16B.307 ASSET PRESERVATION APPROPRIATIONS.
Subdivision 1. Standards.
Article XI, section 5, clause (a), of the Constitution requires that
state general obligation bonds be issued to finance only the acquisition or betterment of public
land, buildings, and other public improvements of a capital nature. Money appropriated for asset
preservation, whether from state bond proceeds or from other revenue, is subject to the following
(a) An appropriation for asset preservation may not be used to acquire new land nor to
acquire or construct new buildings, additions to buildings, or major new improvements.
(b) An appropriation for asset preservation may be used only for a capital expenditure on a
capital asset previously owned by the state, within the meaning of generally accepted accounting
principles as applied to public expenditures. The commissioner of administration will consult
with the commissioner of finance to the extent necessary to ensure this and will furnish the
commissioner of finance a list of projects to be financed from the account in order of their priority.
The legislature assumes that many projects for preservation and replacement of portions of
existing capital assets will constitute betterments and capital improvements within the meaning of
the Constitution and capital expenditures under generally accepted accounting principles, and will
be financed more efficiently and economically under this section than by direct appropriations
for specific projects.
(c) Categories of projects considered likely to be most needed and appropriate for asset
preservation appropriations are the following:
(1) projects to remove life safety hazards, like building code violations or structural defects.
Notwithstanding paragraph (a), a project in this category may include an addition to an existing
building if it is a required component of the hazard removal project;
(2) projects to eliminate or contain hazardous substances like asbestos or lead paint;
(3) major projects to replace or repair roofs, windows, tuckpointing, mechanical or electrical
systems, utility infrastructure, tunnels, site renovations necessary to support building use, and
structural components necessary to preserve the exterior and interior of existing buildings; and
(4) projects to renovate parking structures.
(d) Up to ten percent of an appropriation subject to this section may be used for design costs
for projects eligible to be funded under this section in anticipation of future asset preservation
Subd. 2. Report.
By January 15 of each year, the commissioner of an agency that has
received an appropriation for asset preservation shall submit to the commissioner of finance,
the chairs of the legislative committees or divisions that currently oversee the appropriations
to the agency, and to the chairs of the senate and house of representatives Capital Investment
Committees, a list of the projects that have been funded with money under this program during
the preceding calendar year, as well as a list of those priority asset preservation projects for which
state bond proceeds fund appropriations will be sought during that year's legislative session.
History: 2006 c 258 s 30