1.1                          A bill for an act 
  1.2             relating to capital improvements; authorizing spending 
  1.3             to acquire and better public land and buildings and 
  1.4             other public improvements of a capital nature with 
  1.5             certain conditions; making adjustments to previous 
  1.6             bond authorizations; authorizing sale of state bonds; 
  1.7             canceling an earlier appropriation and appropriating 
  1.8             money; amending Minnesota Statutes 2002, sections 
  1.9             16A.661, by adding a subdivision; 16A.662, by adding a 
  1.10            subdivision; 16A.671, subdivision 3; 16A.695, 
  1.11            subdivision 3; 41B.03, subdivision 3; 41B.039, 
  1.12            subdivision 2; 41B.04, subdivision 8; 41B.042, 
  1.13            subdivision 4; 41B.043, subdivision 1b, by adding a 
  1.14            subdivision; 41B.045, subdivision 2; 41B.046, 
  1.15            subdivision 5; 41C.02, subdivision 12; 116J.571; 
  1.16            116J.572, subdivision 2; 116J.573, subdivisions 1, 2, 
  1.17            4, 5; 116J.575, subdivision 1; 116P.08, subdivision 2; 
  1.18            136F.60, by adding a subdivision; 446A.12, subdivision 
  1.19            1; 446A.14; 446A.17; 446A.19; Laws 1998, chapter 404, 
  1.20            section 23, subdivision 17, as amended; Laws 2002, 
  1.21            chapter 393, section 19, subdivision 2; Laws 2003, 
  1.22            First Special Session chapter 20, article 1, section 
  1.23            15; proposing coding for new law in Minnesota 
  1.24            Statutes, chapter 16A; repealing Minnesota Statutes 
  1.25            2002, section 16B.325. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27                             ARTICLE 1 
  1.28                APPROPRIATIONS AND RELATED LANGUAGE 
  1.29  Section 1.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
  1.30     The sums in the column under "APPROPRIATIONS" are 
  1.31  appropriated from the bond proceeds fund, or another named fund, 
  1.32  to the state agencies or officials indicated, to be spent for 
  1.33  public purposes.  Appropriations of bond proceeds must be spent 
  1.34  as authorized by the Minnesota Constitution, article XI, section 
  1.35  5, paragraph (a), to acquire and better public land and 
  2.1   buildings and other public improvements of a capital nature, or 
  2.2   as authorized by the Minnesota Constitution, article XI, section 
  2.3   5, paragraphs (b) to (j), or article XIV.  Unless otherwise 
  2.4   specified, the appropriations in this act are available until 
  2.5   the project is completed or abandoned subject to Minnesota 
  2.6   Statutes, section 16A.642.  
  2.7                               SUMMARY 
  2.8   UNIVERSITY OF MINNESOTA                          $   90,480,000 
  2.9   MINNESOTA STATE COLLEGES AND UNIVERSITIES           147,017,000 
  2.10  PERPICH CENTER FOR ARTS EDUCATION                     1,100,000 
  2.11  EDUCATION                                             1,054,000 
  2.12  MINNESOTA STATE ACADEMIES                             4,255,000 
  2.13  NATURAL RESOURCES                                    52,400,000 
  2.14  POLLUTION CONTROL AGENCY                             14,000,000 
  2.15  OFFICE OF ENVIRONMENTAL ASSISTANCE                    4,000,000 
  2.16  BOARD OF WATER AND SOIL RESOURCES                    23,000,000 
  2.17  AGRICULTURE                                          18,570,000 
  2.18  ZOOLOGICAL GARDEN                                     2,000,000 
  2.19  ADMINISTRATION                                        1,000,000 
  2.20  CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD         1,870,000 
  2.21  AMATEUR SPORTS COMMISSION                            18,100,000 
  2.22  MILITARY AFFAIRS                                      5,000,000 
  2.23  VETERANS AFFAIRS                                        500,000 
  2.24  TRANSPORTATION                                       81,008,000 
  2.25  METROPOLITAN COUNCIL                                 18,000,000 
  2.26  HUMAN SERVICES                                        9,014,000 
  2.27  VETERANS HOMES BOARD                                  7,077,000 
  2.28  CORRECTIONS                                          65,433,000 
  2.29  EMPLOYMENT AND ECONOMIC DEVELOPMENT                  61,280,000 
  2.30  MINNESOTA HISTORICAL SOCIETY                          4,000,000 
  2.31  GRANTS TO POLITICAL SUBDIVISIONS                     46,740,000 
  2.32  BOND SALE EXPENSES                                      682,000 
  2.33  CANCELLATIONS                                          (435,000)
  2.34  TOTAL                                            $  677,145,000 
  2.35  Bond Proceeds Fund 
  2.36  (General Fund Debt Service)                         571,007,000 
  3.1   Bond Proceeds Fund  
  3.2   (User Financed Debt Service)                         56,640,000  
  3.3   State Transportation Fund
  3.4   Bond Proceeds Account                                31,118,000
  3.5   Bond Proceeds Cancellations                            (435,000)
  3.6   Trunk Highway Fund                                    3,800,000
  3.7   Trunk Highway Bond Proceeds Account                  15,015,000
  3.8                                                    APPROPRIATIONS
  3.9                                                    $ 
  3.10  Sec. 2.  UNIVERSITY OF MINNESOTA 
  3.11  Subdivision 1.  To the Board of Regents
  3.12  of the University of Minnesota for the 
  3.13  purposes specified in this section                   90,480,000 
  3.14  Subd. 2.  Higher Education Asset
  3.15  Preservation and Replacement (HEAPR)                 38,000,000 
  3.16  To be spent in accordance with 
  3.17  Minnesota Statutes, section 135A.046.  
  3.18  Subd. 3.  Academic Health Center, 
  3.19  Minneapolis                                           9,600,000
  3.20  To design, renovate, furnish, and equip 
  3.21  classrooms in the academic health care 
  3.22  facility to provide flexible space, 
  3.23  including computer-based testing 
  3.24  facilities, computer labs, and 
  3.25  simulation facilities for health 
  3.26  professional education. 
  3.27  Subd. 4.  Duluth Life Science 
  3.28  Building                                              9,300,000
  3.29  To design, renovate, furnish, and equip 
  3.30  the Life Science Building for the 
  3.31  pharmacy program and other academic 
  3.32  programs on the Duluth campus.  The 
  3.33  renovation may include, but is not 
  3.34  limited to, improvements to correct air 
  3.35  quality problems, life safety and 
  3.36  accessibility code deficiencies, 
  3.37  asbestos, and fireproofing of the 
  3.38  facility. 
  3.39  Subd. 5.  Education Sciences - Minneapolis           13,300,000
  3.40  To design, renovate, furnish, and equip 
  3.41  the Education Sciences Building.  
  3.42  Subd. 6.  Kolthoff Hall - 
  3.43  Minneapolis                                          16,000,000
  3.44  To design, renovate, furnish, and equip 
  3.45  Kolthoff Hall, including the correction 
  3.46  of air quality problems in the facility 
  3.47  that may include, but is not limited 
  3.48  to, repair or replacement of the 
  3.49  mechanical, electrical, and HVAC 
  3.50  systems. 
  3.51  Subd. 7.  Morris District Facilities                  2,890,000
  3.52  To design, construct, furnish, and 
  4.1   equip an addition to the heating plant 
  4.2   to provide the capacity to generate 
  4.3   steam by burning biomass. 
  4.4   Subd. 8.   Business School and  
  4.5   Utility Infrastructure - Duluth                       1,000,000
  4.6   To design a new building, including 
  4.7   classrooms, offices, teaching 
  4.8   laboratories, student services, and 
  4.9   administrative support for the Labovitz 
  4.10  School of Business and Economics and to 
  4.11  design upgrades for the central utility 
  4.12  distribution system to accommodate 
  4.13  increased demand.  
  4.14  Subd. 9.  North Central Research and 
  4.15  Outreach Center                                         390,000
  4.16  To construct a building at the North 
  4.17  Central Outreach Center at Grand Rapids 
  4.18  to accommodate the farm machinery 
  4.19  repair, maintenance, and carpentry 
  4.20  shops. 
  4.21  Subd. 10.  University Funding
  4.22  (a) The Board of Regents shall provide 
  4.23  nonstate funding for remaining costs 
  4.24  associated with projects authorized by 
  4.25  subdivisions 3 to 9. 
  4.26  (b)(1) The appropriation for each 
  4.27  project in subdivisions 3 to 9 is for 
  4.28  two-thirds of the assumed total project 
  4.29  cost up to a maximum of two-thirds of 
  4.30  150 percent of the appropriated amount. 
  4.31  (2) The amount of an appropriation that 
  4.32  is paid to the University must be 
  4.33  prorated if the actual final project 
  4.34  cost for a project in subdivisions 3 to 
  4.35  9 is less than 150 percent of the 
  4.36  appropriated amount for the project. 
  4.37  (3) The Board of Regents must certify 
  4.38  the actual final project cost for each 
  4.39  project. 
  4.40  (4) If the amount paid to the 
  4.41  University from an appropriation for a 
  4.42  project is found to have exceeded 
  4.43  two-thirds of 150 percent of the Board 
  4.44  of Regents-certified total actual 
  4.45  project cost, the state must offset the 
  4.46  excess amount paid from any other 
  4.47  appropriation to the University for any 
  4.48  other capital project, unless the 
  4.49  Department of Finance and the 
  4.50  University agree to an equivalent 
  4.51  alternative to the offset for 
  4.52  administrative convenience. 
  4.53  (5) The Board of Regents agrees to the 
  4.54  conditions in the clauses of this 
  4.55  paragraph for each appropriation in 
  4.56  subdivisions 3 to 9 by accepting the 
  4.57  appropriation. 
  4.58  Sec. 3.  MINNESOTA STATE COLLEGES AND 
  4.59  UNIVERSITIES 
  5.1   Subdivision 1.  To the Board of Trustees
  5.2   of the Minnesota State Colleges and 
  5.3   Universities for the purposes specified in 
  5.4   this section                                        147,017,000
  5.5   Subd. 2.  Higher Education Asset
  5.6   Preservation and Replacement                         49,000,000
  5.7   This appropriation is for the purposes 
  5.8   specified in Minnesota Statutes, 
  5.9   section 135A.046, including safety and 
  5.10  statutory compliance, envelope 
  5.11  integrity, mechanical systems, and 
  5.12  space restoration.  
  5.13  Subd. 3.  Winona State University                    10,235,000
  5.14  To design, renovate, furnish, and equip 
  5.15  Pasteur Hall for classrooms, science 
  5.16  laboratories, and related offices. 
  5.17  Subd. 4.  Minnesota State University - 
  5.18  Moorhead                                              9,645,000
  5.19  To renovate, furnish, and equip Hagen 
  5.20  Hall for classrooms, science 
  5.21  laboratories, and related offices. 
  5.22  Subd. 5.  Century Community and        
  5.23  Technical College                                     4,500,000
  5.24  To remodel, furnish, and equip recently 
  5.25  purchased space into a computer center, 
  5.26  offices, and smart classrooms. 
  5.27  Subd. 6.  St. Cloud State University                  2,900,000 
  5.28  To remodel, furnish, and equip 
  5.29  Centennial Hall to convert it from a 
  5.30  library to classroom and office space.  
  5.31  This appropriation is added to the 
  5.32  appropriation in Laws 2003, First 
  5.33  Special Session chapter 20, article 1, 
  5.34  section 3, subdivision 16. 
  5.35  Subd. 7.  Lake Superior Community      
  5.36  and Technical College                                 8,300,000
  5.37  To design, construct, furnish, and 
  5.38  equip an academic addition for smart 
  5.39  classrooms and open laboratories. 
  5.40  Subd. 8.  St. Cloud Technical College                12,960,000
  5.41  To design, construct, furnish, and 
  5.42  equip a building addition and to 
  5.43  renovate, furnish, and equip classroom 
  5.44  space into science space for allied 
  5.45  health programs and the co-location of 
  5.46  a workforce center. 
  5.47  Subd. 9.  South Central Technical                              
  5.48  College                                               4,747,000
  5.49  To remodel, furnish, and equip teaching 
  5.50  laboratories at the North Mankato 
  5.51  campus and for asset preservation at 
  5.52  the Faribault campus. 
  5.53  Subd. 10.  Inver Hills Community
  6.1   College                                               4,500,000
  6.2   To construct, furnish, and equip an 
  6.3   addition to and remodel space in the 
  6.4   College Center Building. 
  6.5   Subd. 11.  Bemidji State University,                    
  6.6   Northwest Technical College, Bemidji-Phase 2         10,000,000 
  6.7   To remodel, furnish, and equip 
  6.8   Bridgeman Hall for the emerging 
  6.9   technologies addition project and to 
  6.10  construct, furnish, and equip a 
  6.11  technical college addition for 
  6.12  shared-use of health care programs and 
  6.13  industrial technology programs of 
  6.14  Bemidji State University and Northwest 
  6.15  Technical College. 
  6.16  Subd. 12.  Systemwide Science Lab 
  6.17  Renovations                                           8,900,000
  6.18  To design, renovate, furnish, and equip 
  6.19  science laboratories at campuses 
  6.20  statewide. 
  6.21  Subd. 13.  Riverland Community and
  6.22  Technical College                                     4,100,000
  6.23  To design, remodel, furnish, and equip 
  6.24  existing space into labs and classrooms 
  6.25  at the Austin campus. 
  6.26  Subd. 14.  Rochester Community and 
  6.27  Technical College                                    10,945,000
  6.28  To design, renovate, furnish, and equip 
  6.29  the vacant Rockenbach gymnasium, part 
  6.30  of the Heintz center, and part of the 
  6.31  main campus buildings into a health 
  6.32  science center to co-locate nursing 
  6.33  programs, expand the dental clinic, and 
  6.34  create a community primary care clinic. 
  6.35  Subd. 15.  Systemwide Demolition
  6.36  Initiative                                            1,625,000
  6.37  To demolish obsolete buildings on ten 
  6.38  campuses. 
  6.39  Subd. 16.  Minnesota State University - 
  6.40  Mankato                                               2,560,000
  6.41  To design, through construction 
  6.42  documents, an addition to and partial 
  6.43  remodeling of Trafton Science Center to 
  6.44  provide additional science labs and 
  6.45  remodel existing science labs.  
  6.46  Subd. 17.  St. Cloud State University                   900,000
  6.47  To design, through construction 
  6.48  documents, renovation of and addition 
  6.49  to Brown Hall, and Math and Science 
  6.50  Hall, for science and health care 
  6.51  instruction. 
  6.52  Subd. 18.  Dakota Technical College                   1,200,000
  6.53  To remodel, furnish, and equip the west 
  6.54  side of the main campus facility for an 
  7.1   information technology and 
  7.2   telecommunications upgrade, an 
  7.3   integrated library and library 
  7.4   information technology center, science 
  7.5   lab and preparatory space and asset 
  7.6   preservation. 
