1.1.................... moves to amend H.F. No. 855 as follows:
1.2Delete everything after the enacting clause and insert:

1.3
 "Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
1.4    The sums shown in the column under "Appropriations" are appropriated from the
1.5bond proceeds fund, or another named fund, to the state agencies or officials indicated,
1.6to be spent for public purposes. Appropriations of bond proceeds must be spent as
1.7authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
1.8and better public land and buildings and other public improvements of a capital nature, or
1.9as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or
1.10article XIV. Unless otherwise specified, the appropriations in this article are available until
1.11the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.
1.12
 SUMMARY
1.13
 University of Minnesota
 $
 23,000,000
1.14
 Minnesota State Colleges and Universities
 67,905,000
1.15
 Education
 5,780,000
1.16
 Natural Resources
 13,700,000
1.17
 Board of Water and Soil Resources
 1,000,000
1.18
 Rural Finance Authority
 35,000,000
1.19
 Zoological Garden
 4,000,000
1.20
 Military Affairs
 3,602,000
1.21
 Transportation
 29,500,000
1.22
 Metropolitan Council
 21,000,000
1.23
 Human Services
 24,000,000
1.24
 Veterans Affairs
 7,138,000
1.25
 Corrections
 5,000,000
1.26
 Employment and Economic Development
 700,000
1.27
 Housing Finance Agency
 4,000,000
1.28
 Minnesota Historical Society
 2,065,000
1.29
 Bond Sale Expenses
 245,000
2.1
 TOTAL
 $
 247,635,000
2.2
 Bond Proceeds Fund (General Fund Debt Service)
 183,220,000
2.3
 Bond Proceeds Fund (User Financed Debt Service)
 47,635,000
2.4
 Maximum Effort School Loan Fund
 5,780,000
2.5
 State Transportation Fund
 11,000,000
2.6
 APPROPRIATIONS

2.7
 Sec. 2. UNIVERSITY OF MINNESOTA
2.8
 Subdivision 1.Total Appropriation
 $
 23,000,000
2.9To the Board of Regents of the University
2.10of Minnesota for the purposes specified in
2.11this section.
2.12
2.13
 Subd. 2.Higher Education Asset Preservation
and Replacement (HEAPR)
 20,000,000
2.14To be spent in accordance with Minnesota
2.15Statutes, section 135A.046.
2.16
 Subd. 3.Morris
2.17
2.18
 National Solar Testing and Certification
Laboratory
 3,000,000
2.19For the initiative for renewable energy
2.20and the environment to design, construct,
2.21furnish, and equip a national solar testing
2.22and certification laboratory to test, rate, and
2.23certify the performance of equipment and
2.24devices that utilize solar energy for heating
2.25and cooling air and water and for generating
2.26electricity.

2.27
2.28
 Sec. 3. MINNESOTA STATE COLLEGES
AND UNIVERSITIES
2.29
 Subdivision 1.Total Appropriation
 $
 67,905,000
2.30To the Board of Trustees of the Minnesota
2.31State Colleges and Universities for the
2.32purposes specified in this section.
2.33
2.34
 Subd. 2.Higher Education Asset Preservation
And Replacement (HEAPR)
 30,000,000
3.1For the purposes specified in Minnesota
3.2Statutes, section 135A.046, including safety
3.3and statutory compliance, building envelope
3.4integrity, mechanical systems, and space
3.5restoration.
3.6
3.7
 Subd. 3.Lake Superior Community and
Technical College
3.8
 Health and Science Center Addition
 11,000,000
3.9To complete design of and to construct,
3.10furnish, and equip an addition to the Health
3.11and Science Center and to renovate existing
3.12spaces.
3.13
3.14
 Subd. 4.Mesabi Range Community and
Technical College, Eveleth
3.15
3.16
 Carpentry and Industrial Mechanical
Technology and Shops
 5,000,000
3.17To construct, furnish, and equip shop space
3.18for the industrial mechanical technology
3.19and carpentry programs. This appropriation
3.20includes funding for renovation of existing
3.21space for ADA compliance.
3.22
 Subd. 5.Metropolitan State University
3.23
 Smart Classroom Center
 4,980,000
3.24To construct, furnish, and equip renovation
3.25of two floors of technology-enhanced
3.26classrooms and academic offices in the power
3.27plant building. This appropriation includes
3.28money to demolish the power plant annex to
3.29enable the new construction.
3.30
3.31
 Subd. 6.Minnesota State College, Southeast
Technical - Aviation Training Center
3.32Notwithstanding Minnesota Statutes, section
3.33136F.60, subdivision 5, the net proceeds
3.34of the sale or disposition of the Aviation
4.1Training Center in Winona operated by
4.2Minnesota State College - Southeast
4.3Technical, after paying all expenses incurred
4.4in selling the property and retiring any
4.5remaining debt attributable to the project,
4.6are appropriated to the board of trustees
4.7of the Minnesota State Colleges and
4.8Universities for use in a capital project at the
4.9Winona campus and need not be paid to the
4.10commissioner of finance, as would otherwise
4.11be required by Minnesota Statutes, section
4.1216A.695, subdivision 3.
4.13
 Subd. 7.North Hennepin Community College
4.14
 Center for Business and Technology
13,300,000
4.15To construct, furnish, and equip an addition
4.16to the Center for Business and Technology
4.17and to renovate the center for classrooms and
4.18related space.
4.19
 Subd. 8. Systemwide Initiatives
4.20
 Classroom Renovation
 3,625,000
4.21To design, construct, furnish, and equip
4.22renovation of classroom and academic
4.23space. Campuses may use nonstate money
4.24to increase the size of the projects. This
4.25appropriation may be used only at the
4.26following campuses: Central Lakes College,
4.27Brainerd; Minnesota State Community
4.28Technical College, Moorhead and Wadena;
4.29Minnesota West Community Technical
4.30College, Pipestone; Northland Community
4.31Technical College, Thief River Falls; Pine
4.32Technical College, Pine City; and Rochester
4.33Community Technical College, Rochester.
4.34
 Subd. 9.Debt Service
5.1(a) The board shall pay the debt service on
5.2one-third of the principal amount of state
5.3bonds sold to finance projects authorized by
5.4this section, except for higher education asset
5.5preservation and replacement, and except
5.6that, where a nonstate match is required, the
5.7debt service is due on a principal amount
5.8equal to one-third of the total project cost,
5.9less the match committed before the bonds
5.10are sold. After each sale of general obligation
5.11bonds, the commissioner of finance shall
5.12notify the board of the amounts assessed for
5.13each year for the life of the bonds.
5.14(b) The commissioner shall reduce the
5.15board's assessment each year by one-third of
5.16the net income from investment of general
5.17obligation bond proceeds in proportion to the
5.18amount of principal and interest otherwise
5.19required to be paid by the board. The board
5.20shall pay its resulting net assessment to the
5.21commissioner of finance by December 1 each
5.22year. If the board fails to make a payment
5.23when due, the commissioner of finance
5.24shall reduce allotments for appropriations
5.25from the general fund otherwise available
5.26to the board and apply the amount of the
5.27reduction to cover the missed debt service
5.28payment. The commissioner of finance
5.29shall credit the payments received from the
5.30board to the bond debt service account in
5.31the state bond fund each December 1 before
5.32money is transferred from the general fund
5.33under Minnesota Statutes, section 16A.641,
5.34subdivision 10.
5.35
 Subd. 10.Unspent Appropriations
6.1(a) Upon substantial completion of a project
6.2authorized in this section and after written
6.3notice to the commissioner of finance, the
6.4Board of Trustees must use any money
6.5remaining in the appropriation for that
6.6project for HEAPR under Minnesota
6.7Statutes, section 135A.046. The Board
6.8of Trustees must report by February 1 of
6.9each even-numbered year to the chairs
6.10of the house and senate committees with
6.11jurisdiction over capital investment and
6.12higher education finance, and to the chairs of
6.13the house Ways and Means Committee and
6.14the senate Finance Committee, on how the
6.15remaining money has been allocated or spent.
6.16(b) The unspent portion of an appropriation
6.17for a project in this section that is complete,
6.18is available for higher education asset
6.19preservation and replacement under this
6.20subdivision, at the same campus as the
6.21project for which the original appropriation
6.22was made, and the debt service requirement
6.23under subdivision 8 is reduced accordingly.
6.24Minnesota Statutes, section 16A.642, applies
6.25from the date of the original appropriation to
6.26the unspent amount transferred.

