1.1                          A bill for an act 
  1.2             relating to state government; authorizing spending to 
  1.3             acquire and to better public land and buildings and 
  1.4             other public improvements of a capital nature with 
  1.5             certain conditions; appropriating money; amending 
  1.6             Minnesota Statutes 1996, sections 16A.105; 16A.11, 
  1.7             subdivision 3a; Minnesota Statutes 1997 Supplement, 
  1.8             section 16A.641, subdivision 4; amending Laws 1994, 
  1.9             chapter 643, section 2, subdivision 13; Laws 1997, 
  1.10            chapter 202, article 1, section 35, as amended; 
  1.11            proposing coding for new law in Minnesota Statutes, 
  1.12            chapter 16A. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14  Section 1.  [STATE GOVERNMENT; APPROPRIATIONS.] 
  1.15     The sums in the column under "APPROPRIATIONS" are 
  1.16  appropriated from the general fund, or another named fund, to 
  1.17  the state agencies or officials indicated, to be spent to 
  1.18  acquire and to better public land and buildings and other public 
  1.19  improvements of a capital nature, as specified in this act.  
  1.20                          SUMMARY BY FUND 
  1.21  General Fund                                         55,710,000 
  1.22  Trunk Highway Fund                                   16,423,000
  1.23  Sec. 2.  ADMINISTRATION 
  1.24  Subdivision 1.  To the commissioner
  1.25  of administration for the purposes
  1.26  specified in this section                            54,633,000
  1.27  Subd. 2.  Capitol Square
  1.28  Building Demolition                                   3,464,000
  1.29  To demolish the Capitol Square Building 
  1.30  in St. Paul, relocate the department of 
  1.31  children, families, and learning (CFL), 
  1.32  and the higher education services 
  2.1   office (HESO), convert the existing 
  2.2   site to temporary parking until a new 
  2.3   state-owned facility can be 
  2.4   constructed, and conduct a predesign 
  2.5   study of future facilities for CFL and 
  2.6   HESO.  
  2.7   Subd. 3.  Electrical Utility
  2.8   Infrastructure                                        5,361,000
  2.9   To upgrade the primary electrical 
  2.10  distribution system in the Capitol 
  2.11  complex and to upgrade the mechanical 
  2.12  infrastructure in the east Capitol 
  2.13  area.  This appropriation is exempt 
  2.14  from the requirements of Minnesota 
  2.15  Statutes, section 16B.335. 
  2.16  Subd. 4.  Capitol Security and
  2.17  Plant Management Facility Predesign                      45,000
  2.18  To conduct a predesign of a new 
  2.19  facility for the department of public 
  2.20  safety's capitol security division and 
  2.21  the department of administration's 
  2.22  plant management division. 
  2.23  Subd. 5.  Capital Asset
  2.24  Preservation and Replacement (CAPRA)                 15,000,000
  2.25  To be spent in accordance with 
  2.26  Minnesota Statutes, section 16A.632.  
  2.27  The commissioner of administration, in 
  2.28  cooperation with the commissioner of 
  2.29  finance, president of the University of 
  2.30  Minnesota, and chancellor of the 
  2.31  Minnesota state colleges and 
  2.32  universities, shall review how state 
  2.33  agencies and state higher education 
  2.34  institutions plan and budget for 
  2.35  ongoing asset preservation needs in 
  2.36  capital and operating budgets, examine 
  2.37  alternative methodologies and formulas 
  2.38  for future agency requests, and report 
  2.39  the commissioner's findings by January 
  2.40  15, 1999, to the chairs of the senate 
  2.41  committees on finance and the house of 
  2.42  representatives committees on ways and 
  2.43  means and capital investment. 
  2.44  The legislature intends to use the 
  2.45  report in considering future capital 
  2.46  and operating appropriations to state 
  2.47  agencies and state higher education 
  2.48  institutions for asset preservation, 
  2.49  repair, and replacement budgets. 
  2.50  Subd. 6.  Transportation
  2.51  Building Renovation                                  15,775,000
  2.52  To complete renovation and life safety 
  2.53  improvements to the transportation 
  2.54  building in the Capitol complex.  This 
  2.55  appropriation is from the trunk highway 
  2.56  fund and is the final state 
  2.57  appropriation for this project. 
