
        section 84.96. 
        Subd. 11.  National Eagle Center                        500,000
        To the commissioner of administration 
        for a grant to the city of Wabasha to 
        construct the National 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. 
        Sec. 6.  BOARD OF WATER AND SOIL RESOURCES 
        Subdivision 1.  To the board 
        of water and soil resources for the 
        purposes specified in this section                    6,400,000 
        Subd. 2.  RIM Conservation
        Easements                                             1,000,000 
        This appropriation is 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. 
        Subd. 3.  Wetland Replacement          
        Due to Public Road Projects                           2,700,000
        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 (l). 
        The purchase price paid for acquisition 
        of land, fee, or perpetual easement 
        must be the fair market value as 
        determined 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. 
        Subd. 4.  Lazarus Creek                               1,400,000
        For a grant to Area II Minnesota River 
        Basin Projects, Inc. for construction 
        of the LQP-25/Lazarus Creek floodwater 
        retention project.  The grant may not 
        exceed 75 percent of the project's 
        cost.  The remaining share must be 
        provided by Area II Minnesota River 
        Basin Projects, Inc. 
        Subd. 5.  Stillwater - 
        Brown's Creek                                         1,300,000
        For a grant to the city of Stillwater 
        to provide environmental protection 
        capital improvements for Brown's Creek. 
        Sec. 7.  AMATEUR SPORTS COMMISSION
        Subdivision 1.  To the amateur sports
        commission for the purposes specified
        in this section                                       5,000,000
        Subd. 2.  National Sport
        Event Center                                          5,000,000
        To construct, furnish, and equip a 
        national sport event center on the 
        campus of the National Sports Center 
        and for related capital development 
        costs, subject to Minnesota Statutes, 
        section 16A.695.  No portion of this 
        appropriation may be used for either 
        the National Youth Golf Course or its 
        clubhouse.  Release of this 
        appropriation is subject to approval by 
        the commissioner of finance of a plan 
        for the financing and operation of this 
        facility which describes the 
        relationship between the conference 
        center and the other elements of the 
        National Sports Center and the 
        involvement in this facility of the 
        National Sports Center Foundation. 
        Sec. 8.  ARTS                                                 
        Subdivision 1.  To the commissioner of
        administration for the purposes specified
        in this section                                      30,000,000
        Subd. 2.  Minneapolis -
        Children's Theatre Company                            5,000,000
        For a grant to Hennepin county to 
        design, construct, furnish, and equip 
        an expansion of the Children's Theatre 
        Company's current facility.  Hennepin 
        county may enter into a lease or 
        management agreement for operation of 
        the theater, subject to Minnesota 
        Statutes, section 16A.695. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources. 
        Subd. 3.  Minneapolis -              
        Guthrie Theater                                      25,000,000
        For a grant to the Minneapolis 
        community development agency or its 
        successor to design, construct, 
        furnish, and equip a new Guthrie 
        Theater in the city of Minneapolis.  
        The Minneapolis community development 
        agency or its successor may enter into 
        a lease or management agreement for the 
        theater, subject to Minnesota Statutes, 
        section 16A.695.  
        This appropriation is not available 
        until the commissioner has determined 
        that at least three times the amount of 
        this appropriation has been committed 
        from nonstate sources. 
        Sec. 9.  TRANSPORTATION 
        Subdivision 1.  To the 
        commissioner of transportation for 
        the purposes specified in this section               26,500,000
        Subd. 2.  Local Road Improvement Program             20,000,000 
        To the commissioner of transportation 
        for deposit in the trunk highway 
        corridor projects account in the local 
        road improvement fund under Minnesota 
        Statutes, section 174.52, subdivision 2.
        This appropriation is only available 
        for loans.  Debt service on the bonds 
        sold to finance this appropriation must 
        be paid by the commissioner of 
        transportation from money in the trunk 
        highway corridor projects account in 
        the manner provided in Minnesota 
        Statutes, section 16A.643. 
        Subd. 3.  Port Development Assistance                 2,000,000 
        For grants under Minnesota Statutes, 
        sections 457A.01 to 457A.06.  Any 
        improvements made with the proceeds of 
        these grants must be publicly owned. 
        Subd. 4.  Freight Access Improvements                 3,500,000
        For a grant to the port authority of 
        Winona to construct intermodal 
        improvements at the Winona harbor.  The 
        improvements may include commercial 
        harbor dredging, overpass construction, 
        street widening, signal installation, 
        and intersection reconstruction. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from any combination of 
        municipal state-aid money and nonstate 
        sources.  The state share may be 
        allocated to any one or more of the 
        project elements, with the nonstate 
        money used to complete any elements not 
        completed with state money. 
