1.1 	A bill for an act
1.2 	relating to capital improvements; authorizing spending
1.3 	to acquire and better public land and buildings and
1.4 	other public improvements of a capital nature with
1.5 	certain conditions; making adjustments to previous
1.6 	bond authorizations; authorizing sale of state bonds;
1.7 	appropriating money; amending Minnesota Statutes 2004,
1.8 	sections 16A.661, by adding a subdivision; 16A.662, by
1.9 	adding a subdivision; 16A.671, subdivision 3;
1.10 	116J.571; 116J.572, subdivision 2; 116J.573,
1.11 	subdivisions 1, 2, 4, 5; 116J.575, subdivision 1;
1.12 	116P.08, subdivision 2; 136F.60, by adding a
1.13 	subdivision; 446A.14, subdivision 1; Laws 1998,
1.14 	chapter 404, section 23, subdivision 17, as amended;
1.15 	Laws 2002, chapter 393, section 19, subdivision 2;
1.16 	Laws 2003, First Special Session chapter 20, article
1.17 	1, section 15; proposing coding for new law in
1.18 	Minnesota Statutes, chapter 16A; repealing Minnesota
1.19 	Statutes 2004, section 16B.325.
1.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.21 	ARTICLE 1
1.22 	APPROPRIATIONS AND RELATED LANGUAGE

1.23 	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 1.24 	The sums in the column under "APPROPRIATIONS" are
1.25 	appropriated from the bond proceeds fund, or another named fund,
1.26 	to the state agencies or officials indicated, to be spent for
1.27 	public purposes.  Appropriations of bond proceeds must be spent
1.28 	as authorized by the Minnesota Constitution, article XI, section
1.29 	5, paragraph (a), to acquire and better public land and
1.30 	buildings and other public improvements of a capital nature, or
1.31 	as authorized by the Minnesota Constitution, article XI, section
1.32 	5, paragraphs (b) to (j), or article XIV.  Unless otherwise
2.1 	specified, the appropriations in this act are available until
2.2 	the project is completed or abandoned subject to Minnesota
2.3 	Statutes, section 16A.642.
2.4 	SUMMARY
2.5 	UNIVERSITY OF MINNESOTA                          $   79,790,000
2.6 	MINNESOTA STATE COLLEGES AND UNIVERSITIES           129,417,000
2.7 	EDUCATION                                             1,054,000
2.8 	MINNESOTA STATE ACADEMIES                             4,255,000
2.9 	NATURAL RESOURCES                                    52,500,000
2.10 	POLLUTION CONTROL AGENCY                             14,000,000
2.11 	OFFICE OF ENVIRONMENTAL ASSISTANCE                    4,000,000
2.12 	BOARD OF WATER AND SOIL RESOURCES                    26,000,000
2.13 	AGRICULTURE                                          18,570,000
2.14 	ZOOLOGICAL GARDEN                                     2,000,000
2.15 	ADMINISTRATION                                        1,000,000
2.16 	CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD         1,870,000
2.17 	MILITARY AFFAIRS                                      5,000,000
2.18 	VETERANS AFFAIRS                                        670,000
2.19 	TRANSPORTATION                                       90,890,000
2.20 	METROPOLITAN COUNCIL                                 16,000,000
2.21 	HUMAN SERVICES                                       21,873,000
2.22 	VETERANS HOMES BOARD                                  6,306,000
2.23 	CORRECTIONS                                          65,433,000
2.24 	EMPLOYMENT AND ECONOMIC DEVELOPMENT                  61,280,000
2.25 	HOUSING FINANCE AGENCY                               10,000,000
2.26 	MINNESOTA HISTORICAL SOCIETY                          4,000,000
2.27 	GRANTS TO POLITICAL SUBDIVISIONS                     25,754,000
2.28 	BOND SALE EXPENSES                                      590,000
2.29 	TOTAL                                            $  642,252,000
2.30 	Bond Proceeds Fund
2.31 	(General Fund Debt Service)                         543,663,000
2.32 	Bond Proceeds Fund
2.33 	(User Financed Debt Service)                         44,779,000
2.34 	State Transportation Fund
2.35 	Bond Proceeds Account                                40,000,000
2.36 	Trunk Highway Fund                                    3,800,000
2.37 	Trunk Highway Bond Proceeds Account                  10,010,000
3.1 	APPROPRIATIONS
3.2 	                                                 $

3.3 	Sec. 2. UNIVERSITY OF MINNESOTA
 3.4 		Subdivision 1.To the Board of Regents
3.5 	of the University of Minnesota for the
3.6 	purposes specified in this section                   79,790,000
3.7 		Subd. 2.Higher Education Asset
3.8 	Preservation and Replacement (HEAPR)                 38,000,000
3.9 	To be spent in accordance with
3.10 	Minnesota Statutes, section 135A.046.
3.11 		Subd. 3.Academic Health Center,
3.12 	Minneapolis                                           9,600,000
3.13 	To design, renovate, furnish, and equip
3.14 	classrooms in the academic health care
3.15 	facility to provide flexible space,
3.16 	including computer-based testing
3.17 	facilities, computer labs, and
3.18 	simulation facilities for health
3.19 	professional education.
3.20 		Subd. 4.Education Sciences - Minneapolis           13,300,000
3.21 	To design, renovate, furnish, and equip
3.22 	the Education Sciences Building.
3.23 		Subd. 5.Kolthoff Hall -
3.24 	Minneapolis                                          16,000,000
3.25 	To design, renovate, furnish, and equip
3.26 	Kolthoff Hall, including the correction
3.27 	of air quality problems in the facility
3.28 	that may include, but is not limited
3.29 	to, repair or replacement of the
3.30 	mechanical, electrical, and HVAC
3.31 	systems.
3.32 		Subd. 6.Morris District Facilities                  2,890,000
3.33 	To design, construct, furnish, and
3.34 	equip an addition to the heating plant
3.35 	to provide the capacity to generate
3.36 	steam by burning biomass.
3.37 		Subd. 7.University Funding
3.38 	(a) The Board of Regents shall provide
3.39 	nonstate funding for remaining costs
3.40 	associated with projects authorized by
3.41 	subdivisions 3 to 6.
3.42 	(b)(1) The appropriation for each
3.43 	project in subdivisions 3 to 6 is for
3.44 	two-thirds of the assumed total project
3.45 	cost up to a maximum of two-thirds of
3.46 	150 percent of the appropriated amount.
3.47 	(2) The amount of an appropriation that
3.48 	is paid to the University must be
3.49 	prorated if the actual final project
3.50 	cost for a project in subdivisions 3 to
3.51 	6 is less than 150 percent of the
3.52 	appropriated amount for the project.
3.53 	(3) The Board of Regents must certify
3.54 	the actual final project cost for each
4.1 	project.
4.2 	(4) If the amount paid to the
4.3 	University from an appropriation for a
4.4 	project is found to have exceeded
4.5 	two-thirds of 150 percent of the Board
4.6 	of Regents-certified total actual
4.7 	project cost, the state must offset the
4.8 	excess amount paid from any other
4.9 	appropriation to the University for any
4.10 	other capital project, unless the
4.11 	Department of Finance and the
4.12 	University agree to an equivalent
4.13 	alternative to the offset for
4.14 	administrative convenience.
4.15 	(5) The Board of Regents agrees to the
4.16 	conditions in the clauses of this
4.17 	paragraph for each appropriation in
4.18 	subdivisions 3 to 6 by accepting the
4.19 	appropriation.