6.27
 Sec. 4. EDUCATION
6.28
 Independent School District No. 38, Red Lake
 $
 5,780,000
6.29From the maximum effort school loan fund to
6.30the commissioner of education for a capital
6.31loan to Independent School District No. 38,
6.32Red Lake, as provided in Minnesota Statutes,
6.33sections 126C.60 to 126C.72, to design,
6.34construct, furnish, and equip renovation of
7.1existing facilities and construction of new
7.2facilities.
7.3The project paid for with this appropriation
7.4includes a portion of the renovation and
7.5construction identified as Phase 4 in the
7.6review and comment performed by the
7.7commissioner of education under the capital
7.8loan provisions of Minnesota Statutes,
7.9section 126C.69. This portion includes
7.10renovation and construction of a single
7.11kitchen and cafeteria to serve the high school
7.12and middle school, a receiving area and dock,
7.13and adjacent drives, utilities, and grading.
7.14Before any capital loan contract is approved
7.15under this authorization, the district must
7.16provide documentation acceptable to the
7.17commissioner on how the capital loan will
7.18be used.

7.19
 Sec. 5. NATURAL RESOURCES
7.20
 Subdivision 1.Total Appropriation
 $
 13,700,000
7.21To the commissioner of natural resources
7.22for the purposes specified in this section.
7.23The commissioner must allocate money
7.24appropriated in this section so as to maximize
7.25the use of all available federal money from
7.26the American Recovery and Reinvestment
7.27Act of 2009, Public Law 111-5, and any other
7.28federal funding.
7.29The appropriations in this section are
7.30subject to the requirements of the natural
7.31resources capital improvement program
7.32under Minnesota Statutes, section 86A.12,
7.33unless this section or the statutes referred
7.34to in this section provide more specific
8.1standards, criteria, or priorities for projects
8.2than Minnesota Statutes, section 86A.12.
8.3To the extent possible, any prairie restoration
8.4conducted with money appropriated in this
8.5section must plant vegetation or sow seed
8.6only of ecotypes native to Minnesota, and
8.7preferably of the local ecotype, using a high
8.8diversity of species originating from as
8.9close to the restoration site as possible, and
8.10protect existing native prairies from genetic
8.11contamination.
8.12
 Subd. 2.Statewide Asset Preservation
 1,000,000
8.13For the renovation of state-owned facilities
8.14operated by the commissioner of natural
8.15resources that can be substantially completed
8.16in calendar year 2009, including renovation
8.17of buildings for energy efficiency, roof
8.18replacements, replacement of well and water
8.19treatment systems, road resurfacing, major
8.20culvert replacement and erosion control,
8.21water access rehabilitation, trail resurfacing
8.22and widening, and bridge replacement and
8.23rehabilitation.
8.24
 Subd. 3.Flood Hazard Mitigation Grants
 12,700,000
8.25For the state share of flood hazard
8.26mitigation grants for publicly owned capital
8.27improvements to prevent or alleviate flood
8.28damage under Minnesota Statutes, section
8.29103F.161.
8.30This appropriation includes money to
8.31maximize federal funds for projects in Ada,
8.32Breckenridge, and Roseau. Any remaining
8.33money from this appropriation is for the
9.1following projects as prioritized by the
9.2commissioner based on need:
9.3(a) Agassiz Valley
9.4(b) Albert Lea
9.5(c) Austin
9.6(d) Bois de Sioux Watershed District, North
9.7Ottawa project
9.8(e) Crookston
9.9(f) Granite Falls
9.10(g) Hay Creek-Norland
9.11(h) Inver Grove Heights
9.12(i) Manston Slough
9.13(j) Oakport Township
9.14(k) Shell Rock River Watershed
9.15(l) Spring Brook
9.16(m) Two Rivers
9.17For any project listed in this subdivision
9.18that the commissioner determines is not
9.19ready to proceed or does not expend all the
9.20money allocated to it, the commissioner may
9.21allocate that project's money to a project on
9.22the commissioner's priority list.
9.23To the extent that the cost of a project in
9.24Ada, Breckenridge, Crookston, Granite Falls,
9.25Oakport Township, or Roseau exceeds two
9.26percent of the median household income in
9.27the municipality multiplied by the number
9.28of households in the municipality, this
9.29appropriation is also for the local share of the
9.30project.

