1.1 	A bill for an act
1.2 	relating to capital investment; appropriating money for small city municipal facility 
1.3 	improvement grants; authorizing the sale and issuance of state bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. SMALL CITY MUNICIPAL FACILITY IMPROVEMENT GRANTS.
 1.6 		Subdivision 1.Definition. For the purposes of this section, "commissioner" means the 
1.7 	commissioner of employment and economic development.
1.8 		Subd. 2.Eligible cities. To be eligible for a grant under this section, a city must have:
1.9 	(1) a population of less than 2,000 inhabitants according to the most recent estimate of 
1.10 	the state demographer pursuant to Minnesota Statutes, section 4A.02;
1.11 	(2) an executed and valid fire service contract or agreement requiring the city to provide 
1.12 	fire and rescue services to at least one other municipality; and
1.13 	(3) a minimum of 50 calls for fire and rescue services per calendar year.
1.14 		Subd. 3.Application. A city may apply for a grant under this section at the time and in 
1.15 	the form and manner prescribed by the commissioner.
1.16 		Subd. 4.Use of grant. A city grantee under this section may use grant money to:
1.17 	(1) design, construct, furnish, and equip capital improvements to city-owned property 
1.18 	for the purpose of colocating several city services, at least one of which is firefighting, in 
1.19 	a single building; and
1.20 	(2) purchase and install air handling equipment to mitigate vehicle exhaust issues in a 
1.21 	multipurpose municipal building from which fire and rescue services are dispatched.

2.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.2 	Sec. 2. APPROPRIATION; BOND SALE AUTHORIZATION.
 2.3 		Subdivision 1.Appropriation. $....... is appropriated from the bond proceeds fund to 
2.4 	the commissioner of employment and economic development to provide grants for the 
2.5 	purposes of section 1.
2.6 		Subd. 2.Bond sale. To provide the money appropriated in this section from the bond 
2.7 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.8 	the state in an amount up to $....... in the manner, upon the terms, and with the effect 
2.9 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.10 	Constitution, article XI, sections 4 to 7.

2.11 	EFFECTIVE DATE. This section is effective the day following final enactment.