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1990 Minnesota Session Laws

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                         Laws of Minnesota 1990 

                        CHAPTER 610-H.F.No. 2651 
           An act relating to public administration; authorizing 
          spending to acquire and to better public land and 
          buildings and other public improvements of a capital 
          nature with certain conditions; authorizing issuance 
          of state bonds; proposing an amendment to the 
          Minnesota Constitution, article XI, section 14; 
          clarifying legislative intent on certain matters; 
          creating new funds and accounts; requiring a 
          legislative study of capital needs; appropriating 
          money; amending Minnesota Statutes 1988, sections 
          16A.641, subdivision 6; 16A.672, by adding a 
          subdivision; 16B.16, by adding a subdivision; 16B.31, 
          by adding a subdivision; 41A.03, subdivision 5; 
          116O.12; 116P.04, subdivision 3; 136.31, subdivision 
          1; 136.62, by adding a subdivision; 136A.28, 
          subdivisions 3 and 7; 136A.35; 136C.04, subdivision 4; 
          136C.07, subdivision 5; Minnesota Statutes 1989 
          Supplement, sections 16A.631; 16A.641, subdivision 7; 
          16A.69, subdivision 1; 16B.335, subdivision 2; 
          136A.176; 136C.05, subdivision 5; 298.2211, 
          subdivision 4; 349A.10, subdivision 5; Laws 1979, 
          chapter 280, section 2, as amended; Laws 1989, chapter 
          329, article 5, section 21, subdivision 8; proposing 
          coding for new law in Minnesota Statutes, chapters 
          16A; and 462A; repealing Minnesota Statutes 1988, 
          sections 16A.651; 16A.661, subdivision 6; and 116P.04, 
          subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1
    Section 1.  [CAPITAL IMPROVEMENTS APPROPRIATIONS.] 
    The sums in the column marked "APPROPRIATIONS" are 
appropriated from the bond proceeds fund, or another named fund, 
to the state agencies indicated, to be spent to acquire and to 
better public land and buildings and other public improvements 
of a capital nature, as specified in this act. 

                                SUMMARY 
TECHNICAL COLLEGES                                 $ 25,362,000
COMMUNITY COLLEGES                                   50,500,000
STATE UNIVERSITIES                                   44,408,000
UNIVERSITY OF MINNESOTA                              71,480,000
EDUCATION                                            27,793,000
JOBS AND TRAINING                                       750,000
VETERANS HOMES BOARD                                  1,750,000
HEALTH                                                1,376,000
CORRECTIONS                                          13,121,000
HUMAN SERVICES                                       22,675,000
TRANSPORTATION                                       21,734,000
PUBLIC SAFETY                                           545,000
BOARD OF WATER AND SOIL RESOURCES                     2,395,000
MINNESOTA HISTORICAL SOCIETY                          3,475,000
INDIAN AFFAIRS COUNCIL                                   50,000
ADMINISTRATION                                       16,750,000
CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD           300,000
NATURAL RESOURCES                                    17,950,000
PUBLIC FACILITIES AUTHORITY                          30,954,000
POLLUTION CONTROL AGENCY                             27,225,000
WASTE MANAGEMENT                                      7,000,000
TRADE AND ECONOMIC DEVELOPMENT                        7,500,000
AMATEUR SPORTS COMMISSION                             5,000,000
HOUSING FINANCE AGENCY                                1,500,000
MILITARY AFFAIRS                                        200,000
BOND SALE EXPENSES                                      386,000
TOTAL                                              $402,179,000
Bond Proceeds Fund                                  109,521,000
Infrastructure Development Fund                     243,661,000
Maximum Effort School Loan Fund                      23,000,000
Transportation Fund                                  11,200,000
Trunk Highway Fund                                   10,484,000
Airport Fund                                             50,000
General Fund                                          4,263,000
                                                 APPROPRIATIONS
     Sec. 2.  TECHNICAL COLLEGES 
     Subdivision 1.  To the state board 
of vocational technical education for the 
purposes specified in this section                 $ 25,362,000
 The appropriations in this section are 
from the infrastructure development 
fund.  
Notwithstanding Minnesota Statutes, 
section 475.61, subdivision 4, the 
state board of vocational technical 
education may approve a request by a 
local school board to use any 
unobligated balance in the technical 
college debt redemption fund to pay the 
district's share of construction 
projects authorized in this section. 
 The state board shall report to the 
house appropriations and senate finance 
committees by January 15 of each year 
on the status of the capital 
improvement projects in this section. 
     Subd. 2.  Statewide 
During the biennium, as part of the 
planning process for a new or remodeled 
building, consideration must be given 
to the child care needs of a campus and 
the feasibility of locating child care 
facilities in the building.  The board 
shall report on its consideration 
process and its decision for each 
project proposed in future bonding 
requests.  
 Notwithstanding Minnesota Statutes, 
section 136C.44, during the biennium 
the state board of vocational technical 
education must not make grants to 
school districts but shall directly 
supervise and control the preparation 
of plans and specifications to 
construct, alter, or enlarge the 
technical college buildings, 
structures, and improvements provided 
for in this section.  The state board 
of vocational technical education may 
provide grants to school districts for 
land purchases authorized in this act.  
The school district must still finance 
15 percent of the cost of each project, 
other than in a joint vocational 
technical district as defined in 
Minnesota Statutes, section 136C.60. 
 During the biennium, the state board of 
vocational technical education shall 
advertise for bids and award contracts 
in connection with the improvements, 
supervise and inspect the work, approve 
necessary changes in the plans and 
specifications, approve estimates for 
payment, and accept the improvements 
when completed according to the plans 
and specifications. 
During the biennium, the state board 
may delegate the authority provided in 
this section to the campus director for 
repair and replacement projects with a 
total cost of less than $50,000, if the 
state board determines that the 
projects can be efficiently managed at 
the campus level. 
 Plans must be paid for out of this 
appropriation.  The remainder of the 
appropriation must not be spent until 
the board has secured suitable plans 
and specifications, prepared by a 
competent architect or engineer.  The 
plans and specifications must be 
accompanied by a detailed statement of 
the cost, quality, and description of 
all material and labor required for the 
completion of the work.  No plan may be 
adopted, and no improvement made or 
building constructed, that contemplates 
the expenditure for its completion of 
more money than the appropriation for 
it, unless otherwise provided in this 
act.  
The state board of vocational technical 
education may delegate responsibilities 
to technical college staff.  
     Subd. 3.  Capital improvements                   3,300,000
 This appropriation is for capital 
improvement grants to school districts 
for roofs, parking lots, hazardous 
material abatement, fuel tank removal, 
electrical, mechanical, and other 
physical plant repairs and betterments 
at technical college campuses. 
     Subd. 4.  Alexandria Technical 
College                                                 870,000
 This appropriation is for a truck 
mechanics instruction building.  The 
total cost of the project must not 
exceed $1,024,000, whether paid from 
state, local, or federal money. 
     Subd. 5.  Anoka Technical College                3,500,000
 This appropriation is to remodel and 
construct space for classrooms, 
parking, and other related purposes, 
and to acquire land.  The total cost of 
the project must not exceed $4,118,000, 
whether paid from state, local, or 
federal money. 
     Subd. 6.  Dakota County Technical
College                                                 939,000
 This appropriation is for a decision 
driving course and truck driving areas 
on land leased from the University of 
Minnesota, or currently owned land.  No 
exchange of ownership of the property 
may occur.  Any unspent balance 
remaining after completion of this 
project may be spent for classrooms.  
The total cost of the project must not 
exceed $1,200,000, whether paid from 
state, local, or federal money. 
     Subd. 7.  Detroit Lakes 
Technical College                                     4,429,000
This appropriation is to remodel and 
construct space for classrooms, a 
telecommunications center, child care, 
laboratories, staff work areas, and 
parking/site improvements.  The total 
cost of this project must not exceed 
$5,211,000 whether paid from state, 
local, or federal money.  
     Subd. 8.  Duluth  
Technical College                                       520,000
 This appropriation is for exterior wall 
stabilization and repair.  The total 
cost of this project must not exceed 
$612,000 whether paid from state, 
local, or federal money. 
     Subd. 9.  East Grand Forks 
Technical College                                     2,000,000
 This appropriation is to remodel and 
construct space for classrooms, 
laboratories, offices, 
telecommunications, truck driving 
courses, parking, and other related 
purposes.  The total cost of the 
project must not exceed $2,353,000, 
whether paid from state, local, or 
federal money. 
     Subd. 10.  Hennepin Technical 
College 
 Intermediate District 287, Hennepin 
Technical College, is authorized to 
construct classrooms, labs, staff 
areas, parking/site work, and make 
energy modifications.  The total cost 
of the project must not be more than 
$1,409,000, to be paid from the 
proceeds of the sale of land and from 
local money. 
 In funding this project, the district 
is required to use the post-secondary 
share of the proceeds from the sale of 
the west campus land.  The 
post-secondary share of the sale is the 
percent of the net sales proceeds that 
equals the state's percentage of the 
original investment. 
 To determine the amount of local funds 
available for this project, the state 
director, district superintendent, and 
commissioner of finance, or their 
designees, shall determine the 
post-secondary share of all district 
funds according to Minnesota Statutes, 
section 136C.05, subdivision 6.  
If the project is not authorized by the 
board of District No. 287 by December 
1, 1990, the state board shall recover 
the state's share of the post-secondary 
portion of the proceeds of the sale of 
the west campus land.  The recovery may 
be a direct payment from Intermediate 
District No. 287 to the state board, or 
the state board may reduce the 
allotment for the operations budget. 
     Subd. 11.  Hibbing Technical 
College                                                 500,000
 This appropriation is to prepare a site 
and a plan for a new campus.  Before 
any land is purchased, the terms of the 
purchase and the site selected must be 
submitted to the chairs of the senate 
finance and house appropriations 
committees for their review.  The total 
cost of the project must not exceed 
$588,300, whether paid from state, 
local, or federal money. 
     Subd. 12.  Southwestern Technical 
College                                               1,200,000
(a) Canby Campus 
 This appropriation is for connecting 
links to the main classroom building 
and the student services area. 
(b) Granite Falls Campus 
 This appropriation is for construction 
of a library and resource study area, 
special needs, and student services 
area. 
(c) Jackson Campus 
 This appropriation is for construction 
of an auto body and auto mechanic 
laboratory and remodeling for a library.
(d) Pipestone Campus 
 This appropriation is for remodeling 
for a library and resource study area, 
and student services space. 
     Subd. 13.  Thief River Falls 
Technical College                                     2,338,000
 This appropriation is to remodel and 
construct space for an airplane hangar, 
classrooms, staff work areas, storage, 
parking, and site work at the airport 
site.  The total cost of the project 
must not exceed $2,751,000, whether 
paid from state, local, or federal 
money. 
     Subd. 14.  Willmar Technical 
College                                                 700,000
 This appropriation is to construct and 
remodel space for the auto body 
training program.  The total cost of 
the project must not exceed $824,000, 
whether paid from state, local, or 
federal money. 
     Subd. 15.  Winona Technical 
College                                               4,666,000
This appropriation is to remodel and 
construct space for an aviation center, 
classrooms, laboratories, staff work 
areas, hangar space, storage and 
parking/site improvement.  The total 
cost of this project must not exceed 
$5,489,000 whether paid from state, 
local, or federal money.  
     Subd. 16.  Land Acquisition                        400,000
 This appropriation is for the State 
Board of Vocational Technical Education 
to acquire land for a joint campus for 
Brainerd Technical College and Brainerd 
Community College. 
The state board of vocational technical 
education, the state board for 
community colleges, Brainerd technical 
college, and Brainerd community college 
shall cooperatively undertake a plan 
for a joint campus for Brainerd 
technical college and Brainerd 
community college. 
     Sec. 3.  COMMUNITY COLLEGES 
     Subdivision 1.  To the commissioner of 
administration for the purposes specified 
in the following subdivisions                        50,500,000
 The appropriations in this section are 
from the infrastructure development 
fund.  
 Notwithstanding Minnesota Statutes, 
section 16B.24, subdivision 2, the 
state board for community colleges 
shall supervise and control the making 
of necessary repairs to all state 
community college buildings and 
structures during the biennium. 
 The state board shall report to the 
house appropriations and senate finance 
committees by January 15 of each year 
on the status of the capital 
improvement projects in this section.  
During the biennium, as part of the 
planning process for a new or remodeled 
building, consideration must be given 
to the child care needs of a campus and 
the feasibility of locating child care 
facilities in the building.  The board 
shall report on its consideration 
process and its decision for each 
project proposed in future bonding 
requests. 
     Subd. 2.  Austin Community College                 440,000
 This appropriation is to prepare 
working drawings to renovate and 
construct space for laboratories, a 
library, nursing, occupational therapy 
center, receiving and maintenance, 
dining, continuing education, theatre, 
campus center, offices, classrooms, 
bookstore, developmental learning, 
journalism, and other related purposes. 