  2.58  Subd. 7.  Agency Relocation                           3,141,000 
  2.59  $648,000 is from the trunk highway fund 
  3.1   for relocation of a portion of the 
  3.2   department of transportation offices 
  3.3   during the final phase of renovation to 
  3.4   the department of transportation 
  3.5   building in the Capitol complex. 
  3.6   $2,493,000 is for relocation of state 
  3.7   agencies as determined by the 
  3.8   commissioner of administration. 
  3.9   The commissioner of administration 
  3.10  shall study the possibility of 
  3.11  acquiring property on the southwest 
  3.12  corner of Rice Street and University 
  3.13  Avenue to serve as the location for a 
  3.14  state office building to house the 
  3.15  department of commerce and other 
  3.16  agencies that need to relocate. 
  3.17  Subd. 8.  Department of
  3.18  Revenue Relocation                                    5,354,000
  3.19  To relocate the department of revenue 
  3.20  from a leased facility to a new 
  3.21  state-owned facility in the Capitol 
  3.22  complex.  This appropriation includes 
  3.23  staging equipment and furnishings 
  3.24  necessary to complete the relocation 
  3.25  and to continue critical operations at 
  3.26  the new facility. 
  3.27  Subd. 9.  Ely Revenue  
  3.28  Building                                              1,643,000
  3.29  This appropriation is to predesign, 
  3.30  design, construct, furnish, and equip a 
  3.31  new building for the department of 
  3.32  revenue's Minnesota collection 
  3.33  enterprise operations in Ely.  The 
  3.34  appropriation of $650,000 in Laws 1997, 
  3.35  chapter 202, article 1, section 12, 
  3.36  subdivision 3, to acquire the building 
  3.37  in Ely currently used by the department 
  3.38  of revenue is canceled. 
  3.39  Subd. 10.  Minnesota African-
  3.40  American Performing Arts Center                       4,100,000
  3.41  This appropriation is to make a grant 
  3.42  to the city of St. Paul to predesign, 
  3.43  design, construct, furnish, and equip 
  3.44  the Minnesota African-American 
  3.45  performing arts and education center.  
  3.46  The city of St. Paul may contract with 
  3.47  a nonprofit organization to operate the 
  3.48  center, subject to Minnesota Statutes, 
  3.49  section 16A.695. 
  3.50  Subd. 11.  Paramount Arts District
  3.51  Regional Arts Center                                    750,000
  3.52  For a grant to the city of St. Cloud to 
  3.53  construct, furnish, and equip the 
  3.54  paramount arts district regional arts 
  3.55  center, subject to Minnesota Statutes, 
  3.56  section 16A.695.  This appropriation is 
  3.57  not available until the commissioner 
  3.58  has determined that the necessary 
  3.59  additional financing to complete a 
  3.60  $5,400,000 project has been committed 
  3.61  by nonstate sources.  
  4.1   Sec. 3.  CAPITOL AREA ARCHITECTURAL AND
  4.2   PLANNING BOARD 
  4.3   Subdivision 1.  To the commissioner
  4.4   of administration for the purposes
  4.5   specified in this section.  Appropriations
  4.6   in this section are exempt from the
  4.7   requirements of Minnesota Statutes,
  4.8   section 16B.335                                       9,463,000
  4.9   Subd. 2.  Capitol Building
  4.10  Structural Stabilization                              6,673,000
  4.11  To stabilize the Capitol building's 
  4.12  structure and provide related facility 
  4.13  improvements. 
  4.14  Subd. 3.  Capitol Building Accessibility              1,344,000 
  4.15  To design, construct, renovate, and 
  4.16  replace exterior doors on the Capitol's 
  4.17  ground, first, and second floors to 
  4.18  meet code requirements. 
  4.19  Subd. 4.  Security Lighting                             734,000
  4.20  To improve security lighting for 
  4.21  pedestrians parking in lots and ramps 
  4.22  north of the Capitol and, to the extent 
  4.23  money is available, for 
  4.24  pedestrian-scaled lighting on the mall 
  4.25  south of the Capitol. 