10.1
10.2
 Sec. 6. BOARD OF WATER AND SOIL
RESOURCES
10.3
 RIM Conservation Reserve
 $
 1,000,000
10.4To the Board of Water and Soil Resources
10.5to acquire conservation easements from
10.6landowners to preserve, restore, create,
10.7and enhance wetlands, restore and enhance
10.8rivers and streams, riparian lands, and
10.9associated uplands in order to protect
10.10soil and water quality, support fish and
10.11wildlife habitat, reduce flood damages,
10.12and other public benefits. The board must
10.13allocate money appropriated in this section
10.14so as to maximize the use of available
10.15federal funds. The provisions of Minnesota
10.16Statutes, section 103F.515, apply to this
10.17appropriation, except that the board may
10.18establish alternative payment rates for
10.19easements and practices to establish restored
10.20native prairies and to protect uplands. To
10.21the extent possible, prairie restorations
10.22conducted with money appropriated in this
10.23section must plant vegetation or sow seed
10.24only of ecotypes native to Minnesota, and
10.25preferably of the local ecotype, using a high
10.26diversity of species originating from as
10.27close to the restoration site as possible, and
10.28protect existing native prairies from genetic
10.29contamination. Of this appropriation, up to
10.30ten percent may be used to implement the
10.31program.

10.32
 Sec. 7. RURAL FINANCE AUTHORITY.
 $
 35,000,000
10.33For the purposes set forth in the Minnesota
10.34Constitution, article XI, section 5, paragraph
10.35(h). To the Rural Finance Authority to
11.1purchase participation interests in or to
11.2make direct agricultural loans to farmers
11.3under Minnesota Statutes, chapter 41B.
11.4This appropriation is for the beginning
11.5farmer program under Minnesota Statutes,
11.6section 41B.039; the loan restructuring
11.7program under Minnesota Statutes, section
11.841B.04; the seller-sponsored program under
11.9Minnesota Statutes, section 41B.042; the
11.10agricultural improvement loan program
11.11under Minnesota Statutes, section 41B.043;
11.12and the livestock expansion loan program
11.13under Minnesota Statutes, section 41B.045.
11.14All debt service on bond proceeds used to
11.15finance this appropriation must be repaid
11.16by the Rural Finance Authority under
11.17Minnesota Statutes, section 16A.643. Loan
11.18participations must be priced to provide full
11.19interest and principal coverage and a reserve
11.20for potential losses. Priority for loans must
11.21be given first to basic beginning farmer loans,
11.22second to seller-sponsored loans, and third to
11.23agricultural improvement loans.

11.24
11.25
 Sec. 8. MINNESOTA ZOOLOGICAL
GARDEN
11.26
 Asset Preservation and Improvement
 $
 4,000,000
11.27To the Minnesota Zoological Garden
11.28to design and construct capital asset
11.29preservation improvements and betterments
11.30to infrastructure and exhibits at the Minnesota
11.31Zoo.

11.32
 Sec. 9. MILITARY AFFAIRS
11.33
 Asset Preservation
 $
 3,602,000
11.34To the adjutant general for asset preservation
11.35improvements and betterments of a capital
12.1nature at military affairs facilities, to be
12.2spent in accordance with Minnesota Statutes,
12.3section 16B.307. The adjutant general must
12.4allocate money appropriated in this section
12.5so as to maximize the use of all available
12.6federal funding.
12.7This appropriation may be used for life safety
12.8improvements, to correct code deficiencies,
12.9for Americans with Disabilities Act
12.10alterations, and to improve energy efficiency
12.11at existing National Guard Training and
12.12Community Centers at Hastings, Hutchinson,
12.13Red Wing, and Winona; and to match
12.14federal stimulus money for backup heating
12.15and electricity improvements at Bemidji,
12.16Brainerd, Duluth, Inver Grove Heights,
12.17Jackson, Northeast Minneapolis, Rosemount,
12.18and St. Peter.

12.19
 Sec. 10. TRANSPORTATION
12.20
 Subdivision 1.Total Appropriation
 $
 29,500,000
12.21To the commissioner of transportation
12.22for the purposes specified in this section.
12.23The commissioner must allocate money
12.24appropriated in this section so as to maximize
12.25the use of all available federal money from
12.26the American Recovery and Reinvestment
12.27Act of 2009, Public Law 111-5, and any other
12.28federal funding.
12.29
12.30
 Subd. 2.Local Bridge Replacement and
Rehabilitation
 11,000,000
12.31This appropriation is from the bond proceeds
12.32account in the state transportation fund
12.33to match federal money and to replace
12.34or rehabilitate local deficient bridges as
13.1provided in Minnesota Statutes, section
13.2174.50.
13.3Political subdivisions may use grants made
13.4under this subdivision to construct or
13.5reconstruct bridges, including:
13.6(1) matching federal-aid grants to construct
13.7or reconstruct key bridges;
13.8(2) paying the costs of preliminary
13.9engineering and environmental studies
13.10authorized under Minnesota Statutes, section
13.11174.50, subdivision 6a;
13.12(3) paying the costs to abandon an existing
13.13bridge that is deficient and in need of
13.14replacement, but where no replacement will
13.15be made; and
13.16(4) paying the costs to construct a road
13.17or street to facilitate the abandonment
13.18of an existing bridge determined by
13.19the commissioner to be deficient, if the
13.20commissioner determines that construction
13.21of the road or street is more economical than
13.22replacement of the existing bridge.
13.23
 Subd. 3.Rail Service Improvement
 3,000,000
13.24For the rail service improvement program
13.25to be spent for the purposes set forth
13.26in Minnesota Statutes, section 222.50,
13.27subdivision 7.
13.28
13.29
 Subd. 4.Commuter and Passenger Rail
Corridor Projects
 7,500,000
13.30To implement capital improvements and
13.31betterments for commuter and passenger rail
13.32projects identified in the statewide freight
13.33and passenger rail plan, under Minnesota
13.34Statutes, section 174.03, subdivision 1b.
14.1
14.2
 Subd. 5.Minnesota Valley Railroad Track
Rehabilitation
 5,000,000
14.3For a grant to the Minnesota Valley Regional
14.4Railroad Authority to rehabilitate up to 95
14.5miles of railroad track from Norwood-Young
14.6America to Hanley Falls. A grant under this
14.7subdivision is in addition to any grant, loan,
14.8or loan guarantee for this project made by
14.9the commissioner under Minnesota Statutes,
14.10sections 222.46 to 222.62.
14.11
 Subd. 6.Port Development Assistance
 3,000,000
14.12For grants under Minnesota Statutes, chapter
14.13457A. Any improvements made with the
14.14proceeds of these grants must be publicly
14.15owned.

