Journal of the House - 85th Day - Wednesday, April 5, 2006

The motion prevailed and the Minority Report on H. F. No. 263 was laid on the table.

The question recurred on the adoption of the Majority Report from the Committee on Ways and Means relating to H. F. No. 263. The Majority Report on H. F. No. 263 was adopted.

Johnson, J., from the Committee on Civil Law and Elections to which was referred:

H. F. No. 923, A bill for an act relating to transportation; modifying provisions relating to property transactions of Department of Transportation; making clarifying changes; amending Minnesota Statutes 2004, sections 13.44, subdivision 3; 117.036; 161.44, by adding a subdivision; 161.442; 515B.1-107; 515B.3-102.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2004, section 117.036, is amended to read:

117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION PURPOSES.

Subdivision 1. Application. This section applies to the acquisition of property for public highways, streets, roads, alleys, airports, mass transit facilities, or for other transportation facilities or purposes.

Subd. 2. Appraisal. (a) Before ~~commencing an eminent domain proceeding under this chapter~~ acquiring an interest in real property, the acquiring authority must obtain at least one appraisal for the property proposed to be acquired. In making the appraisal, the appraiser must confer with one or more of the fee owners or contract purchasers of the property, if reasonably possible. Notwithstanding section 13.44 or any other law to the contrary, the acquiring authority must provide the fee owner or contract purchaser with a copy of the appraisal at least 20 days before presenting a petition under section 117.055, ~~the acquiring authority must provide the owner with a copy of the appraisal~~ and inform the ~~owner of the owner's~~ fee owner or contract purchaser of the right to obtain an appraisal under this section. Upon request, the acquiring authority must make available to the fee owner or contract purchaser all appraisals of the property.

(b) The fee owner or contract purchaser may obtain an appraisal by a qualified appraiser of the property proposed to be acquired. The fee owner or contract purchaser is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring authority up to a maximum of $1,500 ~~within 30 days after the~~ for an appraisal of residential, agricultural, or open land and up to a maximum of $5,000 for an appraisal of commercial or industrial land if the fee owner or contract purchaser:

(1) submits to the acquiring authority a copy of the appraisal and the information necessary for reimbursement~~, provided that the owner does so~~;

(2) requests reimbursement within 60 90 days after ~~the owner receives~~ receiving the appraisal from the authority under paragraph (a). and at least 30 days before a condemnation commissioners' hearing; and

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(3) ensures that the appraisal is conducted in accordance with the Uniform Standards of Professional Appraisal Practice. The acquiring authority must pay the reimbursement to the fee owner or contract purchaser within 30 days after receiving a copy of the appraisal and the reimbursement information. Upon agreement between the acquiring authority and either the fee owner or contract purchaser, the acquiring authority may pay the reimbursement directly to the appraiser.

Subd. 3. Negotiation. In addition to the appraisal requirements under subdivision 2, before commencing an eminent domain proceeding, the acquiring authority must make a good faith attempt to negotiate personally with the fee owner or contract purchaser of the property in order to acquire the property by direct purchase instead of the use of eminent domain proceedings. In making this negotiation, the acquiring authority must consider the appraisals in its possession, including any appraisal obtained and furnished by the fee owner or contract purchaser if available, and other information that may be relevant to a determination of damages under this chapter.

Subd. 4. Condemnation commissioners' hearing. (a) Notwithstanding section 13.44, an owner's appraisal may not be used or considered in a condemnation commissioners' hearing conducted under section 117.085, nor may the owner's appraiser testify, unless a copy of the owner's appraiser's written report is provided to the acquiring authority at least five days before the hearing.

(b) Notwithstanding section 13.44, the acquiring authority's appraisal may not be used or considered in a condemnation commissioners' hearing conducted under section 117.085, nor may the acquiring authority's appraiser testify, unless a copy of the acquiring authority's appraiser's written report is provided to the owner or contract purchaser at least five days before the hearing.

Sec. 2. Minnesota Statutes 2004, section 161.44, is amended by adding a subdivision to read:

Subd. 9a. Appropriation. (a) Proceeds from the sale or lease of real estate and buildings under this section and sections 161.23 and 161.41 must be paid into the trunk highway fund and are appropriated to the commissioner to pay:

(1) for the actual cost of selling or leasing the real estate or buildings;

(2) the fees required to be paid under this section and section 161.23; and

(3) for the actual cost of construction, reconstruction, or improvement of trunk highways, including:

(i) consultant usage to support these activities;

(ii) payments to landowners for lands acquired for highway rights-of-way;

(iii) payments to lessees;

(iv) interest subsidies; and

(v) relocation expenses.

(b) Proceeds are available until expended.