4.20 	Sec. 3. MINNESOTA STATE COLLEGES AND
4.21 	UNIVERSITIES
 4.22 		Subdivision 1.To the Board of Trustees
4.23 	of the Minnesota State Colleges and
4.24 	Universities for the purposes specified in
4.25 	this section                                        129,417,000
4.26 		Subd. 2.Higher Education Asset
4.27 	Preservation and Replacement                         49,000,000
4.28 	This appropriation is for the purposes
4.29 	specified in Minnesota Statutes,
4.30 	section 135A.046, including safety and
4.31 	statutory compliance, envelope
4.32 	integrity, mechanical systems, and
4.33 	space restoration.
4.34 		Subd. 3.Winona State University                    10,235,000
4.35 	To design, renovate, furnish, and equip
4.36 	Pasteur Hall for classrooms, science
4.37 	laboratories, and related offices.
4.38 		Subd. 4.Minnesota State University -
4.39 	Moorhead                                              9,645,000
4.40 	To renovate, furnish, and equip Hagen
4.41 	Hall for classrooms, science
4.42 	laboratories, and related offices.
4.43 		Subd. 5.Century Community and
4.44 	Technical College                                     4,500,000
4.45 	To remodel, furnish, and equip recently
4.46 	purchased space into a computer center,
4.47 	offices, and smart classrooms.
4.48 		Subd. 6.St. Cloud State University                  2,900,000
4.49 	To remodel, furnish, and equip
4.50 	Centennial Hall to convert it from a
4.51 	library to classroom and office space.
4.52 	This appropriation is added to the
4.53 	appropriation in Laws 2003, First
4.54 	Special Session chapter 20, article 1,
4.55 	section 3, subdivision 16.
4.56 		Subd. 7.St. Cloud Technical College                12,960,000
5.1 	To design, construct, furnish, and
5.2 	equip a building addition and to
5.3 	renovate, furnish, and equip classroom
5.4 	space into science space for allied
5.5 	health programs and the colocation of a
5.6 	workforce center.
5.7 		Subd. 8.South Central Technical
5.8 	College                                               4,747,000
5.9 	To remodel, furnish, and equip teaching
5.10 	laboratories at the North Mankato
5.11 	campus and for asset preservation at
5.12 	the Faribault campus.
5.13 		Subd. 9.Inver Hills Community
5.14 	College                                               4,500,000
5.15 	To construct, furnish, and equip an
5.16 	addition to and remodel space in the
5.17 	College Center Building.
5.18 		Subd. 10.Systemwide Science Lab
5.19 	Renovations                                           9,600,000
5.20 	To design, renovate, furnish, and equip
5.21 	science laboratories at campuses
5.22 	statewide.
5.23 		Subd. 11.Riverland Community and
5.24 	Technical College                                     4,100,000
5.25 	To design, remodel, furnish, and equip
5.26 	existing space into labs and classrooms
5.27 	at the Austin campus.
5.28 		Subd. 12.Rochester Community and
5.29 	Technical College                                    10,945,000
5.30 	To design, renovate, furnish, and equip
5.31 	the vacant Rockenbach gymnasium, part
5.32 	of the Heintz Center, and part of the
5.33 	main campus buildings into a health
5.34 	science center to colocate nursing
5.35 	programs, expand the dental clinic, and
5.36 	create a community primary care clinic.
5.37 		Subd. 13.Systemwide Demolition
5.38 	Initiative                                            1,625,000
5.39 	To demolish obsolete buildings on ten
5.40 	campuses.
5.41 		Subd. 14.Minnesota State University -
5.42 	Mankato                                               2,560,000
5.43 	To design, through construction
5.44 	documents, an addition to and partial
5.45 	remodeling of Trafton Science Center to
5.46 	provide additional science labs and
5.47 	remodel existing science labs.
5.48 		Subd. 15.St. Cloud State University                   900,000
5.49 	To design, through construction
5.50 	documents, renovation of and addition
5.51 	to Brown Hall, and Math and Science
5.52 	Hall, for science and health care
5.53 	instruction.
6.1 		Subd. 16.Dakota Technical College                   1,200,000
6.2 	To remodel, furnish, and equip the west
6.3 	side of the main campus facility for an
6.4 	information technology and
6.5 	telecommunications upgrade, an
6.6 	integrated library and library
6.7 	information technology center, science
6.8 	lab and preparatory space and asset
6.9 	preservation.
6.10 		Subd. 17.Debt Service
6.11 	(a) The board shall pay the debt
6.12 	service on one-third of the principal
6.13 	amount of state bonds sold to finance
6.14 	projects authorized by this section,
6.15 	except for higher education asset
6.16 	preservation and replacement in
6.17 	subdivision 2.  After each sale of
6.18 	general obligation bonds, the
6.19 	commissioner of finance shall notify
6.20 	the board of the amounts assessed for
6.21 	each year for the life of the bonds.
6.22 	(b) The commissioner shall reduce the
6.23 	board's assessment each year by
6.24 	one-third of the net income from
6.25 	investment of general obligation bond
6.26 	proceeds in proportion to the amount of
6.27 	principal and interest otherwise
6.28 	required to be paid by the board.  The
6.29 	board shall pay its resulting net
6.30 	assessment to the commissioner of
6.31 	finance by December 1 each year.  If
6.32 	the board fails to make a payment when
6.33 	due, the commissioner of finance shall
6.34 	reduce allotments for appropriations
6.35 	from the general fund otherwise
6.36 	available to the board and apply the
6.37 	amount of the reduction to cover the
6.38 	missed debt service payment.  The
6.39 	commissioner of finance shall credit
6.40 	the payments received from the board to
6.41 	the bond debt service account in the
6.42 	state bond fund each December 1 before
6.43 	money is transferred from the general
6.44 	fund under Minnesota Statutes, section
6.45 	16A.641, subdivision 10.

6.46 	Sec. 4. EDUCATION                                    1,054,000
 6.47 	To the commissioner of education for a
6.48 	grant to East Metro Integration
6.49 	District No. 6067, to complete land
6.50 	acquisition of the current site for the
6.51 	Crosswinds Arts and Science Middle
6.52 	School.

6.53 	Sec. 5. MINNESOTA STATE ACADEMIES                    4,255,000
 6.54 	To the commissioner of administration
6.55 	for asset preservation capital
6.56 	improvements on both campuses of the
6.57 	Minnesota State Academies for the Deaf
6.58 	and the Blind.

6.59 	Sec. 6. NATURAL RESOURCES
 6.60 		Subdivision 1.To the
6.61 	commissioner of natural resources
7.1 	for the purposes specified
7.2 	in this section                                      52,500,000
7.3 		Subd. 2.Flood Hazard Mitigation
7.4 	Grants                                               20,000,000
7.5 		Subd. 3.Dam Renovation and
7.6 	Removal                                               1,500,000
7.7 	To renovate or remove publicly owned
7.8 	dams.  The commissioner shall determine
7.9 	project priorities as appropriate under
7.10 	Minnesota Statutes, sections 103G.511
7.11 	and 103G.515.
7.12 	$200,000 of this amount is to remove
7.13 	the dam on Rush Creek in Chisago
7.14 	County, restore the river channel and
7.15 	floodplain, and construct off-channel
7.16 	ponds for storm water retention and
7.17 	recreation.
7.18 		Subd. 4.RIM - Critical Habitat
7.19 	Match                                                 2,000,000
7.20 	To provide the state match for the
7.21 	critical habitat private sector
7.22 	matching account under Minnesota
7.23 	Statutes, section 84.943, for the
7.24 	acquisition or improvements of a
7.25 	capital nature for critical fish,
7.26 	wildlife, and native plant habitats.
7.27 		Subd. 5.RIM - Wildlife Area Land
7.28 	Acquisition                                           6,000,000
7.29 	To acquire land for wildlife management
7.30 	area purposes under Minnesota Statutes,
7.31 	section 86A.05, subdivision 8.
7.32 		Subd. 6.Fisheries Acquisition and
7.33 	Improvement                                           1,000,000
7.34 	To acquire land and interests in land
7.35 	for aquatic management areas and to
7.36 	make public improvements and
7.37 	betterments of a capital nature to
7.38 	aquatic management areas established
7.39 	under Minnesota Statutes, section
7.40 	86A.05, subdivision 14.
7.41 		Subd. 7.Water Access Acquisition,
7.42 	Betterment, and Fishing Piers                         3,000,000
7.43 	For public water access acquisition,
7.44 	construction, and renovation to capital
7.45 	projects on lakes and rivers, including
7.46 	water access through the provision of
7.47 	fishing piers and shoreline access
7.48 	under Minnesota Statutes, section
7.49 	86A.05, subdivision 9.
7.50 		Subd. 8.Reforestation                               3,000,000
7.51 	To increase reforestation activities to
7.52 	meet the reforestation requirements of
7.53 	Minnesota Statutes, section 89.002,
7.54 	subdivision 2, including planting,
7.55 	seeding, site preparation, and
7.56 	purchasing tree seeds and seedlings.
8.1 		Subd. 9.State and Local Trail
8.2 	Development and Acquisition                          8,000,000
8.3 		Subd. 10.State Forest Land Acquisition              1,000,000
8.4 	To acquire, in fee and easement,
8.5 	private lands from willing sellers
8.6 	within established boundaries of state
8.7 	forests established under Minnesota
8.8 	Statutes, section 89.021, and within
8.9 	forest legacy areas.
8.10 		Subd. 11.State Park and Recreation Area
8.11 	Acquisition                                           2,000,000
8.12 	For acquisition of land under Minnesota
8.13 	Statutes, section 86A.05, subdivisions
8.14 	2 and 3, from willing sellers of
8.15 	private lands within state park and
8.16 	recreation area boundaries established
8.17 	by law.
8.18 		Subd. 12.Local Parks Grants                         2,000,000
8.19 	For local parks grants under Minnesota
8.20 	Statutes, section 85.019, subdivisions
8.21 	2 and 4a.
8.22 		Subd. 13.Regional Parks:
8.23 	Greater Minnesota                                     3,000,000
8.24 	For grants to counties and public
8.25 	regional parks organizations located
8.26 	outside the metropolitan area as
8.27 	defined in Minnesota Statutes, section
8.28 	473.121, subdivision 2, to acquire
8.29 	land, design, and construct and
8.30 	redevelop regional parks and trails,
8.31 	open space, and recreational
8.32 	facilities.  The improvements must be
8.33 	of a capital nature.  Each $3 of state
8.34 	grants must be matched by $2 of
8.35 	nonstate funds.

8.36 	Sec. 7. POLLUTION CONTROL AGENCY                    14,000,000
 8.37 	To the Pollution Control Agency to
8.38 	design and construct remedial systems
8.39 	and acquire land at landfills
8.40 	throughout the state in accordance with
8.41 	the closed landfill program under
8.42 	Minnesota Statutes, section 115B.39.

8.43 	Sec. 8. OFFICE OF ENVIRONMENTAL ASSISTANCE           4,000,000
 8.44 	To the Office of Environmental
8.45 	Assistance for the solid waste capital
8.46 	assistance grants program under
8.47 	Minnesota Statutes, section 115A.54.
8.48 	Grants from this appropriation must be
8.49 	awarded to applicants whose
8.50 	applications were on file with the
8.51 	office before September 13, 2003.