     Subd. 3.  Brainerd Community College             5,148,000
 This appropriation is to renovate and 
construct space for drama, physical 
education, laboratories, a library, 
classrooms, a campus center, an art 
studio, offices, parking, storage 
areas, and other related purposes. 
     Subd. 4.  Cambridge Center                         400,000
 This appropriation is to prepare 
working drawings for classrooms, 
laboratories, offices, and other 
necessary purposes.  This appropriation 
is available only after receipt of a 
gift of land, including provision for 
sewer and water services, upon which 
the structures will be located.  The 
site shall be submitted to the chairs 
of the senate finance and house 
appropriations committees for their 
review, before final acceptance.  
     Subd. 5.  Fergus Falls Community 
College                                               3,429,000
 This appropriation is to construct and 
remodel space for a campus center, 
laboratories, offices, administration 
and counseling, classrooms, continuing 
education, physical education, parking, 
and storage. 
     Subd. 6.  Fond du Lac Center                     6,990,000
 This appropriation is to construct 
space for classrooms, laboratories, 
offices, and other necessary purposes.  
This appropriation is available only 
after receipt of a gift of land, 
including provision for sewer and water 
services, upon which the structures 
will be located. 
     Subd. 7.  Hibbing Community 
College                                                 500,000
 This appropriation is the state's share 
for construction of athletic facilities 
to be used jointly with the Hibbing 
school district.  The facilities must 
be maintained by the school district.  
     Subd. 8.  Lakewood Community 
College                                               3,500,000
 This appropriation is to renovate and 
construct space for classrooms, 
parking, student services, 
administration, laboratories, campus 
center, faculty office areas, and other 
related purposes. 
     Subd. 9.  Rainy River Community 
College                                               1,400,000
 This appropriation is to renovate and 
construct space for classrooms, 
laboratories, student services areas, 
faculty offices, a bookstore, 
maintenance facilities, library, 
administration areas, and other related 
purposes. 
     Subd. 10.  Vermilion Community 
College                                               1,050,000
 This appropriation is to renovate and 
construct space for shops, classrooms, 
music, information processing, 
developmental learning, and other 
related purposes, and conceptual 
planning for space for administration, 
student services, offices, classrooms, 
laboratories, and connecting links.  
This project may not proceed beyond 
plans until the plans have been 
reviewed by the chairs of the senate 
finance and house appropriations 
committees and the chairs have made 
their recommendations on the plans.  
     Subd. 11.  Willmar Community 
College                                               3,393,000
 This appropriation is to renovate and 
construct space for laboratories, a 
library, offices, parking, heating, 
ventilating, and air conditioning 
systems, fine arts, classroom areas, 
and other related purposes. 
     Subd. 12.  Worthington Community 
College                                               1,500,000
 This appropriation is to renovate and 
construct space for laboratories, 
classrooms, administration, student 
services, offices, a television studio, 
and other related purposes.  
     Subd. 13.  University Center at 
Rochester                                            17,000,000
 This appropriation is to construct and 
renovate space for the center.  For 
purposes of allocating responsibility 
for debt service for this project, the 
commissioner of finance, after 
consulting with the University of 
Minnesota, state universities, and 
community college systems, shall 
develop an equitable amount for each 
system to pay for its debt service 
share.  The total amount from the three 
systems must equal the amount necessary 
to pay the systems' share of the debt 
service transfer. 
     Subd. 14.  Systemwide capital 
improvements                                          5,000,000
 This appropriation is for capital 
improvements at community colleges 
statewide, including roofs, hazardous 
material abatement, repair or 
construction of parking lots, 
electrical, mechanical, and other 
physical plant repairs and betterments. 
     Subd. 15.  Land Acquisition                        750,000
 This appropriation is to the state 
board for community colleges to acquire 
land for Lakewood and North Hennepin 
community colleges. 
     Sec. 4.  STATE UNIVERSITIES 
     Subdivision 1.  To the state 
university board for the purposes specified 
in the following subdivisions                        44,408,000
 The appropriations in this section are 
from the infrastructure development 
fund. 
 Notwithstanding Minnesota Statutes, 
sections 16B.30 and 16B.31, during the 
biennium, the state university board 
shall supervise and control the 
preparation of plans and specifications 
for the construction, alteration, or 
enlargement of the state university 
buildings, structures, and improvements 
provided for in this section.  During 
the biennium, the board shall advertise 
for bids and award contracts in 
connection with the improvements, 
supervise and inspect the work, approve 
necessary changes in the plans and 
specifications, approve estimates for 
payment, and accept the improvements 
when completed according to the plans 
and specifications. 
 Plans must be paid for out of this 
appropriation.  The remainder of the 
appropriation must not be spent until 
the board has secured suitable plans 
and specifications, prepared by a 
competent architect or engineer.  The 
plans and specifications must be 
accompanied by a detailed statement of 
the cost, quality, and description of 
all material and labor required for the 
completion of the work.  No plan may be 
adopted, and no improvement made or 
building constructed, that contemplates 
the expenditure for its completion of 
more money than the appropriation for 
it, unless otherwise provided in this 
act. 
 The board shall report to the house 
appropriations and senate finance 
committees by January 15 of each year 
on the status of the capital 
improvement projects in this section. 
 Notwithstanding Minnesota Statutes, 
section 16B.24, subdivision 2, the 
state university board shall supervise 
and control the making of necessary 
repairs to all state university 
buildings and structures during the 
biennium.  
 Notwithstanding other law, during the 
biennium, the state university board 
may purchase property adjacent to or in 
the vicinity of the campuses as 
necessary for the development of the 
universities.  Before taking action, 
the board shall consult with the chairs 
of the senate finance committee and the 
house appropriations 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.  
During the biennium, the state 
university board may pay relocation 
costs, at its discretion, when 
acquiring property. 
During the biennium, as part of the 
planning process for a new or remodeled 
building, consideration must be given 
to the child care needs of a campus and 
the feasibility of locating child care 
facilities in the building.  The board 
shall report on its consideration 
process and its decision for each 
project proposed in future bonding 
requests. 
     Subd. 2.  Bemidji Campus 
(a) Heating plant rehabilitation                      3,990,000
(b) Emergency generator                                 870,000
     Subd. 3.  Mankato Campus 
(a) Heating plant rehabilitation                      3,720,000
(b) Construct Phase I addition 
to Trafton Hall                                       7,000,000
     Subd. 4.  Metropolitan Campus                   13,000,000
This appropriation is to construct a 
consolidated administrative and student 
center, convert the power plant to low 
pressure steam, and correct code 
deficiencies in existing structures.  
     Subd. 5.  Moorhead Campus 
(a) Construct a classroom building                    3,600,000
(b) Moorhead parking deck 
$2,560,000 appropriated by Laws 1987, 
chapter 400, section 19, subdivision 4, 
item (c), to plan and construct a 
vehicle parking deck at Moorhead State 
University, may be used to acquire land 
adjacent to or in the vicinity of the 
Moorhead campus as necessary to develop 
Moorhead State University, and may be 
used to construct parking spaces on 
university land.  The state university 
board may pay relocation costs, at its 
discretion, when acquiring this 
property.  
     Subd. 6.  Southwest Campus 
Recreational sports building                          6,300,000
Notwithstanding Laws 1989, chapter 300, 
article 1, section 4, subdivision 7, 
the appropriation in Laws 1987, chapter 
400, section 19, subdivision 6, item 
(e), no more than $50,000 may be used 
for the purpose stated in the 1989 
law.  The balance of the appropriation 
shall be added to the appropriation for 
the recreational sports building in 
this subdivision.  
    Subd. 7.  Systemwide Capital Improvements         2,515,000
 This appropriation is for capital 
improvements on state university 
campuses statewide. 
(a) Abate hazardous materials                         1,300,000
(b) Roof replacements on the                          1,215,000
Bemidji, Moorhead, St. Cloud, 
Southwest, and Winona campuses 
     Subd. 8.  Land Acquisition                       1,750,000
This appropriation is to acquire land 
adjacent to or in the vicinity of the 
St. Cloud campus. 
     Subd. 9.  Systemwide Library Planning              200,000
 This appropriation is to develop 
schematic plans for a college campus 
library and its needs 15 years into the 
future.  The plan must be suitable for 
construction of a library on any or all 
state university system campuses.  The 
plans must account for anticipated 
changes in electronic and 
communications technology affecting 
publishing, storage, access, reference, 
administration, staffing, and related 
capabilities appropriate to a 
comprehensive library and efficient use 
of its resources, including cooperative 
collection building and storage with 
other state university campuses.  The 
planning must be conducted with the 
full involvement and participation of 
St. Cloud, Bemidji, and Winona state 
universities and must be incorporated 
into plans for library improvements on 
those campuses.  The board shall report 
to the chairs of the senate finance 
committee and the house of 
representatives appropriations 
committee by May 1, 1991, describing 
the model and its application to the 
needs of the libraries at the St. 
Cloud, Bemidji, and Winona campuses.  
     Subd. 10.  Settlement of wood-fired
boiler litigation                                     1,463,000
 This appropriation is from the general 
fund. 
 Notwithstanding Laws 1987, chapter 401, 
section 5, subdivision 3, paragraphs 2 
and 3; Laws 1989, chapter 300, article 
1, section 4, subdivision 10; and Laws 
1989, chapter 293, section 5, 
subdivision 4, this appropriation is 
for the full and final payment of a 
settlement agreed to by the parties to 
the litigation among First Trust 
Company, Inc., M.E.S. Corporation, and 
the state of Minnesota to resolve 
disputes over energy services systems 
for the state universities at St. Cloud 
and Bemidji.  This appropriation is not 
an admission of liability by the state 
but represents only the sum of a 
binding court judgment and 
post-judgment interest for payments due 
prior to the 1987 and 1989 legislative 
nonappropriations enumerated above; a 
payment for past use by the state of 
certain equipment; a payment for 
purchase by the state of certain 
equipment; and a payment in lieu of all 
other outstanding claims against the 
state.  Laws 1987, chapter 401, section 
5, subdivision 3, paragraphs 2 and 3; 
Laws 1989, chapter 300, article 1, 
section 4, subdivision 10; and Laws 
1989, chapter 293, section 5, 
subdivision 4, remain permanently in 
effect except as specifically provided 
in this section. 
     Sec. 5.  UNIVERSITY OF MINNESOTA 
     Subdivision 1.  To the regents of the 
University of Minnesota for the purposes 
specified in the following subdivisions              71,480,000
 The appropriations in this section are 
from the infrastructure development 
fund.  
 The regents shall report to the house 
appropriations and senate finance 
committees by January 15 of each year 
on the status of the capital 
improvement projects in this section. 
During the biennium as part of the 
planning process for a new or remodeled 
building, consideration must be given 
to the child care needs of a campus and 
the feasibility of locating child care 
facilities in the building.  The board 
shall report on its consideration 
process and its decision for each 
project proposed in future bonding 
requests. 
     Subd. 2.  Morris Campus                          4,000,000
Remodel and construct addition to 
student center 
     Subd. 3.  Twin Cities Campus 
(a) Construct biological sciences addition           16,500,000
(b) Remodel Wilson Library                            2,080,000
(c) Construct addition to and 
renovate veterinary diagnostic lab                    7,900,000
(d) Construct music performance
hall addition to Ferguson Hall                        6,700,000
This amount must be matched by a 
minimum of $2,000,000 from nonstate 
sources.  The amount of money provided 
to match the state appropriation 
pursuant to Laws 1984, chapter 597, 
section 16, subdivision 2, clause (j), 
may be included in calculating the 
match amount required in this paragraph.
(e) Construct an Integrated Waste 
Management Facility                                   7,500,000
(f) Recreational sports and physical 
education building                                    6,000,000
This appropriation is to complete the 
university recreation center, the space 
under the bleachers in the aquatics 
center, repair the second and third 
floors of Cooke Hall, and may include 
moving gymnastics to Peik gym and 
relocating the Human Performance 
Laboratory.  If all of the preceding 
items are completed, the handball and 
racquetball courts in St. Paul may also 
be constructed. 
 (g) The appropriations in Laws 1978, 
chapter 792, section 11, subdivision 2, 
item (e); and in Laws 1984, chapter 
597, section 16, subdivision 2, item 
(f), to remodel Folwell Hall on the 
Twin Cities campus of the University of 
Minnesota may be added to the 
appropriation in Laws 1987, chapter 
400, section 20, subdivision 7, item 
(l), to remodel Folwell Hall, phase II. 
     Subd. 4.  Crookston Campus 
(a) Construct agricultural operations 
management center                                     4,410,000
(b) Plan Agricultural Utilization Research
Institute offices and labs and remodel current
space                                                   590,000
     Subd. 5.  Duluth Campus 
(a) Expand and renovate Natural Resources 
Research Institute                                    2,500,000
(b) Construct college campus center                  10,000,000
     Subd. 6.  North Central Experiment 
Station 
The appropriation in Laws 1989, chapter 
335, article 1, section 21, subdivision 
4, for hybrid aspen and hybrid larch 
research and development at the North 
Central Experiment Station at Grand 
Rapids may also be spent to construct a 
greenhouse. 
