1.1                          A bill for an act 
  1.2             relating to public administration; authorizing 
  1.3             spending for public purposes; authorizing spending to 
  1.4             acquire and to better public land and buildings and 
  1.5             other public improvements of a capital nature; 
  1.6             authorizing certain improvements and transfers between 
  1.7             accounts; providing a procedure for political 
  1.8             subdivisions' request for capital assistance; making 
  1.9             technical corrections; amending earlier 
  1.10            authorizations; reauthorizing a project; authorizing 
  1.11            bonds; providing for certain public pension 
  1.12            associations' facilities; providing for storage and 
  1.13            retention of certain documents; authorizing certain 
  1.14            easements; providing for certain port authority leases 
  1.15            or management contracts; requesting an investigation 
  1.16            and report; authorizing a certain college project; 
  1.17            appropriating money with certain conditions and 
  1.18            directions; amending Minnesota Statutes 1998, sections 
  1.19            16A.69, subdivision 2; 16B.30; 136F.36, by adding a 
  1.20            subdivision; 136F.60, by adding a subdivision; 353.03, 
  1.21            subdivision 4; 354.06, subdivision 7; and 457A.04, by 
  1.22            adding a subdivision; Laws 1998, chapter 404, sections 
  1.23            3, subdivision 17; 5, subdivision 4; 7, subdivisions 
  1.24            23 and 26; 13, subdivision 12; and 27, subdivisions 1 
  1.25            and 2; proposing coding for new law in Minnesota 
  1.26            Statutes, chapters 16A; and 356. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28  Section 1.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
  1.29     The sums in the column under "APPROPRIATIONS" are 
  1.30  appropriated with certain conditions and directions from the 
  1.31  bond proceeds fund, or other named fund, to the state agencies 
  1.32  or officials indicated, to be spent for public purposes 
  1.33  including to acquire and to better public land and buildings and 
  1.34  other public improvements of a capital nature, as specified in 
  1.35  this act. 
  1.36                              SUMMARY 
  2.1   Minnesota State Colleges and
  2.2   Universities                                         $6,350,000
  2.3   Natural Resources                                    16,677,000
  2.4   Office of Environmental Assistance                    3,000,000
  2.5   Trade and Economic Development                        4,595,000
  2.6   Public Facilities Authority                           7,200,000
  2.7   Administration                                        5,950,000
  2.8   Transportation                                          440,000
  2.9   Corrections                                           1,785,000
  2.10  Bond Sale Expenses                                       43,000
  2.11  Cancellations                                       (30,400,000)
  2.12  TOTAL                                            $   46,040,000
  2.13  Bond Proceeds Fund                                   45,600,000
  2.14  Transportation Fund                                     440,000
  2.15                                                    APPROPRIATIONS
  2.16                                                    $             
  2.17  Sec. 2.  MINNESOTA STATE COLLEGES
  2.18  AND UNIVERSITIES 
  2.19  Subdivision 1.  To the board of 
  2.20  trustees of the Minnesota state colleges 
  2.21  and universities for the purposes
  2.22  specified in this section                             6,350,000
  2.23  Subd. 2.  Metropolitan State
  2.24  University                                              250,000
  2.25  For strategic land acquisition in the 
  2.26  area adjacent to the St. Paul campus. 
  2.27  Subd. 3.  Winona State University                     6,100,000
  2.28  To replace or renovate the boiler 
  2.29  system at Winona State University. 
  2.30  Subd. 4.  Higher Education Asset
  2.31  Preservation and Replacement (HEAPR) 
  2.32  (a) The board of trustees must spend 
  2.33  the amounts listed for the purposes 
  2.34  stated in this subdivision as provided in 
  2.35  Minnesota Statutes, section 135A.046, 
  2.36  subdivision 3, from money appropriated 
  2.37  for the purpose in Laws 1998, chapter 404, 
  2.38  section 3, subdivision 2. 
  2.39  (b) $400,000 is for the upgrade and 
  2.40  replacement of underground and
  2.41  aboveground storage tanks.
  2.42  (c) $1,090,000 is to demolish 
  2.43  structures, eliminate blight, and 
  2.44  provide security lighting on certain 
  2.45  recently acquired land at Moorhead 
  2.46  state university.  
  3.1   (d) $1,250,000 is for improvements of a 
  3.2   capital nature to the heating, 
  3.3   ventilation, and air conditioning 
  3.4   system at Ridgewater Community and 
  3.5   Technical College, Hutchinson. 
  3.6   Sec. 3.  NATURAL RESOURCES                           
  3.7   Subdivision 1.  To the commissioner of
  3.8   natural resources for the purposes specified
  3.9   in this section                                      16,677,000
  3.10  Subd. 2.  East Grand Forks                           15,877,000
  3.11  For dike construction for the East 
  3.12  Grand Forks flood damage reduction 
  3.13  program.  This grant does not require a 
  3.14  local match. 
  3.15  Subd. 3.  Warren                                        800,000
  3.16  For dike construction for the flood 
  3.17  damage reduction program for the city 
  3.18  of Warren.  This grant does not require 
  3.19  a local match. 
  3.20  Sec. 4.  OFFICE OF ENVIRONMENTAL ASSISTANCE           3,000,000 
  3.21  To the director of the office of 
  3.22  environmental assistance for a grant 
  3.23  under Minnesota Statutes, chapter 115A, 
  3.24  not to exceed $3,000,000, for the 
  3.25  retrofit and reconstruction of a solid 
  3.26  waste resource recovery facility 
  3.27  located in the city of Perham that 
  3.28  serves a seven-county area.  The 
  3.29  appropriation is available until June 
  3.30  30, 2001. 