        Subd. 5.  Greater Minnesota 
        Transit Facilities                                    1,000,000
        For capital assistance for greater 
        Minnesota transit systems to be used 
        for transit capital facilities under 
        Minnesota Statutes, section 174.24, 
        subdivision 3c.  Money from this 
        appropriation may be used to pay up to 
        80 percent of the nonfederal share of 
        these facilities. 
        Sec. 10.  METROPOLITAN COUNCIL                        1,000,000 
        To the metropolitan council to design 
        the Northwest Busway Corridor. 
        Sec. 11.  HEALTH                                        775,000
        To design and construct a community 
        dental clinic at Lake Superior 
        Community College in Duluth and design 
        and renovate the Northwest Technical 
        College dental hygiene clinic in 
        Moorhead, subject to Minnesota 
        Statutes, section 16A.695. 
        Sec. 12.  TRADE AND ECONOMIC DEVELOPMENT
        Subdivision 1.  To the commissioner of
        trade and economic development, to be known
        as the commissioner of employment and
        economic development as of July 1,
        2003, or other named agency for the 
        purposes specified in this section                  29,800,000
        Subd. 2.  Redevelopment Account                      1,000,000
        For transfer to the redevelopment 
        account created in Minnesota Statutes, 
        section 116J.571.  This appropriation 
        is only available for grants to 
        projects located outside of the 
        seven-county metropolitan area. 
        For a grant to the city of Little Falls 
        for environmental cleanup of the 
        Hennepin Paper Company property in the 
        city of Little Falls.  No match is 
        required for this grant. 
        Subd. 3.  Wastewater Infrastructure                            
        Funding Program                                      15,000,000 
        To the public facilities authority for 
        grants to eligible municipalities under 
        the wastewater infrastructure program 
        established in Minnesota Statutes, 
        section 446A.072. 
        To the greatest practical extent, the 
        authority should use the grants for 
        projects on the 2002 project priority 
        list in priority order to qualified 
        applicants that submit plans and 
        specifications to the pollution control 
        agency or receive a funding commitment 
        from USDA rural development before 
        December 1, 2003. 
        $1,500,000 is for grants to the 
        Larsmont portion of the Knife 
        River-Larsmont sanitary district.  This 
        appropriation must be used to reduce 
        the amount of the municipality's loan 
        from the water pollution revolving fund 
        that exceeds five percent of the market 
        value of the properties in the project 
        service area.  This appropriation is in 
        addition to grants from other 
        appropriations. 
        Subd. 4.  Greater Minnesota Business
        Development Infrastructure Grant Program              7,500,000
        For grants under Minnesota Statutes, 
        section 116J.431. 
        Subd. 5.  St. Paul -                   
        Roy Wilkins Auditorium                                2,300,000
        For a grant to the city of St. Paul for 
        asset preservation of the Roy Wilkins 
        Auditorium. 
        Subd. 6.  St. Paul - Phalen Boulevard                 4,000,000 
        For a grant to the city of St. Paul to 
        acquire land and to complete 
        contamination remediation on Phalen 
        Boulevard between I-35E and Johnson 
        Parkway.  This appropriation is not 
        available until the commissioner has 
        determined that at least an equal 
        amount has been committed from nonstate 
        sources.  
        Sec. 13.  MINNESOTA HISTORICAL SOCIETY 
        Subdivision 1.  To the Minnesota 
        Historical Society for the purposes 
        specified in this section                               500,000
        Subd. 2.  County and Local 
        Preservation Grants                                     300,000
        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.  
        Subd. 3.  Fort Belmont                                  200,000
        For a grant to Jackson county to 
        design, construct, furnish, and equip a 
        new site for historic Fort Belmont, 
        subject to Minnesota Statutes, section 
        16A.695. 
        Sec. 14.  BOND SALE EXPENSES                            236,000 
        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. 15.  BOND SALE SCHEDULE   
        The commissioner of finance shall 
        schedule the sale of state general 
        obligation bonds so that, during the 
        biennium ending June 30, 2005, no more 
        than $673,625,000 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. 16.  [BOND SALE AUTHORIZATION.] 
           To provide the money appropriated in this article from the 
        bond proceeds fund, the commissioner of finance shall sell and 
        issue bonds of the state in an amount up to $230,890,000 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.  
           Sec. 17.  [FOREST ELEMENTARY SCHOOL.] 
