1.1.................... moves to amend H.F. No. 2476, the second engrossment, as follows:
1.2Page 56, after line 24, insert:

1.3    "Sec. .... Minnesota Statutes 2022, section 16B.2406, is amended to read:
1.416B.2406 CAPITOL AREA BUILDING ACCOUNT TO ADDRESS HEALTH,
1.5LIFE SAFETY, AND SECURITY NEEDS.
1.6    Subdivision 1. Account established; appropriations and use of funds. (a) A Capitol
1.7Area building account is established in the state treasury. The commissioner of management
1.8and budget shall deposit the proceeds from the lease revenue bonds or certificates of
1.9participation received under subdivision 2 to the account. Net income from investment of
1.10the proceeds, as estimated by the commissioner of management and budget, must be credited
1.11to the appropriate accounts in the Capitol Area building account.
1.12(b) Funds in the Capitol Area building account are appropriated to the commissioner of
1.13administration for capital expenditures that address identified critical health, life safety, and
1.14security needs of buildings located on the State Capitol complex that were constructed
1.15before 1940 and for expenditures to ensure the continued operations of affected tenants
1.16while those needs are being addressed. The funds may be used for predesign, design,
1.17construction, equipping, and hazardous materials abatement activities related to these
1.18authorized uses including but not limited to addressing necessary accessibility, infrastructure,
1.19function, and building systems changes. This appropriation may only be used for renovation
1.20or rehabilitation of existing buildings in the State Capitol complex and to expand an existing
1.21building as part of a renovation or rehabilitation project funded under this section. This
1.22appropriation may not be used to demolish an existing building in its entirety.
1.23(c) Amounts necessary for predesign, design, rent loss, and tenant relocation for projects
1.24authorized by this subdivision are appropriated from the general fund to the commissioner
1.25of administration. The predesign must include a needs assessment prepared by an independent
2.1contractor. To prepare the needs assessment, the contractor must consider the needs of all
2.2tenants of the building. The assessment should identify goals to be achieved by the renovation
2.3or rehabilitation project and must address needs for health, life safety, security, and function,
2.4including space and layout needs for each tenant. The commissioner must not prepare final
2.5plans and specifications until the program plan and cost estimates for all elements necessary
2.6to complete the project are approved by the affected building's primary tenant. The final
2.7plans and specifications must resolve the needs identified in the needs assessment.
2.8(d) The commissioner of administration may not prepare final plans and specifications
2.9for any project authorized by this subdivision until at least 60 days after the commissioner
2.10has submitted the results of the needs assessment to the Capitol Area Architectural and
2.11Planning Board. Projects authorized by this section are exempt from the design competition
2.12requirement of section 15B.10.
2.13    Subd. 1a. Transfer to early learning scholarships account. The appropriations
2.14authorized under this section are transferred to the early learning scholarships account in
2.15the special revenue fund under section 124D.165, subdivision 6.
2.16    Subd. 2. Lease-purchase agreement authorization. (a) The commissioner of
2.17administration may enter into a long-term lease-purchase agreement for a term of up to 25
2.18years for activities authorized by subdivision 1. The commissioner of management and
2.19budget may issue by public or private sale lease revenue bonds or certificates of participation
2.20associated with the lease-purchase agreement. The lease-purchase agreements must not be
2.21terminated except for nonappropriation of money. The lease-purchase agreements must
2.22provide the state with a unilateral right to purchase the leased equipment or premises at
2.23specified times for specified amounts. The lease-purchase agreements are exempt from
2.24section 16B.24, subdivisions 6 and 6a.
2.25(b) The amount needed to make lease payments with respect to a lease-purchase
2.26agreement entered into under this section is appropriated each fiscal year from the general
2.27fund to the commissioner of administration subject to repeal, unallotment under section
2.2816A.152, or cancellation otherwise pursuant to subdivision 4. By January 1 in each
2.29odd-numbered year, the commissioner of administration must certify to the chairs and
2.30ranking minority members of the committees in the house of representatives and senate
2.31with jurisdiction over state government finance the amount of appropriations received by
2.32the commissioner under this paragraph during each fiscal year of the fiscal biennium ending
2.33June 30 of that year and specify the amount of appropriations anticipated to be received
2.34under this paragraph for each year of the fiscal biennium beginning July 1 of that year.
3.1(c) The commissioner of administration may enter into a ground lease for state-owned
3.2property on the State Capitol complex in conjunction with the execution of a lease-purchase
3.3agreement entered into under this section for any improvements constructed on that site.
3.4Notwithstanding the requirements of section 16A.695, subdivision 2, paragraph (b), the
3.5ground lease must be for a term equal to the term of the lease-purchase agreement and must
3.6include an option to purchase the land at its then fair market value, if the improvements are
3.7not purchased by the state at the end of the term of the lease-purchase agreement or at any
3.8earlier time that the lease-purchase agreement is terminated.
3.9(d) Certificates of participation or lease revenue bonds may be issued in one or more
3.10series on the terms and conditions the commissioner of management and budget determines
3.11to be in the best interests of the state, shall be dated and bear interest at a fixed or variable
3.12rate, may be includable in or excludable from the gross income of the owners for federal
3.13income tax purposes, and may be sold at any price or percentage of par value. Any bid
3.14received may be rejected.
