Bill Text: MN HF1752 | 2011-2012 | 87th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Omnibus bonding bill - 2012.

Spectrum: Bipartisan Bill

Status: (Passed) 2012-05-11 - Secretary of State Chapter 293 [HF1752 Detail]

Download: Minnesota-2011-HF1752-Engrossed.html

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A bill for an act

relating to capital improvements; authorizing spending to acquire and better
public land and buildings and for other improvements of a capital nature with
certain conditions; establishing programs; authorizing the sale and issuance of
state bonds; modifying previous appropriations; authorizing Cook County to form
a district for the construction of water facilities and provision of water service;
authorizing the commissioner of natural resources to make certain acquisitions
of land or interests in land; appropriating money; amending Minnesota Statutes
2010, sections 16A.633, by adding a subdivision; 16A.641, subdivision 9;
462A.21, by adding a subdivision; Minnesota Statutes 2011 Supplement,
sections 16A.641, subdivision 7; 16A.96, by adding a subdivision; Laws 2006,
chapter 258, sections 7, subdivision 23, as amended; 17, subdivision 3; Laws
2008, chapter 179, sections 7, subdivision 27, as amended; 17, subdivision 4; 18,
subdivision 3, as amended; 19, subdivision 4, as amended; 21, subdivision 15,
as amended; Laws 2009, chapter 93, article 1, section 12, subdivision 2; Laws
2010, chapter 189, sections 18, subdivision 5; 24, subdivision 3; Laws 2011,
First Special Session chapter 12, sections 3, subdivisions 7, 8; 14, subdivision
2; 19; 22; proposing coding for new law in Minnesota Statutes, chapters 15B;
116J; 462A; repealing Laws 2011, chapter 107, section 101; Minnesota Rules,
part 8895.0700, subpart 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

The sums shown in the column under "Appropriations" are appropriated from the
bond proceeds fund, or another named fund, to the state agencies or officials indicated,
to be spent for public purposes. Appropriations of bond proceeds must be spent as
authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
and better public land and buildings and other public improvements of a capital nature or
as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j),
or article XIV. Unless otherwise specified, money appropriated in this act for a capital
program or project may be used to pay state agency staff costs that are attributed directly
to the capital program or project in accordance with accounting policies adopted by the
commissioner of management and budget. Unless otherwise specified, the appropriations
in this act are available until the project is completed or abandoned subject to Minnesota
Statutes, section 16A.642.

	SUMMARY
	University of Minnesota	$	64,060,000
	Minnesota State Colleges and Universities		132,126,000
	Education		1,000,000
	Minnesota State Academies		1,000,000
	Perpich Center for Arts Education		263,000
	Natural Resources		46,500,000
	Pollution Control Agency		2,000,000
	Board of Water and Soil Resources		12,000,000
	Agriculture		706,000
	Rural Finance Authority		33,000,000
	Zoological Garden		4,000,000
	Administration		50,555,000
	Amateur Sports		375,000
	Military Affairs		23,500,000
	Transportation		49,400,000
	Metropolitan Council		12,836,000
	Human Services		5,683,000
	Veterans Affairs		7,416,000
	Corrections		9,128,000
	Employment and Economic Development		78,500,000
	Public Facilities Authority		23,500,000
	Housing Finance Agency		5,500,000
	Minnesota Historical Society		3,250,000
	Bond Sale Expenses		560,000
	TOTAL	$	566,858,000
	Bond Proceeds Fund (General Fund Debt Service)		456,483,000
	Bond Proceeds Fund (User Financed Debt Service)		70,375,000
	State Transportation Fund (General Fund Debt Service)		40,000,000

APPROPRIATIONS

Sec. 2. UNIVERSITY OF MINNESOTA

Subdivision 1.Total Appropriation

$

64,060,000

To the Board of Regents of the University
of Minnesota for the purposes specified in
this section.

Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)

50,000,000

To be spent in accordance with Minnesota
Statutes, section 135A.046.

Subd. 3.Twin Cities Campus

Combined Heat and Power Plant

10,000,000

To predesign and design and initiate
infrastructure improvements for the
renovation of the Old Main Steam Plant
facility on the Twin Cities campus.

Subd. 4.Itasca Biological Station

Itasca Facility Improvements

4,060,000

To design, construct, furnish, and equip a new
technology-rich biological laboratory and
classroom facility, and to design, construct,
furnish, and equip the renovation of the
historic Lakeside Lab and to remove obsolete
single-function buildings at the University of
Minnesota facility in Itasca State Park.

Subd. 5.University Share

Except for Higher Education Asset
Preservation and Replacement (HEAPR)
under subdivision 2, the appropriations in this
section are intended to cover approximately
two-thirds of the cost of each project. The
remaining costs must be paid from university
sources.

Subd. 6.Unspent Appropriations

Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the Board of Regents must use
any money remaining in the appropriation
for that project for HEAPR under Minnesota
Statutes, section 135A.046. The Board
of Regents must report by February 1 of
each even-numbered year to the chairs of
the house of representatives and senate
committees with jurisdiction over capital
investment and higher education finance, and
to the chairs of the house of representatives
Ways and Means Committee and the senate
Finance Committee, on how the remaining
money has been allocated or spent.

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1.Total Appropriation

$

132,126,000

To the Board of Trustees of the Minnesota
State Colleges and Universities for the
purposes specified in this section.

Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)

20,000,000

For the purposes specified in Minnesota
Statutes, section 135A.046, including safety
and statutory compliance, building envelope
integrity, mechanical systems, and space
restoration.

Subd. 3.Anoka-Ramsey Community College, Coon Rapids

Bioscience and Allied Health Addition and Renovation

980,000

To complete design for the construction of a
Bioscience and Allied Health addition and to
design, renovate, and equip classrooms and
related space.

Subd. 4.Bemidji State University

Business Building Addition, Renovation Design, Demolition

3,303,000

To abate and demolish Maple Hall and
Sanford Hall, and to complete design for the
renovation of Decker Hall, Hobson Hall,
and Memorial Hall into multiuse classrooms
and study spaces, including replacing the
HVAC system and constructing an addition
to Memorial Hall for better accessibility.

Subd. 5.Century College

Classroom Addition

5,000,000

To complete design of and to construct,
renovate, furnish, and equip classrooms and
related spaces.

Subd. 6.Dakota County Technical College

Transportation and Emerging Technologies Lab Renovation

7,230,000

To complete design of and to renovate,
furnish, and equip transportation and
emerging technologies classrooms,
laboratories, and related spaces.

Subd. 7.Minnesota State University, Mankato

2,065,000

To design a clinical science building at
Minnesota State University, Mankato.

Subd. 8.Minneapolis Community and Technical College

Workforce Program Renovation

13,389,000

To complete design of and to renovate,
furnish, and equip instructional space,
support space, and infrastructure for
workforce programs.

Subd. 9.North Hennepin Community College

Bioscience and Health Careers Addition

26,292,000

To complete design of and to construct,
furnish, and equip Bioscience and Health
Careers laboratories, classrooms, and related
spaces.

Subd. 10.Northland Community and Technical College

Aviation Maintenance Facility Expansion

300,000

To design the expansion and renovation of the
aviation maintenance facilities at Northland
Community and Technical College.

Subd. 11.Ridgewater College, Willmar

Technical Instruction Lab Renovation

13,851,000

To design, renovate, furnish, and equip
classroom, student service, instructional
lab, and related spaces and to demolish the
Administration Building.

Subd. 12.St. Cloud Technical and Community College

4,000,000

To complete the design of, and to construct,
renovate, furnish, equip, and demolish space
for the medium heavy truck and autobody
program on the St. Cloud Technical and
Community College campus.

Subd. 13.St. Paul College

Health and Science Alliance Center

1,500,000

To design the Health and Science Alliance
Center addition and to design, renovate,
furnish, and equip, existing health spaces.

Subd. 14.Minnesota West Community and Technical College, Worthington

Renovation and Addition

4,606,000

To renovate, furnish, and equip existing
classroom and lab spaces and to design,
construct, furnish, and equip a classroom,
lab, and entryway addition, and replace
HVAC systems.

Subd. 15.Northeast Higher Education District - Itasca Community College

Renovation, Addition, and Demolition

4,549,000

To complete the design of and to renovate,
furnish, and equip existing instructional
and student services spaces, to design,
construct, furnish, and equip an addition with
multipurpose classrooms, and to demolish
Donovan Hall.

Subd. 16.Rochester Community and Technical College

Work Force Center Colocation

8,746,000

To complete the design of and to construct,
furnish, and equip an addition to the
Heintz Center at Rochester Community
and Technical College and to renovate the
heating, ventilating, and air conditioning
systems. The addition will house the
Rochester Area Work Force Center. The
board of trustees must consult with the
commissioner of employment and economic
development on the design of the renovations
and addition. The board must enter into a
lease agreement with the commissioner of
employment and economic development
for use of the work force center. The
lease agreement must provide that lease
payments made by the commissioner will
pay for the college's reasonable costs in
support of the work force center and the
debt service required of the board associated
with the work force center portion of the
project. Notwithstanding the ten-year lease
limit under Minnesota Statutes, section
16B.24, subdivision 6, the commissioner
of administration may enter into a lease
agreement of up to 20 years for the space to
house the Rochester Area Work Force Center
at the Rochester Community and Technical
College.

Subd. 17.South Central College, Faribault

Classroom Renovation and Addition

13,315,000

To complete design of and to renovate,
construct, furnish, and equip classrooms, a
learning resource center, and related spaces,
and laboratories.

Subd. 18.Southwest Minnesota State University, Marshall

Science Lab Renovation

500,000

To complete design for renovation of the
Science and Math building and classroom
spaces and an addition to the Plant Science
building.

