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                            CHAPTER 393-H.F.No. 3618 
                  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 state bonds; 
                  canceling earlier appropriations and reducing earlier 
                  bond authorizations; making technical corrections and 
                  clarifications; making changes to statutes related to 
                  administration of the state's capital improvement 
                  program; requiring an inventory of state-owned land; 
                  clarifying that the commissioner of administration 
                  does not have authority over construction plans and 
                  specifications at the University of Minnesota; 
                  authorizing the design-build method for certain 
                  construction projects; establishing the greater 
                  Minnesota business development public infrastructure 
                  grant program; creating a trunk highway corridor 
                  projects account; changing the wastewater 
                  infrastructure funding program; authorizing an 
                  agreement in connection with the Great River Road 
                  project; prohibiting certain actions in connection 
                  with the Dan Patch commuter rail line; authorizing a 
                  multiagency working group on the DM&E rail project 
                  mitigations; providing for the conversion of certain 
                  general fund expenditures to bond fund expenditures; 
                  establishing a shoreland protection program; requiring 
                  a report; appropriating money; amending Minnesota 
                  Statutes 2000, sections 16A.11, subdivision 6; 
                  16A.501; 16A.632, subdivision 2; 16A.86, subdivision 
                  3; 16B.31, subdivision 1; 16B.33, by adding a 
                  subdivision; 16B.335, subdivision 3; 85.019, 
                  subdivisions 4a, 4c; 103F.205, subdivision 1; 134.45, 
                  subdivision 5; 135A.046, subdivision 2; 136F.60, 
                  subdivision 1; 240A.02, subdivision 1; 446A.07, 
                  subdivision 4; 446A.072, subdivisions 1, 3, 6, 7, 8, 
                  9, 11, 12, by adding subdivisions; 446A.12, 
                  subdivision 1; Laws 1987, chapter 400, section 8, 
                  subdivision 5; Laws 2000, chapter 492, article 1, 
                  section 3, subdivision 5; Laws 2000, chapter 492, 
                  article 1, section 12, subdivision 7; Laws 2000, 
                  chapter 492, article 1, section 15, subdivision 4; 
                  Laws 2000, chapter 492, article 1, section 22, 
                  subdivision 3, as amended; Laws 2000, chapter 492, 
                  article 1, section 22, subdivision 4; Laws 2000, 
                  chapter 492, article 1, section 27; Laws 2001, First 
                  Special Session chapter 12, section 10; 2002 H.F. No. 
                  3270, article 11, if enacted; proposing coding for new 
                  law in Minnesota Statutes, chapters 16B; 16C; 103F; 
                  116J; 174; 383B; repealing Minnesota Statutes 2000, 
                  sections 116J.561, 116J.562, 116J.563, 116J.564, 
                  116J.565, 116J.566, 116J.567, 446A.072, subdivisions 
                  2, 4, 5, 10, 13. 
        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.  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 act are available until the project is completed or 
        abandoned.  Appropriations for asset preservation not spent or 
        encumbered by June 30, 2004, are canceled July 1, 2004. 
                                    SUMMARY 
        UNIVERSITY OF MINNESOTA                          $  160,209,000 
        MINNESOTA STATE COLLEGES AND UNIVERSITIES           209,563,000 
        PERPICH CENTER FOR ARTS EDUCATION                       768,000 
        CHILDREN, FAMILIES, AND LEARNING                     34,900,000 
        MINNESOTA STATE ACADEMIES                             1,500,000 
        NATURAL RESOURCES                                   101,612,000 
        POLLUTION CONTROL AGENCY                             10,000,000 
        OFFICE OF ENVIRONMENTAL ASSISTANCE                    4,750,000 
        BOARD OF WATER AND SOIL RESOURCES                     8,250,000 
        AGRICULTURE                                          15,292,000 
        ZOOLOGICAL GARDENS                                   11,184,000 
        ADMINISTRATION                                       83,722,000 
        CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD           646,000 
        AMATEUR SPORTS COMMISSION                             8,250,000 
        ARTS                                                 31,000,000 
        MILITARY AFFAIRS                                      4,357,000 
        TRANSPORTATION                                       92,500,000 
        METROPOLITAN COUNCIL                                 30,500,000 
        COMMERCE                                              5,000,000 
        HEALTH                                                  775,000 
        HUMAN SERVICES                                       22,838,000 
        VETERANS HOMES BOARD                                 12,898,000 
        CORRECTIONS                                          25,870,000 
        TRADE AND ECONOMIC DEVELOPMENT                       84,650,000 
        IRON RANGE RESOURCES AND REHABILITATION BOARD         1,500,000 
        HOUSING FINANCE AGENCY                               16,200,000 
        MINNESOTA HISTORICAL SOCIETY                          3,967,000 
        BOND SALE EXPENSES                                      880,000 
        CANCELLATIONS                                        (4,437,000)
        TOTAL                                            $  979,144,000
        Bond Proceeds Fund 
        (General Fund Debt Service)                         836,085,000 
        Bond Proceeds Fund  
        (User Financed Debt Service)                         96,550,000  
        General Fund                                          5,946,000 
        General Fund Cancellations                           (2,488,000)
        Bond Proceeds Cancellations                          (1,949,000)
        State Transportation Fund
        Bond Proceeds Account                                45,000,000
                                                         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                  160,209,000 
        Subd. 2.  Higher Education Asset
        Preservation and Replacement                         35,000,000 
        To be spent in accordance with 
        Minnesota Statutes, section 135A.046.  
        The unspent portion of an 
        appropriation, but not to exceed ten 
        percent of the appropriation, for a 
        project in this section that is 
        complete, is available for higher 
        education asset preservation and 
        replacement under this subdivision, at 
        the same campus as the project for 
        which the original appropriation was 
        made and the debt service requirement 
        under subdivision 10 is reduced 
        accordingly.  Minnesota Statutes, 
        section 16A.642, applies from the date 
        of the original appropriation to the 
        unspent amount transferred. 
        The board of regents must report by 
        February 1 each even-numbered year to 
        the chairs of the house and senate 
        committees with jurisdiction over 
        capital investments, and to the chairs 
        of the house ways and means committee 
        and the senate finance committee, any 
        project savings and reallocations for 
        higher education asset preservation and 
        replacement.  
        Subd. 3.  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 new Minnesota Statutes, 
        section 16C.31, subdivision 6, 
        paragraph (c), to implement this 
        project. * (The preceding text 
        beginning "(a) Jones Hall" was 
        indicated as vetoed by the governor.) 
        (b) Nicholson Hall                                   24,000,000
        To design, renovate, furnish, and equip 
        Nicholson Hall, including complete 
        renovation of the original building and 
        demolition of the 1925 wing and 1946 
        auditorium. 
        The board of regents may use the 
        single-phase design-build method 
        described in new Minnesota Statutes, 
        section 16C.31, subdivision 6, 
        paragraph (c), to implement the 
        Nicholson Hall renovation project.  
        (c) 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 new Minnesota Statutes, section 
        16C.31, to implement this project. * 
        (The preceding text beginning "(c) 
        Translational Research Facility" was 
        indicated as vetoed by the governor.) 
        (d) Teaching and Technology Center                    3,000,000
        To predesign and design a teaching and 
        technology center for the Institute of 
        Technology. * (The preceding text 
        beginning "(d) Teaching and Technology 
        Center" was indicated as vetoed by the 
        governor.) 
        Subd. 4.  Twin Cities - St. Paul                               
        (a) Plant Growth Facilities - Phase 2                17,700,000
        To complete design, construction, 
        furnishing, and equipping the 
        containment greenhouse, replace the 
        teaching and research greenhouses, 
        demolish the northwest greenhouses on 
        the St. Paul campus, and renovate the 
        remaining greenhouses to meet current 
        code requirements. 
        (b) 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. * (The 
        preceding text beginning "(b) 
        Veterinary Diagnostic Laboratory" was 
        indicated as vetoed by the governor.) 
        Subd. 5.  Crookston                                            
        Replace Bede Hall                                     7,701,000
        To demolish Bede Hall and to design, 
        construct, furnish, and equip a 
        replacement facility. 
        Subd. 6.  Duluth     
        Laboratory Science Building                          25,500,000 
        To design, construct, furnish, and 
        equip a new laboratory science building 
        to meet the needs of the chemistry and 
        biology programs.  
        This appropriation is not available 
        until the commissioner of finance has 
        determined that at least $7,500,000 has 
        been committed from nonstate sources.  
        Subd. 7.  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. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 8.  Classroom Improvements                      2,000,000
        To design, renovate, furnish, and equip 
        classrooms on all four University of 
        Minnesota campuses.  Projects will 
        focus on installing basic technology 
        infrastructure, such as video 
        projection and Internet access, 
        improving disability access, and making 
        basic improvements to enhance the 
        classroom learning environment. 
        Priority must be given to high-use 
        undergraduate classrooms. 
        Subd. 9.  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. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 10.  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 for higher education 
        asset preservation and replacement, and 
        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. 11.  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. 
        Subd. 12.  Minnesota Goods and Services                        
        The board of regents of the University 
        of Minnesota shall make a reasonable 
        attempt to give preference to 
        construction contractors who employ 
        Minnesota residents and to purchase 
        products manufactured in Minnesota for 
        use in construction projects undertaken 
        through a design-build process. 
        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                                        209,563,000
        Subd. 2.  Higher Education Asset
        Preservation and Replacement                         60,000,000
        (a) This appropriation is for the 
        purposes specified in Minnesota 
        Statutes, section 135A.046, including 
        safety and statutory compliance, 
        envelope integrity, mechanical systems, 
        and space restoration.  
        (b) The unspent portion of an 
        appropriation, but not to exceed ten 
        percent of the appropriation, for a 
        project in this section that is 
        complete, is available for higher 
        education asset preservation and 
        replacement under this subdivision, at 
        the same campus as the project for 
        which the original appropriation was 
        made and the debt service requirement 
        under subdivision 29 is reduced 
        accordingly.  Minnesota Statutes, 
        section 16A.642, applies from the date 
        of the original appropriation to the 
        unspent amount transferred. 
        Subd. 3.  Alexandria Technical College                9,150,000 
        To construct, furnish, and equip a 
        smart classroom and computer laboratory 
        building, including an auditorium, 
        connected to the college's office 
        education building. 
        Subd. 4.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 5.  Century Community and        
        Technical College                                     2,500,000
        To purchase the transition wing of 
        intermediate school district No. 916 
        and design renovation of space for 
        expansion of the computer center, 
        offices, and smart classrooms. 
        Subd. 6.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 7.  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. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 8.  Hennepin Technical College                  2,000,000
        To design, renovate, furnish, and equip 
        existing space at the Brooklyn Park and 
        Eden Prairie campuses.  * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 9.  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. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 10.  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. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 11.  Metropolitan State
        University                                           17,442,000
        To construct, furnish, and equip a 
        library and information access center. 
        This appropriation is not available 
        until the commissioner of finance has 
        determined that at least $2,504,000 has 
        been committed from nonstate sources.  
        Subd. 12.  Minneapolis Community
        and Technical College                                 9,000,000
        To design, renovate, furnish, and equip 
        the former technical college buildings 
        and to provide space to begin to 
        colocate Metropolitan State University 
        classrooms, offices, and student 
        service areas.  
        Subd. 13.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 14.  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. 
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 15.  Minnesota State University - 
        Moorhead                                             18,955,000
        To construct, furnish, and equip a new 
        science laboratory and auditorium 
        addition to Hagen Hall. 
        Subd. 16.  Normandale Community 
        College                                               9,900,000
        To design, renovate, furnish, and equip 
        the vacated science laboratories. 
        Subd. 17.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 18.  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. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 19.  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. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 20.  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. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 21.  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 areas and student 
        center entrance at Red Wing. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 22.  Southwest State University                 9,200,000 
        To renovate and reconfigure, furnish, 
        and equip the library and construct a 
        new entrance. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 23.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 24.  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. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 25.  St. Paul Technical College 
        The Pipefitters Local 455/JATC may 
        donate money for or build a building 
        for academic purposes of the pipe 
        trades at a site approved by the board 
        of trustees of the Minnesota state 
        colleges and universities on the campus 
        of the St. Paul technical college.  If 
        the donor builds the building, before 
        the beginning of construction, (1) the 
        board must grant a temporary 
        construction easement to the donor for 
        the area upon which the building is to 
        be built, along with necessary staging 
        and ingress and egress areas, (2) the 
        board must approve the design, and (3) 
        the donor must agree in a writing 
        approved by the attorney general to 
        donate the building to the state, 
        effective upon the state entering into 
        possession, at which time title to the 
        building passes to the state. 
        Subd. 26.  Winona State University                   30,000,000
        To design, construct, furnish, and 
        equip a new science building to serve 
        programs in biology, chemistry, 
        geoscience, physics, nursing, health 
        sciences, engineering, and K-12 science 
        teacher preparation. 
        Subd. 27.  Science Lab Renovations                    1,900,000
        To design, renovate, furnish, and equip 
        science laboratories at the campuses of 
        Southeast technical college at Winona 
        and Red Wing, Minnesota West at Canby 
        and Worthington, Minneapolis community 
        and technical college, and South 
        Central technical college at Faribault. 
        Subd. 28.  Land Acquisition                           1,000,000
        To acquire real property near the state 
        college and university campuses from 
        willing sellers. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 29.  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 for higher education asset 
        preservation and replacement in 
        subdivision 2, and 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. 30.  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.  PERPICH CENTER FOR ARTS EDUCATION 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                               768,000
        Subd. 2.  Asset Preservation                            643,000 
        For asset preservation capital 
        improvements on the campus, including 
        east wing climate control improvements, 
        ceiling replacements, centerwide 
        asbestos removal, flooring 
        replacements, and water pipe 
        replacement. 
        Subd. 3.  Performance Hall Catwalk                      125,000
        To design and construct a lighting 
        catwalk along the east wall of the 
        performance hall. 
        Sec. 5.  CHILDREN, FAMILIES, AND LEARNING 
        Subdivision 1.  To the commissioner of
        children, families, and learning for the
        purposes specified in this section                   34,900,000
        Subd. 2.  Maximum Effort Capital                                
        Loans                                                12,400,000
        This appropriation is from the maximum 
        effort school loan fund for a capital 
        loan to independent school district No. 
        38, Red Lake, as provided in Minnesota 
        Statutes, sections 126C.60 to 126C.72, 
        to design, construct, renovate, 
        furnish, and equip school facilities, 
        and for health and safety capital 
        improvements to schools. 
        Up to $500,000 of this appropriation is 
        for predesign.  Any unused portion of 
        the $500,000 for predesign may be spent 
        for health and safety capital 
        improvements to the high school and 
        middle school. 
        The commissioner shall review the 
        proposed plan and budget of the project 
        and may reduce the amount of the 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 and construction by reducing the 
        proceeds of the loan paid by the 
        district.  The commissioner shall 
        report to the legislature any 
        reductions to the appropriations in 
        this subdivision by January 10, 2003.  
        Subd. 3.  Southwest Integration 
        Magnet Schools                                        1,000,000
        For a grant in accordance with the 
        metropolitan magnet school grant 
        program under Minnesota Statutes, 
        section 124D.88, to the West Metro 
        Education Program joint powers board to 
        acquire land, prepare a site, 
        predesign, and design a new building 
        for the Southwest Integration Magnet 
        School in St. Louis Park, to serve a 
        population of approximately 500 
        kindergarten through grade 8 students. 
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 4.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 5.  Minnesota         
        Planetarium                                           9,500,000
        For a grant to the city of Minneapolis 
        to design, construct, furnish, and 
        equip a new Minnesota planetarium, 
        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.  The 
        proportional share of the in-kind 
        contributions for the planetarium of 
        land, parking facilities, skyways, and 
        municipal infrastructure for the 
        planetarium may be counted as part of 
        the match.  The proportional share of 
        the costs to the city of constructing 
        mechanical and electrical systems, 
        common areas, service areas, freight 
        elevators, and walls and roofs for the 
        planetarium shared with the Minneapolis 
        library and included in the costs of 
        constructing the library may also be 
        counted as part of the match. 
        The legislature intends not to 
        appropriate additional money to 
        construct the planetarium until at 
        least $4,000,000 in cash contributions 
        have been committed to the project from 
        other than state or local government 
        funds. * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 6.  Asian Community Center                      1,000,000
        For a grant to the city of St. Paul to 
        design, construct, furnish, and equip 
        an Asian community 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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 7.  Colin Powell Youth
        Leadership Center                                       700,000
        For a grant to Hennepin county to 
        acquire land for and to design, 
        construct, furnish, and equip the Colin 
        Powell Youth Leadership center in 
        Minneapolis, subject to Minnesota 
        Statutes, section 16A.695.  The center 
        will include a national guard drill 
        area, an education wing, including a 
        computer lab, a multipurpose arts 
        facility, a community education space, 
        a nutrition education and cooking 
        skills work-preparation area, and four 
        new basketball courts. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 8.  Neighborhood 
        House/El Rio Vista                                    1,800,000
        For a grant to the city of St. Paul to 
        acquire land for and to design, 
        construct, furnish, and equip an 
        expansion of Neighborhood House/El Rio 
        Vista, 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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 9.  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 
        Arts Village 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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 10.  Early Childhood Learning                              
        and Child Protection Facilities                       2,000,000 
        For grants to construct or rehabilitate 
        facilities for programs under Minnesota 
        Statutes, section 119A.45. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Sec. 6.  MINNESOTA STATE ACADEMIES                    1,500,000 
        To the commissioner of administration 
        for asset preservation capital 
        improvements on both campuses of the 
        Minnesota state academies for the deaf 
        and the blind, including demolition of 
        the West Cottage.  
        Sec. 7.  NATURAL RESOURCES 
        Subdivision 1.  To the 
        commissioner of natural resources 
        for the purposes specified
        in this section                                     101,612,000
        Subd. 2.  Statewide Asset Preservation                2,600,000
        For asset preservation improvements and 
        betterments at department of natural 
        resources buildings statewide, 
        including removal of life safety 
        hazards and structural defects; 
        elimination or containment of hazardous 
        materials; code compliance 
        improvements; accessibility 
        improvements; replacement or renovation 
        of roofs, windows, tuckpointing, and 
        structural members; and improvements 
        necessary to preserve the interior and 
        exterior of buildings and other 
        infrastructure.  The commissioner shall 
        determine project priorities as 
        appropriate based upon need. 
        The unspent portion of an 
        appropriation, but not to exceed ten 
        percent of the appropriation, for a 
        project in this section that is 
        complete, is available for asset 
        preservation.  Minnesota Statutes, 
        section 16A.642, applies from the date 
        of the original appropriation to the 
        unspent amount transferred. 
        Subd. 3.  Field Office Renovations                    1,000,000 
        To design, acquire, renovate, 
        construct, furnish, and equip field 
        offices to relieve substandard employee 
        working conditions in existing 
        facilities.  
        Until June 30, 2006, the commissioner 
        of natural resources must not close 
        offices in Brainerd or Rochester, 
        Minnesota without first receiving 
        approval from the legislature. 
        Subd. 4.  Office Facility Development                 1,500,000 
        To acquire, design, construct, furnish, 
        and equip a consolidated area office 
        and service facility at Thief River 
        Falls. 
        Subd. 5.  ADA Compliance                                500,000 
        For improvements and betterments of a 
        capital nature to remove barriers and 
        make department of natural resources 
        buildings, programs, and services 
        accessible to individuals with 
        disabilities, in compliance with state 
        and federal ADA guidelines. 