8.52 	Sec. 9. BOARD OF WATER AND SOIL RESOURCES
 8.53 		Subdivision 1.To the Board
8.54 	of Water and Soil Resources for the
8.55 	purposes specified in this section                   26,000,000
8.56 		Subd. 2.RIM and CREP Conservation
9.1 	Easements                                            23,000,000
9.2 	This appropriation is to acquire
9.3 	conservation easements from landowners
9.4 	on marginal lands to protect soil and
9.5 	water quality and to support fish and
9.6 	wildlife habitat as provided in
9.7 	Minnesota Statutes, section 103F.515.
9.8 	The board must absorb the
9.9 	administrative costs of this program.
9.10 		Subd. 3.Wetland Replacement
9.11 	Due to Public Road Projects                           3,000,000
9.12 	To acquire land for wetlands or restore
9.13 	wetlands to be used to replace wetlands
9.14 	drained or filled as a result of the
9.15 	repair, maintenance, or rehabilitation
9.16 	of existing public roads as required by
9.17 	Minnesota Statutes, section 103G.222,
9.18 	subdivision 1, paragraphs (k) and (l).
9.19 	The purchase price paid for acquisition
9.20 	of land, fee, or perpetual easement
9.21 	must be the fair market value as
9.22 	determined by the board.  The board may
9.23 	enter into agreements with the federal
9.24 	government, other state agencies,
9.25 	political subdivisions, and nonprofit
9.26 	organizations or fee owners to acquire
9.27 	land and restore and create wetlands
9.28 	and to acquire existing wetland banking
9.29 	credits with money provided by this
9.30 	appropriation.  Acquisition of or the
9.31 	conveyance of land may be in the name
9.32 	of the political subdivision.

9.33 	Sec. 10. AGRICULTURE
 9.34 		Subdivision 1.To the commissioner of
9.35 	agriculture or other named agencies for
9.36 	the purposes specified in this section               18,570,000
9.37 		Subd. 2.Rural Finance Authority
9.38 	Loan Participation                                   18,000,000
9.39 	For purposes as set forth in the
9.40 	Minnesota Constitution, article XI,
9.41 	section 5, clause (h).  To the rural
9.42 	finance authority to purchase
9.43 	participation interests in or to make
9.44 	direct agricultural loans to farmers
9.45 	under Minnesota Statutes, chapter 41B.
9.46 	This appropriation is for the beginning
9.47 	farmer program under Minnesota
9.48 	Statutes, section 41B.039, the loan
9.49 	restructuring program under Minnesota
9.50 	Statutes, section 41B.04, the
9.51 	seller-sponsored program under
9.52 	Minnesota Statutes, section 41B.042,
9.53 	the agricultural improvement loan
9.54 	program under Minnesota Statutes,
9.55 	section 41B.043, and the livestock
9.56 	expansion loan program under Minnesota
9.57 	Statutes, section 41B.045.  All debt
9.58 	service on bond proceeds used to
9.59 	finance this appropriation must be
9.60 	repaid by the rural finance authority
9.61 	under Minnesota Statutes, section
9.62 	16A.643.  Loan participations must be
10.1 	priced to provide full interest and
10.2 	principal coverage and a reserve for
10.3 	potential losses.
10.4 		Subd. 3.Agriculture Water Management
10.5 	Research Partnership                                    570,000
10.6 	To the Board of Regents of the
10.7 	University of Minnesota to establish or
10.8 	expand agricultural water management
10.9 	projects at the Crookston, Morris,
10.10 	Lamberton, and Waseca Research and
10.11 	Outreach Centers in partnership with
10.12 	the Department of Agriculture.

10.13 	Sec. 11. MINNESOTA ZOOLOGICAL
10.14 	GARDEN                                                2,000,000
 10.15 	To the Minnesota Zoological Garden for
10.16 	capital asset preservation improvements
10.17 	and betterments to roofs, mechanical
10.18 	and utility systems, roads and
10.19 	pathways, building envelopes, storm
10.20 	water systems, exhibits, and safety and
10.21 	code compliance upgrades.

10.22 	Sec. 12. ADMINISTRATION                              1,000,000
 10.23 	To the commissioner of administration
10.24 	for the Capital Asset Preservation and
10.25 	Replacement Account (CAPRA), to be
10.26 	spent in accordance with Minnesota
10.27 	Statutes, section 16A.632.

10.28 	Sec. 13. CAPITOL AREA ARCHITECTURAL
10.29 	AND PLANNING BOARD                                    1,870,000
 10.30 	To the commissioner of administration,
10.31 	for repair and restoration of the
10.32 	public corridors, walls, and ceilings
10.33 	of the third floor and the dome of the
10.34 	Capitol Building in St. Paul.

10.35 	Sec. 14. MILITARY AFFAIRS
 10.36 		Subdivision 1.To the adjutant
10.37 	general for the purposes specified
10.38 	in this section                                       5,000,000
10.39 		Subd. 2.Asset Preservation                          4,000,000
10.40 	For asset preservation improvements,
10.41 	Americans With Disabilities Act
10.42 	upgrades, and betterments of a capital
10.43 	nature at military affairs facilities
10.44 	statewide.
10.45 		Subd. 3.Facility Life Safety
10.46 	Improvements                                          1,000,000
10.47 	For life/safety improvements and
10.48 	correcting code deficiencies at
10.49 	military affairs facilities statewide.

10.50 	Sec. 15. VETERANS AFFAIRS                              670,000
 10.51 	To the commissioner of administration
10.52 	to complete construction of the World
10.53 	War II veterans' memorial on the
10.54 	Capitol mall.  This is the final state
10.55 	appropriation for the project and is
11.1 	contingent on sufficient nonstate funds
11.2 	being received and deposited into a
11.3 	segregated account for perpetual
11.4 	maintenance of the memorial.

11.5 	Sec. 16. TRANSPORTATION
 11.6 		Subdivision 1.To the
11.7 	commissioner of transportation for
11.8 	the purposes specified in this section               90,890,000
11.9 		Subd. 2.Local Bridge Replacement
11.10 	and Rehabilitation                                   40,000,000
11.11 	This appropriation is from the bond
11.12 	proceeds account in the state
11.13 	transportation fund.
11.14 	The commissioner shall spend this
11.15 	appropriation as grants to political
11.16 	subdivisions for the replacement,
11.17 	rehabilitation, and repair of key
11.18 	bridges on the state transportation
11.19 	system.  The commissioner shall make
11.20 	these grants in accordance with and for
11.21 	the purposes of Minnesota Statutes,
11.22 	section 174.50.
11.23 		Subd. 3.Local Road Improvement Program             23,090,000
11.24 	The commissioner shall deposit this
11.25 	amount in the local road improvement
11.26 	fund for allocation as follows:
11.27 	(1) $15,000,000 is for deposit in the
11.28 	local road account for routes of
11.29 	regional significance to be spent as
11.30 	grants for the purposes of Minnesota
11.31 	Statutes, section 174.52, subdivision
11.32 	4; and
11.33 	(2) $8,090,000 is for deposit in the
11.34 	trunk highway corridor projects account
11.35 	to be spent as grants for the purposes
11.36 	of Minnesota Statutes, section 174.52,
11.37 	subdivision 2.
11.38 		Subd. 4.Port Development Assistance                 4,000,000
11.39 	For the purposes of the port
11.40 	development program under Minnesota
11.41 	Statutes, chapter 457A.
11.42 		Subd. 5.Small Capital Projects                      3,800,000
11.43 	To design, construct, furnish, and
11.44 	equip statewide building projects,
11.45 	consisting of truck stations, salt
11.46 	storage facilities, cold storage
11.47 	facilities, and Mankato headquarters
11.48 	site work.
11.49 	This appropriation is from the trunk
11.50 	highway fund.
11.51 		Subd. 6.Mankato Headquarters Building             10,000,000
11.52 	To design, construct, furnish, and
11.53 	equip a new headquarters facility in
11.54 	Mankato.  The commissioner shall sell
11.55 	the existing site at fair market
12.1 	value.  Any proceeds from the sale are
12.2 	appropriated to the commissioner to pay
12.3 	for costs associated with the sale and
12.4 	to supplement the appropriation for the
12.5 	new facility.
12.6 	This appropriation is from the trunk
12.7 	highway bond proceeds account.
12.8 		Subd. 7.Northstar Commuter Rail                     10,000,000
12.9 	For final design and project management
12.10 	of a commuter rail line serving Big
12.11 	Lake to downtown Minneapolis; to
12.12 	acquire land for stations, maintenance
12.13 	facilities, and park and ride lots; and
12.14 	for final design and project management
12.15 	of an extension of the Hiawatha Light
12.16 	Rail Transit Line from its terminus in
12.17 	downtown Minneapolis to a new terminus
12.18 	near Fifth Avenue North adjacent to the
12.19 	proposed downtown Minneapolis commuter
12.20 	rail station.
12.21 	This appropriation is not available
12.22 	until $2,000,000 has been committed by
12.23 	local governments and approval to
12.24 	proceed to final design has been
12.25 	authorized by the Federal Transit
12.26 	Administration.
12.27 	Up to $2,000,000 of this appropriation
12.28 	may be used for final design and
12.29 	project management.
12.30 	After a full-funding grant agreement
12.31 	has been executed with the Federal
12.32 	Transit Administration for the
12.33 	Northstar Commuter Rail Project, the
12.34 	remaining balance of this appropriation
12.35 	not committed for final design and
12.36 	project management or committed to
12.37 	acquire land shall be available to
12.38 	construct, furnish, and equip the
12.39 	Northstar Commuter Rail Line and to
12.40 	construct, furnish, and equip the
12.41 	extension of the light rail transit
12.42 	line.