           Subdivision 1.  [BONDS AUTHORIZED.] Independent school 
        district No. 281, Robbinsdale, upon approval of its board and 
        subject to subdivision 4, may issue and sell general obligation 
        bonds under this section to finance the Forest Elementary School 
        project.  The bonds must be issued in accord with Minnesota 
        Statutes, chapter 475, except that Minnesota Statutes, sections 
        475.58 and 475.59, do not apply.  The total amount of bonds 
        authorized under this section must not exceed $11,315,000.  The 
        authority to issue bonds under this section is in addition to 
        any bonding authority authorized by other law.  
           Subd. 2.  [LEVY AUTHORIZED.] Independent school district No.
        281, Robbinsdale, may levy the amounts necessary to make 
        payments for the bonds issued under this section.  
           Subd. 3.  [NOTICE REQUIRED.] Before independent school 
        district No. 281, Robbinsdale, levies under this section, it 
        must publish notice of the intended project, including the total 
        estimated project cost and the estimated property tax impact of 
        the project. 
           Subd. 4.  [REVERSE REFERENDUM.] A levy tentatively 
        authorized by the board under this section becomes finally 
        authorized unless a petition signed by more than 15 percent of 
        the registered voters of the district is filed with the school 
        board within 30 days of the board's adoption of a resolution 
        stating the board's intention to levy.  The percentage is to be 
        determined with reference to the number of registered voters in 
        the district on the last day before the petition is filed with 
        the board.  The petition must call for a referendum on the 
        question of whether to levy for the project authorized under 
        this section.  The approval of 50 percent plus one of those 
        voting on the question is required to pass a referendum 
        authorized by this section.  The referendum must be held on a 
        date set by the board.  The ballot must provide a general 
        description of the proposed project and state the estimated 
        total cost of the project, the specific number of years, not to 
        exceed 20, for which the referendum authorization applies, the 
        maximum amount of the levy for each year, and the estimated tax 
        rate as a percentage of net tax capacity for the amount 
        specified for the first year and for the maximum amount 
        specified in the schedule.  The ballot must contain a textual 
        portion with the information required in this subdivision and a 
        question stating substantially the following: 
           "Shall the special facilities levy for the Forest 
        Elementary School project proposed by the board of Independent 
        School District No. 281, Robbinsdale, be approved?" 
           If approved, the amount stated for each year may be 
        certified for the number of years approved.  The district must 
        notify the commissioner of the results of the referendum. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 18.  Laws 2002, chapter 393, section 13, subdivision 
        8, is amended to read: 
        Subd. 8.  State-owned Property 
        The commissioner may enter into a 
        ground lease for state-owned property 
        in the capitol complex in conjunction 
        with the execution of a lease-purchase 
        agreement for any improvements 
        constructed on that site. 
        Notwithstanding the requirements of 
        Minnesota Statutes, section 16A.695, 
        subdivision 2, paragraph (b), the 
        ground lease must be for a term equal 
        to the term of the lease-purchase 
        agreement, and must include an option 
        to purchase the land at its then fair 
        market value if the improvements are 
        not purchased by the state at the end 
        of the term of the lease-purchase 
        agreement, or at any earlier time that 
        the lease-purchase agreement is 
        terminated.  
        The commissioner of administration may 
        lease surface, air, and utility rights 
        for state-owned property in a parking 
        structure constructed under subdivision 
        7 and this subdivision for a term up to 
        50 years, subject to the right of the 
        state to terminate the lease if the 
        parking structure is demolished.  
           Sec. 19.  [FLOOD HAZARD MITIGATION GRANTS; PARTIAL 
        COMPLETION OF PROJECTS.] 
           The commissioner of natural resources may allocate money 
        for the flood hazard mitigation grants from the appropriation in 
        Laws 2002, chapter 393, section 7, subdivision 20, as amended by 
        Laws 2002, First Special Session chapter 1, section 12, and from 
        the appropriations in this act, for partial construction of 
        projects, notwithstanding that the projects will not be 
        completed until an additional appropriation is made, and 
        notwithstanding Minnesota Statutes, section 16B.31, subdivision 
        2.  
           Sec. 20.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.

                                   ARTICLE 2
                          ROSEAU FLOOD APPROPRIATIONS
        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.  Appropriations of bond proceeds must be spent 
        as authorized by the Minnesota Constitution, article XI, section 
        5, paragraph (a), to acquire and better public land and 
        buildings and other public improvements of a capital nature, or 
        as authorized by article XI, section 5, paragraphs (b) to (j), 
        or article XIV.  Unless otherwise specified, the appropriations 
        in this article are available until the project is completed or 
        abandoned.  If there is a shortage of money for a program or 
        project funded in this article, or in the money available for 
        state and local match under Minnesota Statutes, section 12.221, 
        unused general fund money appropriated for any other program or 
        project in this article may be transferred by an interagency 
        agreement approved by the commissioner of finance to cover the 
        shortfall. 