Subd. 19.Science, Technology, Engineering, and Math Initiatives

2,500,000

To design, renovate, furnish, and equip
science laboratories at campuses statewide.
Campuses may use internal and nonstate
funds to increase the size of the projects. This
appropriation may be used at the following
campuses: Bemidji State University; Century
College; Inver Hills Community College;
Minnesota State Community and Technical
College, Moorhead; Minnesota State
University, Moorhead; Hibbing Community
College; Itasca Community College; Mesabi
Range Community and Technical College,
Eveleth; and Pine Technical College.

Subd. 20.Debt Service

(a) The Board of Trustees shall pay the
debt service on one-third of the principal
amount of state bonds sold to finance
projects authorized by this section, except
for higher education asset preservation
and replacement, and except that, where a
nonstate match is required, the debt service is
due on a principal amount equal to one-third
of the total project cost, less the match
committed before the bonds are sold. After
each sale of general obligation bonds, the
commissioner of management and budget
shall notify the board of the amounts assessed
for each year for the life of the bonds.
(b) The commissioner of management and
budget shall reduce the board's assessment
each year by one-third of the net income
from investment of general obligation bond
proceeds in proportion to the amount of
principal and interest otherwise required to
be paid by the board. The board shall pay its
resulting net assessment to the commissioner
of management and budget by December
1 each year. If the board fails to make
a payment when due, the commissioner
of management and budget shall reduce
allotments for appropriations from the
general fund otherwise available to the board
and apply the amount of the reduction to
cover the missed debt service payment. The
commissioner of management and budget
shall credit the payments received from the
board to the bond debt service account in
the state bond fund each December 1 before
money is transferred from the general fund
under Minnesota Statutes, section 16A.641,
subdivision 10.

Subd. 21.Unspent Appropriations

(a) Upon substantial completion of a
project authorized in this section and after
written notice to the commissioner of
management and budget, the board must use
any money remaining in the appropriation
for that project for Higher Education Asset
Preservation and Replacement (HEAPR)
under Minnesota Statutes, section 135A.046.
The board must report by February 1 of each
even-numbered year to the chairs of the house
of representatives and senate committees
with jurisdiction over capital investments and
higher education finance, and to the chairs
of the house of representatives Ways and
Means Committee and the senate Finance
Committee, on how the remaining money
has been allocated or spent.
(b) The unspent portion of an appropriation
for a project in this section that is complete
is available for Higher Education Asset
Preservation and Replacement (HEAPR)
under this subdivision at the same campus
as the project for which the original
appropriation was made, and the debt
service requirement under subdivision 20 is
reduced accordingly. Minnesota Statutes,
section 16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.

Sec. 4. EDUCATION

$

1,000,000

To the commissioner of education for library
accessibility and improvement grants under
Minnesota Statutes, section 134.45.

Sec. 5. MINNESOTA STATE ACADEMIES

$

1,000,000

To the commissioner of administration for
asset preservation on both campuses of the
academies, to be spent in accordance with
Minnesota Statutes, section 16B.307.

Sec. 6. PERPICH CENTER FOR ARTS EDUCATION

Subdivision 1.Total Appropriation

$

263,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2.Loading Dock Repair

64,000

To complete design of and repair the loading
dock and dock steps.

Subd. 3.Road Repair

99,000

To complete design and repair roadway.

Subd. 4.Storm Drainage

100,000

To complete design of and install storm
drainage on the northwest corner of campus.

Sec. 7. NATURAL RESOURCES

Subdivision 1.Total Appropriation

$

46,500,000

To the commissioner of natural resources
for the purposes specified in this section.
The appropriations in this section are
subject to the requirements of the natural
resources capital improvement program
under Minnesota Statutes, section 86A.12,
unless this section or the statutes referred
to in this section provide more specific
standards, criteria, or priorities for projects
than Minnesota Statutes, section 86A.12.

Subd. 2.Flood Hazard Mitigation Grants

30,000,000

For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161.
Levee projects, to the extent practicable,
shall meet the state standard of three feet
above the 100-year flood elevation.
Project priorities shall be determined by the
commissioner as appropriate, based on need.
To the extent that the cost of a project
exceeds two percent of the median household
income in the municipality multiplied by the
number of households in the municipality,
this appropriation is also for the local share
of the project.

Subd. 3.Dam Repair, Reconstruction, and Removal

3,000,000

To renovate or remove publicly owned dams.
The commissioner shall determine project
priorities as appropriate under Minnesota
Statutes, sections 103G.511 and 103G.515.

Subd. 4.Roads and Bridges

2,000,000

For the design, reconstruction, resurfacing,
replacement, and construction of publicly
owned DNR-maintained roads, culverts, and
bridges.

Subd. 5.State Forest Land Restoration

2,500,000

To increase reforestation activities to meet
the reforestation requirements of Minnesota
Statutes, section 89.002, subdivision 2,
including planting, seeding, site preparation,
and for timber stand improvement.

Subd. 6.State Parks and Trails Renewal and Development

4,000,000

For renewal, modification, replacement, or
development of buildings and recreational
infrastructure in state parks, state recreation
areas, state trails, small craft harbors/marinas,
fishing pier sites, and state forests.

Subd. 7.Lake Vermillion State Park

2,000,000

For the development of Lake Vermillion
State Park, established under Minnesota
Statutes, section 85.012, subdivision 38a.

Subd. 8.Lake Zumbro

3,000,000

For a grant to Olmsted County for the
removal of sedimentation in Lake Zumbro,
including final engineering, dredging, and
dredged soil disposal from the sites identified
in the Preliminary Engineering Report
for Dredging Lake Zumbro. This project
is designed to improve the recreational
economy, water quality, and habitat, and
increase water storage capacity within the
lake to achieve renewable energy goals
by optimizing long-term hydroelectric
operations. This appropriation is not
available until the commissioner has
determined that at least an equal amount has
been committed to the project from nonstate
sources.

Subd. 9.Unspent Appropriations

The unspent portion of an appropriation,
but not to exceed ten percent of the
appropriation, for a project in this section
that is complete, other than an appropriation
for flood hazard mitigation, upon written
notice to the commissioner of management
and budget, is available for asset preservation
under Minnesota Statutes, section 84.946.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation
to the unspent amount transferred for asset
preservation.

Sec. 8. POLLUTION CONTROL AGENCY

$

2,000,000

To the Pollution Control Agency to design
and construct remedial systems and acquire
land at landfills throughout the state in
accordance with the closed landfill program
under Minnesota Statutes, sections 115B.39
to 115B.42.

Sec. 9. BOARD OF WATER AND SOIL RESOURCES

Subdivision 1.Total Appropriation

$

12,000,000

To the Board of Water and Soil Resources
for the purposes specified in the following
subdivisions.

Subd. 2.RIM Conservation Reserve

6,000,000

(a) To acquire conservation easements from
landowners to preserve, restore, create, and
enhance wetlands; restore and enhance rivers
and streams, riparian lands, and associated
uplands in order to protect soil and water
quality; support fish and wildlife habitat;
reduce flood damage; and provide other
public benefits. The provisions of Minnesota
Statutes, section 103F.515, apply to this
program. Of this appropriation, up to ten
percent may be used to implement the
program.
(b) The board is authorized to enter into
new agreements and amend past agreements
with landowners as required by Minnesota
Statutes, section 103F.515, subdivision 5, to
allow for restoration, including overseeding
and harvesting of native prairie vegetation for
use for energy production in a manner that
does not devalue the natural habitat, water
quality benefits, or carbon sequestration
functions of the area enrolled in the easement.
This shall occur after seed production and
minimize impacts on wildlife. Of this
appropriation, up to five percent may be used
for restoration, including overseeding.

Subd. 3.Wetland Replacement Due to Public Road Projects

6,000,000

To acquire land for wetland restoration or
preservation to replace wetlands drained
or filled as a result of the repair or
reconstruction, replacement, or rehabilitation
of existing public roads as required by
Minnesota Statutes, section 103G.222.
The purchase price paid for acquisition
of land, fee, or perpetual easement must
be the fair market value as determined
by the board. The board may enter into
agreements with the federal government,
other state agencies, political subdivisions,
and nonprofit organizations or fee owners to
acquire land and restore and create wetlands
and to acquire existing wetland banking
credits. Acquisition of or the conveyance
of land may be in the name of the political
subdivision.

Sec. 10. AGRICULTURE

$

706,000

To the commissioner of administration for
design and installation of an emergency
power system for the shared Agriculture and
Health Lab Building.

Sec. 11. RURAL FINANCE AUTHORITY

$

33,000,000

For the purposes set forth in the Minnesota
Constitution, article XI, section 5, paragraph
(h), to the Rural Finance Authority to
purchase participation interests in or to
make direct agricultural loans to farmers
under Minnesota Statutes, chapter 41B.
This appropriation is for the beginning
farmer program under Minnesota Statutes,
section 41B.039; the loan restructuring
program under Minnesota Statutes, section
41B.04; the seller-sponsored program under
Minnesota Statutes, section 41B.042; the
agricultural improvement loan program
under Minnesota Statutes, section 41B.043;
and the livestock expansion loan program
under Minnesota Statutes, section 41B.045.
All debt service on bond proceeds used to
finance this appropriation must be repaid
by the Rural Finance Authority under
Minnesota Statutes, section 16A.643. Loan
participations must be priced to provide full
interest and principal coverage and a reserve
for potential losses. Priority for loans must
be given first to basic beginning farmer loans,
second to seller-sponsored loans, and third to
agricultural improvement loans.

Sec. 12. MINNESOTA ZOOLOGICAL GARDEN

$

4,000,000

To the Minnesota Zoological Garden for
capital asset preservation and betterments to
infrastructure and exhibits at the Minnesota
Zoo to be spent in accordance with Minnesota
Statutes, section 16B.307.