14.16
 Sec. 11. METROPOLITAN COUNCIL
14.17
 Transit way capital improvement program
 $
 21,000,000
14.18To the Metropolitan Council to implement
14.19capital improvements and betterments
14.20identified in the council's transit way capital
14.21improvement plan, including acquisition of
14.22land and right-of-way, design, preliminary
14.23engineering, environmental analysis and
14.24mitigation, engineering, and construction.

14.25
 Sec. 12. HUMAN SERVICES
14.26
 Subdivision 1.Total Appropriation
 $
 24,000,000
14.27To the commissioner of administration, or
14.28another named agency, for the purposes
14.29specified in this section. The commissioner
14.30must allocate money appropriated in this
14.31section so as to maximize the use of all
14.32available federal funding.
14.33
 Subd. 2.Asset Preservation
 2,000,000
15.1For asset preservation improvements and
15.2betterments of a capital nature at Department
15.3of Human Services facilities statewide, in
15.4accordance with Minnesota Statutes, section
15.516B.307.
15.6
15.7
 Subd. 3.Minnesota Sex Offender Program
Moose Lake Expansion
 20,000,000
15.8For infrastructure for phase 2 of the
15.9expansion of the Moose Lake Sex Offender
15.10Treatment Facility.
15.11
15.12
 Subd. 4.Early Childhood Learning and Child
Protection Facilities
 2,000,000
15.13To the commissioner of human services for
15.14grants to construct and rehabilitate facilities
15.15for programs under Minnesota Statutes,
15.16section 256E.37.

15.17
 Sec. 13. VETERANS AFFAIRS
15.18
 Subdivision 1.Total Appropriation
 $
 7,138,000
15.19To the commissioner of administration
15.20for the purposes specified in this section.
15.21The commissioner must allocate money
15.22appropriated in this section so as to maximize
15.23the use of all available federal funding.
15.24
 Subd. 2.Asset Preservation
 2,138,000
15.25For asset preservation improvements and
15.26betterments of a capital nature at veterans
15.27homes statewide, to be spent in accordance
15.28with Minnesota Statutes, section 16B.307.
15.29Of this, $600,000 is for HVAC replacement
15.30and foundation waterproofing in building
15.314 at the Minneapolis Veterans Home, and
15.32$350,000 is for roof replacement projects at
15.33the Hastings Veterans Home.
16.1
16.2
 Subd. 3.Veterans Residential Mental Health
Nursing Facility, Kandiyohi County
 5,000,000
16.3To design, construct, furnish, and equip
16.4a 90-bed facility in Kandiyohi County to
16.5provide residential mental health nursing
16.6services to veterans, as described in section
16.743. This appropriation is not available until
16.8the commissioner determines that sufficient
16.9funds to complete the project have been
16.10committed from nonstate sources.

16.11
 Sec. 14. CORRECTIONS
 $
 5,000,000
16.12To the commissioner of administration for
16.13improvements and betterments of a capital
16.14nature at Minnesota correctional facilities
16.15statewide, in accordance with Minnesota
16.16Statutes, section 16B.307.

16.17
16.18
 Sec. 15. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
16.19
 Redevelopment Account
 $
 700,000
16.20To the commissioner of employment and
16.21economic development for the purposes of
16.22the redevelopment account under Minnesota
16.23Statutes, section 116J.571.

16.24
 Sec. 16. HOUSING FINANCE AGENCY
 $
 4,000,000
16.25To the Housing Finance Agency for the
16.26purposes of financing the rehabilitation costs
16.27to preserve public housing. For purposes of
16.28this section, "public housing" is housing for
16.29low-income persons and households financed
16.30by the federal government and owned and
16.31operated by public housing authorities and
16.32agencies. Eligible public housing authorities
16.33must have a public housing assessment
16.34system rating of standard or above. Priority
17.1must be given to proposals that maximize
17.2federal or local resources to finance the
17.3capital costs.

17.4
17.5
 Sec. 17. MINNESOTA HISTORICAL
SOCIETY
17.6
 Historic Sites Asset Preservation
 $
 2,065,000
17.7To the Minnesota Historical Society for
17.8capital improvements and betterments at
17.9state historic sites, buildings, landscaping
17.10at historic buildings, exhibits, markers,
17.11and monuments, to be spent in accordance
17.12with Minnesota Statutes, section 16B.307.
17.13Notwithstanding that section, up to $527,000
17.14may be used to design projects eligible for
17.15future funding. The society shall determine
17.16project priorities as appropriate based on
17.17need.

17.18
 Sec. 18. BOND SALE EXPENSES
 $
 245,000
17.19To the commissioner of finance for bond sale
17.20expenses under Minnesota Statutes, section
17.2116A.641, subdivision 8.