        Subd. 6.  State Park Initiative                      28,000,000
        For building, utility, and natural 
        resource projects within the Minnesota 
        state park system according to the 
        management plan required in Minnesota 
        Statutes, chapter 86A, as follows:  
        (1) to design, renovate, construct, 
        furnish, and equip state park 
        buildings; and 
        (2) to design, renovate, furnish, and 
        equip capital facilities at state 
        parks, state recreation areas, and 
        forest recreation areas, including, but 
        not limited to, roads, trails, bridges, 
        campgrounds, and utility systems. 
        This appropriation must be used to 
        substantially implement the master plan 
        for improvements dated June 23, 1997, 
        for the historic golf course at Fort 
        Ridgely state park. 
        $1,600,000 is for improvements and 
        betterments of a capital nature to 
        develop the Big Bog state recreation 
        area, including constructing, 
        furnishing, and equipping a visitors 
        center. * (The preceding text beginning 
        "$1,600,000 is for improvements" was 
        indicated as vetoed by the governor.) 
        $2,900,000 is for improvements and 
        betterments of a capital nature to 
        develop the Red River state recreation 
        area, including construction of a 
        visitor's center. * (The preceding text 
        beginning "$2,900,000 is for 
        improvements" was indicated as vetoed 
        by the governor.) 
        Subd. 7.  State Park and Recreation Area
        Acquisition                                            3,000,000 
        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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 8.  Metro Regional Park Acquisition    
        and Betterment                                        8,700,000
        $6,000,000 is for a grant 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 improvements and 
        betterments of a capital nature, and 
        acquisition 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. 
        $2,700,000 is 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. * (The preceding text 
        beginning "$2,700,000 is for a grant" 
        was indicated as vetoed by the 
        governor.) 
        Subd. 9.  Regional Parks:   
        Greater Minnesota                                     4,000,000
        For grants to public regional parks 
        organizations located outside the 
        metropolitan area as defined in 
        Minnesota Statutes, section 473.121, 
        subdivision 2, to acquire land, design, 
        and construct and redevelop regional 
        parks and trails, open space, and 
        recreational facilities.  The 
        improvements must be of a capital 
        nature.  A greater Minnesota regional 
        parks organization with a project 
        previously funded through the regional 
        parks program, whether with bond funds 
        or other funds, at less than the total 
        eligible amount may reapply for the 
        total eligible amount from this 
        appropriation.  If it is awarded, the 
        organization must return the original 
        grant award.  Each $3 of state grants 
        must be matched by $2 of nonstate funds.
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 10.  Forest Road and Bridge 
        Projects                                              1,200,000 
        For reconstruction, resurfacing, 
        replacement, or construction of other 
        improvements of a capital nature to 
        state forest roads and bridges 
        throughout the state under Minnesota 
        Statutes, section 89.002.  The 
        commissioner shall determine project 
        priorities as appropriate based on need.
        Subd. 11.  Reforestation                              1,500,000
        For improvements authorized under the 
        Minnesota Constitution, article XI, 
        section 5, clause (f).  To increase 
        reforestation activities to meet the 
        reforestation requirements of Minnesota 
        Statutes, section 89.002, subdivision 
        2, including planting, seeding, site 
        preparation, purchasing tree seeds and 
        seedlings, improving forest stands, and 
        protecting plantations. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 12.  State Forest Land Acquisition                500,000 
        To acquire private lands from willing 
        sellers within established boundaries 
        of state forests throughout the state 
        under Minnesota Statutes, section 
        86A.05, subdivision 7. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 13.  State Trail Acquisition     
        and Development                                       3,650,000
        To acquire, develop, and renovate state 
        trails as specified in Minnesota 
        Statutes, section 85.015. 
        $725,000 is for the Gitchi-Gami trail. 
        * (The preceding text beginning 
        "$725,000 is for" was indicated as 
        vetoed by the governor.) 
        $450,000 is for the Shooting Star trail.
        * (The preceding text beginning 
        "$450,000 is for" was indicated as 
        vetoed by the governor.) 
        $300,000 is for the Luce Line trail. 
        $300,000 is for the Douglas trail. 
        $600,000 is for a grant to the city of 
        Austin to acquire land for the Blazing 
        Star trail. * (The preceding text 
        beginning "$600,000 is for a grant" was 
        indicated as vetoed by the governor.) 
        $475,000 is for the Goodhue Pioneer 
        trail. * (The preceding text beginning 
        "$475,000 is for" was indicated as 
        vetoed by the governor.) 
        $300,000 is for the Willard Munger 
        trail. 
        $500,000 is to connect the portions of 
        the Paul Bunyan trail in the city of 
        Bemidji, including constructing an 
        underpass.  This appropriation is not 
        available until the commissioner has 
        determined that an equal amount has 
        been committed by the city of Bemidji.  
        * (The preceding text beginning 
        "$500,000 is to connect" was indicated 
        as vetoed by the governor.) 
        Subd. 14.  Trail Connections                           1,857,000
        For matching grants under Minnesota 
        Statutes, section 85.019, subdivision 
        4c, including a grant to the city of 
        St. Louis Park to design and construct 
        a grade separated pedestrian and 
        regional trail crossing over CSAH No. 
        25/Trunk Highway 7 at Trunk Highway 100 
        to connect the Cedar Lake Regional 
        Trail and the Southwest LRT Regional 
        Trail, a grant to the city of New Ulm 
        to connect the city trail to Flandrau 
        state park, and a grant to Stearns 
        county for the Lake Koronis trail.  
        The commissioner shall determine other 
        project priorities as appropriate based 
        on need. * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 15.  Metro Greenways and Natural                          
        Areas                                                 1,000,000 
        To provide grants to local units of 
        government for acquisition or 
        betterment of greenways and natural 
        areas in the metro region and to 
        acquire greenways and natural areas in 
        the metro region through the purchase 
        of conservation easements or fee 
        titles.  The commissioner shall 
        determine the project priorities and 
        shall consult with representatives of 
        local units of government, nonprofit 
        organizations, and other interested 
        parties.  * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 16.  Well Sealing                                 600,000
        To identify and seal inactive wells on 
        state-owned land under Minnesota 
        Statutes, section 103I.311. 
        Subd. 17.  Lewis and Clark             
        Rural Water System                                      180,000
        This appropriation is from the general 
        fund. 
        For a grant to the Lewis and Clark 
        joint powers board to acquire land for, 
        and to predesign, design, construct, 
        furnish, and equip, a rural water 
        system to serve southwestern 
        Minnesota.  This appropriation is 
        available when matched by $8 of federal 
        money and $1 of local money for each $1 
        of state money. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 18.  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. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 19.  Dam Improvements                           1,800,000
        To renovate or remove publicly owned 
        dams.  
        Of this amount, up to $100,000 is for a 
        grant to Blue Earth county for 
        renovation of the Rapidan dam.  This 
        grant is not available until at least 
        an equal amount is committed to the 
        project from nonstate sources. * (The 
        preceding text beginning "Of this 
        amount, up to $100,000" was indicated 
        as vetoed by the governor.) 
        Up to $1,050,000 is for a grant to the 
        city of Crookston for phases 2 and 3 of 
        the Red Lake River restoration and 
        habitat improvement project.  * (The 
        preceding text beginning "Up to 
        $1,050,000 is for a grant" was 
        indicated as vetoed by the governor.) 
        The commissioner shall determine other 
        project priorities as appropriate based 
        on need as provided in Minnesota 
        Statutes, sections 103G.511 and 
        103G.515. 
        Subd. 20.  Flood Hazard Mitigation Grants            30,000,000 
        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. 
        This appropriation includes money for 
        the following projects:  Warren, East 
        Grand Forks, Agassiz, Montevideo, St. 
        Anthony, Granite Falls, Minneapolis at 
        27th and Knox Avenue North, St. Louis 
        Park, North Ottawa, Lebanon Hills in 
        Dakota county, Hay Creek, and Two River 
        watershed district Ross No. 7.  For any 
        project listed in this paragraph that 
        is not ready to proceed, the 
        commissioner may allocate that 
        project's money to the next project on 
        the commissioner's priority list and 
        St. Paul. 
        To the extent that the cost of a 
        project in Warren, East Grand Forks, 
        Montevideo, Breckenridge, Granite 
        Falls, Oakport, or Crookston 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. 21.  Stream Protection
        and Restoration                                       1,000,000
        For the design and implementation of 
        stream restoration projects that employ 
        natural channel design principles. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 22.  Water Access
        Acquisition and Development                           1,500,000
        For public water access acquisition, 
        construction, and renovation to capital 
        projects on lakes and rivers, including 
        construction of a fishing pier at Blue 
        Mound state park and other water access 
        through the provision of fishing piers 
        and shoreline access under Minnesota 
        Statutes, section 86A.05, subdivision 9.
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 23.  Lake Superior
        Safe Harbor                                           1,100,000
        To complete construction of the public 
        access at McQuade Road on Lake Superior 
        in cooperation with the U.S. Army Corps 
        of Engineers and the joint powers board 
        made up of the city of Duluth, St. 
        Louis county, the town of Duluth, and 
        the town of Lakewood. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 24.  Fish Hatchery
        Improvements                                            300,000
        For improvements of a capital nature to 
        design, construct, renovate, furnish, 
        and equip fish culture facilities under 
        Minnesota Statutes, section 97A.045, 
        subdivision 1. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 25.  Fisheries Acquisition 
        and Improvement                                         500,000
        To acquire aquatic management areas and 
        to make public improvements and 
        betterments of a capital nature to fish 
        habitat under Minnesota Statutes, 
        section 86A.05, subdivision 14.  * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 26.  Scientific and Natural Area                 
        Acquisition and Improvement                           2,500,000
        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. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 27.  Natural and Scenic Area      
        Land Acquisition Grants                               1,000,000
        For matching grants to local units of 
        government to acquire and better local 
        natural and scenic areas under 
        Minnesota Statutes, section 85.019, 
        subdivision 4a.  The commissioner shall 
        determine project priorities as 
        appropriate based on project 
        significance and need. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 28.  RIM Consolidated 
        Wildlife and Critical Habitat Match                   1,000,000
        To acquire land and interests in land 
        for wildlife management area purposes 
        under Minnesota Statutes, section 
        97A.145; for improvements of a capital 
        nature to develop, protect, or improve 
        wildlife management areas and other 
        state lands throughout the state under 
        Minnesota Statutes, section 86A.05, 
        subdivision 8; and to provide state 
        match for the critical habitat private 
        sector matching account under Minnesota 
        Statutes, section 84.943, for the 
        acquisition or improvement of critical 
        fish, wildlife, and native plant 
        habitats.  
        Subd. 29.  Native Prairie    
        Bank Easements                                        1,000,000
        For acquisition of native prairie bank 
        easements under Minnesota Statutes, 
        section 84.96. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Sec. 8.  POLLUTION CONTROL AGENCY                    10,000,000 
        To the pollution control agency to 
        design and construct remedial systems 
        and acquire land at landfills 
        throughout the state in accordance with 
        the closed landfill program under 
        Minnesota Statutes, section 115B.39. 
        Sec. 9.  OFFICE OF ENVIRONMENTAL ASSISTANCE
        Subdivision 1.  To the office of environmental
        assistance for the purposes specified
        in this section                                       4,750,000
        Subd. 2.  Solid Waste Capital          
        Assistance Grants                                     3,600,000
        To the office of environmental 
        assistance for the solid waste capital 
        assistance grants program under 
        Minnesota Statutes, section 115A.54.  
        Grants from this appropriation must be 
        awarded to applicants whose 
        applications were on file with the 
        office before January 1, 2002.  The 
        office must give priority for grants to 
        projects that expand processing 
        capacity. * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 3.  Fergus Falls -              
        Solid Waste Combustor                                 1,150,000
        For a grant to the city of Fergus Falls 
        to design, construct, and equip the 
        city's municipal solid waste combustor 
        with new air pollution control 
        equipment to meet federal and state 
        environmental guidelines.  This grant 
        is in addition to any other state 
        grants previously awarded for this 
        project, including the 1997 grant to 
        the city of Fergus Falls by the office 
        of environmental assistance.  This 
        appropriation is not available until 
        the commissioner has determined that at 
        least $1,150,000 has been committed 
        from nonstate sources. 
        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                    8,250,000 
        Subd. 2.  RIM Conservation
        Easements                                             2,000,000 
        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. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.)  
        Subd. 3.  Shoreland Protection           
        Program                                                 750,000
        To acquire conservation easements in 
        environmentally sensitive lake and 
        river shoreland areas from private 
        landowners.  The board may award grants 
        to local soil and water conservation 
        districts and participating local units 
        of government to accomplish the 
        purposes of this program, in accordance 
        with new Minnesota Statutes, section 
        103F.225.  
        $100,000 of this amount may be used to 
        administer the program. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 4.  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.  * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 5.  Lazarus Creek                               1,500,000
        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.  * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 6.  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. 
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 11.  AGRICULTURE                                          
        Subdivision 1.  To the commissioner of
        administration or another named agency for
        the purposes specified in this section               15,292,000
        Subd. 2.  Rural Finance Authority      
        Loan Participation                                   15,000,000
        For purposes as set forth in the 
        Minnesota Constitution, article XI, 
        section 5, clause (h).  To the rural 
        finance authority to purchase 
        participation interests in or to make 
        direct agricultural loans to farmers 
        under Minnesota Statutes, chapter 41B.  
        This appropriation is for the beginning 
        farmer program under Minnesota 
        Statutes, section 41B.039, the loan 
        restructuring program under Minnesota 
        Statutes, section 41B.04, the 
        seller-sponsored program under 
        Minnesota Statutes, section 41B.042, 
        the agricultural improvement loan 
        program under Minnesota Statutes, 
        section 41B.043, and the livestock 
        expansion loan program under Minnesota 
        Statutes, section 41B.045.  All debt 
        service on bond proceeds used to 
        finance this appropriation must be 
        repaid by the rural finance authority 
        under Minnesota Statutes, section 
        16A.643.  Loan participations must be 
        priced to provide full interest and 
        principal coverage and a reserve for 
        potential losses. 
        Priority for loans must be given first 
        to basic beginning farmer loans; 
        second, to seller-sponsored loans; and 
        third, to agricultural improvement 
        loans. 
        Subd. 3.  Expansion of Metro           
        Greenhouse and Storage Bay                              292,000
        To design, construct, furnish, and 
        equip an expansion of the greenhouse 
        facility owned by the department of 
        agriculture on the campus of 
        Metropolitan state university in St. 
        Paul. * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 12.  MINNESOTA ZOOLOGICAL
        GARDENS                                              
        Subdivision 1.  To the Minnesota 
        Zoological Gardens for the purposes 
        specified in this section                            11,184,000
        Subd. 2.  Asset Preservation                          3,000,000
        For capital asset preservation 
        improvements and betterments. 
        Subd. 3.  Phase 1 of Master Plan                      8,184,000
        To design, construct, furnish, and 
        equip zoo facilities consistent with 
        phase 1 of the facilities and business 
        master plan for the Asia Trail.  Up to 
        $1,000,000 of this appropriation may be 
        used to design other components of 
        phase 1.  
        This appropriation is not available 
        until the commissioner of finance has 
        determined that additional money at 
        least equal to 25 percent of the 
        appropriated amount has been committed 
        to the project from nonstate sources. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 13.  ADMINISTRATION 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                            83,722,000
        Subd. 2.  Capital Asset
        Preservation and Replacement (CAPRA)                 14,000,000
        To be spent in accordance with 
        Minnesota Statutes, section 16A.632.  
        The unspent portion of an 
        appropriation, but not to exceed ten 
        percent of the appropriation, for a 
        project in this section that is 
        complete, is available for capital 
        asset preservation and replacement.  
        Minnesota Statutes, section 16A.642, 
        applies from the date of the original 
        appropriation to the unspent amount 
        transferred. 
        Subd. 3.  Electrical Utility
        Infrastructure - Phase 6                              3,231,000
        To complete the upgrade of the 
        high-voltage primary electrical 
        distribution system in the capitol 
        complex, replace the emergency 
        generator in the Capitol, and upgrade 
        the non-high-voltage electrical system 
        in the Capitol building. 
        Subd. 4.  Agency Relocation                           1,500,000 
        This appropriation is from the general 
        fund. 
        For relocation of state agencies as 
        determined by the commissioner of 
        administration, including, but not 
        limited to, the bureau of criminal 
        apprehension, tenants in the Veterans 
        Services building, and the departments 
        of Trade and Economic Development and 
        Economic Security or their successor. 
        Subd. 5.  Renovate Governor's
        Residence                                             4,291,000
        To design, renovate, furnish, and equip 
        the Governor's residence in St. Paul.  
        $45,000 is from the general fund for 
        relocation expenses. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 6.  Health and Agriculture       
        Laboratories                                         60,000,000
        To design, construct, furnish, and 
        equip a joint laboratory facility in 
        St. Paul for the departments of health 
        and agriculture. 
        Subd. 7.  Health, Agriculture, and Human Services 
        Office Facilities                               
        The commissioner of administration may 
        enter into one or more long-term 
        lease-purchase agreements with the St. 
        Paul port authority or any other 
        governmental entity, for terms of up to 
        25 years, for the development of office 
        facilities in St. Paul for the 
        departments of health, agriculture, and 
        human services.  The commissioner must 
        submit each agreement to the 
        legislative commission on planning and 
        fiscal policy for its recommendation.  
        If the commission does not provide the 
        commissioner with a recommendation 
        within 30 days of receiving the 
        agreement, the recommendation is 
        considered to be positive.  A 
        recommendation is advisory only.  The 
        lease-purchase agreements are exempt 
        from Minnesota Statutes, sections 
        15.50, subdivision 2, paragraph (e); 
        and 16B.24, subdivisions 6 and 6a.  The 
        lease-purchase agreements must not be 
        terminated except for nonappropriation 
        of money.  The lease-purchase 
        agreements must provide the state with 
        a unilateral right to purchase the 
        leased premises at specified times for 
        specified amounts.  The office facility 
        for the department of human services 
        must not have more gross square feet of 
        space than the department occupies as 
        of the effective date of this section 
        for offices that will be moved to the 
        new facility.  
        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.  
        Subd. 9.  Government Services          
        Center                                                  700,000
        To predesign in Olmsted county a 
        government services facility to 
        colocate federal, state, and local 
        government offices, to the extent that 
        the predesign determines their 
        colocation to be feasible and 
        practical.  Participating agencies to 
        be evaluated in the predesign must 
        include, but need not be limited to, 
        the city of Rochester; Olmsted county; 
        the state departments of natural 
        resources, commerce, economic security, 
        health, pollution control, revenue, and 
        the board of water and soil resources; 
        and appropriate federal agencies.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 14.  CAPITOL AREA ARCHITECTURAL
        AND PLANNING BOARD                                      646,000
        The appropriation in this section may 
        not be spent on any project that 
        affects space under the control of the 
        senate without the approval of the 
        secretary of the senate nor on any 
        project that affects space under the 
        control of the house of representatives 
        without the approval of the chief clerk 
        of the house. 
        To the commissioner of administration 
        to plaster and repaint public spaces 
        and to conserve and repair existing 
        artwork on the ground, first, and 
        second floors of the capitol building. 
        This appropriation is from the general 
        fund. 