  3.31  Sec. 5.  TRADE AND ECONOMIC DEVELOPMENT
  3.32  Subdivision 1.  To the commissioner of 
  3.33  trade and economic development for the  
  3.34  purposes specified in this section                    4,595,000 
  3.35  Subd. 2.  St. Paul Hoyt Avenue Area                     595,000 
  3.36  For a grant to the city of St. Paul to 
  3.37  design and construct a day basin 
  3.38  holding pond for flood mitigation in 
  3.39  the Hoyt Avenue area of St. Paul. 
  3.40  Subd. 3.  Phalen Corridor                             4,000,000 
  3.41  For a grant to the city of St. Paul 
  3.42  Park authority to acquire a roadway 
  3.43  right-of-way in the Phalen corridor.  
  3.44  The city must consider the potential 
  3.45  for connection with an adjoining 
  3.46  transit hub and any connector roads. 
  3.47  Sec. 6.  PUBLIC FACILITIES AUTHORITY                  7,200,000
  3.48  To the public facilities authority for 
  3.49  state matching money for federal grants 
  3.50  to capitalize the drinking water 
  3.51  revolving fund and water pollution 
  3.52  control revolving fund under Minnesota 
  3.53  Statutes, sections 446A.07 and 446A.081.
  3.54  Sec. 7.  ADMINISTRATION
  4.1   Subdivision 1.  To the commissioner of 
  4.2   administration for the purposes specified 
  4.3   in this section                                       5,950,000
  4.4   Subd. 2.  Capital Asset Preservation
  4.5   and Replacement (CAPRA)                               3,000,000
  4.6   To be spent in accordance with 
  4.7   Minnesota Statutes, section 16A.632. 
  4.8   None of this appropriation may be used 
  4.9   for renovation of the Minnesota 
  4.10  Veterans Home - Luverne campus. 
  4.11  Of this amount, $190,000 is for capital 
  4.12  repair and betterment of roofs on 
  4.13  buildings 1, 2, and 4, at the Hastings 
  4.14  Veterans Home.  This amount is 
  4.15  available when the commissioner of 
  4.16  finance determines that the Veterans 
  4.17  Home Board is in compliance with 
  4.18  Minnesota Statutes, sections 16A.695 
  4.19  and 198.31, with respect to the 
  4.20  Hastings Veterans Home. 
  4.21  Subd. 3.  Predesign and Design Grant                  2,800,000
  4.22  For a grant to the county of Itasca for 
  4.23  predesign and design of public 
  4.24  infrastructure improvements including 
  4.25  railroad access and natural gas 
  4.26  right-of-way and pipeline, public 
  4.27  highway improvements, and freshwater 
  4.28  wells and wastewater treatment 
  4.29  facilities and pipelines, all in 
  4.30  connection with the construction of a 
  4.31  new steel mill. 
  4.32  Subd. 4.  World War II      
  4.33  Veterans Memorial                                       150,000 
  4.34  For design and architectural drawings 
  4.35  for a World War II veterans memorial.  
  4.36  The design is subject to approval by 
  4.37  the capitol area architectural and 
  4.38  planning board.  The commissioner of 
  4.39  veterans affairs shall convene an 
  4.40  advisory group, including members of 
  4.41  veterans organizations to review and 
  4.42  make recommendations about the design 
  4.43  of the memorial. 
  4.44  Sec. 8.  TRANSPORTATION                                 440,000 
  4.45  Up to $440,000, not exceeding 80 
  4.46  percent of project cost, is 
  4.47  appropriated to the commissioner of 
  4.48  transportation from the transportation 
  4.49  fund for a loan at four percent annual 
  4.50  interest to the city of Brooklyn Park 
  4.51  for the purpose of constructing a 
  4.52  pedestrian bridge across trunk highway 
  4.53  No. 252.  This appropriation is only 
  4.54  available if the project qualifies for 
  4.55  federal TEA-21 funding.  The loan shall 
  4.56  be repaid to the commissioner of 
  4.57  finance for return to the debt service 
  4.58  fund at the time of Federal Highway 
  4.59  Administration reimbursement to the 
  4.60  city. 
  5.1   Sec. 9.  CORRECTIONS                                  1,785,000
  5.2   To the commissioner of administration 
  5.3   for design for renovations of a capital 
  5.4   nature to the storm and sanitary sewer 
  5.5   lines at the correctional facility at 
  5.6   Faribault and for making emergency 
  5.7   capital repairs to the system. 
  5.8   Sec. 10.  BOND SALE EXPENSES                             43,000
  5.9   To the commissioner of finance for bond 
  5.10  sale expenses under Minnesota Statutes, 
  5.11  section 16A.641, subdivision 8.  This 
  5.12  appropriation is from the bond proceeds 
  5.13  fund. 
  5.14  Sec. 11.  BOND SALE SCHEDULE   
  5.15  The commissioner of finance shall 
  5.16  schedule the sale of state general 
  5.17  obligation bonds so that, during the 
  5.18  biennium ending June 30, 2001, no more 
  5.19  than $529,178,000 will need to be 
  5.20  transferred from the general fund to 
  5.21  the state bond fund to pay principal 
  5.22  and interest due and to become due on 
  5.23  outstanding state general obligation 
  5.24  bonds.  During the biennium, before 
  5.25  each sale of state general obligation 
  5.26  bonds, the commissioner of finance 
  5.27  shall calculate the amount of debt 
  5.28  service payments needed on bonds 
  5.29  previously issued and shall estimate 
  5.30  the amount of debt service payments 
  5.31  that will be needed on the bonds 
  5.32  scheduled to be sold.  The commissioner 
  5.33  shall adjust the amount of bonds 
  5.34  scheduled to be sold so as to remain 
  5.35  within the limit set by this section.  
  5.36  The amount needed to make the debt 
  5.37  service payments is appropriated from 
  5.38  the general fund as provided in 
  5.39  Minnesota Statutes, section 16A.641. 
  5.40     Sec. 12.  [BOND SALE AUTHORIZATIONS.] 
  5.41     Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
  5.42  appropriated in this act from the bond proceeds fund, the 
  5.43  commissioner of finance, on request of the governor, shall sell 
  5.44  and issue bonds of the state in an amount up to $45,600,000 in 
  5.45  the manner, upon the terms, and with the effect prescribed by 
  5.46  Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  5.47  Minnesota Constitution, article XI, sections 4 to 7. 