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Sec. 3. Minnesota Statutes 2004, section 161.442, is amended to read:

161.442 RECONVEYANCE TO FORMER OWNER.

Notwithstanding sections 161.23, 161.41, 161.411, 161.43, 161.44, or any other statute, the commissioner of transportation, with the consent of the owner, or for good cause and with the consent of the court, may transfer, sell, or convey real property including fixtures, and interests in real property including easements, to the owner from whom the property was acquired by the state for trunk highway purposes through a pending eminent domain action. The transfer of title may be by stipulation, partial dismissal, bill of sale, or conveyance. Any resulting change in the state's acquisition must be explained in the final certificate for that action. This provision does not confer on a landowner the right to compel a reconveyance without the consent of the commissioner.

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

Delete the title and insert:

"A bill for an act relating to transportation; modifying provisions relating to property transactions of Department of Transportation; making clarifying changes; amending Minnesota Statutes 2004, sections 117.036; 161.44, by adding a subdivision; 161.442."

With the recommendation that when so amended the bill pass.

The report was adopted.

Bradley from the Committee on Health Policy and Finance to which was referred:

H. F. No. 934, A bill for an act relating to gambling; appropriating money for compulsive gambling prevention and education.

Reported the same back with the following amendments:

Page 1, line 6, delete the first "$150,000" and insert "$25,000"

Page 1, line 8, delete "Northstar"

Page 1, line 9, delete "Problem Gambling Alliance, located in Arlington, Minnesota" and insert "Minnesota Affiliate of the National Council on Problem Gambling"

Page 1, line 10, delete "Northstar Problem Gambling Alliance" and insert "Minnesota Affiliate of the National Council on Problem Gambling"

Page 1, line 15, delete "each year of the biennium" and insert "fiscal year 2007"

Page 1, after line 20, insert:

"Sec. 2. EFFECTIVE DATE.

Section 1 is effective the day following final enactment."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

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Johnson, J., from the Committee on Civil Law and Elections to which was referred:

H. F. No. 1106, A bill for an act relating to civil actions; limiting liability for certain conduct of persons released from confinement; proposing coding for new law in Minnesota Statutes, chapter 147.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [147.231] RELEASED PERSONS; PRESCRIPTIONS.

(a) Subject to paragraph (b), a physician, physician assistant, certified nurse practitioner, or clinical nurse specialist in psychiatric and mental health nursing is not civilly liable for conduct of a former prisoner or civilly committed person that is related to the use or nonuse of medicines prescribed by the physician, physician assistant, certified nurse practitioner, or clinical nurse specialist in psychiatric and mental health nursing before the prisoner's or committed person's release. This limitation on liability applies during the period from release from confinement until the former prisoner or committed person is scheduled to receive new medicines pursuant to a new prescription written after the release.

(b) In order for paragraph (a) to apply, the person must have made the prescription in good faith, within the scope of lawful practice, and with reasonable care.

Sec. 2. Minnesota Statutes 2004, section 604A.31, is amended by adding a subdivision to read:

Subd. 2a. Prescriptions for released persons. A physician, physician assistant, certified nurse practitioner, or clinical nurse specialist in psychiatric and mental health nursing who prescribes drugs for a prisoner or committed person is immune from liability for conduct of that person related to the use or nonuse of medicine as provided in section 147.231."

Delete the title and insert:

"A bill for an act relating to civil actions; limiting liability for certain conduct of persons released from confinement; amending Minnesota Statutes 2004, section 604A.31, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 147."

With the recommendation that when so amended the bill pass.

The report was adopted.

Johnson, J., from the Committee on Civil Law and Elections to which was referred:

H. F. No. 2812, A bill for an act relating to public safety; establishing procedures to secure blood testing of individuals whose bodily fluids contact peace officers; proposing coding for new law in Minnesota Statutes, chapter 626.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Public Safety Policy and Finance.

The report was adopted.

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Dorman from the Committee on Capital Investment to which was referred:

H. F. No. 2959, A bill for an act relating to capital improvements; authorizing spending to acquire and better public land and buildings and other public improvements of a capital nature with certain conditions; establishing new programs and modifying existing programs; authorizing sale of state bonds; appropriating money; amending Minnesota Statutes 2004, sections 16A.11, subdivision 1; 16A.86, subdivisions 2, 4; 86A.05, subdivision 3; Laws 2005, chapter 20, article 1, sections 7, subdivision 14; 23, subdivision 12; proposing coding for new law in Minnesota Statutes, chapters 16B; 116J.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

The sums shown in the column under "APPROPRIATIONS" are appropriated from the bond proceeds fund, or another named fund, to the state agencies or officials indicated, to be spent for public purposes. Appropriations of bond proceeds must be spent as authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public land and buildings and other public improvements of a capital nature, or as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless otherwise specified, the appropriations in this act are available until the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.