  7.7   Subd. 19.  Debt Service
  7.8   (a) The board shall pay the debt 
  7.9   service on one-third of the principal 
  7.10  amount of state bonds sold to finance 
  7.11  projects authorized by this section, 
  7.12  except for higher education asset 
  7.13  preservation and replacement in 
  7.14  subdivision 2.  After each sale of 
  7.15  general obligation bonds, the 
  7.16  commissioner of finance shall notify 
  7.17  the board of the amounts assessed for 
  7.18  each year for the life of the bonds. 
  7.19  (b) The commissioner shall reduce the 
  7.20  board's assessment each year by 
  7.21  one-third of the net income from 
  7.22  investment of general obligation bond 
  7.23  proceeds in proportion to the amount of 
  7.24  principal and interest otherwise 
  7.25  required to be paid by the board.  The 
  7.26  board shall pay its resulting net 
  7.27  assessment to the commissioner of 
  7.28  finance by December 1 each year.  If 
  7.29  the board fails to make a payment when 
  7.30  due, the commissioner of finance shall 
  7.31  reduce allotments for appropriations 
  7.32  from the general fund otherwise 
  7.33  available to the board and apply the 
  7.34  amount of the reduction to cover the 
  7.35  missed debt service payment.  The 
  7.36  commissioner of finance shall credit 
  7.37  the payments received from the board to 
  7.38  the bond debt service account in the 
  7.39  state bond fund each December 1 before 
  7.40  money is transferred from the general 
  7.41  fund under Minnesota Statutes, section 
  7.42  16A.641, subdivision 10. 
  7.43  Sec. 4.  PERPICH CENTER FOR ARTS EDUCATION 
  7.44  Subdivision 1.  To the commissioner
  7.45  of administration for the purposes
  7.46  specified in this section                             1,100,000
  7.47  Subd. 2.  Campus Asset Preservation                     600,000 
  7.48  For asset preservation capital 
  7.49  improvements on the campus including, 
  7.50  but not limited to, construction or 
  7.51  repair of perimeter fencing, sidewalks, 
  7.52  roads, sewers, the addition of an air 
  7.53  conditioning chiller, and mold 
  7.54  abatement. 
  7.55  Subd. 3.  Beta Building Demolition                      500,000
  7.56  To demolish the Beta Building on the 
  7.57  Perpich Center Campus, dispose of any 
  7.58  hazardous materials, and fill the site. 
  7.59  Sec. 5.  EDUCATION 
  7.60  Subdivision 1.  To the commissioner of
  8.1   education for the purposes specified in
  8.2   this section                                          1,054,000
  8.3   Subd. 2.  East Metro Magnet
  8.4   School - Crosswinds Middle School                     1,054,000
  8.5   For a grant to East Metro Integration 
  8.6   District No. 6067, to complete land 
  8.7   acquisition of the current site for the 
  8.8   Crosswinds Arts and Science Middle 
  8.9   School. 
  8.10  Sec. 6.  MINNESOTA STATE ACADEMIES                    4,255,000 
  8.11  To the commissioner of administration 
  8.12  for asset preservation capital 
  8.13  improvements on both campuses of the 
  8.14  Minnesota State Academies for the Deaf 
  8.15  and the Blind.  
  8.16  Sec. 7.  NATURAL RESOURCES 
  8.17  Subdivision 1.  To the 
  8.18  commissioner of natural resources 
  8.19  for the purposes specified
  8.20  in this section                                      52,400,000
  8.21  Subd. 2.  Flood Hazard Mitigation
  8.22  Grants                                               20,000,000
  8.23  For the state share of flood hazard 
  8.24  mitigation grants for publicly owned 
  8.25  capital improvements to prevent or 
  8.26  alleviate flood damage under Minnesota 
  8.27  Statutes, section 103F.161. 
  8.28  $175,000 of this amount is for the 
  8.29  state share of a grant to the city of 
  8.30  Cannon Falls. 
  8.31  $3,400,000 of this amount is for the 
  8.32  state share of flood hazard mitigation 
  8.33  grants for the Roseau River Wildlife 
  8.34  Management Area, Palmville, Malung, and 
  8.35  the Grand Marais Creek Flood Reduction 
  8.36  Project in the Red Lake Watershed 
  8.37  District. 
  8.38  For grants for the Roseau River 
  8.39  Wildlife Management Area, Palmville, 
  8.40  and Malung, the state share must be $3 
  8.41  for each $1 of nonstate contribution. 
  8.42  To the extent that the cost of the 
  8.43  projects in Montevideo, Breckenridge, 
  8.44  East Grand Forks, Ada, Roseau, Oakport 
  8.45  Township, Granite Falls, Warren, and 
  8.46  Dawson exceed two percent of the median 
  8.47  household income in the municipality 
  8.48  multiplied by the number of households 
  8.49  in the municipality, this appropriation 
  8.50  is also for the local share of the 
  8.51  project. 
  8.52  Subd. 3.  Dam Renovation and 
  8.53  Removal                                               1,200,000
  8.54  To renovate or remove publicly owned 
  8.55  dams.  The commissioner shall determine 
  8.56  project priorities as appropriate under 
  8.57  Minnesota Statutes, sections 103G.511 
  9.1   and 103G.515. 
  9.2   $200,000 of this amount is to remove 
  9.3   the dam on Rush Creek in Chisago 
  9.4   County, restore the river channel and 
  9.5   floodplain, and construct off-channel 
  9.6   ponds for storm water retention and 
  9.7   recreation. 
  9.8   Subd. 4.  RIM - Critical Habitat 
  9.9   Match                                                 2,000,000
  9.10  To provide the state match for the 
  9.11  critical habitat private sector 
  9.12  matching account under Minnesota 
  9.13  Statutes, section 84.943, for the 
  9.14  acquisition or improvements of a 
  9.15  capital nature for critical fish, 
  9.16  wildlife, and native plant habitats. 
  9.17  Subd. 5.  RIM - Wildlife Area Land
  9.18  Acquisition                                           6,000,000
  9.19  To acquire land for wildlife management 
  9.20  area purposes under Minnesota Statutes, 
  9.21  section 86A.05, subdivision 8. 
  9.22  Subd. 6.  Fisheries Acquisition and
  9.23  Improvement                                           1,000,000
  9.24  To acquire land and interests in land 
  9.25  for aquatic management areas and to 
  9.26  make public improvements and 
  9.27  betterments of a capital nature to 
  9.28  aquatic management areas established 
  9.29  under Minnesota Statutes, section 
  9.30  86A.05, subdivision 14. 
  9.31  Subd. 7.  Water Access Acquisition,
  9.32  Betterment, and Fishing Piers                         3,000,000
  9.33  For public water access acquisition, 
  9.34  construction, and renovation to capital 
  9.35  projects on lakes and rivers, including 
  9.36  water access through the provision of 
  9.37  fishing piers and shoreline access 
  9.38  under Minnesota Statutes, section 
  9.39  86A.05, subdivision 9. 
  9.40  Subd. 8.  Reforestation                               3,000,000
  9.41  To increase reforestation activities to 
  9.42  meet the reforestation requirements of 
  9.43  Minnesota Statutes, section 89.002, 
  9.44  subdivision 2, including planting, 
  9.45  seeding, site preparation, and 
  9.46  purchasing tree seeds and seedlings. 
  9.47  Subd. 9.  Scientific and Natural 
  9.48  Area Acquisition and Development                       300,000
  9.49  To acquire land for scientific and 
  9.50  natural areas and for development, 
  9.51  protection, or improvements of a 
  9.52  capital nature to scientific and 
  9.53  natural areas under Minnesota Statutes, 
  9.54  sections 84.033 and 86A.05, subdivision 
  9.55  5. 
  9.56  Subd. 10.  State and Local Trail 
  9.57  Development and Acquisition                          6,200,000
 10.1   (a) $4,500,000 is for accelerated state 
 10.2   trail development.  Of this amount:  
 10.3   (1) $200,000 is for acquisition and 
 10.4   development of the Goodhue Pioneer 
 10.5   Trail; (2) $450,000 is for design, 
 10.6   acquisition, and construction of the 
 10.7   segment of the Shooting Star Trail from 
 10.8   Leroy to Rose Creek; (3) $1,500,000 is 
 10.9   for extension across Excelsior Road to 
 10.10  connect with the Oberstar Tunnel on the 
 10.11  Paul Bunyan Trail; (4) $450,000 is for 
 10.12  development of the Forestville segment 
 10.13  of the Blufflands Trail system; (5) 
 10.14  $900,000 is for acquisition and 
 10.15  preliminary development of the 
 10.16  undeveloped portion of the Paul Bunyan 
 10.17  State Trail in the city of Bemidji; and 
 10.18  (6) $1,000,000 is for acquisition and 
 10.19  development of the Mill Towns State 
 10.20  Trail between the existing Cannon 
 10.21  Valley Trail and the Sakatah Singing 
 10.22  Hills State Trail.  
 10.23  (b) $700,000 is for rehabilitation 
 10.24  projects on existing state trails. 
 10.25  (c) $500,000 is for a grant to the city 
 10.26  of St. Louis Park to design and 
 10.27  construct a grade-separated pedestrian 
 10.28  and trail crossing over Hennepin County 
 10.29  State-Aid Highway (CSAH) 25 near Belt 
 10.30  Line Boulevard in St. Louis Park.  The 
 10.31  grant is under the program in Minnesota 
 10.32  Statutes, section 85.019, subdivision 
 10.33  4c. 
 10.34  (d) $200,000 is for a grant under 
 10.35  Minnesota Statutes, section 85.019, 
 10.36  subdivision 4c, to the city of 
 10.37  Bloomington to remove the old Cedar 
 10.38  Avenue bridge in preparation for a 
 10.39  hiking and bicycling trail connection. 
 10.40  (e) $300,000 is for a grant to Stearns 
 10.41  County under Minnesota Statutes, 
 10.42  section 85.019, subdivision 4c, for 
 10.43  land acquisition, engineering, and 
 10.44  construction of trail connections on 
 10.45  the Lake Koronis Trail. 
 10.46  Subd. 11.  State Forest Land Acquisition              1,000,000
 10.47  To acquire, in fee and easement, 
 10.48  private lands from willing sellers 
 10.49  within established boundaries of state 
 10.50  forests established under Minnesota 
 10.51  Statutes, section 89.021, and within 
 10.52  forest legacy areas. 
 10.53  Subd. 12.  State Park and Recreation Area
 10.54  Acquisition                                           2,000,000
 10.55  For acquisition of land under Minnesota 
 10.56  Statutes, section 86A.05, subdivisions 
 10.57  2 and 3, from willing sellers of 
 10.58  private lands within state park and 
 10.59  recreation area boundaries established 
 10.60  by law. 
 10.61  Subd. 13.  Lake Superior Zoo                            400,000
 11.1   For a grant to the city of Duluth to 
 11.2   design and construct facility 
 11.3   improvements at the Lake Superior Zoo.  
 11.4   This appropriation is available when 
 11.5   matched by $1 of money secured or 
 11.6   provided by the city of Duluth for each 
 11.7   $1 of state money. 
 11.8   Subd. 14.  Local Parks Grants                         2,000,000
 11.9   For local parks grants under Minnesota 
 11.10  Statutes, section 85.019, subdivisions 
 11.11  2 and 4a. 
 11.12  $500,000 of this amount is for a grant 
 11.13  to the city of South St. Paul for the 
 11.14  closure, capping, and remediation of 
 11.15  approximately 80 acres of the Port 
 11.16  Crosby construction and demolition 
 11.17  debris landfill in South St. Paul, as 
 11.18  the fourth phase of converting the land 
 11.19  into parkland, and to restore 
 11.20  approximately 80 acres of riverfront 
 11.21  land along the Mississippi River. 
 11.22  $250,000 of this amount is for a grant 
 11.23  to the Minneapolis Park and Recreation 
 11.24  Board to develop a plan to complete the 
 11.25  Grand Rounds National Scenic Byway by 
 11.26  providing a link between northeast 
 11.27  Minneapolis on Stinson Avenue and 
 11.28  southeast Minneapolis at East River 
 11.29  Road. 
 11.30  Subd. 15.  Regional Parks: 
 11.31  Greater Minnesota                                     3,000,000
 11.32  For grants to counties and public 
 11.33  regional parks organizations located 
 11.34  outside the metropolitan area as 
 11.35  defined in Minnesota Statutes, section 
 11.36  473.121, subdivision 2, to acquire 
 11.37  land, design, and construct and 
 11.38  redevelop regional parks and trails, 
 11.39  open space, and recreational 
 11.40  facilities.  The improvements must be 
 11.41  of a capital nature.  Each $3 of state 
 11.42  grants must be matched by $2 of 
 11.43  nonstate funds. 
 11.44  Subd. 16.  Big Bog State
 11.45  Recreation Area                                       1,300,000
 11.46  For development of the Big Bog State 
 11.47  Recreation Area, including construction 
 11.48  of a visitor's center. 
 11.49  Sec. 8.  POLLUTION CONTROL AGENCY                    14,000,000 
 11.50  To the Pollution Control Agency to 
 11.51  design and construct remedial systems 
 11.52  and acquire land at landfills 
 11.53  throughout the state in accordance with 
 11.54  the closed landfill program under 
 11.55  Minnesota Statutes, section 115B.39. 
 11.56  Sec. 9.  OFFICE OF ENVIRONMENTAL ASSISTANCE           4,000,000 
 11.57  To the Office of Environmental 
 11.58  Assistance for the solid waste capital 
 11.59  assistance grants program under 
 12.1   Minnesota Statutes, section 115A.54.  
 12.2   Grants from this appropriation must be 
 12.3   awarded to applicants whose 
 12.4   applications were on file with the 
 12.5   office before September 13, 2003. 
 12.6   Sec. 10.  BOARD OF WATER AND SOIL RESOURCES 
 12.7   Subdivision 1.  To the Board 
 12.8   of Water and Soil Resources for the 
 12.9   purposes specified in this section                   23,000,000
 12.10  Subd. 2.  RIM and CREP Conservation
 12.11  Easements                                            20,000,000
 12.12  This appropriation is to acquire 
 12.13  conservation easements from landowners 
 12.14  on marginal lands to protect soil and 
 12.15  water quality and to support fish and 
 12.16  wildlife habitat as provided in 
 12.17  Minnesota Statutes, section 103F.515. 
 12.18  The board must absorb the 
 12.19  administrative costs of this program. 
 12.20  Subd. 3.  Wetland Replacement          
 12.21  Due to Public Road Projects                           3,000,000
 12.22  To acquire land for wetlands or restore 
 12.23  wetlands to be used to replace wetlands 
 12.24  drained or filled as a result of the 
 12.25  repair, maintenance, or rehabilitation 
 12.26  of existing public roads as required by 
 12.27  Minnesota Statutes, section 103G.222, 
 12.28  subdivision 1, paragraphs (k) and (l). 