  5.48     Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
  5.49  appropriated in this act from the transportation fund, the 
  5.50  commissioner of finance, on request of the governor, shall sell 
  5.51  and issue bonds of the state in an amount up to $440,000 in the 
  5.52  manner, upon the terms, and with the effect prescribed by 
  6.1   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  6.2   Minnesota Constitution, article XI, sections 4 to 7.  The 
  6.3   proceeds of the bonds, except accrued interest and any premium 
  6.4   received on the sale of the bonds, must be credited to a bond 
  6.5   proceeds account in the state transportation fund. 
  6.6      Sec. 13.  Minnesota Statutes 1998, section 16A.69, 
  6.7   subdivision 2, is amended to read: 
  6.8      Subd. 2.  [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of 
  6.9   final contracts for the completion of a project for construction 
  6.10  or other permanent improvement, or upon the abandonment of the 
  6.11  project, the agency to whom the appropriation was made may 
  6.12  transfer the unencumbered balance in the project account to 
  6.13  another project enumerated in the same section of that 
  6.14  appropriation act, or may transfer unencumbered balances from 
  6.15  agency operating funds.  The transfer must be made only to cover 
  6.16  bids for the other project that were higher than was estimated 
  6.17  when the appropriation for the other project was made and not to 
  6.18  cover an expansion of the other project.  The money transferred 
  6.19  under this section is appropriated for the purposes for which 
  6.20  transferred.  For transfers for technical colleges by the board 
  6.21  of trustees of the Minnesota state colleges and universities, 
  6.22  the total cost of both projects and the required local share for 
  6.23  both projects are adjusted accordingly.  The agency proposing a 
  6.24  transfer shall report to obtain approval from the commissioner 
  6.25  of finance and the chair of the senate finance committee and the 
  6.26  chair of the house of representatives ways and means committee 
  6.27  before the transfer is made under this subdivision. 
  6.28     Sec. 14.  [16A.86] [CAPITAL PROJECT GRANTS TO POLITICAL 
  6.29  SUBDIVISIONS.] 
  6.30     Subdivision 1.  [PROJECTS COVERED.] The only capital 
  6.31  improvement projects covered by this section are those not 
  6.32  covered by another state program of assistance to political 
  6.33  subdivisions. 
  6.34     Subd. 2.  [BUDGET REQUEST.] A political subdivision that 
  6.35  requests an appropriation of state general funds or state 
  6.36  general obligation bond proceeds for a local capital improvement 
  7.1   project is encouraged to submit the request to the commissioner 
  7.2   of finance by June 1 of an odd-numbered year to ensure its full 
  7.3   consideration.  The request must be submitted in the form and 
  7.4   with the supporting documentation required by the commissioner 
  7.5   of finance.  All requests timely received by the commissioner 
  7.6   must be forwarded to the legislature, along with agency 
  7.7   requests, by the deadline established in section 16A.11, 
  7.8   subdivision 1. 
  7.9      Subd. 3.  [EVALUATION.] (a) The commissioner shall evaluate 
  7.10  all requests from political subdivisions for state assistance 
  7.11  based on the following criteria: 
  7.12     (1) the political subdivision has provided for local, 
  7.13  private, and user financing for the project to the maximum 
  7.14  extent possible; 
  7.15     (2) the project helps fulfill an important state mission; 
  7.16     (3) the project is of regional or statewide significance; 
  7.17     (4) the project will not require new or any additional 
  7.18  state operating subsidies; 
  7.19     (5) the project will not expand the state's role in a new 
  7.20  policy area; 
  7.21     (6) state funding for the project will not create 
  7.22  significant inequities among local jurisdictions; 
  7.23     (7) the political subdivision has presented a credible plan 
  7.24  for how ongoing maintenance of the project will be funded over 
  7.25  its estimated life; 
  7.26     (8) the project will not compete with other facilities so 
  7.27  that the other facilities lose a significant number of users to 
  7.28  the new project; and 
  7.29     (9) the governing bodies of those political subdivisions 
  7.30  primarily benefiting from the project have passed resolutions in 
  7.31  support of the project.  
  7.32     (b) The commissioner's evaluation of each request, 
  7.33  including whether it meets each of the criteria in paragraph 
  7.34  (a), must be submitted to the legislature along with the 
  7.35  governor's recommendations under section 16A.11, subdivision 1, 
  7.36  whether or not the governor recommends that the request be 
  8.1   funded.  
  8.2      Subd. 4.  [FUNDING.] (a) If a project covered by this 
  8.3   section is funded, the amount of funding must be no more than 
  8.4   half the total cost of the project, including predesign, design, 
  8.5   construction, furnishings, and equipment. 
  8.6      (b) Notwithstanding paragraph (a), greater than 50 percent 
  8.7   funding of projects that are deemed needed as a result of a 
  8.8   disaster or to prevent a disaster, or that meet the criteria in 
  8.9   subdivision 3, paragraph (a), but are located in political 
  8.10  subdivisions with very low average net tax capacities is 
  8.11  permitted. 
  8.12     (c) This section does not prevent the governor from 
  8.13  recommending, or the legislature from funding, projects that do 
  8.14  not meet the criteria in subdivision 3 or 4 when the governor or 
  8.15  the legislature determines that there is a compelling reason for 
  8.16  the recommendation or funding. 
  8.17     Sec. 15.  Minnesota Statutes 1998, section 16B.30, is 
  8.18  amended to read: 
  8.19     16B.30 [GENERAL AUTHORITY.] 