Sec. 13. ADMINISTRATION

Subdivision 1.Total Appropriation

$

50,555,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2.Asset Preservation

500,000

For asset preservation studies and projects
on properties managed by the commissioner.
This appropriation must be spent in
accordance with Minnesota Statutes, section
16B.307. This appropriation includes money
to complete design for and to renovate or
replace the house of representatives TV
control room heating, ventilating, and air
conditioning system in the Capitol building.

Subd. 3.Capitol Restoration Appropriation

44,000,000

(a) This appropriation may be used for one or
more of the following purposes:
(1) to design, construct, and equip a new
tunnel extending from the Capitol building
and passing under University Avenue, and
associated improvements, in accordance
with recommendation number 6 of the
Comprehensive Master Plan and the
final report of the Committee on Capitol
Complex Security, dated April 1, 2011, with
construction to be coordinated with light rail
construction time frames;
(2) for predesign and design of the renovation
and restoration of the State Capitol building,
including preparation of design guidelines
and a historic structures report;
(3) for repairs to exterior stone, window
replacement, and preparation of mechanical
space in the attic of the State Capitol
building;
(4) for construction to restore and improve
the Capitol building and grounds, including
exterior stone repair and the construction
activities listed as part of sequence A
in the 2012 Comprehensive Master Plan
dated February 2012, prepared by MOCA,
including hazardous materials abatement;
and
(5) up to $5,000,000 of this appropriation
may be used to predesign, design, conduct
hazardous materials abatement, construct,
renovate and remodel, and furnish and equip
the State Office Building, Administration
Building, Centennial Office Building, 321
Grove Street Buildings, and such other
properties located on the Capitol campus as
determined by the commissioner to meet
temporary and permanent office and other
space needs occasioned by and in furtherance
of an efficient restoration of the State Capitol
building and for the efficient and effective
function of the tenants currently located in
the Capitol building.
(b) Money appropriated under paragraph (a),
clauses (1) to (3), may be spent as of the
effective date.
(c) Money appropriated under paragraph
(a), clauses (4) and (5), may not be spent
unless and until the conditions in Minnesota
Statutes, section 15B.15, have been met.

Subd. 4.Capital Asset Preservation and Replacement Account

1,000,000

To be spent in accordance with Minnesota
Statutes, section 16A.632.

Subd. 5.Hennepin County, Washburn Center for Children

5,000,000

For a grant to Hennepin County to acquire
and prepare a site for and to predesign,
design, construct, furnish, and equip a new
Washburn Center for Children that will be
used to provide mental health services to
children. The county is authorized to take
actions and enter into agreements needed
to perform the functions set forth in this
section, and the agreements may include
provisions and conditions that the county
negotiates. The county may enter into a
lease or management contract for the new
center with a nonprofit entity. The lease or
management contract must comply with the
requirements of Minnesota Statutes, section
16A.695. This appropriation is not available
until the commissioner has determined that
at least an equal amount has been committed
or expended from nonstate resources.

Subd. 6.Peace Officers Memorial

55,000

To complete design and renovation of the
Peace Officers Memorial on the Capitol
grounds.

Sec. 14. AMATEUR SPORTS

$

375,000

To the Minnesota Amateur Sports
Commission to replace HVAC heating and
cooling units in the Indoor Sports Hall at the
National Sports Center in Blaine.

Sec. 15. MILITARY AFFAIRS

Subdivision 1.Total Appropriation

$

23,500,000

To the adjutant general for the purposes
specified in this section.

Subd. 2.Asset Preservation

4,000,000

For asset preservation improvements and
betterments of a capital nature at military
affairs facilities statewide, to be spent in
accordance with Minnesota Statutes, section
16B.307.

Subd. 3.Camp Ripley Education Center Addition

19,500,000

To complete the construction, furnishing, and
equipping of an addition to the Camp Ripley
Education Center (Building #6-76). The
addition will include lodging, classroom, and
dining facilities.

Subd. 4.Unspent Appropriations

The unspent portion of an appropriation for
a project in this section that is complete,
upon written notice to the commissioner of
management and budget, is available for
asset preservation under Minnesota Statutes,
section 16B.307. Minnesota Statutes, section
16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.

Sec. 16. TRANSPORTATION

Subdivision 1.Total Appropriation

$

49,400,000

This appropriation is to the commissioner of
transportation for the purposes specified in
this section.

Subd. 2.Local Bridge Replacement and Rehabilitation

30,000,000

This appropriation is from the bond proceeds
account in the state transportation fund
to match federal money and to replace
or rehabilitate local deficient bridges as
provided in Minnesota Statutes, section
174.50. To the extent practicable, the
commissioner shall expend the funds as
provided under Minnesota Statutes, section
174.50, subdivisions 6c and 7, paragraph (c).
Political subdivisions may use grants made
under this subdivision to construct or
reconstruct bridges, including but not limited
to:
(1) matching federal aid grants to construct
or reconstruct key bridges;
(2) paying the costs of preliminary
engineering and environmental studies
authorized under Minnesota Statutes, section
174.50, subdivision 6a;
(3) paying the costs to abandon an existing
bridge that is deficient and in need of
replacement, but where no replacement will
be made; and
(4) paying the costs to construct a road
or street to facilitate the abandonment
of an existing bridge determined by
the commissioner to be deficient, if the
commissioner determines that construction
of the road or street is more economical than
replacement of the existing bridge.

Subd. 3.Local Road Improvement Fund Grants

10,000,000

From the bond proceeds account in the state
transportation fund as provided in Minnesota
Statutes, section 174.50, for construction and
reconstruction of local roads with statewide
or regional significance under Minnesota
Statutes, section 174.52, subdivision 4, or for
grants to counties to assist in paying the costs
of rural road safety capital improvement
projects on county state-aid highways
under Minnesota Statutes, section 174.52,
subdivision 4a.

Subd. 4.Greater Minnesota Transit

6,400,000

For capital assistance for publicly owned
greater Minnesota transit systems to be used
to design, construct, and equip transit capital
facilities under Minnesota Statutes, section
174.24, subdivision 3c.

Subd. 5.Railroad Warning Devices Replacement

2,000,000

To design, construct, and equip the
replacement of active highway rail grade
crossing warning safety devices that have
reached the end of their useful life.

Subd. 6.Port Development Assistance

1,000,000

For grants under Minnesota Statutes, chapter
457A, for publicly owned capital projects.

Sec. 17. METROPOLITAN COUNCIL

Subdivision 1.Total Appropriation

$

12,836,000

To the Metropolitan Council for the purposes
specified in this section.

Subd. 2.Metropolitan Regional Parks Capital Improvements

4,586,000

For the cost of improvements and betterments
of a capital nature and acquisition by the
council and local government units of
regional recreational open-space lands in
accordance with the council's policy plan
as provided in Minnesota Statutes, section
473.147. This appropriation must not be
used to purchase easements.

Subd. 3.Municipal Wastewater Systems - Inflow and Infiltration Grants

4,000,000

For grants to cities within the metropolitan
area, as defined in Minnesota Statutes,
section 473.121, subdivision 2, for capital
improvements in municipal wastewater
collection systems to reduce the amount
of inflow and infiltration to the council's
metropolitan sanitary sewer disposal system.
To be eligible for a grant, a city must be
identified by the council as a contributor of
excessive inflow or infiltration. Grants from
this appropriation are for up to 50 percent of
the cost to mitigate inflow and infiltration in
the publicly owned municipal wastewater
collection systems. The council must
award grants based on applications from
eligible cities that identify eligible capital
costs and include a timeline for inflow and
infiltration mitigation construction, pursuant
to guidelines established by the council.

Subd. 4.Phillips Community Center

1,750,000

For a grant to the Minneapolis Park and
Recreation Board to predesign, design,
engineer, reconstruct, renovate, furnish,
and equip the Phillips Community Center
indoor competitive swimming pool and to
predesign, design, engineer, and construct
an additional indoor multipurpose family
pool and facilities associated with an aquatic
center in the community center, subject to
Minnesota Statutes, section 16A.695.
This appropriation is not available until
the commissioner determines that at least
$350,000 is committed from nonstate
sources.

Subd. 5.Minneapolis Transportation Interchange

2,500,000

For a grant to Hennepin County or the
Hennepin County Regional Railroad
Authority for environmental analysis,
engineering, design, acquisition of real
property or interests in real property, and
site preparation for and construction of the
Minneapolis Transportation Interchange
Facility located in the vicinity of the
confluence of the Hiawatha Light Rail
Transit line and the Northstar Commuter Rail
line.

Sec. 18. HUMAN SERVICES

Subdivision 1.Total Appropriation

$

5,683,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2.Asset Preservation

2,000,000

For asset preservation improvements and
betterments of a capital nature at Department
of Human Services facilities statewide, to be
spent in accordance with Minnesota Statutes,
section 16B.307.

Subd. 3.Minnesota Security Hospital - Phase I

3,683,000

For predesign and design of the first phase
of a two-phase project to remodel existing
facilities and develop new residential,
program, activity, and ancillary facilities for
the Minnesota Security Hospital on the upper
campus of the St. Peter Regional Treatment
Center.

Sec. 19. VETERANS AFFAIRS

Subdivision 1.Total Appropriation

$

7,416,000

To the commissioner of administration
for the purposes specified in this section.
The commissioner must allocate money
appropriated in this section so as to maximize
the use of all available federal funding.

Subd. 2.Asset Preservation

3,000,000

For asset preservation improvements and
betterments of a capital nature at veterans
homes and cemeteries statewide, to be spent
in accordance with Minnesota Statutes,
section 16B.307.

Subd. 3.Minneapolis Veterans Home Building 17 South

3,050,000

For predesign and design for demolition of
the south wing of Building 17 and adjoining
facilities, and designing the south wing
of Building 17 as a new skilled nursing
building. This appropriation may also be
used to design a new distribution service
tunnel on the Minneapolis campus.

Subd. 4.Minneapolis Veterans Home Centralized Pharmacy

1,366,000

To predesign, design, remodel, and furnish
historic Building 13 to be used as the veterans
homes' central pharmacy.

