1.1.................... moves to amend H.F. No. 5237, the second engrossment, as follows:
1.2Page 76, after line 10, insert:

1.3    "Section 1. 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. School building account. A school building account is established in the state
2.14treasury. The amounts necessary for the payment of aid under section 126C.17, subdivision
2.157c, are transferred from the appropriations authorized under this section to the school building
2.16account. Annually, these amounts are appropriated from the school building account to the
2.17Department of Education for aid payments to school districts under section 126C.17,
2.18subdivision 7c.
2.19    Subd. 2. Lease-purchase agreement authorization. (a) The commissioner of
2.20administration may enter into a long-term lease-purchase agreement for a term of up to 25
2.21years for activities authorized by subdivision 1. The commissioner of management and
2.22budget may issue by public or private sale lease revenue bonds or certificates of participation
2.23associated with the lease-purchase agreement. The lease-purchase agreements must not be
2.24terminated except for nonappropriation of money. The lease-purchase agreements must
2.25provide the state with a unilateral right to purchase the leased equipment or premises at
2.26specified times for specified amounts. The lease-purchase agreements are exempt from
2.27section 16B.24, subdivisions 6 and 6a.
2.28(b) The amount needed to make lease payments with respect to a lease-purchase
2.29agreement entered into under this section is appropriated each fiscal year from the general
2.30fund to the commissioner of administration subject to repeal, unallotment under section
2.3116A.152, or cancellation otherwise pursuant to subdivision 4. By January 1 in each
2.32odd-numbered year, the commissioner of administration must certify to the chairs and
2.33ranking minority members of the committees in the house of representatives and senate
2.34with jurisdiction over state government finance the amount of appropriations received by
2.35the commissioner under this paragraph during each fiscal year of the fiscal biennium ending
3.1June 30 of that year and specify the amount of appropriations anticipated to be received
3.2under this paragraph for each year of the fiscal biennium beginning July 1 of that year.
3.3(c) The commissioner of administration may enter into a ground lease for state-owned
3.4property on the State Capitol complex in conjunction with the execution of a lease-purchase
3.5agreement entered into under this section for any improvements constructed on that site.
3.6Notwithstanding the requirements of section 16A.695, subdivision 2, paragraph (b), the
3.7ground lease must be for a term equal to the term of the lease-purchase agreement and must
3.8include an option to purchase the land at its then fair market value, if the improvements are
3.9not purchased by the state at the end of the term of the lease-purchase agreement or at any
3.10earlier time that the lease-purchase agreement is terminated.
3.11(d) Certificates of participation or lease revenue bonds may be issued in one or more
3.12series on the terms and conditions the commissioner of management and budget determines
3.13to be in the best interests of the state, shall be dated and bear interest at a fixed or variable
3.14rate, may be includable in or excludable from the gross income of the owners for federal
3.15income tax purposes, and may be sold at any price or percentage of par value. Any bid
3.16received may be rejected.
3.17(e) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates
3.18of participation, and at any time thereafter, so long as the bonds or certificates are outstanding,
3.19the commissioner of management and budget may enter into agreements and ancillary
3.20arrangements relating to the bonds or certificates, including but not limited to trust indentures,
3.21grant agreements, lease or use agreements, operating agreements, management agreements,
3.22liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance
3.23policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest
3.24exchange agreements. Any payments made or received according to the agreement or
3.25ancillary arrangement shall be made from or deposited as provided in the agreement or
3.26ancillary arrangement. The determination of the commissioner of management and budget
3.27included in an interest exchange agreement that the agreement relates to a certificate or
3.28bond shall be conclusive.
3.29(f) The commissioner of management and budget may enter into written agreements or
3.30contracts relating to the continuing disclosure of information necessary to comply with or
3.31facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds
3.32or certificates of participation in accordance with federal securities laws, rules, and
3.33regulations, including Securities and Exchange Commission rules and regulations in Code
3.34of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of
3.35covenants with purchasers and holders of certificates or bonds set forth in the order or
4.1resolution authorizing the issuance of the certificates or bonds or in a separate document
4.2authorized by the order or resolution.
4.3    Subd. 3. Lease-purchase not public debt. A lease-purchase agreement does not
4.4constitute or create a general or moral obligation or indebtedness of the state in excess of
4.5the money from time to time appropriated or otherwise available for payments or obligations
4.6under such agreement. Payments due under a lease-purchase agreement during a current
4.7lease term for which money has been appropriated is a current expense of the state. A
4.8lease-purchase agreement and the related lease revenue bonds or certificates of participation
4.9shall be payable in each fiscal year only from amounts that the legislature may appropriate
4.10for debt service for any fiscal year, provided that nothing in this section shall be construed
4.11to require the state to appropriate money sufficient to make lease payments with respect to
4.12the lease-purchase agreement in any fiscal year. The lease-purchase agreement and the
4.13related lease revenue bonds or certificates of participation shall be canceled and shall no
4.14longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
4.15legislature shall not have appropriated amounts sufficient for lease payments, or (2) the date
4.16of final payment of the principal of and interest on the bonds or certificates.