17.22
 Sec. 19. BOND SALE SCHEDULE.
17.23    The commissioner of finance shall schedule the sale of state general obligation
17.24bonds so that, during the biennium ending June 30, 2011, no more than $1,074,985,000
17.25will need to be transferred from the general fund to the state bond fund to pay principal
17.26and interest due and to become due on outstanding state general obligation bonds. During
17.27the biennium, before each sale of state general obligation bonds, the commissioner of
17.28finance shall calculate the amount of debt service payments needed on bonds previously
17.29issued and shall estimate the amount of debt service payments that will be needed on the
17.30bonds scheduled to be sold. The commissioner shall adjust the amount of bonds scheduled
17.31to be sold so as to remain within the limit set by this section. The amount needed to make
17.32the debt service payments is appropriated from the general fund as provided in Minnesota
17.33Statutes, section 16A.641.

17.34    Sec. 20. BOND SALE AUTHORIZATION.
18.1    Subdivision 1. Bond proceeds fund. To provide the money appropriated in this
18.2article from the bond proceeds fund, the commissioner of finance shall sell and issue
18.3bonds of the state in an amount up to $230,855,000 in the manner, upon the terms, and
18.4with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
18.5Minnesota Constitution, article XI, sections 4 to 7.
18.6    Subd. 2. Maximum effort school loan fund. To provide the money appropriated
18.7in this article from the maximum effort school loan fund, the commissioner of finance
18.8shall sell and issue bonds of the state in an amount up to $5,780,000 in the manner, upon
18.9the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to
18.1016A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of
18.11the bonds, except accrued interest and any premium received on the sale of the bonds,
18.12must be credited to a bond proceeds account in the maximum effort school loan fund.
18.13    Subd. 3. Transportation fund bond proceeds account. To provide the money
18.14appropriated in this article from the state transportation fund, the commissioner of finance
18.15shall sell and issue bonds of the state in an amount up to $11,000,000 in the manner, upon
18.16the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to
18.1716A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of
18.18the bonds, except accrued interest and any premium received on the sale of the bonds,
18.19must be credited to a bond proceeds account in the state transportation fund.

18.20    Sec. 21. [16A.6455] MINNESOTA FIRST BONDS.
18.21    Subdivision 1. Program established. The commissioner of finance may establish
18.22the Minnesota first bond program to encourage individuals to invest in state general
18.23obligation bonds. The program consists of:
18.24(1) issuing a portion of the state general obligation bonds in denominations and
18.25maturities that will be attractive to individuals; and
18.26(2) developing a program for marketing the bonds to investors.
18.27    Subd. 2. Denominations. The commissioner shall determine the appropriate
18.28denominations and maturities for the Minnesota first bonds. It is the intent of the
18.29legislature to make bonds available in as small denominations as is feasible given the
18.30costs of marketing and administering the bond issue. Minimum denominations of $1,000
18.31must be made available. The minimum denomination bonds need not be made available
18.32for bonds of all maturities. For purposes of this section, "denomination" means the
18.33compounded maturity amount of the bond.
18.34    Subd. 3. Direct sale permitted. The commissioner may sell any series of savings
18.35bonds directly to the public or to financial institutions for prompt resale to the public
19.1upon the terms and conditions and the restrictions the commissioner prescribes. The
19.2commissioner may enter into all contracts deemed necessary or desirable to accomplish
19.3the sale in a cost-effective manner including a private or negotiated sale, but the
19.4commissioner may contract for investment banking and banking services only after
19.5receiving competitive proposals for the services.
19.6    Subd. 4. Marketing plan. The commissioner shall develop a plan for marketing
19.7Minnesota first bonds. The plan must include strategies to:
19.8(1) inform the public about the availability of the bonds;
19.9(2) take orders for the bonds;
19.10(3) target the sale of the bonds to Minnesota residents; and
19.11(4) market the bonds at the lowest cost to the state.

19.12    Sec. 22. Minnesota Statutes 2008, section 16A.86, subdivision 2, is amended to read:
19.13    Subd. 2. Budget request. A political subdivision that requests an appropriation of
19.14state money for a local capital improvement project is encouraged to submit the request
19.15to the commissioner of finance by July 15 of an odd-numbered year to ensure its full
19.16consideration. The requests must be submitted in the form and with the supporting
19.17documentation required by the commissioner of finance. All requests timely received by
19.18the commissioner must be forwarded submitted to the legislature, along with agency
19.19requests the governor's recommendations, whether or not the governor recommends that a
19.20request be funded, by the deadline established in section 16A.11, subdivision 1.

19.21    Sec. 23. Minnesota Statutes 2008, section 16A.86, is amended by adding a subdivision
19.22to read:
19.23    Subd. 3a. Information provided. All requests for state assistance under this section
19.24must include the following information:
19.25(1) the name of the political subdivision that will own the capital project for which
19.26state assistance is being requested;
19.27(2) the public purpose of the project;
19.28(3) the extent to which the political subdivision has or expects to provide local,
19.29private, user financing, or other nonstate funding for the project;
19.30(4) a list of the bondable activities that the project encompasses; examples of
19.31bondable activities are public improvements of a capital nature for land acquisition,
19.32predesign, design, construction, and furnishing and equipping for occupancy;
19.33(5) whether the project will require new or additional state operating subsidies;
19.34(6) whether the governing body of the political subdivision requesting the project
19.35has passed a resolution in support of the project and has established priorities for all
20.1projects within its jurisdiction for which bonding appropriations are requested when
20.2submitting multiple requests; and
20.3(7) if the project requires a predesign under section 16B.335, whether the predesign
20.4has been completed at the time the capital project request is submitted, and whether
20.5the political subdivision has submitted the project predesign to the commissioner of
20.6administration for review and approval.