SUMMARY

UNIVERSITY OF MINNESOTA

$121,333,000

MINNESOTA STATE COLLEGES AND UNIVERSITIES

187,690,000

PERPICH CENTER FOR ARTS EDUCATION

1,051,000

EDUCATION

16,000,000

MINNESOTA STATE ACADEMIES

2,509,000

NATURAL RESOURCES

100,951,000

POLLUTION CONTROL AGENCY

15,800,000

BOARD OF WATER AND SOIL RESOURCES

9,200,000

AGRICULTURE

1,500,000

ZOOLOGICAL GARDEN

9,000,000

ADMINISTRATION

10,912,000

CAPITOL AREA ARCHITECTURAL PLANNING

1,800,000

MILITARY AFFAIRS

8,629,000

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TRANSPORTATION

144,500,000

METROPOLITAN COUNCIL

20,991,000

HUMAN SERVICES

57,821,000

VETERANS HOMES BOARD

16,646,000

CORRECTIONS

43,679,000

EMPLOYMENT AND ECONOMIC DEVELOPMENT

125,304,000

HOUSING FINANCE AGENCY

8,000,000

MINNESOTA HISTORICAL SOCIETY

5,572,000

GRANTS TO POLITICAL SUBDIVISIONS

90,037,000

BOND SALE EXPENSES

945,000

TOTAL

$999,870,000

Bond Proceeds Fund (General Fund Debt Service)

862,773,000

Bond Proceeds Fund (User Financed Debt Service)

50,597,000

Maximum Effort School Loan Fund

4,000,000

State Transportation Fund

82,500,000

APPROPRIATIONS

Sec. 2. UNIVERSITY OF MINNESOTA

Subdivision 1. To the Board of Regents of the University of Minnesota for the purposes specified in this section

121,333,000

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

30,000,000

For the purposes under Minnesota Statutes, section 135A.046, for use systemwide.

Subd. 3. Duluth Campus Labovitz School of Business

15,333,000

To construct, furnish, and equip a new building for the Labovitz School of Business and Economics to include classrooms, offices, teaching laboratories, student services, administrative support services, and utility upgrades.

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APPROPRIATIONS

Subd. 4. Twin Cities Campus

(a) Carlson School of Management

26,600,000

To design and construct a new facility to include classrooms, teaching laboratories, student services, administrative support services, and office space for the Department of Economics.

(b) Medical Biosciences Building Phase 1 and utility upgrade

40,000,000

To design and construct a new medical biosciences building to include research laboratories, lab support facilities, faculty offices, and support services. Necessary utility upgrades are included.

4,100,000

To design and construct a new classroom and student services center to include science demonstration classrooms and university-wide student services. Demolition of the Science Classroom Building is included.

Subd. 5. University Research Centers

(a) Cedar Creek Natural History Area, East Bethel

500,000

To construct new housing for students and faculty, including visiting faculty and researchers.

(b) Cloquet Forestry Center Classroom Addition

500,000

To design and construct an addition to the administration building for offices, expanded classrooms, and educational support services. Included are HVAC upgrades.

(1) To design and construct an addition to the Administration Building for increased educational and office space

1,800,000

(2) To construct, furnish, and equip a facility for the wind energy to hydrogen to anhydrous ammonia pilot project

2,500,000

Subd. 6. Land Transfer; Dakota County Technical College

Appropriations under this section are not available until the commissioner of finance has determined that the Board of Regents has transferred to the state of Minnesota, for the Board of Trustees

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APPROPRIATIONS

of Minnesota State Colleges and Universities, the 105-acre parcel of land adjacent to the Dakota Technical College that is currently used for the decision driving course.

Subd. 7. University Share

Except for Higher Education Asset Preservation and Replacement (HEAPR) under subdivision 2, the appropriations in this section are intended to cover approximately two-thirds of the cost of each project. The remaining costs must be paid from university sources.

Subd. 8. Unspent Appropriations

Upon substantial completion of a project authorized in this section and after written notice to the commissioner of finance, the Board of Regents must use any money remaining in the appropriation for that project for HEAPR under Minnesota Statutes, section 135A.046. The Board of Regents must report by February 1 of each even-numbered year to the chairs of the house and senate committees with jurisdiction over capital investments and higher education finance, and to the chairs of the house Ways and Means Committee and the senate Finance Committee, on how the remaining money has been allocated or spent.

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

187,690,000

Subdivision 1. To the Board of Trustees of the Minnesota State Colleges and Universities for the purposes specified in this section.

Subd. 2. Higher Education Asset Preservation and Replacement

40,000,000

This appropriation is for the purposes specified in Minnesota Statutes, section 135A.046, including safety and statutory compliance, envelope integrity, mechanical systems, and space renovation.

Subd. 3. Bemidji State University Sattgast Science Hall Design

700,000

To design an addition to and renovation of Sattgast Science Hall.

Subd. 4. Century College Science and Library Building

19,900,000

To construct, furnish, and equip a new science instruction and learning resource center building on the east campus in Phase 1.