     Subd. 7.  Systemwide 
Health and safety                                     1,500,000
 This appropriation is to continue the 
program for upgrading university 
facilities to eliminate fire and life 
safety deficiencies and to continue the 
ongoing university-wide program of 
rendering facilities accessible to the 
physically disabled.  
     Subd. 8.  Minnesota Agricultural 
Experiment Stations                                   1,800,000
 This appropriation is for capital 
improvements at the Horticulture 
Research Center; the North Central 
Experiment Station; the Southwest 
Experiment Station; the West Central 
Experiment Station; the Northwest 
Experiment Station; and the Cloquet 
Forestry Center.  Any funds remaining 
after completion of the first five 
projects may be used to fund other 
experiment station projects in 
accordance with the priorities 
established by the board of regents. 
 The board of regents may execute a 
contract for deed for purchase of 
unique farm land at Lamberton.  
     Sec. 6.  HIGHER EDUCATION SYSTEMS
     Subdivision 1.  Debt Service Plans
 Each public higher education system is 
requested to include in the 1991 
biennial budget document a plan for 
incorporating debt service retirement 
into its operating budget.  The plan 
should include, but not be limited to, 
the amount of debt service, the types 
of projects, a ten-year plan for 
anticipated projects, and the method 
for financing the plan.  
     Subd. 2.  Parking Fees    
 Each public higher education system 
shall develop a parking plan.  The plan 
shall include consideration of 
establishing parking fees for each 
campus at a level that will provide 
adequate revenue to construct, repair, 
and maintain the parking lots.  The 
plan must be submitted to the 
legislature in the 1991 biennial budget 
document. 
     Sec. 7.  EDUCATION 
     Subdivision 1.  To the commissioner 
of administration, except as otherwise specified,
for the purposes specified 
in this section                                      27,793,000
     Subd. 2.  Minnesota State Academy 
for the Blind and Deaf - Faribault                      343,000
(a) Upgrade mechanical systems and make 
health and life safety improvements
in Activities Building                                  128,000
(b) Retrofit science classrooms to meet
safety standards                                         50,000
(c) Replace windows                                     165,000
     Subd. 3.  Minnesota Center for 
Arts Education       
Purchase and rehabilitate Golden Valley site          4,250,000
Notwithstanding any other law to the 
contrary, the commissioner of 
administration may purchase the Golden 
Valley site for a sum not more than 
$4,250,000. 
     Subd. 4.  Minnesota Center for Science,
Mathematics, and International Studies 
Purchase facilities at Winona                           200,000
 This appropriation is to purchase 
facilities on the campus of the former 
College of Saint Teresa in Winona, to 
be used to establish a state center for 
science, mathematics, and international 
studies.  This appropriation may be 
spent only if the Hiawatha Foundation 
exercises its option to buy the 
buildings.  The Foundation must 
maintain the facilities through June 
30, 1991. 
     Subd. 5.  Maximum Effort School Loans           23,000,000
This appropriation is from the maximum 
effort school loan fund and must be 
spent under the direction of the 
commissioner of education to make debt 
service loans and capital loans to 
school districts as provided in 
sections 124.36 to 124.47. 
This appropriation is to the 
commissioner of education, who shall 
rank capital loan applications that 
were recommended by the state board of 
education and approved by voters of the 
school district before April 15, 1990.  
Ranking shall be based on the criteria 
in Minnesota Statutes 1989 Supplement, 
section 124.43, subdivision 1, 
paragraph (b), clauses (2)(A) to (D), 
and the amount of the appropriation in 
this subdivision. 
The commissioner shall review the 
proposed plan and budgets of a project 
to be funded 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 by reducing the proceeds of the 
loan paid to the district.  
 The commissioner shall allot the amount 
available for capital loans to the 
top-ranked districts in rank order.  
The commissioner shall not prorate a 
capital loan.  If the available money 
will not fully fund a project, the 
commissioner shall allot the money to 
the next lower project that can be 
fully funded.  Capital loans are 
approved for the districts funded by 
the commissioner.  The amount, terms, 
and forgiveness of a capital loan are 
governed by this subdivision and 1990 
H.F. No. 2200, article 11.  
Except for emergency requests, these 
school district applications shall be 
the top priority for funding capital 
loans until July 1, 1995, if: 
 (1) the districts continue to meet the 
criteria in Minnesota Statutes 1989 
Supplement, section 124.43, subdivision 
1, paragraph (b), clauses (2)(A) to 
(D); 
 (2) the amount of the loan is within 
the limit established by 1990 H.F. No. 
2200, article 11, section 5, 
subdivision 8, as modified by 1990 H.F. 
No. 2200, article 11, section 10; and 
 (3) the districts levy according to 
1990 H.F. No. 2200, article 11, section 
2, and section 5, subdivision 11.  
 A district application may change 
priority or rank order when the 
conditions under which the state board 
of education approved the loan 
application or the voters approved 
borrowing the money change sufficiently 
to disqualify it for a capital loan, 
raise or lower its rank, or eliminate 
its status as top priority, according 
to 1990 H.F. No. 2200, article 11. 
     Sec. 8.  JOBS AND TRAINING
     To the commissioner of administration
for the purposes specified in this section               750,000
 This appropriation is to construct and 
renovate a regional job service office 
in south Minneapolis.  The office must 
be located at the southwest corner of 
the intersection of Chicago and Lake 
streets.  
<$USE f1 FORMAT>
     Sec. 9.  VETERANS HOMES BOARD 
     Subdivision 1.  To the commissioner 
of administration for the purposes specified 
in this section                                       1,750,000
The appropriations in this section 
represent 35 percent of the estimated 
cost of each project.  
The Minnesota Veterans Homes Board must 
apply for the federal money needed to 
complete these projects.  The 
commissioner of administration shall 
receive the federal money and make the 
money available to the Veterans Homes 
Board to spend for completion of the 
projects.  Any part of the total 
appropriation in this section may be 
spent for any of the projects in this 
section before the federal money for 
that project is received, provided that 
the project must not be started until 
enough federal or other money has been 
committed to complete it. 
     Subd. 2.  Minnesota Veterans Home - 
Minneapolis                                             
(a) Expand feeding and lounge areas in 
building 17                                             187,000
(b) Restore bridge and utilities                        367,000
(c) Demolish building 12B and remove 
boiler from building 14A                                 34,000
     Subd. 3.  Minnesota Veterans Home -
Hastings                                                       
(a) Upgrade heating and air conditioning system          56,000
(b) Replace windows                                      26,000
(c) Repair roofs                                         28,000
(d) Reconfigure domiciliary rooms to 
comply with standards                                 1,052,000 
     Sec. 10.  HEALTH 
     To the commissioner of administration 
to renovate laboratories at the present 
health building and remodel the heating,
ventilating, and air conditioning systems             1,376,000
     Sec. 11.  CORRECTIONS 
     Subdivision 1.  To the commissioner 
of administration for the purposes specified 
in this section                                      13,121,000
     Subd. 2.  Minnesota Correctional 
Facility - Faribault                         
(a) Complete phase II conversion to 
medium security and electrical upgrade 
of facility                                           2,706,000 
(b) Reconfigure roads, walks, and lots 
in coordination with the department of 
human services                                          537,000 
     Subd. 3.  Minnesota Correctional 
Facility - Lino Lakes                                   
(a) Expand "Q" Building                                 500,000
(b) Construct two new medium security
cottages                                              6,000,000
(c) Connect to city water and sewer system              955,000
(d) Replace the emergency power generator               318,000
     Subd. 4.  Minnesota Correctional 
Facility - Stillwater                                   
Replace locks in cell hall B                            594,000
     Subd. 5.  Minnesota Correctional
Facility - Willow River/Moose Lake
Expand and improve the wastewater 
treatment system                                         85,000
     Subd. 6.  Minnesota Correctional 
Facility - Shakopee 
Plan and design for expansion                           300,000 
     Subd. 7.  Minnesota Correctional
Facility - St. Cloud 
Complete the replacement of  
steam/condensate lines                                  224,000
     Subd. 8.  Minnesota Correctional
Facility - Red Wing 
Replace hot water lines from the industrial
building throughout the tunnel system of 
the facility and remove asbestos                        402,000
     Subd. 9.  Systemwide 
Repair roofs, structures, and utilities 
at various state correctional facilities                500,000
     Sec. 12.  HUMAN SERVICES 
     Subdivision 1.  To the commissioner of
administration for the purposes specified 
in this section                                      22,675,000
     Subd. 2.  Systemwide 
(a) Upgrade heating and air conditioning 
system in residential and program buildings             500,000 
(b) Remodel resident living and program 
areas to meet licensure and accreditation 
requirements                                            450,000 
(c) Repair roofs, structures, and utilities             426,000 
     Subd. 3.  Construct ten additional 
state-operated community services facilities
for people with developmental
disabilities                                          2,590,000
     Subd. 4.  State-operated 
community-based residences                            1,000,000
 This appropriation is to plan, design, 
renovate or construct two 
state-operated community-based 
residences for people with mental 
illness.  Each facility must be located 
in conformance with deconcentration 
requirements.  One facility must be 
located in the Twin Cities metropolitan 
area, must have no more than 16 beds, 
and must serve adults.  One facility 
must be located outside the Twin Cities 
metropolitan area, must have 10 beds, 
and must serve adolescents.  Before 
beginning construction, the 
commissioner shall consult with the 
chairs of the Health and Human Services 
Division of the House Appropriations 
Committee and the Health and Human 
Services Division of the Senate Finance 
Committee. 
     Subd. 5.  Construct water line to 
Cambridge Regional Treatment Center                     400,000
This appropriation is to repair or 
replace water and sewer mains at the 
Cambridge regional human services 
center in cooperation with the city of 
Cambridge.  Notwithstanding Minnesota 
Statutes, sections 94.09 to 94.16, the 
commissioner of administration may 
transfer to the city of Cambridge any 
property at the Cambridge regional 
human services center that relates to 
the provision of water or sewer 
services or other utilities.  The 
department and the city may attach to 
the transfer the conditions that they 
agree are appropriate, including 
conditions that relate to water and 
sewer service at the center and in the 
city.  If the transfer requires the 
conveyance of any interest in real 
estate, the attorney general shall 
prepare appropriate instruments of 
conveyance.  The deed to convey the 
property must contain a clause that the 
property will revert to the state if 
the property ceases to be used for a 
public purpose.  This appropriation 
expires upon the accomplishment or 
abandonment of its purpose. 
     Subd. 6.  Remodel, upgrade, and re-equip
dietary and kitchen facilities at
Ah-Gwah-Ching, Brainerd Human Services
Center, and St. Peter Regional 
Treatment Center                                        774,000
     Subd. 7.  Regional Treatment 
Centers                                               7,235,000
This appropriation is to prepare 
working drawings to remodel or 
reconstruct the Anoka, Moose Lake, and 
Fergus Falls mental health units.  
Plans must be ready for construction 
bid by June 1, 1991, with a total 
construction cost not to exceed 
$97,000,000.  Construction funds must 
be available after review of the plans 
by the 1991 legislature.  Schematics 
shall be submitted to the chair of the 
health and human services division of 
the senate finance committee and the 
chair of the health and human services 
division of the house appropriations 
committee for their review. 
 Of this appropriation, $2,800,000 is 
for Anoka Metro Regional Treatment 
Center to complete schematics and 
working drawings for construction of a 
300-bed facility for treatment of 
individuals with mental illness.  The 
new facility must include space for 
ancillary and support functions for all 
disability groups to be served by the 
regional center. 
Of this appropriation, $1,435,000 is 
for Fergus Falls Regional Treatment 
Center to develop schematics and 
working drawings for a new 100-bed 
freestanding facility for persons with 
mental illness.  The new facility must 
include space for ancillary and support 
functions for all disability groups to 
be served by the regional center.  The 
plan and working drawings must be 
drafted in a manner that will allow for 
all construction to be completed in 
totality or in phases.  The first phase 
must provide for completion of all 
ancillary and support functions.  Upon 
completion of construction, custodial 
control of the existing Kirkbride 
Complex shall be transferred to the 
commissioner of administration after a 
public meeting in Fergus Falls to 
receive recommendations for its 
disposition. 
 Of this appropriation, $1,500,000 is 
for Moose Lake Regional Treatment 
Center to develop schematics and 
working drawings for construction of a 
new 150-bed freestanding facility for 
the treatment of individuals with 
mental illness.  The new facility must 
include space for ancillary and support 
functions for all disability groups to 
be served by the regional center.  The 
site for the new facility shall be 
located, if feasible, on property 
presently under the custodial control 
of the Moose Lake Regional Treatment 
Center.  If a building site on regional 
center property is not feasible, the 
commissioners of human services and 
natural resources shall cooperatively 
explore the feasibility of an 
alternative site location on state land 
adjacent to the regional center which 
at the present time is under the 
custodial control of the department of 
natural resources.  The commissioner of 
human services may also accept a gift 
of real property as an alternative site 
for the new regional facility.  Upon 
completion of construction, custodial 
control of the existing regional center 
complex shall be transferred to the 
commissioner of corrections for the 
purpose of establishing a correctional 
facility. 