 12.29  The purchase price paid for acquisition 
 12.30  of land, fee, or perpetual easement 
 12.31  must be the fair market value as 
 12.32  determined by the board.  The board may 
 12.33  enter into agreements with the federal 
 12.34  government, other state agencies, 
 12.35  political subdivisions, and nonprofit 
 12.36  organizations or fee owners to acquire 
 12.37  land and restore and create wetlands 
 12.38  and to acquire existing wetland banking 
 12.39  credits with money provided by this 
 12.40  appropriation.  Acquisition of or the 
 12.41  conveyance of land may be in the name 
 12.42  of the political subdivision.  
 12.43  Sec. 11.  AGRICULTURE                                          
 12.44  Subdivision 1.  To the commissioner of
 12.45  agriculture or other named agencies for
 12.46  the purposes specified in this section               18,570,000
 12.47  Subd. 2.  Rural Finance Authority      
 12.48  Loan Participation                                   18,000,000
 12.49  For purposes as set forth in the 
 12.50  Minnesota Constitution, article XI, 
 12.51  section 5, clause (h).  To the rural 
 12.52  finance authority to purchase 
 12.53  participation interests in or to make 
 12.54  direct agricultural loans to farmers 
 12.55  under Minnesota Statutes, chapter 41B.  
 12.56  This appropriation is for the beginning 
 12.57  farmer program under Minnesota 
 12.58  Statutes, section 41B.039, the loan 
 12.59  restructuring program under Minnesota 
 13.1   Statutes, section 41B.04, the 
 13.2   seller-sponsored program under 
 13.3   Minnesota Statutes, section 41B.042, 
 13.4   the agricultural improvement loan 
 13.5   program under Minnesota Statutes, 
 13.6   section 41B.043, and the livestock 
 13.7   expansion loan program under Minnesota 
 13.8   Statutes, section 41B.045.  All debt 
 13.9   service on bond proceeds used to 
 13.10  finance this appropriation must be 
 13.11  repaid by the rural finance authority 
 13.12  under Minnesota Statutes, section 
 13.13  16A.643.  Loan participations must be 
 13.14  priced to provide full interest and 
 13.15  principal coverage and a reserve for 
 13.16  potential losses. 
 13.17  Subd. 3.  Agriculture Water Management 
 13.18  Research Partnership                                    570,000
 13.19  To the Board of Regents of the 
 13.20  University of Minnesota to establish or 
 13.21  expand agricultural water management 
 13.22  projects at the Crookston, Morris, 
 13.23  Lamberton, and Waseca Research and 
 13.24  Outreach Centers in partnership with 
 13.25  the Department of Agriculture. 
 13.26  Sec. 12.  MINNESOTA ZOOLOGICAL
 13.27  GARDEN                                                2,000,000
 13.28  To the Minnesota Zoological Garden for 
 13.29  capital asset preservation improvements 
 13.30  and betterments to roofs, mechanical 
 13.31  and utility systems, roads and 
 13.32  pathways, building envelopes, storm 
 13.33  water systems, exhibits, and safety and 
 13.34  code compliance upgrades. 
 13.35  Sec. 13.  ADMINISTRATION                              1,000,000
 13.36  To the commissioner of administration 
 13.37  for the Capital Asset Preservation and 
 13.38  Replacement Account (CAPRA), to be 
 13.39  spent in accordance with Minnesota 
 13.40  Statutes, section 16A.632.  
 13.41  Sec. 14.  CAPITOL AREA ARCHITECTURAL
 13.42  AND PLANNING BOARD                                    1,870,000
 13.43  To the commissioner of administration, 
 13.44  for repair and restoration of the 
 13.45  public corridors, walls, and ceilings 
 13.46  of the third floor and the dome of the 
 13.47  Capitol Building in St. Paul.  
 13.48  Sec. 15.  AMATEUR SPORTS COMMISSION     
 13.49  Subdivision 1.  To the Amateur Sports
 13.50  Commission for the purposes specified 
 13.51  in this section                                      18,100,000
 13.52  Subd. 2.  Bemidji Hockey Arena                       18,000,000
 13.53  To design, construct, furnish, and 
 13.54  equip a hockey arena on the campus of 
 13.55  Bemidji State University.  The Amateur 
 13.56  Sports Commission must consult with 
 13.57  Bemidji State University on the 
 13.58  design.  The hockey arena is to be 
 13.59  owned by the Board of Trustees of the 
 14.1   Minnesota State Colleges and 
 14.2   Universities and operated by Bemidji 
 14.3   State University. 
 14.4   The Board of Trustees of the Minnesota 
 14.5   State Colleges and Universities shall 
 14.6   pay the debt service according to 
 14.7   section 3, subdivision 19, on one-third 
 14.8   of the principal amount of state bonds 
 14.9   sold to finance the project under this 
 14.10  section. 
 14.11  Subd. 3.  Bloomington Ski Jump                          100,000
 14.12  To pay for costs for unforeseen site 
 14.13  conditions in Phase I and for Phase II 
 14.14  construction, primarily, of the summer 
 14.15  surface on the Hyland K70 ski jump in 
 14.16  Bloomington. 
 14.17  Sec. 16.  MILITARY AFFAIRS 
 14.18  Subdivision 1.  To the adjutant
 14.19  general for the purposes specified
 14.20  in this section                                       5,000,000
 14.21  Subd. 2.  Asset Preservation                          4,000,000 
 14.22  For asset preservation improvements, 
 14.23  Americans With Disabilities Act 
 14.24  upgrades, and betterments of a capital 
 14.25  nature at military affairs facilities 
 14.26  statewide. 
 14.27  Subd. 3.  Facility Life Safety         
 14.28  Improvements                                          1,000,000
 14.29  For life/safety improvements and 
 14.30  correcting code deficiencies at 
 14.31  military affairs facilities statewide. 
 14.32  Sec. 17.  VETERANS AFFAIRS                              500,000 
 14.33  To the commissioner of administration 
 14.34  to complete construction of the World 
 14.35  War II veterans' memorial on the 
 14.36  Capitol mall.  This is the final state 
 14.37  appropriation for the project and is 
 14.38  contingent on sufficient nonstate funds 
 14.39  being received and deposited into a 
 14.40  segregated account for perpetual 
 14.41  maintenance of the memorial. 
 14.42  Sec. 18.  TRANSPORTATION 
 14.43  Subdivision 1.  To the 
 14.44  commissioner of transportation for 
 14.45  the purposes specified in this section               81,008,000
 14.46  Subd. 2.  Local Bridge Replacement
 14.47  and Rehabilitation                                   31,118,000
 14.48  This appropriation is from the bond 
 14.49  proceeds account in the state 
 14.50  transportation fund. 
 14.51  The commissioner shall spend this 
 14.52  appropriation as grants to political 
 14.53  subdivisions for the replacement, 
 14.54  rehabilitation, and repair of key 
 14.55  bridges on the state transportation 
 15.1   system.  The commissioner shall make 
 15.2   these grants in accordance with and for 
 15.3   the purposes of Minnesota Statutes, 
 15.4   section 174.50. 
 15.5   Subd. 3.  Local Road Improvement Program             23,090,000
 15.6   The commissioner shall deposit this 
 15.7   amount in the local road improvement 
 15.8   fund for allocation as follows: 
 15.9   (1) $15,000,000 is for deposit in the 
 15.10  local road account for routes of 
 15.11  regional significance to be spent as 
 15.12  grants for the purposes of Minnesota 
 15.13  Statutes, section 174.52, subdivision 
 15.14  4; and 
 15.15  (2) $8,090,000 is for deposit in the 
 15.16  trunk highway corridor projects account 
 15.17  to be spent as grants for the purposes 
 15.18  of Minnesota Statutes, section 174.52, 
 15.19  subdivision 2. 
 15.20  Subd. 4.  Port Development Assistance                 4,000,000
 15.21  For the purposes of the port 
 15.22  development program under Minnesota 
 15.23  Statutes, chapter 457A. 
 15.24  Subd. 5.  Small Capital Projects                      3,800,000
 15.25  To design, construct, furnish, and 
 15.26  equip statewide building projects, 
 15.27  consisting of truck stations, salt 
 15.28  storage facilities, cold storage 
 15.29  facilities, and Mankato headquarters 
 15.30  site work. 
 15.31  This appropriation is from the trunk 
 15.32  highway fund. 
 15.33  Subd. 6.  Personal Rapid Transit                      4,000,000
 15.34  (a) For a grant to a statutory or home 
 15.35  rule charter city, a public 
 15.36  postsecondary educational institution, 
 15.37  or a public transit authority with the 
 15.38  power to issue general obligation 
 15.39  bonds, if the grantee is a signatory to 
 15.40  an agreement to implement the project 
 15.41  funded in this subdivision entered into 
 15.42  by at least one statutory or home rule 
 15.43  charter city, public postsecondary 
 15.44  educational institution, and public 
 15.45  transit authority with the power to 
 15.46  issue general obligation bonds. 
 15.47  (b) This appropriation is to design, 
 15.48  acquire, construct, furnish, and equip 
 15.49  a personal rapid transit safety 
 15.50  certification and training facility, in 
 15.51  order to (1) confirm the safety of the 
 15.52  patented personal rapid transit 
 15.53  technology for sustainable public 
 15.54  transit service, (2) provide an 
 15.55  opportunity for engineers to be trained 
 15.56  in its design and use, and (3) 
 15.57  establish a new and economically 
 15.58  self-sustaining, viable technology in 
 15.59  Minnesota so that the University of 
 16.1   Minnesota may realize royalty benefits 
 16.2   from an existing agreement.  The 
 16.3   grantee may enter into an agreement for 
 16.4   operation of the facility, subject to 
 16.5   Minnesota Statutes, section 16A.695. 
 16.6   (c) The facility, at a minimum, must 
 16.7   consist of a 2,200-foot oval guideway, 
 16.8   one off-line station, and a maintenance 
 16.9   and control center.  The facility must 
 16.10  be developed in accord with plans for a 
 16.11  future personal rapid transit system 
 16.12  serving the area within the 
 16.13  jurisdiction of the signatories to the 
 16.14  agreement required in paragraph (a). 
 16.15  (d) This appropriation is contingent on 
 16.16  (1) a contribution of at least 
 16.17  $8,000,000 in private resources from an 
 16.18  entity with the licensing and 
 16.19  technological capacity to provide at 
 16.20  least three personal rapid transit 
 16.21  vehicles, training services for 
 16.22  engineers, engineering work, and six 
 16.23  months of operational testing to 
 16.24  confirm the technology's safety for 
 16.25  public use, (2) a contribution of at 
 16.26  least $12,000,000 from other nonstate 
 16.27  sources to meet the total project cost 
 16.28  of $24,000,000, and (3) an agreement by 
 16.29  a postsecondary educational institution 
 16.30  to provide technical support and 
 16.31  training for planning, design, 
 16.32  operation, and maintenance of personal 
 16.33  rapid transit systems. 
 16.34  Subd. 7.  Mankato Headquarters Building             15,000,000
 16.35  To design, construct, furnish, and 
 16.36  equip a new headquarters facility in 
 16.37  Mankato.  The commissioner shall sell 
 16.38  the existing site at fair market 
 16.39  value.  Any proceeds from the sale are 
 16.40  appropriated to the commissioner to pay 
 16.41  for costs associated with the sale and 
 16.42  to supplement the appropriation for the 
 16.43  new facility. 
 16.44  This appropriation is from the trunk 
 16.45  highway bond proceeds account. 
 16.46  Sec. 19.  METROPOLITAN COUNCIL
 16.47  Subdivision 1.  To the Metropolitan 
 16.48  Council for the purposes specified 
 16.49  in this section                                      18,000,000
 16.50  Subd. 2.  Cedar Avenue Bus 
 16.51  Rapid Transit (BRT)                                  10,000,000
 16.52  For environmental studies, preliminary 
 16.53  engineering, bus lane improvements, and 
 16.54  transit station construction and 
 16.55  improvements for Cedar Avenue bus rapid 
 16.56  transit between the Mall of America in 
 16.57  Bloomington and the cities of Eagan, 
 16.58  Apple Valley, and Lakeville. 
 16.59  Subd. 3.  Rush Line Corridor Transitway              1,000,000 
 16.60  To match federal funds and for 
 17.1   right-of-way acquisition, planning, and 
 17.2   engineering of the Rush Line corridor 
 17.3   transitway between St. Paul and 
 17.4   Hinckley. 
 17.5   Subd. 4.  Metropolitan Regional
 17.6   Parks Capital Improvements                            7,000,000
 17.7   This appropriation must be used to pay 
 17.8   the cost of improvements and 
 17.9   betterments of a capital nature and 
 17.10  acquisition by the council and local 
 17.11  government units of regional 
 17.12  recreational open-space lands in 
 17.13  accordance with the council's policy 
 17.14  plan as provided in Minnesota Statutes, 
 17.15  section 473.147.  Priority should be 
 17.16  given to park rehabilitation and land 
 17.17  acquisition projects. 
 17.18  Sec. 20.  HUMAN SERVICES
 17.19  Subdivision 1.  To the 
 17.20  commissioner of administration 
 17.21  for the purposes specified 
 17.22  in this section                                       9,014,000
 17.23  Subd. 2.  St. Peter Regional 
 17.24  Treatment Center Sex Offender Facility                3,000,000
 17.25  To design new facilities for up to 150 
 17.26  beds for the treatment of sex offenders 
 17.27  in the Minnesota Sexual Offender 
 17.28  Program at the St. Peter Regional 
 17.29  Treatment Center. 
 17.30  Subd. 3.  Systemwide - Campus
 17.31  Redevelopment/Reuse/Demolition                        5,000,000
 17.32  To demolish or improve surplus, 
 17.33  nonfunctional, or deteriorated 
 17.34  facilities and infrastructure at 
 17.35  Department of Human Services campuses 
 17.36  statewide. 
 17.37  Of this amount, up to $250,000 in 
 17.38  fiscal year 2005 is to the commissioner 
 17.39  to provide grants to cities, counties, 
 17.40  or towns to purchase and place cemetery 
 17.41  grave markers or memorial monuments, 
 17.42  that include the available names of 
 17.43  individuals, at cemeteries located on 
 17.44  the site of former or current regional 
 17.45  treatment centers or state hospitals 
 17.46  and within the boundaries of the city, 
 17.47  county, or town awarded the grant.  An 
 17.48  individual monument must not be placed 
 17.49  if the family of the deceased resident 
 17.50  objects to the placement of the 
 17.51  monument.  A grantee must consult with 
 17.52  members of local service or charitable 
 17.53  organizations, members of the local 
 17.54  business community, and persons with 
 17.55  mental illness or developmental 
 17.56  disabilities or their representatives, 
 17.57  and to the extent possible, consult 
 17.58  with family members of deceased 
 17.59  residents of the regional treatment 
 17.60  center or state hospital, and current 
 17.61  or former employees of the regional 
 17.62  treatment center or state hospital. 