Sec. 20. CORRECTIONS

Subdivision 1.Total Appropriation

$

9,128,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2.Asset Preservation

5,000,000

For improvements and betterments of a
capital nature at Minnesota correctional
facilities statewide, in accordance with
Minnesota Statutes, section 16B.307.

Subd. 3.Minnesota Correctional Facility - Stillwater

Well and Water Treatment Facility

3,391,000

To complete design; cap an old well; install
a new well; replace piping between wells,
water tower, and facility intake; replace water
treatment equipment; and design, construct,
furnish, and equip a new building to house
water treatment equipment.

Subd. 4.Northeast Regional Correctional Center (NERCC)

737,000

For a grant to the Arrowhead Regional
Corrections Joint Powers Board for asset
preservation improvements and betterments
of a capital nature at the Northeast Regional
Correctional Center (NERCC).

Subd. 5.Unspent Appropriations

The unspent portion of an appropriation for
a project in this section that is complete,
upon written notice to the commissioner of
management and budget, is available for
asset preservation under Minnesota Statutes,
section 16B.307, at the same correctional
facility as the project for which the original
appropriation was made. Minnesota Statutes,
section 16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.

Sec. 21. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1.Total Appropriation

$

78,500,000

To the commissioner of employment and
economic development for the purposes
specified in this section.

Subd. 2.Greater Minnesota Business Development Public Infrastructure Grant Program

6,000,000

For grants under Minnesota Statutes, section
116J.431.
This appropriation may be used for a grant
to the Lake Superior-Poplar River Water
District to acquire property interests for,
engineer, design, permit, and construct works
and systems to transport and treat water
from Lake Superior through the Poplar River
Valley to serve domestic and irrigation water
users and commercial, stock watering, and
industrial users. Notwithstanding Minnesota
Statutes, section 116J.431, a grant to the
district is not subject to any limit in grant
amount or match requirement, but a grant
to the district is not available until at least
$1,200,000 has been committed to the project
from nonstate sources. Expenditures made
on or after October 1, 2011, shall count
towards the nonstate match.

Subd. 3.Redevelopment Account

3,000,000

For purposes of the redevelopment account
under Minnesota Statutes, sections 116J.571
to 116J.575.

Subd. 4.Transportation Economic Development Program

3,000,000

For grants under Minnesota Statutes, section
116J.436.

Subd. 5.Business Development Through Capital Project Grants

50,000,000

For grants under Minnesota Statutes, section
116J.433.

Subd. 6.Austin Port Authority - Research and Technology Center

13,500,000

For a grant to the Austin Port Authority to
design and construct a new building addition
to the Hormel Institute, including research
labs, research technology space, and support
offices. This appropriation is not available
until the commissioner has determined that
at least an equal amount has been committed
to the project from nonstate sources.

Subd. 7.Bemidji Regional Public Television Station

3,000,000

For a grant to the city of Bemidji to construct,
furnish, and equip a regional public
television station in the city of Bemidji.
This appropriation is not available until the
commissioner determines that a 25 percent
match has been committed to the project
from nonstate sources.

Sec. 22. PUBLIC FACILITIES AUTHORITY

Subdivision 1.Total Appropriation

$

23,500,000

To the Public Facilities Authority for the
purposes specified in this section.

Subd. 2.State Match for Federal Grants

8,500,000

To match federal grants for the clean water
revolving fund under Minnesota Statutes,
section 446A.07, and the drinking water
revolving fund under Minnesota Statutes,
section 446A.081.
This appropriation must be used for qualified
capital projects.

Subd. 3.Wastewater Infrastructure Funding Program

15,000,000

For grants to eligible municipalities under the
wastewater infrastructure funding program
under Minnesota Statutes, section 446A.072.
If a grant is made from this appropriation
to the Central Iron Range Sanitary Sewer
District to supplement previous wastewater
infrastructure funding grants to design,
construct, furnish, and equip new wastewater
treatment facilities, lift stations, and
forcemains, it is not subject to the limitations
on the availability or amount of the grant in
Minnesota Statutes, section 446A.072, but
the grant must not exceed $5,000,000.

Sec. 23. HOUSING FINANCE AGENCY

$

5,500,000

To the Housing Finance Agency to finance
the rehabilitation of public housing under
Minnesota Statutes, section 462A.202,
subdivision 3a. For purposes of this
section, "public housing" means housing for
low-income persons and households financed
by the federal government and owned and
operated by public housing authorities and
agencies formed by cities and counties.
Eligible public housing authorities must
have a public housing assessment system
rating of standard or above. Priority must be
given to proposals that maximize federal or
local resources to finance the capital costs.
The priority in Minnesota Statutes, section
462A.202, subdivision 3a, for projects to
increase the supply of affordable housing and
the restrictions of Minnesota Statutes, section
462A.202, subdivision 7, do not apply to this
appropriation.

Sec. 24. MINNESOTA HISTORICAL SOCIETY

Subdivision 1.Total Appropriation

$

3,250,000

To the Minnesota Historical Society for the
purposes in this section.

Subd. 2.Historic Sites Asset Preservation

2,500,000

For capital improvements and betterments
at state historic sites, buildings, landscaping
at historic buildings, exhibits, markers, and
monuments, to be spent in accordance with
Minnesota Statutes, section 16B.307. The
society shall determine project priorities as
appropriate based on need.

Subd. 3.County and Local Preservation Grants

750,000

To be allocated to county and local
jurisdictions as matching money for historic
preservation projects of a capital nature,
as provided in Minnesota Statutes, section
138.0525.

Sec. 25. BOND SALE EXPENSES

$

560,000

To the commissioner of management
and budget for bond sale expenses under
Minnesota Statutes, section 16A.641,
subdivision 8.

    Sec. 26. BOND SALE AUTHORIZATION.
    Subdivision 1. Bond proceeds fund. To provide the money appropriated in this act
from the bond proceeds fund, the commissioner of management and budget shall sell and
issue bonds of the state in an amount up to $526,858,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and
by the Minnesota Constitution, article XI, sections 4 to 7.
    Subd. 2. Transportation fund. To provide the money appropriated in this act from
the state transportation fund, the commissioner of management and budget shall sell and
issue bonds of the state in an amount up to $40,000,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by
the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except
accrued interest and any premium received on the sale of the bonds, must be credited to
a bond proceeds account in the state transportation fund.

    Sec. 27. [15B.155] CAPITOL RESTORATION PROJECT.
    Subdivision 1. Consultation and collaboration. The commissioner shall consult
and collaborate with representatives designated by the governor, the majority leader of
the senate, the speaker of the house, the chief justice of the Minnesota Supreme Court,
the attorney general, Capitol Area and Architectural Planning Board, and the director of
the Minnesota Historical Society regarding the design and construction process for the
restoration of the Capitol building.
    Subd. 2. Changes to space allocation. No changes shall be made to the current
amount and location of space in the Capitol building for the house of representatives,
senate, Supreme Court, and constitutional officers, unless approved as follows:
(1) for space currently allocated to the house of representatives, by the chief clerk
of the house of representatives;
(2) for space currently allocated to the senate, by the secretary of the senate;
(3) for space currently allocated to the judicial branch, by the court administrator; and
(4) for space currently allocated to the attorney general's office, by the attorney
general.
    Subd. 3. Sequencing. Construction work shall be sequenced to maintain occupancy
in the house of representatives and senate chambers during regular legislative sessions,
unless otherwise approved by the speaker of the house and the majority leader of the
senate for respective chambers.
    Subd. 4. Duties of commissioner. (a) By January 15, 2013, the commissioner
of administration shall submit a space recommendation report to the majority leader
of the senate, the speaker of the house, and the chairs of the legislative committees
with primary jurisdiction over the Capitol Area Architectural and Planning Board. The
space recommendation report shall identify appropriate and required functions of the
Capitol building and make recommendations to address space requirements for the
tenants currently located in the Capitol building for the effective and efficient function
of state government. In preparing the report, the commissioner shall consult with the
Capitol Preservation Commission and representatives designated by the governor, the
secretary of the senate, the chief clerk of the house of representatives, the director of the
Minnesota Historical Society, and the state court administrator. Before the appropriations
in subdivision 2, clauses (4) and (5), may be spent, the recommendations in the report
must be approved by the governor, the secretary of the senate, and the chief clerk of the
house of representatives.
(b) By July 15, 2013, the commissioner shall submit a report describing final plans
and specifications for the restoration of the Capitol building to the majority leader of the
senate, the speaker of the house, and to the chairs of the committees in the senate and
house of representatives with primary jurisdiction over the Capitol Area Architectural and
Planning Board. Before the appropriations in subdivision 2, clauses (4) and (5), may be
spent, the plans and specifications must be approved by the governor, the secretary of the
senate, and the chief clerk of the house of representatives.
(c) Notwithstanding sections 16C.05, subdivision 2, paragraph (b); and 16C.08,
subdivision 3, clause (5), the commissioner of administration may enter into consultant
and construction contracts on the Capitol restoration and repair project with a term of
up to ten years.
(d) Notwithstanding section 16B.31, subdivision 2, the commissioner of
administration may proceed with the Capitol restoration and repair project before
obtaining an appropriation to complete the entire project.
(e) On or before December 1 of each year until final completion of the restoration
project, the commissioner of administration shall submit in writing to the governor, chairs
of the senate Finance and Capital Investment Committees, and chairs of the house of
representatives Ways and Means and Capital Investment Committees the estimated annual
amount needed for the restoration project for the upcoming fiscal year. The construction
manager and the commissioner shall enter into a guaranteed maximum price contract. In
the absence of an appropriation sufficient for the continued performance of work on
an annual basis as determined by the commissioner of administration, the construction
manager shall not be bound to complete the remaining work within the guaranteed
maximum price in the contract.
(f) With the approval of the commissioner of administration, the construction
manager may bid trade work in accordance with section 16C.34, subdivision 3, before
the enactment of an appropriation sufficient to fully fund the trade work for completion
of the full project described in the Comprehensive Master Plan. The construction
manager shall enter into guaranteed maximum price contracts with subcontractors for
the trade work. In the event the legislature fails to appropriate money sufficient for the
continued performance of work on an annual basis as determined by the commissioner
of administration, the subcontractors shall not be bound to complete the remaining work
within the guaranteed maximum price in the contract. Contracts with subcontractors for
trade work under this paragraph must include terms consistent with this paragraph.