  4.26  Subd. 5.  Statuary Restoration                          120,000
  4.27  This appropriation is to restore the 
  4.28  statuary immediately in front of the 
  4.29  Capitol. 
  4.30  Subd. 6.  Women's Suffrage
  4.31  Memorial Garden                                         150,000
  4.32  This appropriation is to complete the 
  4.33  Minnesota women's suffrage memorial 
  4.34  garden. 
  4.35  Subd. 7.  Capitol Mall
  4.36  Memorials                                               442,000
  4.37  This appropriation is to repair and 
  4.38  rehabilitate the reflecting pool and 
  4.39  sculpture at the veterans services 
  4.40  building, the plaza and wall of the 
  4.41  Floyd B. Olson memorial, and the paving 
  4.42  stones at the Lindbergh memorial. 
  4.43  Subd. 8.  Greening the Mall                                    
  4.44  The capitol area architectural and 
  4.45  planning board shall solicit 
  4.46  contributions of labor, trees, and 
  4.47  other landscape materials from 
  4.48  individuals and groups willing to 
  4.49  assist with replacing and increasing 
  4.50  vegetation on the capitol mall in 
  4.51  preparation for the Capitol's 
  4.52  centennial celebration in 2005.  
  4.53  Sec. 4.  AMATEUR SPORTS COMMISSION 
  4.54  Subdivision 1.  To the amateur
  5.1   sports commission for the purposes
  5.2   specified in this section                             6,800,000
  5.3   Subd. 2.  National Sports Center                      3,700,000 
  5.4   This appropriation is exempt from the 
  5.5   requirements of Minnesota Statutes, 
  5.6   section 16B.335. 
  5.7   $1,200,000 is to purchase land adjacent 
  5.8   to the National Sports Center in Blaine 
  5.9   for use as athletic fields. 
  5.10  $2,500,000 is to purchase land for the 
  5.11  National Children's Golf Course in 
  5.12  Blaine.  Application of any chemical 
  5.13  pesticides or fertilizers to the golf 
  5.14  course grounds must be in accordance 
  5.15  with environmentally sound land 
  5.16  management practices. 
  5.17  Subd. 3.  Minneapolis Urban
  5.18  Sports Center                                           600,000
  5.19  For a grant to special school district 
  5.20  No. 1, Minneapolis, to complete funding 
  5.21  for an urban sports facility, to be 
  5.22  owned by the district.  This 
  5.23  appropriation is in addition to the 
  5.24  project appropriation of $3,400,000 in 
  5.25  Laws 1996, chapter 463, section 14, 
  5.26  subdivision 5, paragraph (a), and 
  5.27  subject to the conditions contained 
  5.28  therein. 
  5.29  Subd. 4.  Ice Centers                                 2,500,000
  5.30  $2,500,000 is for grants for ice 
  5.31  centers under Minnesota Statutes, 
  5.32  section 240A.09, of up to $250,000 each.
  5.33  The legislative auditor, if directed by 
  5.34  the legislative audit commission, shall 
  5.35  evaluate the need for additional ice 
  5.36  center grants and whether the ice 
  5.37  centers currently operating or to be 
  5.38  constructed with ice center grants 
  5.39  previously appropriated will be 
  5.40  self-supporting. 
  5.41  Sec. 5.  MILITARY AFFAIRS 
  5.42  Subdivision 1.  To the adjutant
  5.43  general or other named agency for the
  5.44  purposes specified in this section                    1,880,000
  5.45  Subd. 2.  Kitchen Renovation                            880,000 
  5.46  To renovate kitchen facilities at 
  5.47  National Guard training and community 
  5.48  centers in Thief River Falls, Bemidji, 
  5.49  Detroit Lakes, Marshall, Litchfield, 
  5.50  Anoka, Fergus Falls, and Pine City.  
  5.51  This appropriation is exempt from the 
  5.52  requirements of Minnesota Statutes, 
  5.53  section 16B.335. 
  5.54  Subd. 3.  Asset Preservation                            900,000 
  5.55  For asset preservation improvements at 
  5.56  military affairs facilities statewide. 
  6.1   Subd. 4.  Military Affairs/Emergency
  6.2   Management Facility Predesign                           100,000
  6.3   To the commissioner of administration 
  6.4   to predesign a joint military 
  6.5   affairs/emergency management facility.  