        Sec. 15.  AMATEUR SPORTS COMMISSION
        Subdivision 1.  To the amateur sports
        commission for the purposes specified
        in this section                                       8,250,000
        Subd. 2.  Sports Conference Center                    5,000,000
        To construct, furnish, and equip a 
        sports conference center on the campus 
        of the National Sports Center and for 
        related capital development costs, 
        subject to Minnesota Statutes, section 
        16A.695. * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 3.  National Volleyball
        Center - Phase 2                                      3,000,000
        To design, construct, furnish, and 
        equip Phase 2 of the National 
        Volleyball Center in Rochester.  * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 4.  Mount Itasca Biathlon
        Training Facility                                       250,000
        To complete construction of the Mount 
        Itasca biathlon training project.  This 
        appropriation is not available until at 
        least an equal amount has been 
        committed to the project from nonstate 
        sources. * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Sec. 16.  ARTS                                                 
        Subdivision 1.  To the commissioner of
        administration for the purposes specified
        in this section                                      31,000,000
        Subd. 2.  Bloomington -               
        Bloomington Center for the Arts                       1,000,000
        This appropriation is from the general 
        fund. 
        For a grant to the city of Bloomington 
        to furnish and equip a new multipurpose 
        public arts facility to facilitate the 
        economic development, education, and 
        cultural activities in the city of 
        Bloomington that will serve the 
        southern and southwest metro areas. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 3.  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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 4.  Minneapolis -              
        Guthrie Theater                                      24,000,000
        For a grant to the Minneapolis 
        community development agency to acquire 
        and prepare a site for and to design, 
        construct, furnish, and equip a new 
        Guthrie Theater in the city of 
        Minneapolis.  The Minneapolis community 
        development agency 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 an equal amount has been 
        committed from nonstate sources.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 5.  Rochester -                  
        Rochester Art Center                                  1,000,000
        This appropriation is from the general 
        fund. 
        For a grant to the city of Rochester to 
        design the new Rochester Art Center. 
        This appropriation is not available 
        until the commissioner has determined 
        that an equal amount has been committed 
        from nonstate sources. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 6.  St. Paul -  
        Minnesota African-American 
        Performing Arts Center 
        Notwithstanding Minnesota Statutes, 
        section 16A.642, $1,250,000 of the 
        appropriation in Laws 1999, chapter 
        240, article 2, section 12, subdivision 
        14, is available until July 1, 2003. 
        Sec. 17.  MILITARY AFFAIRS 
        Subdivision 1.  To the adjutant
        general for the purposes specified
        in this section                                       4,357,000
        Subd. 2.  Asset Preservation                          2,500,000 
        For asset preservation improvements and 
        betterments of a capital nature at 
        military affairs facilities statewide. 
        Subd. 3.  ADA Improvements                              357,000 
        For improvements and betterments of a 
        capital nature to remove barriers and 
        make department of military affairs 
        buildings, programs, and services 
        accessible to individuals with 
        disabilities, in compliance with state 
        and federal ADA guidelines. 
        Subd. 4.  Facility Life Safety         
        Improvements                                          1,000,000
        For life/safety improvements and 
        betterments of a capital nature at 
        military affairs facilities statewide. 
        Subd. 5.  Camp Ripley Antiterrorism
        Facility                                                500,000
        For predesign of a joint military/law 
        enforcement antiterrorism training 
        facility at Camp Ripley. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Sec. 18.  TRANSPORTATION 
        Subdivision 1.  To the 
        commissioner of transportation for 
        the purposes specified in this section               92,500,000
        Subd. 2.  Local Bridge Replacement
        and Rehabilitation                                   45,000,000
        This appropriation is from the bond 
        proceeds account in the state 
        transportation fund as provided in 
        Minnesota Statutes, section 174.50, to 
        match federal money 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.  Local Road Improvement Program             20,000,000 
        Of this appropriation: 
        (1) $10,000,000 is for deposit in the 
        trunk highway corridor projects account 
        in the local road improvement fund 
        under new Minnesota Statutes, section 
        174.52, subdivision 2. 
        (2) $10,000,000 is for deposit in the 
        local road account for routes of 
        regional significance in the local road 
        improvement fund under new Minnesota 
        Statutes, section 174.52, subdivision 4.
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 4.  Town Road Sign Replacement                  1,000,000 
        For grants to political subdivisions to 
        pay the local share of costs of town 
        road sign replacement under the federal 
        highway administration's hazard 
        elimination program.  Grants under this 
        subdivision may only be used for the 
        purchase of signs that conform to the 
        commissioner of transportation's 
        uniform manual of traffic control 
        devices, including applicable 
        reflective sheeting requirements, and 
        that have a useful life of at least 20 
        years. * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 5.  Duluth Aerial               
        Lift Bridge                                           1,000,000
        For a grant to the city of Duluth for 
        capital restoration of the aerial lift 
        bridge.  This appropriation is 
        available when matched by $1 of money 
        secured or provided by the city of 
        Duluth for each $1 of state money. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 6.  Port Development Assistance                 3,000,000 
        For grants under Minnesota Statutes, 
        sections 457A.01 to 457A.06.  Any 
        improvements made with the proceeds of 
        these grants must be publicly owned. * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 7.  Freight Access Improvements                 7,000,000
        Each grant 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. 
        $3,500,000 is for a grant to the city 
        of Savage to improve highway access to 
        the ports of Savage.  The improvements 
        may include local frontage roads, 
        access consolidations, road closures, 
        new signals, and acceleration and 
        deceleration lanes.  
        $3,500,000 is 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.  * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 8.  Greater Minnesota 
        Transit Facilities                                    2,000,000
        For capital assistance for greater 
        Minnesota transit systems to be used 
        for transit capital facilities.  Money 
        from this appropriation may be used to 
        pay up to 80 percent of the nonfederal 
        share of these facilities. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 9.  Radio Communications
        Statewide System                                     13,000,000
        To design and construct the statewide 
        public safety radio communications 
        system infrastructure, coordinating it 
        with other state and local units of 
        government, and extending it to all of 
        the southeast district of the state 
        patrol, and into the central district 
        of the state patrol, with first 
        priority given to development in 
        Stearns, Sherburne, Benton, and Wright 
        counties, subject to the requirements 
        of Minnesota Statutes, section 16A.695. 
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 10.  DM&E Working Group                           500,000
        This appropriation is from the general 
        fund and is for the purposes of section 
        86. * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 19.  METROPOLITAN COUNCIL
        Subdivision 1.  To the metropolitan 
        council for the purposes specified 
        in this section                                      30,500,000
        Subd. 2.  Northwest Busway                           20,000,000 
        To design and construct a busway in the 
        northwest metropolitan area between 
        downtown Minneapolis and Rogers.  This 
        appropriation is contingent on 
        $12,000,000 from Hennepin county and 
        $5,000,000 from the metropolitan 
        council for the project.  Total funding 
        from all sources may be used for 
        roadway design, reconstruction, 
        acquisition of land and right-of-way, 
        and to design, construct, furnish, and 
        equip transit stations and park and 
        rides.  Design-build under new 
        Minnesota Statutes, sections 383B.158 
        to 383B.1586, may be used for 
        implementing this project. 
        Subd. 3.  Livable Communities Grant
        Program                                               9,000,000
        For public infrastructure grants for 
        development and redevelopment projects 
        of the livable communities grant 
        program under Minnesota Statutes, 
        sections 473.25 to 473.255, as 
        applicable. 
        In development of the project, the 
        council shall:  
        (1) take into consideration livable 
        communities principles, including 
        support of housing production and 
        ensuring integration of land use and 
        transportation needs of communities 
        along the route of the busway; 
        (2) take advantage of any local funding 
        for the project that may be available; 
        and 
        (3) encourage citizen and stakeholder 
        participation in development of the 
        project. 
        Before soliciting any applications for 
        grants, the council must present its 
        proposed criteria for ranking projects 
        and the proposed application process to 
        the legislative commission on 
        metropolitan government for review and 
        recommendations.  Before making any 
        grant awards after receiving 
        applications for funding, the council 
        must present to the legislative 
        commission on metropolitan government 
        for review and comment, a complete list 
        of applications received by the council 
        by the application deadline, the 
        council's ranking under the adopted 
        criteria, and the proposed funding 
        awards. * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 4.  Park-and-Ride Facilities                      500,000 
        For land acquisition and construction 
        of park-and-ride facilities in the 
        seven-county metropolitan area outside 
        the transit taxing district defined in 
        Minnesota Statutes, section 473.446, 
        subdivision 2. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 5.  Central Corridor  
        Transitway                                            1,000,000
        For predesign, design, final 
        environmental impact statement, and 
        preliminary engineering of the Central 
        Corridor Bus Transitway between St. 
        Paul and the city of Minneapolis.  This 
        appropriation must not be used for any 
        work on rail transportation.  * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Sec. 20.  COMMERCE                                    5,000,000
        To the commissioner of finance for the 
        energy conservation investment loan 
        program under Minnesota Statutes, 
        section 216C.37. 
        Sec. 21.  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. * (The 
        preceding section was indicated as 
        vetoed by the governor.) 
        Sec. 22.  HUMAN SERVICES
        Subdivision 1.  To the 
        commissioner of administration 
        for the purposes specified 
        in this section                                      22,838,000
        Subd. 2.  Systemwide Roof
        Renovation and Replacement                            2,789,000
        For renovation and replacement of roofs 
        at department of human services 
        facilities statewide. 
        Subd. 3.  Systemwide Asset
        Preservation                                          4,000,000
        For asset preservation improvements and 
        betterments of a capital nature at 
        state regional treatment centers.  
        The unspent portion of an 
        appropriation, but not to exceed ten 
        percent of the appropriation, for a 
        project in this section that is 
        complete, is available for asset 
        preservation.  Minnesota Statutes, 
        section 16A.642, applies from the date 
        of the original appropriation to the 
        unspent amount transferred. 
        Subd. 4.  Systemwide -                 
        Building and Structure Demolition                     2,750,000
        To demolish and dispose of hazardous 
        materials from obsolete buildings at 
        state regional treatment centers.  
        Subd. 5.  Brainerd                   
        Regional Treatment Center                             6,305,000
        To design, renovate, furnish, and equip 
        the residential and program areas in 
        building No. 20. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 6.  Fergus Falls                 
        Regional Treatment Center                             3,000,000
        To design, renovate, construct, 
        furnish, and equip ancillary support 
        and program facilities, including 
        improvements to basic infrastructure, 
        hazardous materials abatement, and 
        demolition that will facilitate the 
        relocation of the facility's ancillary 
        support, treatment, and residential 
        programs from the Kirkbride buildings. 
        Subd. 7.  St. Peter 
        Regional Treatment Center                             3,619,000
        To design and replace the high-pressure 
        steam boilers and convert the system to 
        a low-pressure steam system at the St. 
        Peter regional treatment center. 
        Subd. 8.  People, Inc. 
        North Side Community Support Program                    375,000
        This appropriation is from the general 
        fund. 
        For a grant to Minneapolis Community 
        Development Agency to purchase, 
        remodel, and complete accessibility 
        upgrades to an existing building or to 
        acquire land or construct a building to 
        be used by the People, Inc. North Side 
        Community Support Program, which may 
        provide office space for state 
        employees.  
        This grant is available when matched by 
        at least $175,000 from nonstate sources.
        * (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 9.  Designer Selection                                   
        Notwithstanding Minnesota Statutes, 
        section 16B.33, the commissioner of 
        administration may select design firms 
        for projects funded in this section 
        that are considered repair, 
        replacement, or asset preservation in 
        nature and are not intended to 
        construct, erect, or remodel a 
        building.  For this purpose, remodeling 
        means reconfiguring and upgrading 
        interior space, not replacing building 
        components or equipment. 
        Sec. 23.  VETERANS HOMES BOARD 
        Subdivision 1.  To the commissioner
        of administration for the purposes
        specified in this section                            12,898,000  
        Subd. 2.  Asset Preservation                          2,000,000 
        For asset preservation improvements and 
        betterments of a capital nature at 
        veterans homes statewide. 
        Subd. 3.  Hastings Veterans Home - Phase 3            8,553,000 
        For design and renovation of the 
        utility infrastructure systems and 
        related improvements at the campus of 
        the Hastings veterans home. 
        Subd. 4.  Silver Bay Veterans Home                    2,345,000
        To replace the roof. 
        Sec. 24.  CORRECTIONS 
        Subdivision 1.  To the commissioner of
        administration for the purposes specified
        in this section                                      25,870,000
        Subd. 2.  Asset Preservation                         17,000,000 
        For improvements and betterments of a 
        capital nature at Minnesota 
        correctional facilities statewide, 
        including, but not limited to, 
        completing the perimeter wall and 
        security improvements at 
        MCF-Stillwater.  A portion of this 
        appropriation may be used for wetland 
        mitigation for the Rush City prison.  
        The unspent portion of an 
        appropriation, but not to exceed ten 
        percent of the appropriation, for a 
        project in this section that is 
        complete, is available for asset 
        preservation.  Minnesota Statutes, 
        section 16A.642, applies from the date 
        of the original appropriation to the 
        unspent amount transferred. 
        Subd. 3.  Minnesota Correctional       
        Facility - Lino Lakes                                 4,160,000
        To design, construct, furnish, and 
        equip a new 416-bed unit to house 
        offenders. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least $10,179,000 has been 
        committed from federal sources.  
        Subd. 4.  Minnesota Correctional       
        Facility - Shakopee                                   3,070,000
        To design, construct, renovate, 
        furnish, and equip the Independent 
        Living Center (ILC) into a 48-bed 
        general population living unit; 
        increase space in the kitchen, serving, 
        and eating areas; increase space in the 
        visitation area; and modify the staff 
        control station in the segregation unit 
        to provide adequate space for updated 
        technical equipment and more room for 
        staff. 
        Subd. 5.  Minnesota Correctional       
        Facility - Stillwater                                    90,000
        To predesign a new 150-bed segregation 
        unit on the facility grounds. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 6.  Bayport Storm Sewer                         1,550,000
        For a grant to the city of Bayport for 
        the Middle St. Croix River Watershed 
        Management organization to complete 
        construction of the sewer system 
        extending from Minnesota department of 
        natural resources pond 82-310P (the 
        prison pond) in Bayport through the 
        Stillwater prison grounds to the St. 
        Croix river.  * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Sec. 25.  TRADE AND ECONOMIC DEVELOPMENT
        Subdivision 1.  To the commissioner of
        trade and economic development or other
        named agency for the purposes
        specified in this section                            84,650,000
        Subd. 2.  Redevelopment Account                       4,000,000 
        For transfer to the redevelopment 
        account created in new Minnesota 
        Statutes, section 116J.571.  This 
        appropriation is only available for 
        grants to projects located outside of 
        the seven-county metropolitan area. 
        $1,000,000 is 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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 3.  State Match for Federal Grants             16,000,000 
        To the public facilities authority to 
        match federal grants for eligible 
        projects in the water pollution control 
        revolving fund under Minnesota 
        Statutes, section 446A.07, and the 
        drinking water revolving loan fund 
        under Minnesota Statutes, section 
        446A.081. 
        Subd. 4.  Wastewater Infrastructure                            
        Funding Program                                      30,600,000 
        $600,000 of this appropriation is from 
        the general fund to administer the 
        wastewater infrastructure program. 
        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. 
        The pollution control agency shall 
        prepare amendments to Minnesota Rules, 
        part 7077.0115, for ranking wastewater 
        projects on the project priority list 
        that take into account issues such as, 
        but not limited to, the age and 
        condition of existing wastewater 
        treatment systems, issues associated 
        with growth, and the effects on 
        municipalities when a moratorium on new 
        sewer connections is imposed.  The 
        agency shall report on its recommended 
        rule amendments to the chairs of the 
        house environment and natural resources 
        finance committee, the house jobs and 
        economic development finance committee, 
        the house capital investment committee, 
        the senate environment and agricultural 
        finance division, the senate jobs, 
        housing and community development 
        committee, and the senate capital 
        investment committee by February 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. * (The preceding 
        subdivision was indicated as vetoed by 
        the governor.) 
        Subd. 5.  Fairmont -                   
        Winnebago Avenue Sports Complex                         500,000
        For a grant to the city of Fairmont to 
        acquire land for, renovate, and expand 
        the Winnebago Avenue sports complex, 
        including reconfiguring two ball 
        fields, adding two fields, paving a 
        parking lot, and building other 
        amenities.  
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 6.  Greater Minnesota Business
        Development Infrastructure Grant Program             12,000,000
        For grants under new Minnesota 
        Statutes, section 116J.431. * (The 
        preceding subdivision was indicated as 
        vetoed by the governor.) 
        Subd. 7.  Itasca County - Children's 
        Discovery Museum                                        300,000
        For a grant to Itasca county to design, 
        construct, furnish, and equip the 
        Children's Discovery Museum in Grand 
        Rapids.  The county 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.  * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 8.  Minneapolis -
        Empowerment Zone Projects                             3,000,000
        For a grant to the city of Minneapolis 
        to acquire land and to design, 
        construct, furnish, and equip public 
        infrastructure improvements in the 
        following empowerment zone projects:  
        the Near Northside redevelopment 
        project; the Chicago/Lake project; and 
        the South East Minneapolis industrial 
        redevelopment project. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 9.  Olivia -                     
        Minnesota Center for Agricultural Innovation          1,000,000
        For a grant to the city of Olivia to 
        acquire land and to design, construct, 
        furnish, and equip the Minnesota Center 
        for Agricultural Innovation, 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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 10.  St. Cloud -                 
        Civic Center Expansion                                3,250,000
        For a grant to the city of St. Cloud 
        for asset preservation, land 
        acquisition, and to predesign, design, 
        construct, furnish, and equip the 
        expansion of the St. Cloud Civic Center.
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 11.  St. Paul -                   
        Roy Wilkins Auditorium                                4,000,000
        For a grant to the city of St. Paul for 
        asset preservation of the Roy Wilkins 
        Center. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 12.  St. Paul-Phalen Boulevard                  8,000,000 
        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.  * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 13.  St. Paul -                   
        2004 Renaissance Project                              2,000,000
        For a grant to the city of St. Paul to 
        design and construct river edge 
        improvements and make capital 
        improvements and betterments for a 
        public park on Raspberry Island. 
        This appropriation is not available 
        until the commissioner has determined 
        that at least an equal amount has been 
        committed from nonstate sources.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Sec. 26.  IRON RANGE RESOURCES AND     
        REHABILITATION BOARD                                  1,500,000
        To design, construct, furnish, and 
        equip Mesabi station as the central 
        guest services facility for the Mesabi 
        trail. * (The preceding section was 
        indicated as vetoed by the governor.) 
        Sec. 27.  HOUSING FINANCE AGENCY                     16,200,000 
        To the commissioner of the housing 
        finance agency for loans and grants for 
        publicly owned transitional and 
        permanent housing under Minnesota 
        Statutes, section 462A.202, 
        subdivisions 2 and 3a.  Notwithstanding 
        Minnesota Statutes, section 462A.202, 
        subdivision 3a, the loans or grants 
        must be used for the development, 
        construction, acquisition, or 
        rehabilitation of transitional or 
        permanent housing to serve veterans and 
        single adults who are homeless or at 
        risk of becoming homeless.  The loans 
        or grants must be used for two housing 
        projects that: 
        (1) are located on property owned by 
        the United States Department of 
        Veterans Affairs that is leased by the 
        Department of Veterans Affairs to the 
        owners of the housing projects; 
        (2) provide or coordinate health and 
        social services needed by the 
        residents; and 
        (3) are a collaborative partnership 
        between community agencies, local units 
        of government, and the federal 
        government. 
        Sec. 28.  MINNESOTA HISTORICAL SOCIETY 
        Subdivision 1.  To the Minnesota 
        Historical Society for the purposes 
        specified in this section                             3,967,000
        Subd. 2.  Historic Site Asset 
        Preservation                                          2,442,000
        (a) For capital improvements and 
        betterments at state historic sites, 
        buildings, landscaping at historic 
        buildings, exhibits, markers, and 
        monuments.  The society shall determine 
        project priorities as appropriate based 
        on need. 