  8.20     (a) Subject to other provisions in this chapter, the 
  8.21  commissioner shall supervise and control the making of all 
  8.22  contracts for the construction of buildings and for other 
  8.23  capital improvements to state buildings and structures, other 
  8.24  than buildings and structures under the control of the board of 
  8.25  trustees of the Minnesota state colleges and universities.  
  8.26  Except as provided in paragraph paragraphs (b) and (c), a state 
  8.27  agency may not undertake improvements of a capital nature 
  8.28  without specific legislative authority. 
  8.29     (b) Specific legislative authority is not required for 
  8.30  repairs or minor capital projects financed with operating 
  8.31  appropriations or agency receipts that: 
  8.32     (1) are undertaken for asset preservation or code 
  8.33  compliance purposes; or 
  8.34     (2) do not materially increase the net square footage of a 
  8.35  facility; and in either case 
  8.36     (3) do not materially increase the cost of agency programs. 
  9.1      (c) Unless the commissioner determines that an urgency 
  9.2   exists, the commissioner of an agency undertaking a project with 
  9.3   a cost in excess of $50,000 pursuant to this paragraph (b) shall 
  9.4   notify the chairs of the senate finance committee, the house 
  9.5   capital investment committee, the house ways and means 
  9.6   committee, the appropriate house and senate finance divisions, 
  9.7   and the director of the legislative coordinating commission 
  9.8   prior to incurring any contractual obligation with regard to the 
  9.9   project.  Any agency undertaking any project pursuant to this 
  9.10  paragraph during fiscal year 1999 must report all such projects 
  9.11  to the legislature by January 1, 2000. 
  9.12     Sec. 16.  Minnesota Statutes 1998, section 136F.36, is 
  9.13  amended by adding a subdivision to read: 
  9.14     Subd. 4.  [STORAGE AND RETENTION OF DOCUMENTS.] 
  9.15  Notwithstanding section 16A.58, the board may store and retain 
  9.16  at the respective technical college original documents from 
  9.17  carpentry program transactions, including but not limited to 
  9.18  deeds, abstracts of title, and certificates of title. 
  9.19     Sec. 17.  Minnesota Statutes 1998, section 136F.60, is 
  9.20  amended by adding a subdivision to read: 
  9.21     Subd. 3.  [EASEMENTS.] The board may grant permanent or 
  9.22  temporary easements over, under, or across any land under its 
  9.23  jurisdiction for reasonable purposes determined by the board.  
  9.24     Sec. 18.  Minnesota Statutes 1998, section 353.03, 
  9.25  subdivision 4, is amended to read: 
  9.26     Subd. 4.  [OFFICES.] The commissioner of 
  9.27  administration shall may make provision for suitable office 
  9.28  space in the state capitol or other state office buildings, or 
  9.29  at such other location in St. Paul as is determined by the 
  9.30  commissioner for the use of the board of trustees and its 
  9.31  executive director.  The commissioner shall give the board at 
  9.32  least four months notice for any proposed removal from their 
  9.33  present location.  Any and all rental charges shall be paid by 
  9.34  the trustees from the public employees retirement fund. 
  9.35     Sec. 19.  Minnesota Statutes 1998, section 354.06, 
  9.36  subdivision 7, is amended to read: 
 10.1      Subd. 7.  [OFFICES.] A suitable office shall may be 
 10.2   provided by the state through the proper officer for the use of 
 10.3   the board and its executive director. 
 10.4      Sec. 20.  [356.89] [PUBLIC PENSION FACILITIES.] 
 10.5      Subdivision 1.  [BUILDING; RELATED FACILITIES.] The board 
 10.6   of directors of the Minnesota state retirement system, the board 
 10.7   of trustees of the public employees retirement association, and 
 10.8   the board of trustees of the teachers retirement association, 
 10.9   are authorized to expend or otherwise pledge pension funds or 
 10.10  the proceeds of revenue bonds as provided in subdivision 3 for 
 10.11  the common ownership, operation, and improvement of a building 
 10.12  and related facilities for the administration of their public 
 10.13  pension systems.  This authority includes the authority to 
 10.14  purchase or lease land and facilities and the authority to 
 10.15  design, construct, furnish, improve, and equip a building and 
 10.16  related parking facilities to accommodate employees and 
 10.17  visitors.  The boards' planning, selection, design, and building 
 10.18  of facilities are not subject to the capital improvements 
 10.19  provisions of sections 16B.30 to 16B.33.  The competitive 
 10.20  acquisition process set forth in chapter 16C does not apply 
 10.21  provided the process set forth in subdivision 2 is followed.  
 10.22  Notwithstanding that no appropriation is made, the requirements 
 10.23  of section 16B.335 apply to this project.  The boards must 
 10.24  obtain approval of the chair of the house ways and means 
 10.25  committee and the chair of the senate state government finance 
 10.26  committee to construct, lease, or acquire new space for the 
 10.27  administration of their pension systems. 
 10.28     Subd. 2.  [CONTRACTING PROCEDURES.] (a) The boards may 
 10.29  enter into a contract for facilities with a contractor to 
 10.30  furnish the architectural, engineering, and related services as 
 10.31  well as the labor, materials, supplies, equipment, and related 
 10.32  construction services on the basis of a request for 
 10.33  qualifications and competitive responses received through a 
 10.34  request for proposals process which must include the items 
 10.35  listed in paragraphs (b) to (i). 
 10.36     (b) Prior to issuing a request for qualifications and a 
 11.1   request for proposals, the boards, with the assistance of the 
 11.2   department of administration, shall prepare performance criteria 
 11.3   and specifications which shall include: 
 11.4      (1) a general floor plan or layout indicating the general 
 11.5   dimensions of the public building and space requirements; 
 11.6      (2) design criteria for the exterior and site area; 
 11.7      (3) performance specifications for all building systems and 
 11.8   components to assure quality and cost efficiencies; 
 11.9      (4) conceptual floor plans for systems space; 
 11.10     (5) preferred types of interior finishes, styles of 
 11.11  windows, lighting and outlets, doors, and features such as 
 11.12  built-in counters and telephone wiring; 
 11.13     (6) mechanical and electrical requirements; 
 11.14     (7) special interior features required; and 
 11.15     (8) completion schedule. 