 18.1   Subd. 4.  Systemwide Roof
 18.2   Renovation and Replacement                            1,014,000
 18.3   For renovation and replacement of roofs 
 18.4   at Department of Human Services 
 18.5   facilities statewide. 
 18.6   Sec. 21.  VETERANS HOMES BOARD 
 18.7   Subdivision 1.  To the commissioner
 18.8   of administration for the purposes
 18.9   specified in this section                             7,077,000  
 18.10  Subd. 2.  Minneapolis Veterans Home - 
 18.11  Waste Piping Replacement                              1,077,000 
 18.12  For design, renovation, and related 
 18.13  costs of replacing the sanitary waste 
 18.14  piping in Building 17 at the 
 18.15  Minneapolis Veterans Home. 
 18.16  Subd. 3.  Asset Preservation                          6,000,000 
 18.17  For asset preservation improvements and 
 18.18  betterments of a capital nature at 
 18.19  veterans homes statewide.  
 18.20  Sec. 22.  CORRECTIONS 
 18.21  Subdivision 1.  To the commissioner of 
 18.22  administration for the purposes specified
 18.23  in this section                                      65,433,000
 18.24  Subd. 2.  Minnesota Correctional       
 18.25  Facility - Faribault Asset Preservation              34,891,000
 18.26  For asset preservation of existing 
 18.27  facilities at the Minnesota 
 18.28  Correctional Facility - Faribault. 
 18.29  Subd. 3.  Minnesota Correctional       
 18.30  Facility - Stillwater                                19,192,000
 18.31  To design, construct, furnish, and 
 18.32  equip a new 150-bed high security 
 18.33  segregation unit to improve staff 
 18.34  safety and accommodate increased inmate 
 18.35  population, including the remodeling of 
 18.36  the discipline and 
 18.37  psychology/psychiatry unit, the 
 18.38  demolition of the former health 
 18.39  services building, and the removal of 
 18.40  walls dividing Cell Hall A/West and 
 18.41  Cell Hall A/Segregation. 
 18.42  Subd. 4.  Asset Preservation                         11,000,000 
 18.43  For improvements and betterments of a 
 18.44  capital nature at Minnesota 
 18.45  correctional facilities statewide, 
 18.46  including, but not limited to, 
 18.47  emergency lighting projects, roof and 
 18.48  window replacement, tuckpointing, and 
 18.49  asbestos abatement. 
 18.50  Subd. 5.  Minnesota Correctional       
 18.51  Facility - Willow River                                 350,000
 18.52  To purchase, furnish, equip, and 
 18.53  prepare foundation and utilities for a 
 18.54  new 24-bed prefabricated building. 
 19.1   Subd. 6.  Study and Report on Inmate Population 
 19.2   Growth and Alternative Sentencing Models 
 19.3   The commissioner of corrections shall 
 19.4   fund, from existing resources, a study 
 19.5   of inmate population growth, increased 
 19.6   demand for prison and jail beds, and 
 19.7   alternative sentencing models.  The 
 19.8   commissioner shall contract with an 
 19.9   entity outside of state government to 
 19.10  perform the study.  The commissioner 
 19.11  and the executive director of the 
 19.12  sentencing guidelines commission must 
 19.13  cooperate fully with the entity 
 19.14  selected to perform the study. 
 19.15  The study must analyze, at a minimum, 
 19.16  the following topics: 
 19.17  (1) projected growth in Minnesota's 
 19.18  inmate population over the next ten 
 19.19  years for both state and local 
 19.20  correctional facilities; 
 19.21  (2) specific inmate growth projections 
 19.22  over the next ten years based on 
 19.23  anticipated severity level distribution 
 19.24  of future inmates; 
 19.25  (3) projected need for additional 
 19.26  prison and jail beds over the next ten 
 19.27  years, including a specific breakdown 
 19.28  by state prison versus local jail and 
 19.29  by severity levels within state 
 19.30  prisons; 
 19.31  (4) a cost/benefit analysis and 
 19.32  evaluation of whether inmates should be 
 19.33  housed in private prisons or jails and 
 19.34  an assessment of which class or classes 
 19.35  of inmates are best suited for 
 19.36  incarceration in private prisons; and 
 19.37  (5) alternatives to Minnesota's current 
 19.38  system of determinate sentencing 
 19.39  guidelines, specifically addressing the 
 19.40  use of indeterminate sentencing and a 
 19.41  parole board for certain classes of 
 19.42  offenders including drug offenders, and 
 19.43  an assessment of whether alternative 
 19.44  sentencing approaches would improve the 
 19.45  operation, effectiveness, and outcomes 
 19.46  of Minnesota's criminal justice system. 
 19.47  The report containing the findings and 
 19.48  recommendations from this study is due 
 19.49  to the chairs and ranking minority 
 19.50  members of the senate and house 
 19.51  committees having jurisdiction over 
 19.52  criminal justice policy by February 15, 
 19.53  2005. 
 19.54  Sec. 23.  EMPLOYMENT AND ECONOMIC DEVELOPMENT
 19.55  Subdivision 1.  To the commissioner of
 19.56  employment and economic development or other
 19.57  named agency for the purposes
 19.58  specified in this section                            61,280,000
 19.59  Subd. 2.  State Match for
 19.60  Federal Grants                                       16,280,000
 20.1   (a) To the public facilities authority: 
 20.2   (1) to match federal grants to the 
 20.3   water pollution control revolving fund 
 20.4   under Minnesota Statutes, section 
 20.5   446A.07; and 
 20.6   (2) to match federal grants to the 
 20.7   drinking water revolving fund under 
 20.8   Minnesota Statutes, section 446A.081. 
 20.9   (b) The expenditure and allocation of 
 20.10  state matching money between funds 
 20.11  described in paragraph (a), clauses (1) 
 20.12  and (2), must be based on the amount of 
 20.13  federal money appropriated to the funds.
 20.14  (c) This appropriation must be used for 
 20.15  qualified capital projects. 
 20.16  Subd. 3.  Minnesota Redevelopment
 20.17  Account                                              15,000,000
 20.18  For transfer to the Minnesota 
 20.19  redevelopment account created in 
 20.20  Minnesota Statutes, section 116J.571.  
 20.21  This appropriation may be used for 
 20.22  grants for eligible projects within the 
 20.23  biotechnology and health science zone 
 20.24  designated under Minnesota Statutes, 
 20.25  section 469.334.  
 20.26  Subd. 4.  Wastewater Infrastructure 
 20.27  Funding Program                                      10,000,000
 20.28  To the Public Facilities Authority for 
 20.29  the purposes specified in this 
 20.30  subdivision.  $10,000,000 of this 
 20.31  appropriation is for grants to eligible 
 20.32  municipalities under the wastewater 
 20.33  infrastructure program established in 
 20.34  Minnesota Statutes, section 446A.072. 
 20.35  To the greatest practical extent, the 
 20.36  authority must use the funds for 
 20.37  projects on the 2004 project priority 
 20.38  list in priority order to qualified 
 20.39  applicants that submit plans and 
 20.40  specifications to the Pollution Control 
 20.41  Agency or receive a funding commitment 
 20.42  from USDA rural development before 
 20.43  December 1, 2005. 
 20.44  The authority must absorb the costs for 
 20.45  administration of the wastewater 
 20.46  infrastructure program. 
 20.47  Subd. 5.  University of Minnesota -       
 20.48  Mayo Clinic Biotechnology Research Facility          20,000,000 
 20.49  To the Board of Regents of the 
 20.50  University of Minnesota to purchase 
 20.51  three floors in the Stabile Building on 
 20.52  the Mayo Clinic campus in Rochester.  
 20.53  The floors are to be used for 
 20.54  scientific research beneficial to 
 20.55  collaborative research efforts between 
 20.56  the University of Minnesota and the 
 20.57  Mayo Clinic.  The three floors will be 
 20.58  owned by the University of Minnesota 
 21.1   and operated by the Mayo Clinic through 
 21.2   a use agreement approved by the 
 21.3   commissioner of finance subject to 
 21.4   Minnesota Statutes, section 16A.695. 
 21.5   Sec. 24.  MINNESOTA HISTORICAL SOCIETY 
 21.6   Subdivision 1.  To the Minnesota 
 21.7   Historical Society for the purposes 
 21.8   specified in this section                             4,000,000
 21.9   Subd. 2.  Historic Sites Asset 
 21.10  Preservation                                          2,000,000
 21.11  For capital improvements and 
 21.12  betterments at state historic sites, 
 21.13  buildings, landscaping at historic 
 21.14  buildings, exhibits, markers, and 
 21.15  monuments.  The society shall determine 
 21.16  project priorities as appropriate based 
 21.17  on need. 
 21.18  Subd. 3.  County and Local Preservation Grants        2,000,000
 21.19  To be allocated to county and local 
 21.20  jurisdictions as matching money for 
 21.21  historic preservation projects of a 
 21.22  capital nature.  Grant recipients must 
 21.23  be public entities and must match state 
 21.24  funds on at least an equal basis.  The 
 21.25  facilities must be publicly owned. 
 21.26  Sec. 25.  GRANTS TO POLITICAL SUBDIVISIONS 
 21.27  Subdivision 1.  To the commissioner of
 21.28  employment and economic development or other
 21.29  named agency for the purposes specified
 21.30  in this section                                      46,740,000
 21.31  Subd. 2.  Buffalo Lake Maintenance
 21.32  Garage and Street Repair                                635,000
 21.33  For a grant to the city of Buffalo Lake 
 21.34  to design, construct, furnish, and 
 21.35  equip a municipal maintenance garage 
 21.36  and reconstruct city streets damaged by 
 21.37  a tornado. 
 21.38  Subd. 3.  Roseau Infrastructure Repair and 
 21.39  Municipal Complex Relocation                         10,000,000
 21.40  (a)(1) $4,615,000 to the public 
 21.41  facilities authority for a grant to the 
 21.42  city of Roseau to assist with the cost 
 21.43  of rehabilitation and replacement of 
 21.44  publicly owned infrastructure, 
 21.45  including storm sewers, wastewater and 
 21.46  municipal utility service, drinking 
 21.47  water systems, and other infrastructure 
 21.48  damaged by flooding in the area 
 21.49  included in DR-1419.  For the purposes 
 21.50  of this appropriation, criteria, 
 21.51  limitations, and repayment requirements 
 21.52  in Minnesota Statutes, sections 
 21.53  446A.07, 446A.072, and 446A.081, are 
 21.54  waived. 
 21.55  (2) $5,385,000 is for a grant to the 
 21.56  city of Roseau to relocate the flood 
 21.57  damaged city hall, auditorium, library, 
 21.58  museum, and police department out of 
 22.1   the Roseau River floodway as a result 
 22.2   of flooding as declared in DR-1419, and 
 22.3   in accordance with Minnesota Statutes, 
 22.4   section 16A.86. 
 22.5   (b) Capital costs for the projects in 
 22.6   paragraph (a), incurred in calendar 
 22.7   year 2004 after the effective date of 
 22.8   this act are eligible for reimbursement 
 22.9   from the grants authorized in paragraph 
 22.10  (a). 
 22.11   Subd. 4.  Lewis and Clark Rural Water System         1,700,000 
 22.12  (a) To the public facilities authority 
 22.13  for grants to counties, rural water 
 22.14  systems, or municipalities served by 
 22.15  the Lewis and Clark Rural Water System 
 22.16  to acquire land, predesign, design, 
 22.17  construct, furnish, and equip one or 
 22.18  more rural water facilities that serve 
 22.19  southwestern Minnesota.  The grants 
 22.20  must be awarded to projects approved by 
 22.21  the Lewis and Clark Joint Powers Board. 
 22.22  (b) This appropriation is only 
 22.23  available when matched by: 
 22.24  (1) $8 of federal money; and 
 22.25  (2) at least $1 of local money to the 
 22.26  system for each $1 of state money to 
 22.27  the grant projects under paragraph (a). 
 22.28  Subd. 5.  North Central Regional 
 22.29  Correctional Facility                                  6,000,000
 22.30  For a grant to Cass County to 
 22.31  construct, furnish, and equip a 
 22.32  publicly owned and operated regional 
 22.33  jail on surplus land of the 
 22.34  state-operated nursing home, Ah Gwah 
 22.35  Ching, in the city of Walker. 
 22.36  The state shall own 75 percent of the 
 22.37  beds and Cass County shall own 25 
 22.38  percent of the beds.  The state must 
 22.39  contract with Cass County to operate 
 22.40  the facility. 
 22.41  The appropriation is not available 
 22.42  until the commissioner determines that 
 22.43  at least $6,000,000 has been committed 
 22.44  to the project from nonstate sources. 
 22.45  Subd. 6.  Rochester Regional Public 
 22.46  Safety Training Center                                  627,000
 22.47  To the commissioner of administration 
 22.48  for Phase I of the Rochester Regional 
 22.49  Public Safety Training Center to 
 22.50  develop a live burn training simulator 
 22.51  adjacent to the existing National Guard 
 22.52  facility in Rochester. 
 22.53  The appropriation is not available 
 22.54  until the commissioner determines that 
 22.55  an equal amount has been committed to 
 22.56  the project from nonstate sources. 
 22.57  Subd. 7.  Blue Earth Police and Fire Station           642,000 
 23.1   To the commissioner of public safety 
 23.2   for a grant to the city of Blue Earth 
 23.3   to acquire land for and to predesign, 
 23.4   design, construct, furnish, and equip a 
 23.5   fire and police station.  This 
 23.6   appropriation is not available until 
 23.7   the commissioner of finance has 
 23.8   determined that at least an equal 
 23.9   amount has been committed to the 
 23.10  project from nonstate sources. 
 23.11  Subd. 8.  Hopkins Haz-mat Training Center              250,000 
 23.12  To the commissioner of administration 
 23.13  for a grant to the city of Hopkins for 
 23.14  construction of a regional hazardous 
 23.15  materials training facility. 
 23.16  Subd. 9.  Middle St. Croix River 
 23.17  Watershed Management Organization                     1,550,000
 23.18  For a grant to the city of Bayport for 
 23.19  the Middle St. Croix River Watershed 
 23.20  Management Organization to complete the 
 23.21  sewer system extending from Minnesota 
 23.22  department of natural resources pond 
 23.23  82-310P (the prison pond) in Bayport to 
 23.24  the St. Croix River. 