        (b) Of this amount, $1,000,000 is for 
        asset preservation of the William G. 
        LeDuc house.  This appropriation is 
        available only if the historical 
        society enters into an agreement with 
        the city of Hastings, or another public 
        entity, providing for transfer of 
        ownership of the property to the city 
        or the other public entity when the 
        asset preservation work is completed, 
        and providing that the city or other 
        public entity will provide for 
        additional renovation and operation of 
        the site.  If an agreement for the 
        transfer of ownership of the LeDuc 
        house site is not entered into by March 
        31, 2003, this amount is available for 
        asset preservation under paragraph 
        (a).  This appropriation is available 
        until spent, notwithstanding section 
        1.  The city or other public entity may 
        enter into an agreement with a 
        nonprofit organization for the 
        operation of the site subject to 
        Minnesota Statutes, section 16A.695.  
        Subd. 3.  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.  * 
        (The preceding subdivision was 
        indicated as vetoed by the governor.) 
        Subd. 4.  Sibley House Historic Site                    300,000
        To renovate buildings at the site and 
        design future renovations. 
        Subd. 5.  Fort Snelling Historic Site                   500,000
        $400,000 is to design a variety of 
        construction projects needed for a 
        major redevelopment and renewal of 
        historic Fort Snelling. 
        $100,000 is to expand restrooms in the 
        current visitor center. 
        Subd. 6.  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. * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 7.  New Brighton                 
        Caboose and History Center                              100,000
        This appropriation is from the general 
        fund. 
        For a grant to the New Brighton area 
        historical society to renovate its 
        caboose and history center in Long Lake 
        Regional Park. 
        This appropriation is not available 
        until the commissioner of finance has 
        determined that at least an equal 
        amount has been committed from nonstate 
        sources.  * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Subd. 8.  Pipestone County Museum                      125,000
        For a grant to the city of Pipestone to 
        design and construct an external shaft 
        and hoist way and install an elevator 
        adjacent to the Pipestone County Museum 
        and renovate a third-floor area to be 
        used as a community room and a museum 
        programs room, subject to Minnesota 
        Statutes, section 16A.695. 
        This appropriation is not available 
        until the commissioner of finance has 
        determined that at least an equal 
        amount has been committed from nonstate 
        sources.  * (The preceding subdivision 
        was indicated as vetoed by the 
        governor.) 
        Sec. 29.  BOND SALE EXPENSES                            880,000 
        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. 30.  [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 $920,235,000 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.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] To provide the 
        money appropriated in 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 $12,400,000 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 maximum effort school loan fund. 
           Subd. 3.  [TRANSPORTATION FUND.] To provide the money 
        appropriated in this act from the state transportation fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $45,000,000 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. 31.  [CANCELLATIONS.] 
           Subdivision 1.  $500,000 of the appropriation in Laws 1996, 
        chapter 463, section 4, subdivision 2, for youth initiative 
        grants, is canceled.  The bond sale authorization in Laws 1996, 
        chapter 463, section 27, subdivision 1, is reduced by $500,000. 
           Subd. 2.  $1,449,000 of the appropriation in Laws 1996, 
        chapter 463, section 21, for early childhood learning facilities 
        is canceled.  The bond sale authorization in Laws 1996, chapter 
        463, section 27, subdivision 1, is reduced by $1,449,000. 
           Subd. 3.  The unobligated balance of the appropriation in 
        Laws 1998, chapter 404, section 7, subdivision 28, for the Sand 
        Dunes state forest center, estimated to be $113,000, is canceled 
        to the general fund. 
           Subd. 4.  $100,000 of the appropriation in Laws 1998, 
        chapter 404, section 7, subdivision 30, for the Hartley nature 
        center is canceled to the general fund. 
           Subd. 5.  The $375,000 appropriation in Laws 1998, chapter 
        404, section 18, subdivision 4, for the People, Inc. North Side 
        community support program, is canceled to the general fund. 
           Subd. 6.  $500,000 of the appropriation in Laws 1998, 
        chapter 404, section 23, subdivision 27, for a production 
        facility associated with an educational and training facility, 
        is canceled to the general fund. 
           Subd. 7.  The $400,000 appropriation in Laws 1998, chapter 
        404, section 25, subdivision 9, for a treaty site history 
        center, is canceled to the general fund. 
           Subd. 8.  $1,000,000 of the appropriation in Laws 2000, 
        chapter 492, article 1, section 14, subdivision 3, to the 
        commissioner of administration for a grant to the Minneapolis 
        community development agency, for the Guthrie Theater, vetoed on 
        May 15, 2000, and approved by the legislature overriding the 
        veto on May 17, 2000, is canceled to the general fund. 
           Sec. 32.  Minnesota Statutes 2000, section 16A.11, 
        subdivision 6, is amended to read: 
           Subd. 6.  [BUILDING MAINTENANCE AND CAPITAL BETTERMENT.] 
        The detailed operating budget and capital budget must include 
        amounts necessary to maintain and better 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 and betterment appropriations.  Unless otherwise 
        provided by the commissioner of finance, the combined amount to 
        be budgeted each year for building maintenance and betterment in 
        the operating budget and capital budget is two one percent of 
        the replacement cost of the building, adjusted up or down 
        depending on the age and condition of the building. 
           Sec. 33.  Minnesota Statutes 2000, section 16A.501, is 
        amended to read: 
           16A.501 [REPORT ON 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 for capital projects in previous 
        omnibus capital improvement acts 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. 34.  Minnesota Statutes 2000, section 16A.632, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STANDARDS.] Article XI, section 5, clause (a), 
        of the constitution states general obligation bonds may be 
        issued to finance only the acquisition or betterment of state 
        land, buildings, and improvements of a capital nature.  In 
        interpreting this and applying it to the purposes of the program 
        contemplated in this section, the following standards are 
        adopted for the disbursement of money from the capital asset 
        preservation and replacement account:  
           (a) No new land, buildings, or major new improvements will 
        be acquired.  These projects, including all capital expenditures 
        required to permit their effective use for the intended purpose 
        on completion, will be estimated and provided for individually 
        through a direct appropriation for each project.  
           (b) An expenditure will be made from the account only when 
        it is a capital expenditure on a capital asset previously owned 
        by the state, within the meaning of accepted accounting 
        principles as applied to public expenditures.  The commissioner 
        of administration will consult with the commissioner of finance 
        to the extent necessary to ensure this and will furnish the 
        commissioner of finance a list of projects to be financed from 
        the account in order of their priority.  The commissioner shall 
        also furnish each revision of the list.  The legislature assumes 
        that many provisions for preservation and replacement of 
        portions of existing capital assets will constitute betterments 
        and capital improvements within the meaning of the constitution 
        and capital expenditures under correct accounting principles, 
        and will be financed more efficiently and economically under the 
        program than by direct appropriations for specific projects.  
        However, the purpose of the program is to accumulate data 
        showing how additional costs may be saved by appropriating money 
        from the general fund for preservation measures, the necessity 
        of which is predictable over short periods.  
           (c) The commissioner of administration will furnish 
        instructions to agencies to apply for funding of capital 
        expenditures for preservation and replacement from the account, 
        will review applications, will make initial allocations among 
        types of eligible projects enumerated below, will determine 
        priorities, and will allocate money in priority order until the 
        available appropriation has been committed.  
           (d) Categories of projects considered likely to be most 
        needed and appropriate for financing are the following:  
           (1) unanticipated emergencies of all kinds, for which a 
        relatively small amount should be initially reserved, replaced 
        from money allocated to low-priority projects, if possible, as 
        emergencies occur, and used for stabilization rather than 
        replacement if the cost would exhaust the account and should be 
        specially appropriated; 
           (2) projects to remove life safety hazards, like 
        replacement of mechanical systems, building code violations, or 
        structural defects, at costs not large enough to require major 
        capital requests to the legislature; 
           (3) elimination or containment of hazardous substances like 
        asbestos or PCBs; and 
           (4) moderate cost replacement and repair of roofs, windows, 
        tuckpointing, and structural members necessary to preserve the 
        exterior and interior of existing buildings; and 
           (5) up to ten percent of an appropriation awarded under 
        this section may be used for design costs for projects eligible 
        to be funded from this account in anticipation of future funding 
        from the account.  
           Sec. 35.  Minnesota Statutes 2000, section 16A.86, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EVALUATION.] (a) The commissioner shall evaluate 
        all requests from political subdivisions for state assistance 
        based on the following criteria: 
           (1) the political subdivision has provided for local, 
        private, and user financing for the project to the maximum 
        extent possible; 
           (2) the project helps fulfill an important state mission; 
           (3) the project is of regional or statewide significance; 
           (4) the project will not require new or any additional 
        state operating subsidies; 
           (5) the project will not expand the state's role in a new 
        policy area; 
           (6) state funding for the project will not create 
        significant inequities among local jurisdictions; 
           (7) the project will not compete with other facilities in 
        such a manner that they lose a significant number of users to 
        the new project; and 
           (8) the governing bodies of those political subdivisions 
        primarily benefiting from the project have passed resolutions in 
        support of the project and have established priorities for all 
        projects within their jurisdictions for which bonding 
        appropriations are requested when submitting multiple requests; 
        and 
           (9) if a predesign that meets the requirements of section 
        16B.335 has been completed and is available at the time the 
        project request is submitted to the commissioner of finance, the 
        applicant has submitted the project predesign to the 
        commissioner of administration. 
           (b) The commissioner's evaluation of each request, 
        including whether it meets each of the criteria in paragraph 
        (a), must be submitted to the legislature along with the 
        governor's recommendations under section 16A.11, subdivision 1, 
        whether or not the governor recommends that the request be 
        funded. 
           Sec. 36.  [16B.245] [INVENTORY OF STATE-OWNED LAND.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, "state-owned land" means land, with or without 
        improvements upon it, for which the state owns fee title.  It 
        does not include: 
           (1) land held in trust by the state for political 
        subdivisions of the state; 
           (2) permanent school trust fund lands; 
           (3) university trust fund lands; 
           (4) mineral interests; or 
           (5) trunk highway right-of-way. 
           Subd. 2.  [INVENTORY.] The commissioner of administration 
        must inventory all state-owned land and determine the number of 
        acres owned by the state as of December 31, 2002.  The inventory 
        must identify for each parcel the state agency responsible for 
        the parcel, its location, size, and whether it is (1) currently 
        being used for a public purpose, (2) anticipated to be used for 
        a public purpose in the future, or (3) not currently being used 
        or anticipated to be used for a public purpose.  The inventory 
        must also identify how much land is included in each 
        classification under section 86A.05.  Within two months of 
        completing the inventory, and by January 15 each odd-numbered 
        year thereafter, the commissioner must report on the inventory 
        to the chairs of the house and senate committees with 
        jurisdiction over higher education, capital investment, and 
        natural resources and environment finance, and the chairs of the 
        house committee on ways and means and the senate committee on 
        finance. 
           Sec. 37.  Minnesota Statutes 2000, section 16B.31, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSTRUCTION PLANS AND SPECIFICATIONS.] (a)
        The commissioner shall (1) have plans and specifications 
        prepared for the construction, alteration, or enlargement of all 
        state buildings, structures, and other improvements except 
        highways and bridges, and except for buildings and structures 
        under the control of the board of regents of the university of 
        Minnesota or of the board of trustees of the Minnesota state 
        colleges and universities; (2) approve those plans and 
        specifications; (3) advertise for bids and award all contracts 
        in connection with the improvements; (4) supervise and inspect 
        all work relating to the improvements; (5) approve all lawful 
        changes in plans and specifications after the contract for an 
        improvement is let; and (6) approve estimates for payment.  This 
        subdivision does not apply to the construction of the zoological 
        gardens.  
           (b) Notwithstanding any law to the contrary, the 
        commissioner, the board of regents of the university of 
        Minnesota, and the board of trustees of the Minnesota state 
        colleges and universities may solicit and award a design-build 
        contract for those projects specifically designated by law for 
        design-build using the procedures provided in section 16C.31. 
           (c) Paragraph (b) expires January 1, 2004. 
           (d) The commissioner, the board, the board of regents of 
        the university of Minnesota, and the board of trustees of the 
        Minnesota state colleges and universities shall create a panel 
        of representatives, including representatives of the 
        construction industry and the architecture and engineering 
        professions, to evaluate the use of design-build and the 
        procedures for design-builder selection under section 16C.31, 
        and shall report to the legislature on or before January 1, 
        2004, as to the success of design-build as a method of 
        construction and the need and desirability for any changes in 
        the selection procedure. 
           Sec. 38.  Minnesota Statutes 2000, section 16B.33, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [DESIGN-BUILD.] (a) The board shall select 
        design-builders under section 16C.31 for all design-build 
        projects with an estimated cost greater than $750,000.  If a 
        project is undertaken with an estimated cost of less than 
        $750,000, the commissioner or board, in the commissioner's sole 
        discretion, may select the design-builder following the 
        requirements in section 16C.31.  If the commissioner elects to 
        make the selection, the commissioner shall perform the duties 
        prescribed for the board in section 16C.31.  This paragraph does 
        not apply to projects under the control of the board of regents 
        of the university of Minnesota or the board of trustees of the 
        Minnesota state colleges and universities. 
           (b) Upon written request by the board of regents of the 
        university of Minnesota or the board of trustees of the 
        Minnesota state colleges and universities, the board shall 
        evaluate and recommend at least three design-builders following 
        the requirements in section 16C.31 for any design-build project 
        under the control of the board of regents or the board of 
        trustees. 
           (c) The commissioner, the board of regents of the 
        university of Minnesota, or the board of trustees of the 
        Minnesota state colleges and universities shall forward to the 
        board a written report describing each instance in which the 
        performance of a design-builder has been less than satisfactory 
        for projects under their supervision. 
           (d) This subdivision expires January 1, 2004. 
           Sec. 39.  Minnesota Statutes 2000, section 16B.335, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PREDESIGN REQUIREMENT.] The definitions in 
        paragraphs (a) and (b) apply to this section. 
           (a) "Predesign" means the stage in the development of a 
        project during which the purpose, scope, cost, and schedule of 
        the complete project are defined and instructions to design 
        professionals are produced.  
           (b) "Design" means the stage in the development of a 
        project during which schematic, design development, and contract 
        documents are produced. 
           (c) A recipient to whom an appropriation is made for a 
        project subject to review under subdivision 1 or notice under 
        subdivision 2 shall prepare a predesign package and submit it to 
        the commissioner for review and recommendation before proceeding 
        with design activities.  The commissioner must complete the 
        review and recommendation within ten working days after 
        receiving it.  Failure to review and recommend within the ten 
        days is considered a positive recommendation.  The predesign 
        package must be sufficient to define the purpose, scope, cost, 
        and schedule of the project and must demonstrate that the 
        project has been analyzed according to appropriate space needs 
        standards.  All predesign, design, and construction projects 
        shall include consideration of the state of Minnesota's 
        correctional industries program, MINNCOR Industries, consistent 
        with section 16B.181, subdivision 2, paragraph (c), in predesign 
        planning and product specifications. 
           (d) This subdivision does not apply to capital projects for 
        park buildings owned by a local government unit in the 
        metropolitan area defined in section 473.121, subdivision 2. 
           Sec. 40.  [16C.30] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] For purposes of section 16C.31, 
        the terms in this section have the meanings given them, unless 
        the context clearly indicates otherwise. 
           Subd. 2.  [BOARD.] "Board" means the designer selection 
        board, as described in section 16B.33. 
           Subd. 3.  [CLARIFICATIONS.] "Clarifications" means a 
        written or oral exchange of information that takes place after 
        the receipt of proposals to ensure conformance with the request 
        for proposals and to address minor, clerical revisions in a 
        proposal. 
           Subd. 4.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of administration. 
           Subd. 5.  [DESIGNER.] "Designer" means an architect, 
        landscape architect, or engineer licensed or certified under 
        sections 326.02 to 326.15 or a partnership, association, or 
        corporation composed primarily of registered architects, 
        landscape architects, or engineers or of all three. 
           Subd. 6.  [OWNER'S REPRESENTATIVE.] "Owner's 
        representative" means a qualified professional who may oversee 
        scheduling, cost control, constructability, project management, 
        quality control, life-cycle costing, and building technology. 
           Subd. 7.  [PERSON.] "Person" means an individual, 
        partnership, corporation, association, or any other legal entity.
           Subd. 8.  [PHASE-ONE SUBMITTAL.] "Phase-one submittal" 
        means statements of qualifications from design-builders under 
        section 16C.31, subdivision 5. 
           Subd. 9.  [PHASE-TWO PROPOSAL.] "Phase-two proposal" means 
        an offer by a design-builder to enter into a design-build 
        contract for a project under section 16C.31, subdivision 6, in 
        response to a request for proposals. 
           Subd. 10.  [PROJECT.] "Project" means an undertaking to 
        design and construct, erect, or remodel a building by or for the 
        state or an agency under the supervision and control of the 
        commissioner under section 16B.30 or the board of regents of the 
        university of Minnesota or the board of trustees of the 
        Minnesota state colleges and universities. 
           Subd. 11.  [EXPIRATION.] This section expires January 1, 
        2004. 
           Sec. 41.  [16C.31] [DESIGN-BUILD CONTRACTS.] 
           Subdivision 1.  [GENERAL AUTHORITY.] (a) Notwithstanding 
        section 16C.03, subdivision 3, the commissioner may solicit and 
        award a design-build contract between the commissioner and a 
        design-builder utilizing the competitive acquisition process 
        described in subdivisions 5 through 9 if the commissioner meets 
        the conditions in paragraph (b).  A design-build contract may 
        provide the architectural, engineering, and related design 
        services as well as the labor, materials, supplies, equipment, 
        and construction services for a project.  A design-build 
        contract may include telecommunications cabling but must not 
        include acquisition of personal property related to the 
        operations of the occupants.  The commissioner may make changes 
        to the project without invalidating the design-build contract. 
           (b) The commissioner shall, for each project for which the 
        commissioner intends to use the design-build method, make a 
        written determination that it is in the best interest of the 
        state to use the design-build method to complete the project.  
        In making this determination, the commissioner shall use the 
        following criteria as the minimum basis for the determination: 
           (1) the extent to which the project requirements can be 
        adequately defined in a request for proposal before completing 
        the design process; 
           (2) the suitability of the delivery method with respect to 
        scope, schedule, cost, and quality factors; 
           (3) the suitability of the delivery method to minimize 
        life-cycle costs to the extent available within the project 
        budget; 
           (4) the suitability of the delivery method to efficiently 
        achieve functionality requirements; 
           (5) the impact of the project schedule on the agency's 
        delivery of services and project cost; 
           (6) the resources of the department of administration to 
        manage the project through employment of experienced personnel 
        or hiring of consultants; 
           (7) the resources of the department of administration to 
        oversee the project with persons who are familiar and 
        experienced with the design-build method of project delivery or 
        similar experience; and 
           (8) other criteria that the commissioner deems relevant and 
        that are included in the written determination. 
           (c) The authority and duties prescribed for the board, the 
        commissioner, and department of administration under this 
        section are granted to and must be performed by the board of 
        regents of the university of Minnesota and the board of trustees 
        of the Minnesota state colleges and universities on projects 
        under their control. 
           Subd. 2.  [LICENSING REQUIREMENTS.] (a) Each design-builder 
        shall be, employ, or have as a partner, member, coventurer, or 
        subcontractor, persons duly licensed, certified, or registered 
        to provide the services required to complete the project and do 
        business in this state. 