 11.16     (c) The boards shall first solicit statements of 
 11.17  qualifications from eligible contractors and select more than 
 11.18  one qualified contractor based upon experience, technical 
 11.19  competence, past performance, capability to perform, and other 
 11.20  appropriate facts.  Contractors selected under this process 
 11.21  shall be, employ, or have as a partner, member, coventurer, or 
 11.22  subcontractor, persons licensed and registered under chapter 326 
 11.23  to provide the services required to design and complete the 
 11.24  project.  The boards do not have to select any of the 
 11.25  respondents if none reasonably fulfill the criteria set forth 
 11.26  within. 
 11.27     (d) The contractors selected shall be asked to respond to a 
 11.28  request for proposals.  Responses must include site plans, 
 11.29  design concept, elevation, statement of material to be used, 
 11.30  floor layouts, a detailed development budget, and a total cost 
 11.31  to complete the project.  The proposal must indicate that the 
 11.32  contractor obtained at least two proposals from subcontractors 
 11.33  for each item of work and must set forth how the subcontractors 
 11.34  were selected.  The boards shall evaluate the proposals based 
 11.35  upon design, cost, quality, aesthetics, and the best overall 
 11.36  value to the state pension funds.  The board need not select any 
 12.1   of the proposals submitted and reserves the right to reject any 
 12.2   and all proposals, and may terminate the process or revise the 
 12.3   request for proposals and solicit new proposals if the boards 
 12.4   determine that the best interests of the pension funds would be 
 12.5   better served by doing so.  Proposals submitted shall constitute 
 12.6   nonpublic data until the contract is awarded. 
 12.7      (e) The contract selected must comply with section 574.26 
 12.8   to 574.261.  Prior to the execution of a final contract, the 
 12.9   contractor selected shall certify a firm construction price and 
 12.10  completion date. 
 12.11     (f) The boards may consider building sites in the city of 
 12.12  St. Paul and surrounding suburbs. 
 12.13     (g) Any land, building, or facility leased, constructed, or 
 12.14  acquired and any leasehold interest acquired under this section 
 12.15  shall be held in common ownership in the name of the three 
 12.16  retirement systems as tenants in common.  Each retirement system 
 12.17  fund shall consider its interest as a fixed asset of its pension 
 12.18  fund in accordance with governmental accounting standards. 
 12.19     (h) The boards may lease to another governmental 
 12.20  subdivision any portion of the funds' building and lands which 
 12.21  is not required for their direct use upon such terms and 
 12.22  conditions as they deem to be in the best interest of the 
 12.23  pension funds.  Any income accruing from such rentals shall be 
 12.24  separately accounted for and utilized to offset ongoing 
 12.25  administrative expenses and any excess shall be carried forward 
 12.26  for future administrative expenses.  The boards are also 
 12.27  authorized to enter into lease agreements for the establishment 
 12.28  of satellite offices should the boards find such offices to be 
 12.29  necessary in order to assure their members reasonable access to 
 12.30  their services.  The boards also have the authority to request 
 12.31  the commissioner of administration to lease any portion of their 
 12.32  building not required for their direct use pursuant to the 
 12.33  commissioner's authorities under section 16B.24. 
 12.34     (i) The boards shall formulate and adopt a written working 
 12.35  agreement which shall set forth the nature of each retirement 
 12.36  system's ownership interest, the duties and obligations of each 
 13.1   system towards the construction, operation, and maintenance 
 13.2   costs of their facilities, and the identification of one 
 13.3   retirement fund to serve as manager for operating and 
 13.4   maintenance purposes.  The boards may contract with independent 
 13.5   third parties for maintenance-related activities, services, and 
 13.6   supplies, and may utilize the services of the department of 
 13.7   administration where economically feasible to do so.  In the 
 13.8   event the boards cannot agree or resolve a dispute which relates 
 13.9   to operations or maintenance of the facilities, they may request 
 13.10  the commissioner of administration to appoint a representative 
 13.11  from the department's real estate management division to serve 
 13.12  as arbitrator of the dispute with authority to issue a written 
 13.13  resolution of the dispute. 
 13.14     Subd. 3.  [REVENUE BONDS AUTHORIZED.] The boards, or any of 
 13.15  them, may issue revenue bonds in the principal amount necessary, 
 13.16  in the opinion of the boards, to achieve the purposes described 
 13.17  in subdivisions 1 and 2; to pay issuance costs and interest 
 13.18  costs; and to establish necessary reserves to secure the bonds.  
 13.19  The boards may issue bonds for the purpose of refunding bonds 
 13.20  issued under this subdivision. 
 13.21     Subd. 4.  [PROCEDURE.] The bonds authorized in subdivision 
 13.22  3 must be sold, issued, and secured in the manner provided in 
 13.23  chapter 475 for bonds payable solely from revenues, and the 
 13.24  boards have the same powers and duties as a municipality and its 
 13.25  governing body in issuing bonds under that chapter.  The bonds 
 13.26  may be sold at any price and at public or private sale as 
 13.27  determined by the boards.  The bonds may be sold in one or more 
 13.28  series.  Different series may be backed by different revenue 
 13.29  sources.  No election is required. 
 13.30     Subd. 5.  [NONLIABILITY OF STATE.] The state of Minnesota 
 13.31  is not liable on bonds of the boards and the bonds are not a 
 13.32  general or moral obligation of the state. 
 13.33     Subd. 6.  [NONLIABILITY OF INDIVIDUALS.] Neither the 
 13.34  members of the boards nor any person executing the bonds on 
 13.35  behalf of the boards shall be personally liable on the bonds or 
 13.36  subject to any personal liability or accountability by reason of 
 14.1   executing them. 