 23.25  Subd. 10.  City of Rushford                             600,000 
 23.26  For a grant, subject to Minnesota 
 23.27  Statutes, section 16A.695, to the city 
 23.28  of Rushford for construction, 
 23.29  renovation, remodeling, and 
 23.30  infrastructure for capital improvements 
 23.31  to and for the facility to be used by 
 23.32  the Rushford Institute for 
 23.33  Nanotechnology, Inc. 
 23.34  Subd. 11.  City of St. Paul                           2,000,000 
 23.35  For a grant to the city of St. Paul to 
 23.36  acquire land for right-of-way and to 
 23.37  complete contamination remediation and 
 23.38  construct Phalen Boulevard between 
 23.39  Interstate Highway I-35E and Johnson 
 23.40  Parkway. 
 23.41  Subd. 12.  Hennepin County                            1,200,000 
 23.42  For a grant to Hennepin County for 
 23.43  Phase I capital improvements to the 
 23.44  Lowry Avenue corridor from Girard 
 23.45  Avenue North to the I-94 bridge in 
 23.46  Minneapolis. 
 23.47  Subd. 13.  Laurentian Energy Authority               2,500,000 
 23.48  For a grant to the Laurentian Energy 
 23.49  Authority to construct a wood yard for 
 23.50  processing and prepping agricultural 
 23.51  biomass and forest-derived biomass wood 
 23.52  waste for biomass energy facilities. 
 23.53  Subd. 14.  Central Iron Range Sanitary 
 23.54  Sewer District                                         500,000
 23.55  For a grant to the Central Iron Range 
 23.56  Sanitary Sewer District Authority to 
 23.57  predesign the necessary facilities to 
 24.1   collect, treat, and dispose of sewage 
 24.2   in the district, including a 
 24.3   pump-storage facility and a wind-energy 
 24.4   facility. 
 24.5   Subd. 15.  City of Two Harbors                        1,071,000 
 24.6   To the Minnesota Pollution Control 
 24.7   Agency for a grant to the city of Two 
 24.8   Harbors to acquire land for, design, 
 24.9   construct, furnish, and equip a 
 24.10  2,500,000 gallon equalization basin and 
 24.11  a chlorine-contact tank of at least 
 24.12  100,000 gallon capacity, adjacent to 
 24.13  the city's wastewater treatment plant.  
 24.14  The equalization basin is required 
 24.15  under the city's National Pollution 
 24.16  Discharge Elimination System permit.  
 24.17  This appropriation is not available 
 24.18  until the commissioner of finance 
 24.19  determines that at least an equal 
 24.20  amount has been committed to the 
 24.21  project from nonstate sources. 
 24.22  Subd. 16.  City of Crookston                          2,000,000 
 24.23  To the public facilities authority to 
 24.24  make a grant to the city of Crookston 
 24.25  to predesign, design, and construct 
 24.26  emergency riverbank protection and 
 24.27  erosion control measures in the 
 24.28  vicinity of U.S. Highway 2.  For the 
 24.29  purposes of this appropriation, the 
 24.30  criteria, limitations, and repayment 
 24.31  requirements in Minnesota Statutes, 
 24.32  sections 446A.07, 446A.072, and 
 24.33  446A.081, are waived. 
 24.34  Subd. 17.  City of Askov                              1,215,000 
 24.35  To the public facilities authority to 
 24.36  make a grant to the city of Askov to 
 24.37  construct a new wastewater treatment 
 24.38  plant and sewer and water main 
 24.39  extensions.  This appropriation is not 
 24.40  available until the commissioner of 
 24.41  finance has determined that at least an 
 24.42  equal amount is committed to the 
 24.43  project from nonstate sources. 
 24.44  Subd. 18.  City of Duluth                             4,950,000 
 24.45  To the commissioner of the Minnesota 
 24.46  Pollution Control Agency for a grant to 
 24.47  the city of Duluth for design and 
 24.48  construction of sanitary sewer overflow 
 24.49  storage facilities at selected 
 24.50  locations in the city of Duluth.  This 
 24.51  appropriation is available when matched 
 24.52  by $1 of money secured or provided by 
 24.53  the city of Duluth for each $1 of state 
 24.54  money. 
 24.55  Subd. 19.  Bruentrup Farm Restoration                   100,000 
 24.56  For a grant to the city of Maplewood to 
 24.57  complete restoration of the Bruentrup 
 24.58  farm in Maplewood. 
 24.59  This appropriation is not available 
 24.60  until the commissioner of finance has 
 25.1   determined that at least an equal 
 25.2   amount has been committed to the 
 25.3   project from nonstate sources. 
 25.4   Subd. 20.  Burnsville Water Treatment                 2,000,000
 25.5   To the public facilities authority for 
 25.6   a grant to the city of Burnsville to 
 25.7   design, construct, furnish, and equip a 
 25.8   water treatment facility that will 
 25.9   provide an additional potable water 
 25.10  source for the city of Burnsville using 
 25.11  water from the Burnsville quarry.  This 
 25.12  appropriation is not available until 
 25.13  the commissioner of finance has 
 25.14  determined that at least $6,000,000 is 
 25.15  available in matching funds from 
 25.16  nonstate sources.  Amounts spent since 
 25.17  January 1, 2002, to plan, design, and 
 25.18  construct this project may be counted 
 25.19  as part of the nonstate match. 
 25.20  Subd. 21.  Como Park Zoo                                300,000 
 25.21  For a grant to the city of St. Paul for 
 25.22  the predesign and design for renovation 
 25.23  to the Como Park Zoo. 
 25.24  Subd. 22.  Western Mesabi Mine 
 25.25  Planning Board                                        2,000,000
 25.26  For a grant to the Western Mesabi Mine 
 25.27  Planning Board, a joint powers agency 
 25.28  under Minnesota Statutes, section 
 25.29  471.59, for engineering design to 
 25.30  alleviate otherwise certain flooding 
 25.31  emanating from the abandoned Canisteo 
 25.32  Mine in Itasca County to determine 
 25.33  which proposal is most appropriate to 
 25.34  drain the mine and serve as a model for 
 25.35  inevitable future flooding problems 
 25.36  from other abandoned mines. 
 25.37  Subd. 23.  Mesabi Trail Head Station                    700,000 
 25.38  For a grant to the St. Louis and Lake 
 25.39  counties regional railroad authority to 
 25.40  complete construction of Mesabi Station 
 25.41  along the 132-mile recreational trail 
 25.42  known as Mesabi Trail and located on 
 25.43  Lake Mesabi at the intersection of 
 25.44  marked U.S. highway Nos. 53 and 169 and 
 25.45  marked trunk highway No. 135.  This 
 25.46  appropriation is contingent upon a 
 25.47  contribution of $800,000 from other 
 25.48  sources, public or private. 
 25.49  Subd. 24.  Minneapolis Park and Recreation Board      2,000,000 
 25.50  To the commissioner of natural 
 25.51  resources to make a grant to the 
 25.52  Minneapolis Park and Recreation Board 
 25.53  to mitigate flooding at Lake of the 
 25.54  Isles in the city of Minneapolis.  This 
 25.55  appropriation must be used for 
 25.56  shoreline stabilization and 
 25.57  restoration, dredging, wetland 
 25.58  replacement, and other infrastructure 
 25.59  improvements necessary to deal with the 
 25.60  1997 flood damage and to prevent future 
 25.61  flooding. 
 26.1   Subd. 25.  Waseca Job Incubator                         500,000 
 26.2   For a grant to the city of Waseca for 
 26.3   acquisition and renovation of, and 
 26.4   infrastructure for, an existing 
 26.5   facility for a job incubator. 
 26.6   Subd. 26.  Richmond Wastewater Treatment              1,700,000 
 26.7   To the Public Facilities Authority for 
 26.8   a grant to the city of Richmond to 
 26.9   design, construct, furnish, and equip a 
 26.10  wastewater treatment facility. 
 26.11  Sec. 26.  BOND SALE EXPENSES                            682,000
 26.12  To the commissioner of finance for bond 
 26.13  sale expenses under Minnesota Statutes, 
 26.14  section 16A.641, subdivision 8.  
 26.15  Of this amount, $667,000 is 
 26.16  appropriated from the bond proceeds 
 26.17  fund and $15,000 is appropriated from 
 26.18  the bond proceeds account in the trunk 
 26.19  highway fund. 
 26.20     Sec. 27.  Laws 2003, First Special Session chapter 20, 
 26.21  article 1, section 15, is amended to read: 
 26.22  Sec. 15.  BOND SALE SCHEDULE   
 26.23  The commissioner of finance shall 
 26.24  schedule the sale of state general 
 26.25  obligation bonds so that, during the 
 26.26  biennium ending June 30, 2005, no more 
 26.27  than $673,625,000 $653,206,000 will 
 26.28  need to be transferred from the general 
 26.29  fund to the state bond fund to pay 
 26.30  principal and interest due and to 
 26.31  become due on outstanding state general 
 26.32  obligation bonds.  During the biennium, 
 26.33  before each sale of state general 
 26.34  obligation bonds, the commissioner of 
 26.35  finance shall calculate the amount of 
 26.36  debt service payments needed on bonds 
 26.37  previously issued and shall estimate 
 26.38  the amount of debt service payments 
 26.39  that will be needed on the bonds 
 26.40  scheduled to be sold.  The commissioner 
 26.41  shall adjust the amount of bonds 
 26.42  scheduled to be sold so as to remain 
 26.43  within the limit set by this section.  
 26.44  The amount needed to make the debt 
 26.45  service payments is appropriated from 
 26.46  the general fund as provided in 
 26.47  Minnesota Statutes, section 16A.641.  
 26.48     Sec. 28.  [BOND SALE AUTHORIZATION.] 
 26.49     Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
 26.50  appropriated in this act from the bond proceeds fund, the 
 26.51  commissioner of finance shall sell and issue bonds of the state 
 26.52  in an amount up to $627,647,000 in the manner, upon the terms, 
 26.53  and with the effect prescribed by Minnesota Statutes, sections 
 26.54  16A.631 to 16A.675, and by the Minnesota Constitution, article 
 27.1   XI, sections 4 to 7.  
 27.2      Subd. 2.  [TRANSPORTATION FUND BOND PROCEEDS ACCOUNT.] To 
 27.3   provide the money appropriated in this act from the state 
 27.4   transportation fund, the commissioner of finance shall sell and 
 27.5   issue bonds of the state in an amount up to $31,118,000 in the 
 27.6   manner, upon the terms, and with the effect prescribed by 
 27.7   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
 27.8   Minnesota Constitution, article XI, sections 4 to 7.  The 
 27.9   proceeds of the bonds, except accrued interest and any premium 
 27.10  received on the sale of the bonds, must be credited to a bond 
 27.11  proceeds account in the state transportation fund. 
 27.12     Subd. 3.  [TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.] To 
 27.13  provide the money appropriated in this act from the trunk 
 27.14  highway bond proceeds account in the trunk highway fund, the 
 27.15  commissioner of finance shall sell and issue bonds of the state 
 27.16  in an amount up to $15,015,000 in the manner, upon the terms, 
 27.17  and with the effect prescribed by Minnesota Statutes, sections 
 27.18  167.50 to 167.52, and by the Minnesota Constitution, article 
 27.19  XIV, section 11, at the times and in the amount requested by the 
 27.20  commissioner of transportation.  The proceeds of the bonds, 
 27.21  except accrued interest and any premium received on the sale of 
 27.22  the bonds, must be credited to the trunk highway bond proceeds 
 27.23  account in the trunk highway fund. 
 27.24     Sec. 29.  [CANCELLATION.] 
 27.25     The remaining $435,000 of the appropriation in Laws 2000, 
 27.26  chapter 492, article 1, section 12, subdivision 8, for 717 
 27.27  Delaware Street Health Building, is canceled.  The bond sale 
 27.28  authorization in Laws 2000, chapter 492, article 1, section 26, 
 27.29  subdivision 1, is reduced by $435,000. 
 27.30     Sec. 30.  [16A.502] [NONSTATE COMMITMENTS TO CAPITAL 
 27.31  PROJECTS.] 
 27.32     (a) A state appropriation or grant for a capital project 
 27.33  may require a commitment from nonstate sources. 
 27.34     (1) The commitment must be in the amount that when added to 
 27.35  the appropriation or grant is sufficient to complete the 
 27.36  project; 
 28.1      (2) the appropriation or grant is not available until the 
 28.2   commitment is determined to be sufficient; and 
 28.3      (3) the commissioner must determine the sufficiency of the 
 28.4   commitment. 
 28.5      (b) In making the determination, the commissioner must 
 28.6   apply generally accepted governmental accounting standards and 
 28.7   principles, including those that are particularly applicable to 
 28.8   capital projects. 
 28.9      Sec. 31.  [16A.503] [REFERENDUM REQUIRED FOR LOCAL MATCH 
 28.10  OVER $1,000,000.] 
 28.11     (a) The commissioner must not release state bond funds for 
 28.12  a project that requires a local government to commit $1,000,000 
 28.13  or more in local public funds unless (1) all members of the 
 28.14  governing body have voted in favor of a resolution supporting 
 28.15  the use of the local funds and identifying the source of the 
 28.16  local funds, or (2) if the governing body of the local 
 28.17  government has not adopted such a resolution or if the 
 28.18  resolution is rescinded within 60 days of adoption, the voters 
 28.19  have approved the project by referendum.  If more than one local 
 28.20  government is required to contribute $1,000,000 or more of local 
 28.21  public funds to a state bond funded project, then the governing 
 28.22  body of each local government must meet the requirements of this 
 28.23  paragraph. 
 28.24     (b) The governing body of a local government may choose to 
 28.25  submit the question directly to the local voters without 
 28.26  consideration of a resolution by the governing body. 
 28.27     (c) Any entity, except a state agency as defined in section 
 28.28  13.02, subdivision 17, that is required to contribute nonstate 
 28.29  money to a project funded in this act, must certify to the 
 28.30  commissioner of finance that at least 80 percent of the required 
 28.31  amount of nonstate money has been spent before the commissioner 
 28.32  of finance may release state funds appropriated to the project. 
 28.33     Sec. 32.  [16A.504] [COMMISSIONER, ARCHITECT ASSURANCES.] 
 28.34     Before releasing state bond proceeds or entering into a 
 28.35  grant agreement for construction grants for projects funded with 
 28.36  general obligation bonds, the commissioner of finance must work 
 29.1   with the state architect to be assured that the project can be 
 29.2   delivered for the lowest cost possible and that the project will 
 29.3   follow applicable state or local laws. 
 29.4      Sec. 33.  Minnesota Statutes 2002, section 16A.661, is 
 29.5   amended by adding a subdivision to read: 
 29.6      Subd. 5a.  [BUDGET RESERVE AND CASH FLOW ACCOUNT TO REDUCE 
 29.7   LEVY.] Prior to the state auditor making a levy under 
 29.8   subdivision 5, the commissioner of finance must use any amounts 
 29.9   in the budget reserve and the cash flow account under section 
 29.10  16A.152 to pay principal and interest on bonds.  Amounts in the 
 29.11  budget reserve and cash flow account are appropriated for that 
 29.12  purpose.  