 Of this appropriation, $1,500,000 is 
for remodeling the Brainerd Regional 
Treatment Center for 35 mental health 
security beds. 
 The department of administration, in 
cooperation with the department of 
human services, shall coordinate the 
planning for the reconstruction of the 
regional treatment centers.  The 
proposals for schematics and working 
drawings for the psychiatric facilities 
at Anoka, Fergus Falls, and Moose Lake 
must be let in a single bid. The 
department of finance may reduce the 
authorization if the department 
estimates the amount needed is less 
than the authorized amount. 
     Subd. 8.  Remodel residential buildings at
regional treatment centers to meet 
standards for skilled nursing facilities              9,300,000
 This appropriation is to complete 
remodeling of buildings for 105 beds at 
Brainerd, 70 beds at Cambridge, and 85 
beds at Fergus Falls. 
     Sec. 13.  TRANSPORTATION
     Subdivision 1.  To the commissioner of
transportation for the purposes specified
in this section                                      21,734,000
     Subd. 2.  Buildings
The appropriations in this subdivision 
are from the trunk highway fund. 
(a) Bemidji rest area                                   250,000
The commissioner of transportation may 
not spend more than $400,000 from an 
appropriation for trunk highway 
development to develop the site and 
design a facility for a trunk highway 
rest area and tourist information 
center at Bemidji.  State money may not 
be spent to operate the facility. 
(b) Brainerd District Headquarters                    6,525,000
This appropriation is to construct a 
new headquarters on a site already 
owned by the department of 
transportation. 
(c) Detroit Lakes Laboratory addition                   344,000
(d) Marshall Area Maintenance Building                  600,000
This appropriation is added to the 
appropriation in Laws 1989, chapter 
269, section 2, subdivision 11, item 
(e). 
(e) Mahnomen Truck Station                              420,000
This appropriation is to construct a 
new truck station. 
(f) St. James Truck Station                             420,000
(g) Statewide
(1) Asbestos removal and 
reinsulation in Minnesota department
of transportation facilities statewide                  250,000
(2) Underground storage
tank replacement at Minnesota department
of transportation facilities statewide                  750,000
(3) Construct or repair chemical storage
sheds at department facilities                          405,000
(4) Acquire land                                        145,000
This appropriation is to acquire land 
for truck station sites at Roseau, Pine 
City, Northfield, and Pipestone. 
(5) Construct pole-type
storage sheds at Minnesota department
of transportation facilities statewide                  375,000
     Subd. 3.  Planning for airport
hangar at St. Paul downtown airport                      50,000
 This appropriation is from the state 
airports fund. 
     Subd. 4.  Federal Aid Demonstration Program      5,600,000
 This appropriation is from the state 
transportation fund. 
     Subd. 5.  Local Bridge Replacement 
and Rehabilitation                                    5,600,000
This appropriation is from the state 
transportation fund. 
(a) This appropriation shall be 
distributed by the commissioner of 
transportation as grants to political 
subdivisions for the construction and 
reconstruction of key bridges on 
highways and streets under their 
jurisdiction.  The grants shall not 
exceed the following aggregate amounts: 
(1) To counties                 $3,304,000
(2) To home rule charter 
and statutory cities            $  784,000
(3) To towns                    $1,512,000
(b) The grants may be used by a 
political subdivision to: 
(1) Construct and reconstruct key 
bridges under their jurisdiction; 
(2) Match federal-aid grants for 
construction and reconstruction of the 
bridges; 
(3) Pay the costs of preliminary 
engineering and environmental studies 
for the bridges; 
(4) Pay the costs of abandoning an 
existing bridge that is deficient and 
is in need of replacement, but where no 
replacement is made; and 
(5) Pay the cost of constructing a road 
or street that would facilitate the 
abandonment of an existing deficient 
bridge.  The construction of the road 
or street must be judged by the 
commissioner to be more cost-efficient 
than the reconstruction or replacement 
of the existing bridge. 
     Sec. 14.  PUBLIC SAFETY
Remodel Bureau of Criminal Apprehension
Building to comply with building code                   545,000
     Sec. 15.  BOARD OF WATER AND 
SOIL RESOURCES 
     To the board of water and soil 
resources for the Reinvest in Minnesota 
resources program                                     2,395,000
 This appropriation is from the 
infrastructure development fund. 
 This appropriation is to acquire 
conservation easements under Minnesota 
Statutes, section 40.43, subdivision 
3.  The board shall give priority to 
acquiring easements on cropland in 
sensitive groundwater areas.  
Administrative costs for one position 
of the board are to be paid from this 
appropriation. 
 $1,645,000 of this appropriation is to 
construct the Wellner-Hageman dam. 
     Sec. 16.  MINNESOTA HISTORICAL SOCIETY 
     Subdivision 1.  To the Minnesota historical 
society for the purposes specified in this section    3,475,000
     Subd. 2.  Specific Projects
(a) Complete State History Center                     2,300,000
This appropriation is added to the 
appropriation in Laws 1987, chapter 
400, section 15, subdivision 2. 
$100,000 of this appropriation is to 
construct exhibits at the State History 
Center. 
(b) Restore and repair deterioration of
Split Rock Lighthouse                                   125,000
(c) Restore and reconstruct Meighen
store complex                                           100,000
(d) Red Lake Tribal Information Center                  300,000
This appropriation is for the Minnesota 
historical society to make a grant to 
independent school district No. 38, Red 
Lake, to finalize construction 
documents and operating agreements 
before project bidding. 
     Subd. 3.  For heritage zone
grant-in-aid                                            100,000
 This appropriation is for grant-in-aid 
purposes of the St. Anthony Falls 
Heritage Preservation Zone.  Grants may 
be made for public improvements of a 
capital nature according to the St. 
Anthony Falls interpretive plan for 
preservation of interpretive 
components.  The matching requirements 
for the grants may be established by 
the St. Anthony Falls Heritage Board. 
    Subd. 4.  For the labor 
history center                                          550,000
 This appropriation is to plan and 
design the Labor History Center.  The 
society shall develop a facility 
program document that defines the space 
and programming needs of the center 
including operating expenses.  The 
society shall determine, through a site 
location assessment study, the location 
of the center on a site adjacent to the 
history center and prepare working 
drawings for the project.  Cost 
estimates for all elements necessary to 
complete the project must be submitted 
to the chairs of the agriculture, 
transportation, and semi-states 
divisions of the senate finance and 
house appropriations committees for 
their recommendations.  The 
recommendations are advisory only.  
Failure or refusal to make a 
recommendation promptly is deemed a 
negative recommendation.  The total 
cost of the project must not exceed 
$12,500,000.  The project cost may 
include exhibits and audio-visual 
devices and systems. 
     Subd. 5.  For site improvements
 Notwithstanding any other law to the 
contrary, unencumbered balances from 
appropriations in Laws 1981, chapter 4, 
section 11, are reappropriated to the 
Minnesota Historical Society for site 
contamination clean-up and access 
requirements.  The Minnesota Historical 
Society shall report to the chair of 
the senate committee on finance and the 
chair of the house of representatives 
committee on appropriations on 
expenditures made under this 
subdivision.  The purpose of the 
reappropriation is to pay for existing 
projects and not to pay for new 
projects. 
    Sec. 17.  INDIAN AFFAIRS COUNCIL 
Battle Point Historic Site                               50,000
This appropriation is to prepare 
preliminary plans for an interpretive 
center at the Battle Point historic 
site in Cass county on the Leech Lake 
Indian Reservation.  The plans must 
provide for the center to be 
constructed on land leased to the 
Indian affairs council by the Leech 
Lake Band of Chippewa Indians under a 
ground lease having an initial term of 
at least 20 years and a total term of 
at least 40 years, including renewal 
options.  During the term of the ground 
lease the facilities constructed on the 
land will be owned by the council, but 
when the ground lease expires the 
facilities constructed on the land will 
belong to the Leech Lake Band.  The 
plans must provide for the council to 
contract with the Leech Lake Band to 
operate the center on behalf of the 
council.  Through the center, the 
council shall carry out a program of 
public education on the history of the 
Battle Point site, with primary 
emphasis on the historical role of the 
Leech Lake Band.  The center and all 
classes and programs run by or through 
the center must be open to the public. 
     Sec. 18.  ADMINISTRATION 
To the commissioner of administration for
the purposes specified in this section               16,750,000
(a) Capital asset preservation and
replacement account                                   2,500,000
This appropriation is from the capital 
asset preservation and replacement 
account created in new Minnesota 
Statutes, section 16A.632.  
Unencumbered balances from 
appropriations in Laws 1985, First 
Special Session chapter 15, section 3, 
subdivision 2, item (a), and Laws 1987, 
chapter 400, section 3, item (a), may 
be used by the commissioner of 
administration to remove or encapsulate 
asbestos-containing materials when 
identified by a survey conducted by a 
recognized and licensed asbestos 
testing consultant as being the most 
hazardous to building occupants. 
(b) Centennial Building                               8,000,000
This appropriation is to complete 
renovation of the interior of the 
building. 
(c) To repair the ventilation 
system in the Ford building                             150,000
(d) For the Itasca Center Project                       100,000
 This appropriation is for a grant to 
Itasca county to plan for construction 
of the Itasca Center. 
(e) Judicial Center                                   2,900,000
This appropriation is to complete phase 
I of the center and phase II planning. 
(f) Plan to remodel State Capitol                       300,000
(g) Agency Relocation                                 2,800,000
 This appropriation is to the 
commissioner of administration from the 
general fund and is to provide for 
moving costs and estimated increased 
rental costs associated with agency 
relocations and shall not be used for 
the purchase of furniture related to 
agency relocations. 
 Notwithstanding any other law to the 
contrary, during the biennium in 
selecting sites for relocations, the 
commissioner shall place a priority on 
housing agencies in state-owned 
buildings whenever possible. 
(h) Agriculture Department Building
The unobligated balance of the 
appropriation in Laws 1989, chapter 
300, article 1, section 14, item (h), 
to select a site and plan for a new 
department of agriculture building, is 
canceled to the state bond fund. 
(i) Public School Building Survey 
The commissioner of administration, in 
cooperation with the commissioner of 
education, may conduct a survey of all 
public school buildings built after 
1945 and before 1980 to determine the 
degree of physical accessibility for 
people with disabilities; may train 
school maintenance personnel to conduct 
on-site surveys to identify 
accessibility deficiencies in school 
buildings; and may prepare a report and 
workplan including schedules and cost 
estimates concerning necessary 
accessibility improvements.  In 
preparing the report and workplan, the 
commissioner shall consult with and 
receive recommendations and priorities 
from the council on disability. 
These activities shall be conducted in 
conjunction with the access survey 
being conducted for state-owned 
buildings, and the appropriation in 
Laws 1989, chapter 300, article 1, 
section 14, item (a), may be used for 
this purpose. 
     Sec. 19.  CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD
Roy Wilkins Memorial                                    300,000
The capitol area architectural and 
planning board shall establish a Roy 
Wilkins memorial in the capitol area.  
The board shall select an appropriate 
site for the memorial, establish design 
requirements, choose the design, and 
oversee construction of the memorial.  
In establishing the memorial, the board 
may accept money from nonstate sources 
and contract with other private or 
public agencies. 
     Sec. 20.  NATURAL RESOURCES 
     Subdivision 1.  To the
commissioner of natural resources, except
as otherwise specified, for the purposes
specified in this section                            17,950,000
     Subd. 2.  State Forests, Parks, and Trails
(a) To acquire state forest 
lands in the Richard J. Dorer Memorial
Hardwood Forest                                         500,000
(b) For betterment of state parks
according to the management plans required
in Minnesota Statutes, chapter 86A                    3,000,000
 This appropriation is from the 
infrastructure development fund. 
(c) To acquire and to better
state trails                                          3,500,000
This appropriation is from the 
infrastructure development fund. 
 This appropriation is to acquire and to 
develop the Barnum to Carlton segment 
of the Willard Munger Trail, the Soo 
Line Trail, and the Paul Bunyan Trail. 
     Subd. 3.  For the reinvest in Minnesota 
program under Minnesota Statutes, 
sections 40.40 to 40.45                               3,000,000
This appropriation is from the 
infrastructure development fund. 
Of this appropriation, $600,000 is for 
acquisition of scientific and natural 
areas. 
Of this appropriation, $500,000 is for 
transfer to the critical habitat 
private sector matching account under 
Minnesota Statutes, section 84.943. 
     Subd. 4.  To acquire and to better
public water access sites under
Minnesota Statutes, section 97A.141                     700,000
     Subd. 5.  For flood plain management
for grants under Minnesota Statutes,
section 104.11                                        3,200,000
The commissioner of natural resources 
must give priority to projects with 
federal matching money and to projects 
currently under construction.  Where 
practical, the commissioner shall 
encourage phased construction to 
maximize the number of projects started.