    Sec. 28. Minnesota Statutes 2010, section 16A.633, is amended by adding a
subdivision to read:
    Subd. 4. Report on jobs created or retained. By September 1 of each
odd-numbered year, the commissioner must report to legislative committees with
jurisdiction over capital investment on the jobs created or retained as a result of capital
project funding by the state, whether with state general obligation bond proceeds or other
state funding sources, during the previous biennium. Each state agency must provide the
commissioner the information necessary, and must require its capital project grantees to
provide the information necessary, for the commissioner to make the report. The report
must include, but is not limited to, the following information: the number and types of
jobs for each project, whether the jobs are new or retained, where the jobs are located,
and pay ranges of the jobs. The Board of Regents of the University of Minnesota, the
Board of Trustees of the Minnesota State Colleges and Universities, and each state agency
receiving an appropriation for a capital project shall collect and provide the information at
the time and in the manner required by the commissioner.

    Sec. 29. Minnesota Statutes 2011 Supplement, section 16A.641, subdivision 7, is
amended to read:
    Subd. 7. Credit of proceeds. (a) Proceeds of bonds issued under each law must be
credited by the commissioner to a special fund, as provided in this subdivision. For the
purpose of this subdivision, "proceeds of bonds" means and includes the principal amount
of the bonds and any premium and accrued interest received on the sale of the bonds.
(b) Accrued interest received on sale of the bonds must be credited to the state bond
fund created by the Constitution, article XI, section 7. Any premium received on the sale
of the bonds on or prior to December 1, 2012, must be credited to the state bond fund. Any
premium received on the sale of the bonds, except for refunding bonds, after December 1,
2012, must be credited to either the bond proceeds fund where it is used to reduce the par
amount of the bonds issued or the state bond fund or used to reduce the par amount of the
bond issue at the time of sale. Any premium received on the sale of the refunding bonds,
after December 1, 2012, must be used or credited in accordance with paragraph (f).
(c) Except as otherwise provided by law, proceeds of state bonds issued under the
Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
established by section 16A.631.
(d) Proceeds of state highway bonds must be credited to the trunk highway fund
under the Constitution, article XIV, section 6.
(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions
must be credited to special accounts in the bond proceeds fund or to special funds
established by laws stating the purposes of the grants or loans, and the standards and
criteria under which an executive agency is authorized to make them.
(f) Proceeds of refunding bonds must be either: (1) credited to the state bond fund
as provided in section 16A.66, subdivision 1; or (2) in the case of premium received on
the sale of the refunding bonds, used to reduce the par amount of the bond issue at the
time of the bond sale.
(g) Proceeds of other bonds must be credited as provided in the law authorizing
their issuance.

    Sec. 30. Minnesota Statutes 2010, section 16A.641, subdivision 9, is amended to read:
    Subd. 9. Special accounts; appropriation. (a) The commissioner shall establish
separate accounts in the state bond fund for:
(1) state building bonds, and for other state bonds issued for each program of
grants to political subdivisions for a particular class of capital expenditures, to record
debt service payments and receipts of amounts appropriated from the general fund under
subdivision 10;
(2) state highway bonds, to record debt service payments, receipts of amounts
appropriated for debt service from the trunk highway fund pursuant to the Constitution,
article XIV, section 6, and additional receipts, if any, of amounts appropriated from the
general fund under subdivision 10;
(3) state bonds issued for each capital loan and for each program of capital loans
to agencies or political subdivisions, to record debt service payments, receipts of loan
repayments appropriated for debt service or reimbursement of debt service by the law
authorizing the loan or program, and any additional receipts of amounts appropriated from
the general fund under subdivision 10; and
(4) refunding bonds, as provided in section 16A.66, subdivision 1.
(b) All money credited, transferred, or appropriated to the state bond fund and all
income from the investment of that money is appropriated to the commissioner for the
payment of principal and interest on state bonds or, in the case of premium received on the
sale of refunding bonds, as provided by subdivision 7, paragraph (f).

    Sec. 31. Minnesota Statutes 2011 Supplement, section 16A.96, is amended by adding a
subdivision to read:
    Subd. 10. Validation. (a) Appropriation bonds issued under this section may be
validated in the manner provided by this subdivision. If comparable appropriation bonds
are judicially determined to be valid, nothing in this subdivision shall be construed to
prevent sale or delivery of any appropriation bonds or notes after entry of a judgment of
validation by the Minnesota Supreme Court as provided in this subdivision with respect
to the appropriation bonds authorized under this section.
(b) Any appropriation bonds issued under this section that are validated shall be
validated in the manner provided by this subdivision.
(c) The Minnesota Supreme Court shall have original jurisdiction to determine the
validation of appropriation bonds and all matters connected with the issuance of the bonds.
(d) The commissioner may determine the commissioner's authority to issue
appropriation bonds and the legality of all proceedings in connection with issuing bonds.
For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme
Court against the state and the taxpayers and citizens.
(e) As a condition precedent to filing of a complaint for the validation of
appropriation bonds, the commissioner shall take action providing for the issuance of
appropriation bonds in accordance with law.
(f) The complaint shall set out the state's authority to issue appropriation bonds, the
action or proceeding authorizing the issue and its adoption, all other essential proceedings
had or taken in connection with issuing bonds, the amount of the appropriation bonds to
be issued and the maximum interest they are to bear, and all other pertinent matters.
(g) The Minnesota Supreme Court shall issue an order directed against the state and
taxpayers, citizens, and others having or claiming any right, title, or interest affected by
the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons,
in general terms and without naming them, and the state through its attorney general to
appear before the Minnesota Supreme Court at a designated time and place and show
why the complaint should not be granted and the proceedings and appropriation bonds
validated. A copy of the complaint and order shall be served on the attorney general at
least 20 days before the time fixed for hearing. The attorney general shall examine the
complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or
untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds
in question has not been duly authorized, defense shall be made by the attorney general as
the attorney general deems appropriate.
(h) Before the date set for hearing, as directed by the Minnesota Supreme Court,
either the clerk of the Minnesota Appellate Courts or the commissioner shall publish a
copy of the order in a legal newspaper of general circulation in Ramsey County and
the state, at least once each week for two consecutive weeks, commencing with the
first publication, which shall not be less than 20 days before the date set for hearing.
By this publication, all taxpayers, citizens, and others having or claiming any right,
title, or interest in the state, are made parties defendant to the action and the Minnesota
Supreme Court has jurisdiction of them to the same extent as if named as defendants in the
complaint and personally served with process.
(i) Any taxpayer, citizen, or person interested may become a party to the action by
moving against or pleading to the complaint at or before the time set for hearing. The
Minnesota Supreme Court shall determine all questions of law and fact and make orders
that will enable it to properly try and determine the action and render a final judgment
within 30 days of the hearing with the least possible delay.
(j) If the judgment validates appropriation bonds, the judgment is forever conclusive
as to all matters adjudicated and as against all parties affected and all others having or
claiming any right, title, or interest affected by the issuance of appropriation bonds, or to
be affected in any way by issuing the bonds, and the validity of appropriation bonds or of
any revenues pledged for the payment of the bonds, or of the proceedings authorizing the
issuance of the bonds, including any remedies provided for their collection, shall never
be called in question in any court by any person or party.
(k)(1) Appropriation bonds, when validated under this section, shall have stamped
or written on the bonds, by the proper officers of the state issuing them, a statement in
substantially the following form: "This bond is one of a series of appropriation bonds,
which were validated by judgment of the Supreme Court of the State of Minnesota,
rendered on ....., (year) ......"
(2) A certified copy of the judgment or decree shall be received as evidence in any
court in this state.
(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other
person contests the action or intervenes, the court may tax the whole or any part of the
costs against the person that is equitable.
(m) A justice of the Minnesota Supreme Court is not disqualified in any validation
action because the justice is a landowner or taxpayer of the state.