 29.13     Sec. 34.  Minnesota Statutes 2002, section 16A.662, is 
 29.14  amended by adding a subdivision to read: 
 29.15     Subd. 7a.  [BUDGET RESERVE AND CASH FLOW ACCOUNT TO REDUCE 
 29.16  LEVY.] Prior to the state auditor making a levy under 
 29.17  subdivision 7, the commissioner of finance must use any amounts 
 29.18  in the budget reserve and the cash flow account under section 
 29.19  16A.152 to pay principal and interest on bonds.  Amounts in the 
 29.20  budget reserve and cash flow account are appropriated for that 
 29.21  purpose. 
 29.22     Sec. 35.  Minnesota Statutes 2002, section 16A.671, 
 29.23  subdivision 3, is amended to read: 
 29.24     Subd. 3.  [DEFINITIONS.] As used in this section, the terms 
 29.25  defined in this subdivision have the meanings given them:  
 29.26     (a) "General fund" means all cash and investments from time 
 29.27  to time received and held in the treasury, except proceeds of 
 29.28  state bonds and amounts received and held in special or 
 29.29  dedicated funds created by the Constitution, or by or pursuant 
 29.30  to federal laws or regulations, or by bond or trust instruments, 
 29.31  pension contracts, or other agreements of the state or its 
 29.32  agencies with private persons, entered into under state law.  
 29.33     (b) "Maximum current cash flow requirement" means the 
 29.34  commissioner's written estimate of the largest of the amounts by 
 29.35  which, on a particular designated date in each month of the term 
 29.36  for which certificates are to be issued, the sum of (1) the 
 30.1   warrants then outstanding against the general fund plus (2) 
 30.2   those that must be drawn on the fund before the same date in the 
 30.3   following month, in payment of claims due for expenditure under 
 30.4   all appropriations and allotments, will exceed the amount of 
 30.5   cash or cash equivalent assets held in the general fund on the 
 30.6   first of these dates an amount equal to five percent of the 
 30.7   actual working capital expenditures from the general fund in the 
 30.8   fiscal year immediately preceding the date of the largest of 
 30.9   such amounts, will exceed the amount of cash or cash equivalent 
 30.10  assets held in the general fund, excluding the proceeds of the 
 30.11  certificates to be issued.  
 30.12     Sec. 36.  Minnesota Statutes 2002, section 16A.695, 
 30.13  subdivision 3, is amended to read: 
 30.14     Subd. 3.  [SALE OF PROPERTY.] A public officer or agency 
 30.15  shall not sell any state bond financed property unless the 
 30.16  public officer or agency determines by official action that the 
 30.17  property is no longer usable or needed by the public officer or 
 30.18  agency to carry out the governmental program for which it was 
 30.19  acquired or constructed, the sale is made as authorized by law, 
 30.20  the sale is made for fair market value, and the sale is approved 
 30.21  by the commissioner.  If any state bonds issued to purchase or 
 30.22  better the state bond financed property that is sold remain 
 30.23  outstanding on the date of sale, the net proceeds of sale must 
 30.24  be applied as follows: 
 30.25     (1) if the state bond financed property was acquired and 
 30.26  bettered solely with state bond proceeds, the net proceeds of 
 30.27  sale must be paid to the commissioner, deposited in the state 
 30.28  bond fund, and used to pay or redeem or defease the outstanding 
 30.29  state bonds in accordance with the commissioner's order 
 30.30  authorizing their issuance, and the proceeds are appropriated 
 30.31  for this purpose; or 
 30.32     (2) if the state bond financed property was acquired or 
 30.33  bettered partly with state bond proceeds and partly with other 
 30.34  money, the net proceeds of sale must be used:  first, to pay to 
 30.35  the state the amount of state bond proceeds used to acquire or 
 30.36  better the property; second, to pay in full any outstanding 
 31.1   public or private debt incurred to acquire or better the 
 31.2   property; and third, any excess over the amount needed for those 
 31.3   purposes must be divided in proportion to the shares contributed 
 31.4   to the acquisition or betterment of the property and paid to the 
 31.5   interested public and private entities, other than any private 
 31.6   lender already paid in full, and the proceeds are appropriated 
 31.7   for this purpose.  In calculating the share contributed by each 
 31.8   entity, the amount to be attributed to the owner of the property 
 31.9   shall be the fair market value of the property that was bettered 
 31.10  by state bond proceeds at the time the betterment began. 
 31.11     When all of the net proceeds of sale have been applied as 
 31.12  provided in this subdivision, this section no longer applies to 
 31.13  the property. 
 31.14     Sec. 37.  Minnesota Statutes 2002, section 41B.03, 
 31.15  subdivision 3, is amended to read: 
 31.16     Subd. 3.  [ELIGIBILITY FOR BEGINNING FARMER LOANS.] (a) In 
 31.17  addition to the requirements under subdivision 1, a prospective 
 31.18  borrower for a beginning farm loan in which the authority holds 
 31.19  an interest, must:  
 31.20     (1) have sufficient education, training, or experience in 
 31.21  the type of farming for which the loan is desired; 
 31.22     (2) have a total net worth, including assets and 
 31.23  liabilities of the borrower's spouse and dependents, of less 
 31.24  than $200,000 in 1991 $350,000 in 2004 and an amount in 
 31.25  subsequent years which is adjusted for inflation by 
 31.26  multiplying $200,000 that amount by the cumulative inflation 
 31.27  rate as determined by the United States All-Items Consumer Price 
 31.28  Index; 
 31.29     (3) demonstrate a need for the loan; 
 31.30     (4) demonstrate an ability to repay the loan; 
 31.31     (5) certify that the agricultural land to be purchased will 
 31.32  be used by the borrower for agricultural purposes; 
 31.33     (6) certify that farming will be the principal occupation 
 31.34  of the borrower; 
 31.35     (7) agree to participate in a farm management program 
 31.36  approved by the commissioner of agriculture for at least the 
 32.1   first three years of the loan, if an approved program is 
 32.2   available within 45 miles from the borrower's residence.  The 
 32.3   commissioner may waive this requirement for any of the programs 
 32.4   administered by the authority if the participant requests a 
 32.5   waiver and has either a four-year degree in an agricultural 
 32.6   program or certification as an adult farm management instructor; 
 32.7   and 
 32.8      (8) agree to file an approved soil and water conservation 
 32.9   plan with the Soil Conservation Service office in the county 
 32.10  where the land is located.  
 32.11     (b) If a borrower fails to participate under paragraph (a), 
 32.12  clause (7), the borrower is subject to penalty as determined by 
 32.13  the authority. 
 32.14     Sec. 38.  Minnesota Statutes 2002, section 41B.039, 
 32.15  subdivision 2, is amended to read: 
 32.16     Subd. 2.  [STATE PARTICIPATION.] The state may participate 
 32.17  in a new real estate loan with an eligible lender to a beginning 
 32.18  farmer to the extent of 45 percent of the principal amount of 
 32.19  the loan or $125,000 $200,000, whichever is less.  The interest 
 32.20  rates and repayment terms of the authority's participation 
 32.21  interest may be different than the interest rates and repayment 
 32.22  terms of the lender's retained portion of the loan. 
 32.23     Sec. 39.  Minnesota Statutes 2002, section 41B.04, 
 32.24  subdivision 8, is amended to read: 
 32.25     Subd. 8.  [STATE'S PARTICIPATION.] With respect to loans 
 32.26  that are eligible for restructuring under sections 41B.01 to 
 32.27  41B.23 and upon acceptance by the authority, the authority shall 
 32.28  enter into a participation agreement or other financial 
 32.29  arrangement whereby it shall participate in a restructured loan 
 32.30  to the extent of 45 percent of the primary principal or 
 32.31  $150,000 $225,000, whichever is less.  The authority's portion 
 32.32  of the loan must be protected during the authority's 
 32.33  participation by the first mortgage held by the eligible lender 
 32.34  to the extent of its participation in the loan. 
 32.35     Sec. 40.  Minnesota Statutes 2002, section 41B.042, 
 32.36  subdivision 4, is amended to read: 
 33.1      Subd. 4.  [PARTICIPATION LIMIT; INTEREST.] The authority 
 33.2   may participate in new seller-sponsored loans to the extent of 
 33.3   45 percent of the principal amount of the loan or 
 33.4   $125,000 $200,000, whichever is less.  The interest rates and 
 33.5   repayment terms of the authority's participation interest may be 
 33.6   different than the interest rates and repayment terms of the 
 33.7   seller's retained portion of the loan. 
 33.8      Sec. 41.  Minnesota Statutes 2002, section 41B.043, 
 33.9   subdivision 1b, is amended to read: 
 33.10     Subd. 1b.  [LOAN PARTICIPATION.] The authority may 
 33.11  participate in an agricultural improvement loan with an eligible 
 33.12  lender to a farmer who meets the requirements of section 41B.03, 
 33.13  subdivision 1, clauses (1) and (2), and who is actively engaged 
 33.14  in farming.  Participation is limited to 45 percent of the 
 33.15  principal amount of the loan or $125,000 $200,000, whichever is 
 33.16  less.  The interest rates and repayment terms of the authority's 
 33.17  participation interest may be different than the interest rates 
 33.18  and repayment terms of the lender's retained portion of the loan.
 33.19     Sec. 42.  Minnesota Statutes 2002, section 41B.043, is 
 33.20  amended by adding a subdivision to read: 
 33.21     Subd. 5.  [TOTAL NET WORTH LIMIT.] A prospective borrower 
 33.22  for an agricultural improvement loan in which the authority 
 33.23  holds an interest must have a total net worth, including assets 
 33.24  and liabilities of the borrower's spouse and dependents, of less 
 33.25  than $350,000 in 2004 and an amount in subsequent years which is 
 33.26  adjusted for inflation by multiplying that amount by the 
 33.27  cumulative inflation rate as determined by the United States 
 33.28  All-Items Consumer Price Index. 
 33.29     Sec. 43.  Minnesota Statutes 2002, section 41B.045, 
 33.30  subdivision 2, is amended to read: 
 33.31     Subd. 2.  [LOAN PARTICIPATION.] The authority may 
 33.32  participate in a livestock expansion loan with an eligible 
 33.33  lender to a livestock farmer who meets the requirements of 
 33.34  section 41B.03, subdivision 1, clauses (1) and (2), and who are 
 33.35  actively engaged in a livestock operation.  A prospective 
 33.36  borrower must have a total net worth, including assets and 
 34.1   liabilities of the borrower's spouse and dependents, of less 
 34.2   than $400,000 in 1999 and an amount in subsequent years which is 
 34.3   adjusted for inflation by multiplying $400,000 by the cumulative 
 34.4   inflation rate as determined by the United States All-Items 
 34.5   Consumer Price Index. 
 34.6      Participation is limited to 45 percent of the principal 
 34.7   amount of the loan or $250,000 $275,000, whichever is less.  The 
 34.8   interest rates and repayment terms of the authority's 
 34.9   participation interest may be different from the interest rates 
 34.10  and repayment terms of the lender's retained portion of the loan.
 34.11     Sec. 44.  Minnesota Statutes 2002, section 41B.046, 
 34.12  subdivision 5, is amended to read: 
 34.13     Subd. 5.  [LOANS.] (a) The authority may participate in a 
 34.14  stock loan with an eligible lender to a farmer who is eligible 
 34.15  under subdivision 4.  Participation is limited to 45 percent of 
 34.16  the principal amount of the loan or $24,000 $40,000, whichever 
 34.17  is less.  The interest rates and repayment terms of the 
 34.18  authority's participation interest may differ from the interest 
 34.19  rates and repayment terms of the lender's retained portion of 
 34.20  the loan, but the authority's interest rate must not exceed 50 
 34.21  percent of the lender's interest rate. 
 34.22     (b) No more than 95 percent of the purchase price of the 
 34.23  stock may be financed under this program. 
 34.24     (c) Security for stock loans must be the stock purchased, a 
 34.25  personal note executed by the borrower, and whatever other 
 34.26  security is required by the eligible lender or the authority. 
 34.27     (d) The authority may impose a reasonable nonrefundable 
 34.28  application fee for each application for a stock loan.  The 
 34.29  authority may review the fee annually and make adjustments as 
 34.30  necessary.  The application fee is initially $50.  Application 
 34.31  fees received by the authority must be deposited in the 
 34.32  value-added agricultural product revolving fund. 
 34.33     (e) Stock loans under this program will be made using money 
 34.34  in the value-added agricultural product revolving fund 
 34.35  established under subdivision 3. 
 34.36     (f) The authority may not grant stock loans in a cumulative 
 35.1   amount exceeding $2,000,000 for the financing of stock purchases 
 35.2   in any one cooperative. 
 35.3      Sec. 45.  Minnesota Statutes 2002, section 41C.02, 
 35.4   subdivision 12, is amended to read: 
 35.5      Subd. 12.  [LOW OR MODERATE NET WORTH.] "Low or moderate 
 35.6   net worth" means: 
 35.7      (1) for an individual, an aggregate net worth of the 
 35.8   individual and the individual's spouse and minor children of 
 35.9   less than $200,000 in 1991 $350,000 in 2004 and an amount in 
 35.10  subsequent years which is adjusted for inflation by 
 35.11  multiplying $200,000 that amount by the cumulative inflation 
 35.12  rate as determined by the United States All-Items Consumer Price 
 35.13  Index; or 
 35.14     (2) for a partnership, an aggregate net worth of all 
 35.15  partners, including each partner's net capital in the 
 35.16  partnership, and each partner's spouse and minor children of 
 35.17  less than $400,000 in 1991 and an amount in subsequent years 
 35.18  which is adjusted for inflation by multiplying $400,000 by the 
 35.19  cumulative inflation rate as determined by the United States 
 35.20  All-Items Consumer Price Index twice the amount set for an 
 35.21  individual in clause (1).  However, the aggregate net worth of 
 35.22  each partner and that partner's spouse and minor children may 
 35.23  not exceed $200,000 in 1991 and an amount in subsequent years 
 35.24  which is adjusted for inflation by multiplying $200,000 by the 
 35.25  cumulative inflation rate as determined by the United States 
 35.26  All-Items Consumer Price Index the amount set for an individual 
 35.27  in clause (1). 
 35.28     Sec. 46.  Minnesota Statutes 2002, section 116J.571, is 
 35.29  amended to read: 
 35.30     116J.571 [CREATION OF ACCOUNTS.] 
 35.31     Two greater Minnesota redevelopment accounts are created, 
 35.32  one in the general fund and one in the bond proceeds fund.  
 35.33  Money in the accounts may be used to make grants as provided in 
 35.34  section 116J.575.  Money in the bond proceeds fund may only be 
 35.35  used for eligible costs for publicly owned property.  Money in 
 35.36  the general fund may be used to pay for the commissioner's costs 
 36.1   in reviewing the applications. 