           (b) A design-builder may contract with the commissioner to 
        provide professional or construction services that the 
        design-builder is not itself licensed, certified, registered, or 
        qualified to perform, so long as the design-builder provides the 
        services through subcontracts with duly licensed, certified, or 
        registered, or otherwise qualified persons in accordance with 
        this section. 
           (c) Nothing in this section authorizing design-build 
        contracts is intended to limit or eliminate the responsibility 
        or liability owed by a professional on a design-build project to 
        the state or other third parties under existing law.  The design 
        service portion of a design-build contract is considered a 
        service and not a product. 
           Subd. 3.  [UNIVERSITY OF MINNESOTA AND MINNESOTA STATE 
        COLLEGES AND UNIVERSITIES SELECTION PROCESS.] (a) The board of 
        regents of the university of Minnesota and the board of trustees 
        of the Minnesota state colleges and universities shall select 
        design-builders for all design-build projects under their 
        supervision and control and funded by the state following the 
        procedures and performing the duties prescribed for the board 
        and commissioner in subdivisions 5 through 9.  The board of 
        regents and the board of trustees shall either use the board or 
        establish an evaluation team of at least seven persons to 
        evaluate and recommend design-builders under this section to 
        include three persons selected as provided in paragraph (b).  
        The final selection must be made by the board of regents or the 
        board of trustees. 
           (b) Upon written request from the board of regents or the 
        board of trustees, each of the following three organizations 
        shall nominate one individual whose name and qualifications must 
        be submitted to the board of trustees for consideration:  the 
        Consulting Engineers Council of Minnesota after consultation 
        with other professional engineering societies in the state; the 
        AIA Minnesota; and the Minnesota chapter of the Associated 
        General Contractors after consultation with other commercial 
        contractor associations in the state.  The board of regents or 
        the board of trustees may appoint the three named individuals to 
        the evaluation team or reject a nominated individual and request 
        another nomination.  The board of regents or the board of 
        trustees shall determine the term of the appointment.  The other 
        members of the evaluation team must be representatives of the 
        university of Minnesota or the Minnesota state colleges and 
        universities.  The interviews are public meetings and a video or 
        audio recording of the meetings must be made and is public 
        information.  The final recommendations and rankings must be in 
        writing. 
           Subd. 4.  [DEVELOPMENT OF DESIGN CRITERIA.] (a) Each 
        request for proposals for a design-build contract must contain 
        design criteria prepared by a design criteria professional who 
        holds licenses or certifications under sections 326.02 to 326.15 
        and is either an employee of the state, the university of 
        Minnesota, or a consultant hired by the commissioner.  If the 
        design criteria professional is a consultant hired by the state, 
        the licensure requirement may be met by employing individuals 
        who hold a license or licenses under sections 326.02 to 326.15.  
        The commissioner may elect to designate the board to select the 
        consultant in compliance with section 16B.33.  
           (b) Design criteria set forth in the request for proposals 
        must specify all information needed to adequately describe the 
        project, including performance-based criteria such as 
        sustainability and life-cycle costing requirements; interior 
        space requirements, including adjacency diagrams; material 
        quality standards; architectural image and building form 
        standards; building air quality requirements; commissioning 
        requirements; building burn-in requirements; cost estimates; 
        design and construction schedules; site development 
        requirements; utility requirements; storm water retention and 
        disposal requirements; and parking requirements.  If necessary 
        to adequately describe the project, the design criteria must 
        include a boundary and topographic survey of the site, with the 
        legal description and geotechnical and environmental information 
        concerning the site.  
           (c) There must be an owner's representative for each 
        design-build project.  The owner's representative must be either 
        an employee of the state, university of Minnesota, or a 
        consultant hired by the commissioner.  Subject to the minimum 
        requirements of paragraphs (a) and (b), the commissioner, in 
        consultation with the agency, the owner's representative, and 
        the design criteria professional, shall determine the scope and 
        level of detail required for the design criteria to be included 
        in the request for proposals. 
           Subd. 5.  [SOLICITATION OF PROPOSALS.] (a) The commissioner 
        shall prepare a request for proposals, which must contain, at a 
        minimum, the following elements: 
           (1) the identity of the agency that will utilize the 
        completed project; 
           (2) the procedures for submitting proposals, the criteria 
        for evaluation of proposals and their relative weight for each 
        phase, how those criteria will be scored, and the procedures for 
        making awards; 
           (3) the terms and conditions for the design-build contract; 
           (4) the design criteria; 
           (5) the qualifications the design builder will be required 
        to have; 
           (6) a request for a critical path method schedule for 
        commencement and completion of the project; 
           (7) budget limits for the project; 
           (8) affirmative action, disadvantaged businesses, small 
        business, or set-aside goals or requirements for the 
        design-build contract; 
           (9) requirements for insurance, performance and payment 
        bonds, bid bonds, and cash deposits; 
           (10) a description of the drawings, specifications, or 
        other submittals to be submitted with the phase-two proposal, 
        with guidance as to the form and level of completeness of the 
        drawings, specifications, or submittals that will be acceptable; 
           (11) the professional and technical services contract to be 
        entered into with the design-builders selected to submit 
        phase-two proposals, including scope of work, use of ideas or 
        information, and compensation; and 
           (12) identification of any other material information 
        available from the commissioner or board, including, without 
        limitation, surveys, soils reports, drawings or models of 
        existing structures, environmental studies, photographs, or 
        references to public records. 
           (b) The solicitation of request for proposals does not 
        obligate the commissioner to enter into a design-build 
        contract.  In accordance with the stated criteria for evaluating 
        proposals, the commissioner may accept or reject any or all 
        proposals received as a result of the request.  The notification 
        of rejection of all proposals must include an explanation for 
        all proposals being rejected.  The solicitation for proposals 
        may be canceled at any time in the commissioner's sole 
        discretion if it is considered to be in the state's best 
        interest.  If the commissioner rejects all proposals or cancels 
        the solicitation for proposals, the commissioner may resolicit a 
        request for proposals using the same or different requirements 
        or request the board to select a designer under section 16B.33 
        and proceed with the design-bid-build delivery method. 
           Subd. 6.  [QUALIFICATION; PHASE-ONE SUBMITTAL.] (a) In 
        phase one, the board and commissioner shall evaluate the 
        design-build qualifications of the design-builders who responded 
        to the request for proposals with phase-one submittals based on 
        each design-builder's experience, technical competence, and 
        capability to perform; the past performance of the 
        design-builder and its employees, quality control organization 
        and system, sustainability, and life-cycle costing methodology; 
        and other appropriate facts submitted by each design-builder in 
        response to the request for proposals all in accordance with the 
        weighted criteria that are stated for phase-one evaluations in 
        the request for proposals.  The phase-one or phase-two 
        evaluation of the "past performance" or "experience" of a 
        proposer must not include the exercise or assertion of a 
        person's legal rights.  The board or commissioner may require 
        clarifications from design-builders. 
           (b) If the project is within the capitol area, the capitol 
        area architecture and planning board, as defined in section 
        15.50, shall participate in the evaluation of phase-one 
        submittals. 
           (c) The board shall select to a short list the most 
        qualified design-builders that have responded with phase-one 
        submittals based on the weighted criteria for phase-one 
        evaluations stated in the request for proposals.  For projects 
        involving only renovation, in the discretion of the 
        commissioner, the design-builder may be selected only on the 
        phase-one submissions, or after a phase-two submission.  For all 
        other projects, the board shall prepare a list of at least three 
        potential design-builders to submit phase-two proposals.  The 
        board shall not proceed to obtain phase-two proposals or make a 
        selection, as applicable, unless it receives phase-one 
        submittals from at least three qualified design-builders.  If 
        the board receives fewer than three phase-one submittals from 
        qualified design-builders, the commissioner may cancel the 
        solicitation for proposals, revise the request for proposals, 
        and solicit new proposals or request the board to select a 
        designer under section 16B.33 and proceed with the 
        design-bid-build delivery method. 
           (d) The commissioner shall enter into the professional and 
        technical services contract included in the request for 
        proposals with each of the design-builders qualified by the 
        board to submit phase-two proposals. 
           Subd. 7.  [PHASE-TWO PROPOSALS.] (a) The professional and 
        technical services contract with the design-builders selected to 
        submit phase-two proposals provided in the request for proposals 
        must require at least the following: 
           (1) preliminary plans and specifications, renderings, and 
        models as may be required in the request for proposals in 
        sufficient detail, to describe the character, quality, and scope 
        of the project; 
           (2) a design and construction schedule; 
           (3) the all-inclusive fixed price at which the 
        design-builder will complete the project if the phase-two 
        proposal is accepted, including a total development cost budget 
        in detail by building component with all soft costs, allowances, 
        and design fees; and 
           (4) other materials the board or commissioner determines 
        are necessary to fix the design, schedule, and cost of the 
        project. 
           (b) Phase-two proposals must be sealed and may not be 
        opened until expiration of the time established for making 
        proposals as set forth in the request for proposals. 
           (c) Phase-two proposals must identify each person with whom 
        the design-builder proposes to enter into subcontracts for 
        primary design and construction obligations under the 
        design-build contract.  Persons so identified may not be 
        replaced without the approval of the commissioner, or the award 
        may be revoked. 
           (d) The design-builder must submit a written statement that 
        the phase-two proposal meets all requirements of the request for 
        proposals. 
           (e) The commissioner may require each design-builder to 
        submit with its phase-one or phase-two proposal, as applicable, 
        a cash deposit or bid bond in the amount of five percent of the 
        budget for the design-build contract.  If the phase-one or 
        phase-two proposal, as applicable, is accepted but the 
        design-builder fails to execute the design-build contract, the 
        deposit or bond is forfeited to the extent allowable under law, 
        including the cost to the state of delays, resolicitation, and 
        other results of the failure of the selected design-builder to 
        enter into the design-build contract. 
           Subd. 8.  [STIPULATED FEE.] The commissioner may award a 
        stipulated fee not less than two-tenths of one percent of the 
        department's estimated cost of design and construction to each 
        short-listed, responsible proposer who provides a responsive but 
        unsuccessful proposal.  If the commissioner does not award a 
        contract, all short-listed proposers may receive the stipulated 
        fee.  If the commissioner cancels the contract before reviewing 
        the technical proposals, the commissioner may award each 
        design-builder on the short list a stipulated fee of not less 
        than two-tenths of one percent of the commissioner's estimated 
        cost of design and construction.  The commissioner shall pay the 
        stipulated fee, if any, to each proposer within 90 days after 
        the award of the contract or the decision not to award a 
        contract.  In consideration for paying the stipulated fee, the 
        commissioner may use any ideas or information contained in the 
        proposals in connection with any contract awarded for the 
        project or in connection with a subsequent procurement, without 
        any obligation to pay any additional compensation to the 
        unsuccessful proposers.  Notwithstanding the other provisions of 
        this subdivision, an unsuccessful short-list proposer may elect 
        to waive the stipulated fee.  If an unsuccessful short-list 
        proposer elects to waive the stipulated fee, the commissioner 
        may not use ideas and information contained in that proposer's 
        proposal.  Upon the request of the commissioner, a proposer who 
        waived a stipulated fee may withdraw the waiver, in which case 
        the commissioner shall pay the stipulated fee, if any, to the 
        proposer and thereafter may use ideas and information in the 
        proposer's proposal. 
           Subd. 9.  [DESIGN-BUILDER SELECTION.] (a) After obtaining 
        and evaluating proposals from each design-builder according to 
        the criteria and procedures in the request for proposals, the 
        board shall rank the phase-one or phase-two proposals, as 
        applicable, and select the proposal that is rated the highest 
        based on the weighted evaluation criteria in the request for 
        proposal.  The board or commissioner may require clarifications 
        from design-builders during the evaluation process.  Selection 
        according to this method may result in an award not being made 
        to the lowest cost proposal. 
           (b) If the project is within the capitol area, the capitol 
        area architectural and planning board shall participate in the 
        evaluation of phase-two proposals. 
           Subd. 10.  [AWARD OF DESIGN-BUILD CONTRACT.] If the 
        commissioner decides not to reject all proposals, the 
        commissioner shall award and enter into the design-build 
        contract with the design-builder that submitted the phase-one or 
        phase-two proposal, as applicable, rated highest based on the 
        weighted evaluation criteria as evaluated under the request for 
        qualifications or request for proposals as applicable. 
           Subd. 11.  [EXPIRATION.] This section expires January 1, 
        2004. 
           Sec. 42.  Minnesota Statutes 2000, 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 $500,000, whichever is less, of the 
        costs of acquisition and betterment of land acquired under this 
        subdivision.  The commissioner shall make payment to a unit of 
        government upon receiving documentation of reimbursable 
        expenditures. 
           Sec. 43.  Minnesota Statutes 2000, section 85.019, 
        subdivision 4c, is amended to read: 
           Subd. 4c.  [LOCAL TRAIL CONNECTIONS.] The commissioner 
        shall administer a program to provide grants to units of 
        government for up to 50 percent of the costs of acquisition and 
        betterment of public land and improvements needed for trails 
        that connect communities, trails, and parks and thereby increase 
        the effective length of trail experiences.  Recipients must 
        provide a nonstate cash match of at least one-half of total 
        eligible project costs.  If land used for the trails is not in 
        full public ownership, then the recipients must prove it is 
        dedicated to the purposes of the grants for at least 20 
        years.  The commissioner shall make payment to a unit of 
        government upon receiving documentation of reimbursable 
        expenditures.  A unit of government may enter into a lease or 
        management agreement for the trail, subject to section 16A.695. 
           Sec. 44.  Minnesota Statutes 2000, section 103F.205, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] The definitions in this 
        section apply to sections 103F.201 to 103F.221 103F.225. 
           Sec. 45.  [103F.225] [SHORELAND PROTECTION PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] The board of water and 
        soil resources shall establish a program to acquire conservation 
        easements in environmentally sensitive lake and river shoreland 
        areas from private landowners.  The board may award grants to 
        local soil and water conservation districts and participating 
        local units of government to accomplish the purposes of the 
        program.  The board shall coordinate the acquisition of lake and 
        river shoreland conservation easements with shoreland protection 
        and enhancement activities of the commissioner of natural 
        resources, the pollution control agency, and other public and 
        private entities. 
           Subd. 2.  [LOCAL ACQUISITION CRITERIA.] A participating 
        soil and water conservation district or local unit of government 
        must establish a working group of interested individuals.  The 
        working groups, along with the county board and the soil and 
        water conservation district, must develop criteria for 
        acquisition of lake and river shoreland conservation easements 
        and the preservation and enhancement of degraded or eroded 
        shoreland. 
           Subd. 3.  [USE OF GRANTS.] The board, a participating soil 
        and water conservation district, or local unit of government may 
        use a grant for the acquisition of shoreland conservation 
        easements.  The grant may be up to 100 percent of the cost of 
        acquisition of the easement.  A conservation easement, as 
        defined in section 84C.01, must be permanent and is subject to 
        applicable provisions relating to easement acquisition in 
        section 103F.515, subdivisions 3 to 6, 8 and 9, except the 
        easement may be held by the board, a local unit of government, 
        or a soil and water conservation district.  Section 273.117 
        applies to conservation easements acquired under this section. 
           Subd. 4.  [CONSERVATION PLAN; GRANT PRIORITY.] (a) An 
        entity applying for a grant to acquire a shoreland conservation 
        easement under this section, must prepare a conservation plan 
        for the area subject to the easement to provide for the 
        preservation and enhancement of the natural shoreline.  The 
        conservation plan shall also include information on identified 
        and committed funding sources to implement the plan. 
           (b) The board shall give priority for grants based on: 
           (1) the environmental sensitivity of the shoreland; 
           (2) the need for preservation and enhancement of the 
        shoreland due to existing degradation and erosion; and 
           (3) the extent that funding, including in-kind 
        contributions, has been committed to implement the conservation 
        plan. 
           Subd. 5.  [EXPIRATION.] This section expires June 30, 2004. 
           Sec. 46.  [116J.431] [GREATER MINNESOTA BUSINESS 
        DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.] 
           Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] The 
        commissioner shall make grants to cities to provide up to 50 
        percent of the capital costs of public infrastructure necessary 
        for an eligible economic development project.  The city 
        receiving a grant must provide for the remainder of the costs of 
        the project, either in cash or in kind.  In-kind contributions 
        may include the value of site preparation other than the public 
        infrastructure needed for the project. 
           For purposes of this section, "city" means a statutory or 
        home rule charter city located outside the metropolitan area, as 
        defined in section 473.121, subdivision 2.  
           "Public infrastructure" means publicly owned physical 
        infrastructure necessary to support economic development 
        projects, including, but not limited to, sewers, water supply 
        systems, utility extensions, streets, wastewater treatment 
        systems, stormwater management systems, and facilities for 
        pretreatment of wastewater to remove phosphorus. 
           The purpose of the grants is to keep or enhance jobs in the 
        area, increase the tax base, or to expand or create new economic 
        development. 
           Subd. 2.  [ELIGIBLE PROJECTS.] An economic development 
        project for which a city may be eligible to receive a grant 
        under this section includes: 
           (1) manufacturing; 
           (2) technology; 
           (3) warehousing and distribution; 
           (4) research and development; 
           (5) agricultural processing, defined as transforming, 
        packaging, sorting, or grading livestock or livestock products 
        into goods that are used for intermediate or final consumption, 
        including goods for nonfood use; or 
           (6) industrial park development that would be used by any 
        other business listed in this subdivision. 
           Subd. 3.  [INELIGIBLE PROJECTS.] The following projects are 
        not eligible for a grant under this section: 
           (1) retail development; or 
           (2) office space development, except as incidental to an 
        eligible purpose. 
           Subd. 4.  [APPLICATION.] The commissioner must develop 
        forms and procedures for soliciting and reviewing applications 
        for grants under this section.  At a minimum, a city must 
        include in its application a resolution of the city council 
        certifying that the required local match is available. The 
        commissioner must evaluate complete applications for eligible 
        projects using the following criteria:  
           (1) the project is an eligible project as defined under 
        subdivision 2; 
           (2) the project will result in substantial public and 
        private capital investment and provide substantial economic 
        benefit to the city in which the project would be located; 
           (3) the project is not relocating substantially the same 
        operation from another location in the state, unless the 
        commissioner determines the project cannot be reasonably 
        accommodated within the city in which the business is currently 
        located, or the business would otherwise relocate to another 
        state; and 
           (4) the project will create or maintain full-time jobs.  
           The determination of whether to make a grant for a site is 
        within the discretion of the commissioner, subject to this 
        section.  The commissioner's decisions and application of the 
        priorities are not subject to judicial review, except for abuse 
        of discretion. 
           Subd. 5.  [SET ASIDES.] (a) During the first two years of 
        the program, $2,000,000, must be used only for grants to cities 
        with a population of less than 5,000. 
           (b) Twenty percent of the amount available must be used 
        only for grants for industrial park developments. 
           Subd. 6.  [MAXIMUM GRANT AMOUNT.] A city may receive no 
        more than $1,000,000 in two years for one or more projects.  
           Subd. 7.  [CANCELLATION OF GRANT; RETURN OF GRANT 
        MONEY.] If after five years, the commissioner determines that a 
        project has not proceeded in a timely manner and is unlikely to 
        be completed, the commissioner must cancel the grant and require 
        the grantee to return all grant money awarded for that project.  
        For industrial park development projects, if after five years 
        the industrial park is not developed and available for business 
        use, the commissioner must cancel the grant and require the 
        grantee to return all grant money for that project.  If the 
        industrial park is developed and available for use within five 
        years, but no businesses have located in the park, the grantee 
        is not required to return any grant money.  
           Subd. 8.  [APPROPRIATION.] Grant money returned to the 
        commissioner is appropriated to the commissioner to make 
        additional grants under this section. 