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APPROPRIATIONS

Subd. 5. Fond du Lac Tribal and Community College Library and Cultural Center Addition

12,390,000

To construct, furnish, and equip an addition and a renovation for a library and learning resource center, and an addition for law enforcement, nursing education, cultural center, and related spaces.

Subd. 6. Inver Hills Community College Fine Arts Building Addition

700,000

To design a classroom addition to and renovation of the Fine Arts building.

Subd. 7. Lake Superior College

840,000

To design a two-phased project to construct a health and science center addition and to renovate existing spaces.

Subd. 8. Minneapolis Community and Technical College Science and Health Renovation

18,874,000

To complete the design of and to renovate, furnish, and equip spaces for science, nursing, and allied healthcare programs to include classrooms, laboratories, and ancillary spaces, in cooperation with Metropolitan State University. To renovate, furnish, and equip science laboratories in Kopp Hall for general classroom instruction.

Subd. 9. Minnesota State College - Southeast Technical, Red Wing Library and Student Services Renovation

4,855,000

To complete design, and to renovate, furnish, and equip spaces for library, learning resource center, information technology, student services and commons, bookstore, administration, music instrument repair, and allied health classrooms and laboratories, and to construct an entryway addition.

Subd. 10. Minnesota State University, Mankato, Trafton Hall Addition

32,900,000

To construct, furnish, and equip an addition for classrooms, science laboratories, and related offices, and to renovate, furnish, and equip Trafton Hall North in Phase 1. University funds may be added to this appropriation up to a total cost of $33,250,000.

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APPROPRIATIONS

Subd. 11. Minnesota State University, Moorhead

(1) MacLean Hall renovation

9,680,000

To renovate, furnish, and equip MacLean Hall for classrooms, laboratories, and related offices, and construct a new exterior stairwell.

(b) Lommen Hall

600,000

To design the renovation of Lommen Hall.

Subd. 12. Normandale Community College Classroom Addition and Renovation

5,125,000

To design, construct, renovate, furnish, and equip a Phase 1 classroom addition and renovation and to design a Phase 2 classroom addition and renovation.

Subd. 13. North Hennepin Community College

700,000

To design a Business and Technology Building addition and the renovation of the Career and Continuing Education Building.

Subd. 14. Northland Community and Technical College at East Grand Forks

600,000

To design a nursing addition and renovation of spaces for allied health laboratories, library, learning resource center, student commons, bookstore, classrooms, ancillary spaces, and boiler system expansion.

Subd. 15. St. Cloud State University

(a) Robert A. Wick Science Building

14,000,000

To construct, furnish, and equip an addition and renovation for classrooms, science laboratories, and related offices in Phase 1.

(b) Riverview Hall Renovation

4,500,000

To renovate, furnish, and equip Riverview Hall for general and technology-enhanced classrooms and ancillary spaces.

Subd. 16. St. Paul College Applied Science Renovation Design

3,000,000

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APPROPRIATIONS

To design the renovation of classrooms, applied technology, and trades laboratories on the ground floor, and an addition to the mechanics shop and to design and construct replacement of the main campus electrical distribution system in Phase 1.

Subd. 17. Systemwide Initiatives

(a) Demolition

1,600,000

To demolish obsolete buildings or portions of buildings on campuses statewide. The board need not pay debt service for the appropriation in this subdivision.

(b) Science labs and workforce initiatives

5,140,000

To renovate, furnish, and equip teaching laboratories and classrooms for science and applied technology at campuses statewide. Campuses may use nonstate funds to increase the size of the projects.

Subd. 18. Winona State University

(a) Maxwell Hall renovation

11,186,000

To design, renovate, furnish, and equip Maxwell Hall for classrooms, offices, a National Child Protection Center and related spaces and to design, renovate, furnish, and equip vacated spaces in Somsen, Phelps, and Gildemeister Halls.

(b) Memorial Hall Design

400,000

To design an addition to Memorial Hall and renovation of vacated spaces at Gildemeister Hall. The board may use nonstate funds for the remainder of the cost of the design up to a total cost of $785,000.

Subd. 19. Debt Service

The board shall pay the debt service on one-third of the principal amount of state bonds sold to finance projects authorized by this section, except for subdivisions 2 and 18, paragraph (b), and except that, where a nonstate match is required, the debt service is due on a principal amount equal to one-third of the total project cost, less the match committed before the bonds are sold. After each sale of general obligation bonds, the commissioner of finance shall notify the board of the amounts assessed for each year of the life of the bonds.