12.43 	Sec. 17. METROPOLITAN COUNCIL
 12.44 		Subdivision 1.To the Metropolitan
12.45 	Council for the purposes specified
12.46 	in this section                                      18,000,000
12.47 		Subd. 2.Cedar Avenue Bus
12.48 	Rapid Transit (BRT)                                  10,000,000
12.49 	For environmental studies, preliminary
12.50 	engineering, bus lane improvements, and
12.51 	transit station construction and
12.52 	improvements for Cedar Avenue bus rapid
12.53 	transit between the Mall of America in
12.54 	Bloomington and the cities of Eagan,
12.55 	Apple Valley, and Lakeville.
12.56 		Subd. 3.Rush Line Corridor Transitway              1,000,000
12.57 	To match federal funds and for
12.58 	right-of-way acquisition, planning, and
12.59 	engineering of the Rush Line corridor
13.1 	transitway between St. Paul and
13.2 	Hinckley.
13.3 		Subd. 4.Metropolitan Regional
13.4 	Parks Capital Improvements                            5,000,000
13.5 	This appropriation must be used to pay
13.6 	the cost of improvements and
13.7 	betterments of a capital nature and
13.8 	acquisition by the council and local
13.9 	government units of regional
13.10 	recreational open-space lands in
13.11 	accordance with the council's policy
13.12 	plan as provided in Minnesota Statutes,
13.13 	section 473.147.  Priority should be
13.14 	given to park rehabilitation and land
13.15 	acquisition projects.

13.16 	Sec. 18. HUMAN SERVICES
 13.17 		Subdivision 1.To the
13.18 	commissioner of administration
13.19 	for the purposes specified
13.20 	in this section                                      21,873,000
13.21 		Subd. 2.St. Peter Regional
13.22 	Treatment Center Sex Offender Facility                3,259,000
13.23 	To design new facilities for up to 150
13.24 	beds for the treatment of sex offenders
13.25 	in the Minnesota Sexual Offender
13.26 	Program at the St. Peter Regional
13.27 	Treatment Center.
13.28 		Subd. 3.Systemwide - Campus
13.29 	Redevelopment/Reuse/Demolition                        5,000,000
13.30 	To demolish or improve surplus,
13.31 	nonfunctional, or deteriorated
13.32 	facilities and infrastructure at
13.33 	Department of Human Services campuses
13.34 	statewide.
13.35 	Of this amount, up to $250,000 in
13.36 	fiscal year 2005 is to the commissioner
13.37 	to provide grants to cities, counties,
13.38 	or towns to purchase and place cemetery
13.39 	grave markers or memorial monuments,
13.40 	that include the available names of
13.41 	individuals, at cemeteries located on
13.42 	the site of former or current regional
13.43 	treatment centers or state hospitals
13.44 	and within the boundaries of the city,
13.45 	county, or town awarded the grant.  An
13.46 	individual monument must not be placed
13.47 	if the family of the deceased resident
13.48 	objects to the placement of the
13.49 	monument.  A grantee must consult with
13.50 	members of local service or charitable
13.51 	organizations, members of the local
13.52 	business community, and persons with
13.53 	mental illness or developmental
13.54 	disabilities or their representatives,
13.55 	and to the extent possible, consult
13.56 	with family members of deceased
13.57 	residents of the regional treatment
13.58 	center or state hospital, and current
13.59 	or former employees of the regional
13.60 	treatment center or state hospital.
13.61 		Subd. 4.Systemwide Roof
14.1 	Renovation and Replacement                            1,014,000
14.2 	For renovation and replacement of roofs
14.3 	at Department of Human Services
14.4 	facilities statewide.
14.5 		Subd. 5.Forensic Nursing
14.6 	Facility                                             12,600,000

14.7 	Sec. 19. VETERANS HOMES BOARD
 14.8 		Subdivision 1.To the commissioner
14.9 	of administration for the purposes
14.10 	specified in this section                             6,306,000
14.11 		Subd. 2.Luverne Dementia
14.12 	Wander Area                                             306,000
14.13 	For a structural addition to the
14.14 	Laverne Veteran's Home to be used as an
14.15 	Alzheimer's wander area.
14.16 		Subd. 3.Asset Preservation                          6,000,000
14.17 	For asset preservation improvements and
14.18 	betterments of a capital nature at
14.19 	veterans homes statewide.

14.20 	Sec. 20. CORRECTIONS
 14.21 		Subdivision 1.To the commissioner of
14.22 	administration for the purposes specified
14.23 	in this section                                      65,433,000
14.24 		Subd. 2.Minnesota Correctional
14.25 	Facility - Faribault Asset Preservation              34,891,000
14.26 	For asset preservation of existing
14.27 	facilities at the Minnesota
14.28 	Correctional Facility - Faribault.
14.29 		Subd. 3.Minnesota Correctional
14.30 	Facility - Stillwater                                19,192,000
14.31 	To design, construct, furnish, and
14.32 	equip a new 150-bed high security
14.33 	segregation unit to improve staff
14.34 	safety and accommodate increased inmate
14.35 	population, including the remodeling of
14.36 	the discipline and
14.37 	psychology/psychiatry unit, the
14.38 	demolition of the former health
14.39 	services building, and the removal of
14.40 	walls dividing Cell Hall A/West and
14.41 	Cell Hall A/Segregation.
14.42 		Subd. 4.Asset Preservation                         11,000,000
14.43 	For improvements and betterments of a
14.44 	capital nature at Minnesota
14.45 	correctional facilities statewide,
14.46 	including, but not limited to,
14.47 	emergency lighting projects, roof and
14.48 	window replacement, tuckpointing, and
14.49 	asbestos abatement.
14.50 		Subd. 5.Minnesota Correctional
14.51 	Facility - Willow River                                 350,000
14.52 	To purchase, furnish, equip, and
14.53 	prepare foundation and utilities for a
15.1 	new 24-bed prefabricated building.

15.2 	Sec. 21. EMPLOYMENT AND ECONOMIC DEVELOPMENT
 15.3 		Subdivision 1.To the commissioner of
15.4 	employment and economic development or other
15.5 	named agency for the purposes
15.6 	specified in this section                            61,280,000
15.7 		Subd. 2.State Match for
15.8 	Federal Grants                                       16,280,000
15.9 	(a) To the public facilities authority:
15.10 	(1) to match federal grants to the
15.11 	water pollution control revolving fund
15.12 	under Minnesota Statutes, section
15.13 	446A.07; and
15.14 	(2) to match federal grants to the
15.15 	drinking water revolving fund under
15.16 	Minnesota Statutes, section 446A.081.
15.17 	(b) The expenditure and allocation of
15.18 	state matching money between funds
15.19 	described in paragraph (a), clauses (1)
15.20 	and (2), must be based on the amount of
15.21 	federal money appropriated to the funds.
15.22 	(c) This appropriation must be used for
15.23 	qualified capital projects.
15.24 		Subd. 3.Minnesota Redevelopment
15.25 	Account                                              15,000,000
15.26 	For transfer to the Minnesota
15.27 	redevelopment account created in
15.28 	Minnesota Statutes, section 116J.571.
15.29 	This appropriation may be used for
15.30 	grants for eligible projects within the
15.31 	biotechnology and health science zone
15.32 	designated under Minnesota Statutes,
15.33 	section 469.334.
15.34 		Subd. 4.Wastewater Infrastructure
15.35 	Funding Program                                      10,000,000
15.36 	To the Public Facilities Authority for
15.37 	the purposes specified in this
15.38 	subdivision.  $10,000,000 of this
15.39 	appropriation is for grants to eligible
15.40 	municipalities under the wastewater
15.41 	infrastructure program established in
15.42 	Minnesota Statutes, section 446A.072.
15.43 	To the greatest practical extent, the
15.44 	authority must use the funds for
15.45 	projects on the 2004 project priority
15.46 	list in priority order to qualified
15.47 	applicants that submit plans and
15.48 	specifications to the Pollution Control
15.49 	Agency or receive a funding commitment
15.50 	from USDA rural development before
15.51 	December 1, 2005.
15.52 	The authority must absorb the costs for
15.53 	administration of the wastewater
15.54 	infrastructure program.
15.55 		Subd. 5.University of Minnesota -
15.56 	Mayo Clinic Biotechnology Research Facility          20,000,000
16.1 	To the Board of Regents of the
16.2 	University of Minnesota to purchase
16.3 	three floors in the Stabile Building on
16.4 	the Mayo Clinic campus in Rochester.
16.5 	The floors are to be used for
16.6 	scientific research beneficial to
16.7 	collaborative research efforts between
16.8 	the University of Minnesota and the
16.9 	Mayo Clinic.  The three floors will be
16.10 	owned by the University of Minnesota
16.11 	and operated by the Mayo Clinic through
16.12 	a use agreement approved by the
16.13 	commissioner of finance subject to
16.14 	Minnesota Statutes, section 16A.695.

16.15 	Sec. 22. HOUSING FINANCE AGENCY                     10,000,000
 16.16 	To the commissioner of the Housing
16.17 	Finance Agency for permanent supportive
16.18 	housing loans.