 In the case of a grant for the Good 
Lake project in the Red Lake watershed 
district, the impoundment structure 
must be constructed on land leased to 
the Red Lake watershed district by the 
Red Lake Band of Chippewa Indians under 
a ground lease having an initial term 
of at least 20 years and a total term 
of at least 40 years, including renewal 
options.  During the term of the ground 
lease the facilities constructed on the 
land will be owned by the watershed 
district. 
     Subd. 6.  For the waterbank program
under Minnesota Statutes, section 
105.392                                               1,200,000 
     Subd. 7.  Environmental Learning Centers
The commissioner in cooperation with 
other affected agencies and residential 
and nonresidential learning center 
directors shall develop a long-range 
plan for the development and program 
coordination of environmental learning 
centers statewide.  The plan must focus 
on identifying programming needs, 
geographic areas to locate facilities, 
capital cost estimates for development 
and creation of a phased-in 
implementation strategy.  The plan must 
be completed for presentation to the 
legislature by January 1, 1992. 
     Subd. 8.   Repair Lake
Bronson dam                                             300,000
     Subd. 9.  Buildings
The appropriations in this subdivision 
are to the commissioner of 
administration. 
(a) Consolidate and renovate field
offices statewide                                     1,000,000
(b) Replace underground storage tanks                   250,000
(c) For phase 1 construction of 
the International Wolf Center                         1,200,000
This appropriation is to the 
commissioner of administration to 
construct phase I of the International 
Wolf Center.  The state board for 
community colleges and Vermilion 
community college shall assist in 
planning and constructing the 
facility.  Vermilion community college 
shall serve as the administrative and 
fiscal agent for the International Wolf 
Center.  Except for money specifically 
appropriated to the state board for 
community colleges for instructional 
programs affiliated with the 
International Wolf Center, operating or 
administrative costs for the 
International Wolf Center may not be 
provided from money appropriated to the 
state board for community colleges. 
(d) Lac Qui Parle Visitor's Center                      100,000
This appropriation is for planning and 
working drawings and archaeological 
excavation for a visitor center at Lac 
Qui Parle Wildlife Management Area. 
The commissioner, in cooperation with 
the Minnesota Historical Society and 
the Chippewa Area Soil and Water 
Conservation District, shall develop a 
plan for a visitor center at Lac Qui 
Parle Wildlife Management Area to be 
located at the historic mission site, 
more specifically described as a parcel 
of land lying northeast of County Road 
32 in the northeast quarter of the 
southwest quarter of Section 13, 
township 118 north, range 42 west.  
This center must include sufficient 
facilities to accommodate the needs of 
the Minnesota Historical Society to 
provide displays and interpretive 
facilities for the Native American 
culture and history of the area.  The 
plan must allow for the development of 
the site in accordance with Minnesota 
Statutes, chapter 138 and be completed 
for presentation to the legislature by 
January 1, 1991. 
     Sec. 21.  PUBLIC FACILITIES 
AUTHORITY 
To the public facilities authority for 
the purposes specified in this section                 30,954,000
(a) State Independent Grants Program 
under Minnesota Statutes, section 116.18, 
subdivision 3a                                         15,354,000
This appropriation is from the 
infrastructure development fund 
$8,854,000 is for grants for 
reimbursement projects authorized prior 
to January 1, 1989, under Minnesota 
Statutes, section 116.18, subdivision 
3a, paragraph (c), for fiscal year 1991 
to be distributed pro rata among the 
communities in amounts not to exceed 
their eligible grants.  This 
appropriation is not available to 
communities that are eligible for 
federal grants.  
 $5,500,000 is for continuation grants 
under Minnesota Statutes, section 
116.18, subdivision 3a, paragraphs (a) 
and (b), for fiscal year 1991. 
The legislative water commission shall 
study the financing of wastewater 
treatment projects.  The study must 
include a review of the state 
independent grant program and 
recommendations on how the grant 
program should be modified to better 
complement the state revolving loan 
program.  The department of trade and 
economic development and the pollution 
control agency shall cooperate in the 
study.  The legislative water 
commission shall report its findings to 
the house and senate environment and 
natural resources committees, house 
appropriations committee, and the 
senate finance committee by January 1, 
1991. 
(b) State match to the federal grants 
to capitalize the state water pollution 
control revolving fund under Minnesota 
Statutes, section 446A.07                            15,600,000
     $8,900,000 is for fiscal year 1991              
     $6,700,000 is for fiscal year 1992 
This appropriation is from the 
infrastructure development fund. 
 Any money in excess of the amount 
needed for the 20 percent state match 
to the federal grant may be used for 
grants under Minnesota Statutes, 
section 116.18, subdivisions 2a and 
3a.  Any money in excess of the amount 
needed to fund projects under paragraph 
(a), may be used for grants under 
Minnesota Statutes, section 116.18, 
subdivision 2a. 
     Sec. 22.  POLLUTION CONTROL 
AGENCY 
To the commissioner of the pollution                 
control agency for the purposes 
specified in this section                            27,225,000
(a) Combined sewer overflow grants 
under Minnesota Statutes, section 
116.162                                              23,700,000 
 This appropriation is for the state's 
share of the cost of combined sewer 
overflow projects begun during fiscal 
years 1991 and 1992.  The allocation to 
a city for projects begun in fiscal 
year 1991 or 1992 may be used, by 
choice of the city, to cover the 
shortfall in federal funding of 
projects begun by the city during 
fiscal year 1990, but the legislature 
does not intend to appropriate any more 
money for projects begun in fiscal year 
1991 or 1992 because a city has chosen 
to use part of this appropriation for 
projects begun in fiscal year 1990. 
Notwithstanding any law to the 
contrary, the city of St. Paul shall 
use all revenues derived from its 
clawback funding of sewer financing 
only for sewer separation projects that 
directly result in the elimination of 
combined sewer overflow.  
(b) Litigation Settlements                              250,000
 This appropriation is from the 
infrastructure development fund.  
This appropriation is for payment to 
municipalities to assist in settling 
claims made against the municipalities 
in litigation to which the state and 
the municipality are parties involving 
the construction of municipal 
wastewater treatment facilities funded 
partly by state matching wastewater 
treatment grant funds.  No payment may 
be made to settle litigation with a 
municipality eligible for funding under 
the corrective action grant program, 
Minnesota Statutes, section 116.181.  
No funds shall be used to pay 
litigation costs.  Payment shall be 
subject to an agreement to which the 
state and the municipality are 
parties.  Any funds not obligated by 
December 31, 1990, may be used for 
grants under Minnesota Statutes, 
section 116.18, subdivision 2a, or 
transferred to the public facilities 
authority for grants under Minnesota 
Statutes, section 116.18, subdivision 
3a. 
(c) Administrative costs under the 
wastewater construction grants program, 
Minnesota Statutes, section 116.18, 
subdivisions 2a and 3a                                  925,000
 This appropriation is from the 
infrastructure development fund. 
 Effective July 1, 1991, bond proceeds 
may not be used to pay the salaries and 
other administrative expenses of state 
employees in the pollution control 
agency.  The governor's budget request 
to the 1991 legislature should include 
a request for the amounts necessary to 
pay these expenses from the general 
fund or other funds that do not consist 
of bond proceeds. 
(d) For supplemental grant adjustments 
to those municipalities identified in 
Minnesota Statutes, section 116.18, 
subdivision 3d                                        2,350,000
This appropriation is from the 
infrastructure development fund. 
A supplemental grant must not exceed 
2.5 percent of the 
total eligible construction costs.                    
     Sec. 23.  WASTE MANAGEMENT 
     To the director of the office of
waste management for capital assistance
program grants under Minnesota Statutes,
section 115A.54                                       7,000,000
     Sec. 24.  TRADE AND ECONOMIC
DEVELOPMENT
To the commissioner of trade and economic
development for the purposes specified in
this section                                          7,500,000
(a) Convention Center Facilities                        500,000
This appropriation is for a grant to 
the city of Minneapolis to construct a 
convention center parking facility.  
The city of Minneapolis shall transfer 
to the Greater Minneapolis Convention 
and Visitors Association an annual 
amount equal to the projected debt 
service as a supplement to the 
association's budget. 
(b) Local Recreation Grants                       2,000,000
 This appropriation is from the 
infrastructure development fund. 
This appropriation is to acquire and to 
better recreation open space projects 
upon application by local units of 
government and Indian tribes and bands 
recognized by the federal government.  
Projects that receive federal grants 
must be given priority.  A grant under 
this paragraph is not contingent upon 
the receipt of federal grants.  A 
project may receive grant assistance of 
up to 50 percent of the total capital 
cost of the project or, if federal 
money is used, 50 percent of the local 
share.  A project must not receive 
grant assistance of more than 
$400,000.  A local unit of government 
must not receive more than one grant 
during each fiscal biennium. 
 $625,000 is granted for projects 
outside the metropolitan area that is 
defined in Minnesota Statutes, section 
473.121, subdivision 2. 
 Up to ten percent of the appropriation 
for local recreation grants may be used 
for acquisition of park land that is 
currently used as a park and is being 
leased by a local unit of government.  
This portion of the appropriation is 
not subject to the 50 percent local 
match.  A local unit of government 
receiving a grant under this provision 
must agree to operate and maintain the 
park.  
(c) Metropolitan Open Space                           5,000,000
 This appropriation is from the 
infrastructure development fund. 
 This appropriation is for payment by 
the commissioner of energy and economic 
development to the metropolitan council 
established under Minnesota Statutes, 
section 473.123.  The commissioner 
shall transfer the amount 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 
acquisition and betterment by the 
metropolitan council and local 
government units of regional 
recreational open space lands in 
accordance with the council's policy 
plan as provided in Minnesota Statutes, 
sections 473.315 and 473.341, including 
relocation costs and tax equivalents 
required to be paid by Minnesota 
Statutes, sections 473.315 and 473.341. 
 Using the authority granted in 
Minnesota Statutes, section 473.325, 
the metropolitan council may authorize 
the issuance of general obligation 
bonds of the council for the 
acquisition and betterment of regional 
recreational open space.  The bonds 
must be issued as provided in and 
subject to the dollar limitation of 
Minnesota Statutes, section 473.325. 
 None of the proceeds from the sale of 
bonds authorized by this appropriation 
or by the sale of metropolitan council 
bonds may be used to reimburse a 
development agency of a city of the 
first class for land acquisition or 
development costs incurred prior to 
1988. 
(d) Duluth Zoo                  
The amount appropriated for a grant to 
the Duluth zoo in Laws 1989, chapter 
335, article 1, section 25, subdivision 
6, may be granted in more than one 
disbursement.  Each disbursement is 
available after the commissioner of 
finance has determined that the portion 
of the grant to be disbursed has been 
matched by an equal amount from 
nonstate sources. 
 The appropriation in Laws 1989, chapter 
335, article 1, section 25, subdivision 
6, of $500,000 in the first year for 
the Duluth Zoo does not cancel at the 
end of the first year and is available 
for the second year of the biennium. 
     Sec. 25.  MINNESOTA AMATEUR SPORTS 
COMMISSION 
     To the Minnesota amateur sports 
commission for the purposes specified in
this section                                          5,000,000
(a) Construct Holmenkollen ski jump in
Bloomington                                           2,500,000
This appropriation is for a grant to 
the city of Bloomington and is 
available only after the commissioner 
of finance has determined that the city 
of Bloomington has committed $2,500,000 
and private contributors have committed 
$2,500,000 to complete the project. 
(b) Construct indoor national shooting
sports center at Giant's Ridge in
Biwabik                                               2,500,000
This appropriation is for a grant to 
the iron range resources and 
rehabilitation board to construct a 
national shooting sports center for the 
Olympic sports of shooting and archery. 
(c) Expand seating capacity of National
Sports Center in Blaine  
$8,500,000 is appropriated from the 
proceeds of sports facility revenue 
bonds. 
This appropriation is not available 
until the commission has executed a 
contract with the United States Soccer 
Federation naming the National Sports 
Center in Blaine a site for the 1994 
World Cup of Soccer and the 
commissioner of finance has determined 
that the sports commission has secured 
revenue from local and private sources 
that will be sufficient to retire the 
bonds sold to finance this 
appropriation.  The bonds sold for this 
appropriation shall be revenue bonds.  
The legislature intends not to 
appropriate money from the general fund 
to pay for these bonds. 
     Sec. 26.  HOUSING FINANCE AGENCY 
     Transitional Housing                             1,500,000
This appropriation is for transfer to 
the local government unit housing 
account created by new Minnesota 
Statutes, section 462A.202, in the 
housing development fund. 
     Sec. 27.  MILITARY AFFAIRS
     To the adjutant general to 
prepare plans for an education center 
at Camp Ripley                                          200,000
The adjutant general shall use the 
unencumbered balance from the 
appropriation in Laws 1984, chapter 
597, section 9, paragraph (d), for the 
planning of a new armory and military 
affairs building. The department of 
military affairs shall continue to 
occupy the veterans service building 
until the department has secured the 
federal funds and the legislature has 
acted on a governor's recommendation 
for funding of a new armory/military 
affairs building. 