           Sec. 47.  [116J.571] [CREATION OF ACCOUNTS.] 
           Two greater Minnesota redevelopment accounts are created, 
        one in the general fund and one in the bond proceeds fund.  
        Money in the accounts may be used to make grants as provided in 
        section 116J.575.  Money in the bond proceeds fund may only be 
        used for eligible costs for publicly owned property.  Money in 
        the general fund may be used to pay for the commissioner's costs 
        in reviewing the applications. 
           Sec. 48.  [116J.572] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE OF APPLICATION.] For purposes of 
        sections 116J.571 to 116J.575, the terms in this section have 
        the meanings given. 
           Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
        includes a statutory or home rule charter city, county, housing 
        and redevelopment authority, economic development authority, or 
        port authority located outside the seven-county metropolitan 
        area, as defined in section 473.121, subdivision 2. 
           Subd. 3.  [ELIGIBLE COSTS OR COSTS.] "Eligible costs" or 
        "costs" means the costs of land acquisition, stabilizing 
        unstable soils, demolition, infrastructure improvements, ponding 
        or other environmental infrastructure; building construction, 
        design and engineering; and adaptive reuse of buildings.  
        Eligible costs do not include project administration and legal 
        fees. 
           Subd. 4.  [REDEVELOPMENT.] "Redevelopment" means recycling 
        obsolete, abandoned, or underutilized properties for new 
        industrial, commercial, or residential uses. 
           Sec. 49.  [116J.573] [CRITERIA FOR ACCOUNTS AND PROJECTS.] 
           Subdivision 1.  [ACCOUNTS.] Criteria for use of the 
        accounts created in section 116J.571 must be consistent with and 
        promote the purposes of sections 116J.571 to 116J.575.  They 
        include, but are not limited to: 
           (1) creating and preserving living wage jobs in greater 
        Minnesota; 
           (2) creating incentives for communities to include a full 
        range of housing opportunities; 
           (3) creating incentives for all communities to implement 
        compact, efficient, and mixed-use development; and 
           (4) creating incentives to assist communities in 
        maintaining a unique sense of place by preserving local, 
        cultural assets. 
           Subd. 2.  [PROJECTS.] To be eligible for funding by the 
        greater Minnesota redevelopment account, a project must: 
           (1) interrelate redevelopment with other public investments 
        in transportation, housing, schools, energy, utilities 
        information infrastructure, and other public services; 
           (2) interrelate affordable housing and employment growth 
        areas; 
           (3) intensify land use that leads to more compact 
        redevelopment; 
           (4) involve redevelopment that mixes incomes of residents 
        in housing, including introducing or reintroducing higher value 
        housing in lower income areas to achieve a mix of housing 
        opportunities; 
           (5) involve participation from citizens and the business 
        community in the planning and development of the proposed 
        redevelopment plan; 
           (6) encourage public infrastructure investments which 
        attract private sector redevelopment investment in commercial, 
        industrial, and residential properties adjacent to public 
        improvements, and provide project area residents with expanded 
        opportunities for private sector employment; or 
           (7) be sustainable at the local level and reduce the 
        probability of future requests for state development, 
        maintenance, or replacement assistance. 
           Subd. 3.  [OTHER FACTORS.] The factors listed in 
        subdivisions 1 and 2 are not ranked in 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 
        including, but not limited to, blight reduction, community 
        stabilization, and property tax base maintenance or improvement. 
           Subd. 4.  [PARTNERSHIPS.] The commissioner shall give 
        priority to proposals using innovative financial partnerships 
        between government, private for-profit, and nonprofit sectors as 
        well as to proposals that meet current tax increment financing 
        requirements for a redevelopment district and contribute tax 
        increment financing towards the project. 
           Subd. 5.  [ANNUAL REPORT.] The commissioner shall prepare 
        and submit to the legislature an annual report on the greater 
        Minnesota redevelopment account.  The report must include 
        information on the amount of money in the account, the amount 
        distributed, to whom the grants were distributed and for what 
        purposes, and an evaluation of the effectiveness of the projects 
        funded in meeting the policies and goals of the program. 
           Sec. 50.  [116J.574] [GRANT APPLICATIONS.] 
           Subdivision 1.  [APPLICATION REQUIRED.] To obtain a grant, 
        a development authority shall apply to the commissioner. 
           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 detailed budget, including necessary supporting 
        evidence, of the total costs for the site including the total 
        eligible redevelopment costs; 
           (3) a complete redevelopment plan, including any specific 
        commitments from third parties to construct improvements on the 
        site; 
           (4) a complete financing plan, including the manner in 
        which the development authority uses innovative financial 
        partnerships between government, private for-profit, and 
        nonprofit sectors; and 
           (5) any additional information or material that the 
        commissioner prescribes. 
           Sec. 51.  [116J.575] [GRANTS.] 
           Subdivision 1.  [COMMISSIONER DISCRETION.] The commissioner 
        may make a grant for up to 50 percent of the eligible costs of a 
        project.  The determination of whether to make a grant for a 
        site is within the discretion of the commissioner, subject to 
        this section and sections 116J.571 to 116J.574 and available 
        unencumbered money in the greater Minnesota 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. 
           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. 52.  Minnesota Statutes 2000, section 134.45, 
        subdivision 5, is amended to read: 
           Subd. 5.  [QUALIFICATION.] A public library jurisdiction 
        may apply for a grant in an amount up to $150,000 or 50 percent 
        of the approved costs of removing architectural barriers from a 
        building or site, whichever is less.  Grants may be made only 
        for projects in existing buildings used as a library, or to 
        prepare another existing building for use as a 
        library.  Renovation of an existing building may include an 
        addition to the building if the additional space is necessary to 
        provide accessibility or if relocating public spaces to the 
        ground level provides improved overall accessibility.  Grants 
        must not be used to pay part of the cost of meeting 
        accessibility requirements in a new building. 
           Sec. 53.  Minnesota Statutes 2000, section 135A.046, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STANDARDS.] Capital budget expenditures for 
        Higher Education Asset Preservation and Replacement (HEAPR) 
        projects must be for one or more of the following:  code 
        compliance including health and safety, Americans with 
        Disabilities Act requirements, hazardous material abatement, 
        access improvement, or air quality improvement; or building or 
        infrastructure repairs necessary to preserve the interior and 
        exterior of existing buildings; or renewal to support the 
        existing programmatic mission of the campuses.  Up to ten 
        percent of an appropriation awarded under this section may be 
        used for design costs for projects eligible to be funded from 
        this account in anticipation of future funding from the account. 
           Sec. 54.  Minnesota Statutes 2000, section 136F.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
        UNIVERSITIES.] The board may purchase property adjacent to or in 
        the vicinity of the campuses as necessary for the development of 
        a state college or university.  Before taking action, the board 
        shall consult with the chairs of the senate finance committee 
        and the house ways and means committee about the proposed 
        action.  The board shall explain the need to acquire property, 
        specify the property to be acquired, and indicate the source and 
        amount of money needed for the acquisition.  The amount needed 
        may be spent from sums previously appropriated for purposes of 
        the state colleges and universities, including, but not limited 
        to, general fund appropriations for instructional or 
        noninstructional expenditures, general fund appropriations 
        carried forward, or state college and university activity fund 
        appropriations.  The board may pay relocation costs, at its 
        discretion, when acquiring property. 
           Sec. 55.  [174.52] [LOCAL ROAD IMPROVEMENT FUND.] 
           Subdivision 1.  [FUND CREATED.] A local road improvement 
        fund is created in the state treasury.  The fund consists of 
        money transferred to the fund through appropriation, gift, or 
        grant. 
           Subd. 2.  [TRUNK HIGHWAY CORRIDOR PROJECTS ACCOUNT.] A 
        trunk highway corridor projects account is established in the 
        local road improvement fund.  Money in the account is annually 
        appropriated to the commissioner of transportation for 
        expenditure as specified in this section.  Money in the account 
        must be used as grants or loans to statutory or home rule 
        charter cities, towns, and counties to assist in paying the 
        local share of trunk highway projects that have local costs that 
        are directly or partially related to the trunk highway 
        improvement and that are not funded or are only partially funded 
        with other state and federal funds.  The commissioner shall 
        determine the amount of the local share of costs eligible for 
        assistance from the account. 
           Subd. 3.  [ADVISORY COMMITTEE.] The commissioner shall 
        establish an advisory committee consisting of five members, 
        including: 
           (1) one county commissioner; 
           (2) one county engineer; 
           (3) one city engineer; 
           (4) one city council member or city administrator 
        representing a city with a population over 5,000; and 
           (5) one city council member or city administrator 
        representing a city with a population under 5,000.  The advisory 
        committee shall provide recommendations to the commissioner 
        regarding expenditures from the trunk highway corridor projects 
        account. 
           Subd. 4.  [LOCAL ROAD ACCOUNT FOR ROUTES OF REGIONAL 
        SIGNIFICANCE.] A local road account for routes of regional 
        significance is established in the local road improvement fund.  
        Money in the account is annually appropriated to the 
        commissioner of transportation for expenditure as specified in 
        this section.  Money in the account must be used as grants or 
        loans to statutory or home rule charter cities, towns, and 
        counties to assist in paying the costs of constructing or 
        reconstructing city streets, county highways, or town roads with 
        statewide or regional significance that has not been fully 
        funded through other state, federal, or local funding sources. 
           Subd. 5.  [GRANT PROCEDURES AND CRITERIA.] The commissioner 
        shall establish procedures for statutory or home rule charter 
        cities, towns, and counties to apply for grants or loans from 
        the fund and criteria to be used to select projects for funding. 
        The commissioner shall establish these procedures and criteria 
        in consultation with representatives appointed by the 
        association of Minnesota counties, league of Minnesota cities, 
        and Minnesota township officers association.  The criteria for 
        determining project priority and the amount of a grant or loan 
        must be based upon consideration of: 
           (1) the availability of other state, federal, and local 
        funds; 
           (2) the regional significance of the route; 
           (3) effectiveness of the proposed project in eliminating a 
        transportation system deficiency; 
           (4) the number of persons who will be positively impacted 
        by the project; 
           (5) the project's contribution to other local, regional, or 
        state economic development or redevelopment efforts; and 
           (6) ability of the local unit of government to adequately 
        provide for the safe operation and maintenance of the facility 
        upon project completion. 
           Subd. 6.  [ADMINISTRATIVE COSTS.] A sum of 0.25 percent of 
        the total amount in the fund, other than amounts deposited in 
        the fund from the proceeds from the sale of state bonds, is 
        available to be used for administrative costs incurred by the 
        department in carrying out the provisions of this section. 
           Sec. 56.  Minnesota Statutes 2000, section 240A.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP; COMPENSATION; CHAIR.] (a) The 
        Minnesota amateur sports commission consists of 12 14 voting 
        members, four of whom must be experienced in promoting amateur 
        sports.  Nine Of the voting members, nine shall be appointed by 
        the governor and two shall be appointed by the commission to 
        three-year terms.  Of the total commission membership, including 
        voting and nonvoting members, one member must reside in each of 
        the state's congressional districts.  Four legislators, two from 
        each house appointed according to its rules, shall be nonvoting 
        members.  One member from each house shall be from the minority 
        caucus.  Compensation and removal of members and the filling of 
        membership vacancies are as provided in section 15.0575.  A 
        member may be reappointed.  The governor shall appoint the chair 
        of the commission after consideration of the commission's 
        recommendation. 
           (b) The governor, speaker of the house of representatives, 
        and senate majority leader shall each appoint one additional 
        voting member to the commission to a two-year term.  The purpose 
        of adding three members to the commission is to ensure gender 
        balance in commission membership.  Compensation, removal, and 
        filling of vacancies of members appointed under this paragraph 
        are as provided in section 15.0575.  A member appointed under 
        this paragraph may be reappointed. 
           Sec. 57.  [383B.158] [DESIGN-BUILD CONTRACTS.] 
           Subdivision 1.  [DEFINITIONS.] (a) In sections 383B.158 to 
        383B.1586, the definitions in this subdivision apply. 
           (b) "Best value" describes a result intended in acquiring 
        design-build services.  Best value determination must include 
        price and must measure a responder's qualifications, experience, 
        prior performance, and responses to technical and qualitative 
        criteria. 
           (c) "County board" means the Hennepin county board of 
        commissioners. 
           (d) "Designer selection committee" means the designer 
        selection committee appointed by the county to advise the county 
        administrator and county board in preparing and conducting the 
        design-build selection process.  At least three members of the 
        committee must be individuals who are not county employees, a 
        minimum of two members must be professionally licensed under 
        chapter 326, and at least one must be or must have been a 
        commercial contractor.  No committee member shall have personal 
        financial interest in the project or with any of the 
        design-build proposals. 
           (e) "Design-build contract" means a single contract between 
        the county and a design-builder to furnish the architectural, 
        engineering, and related design services as well as the labor, 
        materials, supplies, equipment, and construction services for a 
        project. 
           (f) "Design-build firm" means a proprietorship, 
        partnership, limited liability partnership, joint venture, 
        corporation, or any type of limited liability company, 
        professional corporation, or any legal entity. 
           (g) "Design-builder" means the design-build firm that 
        proposes to design and build a project governed by the 
        procedures of this section. 
           (h) "Design professional" means a person who holds or 
        employs individuals who hold a license under chapter 326 and who 
        is required to be registered under Minnesota law. 
           (i) "Project" means an undertaking for the county to 
        design, construct, erect, or remodel a building or facility, or 
        to design, construct, or reconstruct a county road, bridge, or 
        other infrastructure relating to a county roadway. 
           (j) "Proposal" means an offer by a design-builder to enter 
        into a design-build contract for a project in response to a 
        request for proposals, including a phase-one or phase-two 
        proposal. 
           (k) "Request for proposals" or "RFP" means the document or 
        publication through which the county solicits proposals from 
        prequalified design-builders to design and construct a 
        design-build project. 
           (l) "Request for qualifications" or "RFQ" means a document 
        to prequalify and short-list potential design-builders for a 
        project. 
           Subd. 2.  [AUTHORITY.] Notwithstanding section 471.345 or 
        any other law to the contrary, the county board may solicit and 
        award a design-build contract for a project on the basis of a 
        best value selection process as provided in this section. 
           Subd. 3.  [RESTRICTION.] (a) The authority granted in 
        sections 383B.158 to 383B.1586 shall be to evaluate the 
        effectiveness of the design-build process for a county project.  
           (b) The board may not enter into a design-build contract 
        under this section unless the county has as employees at least 
        one of each of the following, each of whom must be licensed and 
        registered under state law:  an architect, a mechanical 
        engineer, and a civil engineer.  In addition, the county must 
        employ a full-time project manager with at least five years of 
        construction management experience. 
           Subd. 4.  [PROCEDURES.] (a) The county board shall, by 
        resolution, adopt implementation procedures consistent with this 
        section for the award of design-build contracts.  
           (b) The implementation procedures must, at a minimum, 
        govern: 
           (1) the establishment of a designer selection committee 
        appointed by the county to advise the county administrator and 
        the county board in preparing and conducting the design-build 
        selection process, including a recommendation for the selection 
        of a design-build proposal it considers to be of best value to 
        the public; 
           (2) preparing requests for proposals, including procedures 
        for determining the appropriate content for each request for 
        proposal; 
           (3) standards to be used to qualify or prequalify 
        design-builders; 
           (4) preparing and submitting proposals; 
           (5) establishing procedures for evaluating proposals in as 
        objective a manner as possible; 
           (6) establishing safeguards to preserve confidential 
        information and proprietary information supplied by those 
        submitting proposals including, but not limited to, an offeror's 
        price, technical solutions, innovative or unique technology, and 
        innovative or unique use of commercially available items; and 
           (7) awarding and executing design-build contracts. 
           Subd. 5.  [LICENSING REQUIREMENTS.] (a) A design-builder 
        must be licensed and registered to provide the services required 
        to complete the project and do business in this state. 
           (b) A design-builder may enter into a contract with the 
        county to provide professional or construction services that the 
        design-builder is not licensed, registered, or qualified to 
        perform, so long as the design-builder provides the services 
        through subcontracts with licensed, registered, or otherwise 
        qualified persons in accordance with this section. 
           (c) This section does not intend to limit or eliminate the 
        responsibility or liability owed by a professional on a 
        design-build project to the county or other parties under other 
        law. 
           Sec. 58.  [383B.1581] [DESIGN-BUILD PROCESS.] 
           Subdivision 1.  [TWO-PHASE PROCEDURE.] If the county board 
        determines that the design-build best value method of project 
        delivery is appropriate for a project, the county board shall 
        establish a two-phase procedure for awarding the design-build 
        contract. 
           Subd. 2.  [CONTENTS.] The county, after considering 
        recommendations from the designer selection committee, shall 
        prepare or have prepared an RFQ.  The RFQ must include the 
        following: 
           (1) the minimum qualifications of design-builders necessary 
        to meet the requirements for acceptance; 
           (2) a scope of work statement and schedule; 
           (3) documents defining the project requirements; 
           (4) the form of contract to be awarded; 
           (5) the weighted selection criteria for compiling a short 
        list and the number of firms to be included in the short list, 
        which must be at least two but not more than five; 
           (6) a description of the request for proposals (RFP) 
        requirements; 
           (7) the maximum time allowed for design and construction; 
           (8) the county board's estimated cost range of design and 
        construction; 
           (9) requirements for construction experience, design 
        experience, financial, personnel, and equipment resources 
        available from potential design-builders for the project and 
        experience in other design-build projects or similar projects, 
        provided that these requirements may not unduly restrict 
        competition; and 
           (10) a statement that "past performance" or "experience" 
        does not include the exercise or assertion of a person's legal 
        rights. 
           Subd. 3.  [EVALUATION.] (a) The county shall solicit and 
        evaluate proposals and select a design-builder in two phases. 
           (b) In phase one, the county board, after considering the 
        recommendations from the designer selection committee, shall 
        adopt a short list of at least two but no more than five of the 
        most highly qualified firms in accordance with qualifications 
        criteria described in the RFQ.  Prior to adoption of the short 
        list, the designer selection committee or the county board may 
        require clarification from the design-builders to ensure 
        conformance of proposals to the RFQ.  The county must not 
        consider cost-related or price-related evaluation factors in 
        phase one. 
           (c) In phase two, the designer selection committee and the 
        county shall use the evaluation criteria in the RFP to determine 
        the design-build proposal to be the most advantageous and the 
        best value to the public.  Prior to award of a contract, the 
        designer selection committee and, if necessary, the county board 
        may require clarification from the design-builders to ensure 
        conformance of proposals to the RFP. 
           Sec. 59.  [383B.1582] [RFP FOR DESIGN-BUILD.] 
           During phase two, the county shall issue an RFP to the 
        design-builders on the short list.  The request must include: 
           (1) the scope of work, including (i) performance and 
        technical requirements, (ii) conceptual design, (iii) minimum 
        specifications, and (iv) functional and operational elements for 
        the delivery of the completed project, which must be prepared by 
        a design professional qualified to prepare the necessary 
        documents; 
           (2) a description of the qualifications required of the 
        design-builder; 
           (3) a description of the selection criteria, including the 
        weighting of each criterion; 
           (4) copies of the contract documents that the successful 
        proposer will be expected to sign; 
           (5) the maximum time allowable for design and construction; 
           (6) the county's estimated range of cost for design and 
        construction; 
           (7) the requirement that a submitted proposal be segmented 
        into two parts, a technical proposal and a price proposal; 
           (8) the requirement that each proposal be in a separately 
        sealed, clearly identified package and include the date and time 
        of the submittal deadline; 
           (9) the requirement that the technical proposal include a 
        critical path method, bar schedule of the work to be performed, 
        or similar schematic; design plans and specifications; technical 
        reports; calculations; permit requirements; applicable 
        development fees; and other data requested in the RFP; 
           (10) the requirement that the price proposal contain all 
        design, construction, engineering, inspection, and 
        construction-related costs, and all other costs of any kind of 
        the proposed project; 
           (11) the date, time, and location of the public opening of 
        the sealed price proposals; 
           (12) a statement that "past performance" or "experience" 
        does not include the exercise or assertion of a person's legal 
        rights; and 
           (13) other information relevant to the project. 