16.19 	Sec. 23. MINNESOTA HISTORICAL SOCIETY
 16.20 		Subdivision 1.To the Minnesota
16.21 	Historical Society for the purposes
16.22 	specified in this section                             4,000,000
16.23 		Subd. 2.Historic Sites Asset
16.24 	Preservation                                          2,000,000
16.25 	For capital improvements and
16.26 	betterments at state historic sites,
16.27 	buildings, landscaping at historic
16.28 	buildings, exhibits, markers, and
16.29 	monuments.  The society shall determine
16.30 	project priorities as appropriate based
16.31 	on need.
16.32 		Subd. 3.County and Local Preservation Grants        2,000,000
16.33 	To be allocated to county and local
16.34 	jurisdictions as matching money for
16.35 	historic preservation projects of a
16.36 	capital nature.  Grant recipients must
16.37 	be public entities and must match state
16.38 	funds on at least an equal basis.  The
16.39 	facilities must be publicly owned.

16.40 	Sec. 24. GRANTS TO POLITICAL SUBDIVISIONS
 16.41 		Subdivision 1.To the commissioner of
16.42 	employment and economic development or other
16.43 	named agency for the purposes specified
16.44 	in this section                                      25,754,000
16.45 		Subd. 2.Buffalo Lake Maintenance
16.46 	Garage and Street Repair                                635,000
16.47 	For a grant to the city of Buffalo Lake
16.48 	to design, construct, furnish, and
16.49 	equip a municipal maintenance garage
16.50 	and reconstruct city streets damaged by
16.51 	a tornado.
16.52 		Subd. 3.Roseau Infrastructure Repair and
16.53 	Municipal Complex Relocation                         10,000,000
16.54 	(a)(1) $4,615,000 to the public
16.55 	facilities authority for a grant to the
16.56 	city of Roseau to assist with the cost
17.1 	of rehabilitation and replacement of
17.2 	publicly owned infrastructure,
17.3 	including storm sewers, wastewater and
17.4 	municipal utility service, drinking
17.5 	water systems, and other infrastructure
17.6 	damaged by flooding in the area
17.7 	included in DR-1419.  For the purposes
17.8 	of this appropriation, criteria,
17.9 	limitations, and repayment requirements
17.10 	in Minnesota Statutes, sections
17.11 	446A.07, 446A.072, and 446A.081, are
17.12 	waived.
17.13 	(2) $5,385,000 is for a grant to the
17.14 	city of Roseau to relocate the flood
17.15 	damaged city hall, auditorium, library,
17.16 	museum, and police department out of
17.17 	the Roseau River floodway as a result
17.18 	of flooding as declared in DR-1419, and
17.19 	in accordance with Minnesota Statutes,
17.20 	section 16A.86.
17.21 	(b) Capital costs for the projects in
17.22 	paragraph (a), incurred in calendar
17.23 	year 2004 after the effective date of
17.24 	this act are eligible for reimbursement
17.25 	from the grants authorized in paragraph
17.26 	(a).
17.27 		Subd. 4.Lewis and Clark Rural Water System          1,700,000
17.28 	(a) To the public facilities authority
17.29 	for grants to counties, rural water
17.30 	systems, or municipalities served by
17.31 	the Lewis and Clark Rural Water System
17.32 	to acquire land, predesign, design,
17.33 	construct, furnish, and equip one or
17.34 	more rural water facilities that serve
17.35 	southwestern Minnesota.  The grants
17.36 	must be awarded to projects approved by
17.37 	the Lewis and Clark Joint Powers Board.
17.38 	(b) This appropriation is only
17.39 	available when matched by:
17.40 	(1) $8 of federal money; and
17.41 	(2) at least $1 of local money to the
17.42 	system for each $1 of state money to
17.43 	the grant projects under paragraph (a).
17.44 		Subd. 5.North Central Regional
17.45 	Correctional Facility                                  6,000,000
17.46 	For a grant to Cass County to
17.47 	construct, furnish, and equip a
17.48 	publicly owned and operated regional
17.49 	jail on surplus land of the
17.50 	state-operated nursing home, Ah Gwah
17.51 	Ching, in the city of Walker.
17.52 	The state shall own 75 percent of the
17.53 	beds and Cass County shall own 25
17.54 	percent of the beds.  The state must
17.55 	contract with Cass County to operate
17.56 	the facility.
17.57 	The appropriation is not available
17.58 	until the commissioner determines that
17.59 	at least $6,000,000 has been committed
17.60 	to the project from nonstate sources.
18.1 		Subd. 6.Rochester Regional Public
18.2 	Safety Training Center                                  627,000
18.3 	To the commissioner of administration
18.4 	for Phase I of the Rochester Regional
18.5 	Public Safety Training Center to
18.6 	develop a live burn training simulator
18.7 	adjacent to the existing National Guard
18.8 	facility in Rochester.
18.9 	The appropriation is not available
18.10 	until the commissioner determines that
18.11 	an equal amount has been committed to
18.12 	the project from nonstate sources.
18.13 		Subd. 7.Blue Earth Police and Fire Station           642,000
18.14 	To the commissioner of public safety
18.15 	for a grant to the city of Blue Earth
18.16 	to acquire land for and to predesign,
18.17 	design, construct, furnish, and equip a
18.18 	fire and police station.  This
18.19 	appropriation is not available until
18.20 	the commissioner of finance has
18.21 	determined that at least an equal
18.22 	amount has been committed to the
18.23 	project from nonstate sources.
18.24 		Subd. 8.Middle St. Croix River
18.25 	Watershed Management Organization                     1,550,000
18.26 	For a grant to the city of Bayport for
18.27 	the Middle St. Croix River Watershed
18.28 	Management Organization to complete the
18.29 	sewer system extending from Minnesota
18.30 	department of natural resources pond
18.31 	82-310P (the prison pond) in Bayport to
18.32 	the St. Croix River.
18.33 		Subd. 9.City of Rushford                              600,000
18.34 	For a grant, subject to Minnesota
18.35 	Statutes, section 16A.695, to the city
18.36 	of Rushford for construction,
18.37 	renovation, remodeling, and
18.38 	infrastructure for capital improvements
18.39 	to and for the facility to be used by
18.40 	the Rushford Institute for
18.41 	Nanotechnology, Inc.
18.42 		Subd. 10.City of St. Paul                           2,000,000
18.43 	For a grant to the city of St. Paul to
18.44 	acquire land for right-of-way and to
18.45 	complete contamination remediation and
18.46 	construct Phalen Boulevard between
18.47 	Interstate Highway I-35E and Johnson
18.48 	Parkway.
18.49 		Subd. 11.Burnsville Water Treatment                 2,000,000
18.50 	To the public facilities authority for
18.51 	a grant to the city of Burnsville to
18.52 	design, construct, furnish, and equip a
18.53 	water treatment facility that will
18.54 	provide an additional potable water
18.55 	source for the city of Burnsville using
18.56 	water from the Burnsville quarry.  This
18.57 	appropriation is not available until
18.58 	the commissioner of finance has
18.59 	determined that at least $6,000,000 is
19.1 	available in matching funds from
19.2 	nonstate sources.  Amounts spent since
19.3 	January 1, 2002, to plan, design, and
19.4 	construct this project may be counted
19.5 	as part of the nonstate match.

19.6 	Sec. 25. BOND SALE EXPENSES                            590,000
 19.7 	To the commissioner of finance for bond
19.8 	sale expenses under Minnesota Statutes,
19.9 	section 16A.641, subdivision 8.
19.10 	Of this amount, $580,000 is
19.11 	appropriated from the bond proceeds
19.12 	fund and $10,000 is appropriated from
19.13 	the bond proceeds account in the trunk
19.14 	highway fund.

19.15 	Sec. 26. Laws 2003, First Special Session chapter 20,
19.16 	article 1, section 15, is amended to read:
19.17 	Sec. 15BOND SALE SCHEDULE
 19.18 	The commissioner of finance shall
19.19 	schedule the sale of state general
19.20 	obligation bonds so that, during the
19.21 	biennium ending June 30, ~~2005~~ 2007, no
19.22 	more than ~~$673,625,000~~ $760,786,000 
19.23 	will need to be transferred from the
19.24 	general fund to the state bond fund to
19.25 	pay principal and interest due and to
19.26 	become due on outstanding state general
19.27 	obligation bonds.  During the biennium,
19.28 	before each sale of state general
19.29 	obligation bonds, the commissioner of
19.30 	finance shall calculate the amount of
19.31 	debt service payments needed on bonds
19.32 	previously issued and shall estimate
19.33 	the amount of debt service payments
19.34 	that will be needed on the bonds
19.35 	scheduled to be sold.  The commissioner
19.36 	shall adjust the amount of bonds
19.37 	scheduled to be sold so as to remain
19.38 	within the limit set by this section.
19.39 	The amount needed to make the debt
19.40 	service payments is appropriated from
19.41 	the general fund as provided in
19.42 	Minnesota Statutes, section 16A.641.