4.17    Subd. 4. Refunding certificates. The commissioner of administration from time to time
4.18may enter into a new lease-purchase agreement and the commissioner of management and
4.19budget may issue and sell lease revenue bonds or certificates of participation for the purpose
4.20of refunding any lease-purchase agreement and related lease revenue bonds or certificates
4.21of participation then outstanding, including the payment of any redemption premiums, any
4.22interest accrued or that is to accrue to the redemption date, and costs related to the issuance
4.23and sale of such refunding bonds or certificates. The proceeds of any refunding bonds or
4.24certificates may, in the discretion of the commissioner of management and budget, be applied
4.25to the purchase or payment at maturity of the bonds or certificates to be refunded, to the
4.26redemption of outstanding lease-purchase agreements and bonds or certificates on any
4.27redemption date, or to pay interest on the refunding lease-purchase agreements and bonds
4.28or certificates and may, pending such application, be placed in escrow to be applied to such
4.29purchase, payment, retirement, or redemption. Any escrowed proceeds, pending such use,
4.30may be invested and reinvested in obligations that are authorized investments under section
4.3111A.24. The income earned or realized on any authorized investment may also be applied
4.32to the payment of the lease-purchase agreements and bonds or certificates to be refunded,
4.33to interest or premiums on the refunded bonds or certificates, or to pay interest on the
4.34refunding lease-purchase agreements and bonds or certificates. After the terms of the escrow
4.35have been fully satisfied, any balance of proceeds and any investment income may be
5.1returned to the general fund, or, if applicable, the Capitol Area building account, for use in
5.2a lawful manner. All refunding lease-purchase agreements and bonds or certificates issued
5.3under the provisions of this subdivision must be prepared, executed, delivered, and secured
5.4by appropriations in the same manner as the lease-purchase agreements and bonds or
5.5certificates to be refunded.
5.6    Subd. 5. Waiver of immunity. The waiver of immunity by the state provided for by
5.7section 3.751, subdivision 1, shall be applicable to lease revenue bonds or certificates of
5.8participation issued under this section and any ancillary contracts to which the commissioner
5.9is a party.
5.10    Subd. 6. Collection of rent. Notwithstanding section 16B.24, subdivision 5, paragraph
5.11(d), the commissioner of administration shall not collect rent to recover bond interest costs
5.12or building depreciation costs for any projects funded from the Capitol Area building account.
5.13    Subd. 7. Repair and replacement accounts. Money collected as rent to fund future
5.14building repairs must be credited to a segregated account for each building in the special
5.15revenue fund and is appropriated to the commissioner to make the repairs. When the lease
5.16revenue bonds are paid in full, the account for that building must be abolished and any
5.17balance remaining in the account must be transferred to the appropriate asset preservation
5.18and replacement account created under section 16B.24, subdivision 5, paragraph (d).
5.19    Subd. 8. Schedule of activities; legislative report. (a) Consistent with existing
5.20requirements of law related to construction and improvement of state buildings, the
5.21commissioner must take steps to ensure improvements to address identified critical needs
5.22are completed in a timely manner.
5.23(b) The commissioner must submit a report to the speaker of the house, the president of
5.24the senate, and the minority leaders of the house of representatives and senate no later than
5.25January 1, 2022, detailing the estimated costs and the expected timeline for design,
5.26construction, and completion of necessary work to address identified needs.
5.27    Subd. 9. Expiration. The authority to issue lease revenue bonds or certificates of
5.28participation under subdivision 2, paragraph (a), expires December 31, 2023.
5.29EFFECTIVE DATE.This section is effective the day following final enactment.

6.1    Sec. 2. Minnesota Statutes 2022, section 126C.17, is amended by adding a subdivision to
6.2read:
6.3    Subd. 7c. Seasonal tax base replacement aid. (a) A district's seasonal tax base
6.4replacement aid equals the product of (1) one minus the seasonal tax base adjustment factor,
6.5and (2) the district's referendum equalization levy calculated under subdivision 6.
6.6(b) A district's seasonal tax base adjustment factor equals the ratio of (1) the referendum
6.7market value for the district, to (2) the sum of the referendum market value and the seasonal
6.8market value for the district. The seasonal tax base adjustment factor may not be greater
6.9than one or less than 0.5. For the purposes of this paragraph, "seasonal market value" means
6.10the market value of all taxable property classified as class 4c(12) under section 273.13.
6.11(c) The amount calculated under paragraph (a) must be used to reduce the district's
6.12referendum levy determined after the adjustments under subdivisions 7a and 7b, except that
6.13the district's referendum levy must not be less than zero after the subtraction under this
6.14subdivision.
6.15EFFECTIVE DATE.This section is effective for taxes payable in 2025 and later."
6.16Renumber the sections in sequence and correct the internal references
6.17Amend the title accordingly