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APPROPRIATIONS

Subd. 20. Unspent Appropriations

(a) Upon substantial completion of a project authorized in this section and after written notice to the commissioner of finance, the Board of Trustees must use any money remaining in the appropriation for that project for HEAPR under Minnesota Statutes, section 135A.046. The Board of Trustees must report by February 1 of each even-numbered year to the chairs of the house and senate committees with jurisdiction over capital investments and higher education finance, and to the chairs of the house Ways and Means Committee and the senate Finance Committee, on how the remaining money has been allocated or spent.

(b) The unspent portion of an appropriation for a project in this section that is complete, is available for higher education asset preservation and replacement under this subdivision, at the same campus as the project for which the original appropriation was made and the debt service requirement under subdivision 19 is reduced accordingly. Minnesota Statutes, section 16A.642, applies from the date of the original appropriation to the unspent amount transferred.

Sec. 4. PERPICH CENTER FOR ARTS EDUCATION

1,051,000

To the commissioner of administration for campus asset preservation at the Perpich Center for Arts Education, including sewer line replacement, air conditioning, reroofing of the east half of the main school building, and sidewalk and paving improvements, to be spent in accordance with Minnesota Statutes, section 16B.307.

Sec. 5. MINNESOTA DEPARTMENT OF EDUCATION

16,000,000

Subdivision 1. To the commissioner of education for the purposes specified in this section.

Subd. 2. Nett Lake Maximum Effort Capital Loan

4,000,000

For a capital loan to Independent School District No. 707, Nett Lake, as provided in Minnesota Statutes, sections 126C.60 to 126C.72. It is the intent of the legislature that this appropriation fully completes the funding for construction and renovation costs and related improvements to the district's kindergarten through grade 6 facilities. This appropriation must be spent on educationally related facilities and must not be used for community facilities or other noneducational purposes.

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APPROPRIATIONS

Subd. 3. Library Accessibility and Improvement Grants

2,000,000

For library accessibility and improvement grants according to Minnesota Statutes, section 134.45.

Subd. 4. MacPhail Center for Music

5,000,000

(a) For a grant to the city of Minneapolis to predesign, design, construct, furnish, and equip a new facility for the MacPhail Center for Music. The city of Minneapolis may enter into a lease or management agreement to operate the center, subject to Minnesota Statutes, section 16A.695. This appropriation shall not be available until the city of Minneapolis has determined that not less than $16,000,000 has been committed to the MacPhail Center for Music from nonstate sources, and that the available funds are sufficient to complete a functional facility. "Nonstate sources," for purposes of this project, means a source other than a direct state appropriation for construction of this facility and may include loan funds. Funds secured prior to the date of enactment are eligible to count toward the required commitment of nonstate sources, provided they are used for qualified capital expenditures. Any land acquisition cost paid by the MacPhail Center For Music shall qualify as a capital expenditure.

(b) The city of Minneapolis may provide funds to predesign, design, construct, furnish, and equip a center for music education, including classrooms and a recital hall in the city of Minneapolis, to provide a facility for education of students, music therapy programs for persons with disabilities, music teacher training opportunities, curriculum and program development, and to provide such programming in public and private schools and in partnership with other organizations throughout the state.

Subd. 5. Cooperative Facilities Grants

5,000,000

For cooperative facilities grants to qualifying school districts under Minnesota Statutes, sections 123A.441 to 123A.446.

Sec. 6. MINNESOTA STATE ACADEMIES

2,509,000

For asset preservation on both campuses of the academies, to be spent in accordance with Minnesota Statutes, section 16B.307.

Sec. 7. NATURAL RESOURCES

Subdivision 1. To the commissioner of natural resources for the purposes specified in this section

100,951,000

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APPROPRIATIONS

Subd. 2. Flood Hazard Mitigation Grants

19,230,000

For the state share of flood hazard mitigation grants for publicly owned capital improvements to prevent or alleviate flood damage under Minnesota Statutes, section 103F.161. The commissioner shall determine project priorities as appropriate, based on need. This appropriation includes money for the following projects:

(a) Austin

(b) Albert Lea

(d) Canisteo Mine

(e) Delano

(f) East Grand Forks

(g) Golden Valley

(h) Grand Marais Creek

(i) Granite Falls

(j) Inver Grove Heights

(k) Manston Slough

(l) Oakport Township

(m) Riverton Township

(n) Shell Rock Watershed District

(o) St. Vincent

(p) Wild Rice River Watershed District

For any project listed in this subdivision that is not ready to proceed or does not expend all the money allocated to it, the commissioner may allocate that project's money to a project on the commissioner's priority list.

To the extent that the cost of a project in Ada, Crookston, East Grand Forks, Granite Falls, Oakport Township, St. Vincent, Breckenridge, Dawson, Montevideo, Roseau, or Warren exceeds

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APPROPRIATIONS

two percent of the median household income in the municipality multiplied by the number of households in the municipality, this appropriation is also for the local share of the project. The local share for the St. Vincent dike may not exceed $30,000.