19.43 	Sec. 27. BOND SALE AUTHORIZATION.
 19.44 		Subdivision 1.Bond proceeds fund. To provide the money
19.45 	appropriated in this act from the bond proceeds fund, the
19.46 	commissioner of finance shall sell and issue bonds of the state
19.47 	in an amount up to $588,442,000 in the manner, upon the terms,
19.48 	and with the effect prescribed by Minnesota Statutes, sections
19.49 	16A.631 to 16A.675, and by the Minnesota Constitution, article
19.50 	XI, sections 4 to 7.
19.51 		Subd. 2.Transportation fund bond proceeds account. To
19.52 	provide the money appropriated in this act from the state
19.53 	transportation fund, the commissioner of finance shall sell and
20.1 	issue bonds of the state in an amount up to $40,000,000 in the
20.2 	manner, upon the terms, and with the effect prescribed by
20.3 	Minnesota Statutes, sections 16A.631 to 16A.675, and by the
20.4 	Minnesota Constitution, article XI, sections 4 to 7.  The
20.5 	proceeds of the bonds, except accrued interest and any premium
20.6 	received on the sale of the bonds, must be credited to a bond
20.7 	proceeds account in the state transportation fund.
20.8 		Subd. 3.Trunk highway fund bond proceeds account. To
20.9 	provide the money appropriated in this act from the trunk
20.10 	highway bond proceeds account in the trunk highway fund, the
20.11 	commissioner of finance shall sell and issue bonds of the state
20.12 	in an amount up to $10,010,000 in the manner, upon the terms,
20.13 	and with the effect prescribed by Minnesota Statutes, sections
20.14 	167.50 to 167.52, and by the Minnesota Constitution, article
20.15 	XIV, section 11, at the times and in the amount requested by the
20.16 	commissioner of transportation.  The proceeds of the bonds,
20.17 	except accrued interest and any premium received on the sale of
20.18 	the bonds, must be credited to the trunk highway bond proceeds
20.19 	account in the trunk highway fund.

20.20 	Sec. 28. [16A.502] NONSTATE COMMITMENTS TO CAPITAL
20.21 	PROJECTS.
20.22 	(a) A state appropriation or grant for a capital project
20.23 	may require a commitment from nonstate sources.
20.24 	(1) The commitment must be in the amount that when added to
20.25 	the appropriation or grant is sufficient to complete the
20.26 	project;
20.27 	(2) the appropriation or grant is not available until the
20.28 	commitment is determined to be sufficient; and 
20.29 	(3) the commissioner must determine the sufficiency of the
20.30 	commitment.
20.31 	(b) In making the determination, the commissioner must
20.32 	apply generally accepted governmental accounting standards and
20.33 	principles, including those that are particularly applicable to
20.34 	capital projects.

20.35 	Sec. 29. [16A.504] COMMISSIONER, ARCHITECT ASSURANCES.
20.36 	Before releasing state bond proceeds or entering into a
21.1 	grant agreement for construction grants for projects funded with
21.2 	general obligation bonds, the commissioner of finance must work
21.3 	with the state architect to be assured that the project can be
21.4 	delivered for the lowest cost possible and that the project will
21.5 	follow applicable state or local laws.

21.6 	Sec. 30. Minnesota Statutes 2004, section 16A.661, is
21.7 	amended by adding a subdivision to read:
21.8 		Subd. 5a.Budget reserve and cash flow account to reduce
21.9 	levy. Prior to the state auditor making a levy under
21.10 	subdivision 5, the commissioner of finance must use any amounts
21.11 	in the budget reserve and the cash flow account under section
21.12 	16A.152 to pay principal and interest on bonds.  Amounts in the
21.13 	budget reserve and cash flow account are appropriated for that
21.14 	purpose.

21.15 	Sec. 31. Minnesota Statutes 2004, section 16A.662, is
21.16 	amended by adding a subdivision to read:
21.17 		Subd. 7a.Budget reserve and cash flow account to reduce
21.18 	levy. Prior to the state auditor making a levy under
21.19 	subdivision 7, the commissioner of finance must use any amounts
21.20 	in the budget reserve and the cash flow account under section
21.21 	16A.152 to pay principal and interest on bonds.  Amounts in the
21.22 	budget reserve and cash flow account are appropriated for that
21.23 	purpose.

21.24 	Sec. 32. Minnesota Statutes 2004, section 16A.671,
21.25 	subdivision 3, is amended to read:
21.26 		Subd. 3.Definitions.  As used in this section, the terms
21.27 	defined in this subdivision have the meanings given them:
21.28 	(a) "General fund" means all cash and investments from time
21.29 	to time received and held in the treasury, except proceeds of
21.30 	state bonds and amounts received and held in special or
21.31 	dedicated funds created by the Constitution, or by or pursuant
21.32 	to federal laws or regulations, or by bond or trust instruments,
21.33 	pension contracts, or other agreements of the state or its
21.34 	agencies with private persons, entered into under state law.
21.35 	(b) "Maximum current cash flow requirement" means the
21.36 	commissioner's written estimate of the largest of the amounts by
22.1 	which, on a particular designated date in each month of the term
22.2 	for which certificates are to be issued, the sum of (1) the
22.3 	warrants then outstanding against the general fund plus (2)
22.4 	~~those that must be drawn on the fund before the same date in the~~
22.5 	~~following month, in payment of claims due for expenditure under~~
22.6 	~~all appropriations and allotments, will exceed the amount of~~
22.7 	~~cash or cash equivalent assets held in the general fund on the~~
22.8 	~~first of these dates~~ an amount equal to five percent of the
22.9 	actual working capital expenditures from the general fund in the
22.10 	fiscal year immediately preceding the date of the largest of
22.11 	such amounts, will exceed the amount of cash or cash equivalent
22.12 	assets held in the general fund, excluding the proceeds of the
22.13 	certificates to be issued.

22.14 	Sec. 33. Minnesota Statutes 2004, section 116J.571, is
22.15 	amended to read:
22.16 	116J.571 CREATION OF ACCOUNTS.
22.17 	Two ~~greater Minnesota~~ redevelopment accounts are created,
22.18 	one in the general fund and one in the bond proceeds fund.
22.19 	Money in the accounts may be used to make grants as provided in
22.20 	section 116J.575.  Money in the bond proceeds fund may only be
22.21 	used for eligible costs for publicly owned property.  Money in
22.22 	the general fund may be used to pay for the commissioner's costs
22.23 	in reviewing the applications.

22.24 	Sec. 34. Minnesota Statutes 2004, section 116J.572,
22.25 	subdivision 2, is amended to read:
22.26 		Subd. 2.Development authority.  "Development authority"
22.27 	includes a statutory or home rule charter city, county, housing
22.28 	and redevelopment authority, economic development authority, or
22.29 	port authority ~~located outside the seven-county metropolitan~~
22.30 	~~area, as defined in section 473.121, subdivision 2~~.

22.31 	Sec. 35. Minnesota Statutes 2004, section 116J.573,
22.32 	subdivision 1, is amended to read:
22.33 		Subdivision 1.Accounts.  Criteria for use of the
22.34 	accounts created in section 116J.571 must be consistent with and
22.35 	promote the purposes of sections 116J.571 to 116J.575.  They
22.36 	include, but are not limited to:
23.1 	(1) creating and preserving living wage jobs ~~in greater~~
23.2 	~~Minnesota~~;
23.3 	(2) creating incentives for communities to include a full
23.4 	range of housing opportunities;
23.5 	(3) creating incentives for all communities to implement
23.6 	compact, efficient, and mixed-use development; and
23.7 	(4) creating incentives to assist communities in
23.8 	maintaining a unique sense of place by preserving local,
23.9 	cultural assets.

23.10 	Sec. 36. Minnesota Statutes 2004, section 116J.573,
23.11 	subdivision 2, is amended to read:
23.12 		Subd. 2.Projects.  To be eligible for funding by the
23.13 	~~greater Minnesota~~ redevelopment account, a project must:
23.14 	(1) interrelate redevelopment with other public investments
23.15 	in transportation, housing, schools, energy, utilities
23.16 	information infrastructure, and other public services;
23.17 	(2) interrelate affordable housing and employment growth
23.18 	areas;
23.19 	(3) intensify land use that leads to more compact
23.20 	redevelopment;
23.21 	(4) involve redevelopment that mixes incomes of residents
23.22 	in housing, including introducing or reintroducing higher value
23.23 	housing in lower income areas to achieve a mix of housing
23.24 	opportunities;
23.25 	(5) involve participation from citizens and the business
23.26 	community in the planning and development of the proposed
23.27 	redevelopment plan;
23.28 	(6) encourage public infrastructure investments which
23.29 	attract private sector redevelopment investment in commercial,
23.30 	industrial, and residential properties adjacent to public
23.31 	improvements, and provide project area residents with expanded
23.32 	opportunities for private sector employment; or
23.33 	(7) be sustainable at the local level and reduce the
23.34 	probability of future requests for state development,
23.35 	maintenance, or replacement assistance.

23.36 	Sec. 37. Minnesota Statutes 2004, section 116J.573,
24.1 	subdivision 4, is amended to read:
24.2 		Subd. 4.Partnerships.  The commissioner shall give
24.3 	priority to proposals using innovative financial partnerships
24.4 	between government, private for-profit, and nonprofit sectors ~~as~~
24.5 	~~well as to proposals that meet current tax increment financing~~
24.6 	~~requirements for a redevelopment district and contribute tax~~
24.7 	~~increment financing towards the project~~.

24.8 	Sec. 38. Minnesota Statutes 2004, section 116J.573,
24.9 	subdivision 5, is amended to read:
24.10 		Subd. 5.Annual report.  The commissioner shall prepare
24.11 	and submit to the legislature an annual report on the ~~greater~~
24.12 	~~Minnesota~~ redevelopment account.  The report must include
24.13 	information on the amount of money in the account, the amount
24.14 	distributed, to whom the grants were distributed and for what
24.15 	purposes, and an evaluation of the effectiveness of the projects
24.16 	funded in meeting the policies and goals of the program.