    Sec. 32. [116J.433] BUSINESS DEVELOPMENT THROUGH CAPITAL
PROJECTS GRANT PROGRAM.
    Subdivision 1. Creation of account. A business development through capital
projects account is created in the bond proceeds fund. Money in the account may only be
used for capital costs for eligible projects and public infrastructure.
    Subd. 2. Definitions. For purposes of this section:
(1) "local governmental unit" means a county, city, town, special district, public
higher education institution, or other political subdivision or public corporation;
(2) "governing body" means the city council, board of county commissioners, town
board of supervisors, board of trustees, board of regents, or other body charged with
governing a political subdivision of the state;
(3) "public infrastructure" means publicly owned physical infrastructure in this state,
including, but not limited to, wastewater collection and treatment systems, drinking water
systems, storm sewers, utility extensions, telecommunications infrastructure, streets,
roads, bridges, and parking ramps; and
(4) "eligible project" means any project for which general obligation bonds of
the state may be issued. Eligible projects must be capital projects for acquisition or
improvement of publicly owned fixed assets having a useful life of at least ten years.
    Subd. 3. Grant program established. The commissioner shall make competitive
grants to local governmental units for eligible projects and public infrastructure required
to support an eligible project, which may include: predesign, design, acquisition of land or
buildings, construction, furnishing, and equipping a new or renovated building. The local
government unit may employ or contract with persons, firms, or corporations to perform
one or more or all of the functions of architect, engineer, or construction manager with
respect to all or any part of an eligible project and related public infrastructure. The local
government unit may deliver the eligible project and related public infrastructure through
either a design-build or construction manager at-risk method. To the extent practicable
and at the discretion of the local government unit, the local government unit may have
rights and exercise powers with respect to the acquisition, construction, use, and operation
of an eligible project, as are granted under section 473.756. No consent or approval of
another political subdivision is required for the effectiveness or the exercise by a local
government unit of the rights or powers.
    Subd. 4. Application. (a) A local governmental unit must apply to the commissioner
for a grant under this section. At a minimum, a local governmental unit must include the
following information in its application:
(1) a resolution of its governing body certifying that the money required to be
supplied by the local governmental unit to complete the project is available and committed;
(2) a detailed estimate, along with necessary supporting evidence, of the total costs
of the eligible project;
(3) an assessment of the potential or likely use of the site for innovative business
activities after completion of the eligible project;
(4) a timeline indicating the major milestones for the eligible project, including
anticipated completion dates;
(5) an estimate of the operating costs for the project for ten years following
completion; and
(6) any additional information or material the commissioner prescribes.
(b) The determination of whether to make a grant under subdivision 3 is within the
discretion of the commissioner, subject to this section.
    Subd. 5. Match. An amount granted under this program must be matched with at
least an equal amount from nonstate sources. Any contribution to a project from nonstate
sources made before a grant award is made under this section shall count towards the
match requirement.
    Subd. 6. Priorities. (a) If applications for grants exceed the available appropriation,
grants must be made for projects that, in the commissioner's judgment, provide the
highest return in public benefits for the public costs incurred. In making this judgment,
the commissioner shall evaluate and prioritize eligible projects on the following
characteristics:
(1) creation of new jobs, retention of existing jobs, or improvements in the quality of
existing jobs as measured by the wages, skills, or education associated with those jobs;
(2) improvement in the quality of existing jobs, based on increases in wages or
improvements in the job duties, training, or education associated with those jobs;
(3) increase in the local tax base, based on demonstrated measurable outcomes;
(4) demonstration that investment of public dollars in the project will induce private
investment;
(5) whether the project provides necessary repair or replacement of existing capital
assets;
(6) whether the project reduces operating expenses of or increases revenue from
existing capital asset, thereby offsetting at least a portion of project costs;
(7) whether the project provides health or safety benefits;
(8) the number of residents served by or who will benefit from the project;
(9) demonstration of local support;
(10) the capacity of the project to attract revenue from out of state; and
(11) objective cost benefit analysis and return on investment.
(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the
commissioner may weigh each factor, depending upon the facts and circumstances, as the
commissioner considers appropriate. In prioritizing projects, the commissioner shall make
an appropriate balance between the metropolitan area and greater Minnesota.
    Subd. 7. Sunset. This section expires June 30, 2016.

    Sec. 33. [116J.436] TRANSPORTATION ECONOMIC DEVELOPMENT
INFRASTRUCTURE PROGRAM.
    Subdivision 1. Grant program established; purpose. The transportation economic
development infrastructure program is created to foster interagency coordination between
the Departments of Transportation and Employment and Economic Development to
finance infrastructure to create economic development opportunities, jobs, and improve all
types of transportation systems statewide.
    Subd. 2. Eligible projects. Funds appropriated for the program must be used to
fund predesign, design, acquisition of land, construction, reconstruction, and infrastructure
improvements that will promote economic development, increase employment, and
improve transportation systems to accommodate private investment and job creation.
    Subd. 3. Trunk highway projects. Money in the program shall not be used on
trunk highway improvements, but can be used for needed infrastructure improvements
and nontrunk highway improvements in coordination with trunk highway improvement
projects undertaken by the Department of Transportation.
    Subd. 4. Application. The commissioners of transportation and employment and
economic development shall design an application process and selection process to
distribute funding to local units of government for publicly owned infrastructure using
criteria that take into account: job creation; increase in local tax base; level of private
investment; leverage of nonstate funds; improvement to the transportation system to serve
the project area; and appropriate geographic balance between the metropolitan area and
greater Minnesota.

    Sec. 34. Minnesota Statutes 2010, section 462A.21, is amended by adding a
subdivision to read:
    Subd. 33. Housing infrastructure bonds account. The agency may establish a
housing infrastructure bond account as a separate account within the housing development
fund. Proceeds of housing infrastructure bonds and payments made by the state under
section 462A.37 may be credited to the account. The agency may transfer the proceeds of
housing infrastructure bonds to other accounts within the housing development fund that it
determines appropriate to accomplish the purposes for which the bonds are authorized
under section 462A.37.

    Sec. 35. [462A.37] HOUSING INFRASTRUCTURE BONDS;
AUTHORIZATION; STANDING APPROPRIATION.
    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
have the meanings given.
(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.
(d) "Debt service" means the amount payable in any fiscal year of principal,
premium, if any, and interest on housing infrastructure bonds and the fees, charges, and
expenses related to the bonds.
(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.
(f) "Housing infrastructure bonds" means bonds issued by the agency under chapter
462A that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the
Internal Revenue Code, or are tax-exempt bonds that are not private activity bonds, within
the meaning of Section 141(a) of the Internal Revenue Code, for the purpose of financing
or refinancing affordable housing authorized under this chapter.
(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
(h) "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.
    Subd. 2. Authorization. (a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the
payment made under this section may be pledged. The housing infrastructure bonds
authorized in this subdivision may be issued to fund loans, on terms and conditions the
agency deems appropriate, made for one or more of the following purposes:
(1) to finance the costs of the construction, acquisition, and rehabilitation of
supportive housing for individuals and families who are without a permanent residence;
(2) to finance the costs of the acquisition and rehabilitation of foreclosed or
abandoned housing to be used for affordable rental housing and the costs of new
construction of rental housing on abandoned or foreclosed property where the existing
structures will be demolished or removed;
(3) to finance that portion of the costs of acquisition of abandoned or foreclosed
property that is attributable to the land to be leased by community land trusts to low-
and moderate-income homebuyers; and
(4) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in
part, outstanding bonds previously issued by the agency or another governmental unit to
finance or refinance such costs.
(b) Among comparable proposals for permanent supportive housing, preference
shall be given to permanent supportive housing for individuals or families who: (1) either
have been without a permanent residence for at least 12 months or at least four times in
the last three years; or (2) are at significant risk of lacking a permanent residence for 12
months or at least four times in the last three years.
    Subd. 3. No full faith and credit. The housing infrastructure bonds are not public
debt of the state, and the full faith and credit and taxing powers of the state are not pledged
to the payment of the housing infrastructure bonds or to any payment that the state agrees
to make under this section. The bonds must contain a conspicuous statement to that effect.
    Subd. 4. Appropriation; payment to agency or trustee. (a) The agency must
certify annually to the commissioner of management and budget the actual amount of
annual debt service on each series of bonds issued under subdivision 2.
(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure
bonds issued under subdivision 2 remain outstanding, the commissioner of management
and budget must transfer to the affordable housing bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$2,200,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.
(c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

    Sec. 36. Laws 2006, chapter 258, section 7, subdivision 23, as amended by Laws 2010,
chapter 399, section 2, is amended to read:

Subd. 23.Trail connections

2,010,000

For matching grants under Minnesota
Statutes, section 85.019, subdivision 4c.
$500,000 is for a grant to Carlton County
to predesign, design, and construct a
nonmotorized pedestrian trail connection
to the Willard Munger State Trail from the
city of Carlton through the city of Scanlon
continuing to the city of Cloquet, along the
St. Louis River in Carlton County.
$260,000 is to provide the state match for the
cost of the Soo Line Multiuse Recreational
Bridge project over marked Trunk Highway
169 in Mille Lacs County.
$175,000 is for a grant to the city of Bowlus
in Morrison County to design, construct,
furnish, and equip a trailhead center at the
head of the Soo Line Recreational Trail.
$125,000 is for a grant to Morrison
County to predesign, design, construct,
furnish, and equip a park-and-ride lot and
restroom building adjacent to the Soo Line
Recreational Trail at U.S. Highway 10.
$950,000 is for a grant to the St. Louis
and Lake Counties Regional Railroad
Authority for land acquisition, engineering,
construction, furnishing, and equipping of
a 19-mile "Boundary Waters Connection"
of the Mesabi Trail from Bearhead State
Park to the International Wolf Center in
Ely. This appropriation is contingent upon
a matching contribution of $950,000 from
other sources, public or private segment of
the Mesabi Trail from County Road 697 in
Breitung Township east through Vermilion
State Park. Notwithstanding Minnesota
Statutes, section 85.019, no local match shall
be required for this grant. Notwithstanding
Minnesota Statutes, section 16A.642, the
bond authorization and appropriation of bond
proceeds for this project are available until
June 30, 2014.

    Sec. 37. Laws 2006, chapter 258, section 17, subdivision 3, is amended to read:

Subd. 3.Cedar Avenue Bus Rapid Transit (BRT)

5,000,000

To the Metropolitan Council or to the council
to grant to Dakota County, the Dakota
County Regional Railroad Authority, or
the Minnesota Valley Transit Authority
for environmental studies, preliminary
engineering, bus lane improvements, and
transit station construction and improvements
in the Cedar Avenue Bus Rapid Transit
Corridor.
This appropriation may not be spent for
capital improvements within a trunk highway
right-of-way.
EFFECTIVE DATE.This section is effective retroactively from June 2, 2006.