           Sec. 60.  [383B.1583] [REPLACING TEAM MEMBERS.] 
           An individual or a design-build firm identified in a 
        response to an RFQ or RFP may not be replaced without the 
        written approval of the county board.  The county board may 
        revoke an awarded contract if an individual or a design-build 
        firm identified in a response to an RFQ or RFP is replaced 
        without the county board's written approval.  To qualify for the 
        approval, the written request must document that the proposed 
        replacement individual or design-build firm will be equal to or 
        better than that described in the response to the RFQ or RFP.  
        The county board shall use the criteria specified in the RFQ or 
        RFP to evaluate the request. 
           Sec. 61.  [383B.1584] [DESIGN-BUILD AWARD.] 
           The county board, after considering the recommendations of 
        the designer selection committee, shall award the design-build 
        contract to the proposer with the highest scored proposal based 
        on the evaluation criteria in the RFP.  The rationale for the 
        selection of the proposal must be stated at the time of the 
        contract award.  The county board may reject any or all 
        proposals, but must not do so to evade the other provisions and 
        policies of this section.  If the county board rejects all 
        proposals, it may then solicit new proposals after making 
        appropriate modifications to performance criteria, budget 
        constraints, or qualifications.  
           Sec. 62.  [383B.1585] [STIPULATED FEE.] 
           The county board, depending on the project's complexity and 
        scope and at the board's discretion for each project, may 
        determine that a stipulated fee be paid to each short-listed 
        responsible proposer who provides a responsive but unsuccessful 
        proposal.  If a stipulated fee is to be paid, it must be clearly 
        identified in the RFQ or RFP.  If the county board does not 
        award a contract, all short-listed proposers must receive the 
        stipulated fee.  If the county board cancels the contract before 
        reviewing the technical proposals, the county board shall award 
        each design-builder on the short list a stipulated minimum fee 
        as set out in the RFP.  The county board shall pay the 
        stipulated fee to each proposer within 90 days after the award 
        of the contract or the decision not to award a contract.  In 
        consideration for paying the stipulated fee, the county board 
        may use any ideas or information contained in the proposals in 
        connection with any contract awarded for the project or in 
        connection with a subsequent procurement, without any obligation 
        to pay any additional compensation to the unsuccessful 
        proposers.  Notwithstanding the other provisions of this 
        subdivision, an unsuccessful short-list proposer may elect to 
        waive the stipulated fee.  If an unsuccessful short-list 
        proposer elects to waive the stipulated fee, the county may not 
        use ideas and information contained in that proposer's 
        proposal.  Upon the request of the county, a proposer who waived 
        a stipulated fee may withdraw the waiver, in which case the 
        county board shall pay the stipulated fee to the proposer and 
        thereafter may use ideas and information in the proposer's 
        proposal. 
           Sec. 63.  [383B.1586] [EXPIRATION.] 
           Sections 383B.158 to 383B.1586 expire December 31, 2007, 
        and apply only to design-build contracts entered into on or 
        before January 1, 2008, for the Northwest busway and the Lowry 
        Avenue bridge. 
           Sec. 64.  Minnesota Statutes 2000, section 446A.07, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INTENDED USE PLAN.] (a) The pollution control 
        agency public facilities authority shall annually prepare and 
        submit to the United States Environmental Protection Agency an 
        intended use plan.  The plan must identify the intended uses of 
        the amounts available to the water pollution control revolving 
        fund, including a list of wastewater treatment and storm water 
        projects and all other eligible activities to be funded during 
        the fiscal year.  Information regarding eligible activities must 
        be submitted to the pollution control agency by the appropriate 
        state agency or department within 30 days of written 
        notification by the pollution control agency. 
           (b) To be eligible for placement on the intended use plan: 
           (1) a project must be listed on the pollution control 
        agency's project priority list; 
           (2) the applicant must submit a written request to the 
        public facilities authority, including a brief description of 
        the project, a project cost estimate and the requested loan 
        amount, and a proposed project schedule; and 
           (3) for a construction loan, the project must have a 
        facility plan approved by the pollution control agency. 
           (c) The pollution control agency shall annually provide to 
        the public facilities authority its project priority list of 
        wastewater and storm water projects to be considered for 
        funding.  The pollution control agency public facilities 
        authority may not submit the plan until it has received the 
        review and comment of the authority pollution control agency or 
        until 30 days have elapsed since the plan was submitted to 
        the authority pollution control agency, whichever occurs first.  
        In addition, the public facilities authority shall offer 
        municipalities seeking placement on the intended use plan an 
        opportunity to review and comment on the plan before it is 
        adopted.  The plan may be amended to add additional projects for 
        consideration for funding as it determines funds are available 
        and additional projects are able to proceed. 
           Sec. 65.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The authority 
        will establish a wastewater infrastructure funding program to 
        provide supplemental assistance to municipalities applying 
        for receiving funding under through the water pollution control 
        revolving loan program or the United States Department of 
        Agriculture Rural Economic and Community Development's 
        (USDA/RECD) Water and Waste Disposal Loans and Grants program 
        for the design and planning, improvements to, and construction 
        of municipal wastewater treatment systems.  The purpose of the 
        program is to assist municipalities demonstrating financial need 
        in building cost-efficient projects to address existing 
        environmental or public health problems.  To implement the 
        program, the authority shall establish a wastewater 
        infrastructure fund to provide grants and loans for the purposes 
        authorized under title VI of the Federal Water Pollution Control 
        Act.  The fund shall be credited with all investment income from 
        the fund and all repayments of loans, grants, and penalties. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 66.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PROGRAM ADMINISTRATION.] (a) The authority shall 
        provide supplemental assistance, as provided in subdivision 2, 
        5a to municipalities demonstrating financial need, as provided 
        in subdivision 4, whose projects have been certified to the 
        authority by the commissioner of the agency.  The authority 
        shall reserve supplemental assistance for projects in order of 
        their priority ranking established by the agency.: 
           (1) whose projects are listed on the agency's project 
        priority list; 
           (2) that demonstrate their projects are a cost-effective 
        solution to an existing environmental or public health problem; 
        and 
           (3) whose projects are approved by the USDA/RECD or 
        certified by the commissioner of the agency. 
           (b) For a municipality receiving grant funding from the 
        USDA/RECD, applications must be made to the USDA/RECD with 
        additional information submitted to the authority as required by 
        the authority.  Eligible project costs and affordability 
        criteria shall be determined by the USDA/RECD. 
           (c) For a municipality not receiving grant funding from the 
        USDA/RECD, application must be made to the authority on forms 
        prescribed by the authority for the water pollution control 
        revolving fund program with additional information as required 
        by the authority.  In accordance with section 116.182, the 
        agency shall: 
           (1) calculate the essential project component percentage 
        which must be multiplied by the total project cost to determine 
        the eligible project cost; and 
           (2) review and certify approved projects to the authority. 
           (d) At the time funds are appropriated under this section, 
        the authority shall reserve supplemental assistance for projects 
        in order of their rankings on the agency's project priority list 
        and in an amount based on their most recent cost estimates 
        submitted to the authority or the as-bid costs, whichever is 
        less. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 67.  Minnesota Statutes 2000, section 446A.072, is 
        amended by adding a subdivision to read: 
           Subd. 5a.  [TYPE AND AMOUNT OF ASSISTANCE.] (a) For a 
        municipality receiving grant funding from the USDA/RECD, the 
        authority shall provide assistance in the form of a grant of up 
        to one-half of the eligible grant amount determined by 
        USDA/RECD.  A municipality may not receive a grant under this 
        paragraph for more than $4,000,000 or $15,000 per existing 
        connection, whichever is less, unless specifically approved by 
        law.  In the case of a sanitary district or other 
        multijurisdictional project for which the USDA/RECD is unable to 
        fully fund up to one-half of the eligible grant amount, the 
        authority may provide up to an additional $1,000,000 for each 
        additional municipality participating up to a maximum of 
        $8,000,000 or $15,000 per existing connection, whichever is 
        less, but not to exceed the maximum grant level determined by 
        the USDA/RECD as needed to keep the project affordable. 
           (b) For a municipality not receiving grant funding from the 
        USDA/RECD, the authority shall provide assistance in the form of 
        a loan for the eligible project costs that exceed five percent 
        of the market value of properties in the project service area.  
        A municipality may not receive a loan under this paragraph for 
        more than $4,000,000 or $15,000 per existing connection, 
        whichever is less, unless specifically approved by law.  In the 
        case of a sanitary district or other multijurisdictional 
        project, the authority may provide a loan under this paragraph 
        for up to an additional $1,000,000 for each additional 
        municipality participating up to a maximum of $8,000,000 or 
        $15,000 per existing connection, whichever is less, unless 
        specifically approved by law.  A loan under this paragraph must 
        bear no interest, must be repaid as provided in subdivision 7, 
        and must only be provided in conjunction with a loan from the 
        water pollution control revolving fund under section 446A.07. 
           (c) Notwithstanding the limits in paragraphs (a) and (b), 
        for a municipality receiving supplemental assistance under this 
        section after January 1, 2002, if the authority determines that 
        the municipality's construction and installation costs are 
        significantly increased due to geological conditions of 
        crystalline bedrock or karst areas and discharge limits that are 
        more stringent than secondary treatment, the authority shall 
        provide assistance in the form of half grant and half loan.  
        Assistance from the authority may not be more than $25,000 per 
        existing connection.  Any additional grant amount received for 
        the same project must be used to reduce the amount of the 
        municipality's loan from the water pollution control revolving 
        fund that exceeds five percent of the market value of properties 
        in the project service area. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 68.  Minnesota Statutes 2000, section 446A.072, is 
        amended by adding a subdivision to read: 
           Subd. 5b.  [SPECIAL ASSESSMENT DEFERRAL.] A municipality 
        receiving a loan under subdivision 5a that levies special 
        assessments to repay the loan under subdivision 5a or section 
        446A.07 may defer payment of such assessments under the 
        provisions of sections 435.193 to 435.195. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 69.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DISBURSEMENTS.] Disbursements made of grants or 
        loans awarded under this section by the authority to recipients 
        must be made for eligible project costs as incurred by the 
        recipients, and must be made by the authority in accordance with 
        the project financing agreement and applicable state and federal 
        laws and rules governing the payments. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 70.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 7, is amended to read: 
           Subd. 7.  [LOAN REPAYMENTS.] All loan repayments received 
        by the authority under subdivision 2 must be used to provide 
        additional assistance under this section.  A municipality 
        receiving a loan under this section shall repay the loan in 
        semiannual payment amounts determined by the authority.  The 
        payment amount must be based on the average payments on the 
        municipality's water pollution control revolving fund loan or, 
        if greater, the minimum amount required to fully repay the loan 
        by the maturity date.  Payments must begin within one year of 
        the date of the municipality's final payment on the water 
        pollution control revolving fund loan.  The maturity date of the 
        loan must be no later than 20 years from the date of the first 
        payment. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 71.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 8, is amended to read: 
           Subd. 8.  [ELIGIBILITY.] A municipality is eligible for 
        assistance under this section only after grant funding from 
        other sources has been applied for, obtained, rejected, or the 
        authority has determined that the potential funding is unlikely. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 72.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 9, is amended to read: 
           Subd. 9.  [LOAN LIMITATION.] Supplemental assistance may 
        not be used to reduce the sewer service charges of a significant 
        wastewater contributor, or a single user that has caused the 
        need for the project or whose current or projected flow and load 
        exceed one-half of the current wastewater treatment plant's 
        capacity, unless the applicant can demonstrate to the authority 
        that the significant wastewater contributor cannot pay its fair 
        share.  Funding will not be provided for projects that are not 
        qualified for assistance or that would violate the state's 
        constitution or laws regarding the use of funds appropriated for 
        the program. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 73.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 11, is amended to read: 
           Subd. 11.  [REPORT ON NEEDS.] By October 15 February 1 of 
        each odd-numbered even-numbered year, the authority, in 
        conjunction with the pollution control agency, shall prepare a 
        report to the finance division of the senate environment and 
        natural resources committee and the house environment and 
        natural resources finance committee on wastewater funding 
        assistance needs of municipalities under this section. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 74.  Minnesota Statutes 2000, section 446A.072, 
        subdivision 12, is amended to read: 
           Subd. 12.  [SYSTEM REPLACEMENT FUND.] Each recipient of 
        assistance municipality receiving a loan under this section 
        shall establish a system replacement fund setting aside and 
        shall annually deposit a minimum of $.10 $.50 per 1,000 gallons 
        of flow for major rehabilitation, expansion, or replacement of 
        the treatment plant system at the end of its useful life.  Money 
        must remain in the account, for the life of the loan associated 
        with the supplemental assistance under this section, unless use 
        of the fund is approved in writing by the authority for major 
        rehabilitation, expansion, or replacement of the treatment 
        plant.  Failure to maintain the fund will cancel the loan 
        forgiveness provided under subdivision 2 system.  By March 1 
        each year during the life of the loan, each municipality shall 
        submit a report to the authority regarding the amount deposited 
        and the fund balance for the prior calendar year.  Failure to 
        comply with the requirements of this subdivision shall result in 
        the authority assessing a penalty fee to the municipality equal 
        to one percent of the outstanding loan balance for each year of 
        noncompliance.  Failure to make the required deposit or pay the 
        penalty fee as required constitutes a default on the loan. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 75.  Minnesota Statutes 2000, section 446A.072, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [CONSISTENCY WITH LAND USE PLANS.] A 
        municipality applying for a project in an unsewered area shall 
        include in its application to the authority a certification from 
        the county in which the project is located that: 
           (1) the project is consistent with the county comprehensive 
        land use plan, if the county has adopted one; 
           (2) the project is consistent with the county water plan, 
        if the county has adopted one; and 
           (3) the county has adopted specific land use ordinances or 
        controls so as to meet or exceed the requirements of Minnesota 
        Rules, part 7080.0305. 
           [EFFECTIVE DATE.] This section is effective for funds 
        appropriated after January 1, 2002. 
           Sec. 76.  Minnesota Statutes 2000, section 446A.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BONDING AUTHORITY.] The authority may 
        issue negotiable bonds in a principal amount that the authority 
        determines necessary to provide sufficient funds for achieving 
        its purposes, including the making of loans and purchase of 
        securities, the payment of interest on bonds of the authority, 
        the establishment of reserves to secure its bonds, the payment 
        of fees to a third party providing credit enhancement, and the 
        payment of all other expenditures of the authority incident to 
        and necessary or convenient to carry out its corporate purposes 
        and powers, but not including the making of grants.  Bonds of 
        the authority may be issued as bonds or notes or in any other 
        form authorized by law.  The principal amount of bonds issued 
        and outstanding under this section at any time may not exceed 
        $850,000,000 $1,000,000,000, excluding bonds for which refunding 
        bonds or crossover refunding bonds have been issued. 
           Sec. 77.  Laws 1987, chapter 400, section 8, subdivision 5, 
        is amended to read: 
             Subd. 5.  Great River Road Project              3,000,000
        This appropriation is for a grant to 
        the Minneapolis park and recreation 
        board for land acquisition for the 
        Great River Road project in the central 
        Mississippi regional park along the 
        central waterfront area in downtown 
        Minneapolis, provided that the city of 
        Minneapolis issues $3,000,000 in bonds 
        to be used to acquire land for the same 
        project by January 1, 1988.  The 
        Minneapolis park and recreation board 
        may enter into an agreement to operate 
        the property known as the Fuji Ya 
        restaurant property, as a restaurant or 
        entertainment facility, subject to 
        Minnesota Statutes, section 16A.695.  
        An agreement entered into by the 
        Minneapolis park and recreation board 
        to operate the property known as the 
        Fuji Ya restaurant property as a 
        restaurant or entertainment facility 
        would benefit the Great River Road 
        project, further public efforts to 
        reclaim the Mississippi Riverfront in 
        Minneapolis, and be a program that 
        furthers the governmental purpose of 
        the Great River Road project. 
           Sec. 78.  Laws 2000, chapter 492, article 1, section 3, 
        subdivision 5, is amended to read: 
        Subd. 5.  Bemidji State University                             
        (a)  American Indian History Center                   2,000,000
        To predesign, design, construct, 
        furnish, and equip a museum and center 
        for American Indian history and 
        policy.  In addition to the 
        appropriation in this subdivision, up 
        to $1,000,000 in nonstate money may be 
        added to this project. 
        (b)  Northwest Technical College                      5,000,000
        (a) To design, construct, furnish, and 
        equip a technology laboratory building. 
        (b) The remaining money from the 
        appropriation in Laws 1998, chapter 
        404, section 3, subdivision 5, may be 
        used for predesign and design of the 
        project in paragraph (a), and predesign 
        of phase II. 
        (c) The board of trustees must not 
        convey the technical college to the 
        school district. 
        (d) The board of trustees shall advise 
        the chairs of the senate higher 
        education budget division and the house 
        higher education finance committee 
        before initiating predesign of phase II.
           Sec. 79.  Laws 2000, chapter 492, article 1, section 12, 
        subdivision 7, is amended to read: 
        Subd. 7.  World War II Veterans Memorial                150,000 
        This appropriation is from the general 
        fund. 
        For design, architectural drawings, and 
        the start of construction for a World 
        War II veterans memorial on the state 
        capitol mall.  The design is subject to 
        approval by the capitol area 
        architectural and planning board.  The 
        commissioner of veterans affairs shall 
        convene an advisory group, including 
        members of veterans organizations to 
        review and make recommendations about 
        the design of the memorial.  The 
        appropriation must be matched by an 
        equal amount from nonstate sources.  
        The commissioner may accept donations 
        from nonstate sources for purposes 
        stated in this subdivision. 
           Sec. 80.  Laws 2000, chapter 492, article 1, section 15, 
        subdivision 4, is amended to read: 
        Subd. 4.  Minnesota    
        Military Museum at Camp Ripley                          125,000
        To upgrade the electrical and lighting, 
        and heating, ventilation, and air 
        conditioning systems in the main 
        building of the Minnesota military 
        museum, to design and, construct, 
        furnish, and equip, including permanent 
        display cases, an addition to the 
        museum, and to insulate a heating 
        system in building I-40.  The adjutant 
        general may enter into a lease or 
        management agreement for the museum, 
        subject to Minnesota Statutes, section 
        16A.695. 
           Sec. 81.  Laws 2000, chapter 492, article 1, section 22, 
        subdivision 3, as amended by Laws 2000, chapter 499, section 15, 
        which amendment was reenacted in Laws 2001, First Special 
        Session chapter 12, section 15, is amended to read: 
        Subd. 3.  Wastewater Infrastructure                            
        Funding Program                                      18,319,000 
        $6,309,000 $4,309,000 of this 
        appropriation is from the general fund 
        of which $319,000 is to administer the 
        wastewater infrastructure fund program. 