  6.6      Sec. 6.  Minnesota Statutes 1996, section 16A.105, is 
  6.7   amended to read: 
  6.8      16A.105 [DEBT CAPACITY FORECAST.] 
  6.9      ~~By December 1 of each even-numbered~~ In February and 
  6.10  November of each year the ~~governor shall submit to the~~ 
  6.11  ~~legislature~~ commissioner shall prepare a debt capacity forecast 
  6.12  to be delivered to the governor and legislature in accordance 
  6.13  with section 16A.103, subdivision 1.  The debt capacity forecast 
  6.14  must include statements of the indebtedness of the state for 
  6.15  bonds, notes, and other forms of long-term general obligation 
  6.16  indebtedness ~~that are not accounted for in proprietary or~~ 
  6.17  ~~fiduciary funds, including general obligation bonds, moral~~ 
  6.18  ~~obligation bonds, revenue bonds, loans, grants payable, and~~ 
  6.19  ~~capital leases~~.  The forecast must show the actual amount of the 
  6.20  debt service for at least the past two completed fiscal years, 
  6.21  and the estimated amount for the current fiscal year and the 
  6.22  next six fiscal years, the debt authorized and unissued, ~~the~~ 
  6.23  ~~condition of the sinking funds,~~ and the borrowing capacity for 
  6.24  the next six fiscal years. 
  6.25     Sec. 7.  Minnesota Statutes 1996, section 16A.11, 
  6.26  subdivision 3a, is amended to read: 
  6.27     Subd. 3a.  [PART THREE:  DETAILED CAPITAL BUDGET.] The 
  6.28  detailed capital budget must include recommendations for capital 
  6.29  projects to be funded during the next six fiscal years.  It must 
  6.30  be submitted with projects ~~rank ordered in two ways:  in order~~ 
  6.31  ~~of importance among all budget projects as determined by the~~ 
  6.32  ~~governor,~~ recommended by the governor and in order of importance 
  6.33  among that agency's requests as determined by the agency 
  6.34  originating the request.  It may include capital requests from 
  6.35  political subdivisions only if the political subdivisions have 
  6.36  completed a predesign that defines the purpose, scope, cost, and 
  6.37  schedule of each project, as provided in section 9. 
  7.1      Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  7.2   16A.641, subdivision 4, is amended to read: 
  7.3      Subd. 4.  [SALE AND ISSUANCE.] State bonds must be sold and 
  7.4   issued upon ~~sealed~~ competitive bids in the manner and on the 
  7.5   terms and conditions determined by the commissioner in 
  7.6   accordance with the laws authorizing them and subject to the 
  7.7   approval of the attorney general, but not subject to chapter 14, 
  7.8   including section 14.386.  For each series, in addition to 
  7.9   provisions required by subdivision 3, the commissioner may 
  7.10  determine:  
  7.11     (1) the time, place, and notice of sale and method of 
  7.12  comparing bids; 
  7.13     (2) the price, not less than par for highway bonds; 
  7.14     (3) the principal amount and date of issue; 
  7.15     (4) the interest rates and payment dates; 
  7.16     (5) the maturity amounts and dates, not more than 20 years 
  7.17  from the date of issue, subject to subdivision 5; 
  7.18     (6) the terms, if any, on which the bonds may or must be 
  7.19  redeemed before maturity, including notice, times, and 
  7.20  redemption prices; and 
  7.21     (7) the form of the bonds and the method of execution, 
  7.22  delivery, payment, registration, conversion, and exchange, in 
  7.23  accordance with section 16A.672. 
  7.24     Sec. 9.  [16A.86] [CAPITAL PROJECT GRANTS TO POLITICAL 
  7.25  SUBDIVISIONS.] 
  7.26     Subdivision 1.  [PROJECTS COVERED.] The capital improvement 
  7.27  projects covered by this section are only those not covered by 
  7.28  another state program of assistance to political subdivisions. 
  7.29     Subd. 2.  [BUDGET REQUEST.] A political subdivision that 
  7.30  requests an appropriation of state money for a local capital 
  7.31  improvement project shall submit the request to the commissioner 
  7.32  of finance.  The request must be submitted in the form and with 
  7.33  the supporting documentation required by the commissioner of 
  7.34  finance.  The supporting documentation must include a predesign 
  7.35  package that defines the purpose, scope, cost, and schedule of 
  7.36  the project.  