     Sec. 28.  BOND SALE EXPENSES 
     To the commissioner of finance 
for bond sale expenses under Minnesota 
Statutes, section 16A.641, subdivision 8                386,000
     Sec. 29.  DEBT SERVICE 
 The commissioner of finance shall 
schedule the sale of state general 
obligation bonds so that, during the 
biennium ending June 30, 1991, no more 
than $369,000,000 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, other than general obligation 
special tax bonds or infrastructure 
development bonds.  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. 30.  [BOND SALE.] 
    Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
appropriated in this act from the state bond proceeds fund the 
commissioner of finance, on request of the governor, shall sell 
and issue bonds of the state in an amount up to $109,525,000 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.  [INFRASTRUCTURE DEVELOPMENT FUND.] To provide the 
money appropriated in this act from the infrastructure 
development fund, the commissioner of finance, on request of the 
governor, shall sell and issue bonds of the state in an amount 
up to $243,665,000 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. 3.  [TRANSPORTATION FUND.] To provide the money 
appropriated in this act from the state transportation fund, the 
commissioner of finance, on request of the governor, shall sell 
and issue bonds of the state in an amount up to $11,200,000 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.  [PLANNING.] 
    During the biennium, in its planning for new program 
offerings at a particular institution, each public 
post-secondary education governing board shall consider the 
availability of physical space and the adequacy of facilities at 
that institution.  If the board determines that new space or 
facilities are required, it shall examine the feasibility of 
developing the program at a different institution within its 
system or in cooperation with other systems. 
    Sec. 32.  [BOND SALE REDUCTION.] 
    The bond sale authorization in Laws 1979, chapter 300, 
section 4, subdivision 3 for construction of local dams is 
reduced by $129,000. 
    Sec. 33.  Minnesota Statutes 1989 Supplement, section 
16A.631, is amended to read: 
    16A.631 [BOND PROCEEDS FUND.] 
    The bond proceeds fund is established to receive state bond 
the proceeds appropriated to agencies to acquire and to better 
public land and buildings and other public improvements of a 
capital nature, as authorized by of state bonds issued under the 
constitution, article XI, section 5, clause (a).  The 
commissioner shall establish in the fund accounts having titles 
that reflect the state purpose or program for which the bond 
proceeds are appropriated and authorized to be expended. 
    Sec. 34.  [16A.632] [CAPITAL ASSET PRESERVATION AND 
REPLACEMENT ACCOUNT.] 
    Subdivision 1.  [ESTABLISHMENT.] A capital asset 
preservation and replacement account is established in the state 
bond proceeds fund established by section 16A.631, separate from 
any other accounts maintained in that fund, to receive state 
bond proceeds appropriated to the commissioner of administration 
to be expended for the purpose and in accordance with the 
standards and criteria set forth in this section.  
    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.  Under section 
14.02, subdivision 4, these instructions and allocations do not 
constitute rules and the other provisions of chapter 14 do not 
apply to them.  
    (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.  
    Subd. 3.  [CRITERIA FOR PRIORITY.] Criteria can be stated 
only in general terms, as it is the purpose of the program to 
improve the allocation of limited amounts of borrowed money by 
enlisting the engineering expertise of the department of 
administration and the closer knowledge and experience of this 
and all other agencies in determining relative needs as they 
develop.  The following criteria must be considered:  
    (a) Urgency in ensuring the safety of use of existing 
buildings is the first criterion to be applied.  It will require 
judgments, for example, about the useful life of electric and 
mechanical systems and roofs, in relation to the remaining 
useful life of each building, and about the presence of 
hazardous substances and structural defects in the light of 
present building regulations.  
    (b) Economy is also to be determined and may even reinforce 
a decision based on the first criterion, if the project would 
forestall a larger future capital expenditure or would reduce 
operating expense.  
    (c) Absolute cost must also be considered.  It may be too 
high to warrant funding except by an additional appropriation, 
or so high as to warrant a recommendation to abandon or to 
replace the building.  It may be so low as to permit payment out 
of an agency's operating budget. 
    Sec. 35.  Minnesota Statutes 1988, section 16A.641, 
subdivision 6, is amended to read: 
    Subd. 6.  [TAXABILITY; CERTIFICATION.] The commissioner 
shall ascertain from state records and certify to the holders of 
each series of state bonds, subject to the approval of the 
attorney general, that all conditions exist and all actions have 
been taken that are needed to make the bonds valid and binding 
general obligations of the state in accordance with their terms. 
The commissioner shall also certify for the state the facts, 
estimates, and circumstances on the date of issue that lead the 
commissioner reasonably to expect that the proceeds will not be 
used in a way that would make the bonds arbitrage bonds under 
section 103(c) of the Internal Revenue Code and related federal 
regulations. 
    The bonds may be issued with or without regard to whether 
the interest to be paid on them is includable in gross income 
for federal tax purposes.  If it is intended that the interest 
on the bonds be exempt from federal income taxes, the 
commissioner shall certify for the state on the date of issue 
the facts, estimates, and circumstances that lead the 
commissioner reasonably to expect that the proceeds of the bonds 
and the projects financed by them will not be used in a way that 
would cause the interest on the bonds to be subject to federal 
income taxes.  The commissioner may covenant with the holders of 
the bonds that the state will comply with the provisions of the 
United States Internal Revenue Code then or later enacted that 
apply or may apply to the bonds and that establish conditions 
under which the interest to be paid on the bonds will not be 
subject to federal income taxes.  The commissioner and all other 
state officers shall act or refrain from acting as necessary to 
comply with the covenants.  A sum sufficient to meet the cost of 
compliance is annually appropriated to the commissioner from the 
general fund. 
    Sec. 36.  Minnesota Statutes 1989 Supplement, section 
16A.641, subdivision 7, is amended to read: 
    Subd. 7.  [CREDIT OF PROCEEDS.] (a) Proceeds of bonds 
issued under each law must be credited by the commissioner to a 
special fund, as provided in this subdivision.  
    (b) Accrued interest and any premium received on sale of 
the bonds must be credited to the state bond fund created by the 
constitution, article XI, section 7.  
    (c) Except as otherwise provided by law, proceeds of 
state building bonds issued under the constitution, article XI, 
section 5, clause (a), must be credited to the bond proceeds 
fund under established by section 16A.631.  
    (d) Proceeds of state highway bonds must be credited to the 
trunk highway fund under the constitution, article XIV, section 
6.  
    (e) Proceeds of bonds issued for programs of grants or 
loans to political subdivisions must be credited to special 
accounts in the bond proceeds fund or to special funds 
established by laws stating the purposes of the grants or loans, 
and the standards and criteria under which an executive agency 
is authorized to make them.  
    (f) Proceeds of refunding bonds must be credited to the 
state bond fund as provided in section 16A.66, subdivision 1.  
    (g) Proceeds of other bonds must be credited as provided in 
the law authorizing their issuance.  
    Sec. 37.  [16A.662] [INFRASTRUCTURE DEVELOPMENT BONDS.] 
    Subdivision 1.  [INFRASTRUCTURE DEVELOPMENT FUND.] The 
infrastructure development fund is created as an account in the 
state treasury.  The commissioner of finance shall credit to the 
fund income from the sources provided by law.  The commissioner 
of finance shall from time to time certify to the state board of 
investment the assets of the fund not currently needed.  The 
amount certified must be invested by the state board of 
investment subject to section 11A.24.  Investment income and 
investment losses attributable to investment of fund assets must 
be credited to or borne by the fund. 
    Subd. 2.  [BONDS AUTHORIZED.] When authorized by law 
enacted in accordance with the constitution, article XI, 
sections 5 and 7, the commissioner may by order sell and issue 
infrastructure development bonds of the state evidencing public 
debt incurred for any purpose stated in the law.  The bonds are 
general obligations of the state, and the full faith and credit 
of the state are pledged for their payment. 
    Subd. 3.  [MANNER OF ISSUANCE; MATURITIES.] The bonds must 
be issued and sold in accordance with section 16A.641.  Sections 
16A.672 and 16A.675 apply to the bonds. 
    Subd. 4.  [ESTABLISHMENT OF DEBT SERVICE ACCOUNT; 
APPROPRIATION OF DEBT SERVICE ACCOUNT MONEY.] There is 
established within the state bond fund a separate and special 
account designated as the infrastructure development bond debt 
service account.  There must be transferred to this debt service 
account in each fiscal year from money in the infrastructure 
development fund, other than bond proceeds and interest earned 
on bond proceeds, an amount sufficient to increase the balance 
on hand in the debt service account on each December 1 to an 
amount equal to the full amount of principal and interest to 
come due on all outstanding infrastructure development bonds to 
and including the second following July 1.  The amount necessary 
to make the transfer is appropriated from the infrastructure 
development fund.  The money on hand in the debt service account 
must be used solely for the payment of the principal of, and 
interest on, the bonds, and is appropriated for this purpose.  
This appropriation does not cancel as long as any of the bonds 
remain outstanding. 
    Subd. 5.  [ASSESSMENT TO HIGHER EDUCATION SYSTEMS.] (a) In 
order to reduce the amount otherwise required to be transferred 
under subdivision 4, the commissioner of finance shall assess 
each higher education system for one-third the amount that would 
otherwise need to be transferred with respect to infrastructure 
development bonds sold to finance capital improvement projects 
at institutions under the control of the system; provided that, 
to the extent that the amount to be transferred is for payment 
of principal and interest on bonds sold to finance life safety 
improvements, the commissioner must not assess the higher 
education systems for the transfer. 
    (b) After each sale of infrastructure development bonds, 
the commissioner of finance shall notify the state board for 
vocational technical education, the state board for community 
colleges, the state university board, and the regents of the 
University of Minnesota of the amounts for which each system is 
responsible for each year for the life of the bonds.  The 
amounts payable each year are reduced by one-third of the net 
income from investment of infrastructure development bond 
proceeds that must be allocated among the systems in proportion 
to the amount of principal and interest otherwise required to be 
paid by each.  Each higher education system shall pay its annual 
share of debt service payments to the commissioner of finance by 
December 1 each year.  If a higher education system fails to 
make a payment when due, the commissioner of finance shall 
reduce allotments for appropriations from the general fund 
otherwise payable to the system to cover the amount of the 
missed debt service payment.  The commissioner of finance shall 
credit the payments received from the higher education systems 
to the infrastructure development bond debt service account in 
the state bond fund each December 1 before the transfer is made 
under subdivision 4. 
    Subd. 6.  [APPROPRIATION FROM GENERAL FUND.] There is 
annually appropriated from the general fund for transfer to the 
infrastructure development bond debt service account the amount 
that, added to the amount in the infrastructure development bond 
debt service account on December 1 each year, after giving 
effect to subdivisions 4 and 5, is equal to the full amount of 
principal and interest to come due on all bonds to and including 
July 1 in the second ensuing year. 
    Subd. 7.  [CONSTITUTIONAL TAX LEVY.] Under the 
constitution, article XI, section 7, the state auditor must levy 
each year on all taxable property within the state a tax 
sufficient, with the amount then on hand in the infrastructure 
development bond debt service account, to pay all principal and 
interest on the bonds due and to become due to and including 
July 1 in the second ensuing year.  The tax is not subject to 
limit as to rate or amount.  However, the amount of money 
appropriated from other sources as provided in subdivisions 4, 
5, and 6, and actually received and on hand before the levy in 
any year, reduces the amount of the tax otherwise required to be 
levied.  The proceeds of the tax must be credited to the 
infrastructure development bond debt service account. 
    Subd. 8.  [APPLICATION AND APPROPRIATION OF PROCEEDS.] The 
proceeds of the bonds must be deposited and spent as provided in 
this subdivision and are appropriated for those purposes.  Any 
accrued interest and any premium received on the sale of the 
bonds must be credited to the infrastructure development bond 
debt service account.  Except as otherwise required by law, the 
balance of the bond proceeds shall be credited to the 
infrastructure development fund and spent for the purposes 
specified in the law authorizing the issuance of the bonds.  So 
much of the proceeds as is necessary must be used to pay costs 
incurred in issuing and selling the bonds. 
    Sec. 38.  [TUITION NOT INCREASED.] 
   Tuition must not be increased to meet each higher education 
system's annual share of debt service payments.  Existing 
internal resources must be used to meet each system's share as 
follows:  (i) existing instructional funds must be used for 
capital improvement projects for instructional purposes, and 
(ii) existing noninstructional funds must be used for capital 
improvement projects for noninstructional purposes.  This 
section is repealed July 1, 1991. 
    Sec. 39.  Minnesota Statutes 1988, section 16A.672, is 
amended by adding a subdivision to read: 
    Subd. 9a.  [TAXABILITY; CERTIFICATION.] Certificates may be 
issued with or without regard to whether the interest to be paid 
on them is includable in gross income for federal tax purposes.  
If it is intended that the interest on the certificates be 
exempt from federal income taxes, the commissioner shall certify 
for the state on the date of issue the facts, estimates, and 
circumstances that lead the commissioner reasonably to expect 
that the proceeds of the certificates will not be used in a way 
that would cause the interest on the certificates to be subject 
to federal income taxes.  The commissioner may covenant with the 
holders of the certificates that the state will comply with the 
provisions of the United States Internal Revenue Code then or 
later enacted that apply or may apply to the certificates and 
that establish conditions under which the interest to be paid on 
the certificates will not be subject to federal income taxes.  