$100,000 of this appropriation is for the state share of a flood hazard mitigation grant under Minnesota Statutes, section 103F.161, to the city of St. Vincent in Kittson County to predesign renovation of the existing dike on the Red River of the North to a condition sufficient to earn certification from the U.S. Army Corps of Engineers that the dike will protect the city from a 100-year flood.

Subd. 3. Dam Repair, Reconstruction, and Removal

3,000,000

To repair, reconstruct, or remove publicly owned dams according to Minnesota Statutes, sections 103G.511 and 103G.515.

Of this amount, $250,000 is for a grant to the city of Kenyon for the Kenyon embankment removal project.

Subd. 4. Wildlife Area Land Acquisition and Improvement

18,000,000

To acquire and improve land for wildlife management area purposes under Minnesota Statutes, section 86A.05, subdivision 8.

Subd. 5. Large Scale Forest Conservation Easements

8,000,000

To acquire conservation easements as described under Minnesota Statutes, chapter 84C, on private forest lands. The conservation easements must guarantee public access, including hunting and fishing.

Subd. 6. State Park Infrastructure Rehabilitation and Natural Resource Restoration

3,000,000

For infrastructure rehabilitation and natural resource restoration projects within state parks established under Minnesota Statutes, section 85.012, and state recreation areas established under Minnesota Statutes, section 85.013.

Of this amount, $50,000 is for electrical, sewer, and water hookups at Monson Lake State Park.

Subd. 7. State Park Building Construction and Rehabilitation

3,000,000

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APPROPRIATIONS

To construct a visitor center at Grand Portage State Park, and to renovate buildings in state parks and state recreation areas in accordance with a management plan required in Minnesota Statutes, chapter 86A.

Subd. 8. Fisheries Acquisition and Improvement

4,000,000

To acquire land and interests in land for aquatic management areas and to make public improvements and betterments of a capital nature to aquatic management areas established under Minnesota Statutes, section 86A.05, subdivision 14.

Subd. 9. State Land Reforestation

4,000,000

For reforestation activities under Minnesota Statutes, section 89.002, subdivision 2, including planting, seeding, site preparation, and purchasing tree seeds and seedlings.

Subd. 10. State Forest Land Acquisition

2,000,000

To acquire private lands within state forests established under Minnesota Statutes, section 89.021.

Subd. 11. State Park and Recreation Area Acquisition

3,000,000

To acquire high priority private lands within state parks established under Minnesota Statutes, section 85.012, and state recreation areas established under Minnesota Statutes, section 85.013.

Subd. 12. Scientific and Natural Area Acquisition and Development

3,000,000

To acquire land for scientific and natural areas and for protection and improvements of a capital nature to scientific and natural areas under Minnesota Statutes, section 84.033.

Subd. 13. Water Access Acquisition and Betterment of Fishing Piers

3,000,000

For public water access acquisition, renovation, and construction projects of a capital nature on lakes and rivers, including water access through the provision of fishing piers and shoreline access under Minnesota Statutes, section 86A.05, subdivision 9.

Subd. 14. State Trail Acquisition, Rehabilitation, and Repair

9,511,000

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APPROPRIATIONS

To acquire land for and to construct and renovate state trails under Minnesota Statutes, section 85.015.

(a) Of this amount:

(1) $300,000 is for the Preston to Forestville State Park segment of the Blufflands Trail System;

(2) $100,000 is for the Root River segment of the Blufflands Trail System;

(3) $500,000 is for the Casey Jones Trail;

(4) $400,000 is for the Cuyuna Trail;

(5) $750,000 is for the Gateway Trail;

(6) $1,185,000 is for the Gitchi Gami Trail;

(7) $1,000,000 is for the Glacial Lakes Trail;

(8) $500,000 is for the Goodhue Pioneer Trail;

(9) $1,800,000 is for the Mill Towns Trail;

(10) $226,000 is for the Minnesota River Trail at Big Stone;

(11) $750,000 is for the Shooting Star Trail.

(b) $2,000,000 is for the rehabilitation of state trails.

(c) For any project listed in this subdivision that is not ready to proceed, the commissioner may allocate that project's money to another state trail project identified in this subdivision. The chairs of the house and senate committees with jurisdiction over environment and natural resources and legislators from the affected legislative districts must be notified of any changes.

Subd. 15. Trail Connections

1,210,000

For matching grants under Minnesota Statutes, section 85.019, subdivision 4c.

$950,000 is for a grant to the St. Louis and Lake Counties Regional Railroad Authority for land acquisition, engineering, construction, furnishing, and equipping of a 19-mile "Boundary Waters Connection" of the Mesabi Trail from Bearhead State Park to the International Wolf Center in Ely. This appropriation is contingent upon a matching contribution of $950,000 from other sources, public or private.

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APPROPRIATIONS

$260,000 is to provide the state match for the cost of the Soo Line Multiuse Recreational Bridge project over marked Trunk Highway 169 in Mille Lacs County.