        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 extent practical, the 
        authority should use the grants for 
        projects on the 2000 intended use plan 
        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, 2001.  In determining 
        whether the penalty factor under 
        Minnesota Rules, part 7077.0196, should 
        be applied to a project, the pollution 
        control agency shall, beginning with 
        the 2001 Intended Use Plan and Project 
        Priority list, first assess the impact 
        of the new or expanded discharge 
        compared to the impact of the 
        preexisting conditions and to the 
        impact of alternative discharge 
        locations.  If the agency determines 
        that the new or expanded discharge is 
        to a less environmentally sensitive 
        area or that it is the preferable 
        location for the discharge compared to 
        the alternatives, the agency shall not 
        apply the penalty factor to the 
        project.  The pollution control agency 
        shall include as a factor in 
        prioritizing projects whether a project 
        is a multijurisdictional project 
        connecting areas with failing onsite 
        treatment systems with an existing or 
        regional wastewater treatment system. 
        The authority shall set aside up to 
        $400,000 for the Innovative Technology 
        Grants Program to provide 50 percent 
        reimbursement for the cost of equipment 
        and installation into an existing 
        municipal wastewater treatment system.  
        The project must be approved by the 
        pollution control agency and 
        demonstrate the application of existing 
        technology that has not been used 
        before in the treatment of municipal 
        wastewater, but has the potential to 
        improve the treatment of wastewater or 
        make the treatment process more cost 
        effective. 
        Beginning with the 2001 intended use 
        plan, the pollution control agency 
        shall include whether a community has a 
        moratorium on development as a factor 
        in prioritizing projects.  The agency 
        shall adopt rules implementing the 
        provisions of this paragraph under 
        Minnesota Statutes, section 14.389. 
           Sec. 82.  Laws 2000, chapter 492, article 1, section 22, 
        subdivision 4, is amended to read: 
        Subd. 4.  Clean Water Partnership                     2,000,000
        For deposit in the water pollution 
        control fund under Minnesota Statutes, 
        section 446A.07, for the clean water 
        partnership loan program under 
        Minnesota Statutes, section 
        103F.725.  This appropriation is from 
        the general fund. 
           Sec. 83.  Laws 2000, chapter 492, article 1, section 27, is 
        amended to read: 
           Sec. 27.  [CANCELLATIONS AND TRANSFERS.] 
           (a) The $734,000 appropriation in Laws 1994, chapter 643, 
        section 18, for the design of the labor interpretive center is 
        canceled.  The bond sale authorization in Laws 1994, chapter 
        643, section 31, subdivision 1, is reduced by $734,000. 
           (b) The $1,100,000 appropriation in Laws 1994, chapter 643, 
        section 19, subdivision 9, as amended by Laws 1995, chapter 224, 
        section 124, and Laws 1997, chapter 183, article 3, section 30, 
        for the American Indian history center at Bemidji state 
        university is canceled.  The bond sale authorization in Laws 
        1994, chapter 643, section 31, subdivision 1, is reduced by 
        $1,100,000. 
           (c) $130,000 of the appropriation in Laws 1994, chapter 
        643, section 23, for dam improvements is canceled.  The bond 
        sale authorization in Laws 1994, chapter 643, section 31, 
        subdivision 1, is reduced by $130,000. 
           (d) $383,000 of the appropriation in Laws 1996, chapter 
        463, section 13, subdivision 9, for a support services facility 
        near the corner of Mississippi Street and University Avenue is 
        canceled.  The bond sale authorization in Laws 1996, chapter 
        463, section 27, subdivision 1, is reduced by $383,000.  
           (e) The unobligated balance of the appropriation in Laws 
        1996, chapter 463, section 15, subdivision 4, for an armory 
        facility and ramp near the corner of Rice Street and University 
        Avenue, estimated to be $197,000, is canceled to the general 
        fund. 
           (f) $1,355,000 of the appropriation in Laws 1996, chapter 
        463, section 16, subdivision 5, for the Brainerd bed expansion 
        project is canceled.  The bond sale authorization in Laws 1996, 
        chapter 463, section 27, subdivision 1, is reduced by $1,355,000.
           (g) The $500,000 appropriation in Laws 1996, chapter 463, 
        section 22, subdivision 7, for the Battle Point historic site is 
        canceled.  The bond sale authorization in Laws 1996, chapter 
        463, section 27, subdivision 1, is reduced by $500,000. 
           (h) $10,000,000 of the appropriation in Laws 1997, Second 
        Special Session chapter 2, section 2, for public safety disaster 
        assistance funds is canceled.  The bond sale authorization in 
        Laws 1997, Second Special Session chapter 2, section 12, is 
        reduced by $10,000,000. 
           (i) $5,800,000 of the appropriation in Laws 1998, chapter 
        404, section 13, subdivision 5, for the Minnesota labor 
        interpretive center is canceled to the general fund.  
           (j) $1,893,000 of the appropriation in Laws 1998, chapter 
        404, section 5, subdivision 5, for the Southwest Metropolitan 
        Integration Magnet School in Edina is canceled to the general 
        fund. 
           (k) The $800,000 appropriation in Laws 1998, chapter 404, 
        section 15, subdivision 5, for a tennis facility in the city of 
        St. Paul is canceled to the general fund.  
           (l) The $1,700,000 appropriation in Laws 1998 1999, chapter 
        404 240, article 2, section 22 11, for the Battle Point cultural 
        education center is canceled.  The bond sale authorization in 
        Laws 1998 1999, chapter 404 240, article 2, section 27 16, 
        subdivision 1, is reduced by $1,700,000. 
           (m) The balance of the appropriation in Laws 1998 1999, 
        chapter 404 240, article 2, section 23 12, subdivision 11 5, 
        for the St. Cloud community events center is transferred to the 
        board of trustees of the Minnesota state colleges and 
        universities to construct a new athletic facility on the south 
        side of the existing St. Cloud State University campus.  The 
        balance of the bond sale authorization in Laws 1998 1999, 
        chapter 404 240, article 2, section 27 16, subdivision 1, 
        attributable to the events center project is to provide the 
        money for the athletic facility project. 
           (n) $1,000,000 of the appropriation in Laws 1998 1999, 
        chapter 404 240, article 2, section 23 12, subdivision 24 
        14, for the Minnesota African-American Performing Arts Center is 
        canceled.  The bond sale authorization in Laws 1998 1999, 
        chapter 404 240, article 2, section 27 16, subdivision 1, is 
        reduced by $1,000,000. 
           (o) The $4,000,000 appropriation in Laws 1999, chapter 240, 
        article 1, section 3, for the Southwest Metropolitan Integration 
        Magnet School in Edina is canceled.  The bond sale authorization 
        in Laws 1999, chapter 240, article 1, section 13, is reduced by 
        $4,000,000. 
           (p) $321,000 of the unobligated balance of the 
        appropriation in Laws 1999, chapter 250, article 1, section 12, 
        subdivision 5, to demolish the capitol square building and 
        restructure the site as a temporary parking lot is canceled to 
        the general fund. 
           [EFFECTIVE DATE.] This section is effective retroactively 
        to May 16, 2000. 
           Sec. 84.  Laws 2001, First Special Session chapter 12, 
        section 10, is amended to read: 
        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 $622,260,000 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. 85.  [DAN PATCH COMMUTER RAIL LINE; PROHIBITIONS.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section, 
        "Dan Patch commuter rail line" means the commuter rail line 
        between Northfield and Minneapolis identified in the 
        metropolitan council's transit 2020 master plan as the Dan Patch 
        line. 
           Subd. 2.  [METROPOLITAN COUNCIL; PROHIBITIONS.] The 
        metropolitan council must not take any action or spend any money 
        for study, planning, preliminary engineering, final design, or 
        construction for the Dan Patch commuter rail line.  The council 
        must remove all references, other than references for historical 
        purposes, to the Dan Patch commuter rail line from any future 
        revisions to the council's transportation development guide and 
        the council's regional transit master plan. 
           Subd. 3.  [COMMISSIONER OF TRANSPORTATION.] The 
        commissioner of transportation must not expend any money for 
        study, planning, preliminary engineering, final design, or 
        construction for the Dan Patch commuter rail line.  The 
        commissioner must remove all references, other than references 
        for historical purposes, to the Dan Patch commuter rail line 
        from any future revisions to the state transportation plan and 
        the commissioner's commuter rail system plan. 
           Subd. 4.  [REGIONAL RAIL AUTHORITIES.] No regional rail 
        authority may expend any money for study, planning, preliminary 
        engineering, final design, or construction for the Dan Patch 
        commuter rail line. 
           Sec. 86.  [DM&E; WORKING GROUP.] 
           Subdivision 1.  [MEMBERSHIP.] The commissioner of 
        transportation or the commissioner's designee shall convene a 
        multiagency working group on DM&E rail project mitigation, 
        consisting of the commissioners of public safety, the pollution 
        control agency, trade and economic development, and 
        transportation; and director of Minnesota planning; or their 
        designees.  The director of Minnesota planning or the director's 
        designee shall serve as chair of the working group. 
           Subd. 2.  [TASKS.] The working group shall: 
           (1) evaluate the economic effects of the DM&E rail 
        expansion project in southern Minnesota on each local unit of 
        government impacted by the project, including costs related to 
        noise mitigation costs, right-of-way acquisition, and 
        rail-highway grade crossing protection and upgrade; 
           (2) determine the availability of federal assistance and 
        other resources available to such local units of government for 
        mitigation costs, including the timing of the assistance and 
        resources; 
           (3) involve local units of government in issues discussed 
        by the working group; and 
           (4) determine what direct and indirect costs are likely to 
        accrue to private property owners as a result of the project 
        including, but not limited to, costs for mitigation, 
        right-of-way acquisitions, and crossing safety. 
           Subd. 3.  [REPORTS.] The working group shall present an 
        interim report to the legislature by January 15, 2003, and a 
        final report to the legislature no later than January 15, 2004. 
           Sec. 87.  [EXEMPTION FROM MORATORIUM.] 
           Notwithstanding Laws 2002, chapter 220, article 10, section 
        37, projects authorized in this act, Laws 2001, First Special 
        Session chapter 12, Laws 2000, chapter 492, and Laws 1999, 
        chapter 240, are exempt from any moratorium on professional or 
        technical contracts, as defined in Minnesota Statutes, section 
        16C.08, subdivision 1. 
           Sec. 88.  [STATE BUILDING SALE TO COUNTY.] 
           Subdivision 1.  [AUTHORIZED.] (a) Notwithstanding Minnesota 
        Statutes, section 16A.695 and chapter 94 or other law, 
        administrative rule, or commissioner's order to the contrary, 
        the state of Minnesota by and through its department of 
        administration, shall at the request of the St. Louis county 
        board of commissioners, sell and convey to St. Louis county by 
        July 31, 2002, for a consideration in the amount of $3,052,700 
        certain real property known as the government services center 
        and parking ramp legally described as:  lots 50, 52, 54, 56, 58, 
        60, 62, 64, Duluth proper first division, West Second Street.  
           (b) The conveyance must be in a form approved by the 
        attorney general. 
           (c) $450,000 of the proceeds from the sale must be 
        deposited in the department of administration's asset 
        preservation account to reimburse the department of 
        administration for costs related to the recent installation of a 
        chiller at the Duluth Government Services Center.  A portion of 
        the proceeds from the sale equal in amount to the survey, 
        appraisal, legal, advertising, and other related expenses 
        incurred by the commissioner of administration or other state 
        official rendering the property saleable shall be remitted to 
        the account from which the expenses were paid, and are 
        appropriated and immediately available for expenditure in the 
        same manner as other money in the account.  The remaining 
        balance from the proceeds of the sale must be deposited in the 
        general fund. 
           Subd. 2.  [RIGHTS, OBLIGATIONS.] The existing leases 
        between the state of Minnesota and St. Louis county of the real 
        property described in subdivision 1 are merged into the fee 
        ownership with this conveyance.  All other leases with their 
        current terms and conditions concerning the real property must 
        be assigned to St. Louis county. 
           Subd. 3.  [STATE LEASES.] (a) For a period of at least ten 
        years following sale of the real property described in 
        subdivision 1, St. Louis county must allow the state of 
        Minnesota to lease the space occupied by the state of Minnesota 
        at the time of the sale at the state's current lease rate with 
        annual adjustments for operational cost increases, which cost 
        must not include any capital improvement costs.  
           (b) The lease must be in a form approved by the attorney 
        general. 
           Sec. 89.  [REPORT TO LEGISLATURE.] 
           Hennepin county must report to the legislature after the 
        completion of the Northwest busway but no later than June 1, 
        2007, on its evaluation of the effectiveness of the design-build 
        process. 
           Sec. 90.  [CORRECTION.] 2002 H.F. No. 3270, article 11, if 
        enacted, is amended to read: 

                                   ARTICLE 11
                     GENERAL FUND CONVERSION TO BOND FUNDS
           Section 1.  [INTENT.] 
           This article intends to return to the unreserved general 
        fund $75,043,000 by changing the fund source of the projects 
        listed in this article in the amounts shown in sections 2 to 14, 
        by decreasing the appropriation from the general fund and by 
        appropriating an equal amount from the aggregate of the bond 
        proceeds fund and the transportation fund.  This action changes 
        the designation of the fund sources made under the cumulative 
        effect of Laws 1998, chapter 404; Laws 1999, chapter 250; and 
        Laws 2000, chapters 479 and 492.  This article also makes a new 
        appropriation of $77,000 from the bond proceeds fund for bond 
        sale expenses in connection with the bonds authorized in this 
        article. 
        Sec. 2.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
           The sums in the column under "APPROPRIATIONS" are 
        appropriated from the bond proceeds fund or other 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 article. 
                                    SUMMARY
        UNIVERSITY OF MINNESOTA                            $    500,000
        CHILDREN, FAMILIES, AND LEARNING                        500,000
                                                                300,000
        NATURAL RESOURCES                                     6,973,000
        WATER AND SOIL RESOURCES BOARD                          300,000
        ADMINISTRATION                                       43,350,000
                                                             45,550,000
        CAPITOL AREA ARCHITECTURAL AND
        PLANNING BOARD                                          250,000
        AMATEUR SPORTS COMMISSION                               690,000
        TRANSPORTATION                                       13,590,000
        HUMAN SERVICES                                        1,500,000
        CORRECTIONS                                             250,000
        TRADE AND ECONOMIC DEVELOPMENT                        5,590,000
                                                              3,590,000
        MINNESOTA HISTORICAL SOCIETY                          1,550,000
        BOND SALE EXPENSES                                       77,000
        TOTAL                                            $   75,120,000
        Bond Proceeds Fund                                   61,530,000
        Transportation Fund                                  13,590,000
                                                         APPROPRIATIONS
                                                         $             
        Sec. 3.  UNIVERSITY OF MINNESOTA                        500,000
        To the board of regents of the 
        University of Minnesota for 1998 Higher 
        Education Asset Preservation and 
        Replacement.  
        Sec. 4.  CHILDREN, FAMILIES, AND LEARNING               500,000
                                                                300,000
        To the commissioner of children, 
        families, and learning for 1998 Early 
        Childhood Learning Facilities.  
        Sec. 5.  NATURAL RESOURCES 
        Subdivision 1.  To the commissioner
        of natural resources for the purposes 
        specified in this section                             6,973,000
        Subd. 2.  1998 Park Building Rehabilitation             500,000
        Subd. 3.  1998 Park Betterment 
        and Rehabilitation                                      500,000
        Subd. 4.  1998 Forest Roads and Bridges                 750,000
        Subd. 5.  1998 Metro Greenways Acquisition            2,000,000
        Subd. 6.  Safe Harbors Program                        3,223,000
        Sec. 6.  BOARD OF WATER AND 
        SOIL RESOURCES                                          300,000
        To the board of water and soil 
        resources for local road replacement.  
        Sec. 7.  ADMINISTRATION 
        Subdivision 1.  To the commissioner of 
        administration for the purposes specified 
        in this section                                      45,350,000
                                                             45,550,000
        Subd. 2.  2000 Asset Preservation                       350,000
        Subd. 3.  2000 Bureau of Criminal 
        Apprehension Facility                                40,000,000
                                                             42,700,000
        Subd. 4.  2000 Property Acquisition                     450,000
        Subd. 5.  1998 Asset Preservation                     1,250,000
                                                                750,000
        Subd. 6.  1998 Real Property Acquisition              1,000,000
        Subd. 7.  1998 BCA Land Acquisition                     300,000
        Sec. 8.  CAPITOL AREA ARCHITECTURAL 
        AND PLANNING BOARD                                      250,000
        To the commissioner of administration 
        for the HHH Memorial.  
        Sec. 9.  AMATEUR SPORTS COMMISSION                      690,000
        To the amateur sports commission for 
        the Giants Ridge Facility.  
        Sec. 10.  TRANSPORTATION 
        Subdivision 1.  To the commissioner of 
        transportation for the purposes specified 
        in this section                                      13,590,000
        This appropriation is from the 
        transportation fund. 
        Subd. 2.  2000 County and Local Bridges              13,000,000
        Subd. 3.  1998 CSAH Highway 90                          590,000
        Sec. 11.  HUMAN SERVICES                              1,500,000
        To the commissioner of administration 
        for 1998 Asset Preservation.  
        Sec. 12.  CORRECTIONS                                   250,000
        To the commissioner of administration 
        for 1998 Asset Preservation.  
        Sec. 13.  TRADE AND ECONOMIC DEVELOPMENT              5,590,000
                                                              3,590,000
        To the commissioner of trade and 
        economic development for 2000 
        Wastewater Infrastructure.  
        Sec. 14.  MINNESOTA HISTORICAL SOCIETY
        Subdivision 1.  To the Minnesota 
        historical society for the purposes
        specified in this section                             1,550,000
        Subd. 2.  1998 Historic Site 
        Preservation and Repair                                 850,000
        Subd. 3.  Split Rock Lighthouse                         700,000
        Sec. 15.  BOND SALE EXPENSES                             77,000
        To the commissioner of finance for 
        bond sale expenses under Minnesota 
        Statutes, section 16A.641, subdivision 8.
           Sec. 16.  [IDENTICAL PROJECTS.] 
           The purpose and use of appropriations in this article are 
        for the same purpose and use and for identical projects as 
        authorized in Laws 1998, chapter 404; Laws 1999, chapter 250; 
        and Laws 2000, chapters 479 and 492.  Except for the fund source 
        of unspent parts of the appropriations listed in this article, 
        this article does not change or limit the purpose and use of the 
        appropriations and related requirements in Laws 1998, chapter 
        404; Laws 1999, chapter 250; and Laws 2000, chapters 479 and 492.
           Sec. 17.  [BOND SALE AUTHORIZATIONS.] 
           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 $61,530,000 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 transportation fund, the 
        commissioner of finance shall sell and issue bonds of the state 
        in an amount up to $13,590,000 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. 18.  [CANCELLATION TO GENERAL FUND.] 
           Money appropriated from the general fund pursuant to 1998, 
        1999, and 2000 acts and not yet spent for the projects listed in 
        this article is canceled to the general fund in the amount shown 
        for each project. 
           Sec. 19.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.
           Sec. 91.  [REPEALER.] 
           Minnesota Statutes 2000, sections 116J.561, 116J.562, 
        116J.563, 116J.564, 116J.565, 116J.566, 116J.567, and 446A.072, 
        subdivisions 2, 4, 5, 10, and 13, are repealed. 
           Sec. 92.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
           New Minnesota Statutes, sections 383B.158 to 383B.1586 are 
        effective the day after the governing body of Hennepin county 
        and its chief clerical officer timely complete their compliance 
        with Minnesota Statutes, section 645.021, subdivisions 2 and 3.  
           Sec. 93.  [EFFECTIVE DATE.] 
           Except as otherwise provided in this act, this act is 
        effective the day following final enactment. 
           Presented to the governor May 20, 2002 
           Signed by the governor May 22, 2002, 4:15 p.m.

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