    Sec. 38. Laws 2008, chapter 179, section 7, subdivision 27, as amended by Laws 2010,
chapter 189, section 56, and Laws 2010, chapter 399, section 4, is amended to read:

Subd. 27.State Trail Acquisition, Rehabilitation, and Development

15,320,000

To acquire land for and to construct and
renovate state trails under Minnesota
Statutes, section 85.015.
$970,000 is for the Chester Woods Trail
from Rochester to Dover. Notwithstanding
Minnesota Statutes, section 16A.642, the
bond authorization and appropriation of bond
proceeds for this project are available until
June 30, 2016.
$700,000 is for the Casey Jones Trail.
$750,000 is for the Gateway Trail, to replace
an at-grade crossing of the Gateway Trail
at Highway 120 with a grade-separated
crossing.
$1,600,000 is for the Gitchi-Gami Trail
between Silver Bay and Tettegouche State
Park.
$1,500,000 is for the Great River Ridge Trail
from Plainview to Elgin to Eyota.
$1,500,000 is for the Heartland Trail.
$500,000 is for the Mill Towns Trail from
Lake Byllesby Park to Cannon Falls.
Notwithstanding Minnesota Statutes,
section 16A.642, the bond authorization
and appropriation of bond proceeds for this
project are available until December 30,
2014.
$150,000 is for the Mill Towns Trail within
the city of Faribault.
$1,500,000 is for the Minnesota River
Trail from Appleton to Milan and to
the Marsh Lake Dam. Notwithstanding
Minnesota Statutes, section 16A.642, the
bond authorization and appropriation of bond
proceeds for this project are available until
December 30, 2014.
$2,000,000 is for the Paul Bunyan Trail from
Walker to Guthrie.
$250,000 is for the Root River Trail from
Preston to Forestville State Park.
$100,000 is for the Root River Trail, the
eastern extension.
$250,000 is for the Root River Trail, the
eastern extension Wagon Wheel.
$550,000 is to connect the Stagecoach Trail
with the Douglas Trail in Olmsted County.
Notwithstanding Minnesota Statutes,
section 16A.642, the bond authorization
and appropriation of bond proceeds for this
project are available until June 30, 2014.
$3,000,000 is to rehabilitate state trails.
For any project listed in this subdivision that
the commissioner determines is not ready to
proceed, the commissioner may allocate that
project's money to another state trail project
in this subdivision. The chairs of the house
and senate committees with jurisdiction
over environment and natural resources
and legislators from the affected legislative
districts must be notified of any changes.

    Sec. 39. Laws 2008, chapter 179, section 17, subdivision 4, is amended to read:

Subd. 4.Cedar Avenue Bus Rapid Transit

4,000,000

To the Metropolitan Council or to the
Council to grant to Dakota County, the
Dakota County Regional Railroad Authority,
or the Minnesota Valley Transit Authority to
acquire land, or an interest in land, and to for
design, environmental studies, preliminary
engineering, bus lane improvements, layover
and maintenance facilities, and transit station
construction and improvements in the Cedar
Avenue Bus Rapid Transit corridor in Dakota
County. This appropriation may not be spent
for capital improvements within a trunk
highway right-of-way. This appropriation
is added to the appropriation in Laws 2006,
chapter 258, section 17, subdivision 3.
EFFECTIVE DATE.This section is effective retroactively from April 8, 2008.

    Sec. 40. Laws 2008, chapter 179, section 18, subdivision 3, as amended by Laws 2011,
First Special Session chapter 12, section 32, is amended to read:

Subd. 3.Systemwide Campus Redevelopment, Reuse, or Demolition

3,400,000

To demolish surplus, nonfunctional, or
deteriorated facilities and infrastructure
or to renovate surplus, nonfunctional, or
deteriorated facilities and infrastructure
at Department of Human Services
campuses. These projects must facilitate the
redevelopment or reuse of these campuses
consistent with redevelopment plan concepts
developed and approved under Laws
2003, First Special Session chapter 14,
article 6, section 64, subdivision 2. If
a surplus campus is sold or transferred
to a local unit of government, unspent
portions of this appropriation may be
granted to that local unit of government
for the purposes stated in this subdivision.
Unspent portions of this appropriation may
be used to design, construct, furnish, and
equip a maintenance and storage facility to
support the maintenance and operation of
the Brainerd campus if the commissioner
determines that it is less expensive than
renovating existing space. Notwithstanding
Minnesota Statutes, section 16A.642, the
bond authorization and appropriation of bond
proceeds for this project are available until
December 30, 2014.
Up to $125,000 is for preparation and
site development, including demolition of
buildings and infrastructure, to implement
the redevelopment and reuse of the Ah Gwah
Ching Regional Treatment Center. This
amount may be granted to Cass County for
the purposes stated in this subdivision. If the
campus is sold or transferred by Cass County
to the city of Walker, unspent portions of
this appropriation may be granted to the city
of Walker for the purposes stated in this
subdivision.

    Sec. 41. Laws 2008, chapter 179, section 19, subdivision 4, as amended by Laws 2011,
First Special Session chapter 12, section 34, is amended to read:

Subd. 4.Minneapolis Veterans Home Campus

Building 17 HVAC Replacement

1,155,000

To predesign, design, and construct
improvements to heating, ventilation, air
conditioning, and lighting systems and
associated areas serving the south wing of
Building 17. Any unspent funds from this
appropriation may be used for the purposes
provided under Laws 2010, chapter 189,
section 19, subdivision 4, as amended by
Laws 2010, chapter 399, section 8, and
Laws 2011, First Special Session chapter 12,
section 46.

    Sec. 42. Laws 2008, chapter 179, section 21, subdivision 15, as amended by Laws
2008, chapter 365, section 22, and Laws 2008, chapter 370, section 6, is amended to read:

Subd. 15. St. Cloud State University - National Hockey Center; HEAPR

6,500,000

To the Board of Trustees of the Minnesota
State Colleges and Universities to predesign,
design, construct, furnish, and equip the
renovation of and addition to the National
Hockey Center or for higher education asset
preservation and replacement (HEAPR)
pursuant to Minnesota Statutes, section
135A.046, at St. Cloud State University or
systemwide. The board may use university
and nonstate money for the remainder of
the cost of the construction of the National
Hockey Center project. Notwithstanding
Minnesota Statutes, section 16A.642, the
bond authorization and appropriation of bond
proceeds in this subdivision are available
until June 30, 2016.

    Sec. 43. Laws 2009, chapter 93, article 1, section 12, subdivision 2, is amended to read:

Subd. 2.Transit Capital Improvement Program

21,000,000

(a) To the Metropolitan Council. $8,500,000
is for the state's share of costs for the Central
Corridor light rail line for one or more of the
following activities: preliminary engineering,
final design, property acquisition, including
improvements and betterments of a capital
nature, relocation of utilities owned by public
entities, and construction.
(b) Any remaining money from this
appropriation is to implement one or more of
the following capital improvements, which
are not listed in a ranked order of priority.
The council shall determine project priorities
after consultation with the Counties Transit
Improvement Board, and other stakeholders,
as appropriate. The council shall seek
geographic balance in the allotment of this
appropriation where possible and maximize
the use of all available federal money from
the American Recovery and Reinvestment
Act of 2009, Public Law 111-5, and any
other available federal money.

(1) Bottineau Boulevard Transit Way

For a grant to the Hennepin County Regional
Railroad Authority for environmental work
for Bottineau Transit Way corridor from the
Hiawatha light rail and Northstar intermodal
transit station in downtown Minneapolis to
the vicinity of the Target development in
northern Brooklyn Park or the Arbor Lakes
retail area in Maple Grove.

(2) Cedar Avenue Bus Rapid Transit

To the Metropolitan Council or to the council
for a grant to Dakota County, the Dakota
County Regional Rail Railroad Authority,
or the Minnesota Valley Transit Authority
to acquire real property and construct, for
preliminary engineering, and to design
and construct transit stations, layover
and maintenance facilities, and roadway
improvements for shoulder running bus lanes
on County State-Aid Highway 23 in Apple
Valley and Lakeville for the Cedar Avenue
Bus Rapid Transit Way (BRT) in Dakota
County.

(3) I-94 Corridor Transit Way

(i) For a grant to Washington County
Regional Rail Authority for environmental
work and preliminary engineering of
transportation and transit improvements,
including busways, park-and-rides, or rail
transit, in the marked Interstate Highway 94
corridor.
(ii) To acquire property and construct
transportation and transit improvements,
including busways, park-and-rides, or rail
transit, in the marked Interstate Highway 94
corridor.

(4) Red Rock Corridor Transit Way

To design, construct, and furnish
park-and-ride lots for the Red Rock
Corridor Transit Way between Hastings and
Minneapolis via St. Paul, and any extension
between Hastings and Red Wing.

(5) Riverview Corridor Transit Way

For a grant to the Ramsey County Regional
Railroad Authority for environmental work
and preliminary engineering for bus rapid
transit in the Riverview corridor between the
east side of St. Paul and the Minneapolis-St.
Paul International Airport and the Mall of
America.

(6) Robert Street Corridor Transit Way

To design and construct new passenger
shelters and a bus layover facility, including
rest rooms, break areas, and a passenger
shelter, in the Robert Street Corridor Transit
Way along or parallel to U.S. Highway
52 and Robert Street from within the city
of St. Paul to Dakota County Road 42 in
Rosemount.

(7) Rush Line Corridor Transit Way

For a grant to the Ramsey County Regional
Railroad Authority to acquire land for,
design, and construct park-and-ride or
park-and-pool lots located along the Rush
Line Corridor along I-35E/I-35 and Highway
61 from the Union Depot in downtown St.
Paul to Hinckley.

(8) Southwest Corridor Transit Way

To prepare an environmental impact
statement (EIS) and for preliminary
engineering for the Southwest Transit Way
Corridor, from the Hiawatha light rail in
downtown Minneapolis to the vicinity of the
Southwest Station transit hub in Eden Prairie.
The Metropolitan Council may grant a
portion of this appropriation to the Hennepin
County Regional Railroad Authority for the
EIS work.