 14.2      Sec. 21.  Minnesota Statutes 1998, section 457A.04, is 
 14.3   amended by adding a subdivision to read: 
 14.4      Subd. 6.  [USE AGREEMENTS.] Notwithstanding section 
 14.5   16A.695, for leases or management contracts entered into with 
 14.6   respect to property acquired or bettered with the proceeds of 
 14.7   state general obligations bonds, (1) a port authority may meet 
 14.8   its obligations and expenses of operating and reinvesting 
 14.9   capital improvements by retaining revenues received under leases 
 14.10  or management contracts and is not required to pay lease or 
 14.11  management contract revenues to the commissioner of finance; and 
 14.12  (2) the lease or management contract entered into by a port 
 14.13  authority must not be canceled or terminated as a result of 
 14.14  changes or termination by the state in the governmental program 
 14.15  of the port authority unless compensation is paid as provided by 
 14.16  law. 
 14.17     Sec. 22.  Laws 1998, chapter 404, section 3, subdivision 
 14.18  17, is amended to read: 
 14.19  Subd. 17.  Pine Technical College                     1,700,000 
 14.20  To predesign, design, and renovate, and 
 14.21  construct an addition for a 
 14.22  telecommunications/media/technology 
 14.23  center, student services, 
 14.24  administrative services, classrooms, 
 14.25  and a regional economic development 
 14.26  center.  This project may be a part of 
 14.27  a larger advanced technology center 
 14.28  project at the college if federal funds 
 14.29  are available for the larger project.  
 14.30  The board must not proceed with the 
 14.31  larger advanced technology center 
 14.32  project without the approval of the 
 14.33  chairs of the house committee on ways 
 14.34  and means and the senate committee on 
 14.35  education finance. 
 14.36     Sec. 23.  Laws 1998, chapter 404, section 5, subdivision 4, 
 14.37  is amended to read: 
 14.38  Subd. 4.  Recreation and Community
 14.39  Center Grants                                        10,800,000 
 14.40                                                       10,500,000 
 14.41  (a) Unless otherwise specifically 
 14.42  provided, the commissioner may not make 
 14.43  a grant from this appropriation until 
 14.44  the commissioner has determined that at 
 14.45  least an equal amount has been 
 14.46  committed to the project from nonstate 
 14.47  sources. 
 15.1   (b) The commissioner may not make a 
 15.2   grant under this subdivision until the 
 15.3   commissioner has determined that, if 
 15.4   the center will charge a fee for use of 
 15.5   the center's facilities, the plan for 
 15.6   operating the center includes free or 
 15.7   reduced-rate use of the facilities by 
 15.8   individuals and families that have a 
 15.9   household income at or below 150 
 15.10  percent of the federal poverty income 
 15.11  guidelines.  
 15.12  (c) The commissioner may not make a 
 15.13  grant under this subdivision until the 
 15.14  commissioner has determined that the 
 15.15  recipient has the ability and a plan to 
 15.16  fund the program intended for the 
 15.17  facility. 
 15.18  (d) Dawson-Boyd Educational       
 15.19  and Community Center                     1,000,000
 15.20  For a grant to independent school 
 15.21  district No. 378, Dawson-Boyd, to 
 15.22  design, construct, furnish, and equip 
 15.23  an educational and community center. 
 15.24  (e) Detroit Lakes Community
 15.25  Center                                   1,500,000
 15.26  For a grant to the city of Detroit 
 15.27  Lakes to design, construct, furnish, 
 15.28  and equip the Detroit Lakes Community 
 15.29  Center.  
 15.30  (f) Granite Falls Area 
 15.31  Multipurpose Community Recreation and 
 15.32  Education Center                         1,000,000
 15.33  For a grant to the city of Granite 
 15.34  Falls to design, construct, furnish, 
 15.35  and equip a multipurpose community 
 15.36  recreation and education building.  
 15.37  (g) Hallett Community
 15.38  Center, City of Crosby                     300,000
 15.39  For a grant to the city of Crosby to 
 15.40  design, construct, furnish, and equip 
 15.41  the Hallett Community Center.  
 15.42  (h) Hastings Municipal Water
 15.43  Park                                       500,000
 15.44  For a grant to the city of Hastings to 
 15.45  design, construct, furnish, and equip a 
 15.46  municipal water park.  
 15.47  (i) Hermantown Community Indoor 
 15.48  Sports and Physical Education Complex    1,000,000
 15.49  For a grant to independent school 
 15.50  district No. 700, Hermantown, to 
 15.51  design, construct, furnish, and equip a 
 15.52  community indoor sports and physical 
 15.53  education complex with an indoor track. 
 15.54  (j) Isle Community Center                1,000,000 
 15.55                                             700,000
 15.56  For a grant to independent school 
 16.1   district No. 473, Isle, to convert a 
 16.2   school building into a community 
 16.3   center.  Programs located at the 
 16.4   converted facility must include the 
 16.5   alternative education program, early 
 16.6   childhood family education programs, 
 16.7   centralized school district kitchen 
 16.8   facilities, and other community 
 16.9   programs.  This appropriation is 
 16.10  available on a dollar for dollar basis 
 16.11  as matching funds are committed from 
 16.12  nonstate sources.  
 16.13  (k) Lake Crystal Area
 16.14  Recreation Center                        1,500,000
 16.15  For a grant to the city of Lake Crystal 
 16.16  to design, construct, furnish, and 
 16.17  equip the Lake Crystal Area Recreation 
 16.18  Center. 
 16.19  (l) Proctor Community
 16.20  Activity Center                          1,000,000
 16.21  For a grant to the city of Proctor to 
 16.22  design, construct, furnish, and equip a 
 16.23  city community activity center designed 
 16.24  to provide facilities for city 
 16.25  government, library, arts, museum, and 
 16.26  other public functions.  