  8.1      Subd. 3.  [EVALUATION.] The commissioner shall evaluate all 
  8.2   requests from political subdivisions for state assistance and 
  8.3   give higher priority to requests that meet the following 
  8.4   criteria: 
  8.5      (1) the political subdivision has provided for local, 
  8.6   private, and user financing for the project to the maximum 
  8.7   extent possible; 
  8.8      (2) the project is of strategic value to the state as a 
  8.9   whole; 
  8.10     (3) the project is of regional or statewide significance; 
  8.11     (4) the project will not require new or any additional 
  8.12  state operating subsidies; 
  8.13     (5) the project will not expand the state's role in a new 
  8.14  policy area; and 
  8.15     (6) state funding for the project will not create 
  8.16  inequities among local jurisdictions. 
  8.17     The commissioner's evaluation of each request must be 
  8.18  submitted to the legislature along with the governor's 
  8.19  recommendations under section 16A.11, subdivision 1, whether or 
  8.20  not the governor recommends that the request be funded.  
  8.21     Subd. 4.  [FUNDING.] If the commissioner recommends to the 
  8.22  governor that a project be funded, the amount of funding must be 
  8.23  no more than half the total cost of the project, including 
  8.24  predesign, design, construction, furnishings, and equipment.  
  8.25  The cost of predesign must be paid from nonstate sources. 
  8.26     Subd. 5.  [DESIGN.] Predesign and design of a political 
  8.27  subdivision capital improvement project for which state funding 
  8.28  is provided must comply with section 16B.335. 
  8.29     Sec. 10.  Laws 1994, chapter 643, section 2, subdivision 
  8.30  13, is amended to read: 
  8.31  Subd. 13.  St. Louis County
  8.32  Heritage and Arts Center                                750,000
  8.33  This appropriation is for a grant to 
  8.34  St. Louis county to construct an 
  8.35  addition and improvements to the St. 
  8.36  Louis county heritage and arts center 
  8.37  in Duluth, subject to new Minnesota 
  8.38  Statutes, section 16A.695. 
  8.39  This appropriation is available only as 
  9.1   matched by $2 of nonstate money for 
  9.2   every $1 of state money. 
  9.3      Sec. 11.  Laws 1997, chapter 202, article 1, section 35, as 
  9.4   amended by Laws 1997, chapter 246, section 34, and Laws 1997, 
  9.5   Second Special Session chapter 2, section 24, is amended to read:
  9.6   Sec. 35.  BOND SALE SCHEDULE 
  9.7   The commissioner of finance shall 
  9.8   schedule the sale of state general 
  9.9   obligation bonds so that, during the 
  9.10  biennium ending June 30, 1999, no more 
  9.11  than $565,457,000 will need to be 
  9.12  transferred from the general fund to 
  9.13  the state bond fund to pay principal 
  9.14  and interest due and to become due on 
  9.15  outstanding state general obligation 
  9.16  bonds.  During the biennium, before 
  9.17  each sale of state general obligation 
  9.18  bonds, the commissioner of finance 
  9.19  shall calculate the amount of debt 
  9.20  service payments needed on bonds 
  9.21  previously issued and shall estimate 
  9.22  the amount of debt service payments 
  9.23  that will be needed on the bonds 
  9.24  scheduled to be sold, the commissioner 
  9.25  shall adjust the amount of bonds 
  9.26  scheduled to be sold so as to remain 
  9.27  within the limit set by this section.  
  9.28  The commissioner may use the amount 
  9.29  needed of this appropriation to redeem 
  9.30  and prepay the state general obligation 
  9.31  taxable state various purpose bonds 
  9.32  dated July 1, 1988, and to also pay 
  9.33  expenses related to redeeming and 
  9.34  repaying these bonds.  The amount 
  9.35  needed to make the debt service 
  9.36  payments is appropriated from the 
  9.37  general fund as provided in Minnesota 
  9.38  Statutes, section 16A.641. 
  9.39     Sec. 12.  [EFFECTIVE DATE.] 
  9.40     This act is effective the day following final enactment.