20.7    Sec. 24. [84.946] NATURAL RESOURCES ASSET PRESERVATION AND
20.8REPLACEMENT (NRAPR).
20.9    Subdivision 1. Purpose. The legislature recognizes that the Department of Natural
20.10Resources owns and operates capital assets that in number, size, and programmatic use
20.11differ significantly from the capital assets owned and operated by other state departments
20.12and agencies. However, the legislature recognizes the need for standards to aid in
20.13categorizing and funding capital projects. The purpose of this section is to provide
20.14standards for those natural resource projects that are intended to preserve and replace
20.15existing facilities.
20.16    Subd. 2. Standards. (a) An appropriation for asset preservation may be used only
20.17for a capital expenditure on a capital asset previously owned by the state, within the
20.18meaning of generally accepted accounting principles as applied to public expenditures.
20.19The commissioner of natural resources will consult with the commissioner of finance to
20.20the extent necessary to ensure this and will furnish the commissioner of finance a list
20.21of projects to be financed from the account in order of their priority. The legislature
20.22assumes that many projects for preservation and replacement of portions of existing
20.23capital assets will constitute betterments and capital improvements within the meaning of
20.24the Constitution and capital expenditures under generally accepted accounting principles,
20.25and will be financed more efficiently and economically under this section than by direct
20.26appropriations for specific projects.
20.27(b) An appropriation for asset preservation must not be used to acquire land or to
20.28acquire or construct buildings or other facilities.
20.29(c) Capital budget expenditures for natural resource asset preservation and
20.30replacement projects must be for one or more of the following types of capital projects that
20.31support the existing programmatic mission of the department: code compliance including
20.32health and safety, Americans with Disabilities Act requirements, hazardous material
20.33abatement, access improvement, or air quality improvement; building energy efficiency
20.34improvements using current best practices; building or infrastructure repairs necessary
21.1to preserve the interior and exterior of existing buildings; or renovation of other existing
21.2improvements to land, including but not limited to trails and bridges.
21.3(d) Up to ten percent of an appropriation awarded under this section may be used
21.4for design costs for projects eligible to be funded from this account in anticipation of
21.5future funding from the account.
21.6    Subd. 3. Reporting priorities. The commissioner of natural resources must
21.7establish priorities within its natural resource asset preservation and replacement projects.
21.8By January 15 of each year, the commissioner must submit to the commissioner of
21.9finance and to the chairs of the house and senate committees with jurisdiction over
21.10environment and natural resources finance and capital investment a list of the projects that
21.11have been paid for with money from a natural resource asset preservation and replacement
21.12appropriation during the preceding calendar year as well as a list of those priority projects
21.13for which natural resource asset preservation and replacement appropriations will be
21.14sought in that year's legislative session.

21.15    Sec. 25. Minnesota Statutes 2008, section 85.015, is amended by adding a subdivision
21.16to read:
21.17    Subd. 26. Great River Ridge Trail, Wabasha and Olmsted Counties. The trail
21.18shall originate in the city of Plainview in Wabasha County and extend southwesterly
21.19through the city of Elgin in Wabasha County and the town of Viola in Olmsted County to
21.20the Chester Woods Trail in Olmsted County.
21.21EFFECTIVE DATE.This section is effective retroactively from June 2, 2006.

21.22    Sec. 26. Minnesota Statutes 2008, section 134.45, is amended by adding a subdivision
21.23to read:
21.24    Subd. 8. Sale of public library funded with state bond proceeds. If the
21.25commissioner of education and the local or regional governmental entity that owns
21.26a public library that has been improved with state bond proceeds under this section
21.27determines that the library is no longer usable or needed for the purposes for which the
21.28grant of state bond funds was made, the owner of the public library may sell the property
21.29in the manner authorized by law for the sale of other property owned by that jurisdiction
21.30for its fair market value. The sale must be approved by the commissioner of finance.
21.31Notwithstanding section 16A.695, subdivision 3, clause (2), the net proceeds must be
21.32applied as follows: first, to pay the state the amount of state bond proceeds used to acquire
21.33or better the property; and second, any remaining amount must be paid to the local or
21.34regional governmental owner of the property sold. When the sale is complete and the sale
22.1proceeds have been applied as provided in this subdivision, section 16A.695 no longer
22.2applies to the property and the property is no longer state bond financed property.
22.3EFFECTIVE DATE.This section is effective the day following final enactment
22.4and applies to the sale of public library property on or after that date.

22.5    Sec. 27. Minnesota Statutes 2008, section 135A.046, subdivision 2, is amended to read:
22.6    Subd. 2. Standards. Capital budget expenditures for Higher Education Asset
22.7Preservation and Replacement (HEAPR) projects must be for one or more of the
22.8following: code compliance including health and safety, Americans with Disabilities
22.9Act requirements, hazardous material abatement, access improvement, or air quality
22.10improvement; building energy efficiency improvements using current best practices; or
22.11building or infrastructure repairs necessary to preserve the interior and exterior of existing
22.12buildings; or renewal to support the existing programmatic mission of the campuses. Up
22.13to ten percent of an appropriation awarded under this section may be used for design
22.14costs for projects eligible to be funded from this account in anticipation of future funding
22.15from the account.

22.16    Sec. 28. Minnesota Statutes 2008, section 174.03, subdivision 1b, is amended to read:
22.17    Subd. 1b. Statewide freight and passenger rail plan. (a) The commissioner
22.18shall develop a comprehensive statewide freight and passenger rail plan to be included
22.19and revised as a part of the statewide transportation plan.
22.20    (b) Before the initial version of the plan is adopted, the commissioner shall provide a
22.21copy for review and comment to the chairs and ranking minority members of the senate
22.22and house of representatives committees with jurisdiction over transportation policy and
22.23finance. Notwithstanding paragraph (a), the commissioner may adopt the next revision
22.24of the statewide transportation plan, scheduled to be completed in calendar year 2009,
22.25prior to completion of the initial version of the comprehensive statewide freight and
22.26passenger rail plan.
22.27(c) The plan must identify the corridors and the capital improvements and
22.28betterments to be made. Capital improvements and betterments include preliminary
22.29engineering, design, engineering, environmental analysis and mitigation, acquisition
22.30of land and right-of-way, and construction. Capital improvements and betterments do
22.31not include planning, feasibility studies, or alternatives analysis. The plan must specify
22.32criteria for determining the priority for allocation of funds among the projects and routes.

22.33    Sec. 29. [174.632] COMMISSIONER'S DUTIES.
23.1The planning, design, development, construction, operation, and maintenance
23.2of passenger rail track, facilities, and services are governmental functions, serve a
23.3public purpose, and are a matter of public necessity. The commissioner is responsible
23.4for all aspects of planning, designing, developing, constructing, equipping, operating,
23.5and maintaining passenger rail, including system planning, alternatives analysis,
23.6environmental studies, preliminary engineering, final design, construction, negotiating
23.7with railroads, and developing financial and operating plans. The commissioner may
23.8enter into a memorandum of understanding or agreement with a public or private entity,
23.9including a regional railroad authority, a joint powers board, and a railroad, to carry out
23.10these activities.