24.17 	Sec. 39. Minnesota Statutes 2004, section 116J.575,
24.18 	subdivision 1, is amended to read:
24.19 		Subdivision 1.Commissioner discretion.  The commissioner
24.20 	may make a grant for up to 50 percent of the eligible costs of a
24.21 	project. The commissioner shall, in each grant cycle, make
24.22 	grants so that 50 percent of the dollar value of grants for that
24.23 	cycle are for projects located outside of the seven-county
24.24 	metropolitan area as defined in section 473.121, subdivision 2,
24.25 	and 50 percent are for projects located within the seven-county
24.26 	metropolitan area. This allocation of grant funds does not apply
24.27 	for any grant cycle in which the applications received by the
24.28 	application deadline are insufficient to permit the equal
24.29 	division of grants between metropolitan and nonmetropolitan
24.30 	projects.The determination of whether to make a grant for a
24.31 	site is within the discretion of the commissioner, subject to
24.32 	this section and sections 116J.571 to 116J.574 and available
24.33 	unencumbered money in the ~~greater Minnesota~~ redevelopment
24.34 	account.  The commissioner's decisions and application of the
24.35 	priorities under this section are not subject to judicial
24.36 	review, except for abuse of discretion.

25.1 	Sec. 40. Minnesota Statutes 2004, section 116P.08,
25.2 	subdivision 2, is amended to read:
25.3 		Subd. 2.Exceptions.  Money from the trust fund may not
25.4 	be spent for:
25.5 	(1) purposes of environmental compensation and liability
25.6 	under chapter 115B and response actions under chapter 115C;
25.7 	(2) ~~purposes of municipal water pollution control under the~~
25.8 	~~authority of chapters 115 and 116;~~
25.9 	~~(3)~~ costs associated with the decommissioning of nuclear
25.10 	power plants;
25.11 	~~(4)~~ (3) hazardous waste disposal facilities;
25.12 	~~(5)~~ (4) solid waste disposal facilities; or
25.13 	~~(6)~~ (5) projects or purposes inconsistent with the
25.14 	strategic plan.

25.15 	Sec. 41. Minnesota Statutes 2004, section 136F.60, is
25.16 	amended by adding a subdivision to read:
25.17 		Subd. 5.Disposition of surplus property. (a) The board
25.18 	may declare state lands under its control that are no longer
25.19 	needed by the Minnesota State Colleges and Universities system
25.20 	to be surplus and may offer them for public sale in a manner
25.21 	consistent with the procedures set forth in sections 94.10 to
25.22 	94.14 for disposition of state lands by the commissioner of
25.23 	administration.  The parcels must not be exchanged or
25.24 	transferred for no or nominal consideration.
25.25 	(b) Proceeds from the sale or disposition of land under
25.26 	this subdivision, after paying all expenses incurred in selling
25.27 	or disposing of the land and then paying any amounts due under
25.28 	section 16A.695, shall be appropriated to the board for use for
25.29 	capital projects at the institution which was responsible for
25.30 	management of the land.

25.31 	Sec. 42. Minnesota Statutes 2004, section 446A.14,
25.32 	subdivision 1, is amended to read:
25.33 		Subdivision 1.Agreements.  (a) The authority may enter
25.34 	into interest rate exchange or swap agreements, hedges, forward
25.35 	purchase or sale agreements, loan sale or pooling agreements or
25.36 	trusts, or other similar agreements in connection with:
26.1 	(1) the issuance or proposed issuance of bonds;
26.2 	(2) the making, proposed making, or sale of loans or other
26.3 	financial assistance or investments;
26.4 	(3) outstanding bonds, loans, or other financial
26.5 	assistance; or
26.6 	(4) existing similar agreements.
26.7 	(b) The agreements authorized by this subdivision include,
26.8 	without limitation, master agreements, options or contracts to
26.9 	enter into those agreements in the future and related
26.10 	agreements, including, without limitation, agreements to provide
26.11 	credit enhancement, liquidity, or remarketing; valuation;
26.12 	monitoring; or administrative services currently or in the
26.13 	future.  However, the term of an option to enter into an
26.14 	interest rate swap, exchange, hedge, or other similar agreement
26.15 	and the term of a contract to sell, buy, or refund bonds in the
26.16 	future must not exceed five years and the authorization of the
26.17 	authority to enter into option agreements with respect to
26.18 	interest rate swap agreements expires on December 31, 2008;
26.19 	provided that the option agreements entered into prior to that
26.20 	date remain valid agreements of the authority after that date.
26.21 	(c) The agreements authorized by this subdivision or
26.22 	supplements to master agreements may be entered into on the
26.23 	basis of negotiation with a qualified third party or through a
26.24 	competitive proposal process on terms and conditions and with
26.25 	covenants and provisions approved by the authority and may
26.26 	include, without limitation:
26.27 	(1) provisions establishing reserves;
26.28 	(2) pledging assets or revenues of the authority for
26.29 	current or other payments or termination payments;
26.30 	(3) contracting with the other parties to the agreements to
26.31 	provide for the custody, collection, securing, investment, and
26.32 	payment of money of the authority or money held in trust; or
26.33 	(4) requiring the issuance of bonds or entering into loans
26.34 	or other agreements authorized by this subdivision in the future.
26.35 	(d) Subject to the terms of the agreement and other
26.36 	agreements of the authority with bondholders or other third
27.1 	parties, the agreements authorized by this subdivision may be
27.2 	general or limited obligations of the authority payable from all
27.3 	available or certain specified funds appropriated to the
27.4 	authority.  The agreements authorized by this subdivision do not
27.5 	constitute debt of the authority for the purposes of the limits
27.6 	on bonds or notes of the authority set forth in section 446A.12,
27.7 	subdivision 1.
27.8 	(e) The authority may issue bonds to provide funds to make
27.9 	payments, including, without limitation, termination payments
27.10 	pursuant to an agreement authorized by this subdivision.
27.11 	(f) The aggregate notional amount of interest rate swap or
27.12 	exchange agreements in effect at any time must not exceed an
27.13 	amount equal to ten percent of the aggregate principal amount of
27.14 	bonds the authority is authorized to have outstanding pursuant
27.15 	to section 446A.12, subdivision 1, including the notional amount
27.16 	of interest rate swap or exchange agreements with respect to
27.17 	which a reversing agreement has been entered into, the effect of
27.18 	which is to terminate the original agreement or a portion
27.19 	thereof, and reversing agreements with respect to all or a
27.20 	portion of existing agreements.
27.21 	(g) For the purposes of this section, the following terms
27.22 	have the following meanings unless the context clearly requires
27.23 	otherwise:
27.24 	(1) "agreement to provide remarketing" means an agreement
27.25 	with a third party to provide the service, as agent of for the
27.26 	authority, of marketing bonds or other outstanding obligations
27.27 	where the bonds are subject to tender to the authority for
27.28 	purchase by the authority;
27.29 	(2) "credit enhancement" means additional third-party
27.30 	security or sources of repayment for obligations of another
27.31 	party, and may include, without limitation, guaranties,
27.32 	insurance, letters of credit, lines of credit, standby bond
27.33 	purchase agreements, or agreements pledging collateral;
27.34 	(3) "hedge" means an agreement entered into with a third
27.35 	party for the purpose of trying to limit, offset, or compensate
27.36 	for possible losses, expenses, or outcomes, in whole or in part,
28.1 	from particular actions, agreements, or obligations;
28.2 	(4) "interest rate swap agreement" or "interest rate
28.3 	exchange agreement" means an agreement between two or more
28.4 	parties where two or more parties agree to pay to each other,
28.5 	for a stated period of time, interest on a stated amount at
28.6 	different rates, or rates calculated on a different basis, which
28.7 	agreement does not include the borrowing of money or the
28.8 	obligation to pay the stated amount, and may include, without
28.9 	limitation, agreements where one party agrees to pay a fixed
28.10 	rate and the other agrees to pay a variable rate, or where one
28.11 	party agrees to pay a variable rate determined in one manner and
28.12 	the other party agrees to pay a variable rate determined in
28.13 	another manner;
28.14 	(5) "liquidity" means a form of credit enhancement entered
28.15 	into for the purpose of providing money on demand or within a
28.16 	specified period of time to meet obligations which may arise and
28.17 	be payable, for which a party determines that it is not
28.18 	desirable, practicable, or possible to keep funds or readily
28.19 	saleable short-term investments available at all times such
28.20 	obligations to pay may arise or in the full amount of the
28.21 	potential obligation; and 
28.22 	(6) "master agreement" means any agreement pursuant to
28.23 	which one or more separate interest rate swaps, transactions, or
28.24 	other agreements may be entered into from time to time or
28.25 	pursuant to which separately stated terms and conditions
28.26 	intended to cover multiple transactions or agreements are set
28.27 	forth.

28.28 	Sec. 43. Laws 1998, chapter 404, section 23, subdivision
28.29 	17, as amended by Laws 1999, chapter 20, section 1, is amended
28.30 	to read:
28.31 		Subd. 17.Paramount Arts District
28.32 	Regional Arts Center                                    750,000
28.33 	(a) To the commissioner of
28.34 	administration for a grant to the city
28.35 	of St. Cloud ~~Housing and Redevelopment~~
28.36 	~~Authority~~ to construct, furnish, and
28.37 	equip the Paramount Arts District
28.38 	Regional Arts Center, subject to
28.39 	Minnesota Statutes, section 16A.695.
28.40 	This appropriation is not available
29.1 	until the commissioner has determined
29.2 	that the necessary additional financing
29.3 	to complete at least a $5,400,000
29.4 	project has been committed by nonstate
29.5 	sources.
29.6 	(b) The Housing and Redevelopment
29.7 	Authority must effect the transfer as
29.8 	otherwise required or permitted by
29.9 	law.  Once the transfer is effected,
29.10 	the city is the successor to the
29.11 	Housing and Redevelopment Authority for
29.12 	the purposes of the grant and Minnesota
29.13 	Statutes, section 16A.695.