 36.2      Sec. 47.  Minnesota Statutes 2002, section 116J.572, 
 36.3   subdivision 2, is amended to read: 
 36.4      Subd. 2.  [DEVELOPMENT AUTHORITY.] "Development authority" 
 36.5   includes a statutory or home rule charter city, county, housing 
 36.6   and redevelopment authority, economic development authority, or 
 36.7   port authority located outside the seven-county metropolitan 
 36.8   area, as defined in section 473.121, subdivision 2. 
 36.9      Sec. 48.  Minnesota Statutes 2002, section 116J.573, 
 36.10  subdivision 1, is amended to read: 
 36.11     Subdivision 1.  [ACCOUNTS.] Criteria for use of the 
 36.12  accounts created in section 116J.571 must be consistent with and 
 36.13  promote the purposes of sections 116J.571 to 116J.575.  They 
 36.14  include, but are not limited to: 
 36.15     (1) creating and preserving living wage jobs in greater 
 36.16  Minnesota; 
 36.17     (2) creating incentives for communities to include a full 
 36.18  range of housing opportunities; 
 36.19     (3) creating incentives for all communities to implement 
 36.20  compact, efficient, and mixed-use development; and 
 36.21     (4) creating incentives to assist communities in 
 36.22  maintaining a unique sense of place by preserving local, 
 36.23  cultural assets. 
 36.24     Sec. 49.  Minnesota Statutes 2002, section 116J.573, 
 36.25  subdivision 2, is amended to read: 
 36.26     Subd. 2.  [PROJECTS.] To be eligible for funding by the 
 36.27  greater Minnesota redevelopment account, a project must: 
 36.28     (1) interrelate redevelopment with other public investments 
 36.29  in transportation, housing, schools, energy, utilities 
 36.30  information infrastructure, and other public services; 
 36.31     (2) interrelate affordable housing and employment growth 
 36.32  areas; 
 36.33     (3) intensify land use that leads to more compact 
 36.34  redevelopment; 
 36.35     (4) involve redevelopment that mixes incomes of residents 
 36.36  in housing, including introducing or reintroducing higher value 
 37.1   housing in lower income areas to achieve a mix of housing 
 37.2   opportunities; 
 37.3      (5) involve participation from citizens and the business 
 37.4   community in the planning and development of the proposed 
 37.5   redevelopment plan; 
 37.6      (6) encourage public infrastructure investments which 
 37.7   attract private sector redevelopment investment in commercial, 
 37.8   industrial, and residential properties adjacent to public 
 37.9   improvements, and provide project area residents with expanded 
 37.10  opportunities for private sector employment; or 
 37.11     (7) be sustainable at the local level and reduce the 
 37.12  probability of future requests for state development, 
 37.13  maintenance, or replacement assistance. 
 37.14     Sec. 50.  Minnesota Statutes 2002, section 116J.573, 
 37.15  subdivision 4, is amended to read: 
 37.16     Subd. 4.  [PARTNERSHIPS.] The commissioner shall give 
 37.17  priority to proposals using innovative financial partnerships 
 37.18  between government, private for-profit, and nonprofit sectors as 
 37.19  well as to proposals that meet current tax increment financing 
 37.20  requirements for a redevelopment district and contribute tax 
 37.21  increment financing towards the project. 
 37.22     Sec. 51.  Minnesota Statutes 2002, section 116J.573, 
 37.23  subdivision 5, is amended to read: 
 37.24     Subd. 5.  [ANNUAL REPORT.] The commissioner shall prepare 
 37.25  and submit to the legislature an annual report on the greater 
 37.26  Minnesota redevelopment account.  The report must include 
 37.27  information on the amount of money in the account, the amount 
 37.28  distributed, to whom the grants were distributed and for what 
 37.29  purposes, and an evaluation of the effectiveness of the projects 
 37.30  funded in meeting the policies and goals of the program. 
 37.31     Sec. 52.  Minnesota Statutes 2002, section 116J.575, 
 37.32  subdivision 1, is amended to read: 
 37.33     Subdivision 1.  [COMMISSIONER DISCRETION.] The commissioner 
 37.34  may make a grant for up to 50 percent of the eligible costs of a 
 37.35  project.  The commissioner shall, in each grant cycle, make 
 37.36  grants so that 50 percent of the dollar value of grants for that 
 38.1   cycle are for projects located outside of the seven-county 
 38.2   metropolitan area as defined in section 473.121, subdivision 2, 
 38.3   and 50 percent are for projects located within the seven-county 
 38.4   metropolitan area. This allocation of grant funds does not apply 
 38.5   for any grant cycle in which the applications received by the 
 38.6   application deadline are insufficient to permit the equal 
 38.7   division of grants between metropolitan and nonmetropolitan 
 38.8   projects.  The determination of whether to make a grant for a 
 38.9   site is within the discretion of the commissioner, subject to 
 38.10  this section and sections 116J.571 to 116J.574 and available 
 38.11  unencumbered money in the greater Minnesota redevelopment 
 38.12  account.  The commissioner's decisions and application of the 
 38.13  priorities under this section are not subject to judicial 
 38.14  review, except for abuse of discretion. 
 38.15     Sec. 53.  Minnesota Statutes 2002, section 116P.08, 
 38.16  subdivision 2, is amended to read: 
 38.17     Subd. 2.  [EXCEPTIONS.] Money from the trust fund may not 
 38.18  be spent for: 
 38.19     (1) purposes of environmental compensation and liability 
 38.20  under chapter 115B and response actions under chapter 115C; 
 38.21     (2) purposes of municipal water pollution control under the 
 38.22  authority of chapters 115 and 116; 
 38.23     (3) costs associated with the decommissioning of nuclear 
 38.24  power plants; 
 38.25     (4) (3) hazardous waste disposal facilities; 
 38.26     (5) (4) solid waste disposal facilities; or 
 38.27     (6) (5) projects or purposes inconsistent with the 
 38.28  strategic plan.  
 38.29     Sec. 54.  Minnesota Statutes 2002, section 136F.60, is 
 38.30  amended by adding a subdivision to read: 
 38.31     Subd. 5.  [DISPOSITION OF SURPLUS PROPERTY.] (a) The board 
 38.32  may declare state lands under its control that are no longer 
 38.33  needed by the Minnesota State Colleges and Universities system 
 38.34  to be surplus and may offer them for public sale in a manner 
 38.35  consistent with the procedures set forth in sections 94.10 to 
 38.36  94.14 for disposition of state lands by the commissioner of 
 39.1   administration.  The parcels must not be exchanged or 
 39.2   transferred for no or nominal consideration. 
 39.3      (b) Proceeds from the sale or disposition of land under 
 39.4   this subdivision, after paying all expenses incurred in selling 
 39.5   or disposing of the land and then paying any amounts due under 
 39.6   section 16A.695, shall be appropriated to the board for use for 
 39.7   capital projects at the institution which was responsible for 
 39.8   management of the land. 
 39.9      Sec. 55.  Minnesota Statutes 2002, section 446A.12, 
 39.10  subdivision 1, is amended to read: 
 39.11     Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 39.12  issue negotiable bonds in a principal amount that the authority 
 39.13  determines necessary to provide sufficient funds for achieving 
 39.14  its purposes, including the making of loans and purchase of 
 39.15  securities, the payment of interest on bonds of the authority, 
 39.16  the establishment of reserves to secure its bonds, the payment 
 39.17  of fees to a third party providing credit enhancement, and the 
 39.18  payment of all other expenditures of the authority incident to 
 39.19  and necessary or convenient to carry out its corporate purposes 
 39.20  and powers, but not including the making of grants.  Bonds of 
 39.21  the authority may be issued as bonds or notes or in any other 
 39.22  form authorized by law.  The principal amount of bonds issued 
 39.23  and outstanding under this section at any time may not exceed 
 39.24  $1,000,000,000 $1,250,000,000, excluding bonds for which 
 39.25  refunding bonds or crossover refunding bonds have been issued. 
 39.26     Sec. 56.  Minnesota Statutes 2002, section 446A.14, is 
 39.27  amended to read: 
 39.28     446A.14 [INTEREST EXCHANGES RATE SWAPS AND OTHER 
 39.29  AGREEMENTS.] 
 39.30     The authority may enter into an agreement with a third 
 39.31  party for an exchange of interest rates under this subdivision.  
 39.32  With respect to outstanding obligations bearing interest at a 
 39.33  variable rate, the authority may agree to pay sums equal to 
 39.34  interest at a fixed rate or at a different variable rate 
 39.35  determined in accordance with a formula set out in the agreement 
 39.36  on an amount not exceeding the outstanding principal amount of 
 40.1   the obligations, in exchange for an agreement by the third party 
 40.2   to pay sums equal to interest on a similar amount at a variable 
 40.3   rate determined according to a formula set out in the agreement. 
 40.4   With respect to outstanding obligations bearing interest at a 
 40.5   fixed rate or rates, the authority may agree to pay sums equal 
 40.6   to interest at a variable rate determined according to a formula 
 40.7   set out in the agreement on an amount not exceeding the 
 40.8   outstanding principal amount of the obligations in exchange for 
 40.9   an agreement by the third party to pay sums equal to interest on 
 40.10  a similar amount at a fixed rate or rates set out in the 
 40.11  agreement.  Subject to any applicable bonds covenants, payments 
 40.12  required to be made by the municipality under the swap agreement 
 40.13  may be made from amounts secured to pay debt service on the 
 40.14  obligations with respect to which the swap agreement was made 
 40.15  from any other available source of the authority. Subdivision 1. 
 40.16  [AGREEMENTS.] (a) The authority may enter into interest rate 
 40.17  exchange or swap agreements, hedges, forward purchase or sale 
 40.18  agreements, loan sale or pooling agreements or trusts, or other 
 40.19  similar agreements in connection with: 
 40.20     (1) the issuance or proposed issuance of bonds; 
 40.21     (2) the making, proposed making, or sale of loans or other 
 40.22  financial assistance or investments; 
 40.23     (3) outstanding bonds, loans, or other financial 
 40.24  assistance; or 
 40.25     (4) existing similar agreements.  
 40.26     (b) The agreements authorized by this subdivision include, 
 40.27  without limitation, master agreements, options or contracts to 
 40.28  enter into such agreements in the future and related agreements, 
 40.29  including, without limitation, agreements to provide credit 
 40.30  enhancement, liquidity, or remarketing; valuation; monitoring; 
 40.31  or administrative services currently or in the future.  However, 
 40.32  the term of an option to enter into an interest rate swap, 
 40.33  exchange, hedge, or other similar agreement and the term of a 
 40.34  contract to sell, buy, or refund bonds in the future must not 
 40.35  exceed five years and the authorization of the authority to 
 40.36  enter into option agreements with respect to interest rate swap 
 41.1   agreements expires on December 31, 2008; provided that such 
 41.2   option agreements entered into prior to that date remain valid 
 41.3   agreements of the authority after that date. 
 41.4      (c) The agreements authorized by this subdivision or 
 41.5   supplements to master agreements may be entered into on the 
 41.6   basis of negotiation with a qualified third party or through a 
 41.7   competitive proposal process on terms and conditions and with 
 41.8   covenants and provisions approved by the authority and may 
 41.9   include, without limitation: 
 41.10     (1) provisions establishing reserves; 
 41.11     (2) pledging assets or revenues of the authority for 
 41.12  current or other payments or termination payments; 
 41.13     (3) contracting with the other parties to such agreements 
 41.14  as to the custody, collection, securing, investment, and payment 
 41.15  of money of the authority or money held in trust; or 
 41.16     (4) requiring the issuance of bonds or entering into loans 
 41.17  or other agreements authorized by this subdivision in the future.
 41.18     (d) Subject to the terms of the agreement and other 
 41.19  agreements of the authority with bondholders or other third 
 41.20  parties, the agreements authorized by this subdivision may be 
 41.21  general or limited obligations of the authority payable from all 
 41.22  available or certain specified funds appropriated to the 
 41.23  authority.  The agreements authorized by this subdivision do not 
 41.24  constitute debt of the authority for the purposes of the limits 
 41.25  on bonds or notes of the authority set forth in section 446A.12, 
 41.26  subdivision 1.  
 41.27     (e) The authority may issue bonds to provide funds to make 
 41.28  payments, including, without limitation, termination payments 
 41.29  pursuant to an agreement authorized by this subdivision. 
 41.30     (f) The aggregate notional amount of interest rate swap or 
 41.31  exchange agreements in effect at any time must not exceed an 
 41.32  amount equal to ten percent of the aggregate principal amount of 
 41.33  bonds the authority is authorized to have outstanding pursuant 
 41.34  to section 446A.12, subdivision 1, including the notional amount 
 41.35  of interest rate swap or exchange agreements with respect to 
 41.36  which a reversing agreement has been entered into, the effect of 
 42.1   which is to terminate the original agreement or a portion 
 42.2   thereof, and reversing agreements with respect to all or a 
 42.3   portion of existing agreements. 
 42.4      (g) For the purposes of this section, the following terms 
 42.5   have the following meanings unless the context clearly requires 
 42.6   otherwise: 
 42.7      (1) "agreement to provide remarketing" means an agreement 
 42.8   with a third party to provide the service, as agent of for the 
 42.9   authority, of marketing bonds or other outstanding obligations 
 42.10  where the bonds are subject to tender to the authority for 
 42.11  purchase by the authority; 
 42.12     (2) "credit enhancement" means additional third-party 
 42.13  security or sources of repayment for obligations of another 
 42.14  party, and may include, without limitation, guaranties, 
 42.15  insurance, letters of credit, lines of credit, standby bond 
 42.16  purchase agreements, or agreements pledging collateral; 
 42.17     (3) "hedge" means an agreement entered into with a third 
 42.18  party for the purpose of trying to limit, offset, or compensate 
 42.19  for possible losses, expenses, or outcomes, in whole or in part, 
 42.20  from particular actions, agreements, or obligations; 
 42.21     (4) "interest rate swap agreement" or "interest rate 
 42.22  exchange agreement" means an agreement between two or more 
 42.23  parties where two or more parties agree to pay to each other, 
 42.24  for a stated period of time, interest on a stated amount at 
 42.25  different rates, or rates calculated on a different basis, which 
 42.26  agreement does not include the borrowing of money or the 
 42.27  obligation to pay the stated amount, and may include, without 
 42.28  limitation, agreements where one party agrees to pay a fixed 
 42.29  rate and the other agrees to pay a variable rate, or where one 
 42.30  party agrees to pay a variable rate determined in one manner and 
 42.31  the other party agrees to pay a variable rate determined in 
 42.32  another manner; 
 42.33     (5) "liquidity" means a form of credit enhancement entered 
 42.34  into for the purpose of providing money on demand or within a 
 42.35  specified period of time to meet obligations which may arise and 
 42.36  be payable, for which a party determines that it is not 
 43.1   desirable, practicable, or possible to keep funds or readily 
 43.2   saleable short-term investments available at all times such 
 43.3   obligations to pay may arise or in the full amount of the 
 43.4   potential obligation; and 
 43.5      (6) "master agreement" means any agreement pursuant to 
 43.6   which one or more separate interest rate swaps, transactions, or 
 43.7   other agreements may be entered into from time to time or 
 43.8   pursuant to which separately stated terms and conditions 
 43.9   intended to cover multiple transactions or agreements are set 
 43.10  forth. 