23.11    Sec. 30. [174.634] PASSENGER RAIL FUNDING.
23.12The commissioner may apply for funding from federal, state, regional, local, and
23.13private sources to carry out the commissioner's duties in section 174.632.

23.14    Sec. 31. [174.636] EXERCISE OF POWER; PASSENGER RAIL.
23.15(a) The commissioner has all powers necessary to carry out the duties specified
23.16in section 174.632. In the exercise of those powers, the commissioner may acquire by
23.17purchase, gift, or by eminent domain proceedings as provided by law, all land and property
23.18necessary to preserve future passenger rail corridors or to construct, maintain, and improve
23.19passenger rail corridors, to let all necessary contracts as provided by law, and to make
23.20agreements with and cooperate with any governmental authority or private entity to carry
23.21out statutory duties related to passenger rail.
23.22(b) The commissioner shall consult with metropolitan planning organizations and
23.23regional rail authorities in areas where passenger rail corridors are under consideration
23.24to ensure that passenger rail services are integrated with existing rail and transit services
23.25and other transportation facilities to provide as nearly as possible connected, efficient,
23.26and integrated services.

23.27    Sec. 32. [174.638] FUNDING.
23.28Section 174.88 does not apply to the commissioner's performance of duties and
23.29exercise of powers under sections 174.632 to 174.636.

23.30    Sec. 33. Minnesota Statutes 2008, section 174.88, subdivision 2, is amended to read:
23.31    Subd. 2. Expenditure of state funds. The commissioner shall not spend any state
23.32funds for construction or equipment of commuter rail facilities unless the funds have been
23.33appropriated by law specifically for those purposes. The commissioner shall not spend
24.1state funds to study commuter rail unless the funds are appropriated in legislation that
24.2identifies the route, including origin and destination.

24.3    Sec. 34. Laws 2005, chapter 20, article 1, section 23, subdivision 16, as amended by
24.4Laws 2008, chapter 179, section 58, is amended to read:
24.5
 Subd. 16.Minneapolis
24.6
 (a) Minnesota Planetarium
 22,000,000
24.7For a grant to Hennepin County to complete
24.8design and to construct, furnish, and
24.9equip a new Minnesota planetarium and
24.10space discovery center in conjunction
24.11with the Minneapolis downtown library.
24.12Notwithstanding Minnesota Statutes,
24.13section 16A.642, the bond authorization
24.14and appropriation of bond proceeds for this
24.15project are available until December 31,
24.162012.
24.17
 (b) Heritage Park
24.18Any unspent balance remaining on December
24.1931, 2004, in the appropriation made by
24.20Laws 2000, chapter 492, article 1, section
24.2122, subdivision 10, for a grant to the city of
24.22Minneapolis, may be used by the city for
24.23improvements to the Heritage Park project.
24.24
 (c) Minnesota Shubert Center
 1,000,000
24.25For a grant to the city of Minneapolis to
24.26predesign and design and provide for related
24.27capital costs for an associated atrium to
24.28create the Minnesota Shubert Center.

24.29    Sec. 35. Laws 2006, chapter 258, section 20, subdivision 7, is amended to read:
24.30
24.31
 Subd. 7.Minnesota correctional facility -
Stillwater
24.32
 Segregation Unit
 19,580,000
25.1To complete design and to construct, furnish,
25.2and equip a new 150-bed segregation unit
25.3and reconstruct the old segregation unit.

25.4    Sec. 36. Laws 2006, chapter 258, section 21, subdivision 5, is amended to read:
25.5
25.6
 Subd. 5.Greater Minnesota Business
Development Infrastructure Grant Program
 7,750,000
25.7For grants under Minnesota Statutes, section
25.8116J.431 .
25.9$250,000 is for a grant to Polk County to
25.10build approximately one mile of ten-ton road
25.11to provide access to a new proposed ethanol
25.12plant outside of the city of Erskine.
25.13$1,400,000 is for a grant to the city of
25.14LaCrescent for public infrastructure made
25.15necessary by the reconstruction of a highway
25.16and a bridge.

25.17    Sec. 37. Laws 2006, chapter 258, section 21, subdivision 6, as amended by Laws 2008,
25.18chapter 179, section 65, is amended to read:
25.19
 Subd. 6.Redevelopment Account
 9,000,000
25.20For purposes of the redevelopment account
25.21under Minnesota Statutes, section 116J.571.
25.22$800,000 is for a grant to the city of
25.23Worthington to remediate contaminated soil
25.24and redevelop the site of the former Campbell
25.25Soup factory. This grant is exempt from the
25.26requirements of Minnesota Statutes, sections
25.27116J.572 to 116J.575. Notwithstanding
25.28Minnesota Statutes, section 16A.642, the
25.29bond authorization and appropriation of the
25.30bond proceeds for this project are available
25.31until December 31, 2012.
25.32$250,000 is for a grant to the city of Winona
25.33to predesign facilities for a multipurpose
26.1events center and arena to be used for the
26.2Shakespeare Festival, Beethoven Festival,
26.3and Winona State University events. This
26.4grant is exempt from the requirements of
26.5Minnesota Statutes, sections 116J.572 to
26.6116J.575 .

26.7    Sec. 38. Laws 2006, chapter 258, section 23, subdivision 3, as amended by Laws 2008,
26.8chapter 179, section 68, is amended to read:
26.9
26.10
 Subd. 3.Historic Fort Snelling Museum and
Visitor Center
 1,100,000
26.11To predesign and design the historic Fort
26.12Snelling Museum and Visitor Center and
26.13other site improvements to revitalize historic
26.14Fort Snelling.