29.14 	Sec. 44. Laws 2002, chapter 393, section 19, subdivision
29.15 	2, is amended to read:
29.16 		Subd. 2.Northwest Busway                           20,000,000
29.17 	To design and construct a portion of a 
29.18 	busway in the northwest metropolitan
29.19 	area ~~between downtown Minneapolis and~~
29.20 	~~Rogers~~. Funds may be used to design
29.21 	all or a portion of the busway from
29.22 	downtown Minneapolis to Rogers along
29.23 	CSAH 81; to design, construct, and
29.24 	equip up to 19 stations, including 36
29.25 	passenger shelters in Minneapolis,
29.26 	Robbinsdale, and Crystal as well as at
29.27 	Hennepin Technical College and North
29.28 	Hennepin Community College located in
29.29 	Brooklyn Park; to acquire necessary
29.30 	rights-of-way in Minneapolis,
29.31 	Robbinsdale, Crystal, and Brooklyn Park
29.32 	to accommodate station and park and
29.33 	ride locations, and adjacent to CSAH 81
29.34 	between Highway 100 and Brooklyn
29.35 	Boulevard to accommodate queue jump
29.36 	lanes for buses; to design and
29.37 	construct two park and ride facilities
29.38 	adjacent to CSAH 81 at its
29.39 	intersections with 63rd Avenue North
29.40 	and with Brooklyn Boulevard; and to
29.41 	design and construct queue jump lanes
29.42 	between Highway 100 and Brooklyn
29.43 	Boulevard.This appropriation is
29.44 	contingent on $12,000,000 from Hennepin
29.45 	County for roadway design, property
29.46 	acquisition, and road construction
29.47 	between Lowry Avenue in Minneapolis and
29.48 	Bass Lake Road in Crystal and
29.49 	$5,000,000 from the Metropolitan
29.50 	Council for ~~the project~~ fleet
29.51 	acquisition and station equipment.
29.52 	~~Total funding from all sources may be~~
29.53 	~~used for roadway design,~~
29.54 	~~reconstruction, acquisition of land and~~
29.55 	~~right-of-way, and to design, construct,~~
29.56 	~~furnish, and equip transit stations and~~
29.57 	~~park and rides.~~To implement this
29.58 	project, the Metropolitan Council has
29.59 	the powers that Hennepin County has to
29.60 	use design-build under ~~new~~ Minnesota
29.61 	Statutes, sections 383B.158 to
29.62 	383B.1586~~, may be used for implementing~~
29.63 	~~this project~~.

29.64 	Sec. 45. MAXIMUM EFFORT CAPITAL LOAN FORGIVEN; EAST
30.1 	CENTRAL.
 30.2 		Subdivision 1.Sale requirements. Independent School
30.3 	District No. 2580, East Central, may sell its middle school
30.4 	building in accordance with Minnesota Statutes, section
30.5 	16A.695.  The net proceeds from the sale of the property must be
30.6 	paid to the commissioner of finance and deposited in the state
30.7 	bond fund.
30.8 		Subd. 2.Outstanding loan balance forgiven. Any
30.9 	remaining outstanding balance on the maximum effort capital loan
30.10 	issued in January 1982 to former Independent School District No.
30.11 	566, Askov, after the application of the sale proceeds according
30.12 	to subdivision 1, is forgiven.

30.13 	Sec. 46. DNR; PLAN FOR LAND MANAGEMENT.
 30.14 	The commissioner of natural resources must prepare a plan
30.15 	for development of a comprehensive land management plan by
30.16 	January 15, 2006, and submit it to the chairs of the committees
30.17 	in the house and senate with jurisdiction over environmental
30.18 	policy and finance, and capital investment.

30.19 	Sec. 47. STILLWATER LEVEE FLOOD CONTROL PROJECT.
 30.20 	Notwithstanding the grant expiration date of June 30, 2002,
30.21 	the commissioner of natural resources shall extend until June
30.22 	30, 2006, the expiration date of a grant made to the city of
30.23 	Stillwater under Minnesota Statutes, section 103F.161, and
30.24 	matching certain federal appropriations for flood hazard
30.25 	mitigation.

30.26 	Sec. 48. RELEASE FUNDS FOR RICE STREET BRIDGE OVER
30.27 	I-694.
 30.28 	The commissioner of transportation must release by December
30.29 	31, 2005, the $7,500,000 for the Rice Street bridge over I-694
30.30 	in Ramsey County, committed by the Department of Transportation
30.31 	in a memorandum of understanding between the department and
30.32 	Ramsey County.

30.33 	Sec. 49. OUTDOOR LIGHTING PURCHASE.
 30.34 	All purchasing of outdoor lighting fixtures using funds
30.35 	appropriated under this act must give consideration to
30.36 	maximizing energy conservation and savings, reducing glare,
31.1 	minimizing light pollution, and preserving the natural night
31.2 	environment.

31.3 	Sec. 50. UNIVERSITY OF MINNESOTA; DULUTH PARKING.
 31.4 	The Board of Regents of the University of Minnesota is
31.5 	encouraged to expand the parking facilities at the University of
31.6 	Minnesota, Duluth campus through the purchase of land and
31.7 	property from willing sellers.

31.8 	Sec. 51. REPEALER.
 31.9 	Minnesota Statutes 2004, section 16B.325, is repealed.

31.10 	Sec. 52. EFFECTIVE DATE.
 31.11 	Except as otherwise provided, this article is effective the
31.12 	day following final enactment.

31.13 	ARTICLE 2
31.14 	ADJUSTMENT OF GENERAL
31.15 	OBLIGATION BOND AUTHORIZATIONS

31.16 	Section 1. TABLE OF ORIGINAL AND ADJUSTED
31.17 	AUTHORIZATIONS.
 31.18 	Column A lists the citation to each law authorizing general
31.19 	obligation bonds since Laws 1983, chapter 323, section 6, to
31.20 	which a further adjustment is being made in this section.
31.21 	The original authorization amount in each law is shown in
31.22 	column B opposite the citation of the law it appears in.
31.23 	The original authorization amount in column B is hereby
31.24 	adjusted to the amount shown in column C.  The adjustments
31.25 	resulting in the column C amount reflect specific changes to an
31.26 	authorization in law, executive vetoes sustained or not
31.27 	challenged, administrative action reflecting cancellation and
31.28 	abandonment of all or the unused balance from specific projects
31.29 	for which the proceeds of authorized bonds were intended to be
31.30 	used, and other action pursuant to law resulting in the adjusted
31.31 	authorizations shown in column C.  The amounts shown in column C
31.32 	are validated as the lawful adjusted authorization for the cited
31.33 	law as of April 1, 2004, for all purposes for which the
31.34 	authorization is required or used.
31.35 	Column A Column B Column C
31.36 	     L 1983, c 323, s 6 $ 30,000,000 $ 29,935,000
32.1 	     L 1987, c 400, s 25,
32.2 	     subd 1 370,972,200 369,560,500
32.3 	     L 1987, c 400, s 25,
32.4 	     subd 5 66,747,000 66,740,000
32.5 	     L 1989, c 300, art 1,
32.6 	     s 23, subd 1 142,585,000 135,060,000
32.7 	     L 1991, c 354, art 11,
32.8 	     s 2, subd 1 12,000,000 11,360,000
32.9 	     L 1992, c 558, s 28,
32.10 	     subd 1 231,695,000 219,085,000
32.11 	     L 1992, c 558, s 28,
32.12 	     subd 3 17,500,000 17,368,000
32.13 	     L 1993, c 373, s 19,
32.14 	     subd 1 54,640,000 53,355,000
32.15 	     L 1993, c 373, s 19,
32.16 	     subd 2 9,900,000 9,480,000
32.17 	     L 1994, c 643, s 31,
32.18 	     subd 1 573,385,000 564,650,524
32.19 	     L 1994, c 643, s 31,
32.20 	     subd 2 45,000,000 34,820,000
32.21 	     L 1995, 1SS c 2, s 14,
32.22 	     subd 1 5,630,000 5,590,000
32.23 	     L 1996, c 463, s 27,
32.24 	     subd 1 597,110,000 549,215,089
32.25 	     L 1997, c 246, s 10,
32.26 	     subd 1 86,625,000 86,191,283
32.27 	     L 1997, 2SS c 2, s 12 55,305,000 38,308,055
32.28 	     L 1998, c 404, s 27,
32.29 	     subd 1 463,795,000 104,478,675
32.30 	     L 1999, c 240, art 1,
32.31 	     s 13, subd 1 139,510,000 111,905,000
32.32 	     L 1999, c 240, art 1,
32.33 	     s 13, subd 2 10,440,000 -0-
32.34 	     L 1999, c 240, art 2,
32.35 	     s 16, subd 1 372,400,000 367,418,000
32.36 	     L 2000, c 492, art 1,
33.1 	     s 26, subd 1 426,870,000 487,730,000
33.2 	     L 2001, 1SS c 12, s 11,
33.3 	     subd 1 99,205,000 98,205,000
33.4 	     L 2002, c 393, s 30,
33.5 	     subd 1 920,235,000 567,312,000 

33.6 	Sec. 2. EFFECTIVE DATE.
 33.7 	This article is effective the day following final enactment.