Subd. 16. Lake Superior Safe Harbors

2,000,000

To design and construct capital improvements to public accesses and small craft harbors on Lake Superior in cooperation with the U.S. Army Corps of Engineers.

Notwithstanding the match requirements in Laws 1998, chapter 404, section 7, subdivision 24, and Laws 2000, chapter 492, article 1, section 7, subdivision 21, the commissioner may proceed with the Two Harbors project upon securing an agreement with the U.S. Army Corps of Engineers that commits federal expenditures of at least $4,000,000 to the project.

Subd. 17. Stream Protection and Restoration

2,000,000

For the design and construction of stream protection and restoration projects.

Subd. 18. Local Initiatives Grants

2,000,000

(1) for grants to units of government to acquire and better natural and scenic areas under Minnesota Statutes, section 85.019, subdivision 4a;

(2) for grants to units of government to acquire land and design, construct, and redevelop outdoor recreation areas under Minnesota Statutes, section 85.019, subdivision 2; and

(3) for grants to local units of government and public regional parks organizations located outside the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, to acquire and better land for regional parks, trails, and open space.

Improvements must be of a capital nature. Each $3 of state grants must be matched by $2 of nonstate funds under clause (3).

Subd. 19. Native Prairie Bank Easements and Development

1,000,000

To acquire native prairie bank easements under Minnesota Statutes, section 84.96, and to develop and restore certain tracts of prairie bank lands for which the easements are permanent.

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APPROPRIATIONS

Subd. 20. Water Control Structures

1,000,000

For the rehabilitation or replacement of water control structures used to manage shallow lakes and wetlands for waterfowl habitat on wildlife management areas under Minnesota Statutes, section 86A.05, subdivision 8.

Subd. 21. Fish Hatchery Improvements

1,000,000

For improvements of a capital nature to renovate fish culture facilities at hatcheries owned by the state and operated by the commissioner of natural resources under Minnesota Statutes, section 97A.045, subdivision 1.

Subd. 22. Statewide Asset Preservation

2,000,000

For the renovation of state-owned facilities operated by the commissioner of natural resources, to be spent in accordance with Minnesota Statutes, section 16B.307. The commissioner may use this appropriation to replace buildings if that is the most cost-effective method of renovation.

Subd. 23. Buyout Trust Fund Lands

1,000,000

To acquire under Minnesota Statutes, section 92.121, permanent school trust lands located within the boundaries of state parks, wildlife management areas, and state recreation areas.

Subd. 24. Forest Roads and Bridges

1,500,000

For reconstruction, resurfacing, replacement, and construction of state forest roads and bridges under Minnesota Statutes, section 89.002.

Subd. 25. Off-road Vehicle Recreation Area

1,500,000

To acquire land for and construct a public off-road vehicle recreation area under Minnesota Statutes, section 86A.05, subdivision 3. Debt service on the bonds sold to acquire the off-road vehicle recreation area is annually appropriated and must be paid from the off-road vehicle account in the natural resources fund to the commissioner of finance as required by Minnesota Statutes, section 16A.643.

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APPROPRIATIONS

Subd. 26. State Park Camper Cabins

2,000,000

To construct camper cabins and upgrade infrastructure for the cabins in state parks under Minnesota Statutes, section 85.012, and state recreation areas under Minnesota Statutes, section 85.013.

Of this amount, $150,000 is for camper cabins at Glacial Lakes State Park and $150,000 is for camper cabins at Sibley State Park.

Sec. 8. POLLUTION CONTROL AGENCY

Subdivision 1. To the Pollution Control Agency for the purposes specified in this section

15,800,000

Subd. 2. Closed Landfill Program

10,800,000

To design and construct remedial systems and acquire land at landfills throughout the state in accordance with the closed landfill program under Minnesota Statutes, section 115B.39.

Of this amount:

(a) $3,650,000 is for a grant to the city of Albert Lea to construct a remediation system to clean up the soil and groundwater contamination in the North Edgewater Park, formerly the Albert Lea dump;

(b) $7,150,000 is for a grant to the Western Lake Superior Sanitary District, established under Minnesota Statutes, chapter 458D, to design and construct an active gas extraction system and new landfill cover for a landfill gas-to-energy system.

Subd. 3. Capital Assistance Program

5,000,000

For the solid waste capital assistance grants program under Minnesota Statutes, section 115A.54. Of this amount:

(a) $3,000,000 is for a grant to the city of Perham to design, construct, furnish, and equip a resource recovery facility in the city of Perham. This appropriation is not available until the commissioner determines that at least an equal amount has been committed to the project from nonstate sources;

(b) $2,000,000 is for a grant to Olmsted County to upgrade and expand capacity of the county's municipal solid waste combustor serving Dodge and Olmsted Counties by designing, constructing, furnishing, and equipping a third combustion unit to provide energy to an existing city-county district energy system.