 16.27  (m) Redwood Valley Multipurpose   
 16.28  Education and Community Center           1,000,000
 16.29  For a grant to independent school 
 16.30  district No. 2758, Redwood Falls, to 
 16.31  design, construct, furnish, and equip a 
 16.32  multipurpose education and community 
 16.33  center to be constructed and operated 
 16.34  under a joint powers agreement with the 
 16.35  city of Redwood Falls.  
 16.36  The center must provide:  (1) expanded 
 16.37  physical education curriculum for 
 16.38  Redwood Valley students; (2) a latchkey 
 16.39  program and an after-school program for 
 16.40  at-risk youth; (3) expanded healthy 
 16.41  lifestyle community education and 
 16.42  recreation programs for all age groups 
 16.43  in the community; and (4) community 
 16.44  conference and meeting facilities.  
 16.45  (n) Windom Area Multipurpose 
 16.46  Center                                   1,000,000
 16.47  For a grant to the city of Windom to 
 16.48  design, construct, furnish, and equip a 
 16.49  multipurpose center. 
 16.50     Sec. 24.  Laws 1998, chapter 404, section 7, subdivision 
 16.51  23, is amended to read: 
 16.52  Subd. 23.  Metro Regional Trails                      5,000,000 
 16.53  For grants to the metropolitan council 
 16.54  for acquisition and development of a 
 16.55  capital nature of trail connections in 
 16.56  the metropolitan area as specified in 
 16.57  this subdivision.  The purpose of the 
 16.58  grants is to improve trails in the 
 17.1   metropolitan park and open space system 
 17.2   and connect them with existing state 
 17.3   and regional trails.  Priority shall be 
 17.4   given to matching funds for an ISTEA 
 17.5   grant. 
 17.6   The funds shall be allocated by the 
 17.7   council as follows: 
 17.8   (1) $1,050,000 is allocated to Ramsey 
 17.9   county as follows: 
 17.10  (i) $400,000 to complete six miles of 
 17.11  trails between the Burlington Northern 
 17.12  Regional Trail and Bald Eagle-Otter 
 17.13  Lake Regional Park; 
 17.14  (ii) $150,000 to complete a one-mile 
 17.15  connection between Birch Lake and the 
 17.16  Lake Tamarack segment of Bald 
 17.17  Eagle-Otter Lake Regional Park; 
 17.18  (iii) $500,000 to acquire real property 
 17.19  and design and construct or renovate 
 17.20  recreation facilities along the 
 17.21  Mississippi River in cooperation with 
 17.22  the city of St. Paul; 
 17.23  (2) $1,050,000 is allocated to the city 
 17.24  of St. Paul as follows: 
 17.25  (i) $250,000 to construct a bridge over 
 17.26  Lexington Parkway in Como Regional 
 17.27  Park; and 
 17.28  (ii) $800,000 to enhance amenities for 
 17.29  the trailhead at the Lilydale-Harriet 
 17.30  Island Regional Park pavilion; 
 17.31  (3) $1,400,000 is allocated to Anoka 
 17.32  county as follows to construct: 
 17.33  (i) $1,100,000 to construct a 
 17.34  pedestrian tunnel under Highway 65 on 
 17.35  the Rice Creek West Regional Trail in 
 17.36  the city of Fridley; and 
 17.37  (ii) $300,000 to construct a pedestrian 
 17.38  bridge on the Mississippi River 
 17.39  Regional Trail crossing over 
 17.40  Mississippi Street in the city of 
 17.41  Fridley; and 
 17.42  (4) $1,500,000 is allocated to the 
 17.43  suburban Hennepin regional park 
 17.44  district as follows: 
 17.45  (i) $1,000,000 to connect North 
 17.46  Hennepin Regional Trail to Luce Line 
 17.47  State Trail and Medicine Lake; and 
 17.48  (ii) $500,000 is for the cost of 
 17.49  development and acquisition of the 
 17.50  Southwest regional trail in the city of 
 17.51  St. Louis Park.  The trail must connect 
 17.52  the Minneapolis regional trail system 
 17.53  at Cedar Lake park to the Hennepin 
 17.54  parks regional trail system at the 
 17.55  Hopkins trail head. 
 17.56     Sec. 25.  Laws 1998, chapter 404, section 7, subdivision 
 18.1   26, is amended to read: 
 18.2   Subd. 26.  Local Initiative Grants                    8,000,000 
 18.3   For matching grants to be provided to 
 18.4   local units of government for 
 18.5   acquisition, development, or renovation 
 18.6   of a capital nature of local parks, 
 18.7   trails, and natural and scenic areas.  
 18.8   Recipients must provide a match of at 
 18.9   least one-half of total eligible 
 18.10  project costs.  The commissioner shall 
 18.11  make payment to local units of 
 18.12  government upon receiving documentation 
 18.13  of reimbursable expenditures.  The 
 18.14  commissioner shall determine project 
 18.15  priorities as appropriate based upon 
 18.16  need. 
 18.17  $3,500,000 of this appropriation is for 
 18.18  grants to units of government to 
 18.19  acquire and develop outdoor recreation 
 18.20  areas, and for grants to units of 
 18.21  government to acquire and better 
 18.22  natural and scenic areas under 
 18.23  Minnesota Statutes, section 85.019, 
 18.24  subdivision 4a.  
 18.25  $1,000,000 of this appropriation is for 
 18.26  cooperative trail grants of up to 
 18.27  $50,000 per project to acquire or 
 18.28  construct trail linkages between 
 18.29  communities, trails, and parks. 