The commissioner and all other state officers shall act or 
refrain from acting as necessary to comply with the covenants.  
A sum sufficient to meet the cost of compliance is annually 
appropriated to the commissioner from the general fund. 
    Sec. 40.  Minnesota Statutes 1989 Supplement, section 
16A.69, subdivision 1, is amended to read: 
    Subdivision 1.  [APPROPRIATIONS INTO SINGLE PROJECT 
ACCOUNT.] The commissioner shall place the money from two or 
more appropriations for the same or related projects in one 
account if all the appropriations do not lapse until their 
purposes are accomplished or abandoned.  The commissioner of 
administration agency to whom the appropriation was made shall 
first certify which accounts are involved to the commissioner. 
    Sec. 41.  Minnesota Statutes 1988, section 16B.31, is 
amended by adding a subdivision to read: 
    Subd. 6.  [STATE BUILDINGS.] (a) The commissioner of 
administration, in cooperation with the commissioner of finance 
shall:  
    (1) establish a state building classification system for 
state-owned buildings, with each class representing a different 
quality of building construction, to be incorporated into the 
capital budget format and instructions; and 
    (2) create and maintain an inventory of all major state 
buildings and office space owned or leased by the state, 
including a classification system on the condition and 
suitability of each major building. 
    (b) The commissioner of administration shall present to the 
legislature a supportable cost analysis whenever the 
commissioner proposes, for the purpose of providing state agency 
office space, to: 
    (1) enter into a lease for more than 50,000 square feet or 
for more than five years; 
    (2) enter into a lease-purchase agreement or an agreement 
to lease with option to buy property; 
    (3) purchase an existing building; or 
    (4) construct a new building. 
    Sec. 42.  Minnesota Statutes 1989 Supplement, section 
16B.335, subdivision 2, is amended to read: 
    Subd. 2.  [OTHER PROJECTS.] All other capital projects 
except for those contained in agency operations budgets, 
including building improvements, small structures at experiment 
stations, asbestos removal, life safety, PCB removal, 
tuckpointing, roof repair, code compliance, landscaping, 
drainage, electrical and mechanical systems work, paving of 
streets, parking lots, and the like must not proceed until the 
agency undertaking the project has notified the chair of the 
senate finance committee and the chair of the house 
appropriations committee that the work is ready to begin. 
    Sec. 43.  Minnesota Statutes 1988, section 116O.12, is 
amended to read: 
    116O.12 [GREATER MINNESOTA ACCOUNT.] 
    (a) The Greater Minnesota account is in the special revenue 
fund.  Money in the account not needed for the immediate 
purposes of the corporation may be invested by the state board 
of investment in any way authorized by section 11A.24.  Money in 
the account is appropriated to the corporation to be used as 
provided in this chapter.  
    (b) The account consists of:  
    (1) money appropriated and transferred from other state 
funds; 
    (2) fees and charges collected by the corporation; 
    (3) income from investments and purchases; 
    (4) revenue from loans, rentals, royalties, dividends, and 
other proceeds collected in connection with lawful corporate 
purposes; 
    (5) gifts, donations, and bequests made to the corporation; 
and 
    (6) through the first five full fiscal years, during which 
proceeds from the lottery are received, one-half of the net 
proceeds of the state-operated lottery must be credited to the 
Greater Minnesota Corporation account.  Thereafter, up to 
one-half, as determined by law each biennium, of the net 
proceeds from the state-operated lottery must be credited to the 
Greater Minnesota Corporation account other income credited to 
the account by law. 
    Sec. 44.  Minnesota Statutes 1988, section 116P.04, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVENUE.] Revenue collected in accordance with 
subdivision 2 must be deposited monthly in the trust fund 
account.  Nothing in sections 116P.01 to 116P.12 limits the 
source of contributions to the trust fund. 
    Sec. 45.  [BOND ISSUE; MAXIMUM EFFORT LOANS; 1990.] 
    To provide money to be loaned to school districts as 
agencies and political subdivisions of the state to acquire and 
to better public land and buildings and other public 
improvements of a capital nature, in the manner provided by the 
maximum effort school aid law, the commissioner of finance shall 
issue and sell school loan bonds of the state of Minnesota in 
the maximum amount of $23,000,000, in addition to the bonds 
already authorized for this purpose.  The bonds must be issued 
and sold and provision for their payment must be made according 
to section 124.46.  Expenses incidental to the sale, printing, 
execution, and delivery of the bonds, including, but without 
limitation, actual and necessary travel and subsistence expenses 
of state officers and employees for those purposes, must be paid 
from the maximum effort school loan fund, and the money 
necessary for the expenses is appropriated from that fund.  
    Sec. 46.  Minnesota Statutes 1988, section 136.62, is 
amended by adding a subdivision to read: 
    Subd. 9.  [AUTHORIZATION TO SEEK FINANCING.] A community 
college must not seek financing for child care facilities 
through the higher education facilities authority, as provided 
in section 47, without the explicit authorization of the state 
board. 
    Sec. 47.  Minnesota Statutes 1988, section 136A.28, 
subdivision 3, is amended to read: 
    Subd. 3.  "Project" means a structure or structures 
available for use as a dormitory or other student housing 
facility, a dining hall, student union, administration building, 
academic building, library, laboratory, research facility, 
classroom, athletic facility, health care facility, child care 
facility, and maintenance, storage, or utility facility and 
other structures or facilities related thereto or required or 
useful for the instruction of students or the conducting of 
research or the operation of an institution of higher education, 
whether proposed, under construction, or completed, including 
parking and other facilities or structures essential or 
convenient for the orderly conduct of such institution for 
higher education, and shall also include landscaping, site 
preparation, furniture, equipment and machinery and other 
similar items necessary or convenient for the operation of a 
particular facility or structure in the manner for which its use 
is intended but shall not include such items as books, fuel, 
supplies or other items the costs of which are customarily 
deemed to result in a current operating charge, and shall not 
include any facility used or to be used for sectarian 
instruction or as a place of religious worship nor any facility 
which is used or to be used primarily in connection with any 
part of the program of a school or department of divinity for 
any religious denomination. 
    Sec. 48.  Minnesota Statutes 1988, section 136A.28, 
subdivision 7, is amended to read: 
    Subd. 7.  "Participating institution of higher education" 
means an institution of higher education which, pursuant to 
that, under the provisions of sections 136A.25 to 136A.42, 
undertakes the financing and construction or acquisition of a 
project or undertakes the refunding or refinancing of 
obligations or of a mortgage or of advances as provided in 
sections 136A.25 to 136A.42.  Community colleges and technical 
colleges may be considered participating institutions of higher 
education for the purpose of financing and constructing child 
care facilities. 
    Sec. 49.  Minnesota Statutes 1988, section 136C.04, 
subdivision 4, is amended to read: 
    Subd. 4.  [BUDGET REQUESTS.] The state board shall review 
and approve, disapprove, or modify the biennial budget requests 
for post-secondary vocational education operations and 
facilities submitted by the state director.  The state board 
shall submit the approved biennial budget requests to the 
governor.  A technical college must not seek financing for child 
care facilities through the higher education facilities 
authority, as provided in section 47, without the explicit 
authorization of the state board. 
    Sec. 50.  Minnesota Statutes 1989 Supplement, section 
136C.05, subdivision 5, is amended to read: 
    Subd. 5.  [USE OF PROPERTY.] (a) A school board must not 
sell, lease, or assign technical institute property for purposes 
other than technical institute activities without the approval 
of the state director.  A school board need not obtain approval 
for uses that are incidental. 
    (b) Notwithstanding section 123.36, subdivision 13, 
proceeds from the sale, exchange, lease, or assignment of 
technical college land or buildings shall be used to repay any 
remaining debt service on the land or buildings.  Subject to the 
approval of the state director, any remaining proceeds shall be 
placed in the post-secondary capital expenditure, repair and 
replacement, or construction fund. 
    (c) The proceeds of any arbitration or litigation resulting 
from claims involving technical college property shall be placed 
in the technical college repair and replacement fund.  
    Sec. 51.  Minnesota Statutes 1988, section 136C.07, 
subdivision 5, is amended to read: 
    Subd. 5.  No district shall expend funds from any source 
for the acquisition or betterment of lands or buildings or, for 
capital improvements, or for plans or specifications for 
betterment of lands or buildings needed for a technical 
institute without the approval of the state board and 
authorization by specific legislative act if that acquisition, 
betterment or capital improvement requires the expenditure of 
$250,000 or more, or adds more than 1,000 gross square feet to a 
post-secondary vocational facility, or requires the issuance of 
school district bonds.  No acquisition or betterment of lands or 
buildings or capital improvement which requires the expenditure 
of $50,000 or more but less than $250,000 or which changes the 
perimeter walls of an existing facility shall be carried out 
without the approval of the state board.  No acquisition or 
betterment of lands or buildings or capital improvement which 
requires the expenditure of less than $50,000, which does not 
change a perimeter wall and which does not require the issuance 
of school district bonds, shall be carried out without the 
approval of the state director of vocational technical 
education.  As used in this subdivision, the terms "acquisition" 
and "betterment," as applied to lands and buildings, and 
"capital improvement" shall have the meanings ascribed to them 
in chapter 475, but shall not include the acquisition or 
betterment of machinery or equipment. 
    Sec. 52.  Minnesota Statutes 1989 Supplement, section 
349A.10, subdivision 5, is amended to read: 
    Subd. 5.  [DEPOSIT OF NET PROCEEDS.] Within 30 days after 
the end of each month, the director shall pay to the state 
treasurer deposit in the state treasury the net proceeds of the 
lottery, which is the balance in the lottery fund after 
transfers to the lottery prize fund and credits to the lottery 
operations account.  Of the net proceeds, 40 percent must be 
credited to the Minnesota environment and natural resources 
trust fund, 28.3 percent must be credited to the infrastructure 
development fund for capital improvement projects at state 
institutions of higher education, 6.7 percent must be credited 
to the infrastructure development fund for capital improvement 
projects to develop or protect the state's environment and 
natural resources, and, through the first ten full fiscal years 
during which proceeds from the lottery are received, 25 percent 
must be credited to the Greater Minnesota account in the special 
revenue fund. 
    Sec. 53.  [462A.202] [LOCAL GOVERNMENT UNIT HOUSING 
ACCOUNT.] 
    Subdivision 1.  [ACCOUNT.] The local government unit 
housing account is established as a separate account in the 
housing development fund.  Money in the account is appropriated 
to the agency for the purposes specified in this section. 
    Subd. 2.  [TRANSITIONAL HOUSING.] The agency may make loans 
or grants to local government units to finance the acquisition, 
improvement, and rehabilitation of existing housing properties 
for the purposes of providing transitional housing, upon terms 
and conditions the agency determines.  Preference must be given 
to local government units that propose to acquire properties 
being sold by the resolution trust corporation or the department 
of housing and urban development.  The local government unit may 
contract with a nonprofit or for-profit organization to manage 
the property and to operate a transitional housing program on 
the property on behalf of the local government unit, on terms 
and conditions approved by the agency.  The local government 
unit shall retain ownership of the property for at least 20 
years.  After 20 years, the sale of a property before the 
expiration of its useful life must be at its fair market value, 
and the net proceeds of sale must be used for the same purpose 
or repaid to the agency for deposit in the local government unit 
housing account.  
    Subd. 3.  [PUBLICLY OWNED HOUSING REHABILITATION AND 
MODERNIZATION.] The agency may make loans or grants to local 
government units to finance the rehabilitation and modernization 
of publicly owned housing units.  The local government unit 
shall retain ownership of the property for at least 20 years.  
The sale of property prior to the expiration of its useful life 
shall be at its fair market value, and the net proceeds of sale 
shall be used for the same purpose or repaid to the agency for 
deposit in the account established in subdivision 1. 
    Subd. 4.  [SUBSIDIZED RENTAL HOUSING PRESERVATION.] The 
agency may make loans or grants to local government units to 
finance the acquisition and rehabilitation of federally 
subsidized multifamily rental housing for the purpose of 
preserving the housing for the use of low- and moderate-income 
persons, upon the terms and conditions as the agency may 
determine.  The local government unit may contract with a 
nonprofit or for-profit organization to manage the property, on 
terms and conditions approved by the agency.  The local 
government unit shall retain ownership of the property for at 
least 20 years.  The sale of a property prior to the expiration 
of its useful life shall be at its fair market value, and the 
net proceeds of sale shall be used for the same purpose or 
repaid to the agency for deposit in the account established in 
subdivision 1. 
    Subd. 5.  [SPECIFIC APPROPRIATION NECESSARY.] The agency 
may only make grants or loans to local governments under 
subdivisions 3 and 4 from funds specifically appropriated by the 
legislature for that purpose. 
    Sec. 54.  [CONSTITUTIONAL AMENDMENT.] 