 43.11     Subd. 2.  [POWERS OF AUTHORITY.] For the purposes of this 
 43.12  section, the authority may exercise all powers provided in this 
 43.13  chapter.  The authority may consent, whenever it considers it 
 43.14  necessary or desirable in connection with agreements entered 
 43.15  into under this subdivision, to modifications, amendments, or 
 43.16  waivers of the terms of such agreements.  The proceeds of any 
 43.17  agreements entered into pursuant to this subdivision are 
 43.18  appropriated to the authority pursuant to section 446A.11, 
 43.19  subdivision 13.  The agreements entered into pursuant to this 
 43.20  subdivision are not subject to sections 16C.03, subdivision 4, 
 43.21  and 16C.05. 
 43.22     Sec. 57.  Minnesota Statutes 2002, section 446A.17, is 
 43.23  amended to read: 
 43.24     446A.17 [NONLIABILITY.] 
 43.25     Subdivision 1.  [NONLIABILITY OF INDIVIDUALS.] No member of 
 43.26  the authority or other person executing the bonds, loans, 
 43.27  interest rate swaps, or other agreements or contracts of the 
 43.28  authority is liable personally on the bonds such bonds, loans, 
 43.29  interest rate swaps, or other agreements or contracts of the 
 43.30  authority or is subject to any personal liability or 
 43.31  accountability by reason of their issuance, execution, delivery, 
 43.32  or performance.  
 43.33     Subd. 2.  [NONLIABILITY OF STATE.] The state is not liable 
 43.34  on bonds, loans, interest rate swaps, or other agreements or 
 43.35  contracts of the authority issued or entered into under this 
 43.36  chapter and those bonds such bonds, loans, interest rate swaps, 
 44.1   or other agreements or contracts of the authority are not a debt 
 44.2   of the state.  The bonds Such bonds, loans, interest rate swaps, 
 44.3   or other agreements or contracts of the authority must contain 
 44.4   on their face a statement to that effect. 
 44.5      Sec. 58.  Minnesota Statutes 2002, section 446A.19, is 
 44.6   amended to read: 
 44.7      446A.19 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 
 44.8      The state pledges and agrees with the holders of bonds 
 44.9   issued under sections 446A.051, and 446A.12 to 446A.20 or other 
 44.10  parties to any loans, interest rate swaps, or other agreements 
 44.11  or contracts of the authority that the state will not limit or 
 44.12  alter the rights vested in the authority to fulfill the terms of 
 44.13  any agreements made with the bondholders or parties to any 
 44.14  loans, interest rate swaps, or other agreements or contracts of 
 44.15  the authority or in any way impair the rights and remedies of 
 44.16  the holders until the bonds, together with interest on them, 
 44.17  with interest on any unpaid installments of interest, and all 
 44.18  costs and expenses in connection with any action or proceeding 
 44.19  by or on behalf of the bondholders, are fully met and discharged 
 44.20  or, with respect to any loans, interest rate swaps, or other 
 44.21  agreements or contracts of the authority, such agreements have 
 44.22  been fully performed by the authority or otherwise terminated or 
 44.23  discharged.  The authority may include this pledge and agreement 
 44.24  of the state in any agreement with the holders of bonds issued 
 44.25  under sections 446A.051, and 446A.12 to 446A.20 or in any loans, 
 44.26  interest rate swaps, or other agreements or contracts of the 
 44.27  authority. 
 44.28     Sec. 59.  Laws 1998, chapter 404, section 23, subdivision 
 44.29  17, as amended by Laws 1999, chapter 20, section 1, is amended 
 44.30  to read: 
 44.31  Subd. 17.  Paramount Arts District
 44.32  Regional Arts Center                                    750,000
 44.33  (a) To the commissioner of 
 44.34  administration for a grant to the city 
 44.35  of St. Cloud Housing and Redevelopment 
 44.36  Authority to construct, furnish, and 
 44.37  equip the Paramount Arts District 
 44.38  Regional Arts Center, subject to 
 44.39  Minnesota Statutes, section 16A.695.  
 44.40  This appropriation is not available 
 45.1   until the commissioner has determined 
 45.2   that the necessary additional financing 
 45.3   to complete at least a $5,400,000 
 45.4   project has been committed by nonstate 
 45.5   sources. 
 45.6   (b) The Housing and Redevelopment 
 45.7   Authority must effect the transfer as 
 45.8   otherwise required or permitted by 
 45.9   law.  Once the transfer is effected, 
 45.10  the city is the successor to the 
 45.11  Housing and Redevelopment Authority for 
 45.12  the purposes of the grant and Minnesota 
 45.13  Statutes, section 16A.695. 
 45.14     Sec. 60.  Laws 2002, chapter 393, section 19, subdivision 
 45.15  2, is amended to read: 
 45.16  Subd. 2.  Northwest Busway                           20,000,000 
 45.17  To design and construct a portion of a 
 45.18  busway in the northwest metropolitan 
 45.19  area between downtown Minneapolis and 
 45.20  Rogers.  Funds may be used to design 
 45.21  all or a portion of the busway from 
 45.22  downtown Minneapolis to Rogers along 
 45.23  CSAH 81; to design, construct, and 
 45.24  equip up to 19 stations, including 36 
 45.25  passenger shelters in Minneapolis, 
 45.26  Robbinsdale, and Crystal as well as at 
 45.27  Hennepin Technical College and North 
 45.28  Hennepin Community College located in 
 45.29  Brooklyn Park; to acquire necessary 
 45.30  rights-of-way in Minneapolis, 
 45.31  Robbinsdale, Crystal, and Brooklyn Park 
 45.32  to accommodate station and park and 
 45.33  ride locations, and adjacent to CSAH 81 
 45.34  between Highway 100 and Brooklyn 
 45.35  Boulevard to accommodate queue jump 
 45.36  lanes for buses; to design and 
 45.37  construct two park and ride facilities 
 45.38  adjacent to CSAH 81 at its 
 45.39  intersections with 63rd Avenue North 
 45.40  and with Brooklyn Boulevard; and to 
 45.41  design and construct queue jump lanes 
 45.42  between Highway 100 and Brooklyn 
 45.43  Boulevard.  This appropriation is 
 45.44  contingent on $12,000,000 from Hennepin 
 45.45  County for roadway design, property 
 45.46  acquisition, and road construction 
 45.47  between Lowry Avenue in Minneapolis and 
 45.48  Bass Lake Road in Crystal and 
 45.49  $5,000,000 from the Metropolitan 
 45.50  Council for the project fleet 
 45.51  acquisition and station equipment. 
 45.52  Total funding from all sources may be 
 45.53  used for roadway design, 
 45.54  reconstruction, acquisition of land and 
 45.55  right-of-way, and to design, construct, 
 45.56  furnish, and equip transit stations and 
 45.57  park and rides.  To implement this 
 45.58  project, the Metropolitan Council has 
 45.59  the powers that Hennepin County has to 
 45.60  use design-build under new Minnesota 
 45.61  Statutes, sections 383B.158 to 
 45.62  383B.1586, may be used for implementing 
 45.63  this project. 
 45.64     Sec. 61.  [MAXIMUM EFFORT CAPITAL LOAN FORGIVEN; EAST 
 46.1   CENTRAL.] 
 46.2      Subdivision 1.  [SALE REQUIREMENTS.] Independent School 
 46.3   District No. 2580, East Central, may sell its middle school 
 46.4   building in accordance with Minnesota Statutes, section 
 46.5   16A.695.  The net proceeds from the sale of the property must be 
 46.6   paid to the commissioner of finance and deposited in the state 
 46.7   bond fund. 
 46.8      Subd. 2.  [OUTSTANDING LOAN BALANCE FORGIVEN.] Any 
 46.9   remaining outstanding balance on the maximum effort capital loan 
 46.10  issued in January 1982 to former Independent School District No. 
 46.11  566, Askov, after the application of the sale proceeds according 
 46.12  to subdivision 1, is forgiven. 
 46.13     Sec. 62.  [DNR; PLAN FOR LAND MANAGEMENT.] 
 46.14     The commissioner of natural resources must prepare a plan 
 46.15  for development of a comprehensive land management plan by 
 46.16  January 15, 2005, and submit it to the chairs of the committees 
 46.17  in the house and senate with jurisdiction over environmental 
 46.18  policy and finance, and capital investment. 
 46.19     Sec. 63.  [STILLWATER LEVEE FLOOD CONTROL PROJECT.] 
 46.20     Notwithstanding the grant expiration date of June 30, 2002, 
 46.21  the commissioner of natural resources shall extend until June 
 46.22  30, 2006, the expiration date of a grant made to the city of 
 46.23  Stillwater under Minnesota Statutes, section 103F.161, and 
 46.24  matching certain federal appropriations for flood hazard 
 46.25  mitigation. 
 46.26     Sec. 64.  [RELEASE FUNDS FOR RICE STREET BRIDGE OVER 
 46.27  I-694.] 
 46.28     The commissioner of transportation must release by December 
 46.29  31, 2004, the $7,500,000 for the Rice Street bridge over I-694 
 46.30  in Ramsey County, committed by the Department of Transportation 
 46.31  in a memorandum of understanding between the department and 
 46.32  Ramsey County. 
 46.33     Sec. 65.  [OUTDOOR LIGHTING PURCHASE.] 
 46.34     All purchasing of outdoor lighting fixtures using funds 
 46.35  appropriated under this act must give consideration to 
 46.36  maximizing energy conservation and savings, reducing glare, 
 47.1   minimizing light pollution, and preserving the natural night 
 47.2   environment. 
 47.3      Sec. 66.  [MINNESOTA ZOO MARINE CENTER DEBT SERVICE.] 
 47.4      Beginning in fiscal year 2005, the Minnesota Zoological 
 47.5   Garden is not required to pay any of the debt service costs on 
 47.6   bonds sold for the Marine Education Center authorized in Laws 
 47.7   1994, chapter 643, section 27, subdivision 2, as amended by Laws 
 47.8   1996, chapter 463, section 54. 
 47.9      Sec. 67.  [UNIVERSITY OF MINNESOTA; DULUTH PARKING.] 
 47.10     The Board of Regents of the University of Minnesota is 
 47.11  encouraged to expand the parking facilities at the University of 
 47.12  Minnesota, Duluth campus through the purchase of land and 
 47.13  property from willing sellers. 
 47.14     Sec. 68.  [REPEALER.] 
 47.15     Minnesota Statutes 2002, section 16B.325, is repealed. 
 47.16     Sec. 69.  [EFFECTIVE DATE.] 
 47.17     Except as otherwise provided, this article is effective the 
 47.18  day following final enactment. 
 47.19                             ARTICLE 2 
 47.20                       ADJUSTMENT OF GENERAL
 47.21                   OBLIGATION BOND AUTHORIZATIONS
 47.22     Section 1.  [TABLE OF ORIGINAL AND ADJUSTED 
 47.23  AUTHORIZATIONS.] 
 47.24     Column A lists the citation to each law authorizing general 
 47.25  obligation bonds since Laws 1983, chapter 323, section 6, to 
 47.26  which a further adjustment is being made in this section. 
 47.27     The original authorization amount in each law is shown in 
 47.28  column B opposite the citation of the law it appears in. 
 47.29     The original authorization amount in column B is hereby 
 47.30  adjusted to the amount shown in column C.  The adjustments 
 47.31  resulting in the column C amount reflect specific changes to an 
 47.32  authorization in law, executive vetoes sustained or not 
 47.33  challenged, administrative action reflecting cancellation and 
 47.34  abandonment of all or the unused balance from specific projects 
 47.35  for which the proceeds of authorized bonds were intended to be 
 47.36  used, and other action pursuant to law resulting in the adjusted 
 48.1   authorizations shown in column C.  The amounts shown in column C 
 48.2   are validated as the lawful adjusted authorization for the cited 
 48.3   law as of April 1, 2004, for all purposes for which the 
 48.4   authorization is required or used. 
 48.5              Column A            Column B         Column C
 48.6        L 1983, c 323, s 6        $ 30,000,000     $ 29,935,000
 48.7        L 1987, c 400, s 25,
 48.8        subd 1                     370,972,200      369,560,500
 48.9        L 1987, c 400, s 25, 
 48.10       subd 5                      66,747,000       66,740,000
 48.11       L 1989, c 300, art 1,
 48.12       s 23, subd 1               142,585,000      135,060,000
 48.13       L 1991, c 354, art 11, 
 48.14       s 2, subd 1                 12,000,000       11,360,000
 48.15       L 1992, c 558, s 28,
 48.16       subd 1                     231,695,000      219,085,000
 48.17       L 1992, c 558, s 28,
 48.18       subd 3                      17,500,000       17,368,000
 48.19       L 1993, c 373, s 19,
 48.20       subd 1                      54,640,000       53,355,000
 48.21       L 1993, c 373, s 19,
 48.22       subd 2                       9,900,000        9,480,000
 48.23       L 1994, c 643, s 31,
 48.24       subd 1                     573,385,000      564,650,524
 48.25       L 1994, c 643, s 31,
 48.26       subd 2                      45,000,000       34,820,000
 48.27       L 1995, 1SS c 2, s 14,
 48.28       subd 1                       5,630,000        5,590,000 
 48.29       L 1996, c 463, s 27,
 48.30       subd 1                     597,110,000      549,215,089
 48.31       L 1997, c 246, s 10,
 48.32       subd 1                      86,625,000       86,191,283
 48.33       L 1997, 2SS c 2, s 12       55,305,000       38,308,055
 48.34       L 1998, c 404, s 27,
 48.35       subd 1                     463,795,000      104,478,675
 48.36       L 1999, c 240, art 1,
 49.1        s 13, subd 1               139,510,000      111,905,000
 49.2        L 1999, c 240, art 1,
 49.3        s 13, subd 2               10,440,000           -0-
 49.4        L 1999, c 240, art 2,
 49.5        s 16, subd 1               372,400,000      367,418,000
 49.6        L 2000, c 492, art 1,
 49.7        s 26, subd 1               426,870,000      487,730,000
 49.8        L 2001, 1SS c 12, s 11,     
 49.9        subd 1                      99,205,000       98,205,000
 49.10       L 2002, c 393, s 30,
 49.11       subd 1                     920,235,000      567,312,000
 49.12     Sec. 2.  [EFFECTIVE DATE.] 
 49.13     This article is effective the day following final enactment.