 18.30  $3,500,000 of this appropriation is for 
 18.31  trail grants for the following locally 
 18.32  funded publicly owned trails serving 
 18.33  multiple communities:  $1,400,000 for 
 18.34  Beaver Island Trail in Stearns County, 
 18.35  $1,400,000 for Skunk Hollow Trail in 
 18.36  Yellow Medicine and Chippewa Counties, 
 18.37  and $700,000 for Unity Trail in 
 18.38  Faribault County.  The grant for Beaver 
 18.39  Island Trail in Stearns County is 
 18.40  available in the manner and the order 
 18.41  that follows:  $500,000 is available 
 18.42  upon commitment of an equal amount from 
 18.43  nonstate sources, $152,000 is available 
 18.44  upon contribution of an equal amount 
 18.45  from local governments, $374,000 is 
 18.46  available upon commitment of an equal 
 18.47  amount from nonstate sources, and the 
 18.48  balance of $374,000 is available upon 
 18.49  commitment of an equal amount from 
 18.50  nonstate sources. 
 18.51     Sec. 26.  Laws 1998, chapter 404, section 13, subdivision 
 18.52  12, is amended to read: 
 18.53  Subd. 12.  Dahl House Relocation                     100,000
 18.54                                                        60,000
 18.55  This appropriation is from the general 
 18.56  fund to relocate the Dahl House near 
 18.57  its original site, and stabilize, and 
 18.58  restore the structure.  Up to $150,000 
 18.59  from the plaza percent for art budget 
 18.60  may be used for the restoration and 
 18.61  related art objects. 
 19.1      Sec. 27.  Laws 1998, chapter 404, section 27, subdivision 
 19.2   1, is amended to read: 
 19.3      Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
 19.4   appropriated in this act from the bond proceeds fund, the 
 19.5   commissioner of finance, on request of the governor, shall sell 
 19.6   and issue bonds of the state in an amount up to 
 19.7   $463,795,000 $105,145,000 in the manner, upon the terms, and 
 19.8   with the effect prescribed by Minnesota Statutes, sections 
 19.9   16A.631 to 16A.675, and by the Minnesota Constitution, article 
 19.10  XI, sections 4 to 7. 
 19.11     Sec. 28.  Laws 1998, chapter 404, section 27, subdivision 
 19.12  2, is amended to read: 
 19.13     Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
 19.14  appropriated in this act from the transportation fund, the 
 19.15  commissioner of finance, on request of the governor, shall sell 
 19.16  and issue bonds of the state in an amount up to 
 19.17  $34,000,000 $4,000,000 in the manner, upon the terms, and with 
 19.18  the effect prescribed by Minnesota Statutes, sections 16A.631 to 
 19.19  16A.675, and by the Minnesota Constitution, article XI, sections 
 19.20  4 to 7.  The proceeds of the bonds, except accrued interest and 
 19.21  any premium received on the sale of the bonds, must be credited 
 19.22  to a bond proceeds account in the state transportation fund. 
 19.23     Sec. 29.  [CANCELLATION AND REDUCED AUTHORIZATION.] 
 19.24     $400,000 of the appropriation in Laws 1998, chapter 404, 
 19.25  section 26, for bond sale expense is canceled.  The bond sale 
 19.26  authorization in Laws 1998, chapter 404, section 27, subdivision 
 19.27  1, is reduced by $400,000. 
 19.28     Sec. 30.  [VETERANS HOMES IMPROVEMENTS.] 
 19.29     Notwithstanding Minnesota Statutes, section 16B.30, the 
 19.30  veterans homes board of directors may make and maintain the 
 19.31  improvements to the veterans homes listed in clauses (1) to (5) 
 19.32  using money donated for those purposes: 
 19.33     (1) a picnic pavilion at the Minneapolis veterans home; 
 19.34     (2) walking trails at the Hastings veterans home; 
 19.35     (3) walking trails and landscape at the Silver Bay veterans 
 19.36  home; 
 20.1      (4) an entrance canopy at the Fergus Falls veterans home; 
 20.2   and 
 20.3      (5) a suspended wooden deck for dining at the Luverne 
 20.4   veterans home. 
 20.5      Sec. 31.  [ITASCA COMMUNITY COLLEGE; AUTHORIZATION.] 
 20.6      The board of trustees of the Minnesota state colleges and 
 20.7   universities may construct the following facilities at Itasca 
 20.8   community college: 
 20.9      (1) a two classroom addition to be located between the 
 20.10  college center building and Davies hall, funding for the project 
 20.11  to come from lease revenue supplied from nonstate sources; and 
 20.12     (2) an addition to the existing child care center, funding 
 20.13  for the construction to come from a 1997 special appropriation 
 20.14  to establish pilot infant child care programs with matching 
 20.15  funds supplied from nonstate sources. 
 20.16     Sec. 32.  [REQUEST TO LEGISLATIVE AUDIT COMMISSION.] 
 20.17     The legislative audit commission is requested to direct the 
 20.18  legislative auditor to investigate the mold problem at the 
 20.19  Luverne veterans home, the state response to the problem, and 
 20.20  the original cause of the problem, including whether inadequate 
 20.21  state building standards, or noncompliance with state building 
 20.22  standards, contributed to this problem and whether other state 
 20.23  buildings are at risk due to inadequate standards or 
 20.24  noncompliance with state building standards, and report back to 
 20.25  the commission for its review and thereafter to the 
 20.26  legislature.  This section does not restrict the department of 
 20.27  administration or the veterans home board from undertaking 
 20.28  capital improvements to correct the mold problem. 
 20.29     Sec. 33.  [BOND REAUTHORIZATIONS.] 
 20.30     An amount remaining of $4,078,196.35 for appropriations 
 20.31  from the state transportation fund for railroad assistance, 
 20.32  authorized in Laws 1984, chapter 597, section 22 is reauthorized 
 20.33  and does not cancel under the terms of Minnesota Statutes, 
 20.34  section 16A.642, subdivision 1.  For purposes of the next report 
 20.35  required under Minnesota Statutes, section 16A.642, subdivision 
 20.36  1, the bonds reauthorized in this section shall be treated as 
 21.1   authorized on the original date of authorization. 
 21.2      Sec. 34.  [EFFECTIVE DATE.] 
 21.3      This act is effective the day after its final enactment.