(9) Union Depot

For a grant to the Ramsey County Regional
Railroad Authority to acquire land and
structures, to renovate structures, and
for design, engineering, and construction
to revitalize Union Depot for use as a
multimodal transit center in St. Paul. The
center must be designed so that it facilitates a
potential future connection of high-speed rail
to Minneapolis.
(c) Of this amount, $313,000 is for
preliminary engineering and final design for
betterments in the State Capitol area related
to the Central Corridor light rail transit
project. This money is not included in the
Central Corridor light rail transit project
budget.
EFFECTIVE DATE.This section is effective retroactively from May 17, 2009.

    Sec. 44. Laws 2010, chapter 189, section 18, subdivision 5, is amended to read:

Subd. 5.Minnesota Sex Offender Program Treatment Facilities - Moose Lake

47,500,000

To complete design for and to construct,
furnish, and equip phase 2 of the Minnesota
sex offender treatment program at Moose
Lake. Upon substantial completion
of this project, the unspent portion of
this appropriation is available for asset
preservation projects for the Moose Lake
campus of the Minnesota sex offender
program, including design and construction
of a replacement water tower, abatement
of hazardous materials, and the demolition
of the existing water tower serving the
Moose Lake sex offender program and the
Department of Corrections Moose Lake
facility. The water tower project must
be cost-shared with the Department of
Corrections.

    Sec. 45. Laws 2010, chapter 189, section 24, subdivision 3, is amended to read:

Subd. 3.County and Local Preservation Grants

1,000,000

To be allocated to county and local
jurisdictions as matching money for historic
preservation projects of a capital nature,
as provided in Minnesota Statutes, section
138.0525 .
$150,000 is for a grant to the city of South St.
Paul to renovate the historically significant
1941 Navy Hangar at 310 Airport Road at
Fleming Field in the city to meet life safety
and building code requirements, subject to
Minnesota Statutes, section 16A.695. No
local match is required for this grant.

    Sec. 46. Laws 2011, First Special Session chapter 12, section 3, subdivision 7, is
amended to read:

Subd. 7.Normandale Community College

Academic Partnership Center and Student Services

21,984,000

To design, construct, furnish, and equip a
new building for classrooms and offices and
to design, construct, furnish, and equip the
renovation of the Student Services Building.

    Sec. 47. Laws 2011, First Special Session chapter 12, section 3, subdivision 8, is
amended to read:

Subd. 8.NHED Mesabi Range Community and Technical College, Virginia

Iron Range Engineering Program Facilities

3,000,000

To predesign, design, construct, furnish,
and equip an addition to and renovation of
existing space for the Iron Range engineering
program, including laboratory spaces, other
learning spaces, and improvements to the
entrance, and to acquire a privately owned
housing facility on the campus.

    Sec. 48. Laws 2011, First Special Session chapter 12, section 14, subdivision 2,
is amended to read:

Subd. 2.Transit Capital Improvement Program

20,000,000

To the Metropolitan Council or for the
Council to grant to Anoka County Regional
Railroad Authority, Dakota County, Dakota
County Regional Railroad Authority,
Hennepin County, Hennepin County
Regional Railroad Authority, Minnesota
Valley Transit Authority, Ramsey County
Regional Railroad Authority, or Washington
County Regional Railroad Authority to
perform environmental studies, preliminary
engineering, acquire property or an interest
in property, design or construct transitway
facilities and infrastructure, including
roadways, for the following transitway
projects: Northstar Ramsey station,
Gateway (I-94 East) corridor, Minneapolis
Interchange facility, Red Rock corridor,
Newport park-and-ride and station, Rush
Line corridor, Robert Street corridor, 35W
South Bus Rapid Transit, and Cedar Avenue
Bus Rapid Transit.

    Sec. 49. Laws 2011, First Special Session chapter 12, section 19, is amended to read:

Sec. 19. PUBLIC FACILITIES AUTHORITY

$

20,000,000

Wastewater Infrastructure Funding Program

To the Public Facilities Authority for
grants to eligible municipalities under the
wastewater infrastructure funding program
under Minnesota Statutes, section 446A.072.
Notwithstanding the criteria and requirements
of Minnesota Statutes, section 446A.072,
up to $1,000,000 of this appropriation is for
a grant to the city of Albert Lea to design,
construct, and equip water and sewer utilities
in the area of Broadway Avenue and Main
Street. This project may include demolition
of deteriorating concrete curbs, gutters,
sidewalks, and streets above the utilities,
and the construction costs to replace and
rehabilitate the infrastructure.

    Sec. 50. Laws 2011, First Special Session chapter 12, section 22, is amended to read:
    Sec. 22. BOND SALE SCHEDULE.
The commissioner of management and budget shall schedule the sale of state
general obligation bonds so that, during the biennium ending June 30, 2013, no more than
$1,200,858,000 $1,088,452,000 will need to be transferred from the general fund to the
state bond fund to pay principal and interest due and to become due on outstanding state
general obligation bonds. Of the amount transferred, $452,708,000 is from the general
fund and $635,745,000 is from the tobacco settlement bond proceeds fund. During
the biennium, before each sale of state general obligation bonds, the commissioner of
management and budget shall calculate the amount of debt service payments needed on
bonds previously issued and shall estimate the amount of debt service payments that will
be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount
of bonds scheduled to be sold so as to remain within the limit set by this section. The
amount needed to make the debt service payments is appropriated from the general fund
as provided in Minnesota Statutes, section 16A.641.

    Sec. 51. LAKE SUPERIOR-POPLAR RIVER WATER DISTRICT.
    Subdivision 1. Establishment. The Lake Superior-Poplar River Water District is
created as a municipal corporation, having the powers provided under Minnesota Statutes,
chapters 110A; 429, notwithstanding any provision of chapter 110A to the contrary; and
444. Notwithstanding any law to the contrary, the district shall not have the power to issue
general obligation bonds. Minnesota Statutes, sections 110A.04, 110A.07, and 110A.09 to
110A.18, shall not apply to the district or to the board created by this act.
    Subd. 2. Definitions. For purposes of applying Minnesota Statutes, chapter 110A,
to this act, "works" and "systems" shall include irrigation purposes, "court" is deemed to
refer to the board of county commissioners; and "secretary of state" is deemed to refer to
the county auditor.
    Subd. 3. Territory included in district. The territory of the district shall include
all lands within Sections 20, 21, 28, 29, 32, and 33 of Township 60 North, Range 3 West
of the Fourth Principal Meridian. Additional territory may be added as provided in
Minnesota Statutes, sections 110A.19 to 110A.22.
    Subd. 4. Payment of costs. No person shall be obligated to purchase or be entitled
to receive water from the district unless that person is a party to a contract to purchase
water from the district. Excluding any initial capital investment funded by the state, all
capital and operating expenses of the district shall be paid by the users in proportion to
their use of water. The cost of distribution lines: (1) departing from the main water pipe
from Lake Superior to the domestic water treatment plant to any user; or (2) from the
water treatment plant to any user, shall be paid for by the user of the water either at the
time of installation or by user charges that allow the district to recoup the full cost of the
distribution lines and the cost of financing. Subject to this subdivision and the availability
of water under any applicable permit with a state or federal agency, any owner of land
within the district may contract with the district for the purchase of water.
    Subd. 5. Board of directors; elections. (a) The district shall be governed by a
board of directors which shall have not less than three nor more than 13 members. The
district's initial directors shall be appointed by the Cook County Board of Commissioners,
with one director representing the domestic water users to serve for three years; up to two
directors representing the irrigation water users, one to serve for two years and one to
serve for three years; and up to two directors representing the commercial, stock watering,
and industrial users, one to serve for one year and one to serve for two years.
(b) The district's establishment shall take effect upon the Cook County Board of
Commissioners' appointment of the initial directors. The initial directors shall meet for
the purposes of organization within 30 days of their appointment. Thereafter, except
as otherwise provided in this subdivision, directors shall be elected in accordance with
Minnesota Statutes, section 110A.24, from election divisions comprised of domestic water
users; irrigation water users, and commercial, stock watering, and industrial users. Each
use classification shall be entitled to elect one director, plus one additional director if its
expected water usage for the following fiscal year exceeds ten percent of total water
usage. Each water user within each use classification shall be entitled to cast one vote for
each one percent of expected water usage for the following fiscal year. A homeowner's
association shall vote on behalf of its members if duly authorized by appropriate action by
the association's members. Prior to each election, the board of directors shall determine
the use classifications entitled to vote, the expected water use percentage of each user and
of use classification for the following fiscal year, and the number of directors each such
use classification is entitled to elect. The elections shall be conducted and supervised by
the board of directors and ratified by the Cook County Board of Commissioners.
    Subd. 6. Termination of appropriation of water from Poplar River.
Notwithstanding any law to the contrary, 30 days after the works and systems to transport
water from Lake Superior to Lutsen Mountains Corporation's snowmaking systems first
become fully permitted and operational, the water district shall notify the commissioner of
natural resources and all permits issued by the Department of Natural Resources to Lutsen
Mountains Corporation to use or appropriate water from the Poplar River shall terminate.
For the purposes of section 53, paragraph (b), the commissioner of natural resources shall
notify the revisor of statutes in writing when the permits have been terminated.
EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after
the governing body of Cook County and its chief clerical officer comply with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.

    Sec. 52. ACQUISITIONS FOR CANISTEO PROJECT.
The commissioner of natural resources shall acquire, without undue delay, the land
or interests in land that are needed to construct a conveyance system and other betterments
to accommodate the water level and outflow of water level from the Canisteo mine pit.
The commissioner may acquire the land or interests in land by eminent domain, including
use of the possession procedures under Minnesota Statutes, section 117.042.

    Sec. 53. REPEALER.
(a) Minnesota Rules, part 8895.0700, subpart 1, is repealed.
(b) Laws 2011, chapter 107, section 101, is repealed effective the day the permits
have been terminated under section 51, subdivision 6. The commissioner of natural
resources shall notify the revisor of statutes in writing when the permits have been
terminated.

    Sec. 54. EFFECTIVE DATE.
Except as otherwise provided, this act is effective the day following final enactment.