26.15    Sec. 39. Laws 2008, chapter 179, section 3, subdivision 12, as amended by Laws 2008,
26.16chapter 365, section 17, is amended to read:
26.17
 Subd. 12. Metropolitan State University
26.18
 (a) Smart Classroom Center
4,980,000
26.19To construct, furnish, and equip renovation
26.20of two floors of technology-enhanced
26.21classrooms and academic offices in the
26.22power plant building. This appropriation
26.23includes money to demolish the power plant
26.24annex to enable the new construction. *
26.25(The preceding text beginning "(a) Smart
26.26Classroom Center" was indicated as
26.27vetoed by the governor.)
26.28
 (b) Law Enforcement Training Center
13,900,000
26.29To compete design of and to construct,
26.30furnish, and equip, in cooperation with
26.31Minneapolis Community and Technical
26.32College, a colocated Law Enforcement
26.33Training Center on the campus of Hennepin
27.1Technical College in Brooklyn Park. The
27.2board may use up to $2,000,000 of funds
27.3from each college or university, or other
27.4nonstate money for the remainder of the cost
27.5of design and construction of this project.

27.6    Sec. 40. Laws 2008, chapter 179, section 3, subdivision 21, is amended to read:
27.7
27.8
 Subd. 21.Owatonna College and University
Center
27.9
 Property Acquisition
 3,500,000
27.10To acquire the Owatonna College and
27.11University Center Building in Steele County,
27.12including the purchase of adjacent vacant
27.13land and for minor capital improvements to
27.14the property.

27.15    Sec. 41. Laws 2008, chapter 179, section 3, subdivision 25, is amended to read:
27.16
 Subd. 25.St. Cloud State University
27.17
 (a) Brown Science Hall Renovation
 14,800,000
27.18To complete design of and to construct,
27.19furnish, and equip a renovation of Brown
27.20Hall for classrooms, science laboratories, and
27.21other instructional and ancillary spaces. This
27.22appropriation includes funding to reglaze the
27.23existing skyway from the building and to
27.24construct a new skyway to Centennial Hall.
27.25This appropriation may also be used to
27.26complete design and construction drawings
27.27for the Science and Engineering Lab
27.28authorized in paragraph (b) and to demolish
27.29building number 801.
27.30
 (b) Science and Engineering Lab
 900,000
27.31To design an integrated science and
27.32engineering laboratory and student and
27.33academic support building.

28.1    Sec. 42. PASSENGER RAIL REPORT.
28.2By February 1, 2010, the commissioner of transportation shall report to the chairs
28.3and ranking minority members of the legislative committees with jurisdiction over
28.4transportation policy and finance concerning the status of passenger rail in this state.
28.5The report must be made electronically and made available in print only upon request.
28.6The report must include a summary of the current status of passenger rail projects and
28.7recommend:
28.8(1) a public participation process for intercity passenger rail planning;
28.9(2) appropriate participation and levels of review by local units of government;
28.10(3) future sources of funding for capital costs and operations;
28.11(4) definitions to distinguish passenger rail from commuter rail;
28.12(5) legislative changes to facilitate and improve the passenger rail planning processes
28.13and operation; and
28.14(6) state operating subsidy mechanisms designed to create local tax equity between
28.15communities served by passenger rail and communities served by commuter rail.

28.16    Sec. 43. VETERANS RESIDENTIAL MENTAL HEALTH NURSING
28.17FACILITY, KANDIYOHI COUNTY.
28.18(a) Services provided by the veterans residential mental health nursing facility in
28.19Kandiyohi County must include, but are not limited to:
28.20(1) geriatric care for mentally ill veterans who have severe behavior problems;
28.21(2) inpatient treatment, including long-term and domiciliary care, for veterans with
28.22traumatic brain injury;
28.23(3) inpatient treatment services, including long-term and domiciliary care, for
28.24veterans with post-traumatic stress disorder;
28.25(4) inpatient treatment for veterans with a dual diagnosis of mental illness and
28.26chemical dependency;
28.27(5) long-term and domiciliary care for any veteran; and
28.28(6) standard long-term care.
28.29(b) The facility shall accept referrals from veterans homes in the state.
28.30(c) The commissioner of veterans affairs shall seek private funding to develop a
28.31public-private partnership to provide services for veterans with traumatic brain injury and
28.32with post-traumatic stress disorder, and for veterans who have a dual diagnosis of mental
28.33illness and chemical dependency.
28.34(d) The commissioner of veterans affairs shall seek all sources of federal funding
28.35available for long-term and domiciliary care and for treatment of post-traumatic stress
28.36disorder and traumatic brain injury.
29.1(e) The commissioner shall seek funding from state and federal sources to fund
29.2traumatic brain injury research at this facility.

29.3    Sec. 44. REPEALER.
29.4Minnesota Statutes 2008, sections 16A.86, subdivision 3; 116.156; and 473.399,
29.5subdivision 4, and Laws 2008, chapter 179, section 8, subdivision 3, are repealed.

29.6    Sec. 45. EFFECTIVE DATE.
29.7Except as otherwise provided, this act is effective the day following final enactment."
29.8Delete the title and insert:
29.9"A bill for an act
29.10relating to capital improvements; authorizing spending to acquire and better
29.11public land and buildings and other improvements of a capital nature with
29.12certain conditions; establishing new programs and modifying existing
29.13programs; authorizing the sale of state bonds; repealing and modifying previous
29.14appropriations; appropriating money;amending Minnesota Statutes 2008,
29.15sections 16A.86, subdivision 2, by adding a subdivision; 85.015, by adding a
29.16subdivision; 134.45, by adding a subdivision; 135A.046, subdivision 2; 174.03,
29.17subdivision 1b; 174.88, subdivision 2; Laws 2005, chapter 20, article 1, section
29.1823, subdivision 16, as amended; Laws 2006, chapter 258, sections 20, subdivision
29.197; 21, subdivisions 5, 6, as amended; 23, subdivision 3, as amended; Laws 2008,
29.20chapter 179, section 3, subdivisions 12, as amended, 21, 25; proposing coding
29.21for new law in Minnesota Statutes, chapters 16A; 84; 174; repealing Minnesota
29.22Statutes 2008, sections 16A.86, subdivision 3; 116.156; 473.399, subdivision 4;
29.23Laws 2008, chapter 179, section 8, subdivision 3."