3.15(e) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates
3.16of participation, and at any time thereafter, so long as the bonds or certificates are outstanding,
3.17the commissioner of management and budget may enter into agreements and ancillary
3.18arrangements relating to the bonds or certificates, including but not limited to trust indentures,
3.19grant agreements, lease or use agreements, operating agreements, management agreements,
3.20liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance
3.21policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest
3.22exchange agreements. Any payments made or received according to the agreement or
3.23ancillary arrangement shall be made from or deposited as provided in the agreement or
3.24ancillary arrangement. The determination of the commissioner of management and budget
3.25included in an interest exchange agreement that the agreement relates to a certificate or
3.26bond shall be conclusive.
3.27(f) The commissioner of management and budget may enter into written agreements or
3.28contracts relating to the continuing disclosure of information necessary to comply with or
3.29facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds
3.30or certificates of participation in accordance with federal securities laws, rules, and
3.31regulations, including Securities and Exchange Commission rules and regulations in Code
3.32of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of
3.33covenants with purchasers and holders of certificates or bonds set forth in the order or
3.34resolution authorizing the issuance of the certificates or bonds or in a separate document
3.35authorized by the order or resolution.
4.1    Subd. 3. Lease-purchase not public debt. A lease-purchase agreement does not
4.2constitute or create a general or moral obligation or indebtedness of the state in excess of
4.3the money from time to time appropriated or otherwise available for payments or obligations
4.4under such agreement. Payments due under a lease-purchase agreement during a current
4.5lease term for which money has been appropriated is a current expense of the state. A
4.6lease-purchase agreement and the related lease revenue bonds or certificates of participation
4.7shall be payable in each fiscal year only from amounts that the legislature may appropriate
4.8for debt service for any fiscal year, provided that nothing in this section shall be construed
4.9to require the state to appropriate money sufficient to make lease payments with respect to
4.10the lease-purchase agreement in any fiscal year. The lease-purchase agreement and the
4.11related lease revenue bonds or certificates of participation shall be canceled and shall no
4.12longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
4.13legislature shall not have appropriated amounts sufficient for lease payments, or (2) the date
4.14of final payment of the principal of and interest on the bonds or certificates.
4.15    Subd. 4. Refunding certificates. The commissioner of administration from time to time
4.16may enter into a new lease-purchase agreement and the commissioner of management and
4.17budget may issue and sell lease revenue bonds or certificates of participation for the purpose
4.18of refunding any lease-purchase agreement and related lease revenue bonds or certificates
4.19of participation then outstanding, including the payment of any redemption premiums, any
4.20interest accrued or that is to accrue to the redemption date, and costs related to the issuance
4.21and sale of such refunding bonds or certificates. The proceeds of any refunding bonds or
4.22certificates may, in the discretion of the commissioner of management and budget, be applied
4.23to the purchase or payment at maturity of the bonds or certificates to be refunded, to the
4.24redemption of outstanding lease-purchase agreements and bonds or certificates on any
4.25redemption date, or to pay interest on the refunding lease-purchase agreements and bonds
4.26or certificates and may, pending such application, be placed in escrow to be applied to such
4.27purchase, payment, retirement, or redemption. Any escrowed proceeds, pending such use,
4.28may be invested and reinvested in obligations that are authorized investments under section
4.2911A.24. The income earned or realized on any authorized investment may also be applied
4.30to the payment of the lease-purchase agreements and bonds or certificates to be refunded,
4.31to interest or premiums on the refunded bonds or certificates, or to pay interest on the
4.32refunding lease-purchase agreements and bonds or certificates. After the terms of the escrow
4.33have been fully satisfied, any balance of proceeds and any investment income may be
4.34returned to the general fund, or, if applicable, the Capitol Area building account, for use in
4.35a lawful manner. All refunding lease-purchase agreements and bonds or certificates issued
4.36under the provisions of this subdivision must be prepared, executed, delivered, and secured
5.1by appropriations in the same manner as the lease-purchase agreements and bonds or
5.2certificates to be refunded.
5.3    Subd. 5. Waiver of immunity. The waiver of immunity by the state provided for by
5.4section 3.751, subdivision 1, shall be applicable to lease revenue bonds or certificates of
5.5participation issued under this section and any ancillary contracts to which the commissioner
5.6is a party.
5.7    Subd. 6. Collection of rent. Notwithstanding section 16B.24, subdivision 5, paragraph
5.8(d), the commissioner of administration shall not collect rent to recover bond interest costs
5.9or building depreciation costs for any projects funded from the Capitol Area building account.
5.10    Subd. 7. Repair and replacement accounts. Money collected as rent to fund future
5.11building repairs must be credited to a segregated account for each building in the special
5.12revenue fund and is appropriated to the commissioner to make the repairs. When the lease
5.13revenue bonds are paid in full, the account for that building must be abolished and any
5.14balance remaining in the account must be transferred to the appropriate asset preservation
5.15and replacement account created under section 16B.24, subdivision 5, paragraph (d).
5.16    Subd. 8. Schedule of activities; legislative report. (a) Consistent with existing
5.17requirements of law related to construction and improvement of state buildings, the
5.18commissioner must take steps to ensure improvements to address identified critical needs
5.19are completed in a timely manner.
5.20(b) The commissioner must submit a report to the speaker of the house, the president of
5.21the senate, and the minority leaders of the house of representatives and senate no later than
5.22January 1, 2022, detailing the estimated costs and the expected timeline for design,
5.23construction, and completion of necessary work to address identified needs.
5.24    Subd. 9. Expiration. The authority to issue lease revenue bonds or certificates of
5.25participation under subdivision 2, paragraph (a), expires December 31, 2023.
5.26EFFECTIVE DATE.This section is effective the day following final enactment."
5.27Renumber the sections in sequence and correct the internal references
5.28Amend the title accordingly