           The term "the area included in DR-1419," when used in this 
        article, means the area designated under Presidential 
        Declaration of Major Disaster, DR-1419, whether included in the 
        original declaration or added later by federal government action.
                                    SUMMARY 
        TRADE AND ECONOMIC DEVELOPMENT                   $    1,625,000 
        NATURAL RESOURCES                                     3,000,000 
        TRANSPORTATION                                        1,400,000 
        TOTAL                                            $    6,025,000
        Bond Proceeds Fund                                    4,625,000 
        Transportation Fund                                   1,400,000 
                                                         APPROPRIATIONS
                                                         $ 
        Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT
        Subdivision 1.  To the commissioner of
        trade and economic development, to be
        known as the commissioner of employment
        and economic development as of July 1, 
        2003, for the purposes specified in
        this section                                          1,625,000
        Subd. 2.  Public Infrastructure                       1,125,000
        To the public facilities authority for
        grants to local units of government to 
        assist with the cost of rehabilitation 
        and replacement of publicly owned 
        infrastructure, including storm sewers, 
        wastewater and municipal utility 
        service, drinking water systems, and 
        other infrastructure damaged by 
        flooding in the area included in 
        DR-1419. 
        For the purposes of this appropriation, 
        criteria, limitations, and repayment 
        requirements in Minnesota Statutes, 
        sections 446A.07, 446A.072, and 
        446A.081, are waived. 
        Subd. 3.  Capital Project Grant                         500,000
        For a grant to the city of Roseau to 
        relocate the flood damaged city hall, 
        auditorium, library, museum, and police 
        department out of the Roseau River 
        floodway as a result of flooding as 
        declared in DR-1419, and in accordance 
        with Minnesota Statutes, section 16A.86.
        Sec. 3.  NATURAL RESOURCES                                      
        Subdivision 1.  To the commissioner of
        natural resources for the purposes       
        specified in this section                             3,000,000
        Subd. 2.  Flood Hazard Mitigation Grants              3,000,000
        For the state share of flood hazard 
        mitigation grants for publicly owned 
        capital improvements to prevent or 
        alleviate flood damage under Minnesota 
        Statutes, section 103F.161. 
        The commissioner shall determine 
        project priorities as appropriate based 
        on need. 
        To the extent that the costs of the 
        100-year flood protection projects in 
        Roseau exceed two percent of the median 
        household income in the municipality 
        multiplied by the number of households 
        in the municipality, this appropriation 
        is also for the local share of the 
        project. 
        $1,000,000 is to buy out property 
        substantially damaged by flooding in 
        the area included in DR-1419.  
        Sec. 4.  TRANSPORTATION                                        
        To the commissioner of transportation
        for the purposes specified in this section            1,400,000
        This appropriation is from the bond 
        proceeds account in the state 
        transportation fund. 
        $1,000,000 is from grants to local 
        governments for capital costs related 
        to the rehabilitation, replacement, or 
        reconstruction of roads or bridges 
        damaged or destroyed by flooding or 
        that provide future protection from 
        flood damages in the area included in 
        DR-1419.  A grantee must submit to the 
        commissioner of transportation final 
        plans for each project before grant 
        money may be released.  The 
        commissioner shall determine project 
        priorities and plans and require 
        changes to ensure the most prudent use 
        of state resources. 
        $400,000 is for a grant to the county 
        of Polk to repair a structure north of 
        Climax on marked state highway 220 
        damaged by flooding. 
        For grants under this section, the 
        requirements of Minnesota Statutes, 
        section 174.50, subdivisions 4, 5, 6, 
        6a, and 7, are waived. 
           Sec. 5.  [BOND SALE AUTHORIZATION.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
        appropriated in this article from the bond proceeds fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $4,625,000 in the manner, upon the terms, and 
        with the effect prescribed by Minnesota Statutes, sections 
        16A.631 to 16A.675, and by the Minnesota Constitution, article 
        XI, sections 4 to 7.  
           Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
        appropriated in this article from the state transportation fund, 
        the commissioner of finance shall sell and issue bonds of the 
        state in an amount up to $1,400,000 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. 6.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
           Presented to the governor May 30, 2003 
           Signed by the governor June 12, 2003, 9:41 a.m.