   The following amendment to the Minnesota Constitution, 
article XI, section 14, is proposed to the people.  If the 
amendment is adopted, the section will read as follows: 
    Sec. 14.  A permanent Minnesota environment and natural 
resources trust fund is established in the state treasury.  The 
principal of the environment and natural resources trust fund 
must be perpetual and inviolate forever, except appropriations 
may be made from up to 25 percent of the annual revenues 
deposited in the fund until fiscal year 1997 and loans may be 
made of up to five percent of the principal of the fund for 
water system improvements as provided by law.  This restriction 
does not prevent the sale of investments at less than the cost 
to the fund, however, all losses not offset by gains shall be 
repaid to the fund from the earnings of the fund.  The net 
earnings from the fund shall be appropriated in a manner 
prescribed by law for the public purpose of protection, 
conservation, preservation, and enhancement of the state's air, 
water, land, fish, wildlife, and other natural resources.  Not 
less than 40 percent of the net proceeds from any state-operated 
lottery must be credited to the fund until the year 2001. 
    Sec. 55.  [SUBMISSION TO VOTERS.] 
    The proposed amendment shall be submitted to the people at 
the 1990 general election.  The question submitted shall be:  
    "Shall the Minnesota Constitution be amended to dedicate 
not less than 40 percent of the net proceeds from the state 
lottery to the Minnesota environment and natural resources trust 
fund for environment, natural resources, and wildlife purposes 
until the year 2001? 
                                   Yes .......
                                   No ........"
    Sec. 56.  Laws 1979, chapter 280, section 2, as amended by 
Laws 1982, chapter 617, section 25, Laws 1985, chapter 299, 
section 39, Laws 1985, First Special Session, chapter 16, 
article 2, section 16, and Laws 1989, chapter 300, article 1, 
section 34, is amended to read: 
    Sec. 2.  [APPROPRIATION.] Subdivision 1.  $60,000,000, or 
so much thereof as is determined to be needed, is appropriated 
from the Minnesota state transportation fund to the department 
of transportation to be expended for disbursement in the form of 
grants by the commissioner of transportation for construction 
and reconstruction of key bridges on the state transportation 
system and shall be allocated pursuant to subdivisions 2 and 3.  
The appropriation shall not lapse, but shall remain available 
until expended.  
    Subd. 2.  $58,500,000 (a) $59,309,000 or so much thereof as 
is needed, is available for expenditure for grants to political 
subdivisions for construction and reconstruction of key bridges 
on highways, streets and roads under their jurisdiction.  The 
grants shall not exceed the following aggregate amounts: 
    (1) To counties.... $16,220,000 $16,720,000 
    (2) To home rule charter and statutory cities.... 
$2,620,000 $2,729,000 
    (3) To towns.... $23,160,000 $23,360,000 
    (b) Grants under clauses (1) to (3) may be used by 
political subdivisions to match federal-aid grants for 
construction and reconstruction of key bridges under their 
jurisdictions.  Additional grants may be made in an aggregate 
amount not to exceed $16,500,000 to the political subdivisions 
to match federal-aid grants for construction and reconstruction 
of key bridges under their jurisdiction.  Appropriations made in 
subdivisions 1, 2, or and 3 may also be used for the following 
purposes: 
    (1) The costs of abandoning an existing bridge that is 
deficient and is in need of replacement, but where no 
replacement will be made. 
    (2) The costs of constructing a road or street that would 
facilitate the abandonment of an existing bridge determined to 
be deficient.  The construction of the road or street must be 
judged to be more cost efficient than the reconstruction or 
replacement of the existing bridge. 
    Subd. 3.  An additional amount not to exceed 
$1,500,000 $691,000 is available for grants for preliminary 
engineering and environmental studies pursuant to section 3 
Minnesota Statutes, section 174.50, subdivision 6a. 
    Sec. 57.  Laws 1989, chapter 329, article 5, section 21, 
subdivision 8, is amended to read: 
    Subd. 8.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] For the 
maximum effort school loan fund: 
    $855,500 ....... 1990 
    $2,100,000 $3,082,000 ..... 1991 
    These appropriations shall be placed in the loan repayment 
account of the maximum effort school loan fund for the payment 
of the principal and interest on school loan bonds, as provided 
in Minnesota Statutes, section 124.46, to the extent that money 
in the fund is not sufficient to pay when due the full amount of 
principal and interest due on school loan bonds.  The purpose of 
these appropriations is to ensure that sufficient money is 
available in the fund to prevent a statewide property tax levy 
as would otherwise be required pursuant to Minnesota Statutes, 
section 124.46, subdivision 3.  Notwithstanding the provisions 
of Minnesota Statutes, section 124.39, subdivision 5, any amount 
of the appropriation made in this section which is not needed to 
pay when due the principal and interest due on school loan bonds 
shall not be transferred to the debt service loan account of the 
maximum effort school loan fund but instead shall cancel and 
revert to the general fund. 
    The 1990 appropriation does not cancel and is available 
until July 1, 1991. 
    Sec. 58.  [JOINT LEGISLATIVE STUDY.] 
    Subdivision 1.  [MEMBERSHIP.] A joint legislative study on 
capital needs shall be conducted.  The study shall be overseen 
by a panel composed of the following: 
    (1) four members of the senate, two of whom must be members 
of the majority caucus and two of whom must be members of the 
minority caucus, appointed by the subcommittee on committees of 
the committee on rules and administration; 
    (2) four members of the house of representatives, two of 
whom must be members of the majority caucus and two of whom must 
be members of the minority caucus, appointed by the speaker; 
    (3) the commissioner of finance or the commissioner's 
designee; and 
    (4) the commissioner of administration or the 
commissioner's designee. 
    Subd. 2.  [DUTIES.] The study shall consider ways to 
improve the process for planning and funding state capital 
projects.  The study shall consider: 
    (1) current and future needs for new state buildings; 
    (2) repair and maintenance needs of existing buildings; 
    (3) existing and future use of leased office space or 
buildings; 
    (4) all matters concerning the maintenance, remodeling, and 
furnishing of the governor's residence; 
    (5) other public capital improvements; 
    (6) methods of improving the capital budget process; 
    (7) including operating costs for all recommended building 
or remodeling projects in capital budget requests; 
    (8) establishing and continually maintaining a long-term 
plan for state building needs and capital improvements; 
    (9) examining alternative methods of planning state capital 
improvements; 
    (10) examining alternative methods of financing state 
capital improvements; 
    (11) determining the kinds and scope of projects that 
should be funded with bond proceeds; and 
    (12) whether a building commission should be established. 
    Subd. 3.  [REPORT.] The findings and recommendations of the 
study shall be reported to the house appropriations and senate 
finance committees by February 1, 1991. 
    Sec. 59.  [REPEALER.] 
    Minnesota Statutes 1988, sections 16A.651; 16A.661, 
subdivision 6; and 116P.04, subdivision 2, are repealed. 
    Sec. 60.  [EFFECTIVE DATE.] 
    This article is effective the day after its final enactment.
Section 51 applies to plans and specifications prepared after 
that date.  

                                ARTICLE 2 
    Section 1.  Minnesota Statutes 1988, section 16B.16, is 
amended by adding a subdivision to read: 
    Subd. 3.  [LEGISLATIVE INTENT.] The purpose of the energy 
efficiency installment purchase contracts authorized by this 
section is to save money on energy costs.  The entire cost of 
the contract must be a percentage of the resultant savings in 
energy costs.  Neither the state nor any state agency is liable 
to make payments on the contract except to the extent that there 
are savings in energy costs that must be shared with other 
parties to the contract.  The legislature intends not to 
appropriate any more money to pay for energy costs as a result 
of these contracts than would be payable without them. 
    Sec. 2.  Minnesota Statutes 1988, section 41A.03, 
subdivision 5, is amended to read: 
    Subd. 5.  [LIMITATION ON LIABILITY.] The liability of the 
state for loan guaranties or bonds authorized under this chapter 
is limited to the amount of funds appropriated to the guaranty 
fund pursuant to section 41A.06.  The legislature intends not to 
appropriate money from the general fund to the guaranty fund, 
other than the sales and use taxes from a project as provided 
for in section 41A.06, subdivision 4.  The loan guaranties or 
bonds are not a general obligation or debt of the state.  
    Sec. 3.  Minnesota Statutes 1988, section 136.31, 
subdivision 1, is amended to read: 
    Subdivision 1.  All references in sections 136.31 to 136.38 
to the state university board shall be deemed and construed to 
include any successor thereof created or established by law.  
The state university board is hereby authorized to do the 
following: 
    (a) acquire by purchase or otherwise, construct, complete, 
remodel, equip, operate, control, and manage residence halls, 
dormitories, dining halls, student union buildings and any other 
similar revenue-producing buildings of such type and character 
as said board shall from time to time find necessary for the 
good and benefit of any of the state universities under the 
jurisdiction of said board, and for that purpose may acquire 
property of any and every kind and description, whether real, 
personal or mixed, by gift, purchase or otherwise; provided that 
no contract for the construction of any building shall be 
entered into until financing therefor has been approved by the 
legislature; 
    (b) maintain and operate any such buildings or structures 
and charge for the use thereof, and carry on such activities, as 
are commonly conducted in connection with any such buildings or 
structures; 
    (c) enter into contracts touching in any manner or any 
matter within the objects and purposes of sections 136.31 to 
136.38; 
    (d) acquire building sites and buildings or structures by 
gift, purchase or otherwise and pledge the revenues thereof for 
the payment of any bonds issued for such purpose as provided in 
sections 136.31 to 136.38; 
    (e) borrow money and issue and sell bonds in such amount or 
amounts as the legislature shall authorize for the purpose of 
acquiring, constructing, completing, remodeling, or equipping 
any such buildings or structures, and acquiring sites therefor, 
and refund and refinance the same from time to time by the 
issuance and sale of refunding bonds as often as it shall in the 
board's judgment be advantageous to the public interest so to 
do.  All such bonds shall be sold and issued by said board in 
the manner and upon the terms and conditions provided by chapter 
475, except as otherwise provided in this section.  Such bonds 
shall be payable solely from and secured by an irrevocable 
pledge of the revenues to be derived from the operation of any 
such buildings or structures acquired, constructed, completed, 
remodeled, or equipped in whole or in part with the proceeds of 
such bonds and in addition thereto from such other income and 
revenues described in section 136.33, clause (a) as said board 
by resolution shall specify, and notwithstanding this limitation 
all bonds issued hereunder shall have the qualities of 
negotiable instruments under the laws of this state.  The 
legislature intends not to appropriate money from the general 
fund to pay for these bonds. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
136A.176, is amended to read: 
    136A.176 [BONDS NOT STATE OBLIGATIONS.] 
    Bonds issued under authority of sections 136A.15 to 
136A.179 do not, and shall state that they do not, represent or 
constitute a debt or pledge of the faith and credit of the 
state, grant to the owners or holders thereof any right to have 
the state levy any taxes or appropriate any funds for the 
payment of the principal thereof or interest thereon.  Such 
bonds are payable and shall state that they are payable solely 
from the rentals, revenues, and other income, charges, and 
moneys as are pledged for their payment in accordance with the 
bond proceedings.  The legislature intends not to appropriate 
money from the general fund to pay for these bonds. 
    Sec. 5.  Minnesota Statutes 1988, section 136A.35, is 
amended to read: 
    136A.35 [BONDS ARE NOT STATE OBLIGATION.] 
    Bonds issued under authority of sections 136A.25 to 136A.42 
do not, and shall state that they do not, represent or 
constitute a debt or pledge of the faith and credit of the 
state, grant to the owners or holders thereof any right to have 
the state levy any taxes or appropriate any funds for the 
payment of the principal thereof or interest thereon.  Such 
bonds are payable and shall state that they are payable solely 
from the rentals, revenues, and other income, charges, and 
moneys as are pledged for their payment in accordance with the 
bond proceedings.  The legislature intends not to appropriate 
money from the general fund to pay for these bonds. 
    Sec. 6.  Minnesota Statutes 1989 Supplement, section 
298.2211, subdivision 4, is amended to read: 
    Subd. 4.  [OBLIGATIONS NOT STATE DEBT.] Bonds and other 
obligations issued by the commissioner pursuant to this section, 
along with all related documents, are not general obligations of 
the state of Minnesota and are not subject to section 16B.06.  
The full faith and credit and taxing powers of the state are not 
and may not be pledged for the payment of these bonds or other 
obligations, and no person has the right to compel the levy of 
any state tax for their payment or to compel the appropriation 
of any moneys of the state for their payment except as 
specifically provided herein.  These bonds and obligations shall 
be payable solely from the property and moneys derived by the 
commissioner pursuant to the authority granted in this section 
that the commissioner pledges to their payment.  The legislature 
intends not to appropriate money from the general fund to pay 
for these bonds or other obligations.  All these bonds or other 
obligations must contain the provisions of this subdivision or 
words to the same effect on their face.  
    Sec. 7.  [EFFECTIVE DATE.] 
    This article is effective July 1, 1990. 
    Presented to the governor April 28, 1990 
    Signed by the governor May 8, 1990, 3:09 p.m.

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