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APPROPRIATIONS

Sec. 9. BOARD OF WATER AND SOIL RESOURCES

Subdivision 1. To the Board of Water and Soil Resources for the purposes specified in this section

9,200,000

Subd. 2. RIM and CREP Conservation Easements

2,700,000

This appropriation is to acquire conservation easements from landowners on marginal lands to protect soil and water quality and to support fish and wildlife habitat as provided in Minnesota Statutes, section 103F.515. This appropriation must not be used for implementation.

Subd. 3. Wetland Replacement Due to Public Road Projects

3,500,000

To acquire land for wetlands or restore wetlands to be used to replace wetlands drained or filled as a result of the repair, maintenance, or rehabilitation of existing public roads, as required by Minnesota Statutes, section 103G.222, subdivision 1, paragraphs (k) and (l).

This appropriation must not be used for implementation.

The purchase price paid for acquisition of land, fee, or perpetual easement must be the fair market value as determined by the board. The board may enter into agreements with the federal government, other state agencies, political subdivisions, and nonprofit organizations or fee owners to acquire land and restore and create wetlands and to acquire existing wetland banking credits. Acquisition of or the conveyance of land may be in the name of the political subdivision.

Subd. 4. Streambank, Lakeshore Erosion Control

2,500,000

For grants to soil and water conservation districts for streambank, stream channel, lakeshore, and roadside protection and restoration projects through the state cost-share program under Minnesota Statutes, section 103C.501.

Subd. 5. Area II

500,000

For grants to assist local governments in Area II of the Minnesota River Basin to acquire, design, and construct floodwater retention systems. The grants are not available until the board determines that $1 has been committed to the project from nonstate sources for every $3 of state grant.

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APPROPRIATIONS

Sec. 10. AGRICULTURE

1,500,000

To the commissioner of administration to construct, furnish, and equip a biosafety level 3 agriculture laboratory in the Agriculture and Health Joint Laboratory facility in St. Paul.

Sec. 11. MINNESOTA ZOOLOGICAL GARDEN

9,000,000

Subdivision 1. To the Minnesota Zoological Garden for the purposes in this section.

Subd. 2. Asset Preservation

8,000,000

For capital asset preservation improvements and betterments, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Master Plan

1,000,000

For implementation of the 2001 Master Plan.

Sec. 12. ADMINISTRATION

Subdivision 1. To the commissioner of administration for the purposes specified in this section

10,912,000

Subd. 2. Capital Asset Preservation and Replacement Account (CAPRA)

5,000,000

To be spent in accordance with Minnesota Statutes, section 16A.632.

Subd. 3. Asset Preservation

5,862,000

For asset preservation projects in properties managed by the commissioner. This appropriation must be spent in accordance with Minnesota Statutes, section 16B.307.

Of this amount, $150,000 is to restore and renovate the Minnesota Peace Officers Memorial on the Capitol grounds in St. Paul.

Subd. 4. Workers Memorial

50,000

To design and construct a workers memorial on the Capitol grounds in St. Paul.

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APPROPRIATIONS

Sec. 13. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD

Capitol Building

1,800,000

To renovate the dome and rotunda of the Capitol Building.

Sec. 14. MILITARY AFFAIRS

8,629,000

Subdivision 1. To the adjutant general for the purposes specified in this section

Subd. 2. Asset Preservation

5,200,000

For asset preservation improvements and betterments of a capital nature at military affairs facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Facility Life Safety Improvements

1,000,000

For life/safety improvements and to correct code deficiencies at military affairs facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 4. Lead Abatement and Range Conversion

1,029,000

For lead abatement and to design, construct, furnish, and equip the current indoor firing ranges in ten National Guard Training/ Community Centers for storage space, classrooms, and office space. This appropriation may be used at Training/Community Centers located in the cities of: Albert Lea, Bloomington, Brainerd, Duluth, Jackson, Montevideo, Moorhead, Rochester, Rosemount, and St. Peter.

Subd. 5. Facility ADA Compliance

1,400,000

For Americans with Disabilities Act (ADA) alterations to existing National Guard Training/Community Centers in locations throughout the state, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 6. Unspent Appropriations

The unspent portion of an appropriation for a project in this section that has been completed may be used for any other purpose authorized in this section.

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APPROPRIATIONS

Sec. 15. TRANSPORTATION

Subdivision 1. To the commissioner of transportation for the purposes specified in this section

144,500,000

Subd. 2. Local Bridge Replacement and Rehabilitation

60,000,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50, to match federal money and to replace or rehabilitate local deficient bridges.

Political subdivisions may use grants made under this section to construct or reconstruct bridges, including:

(1) matching federal-aid grants to construct or reconstruct key bridges;

(2) paying the costs of preliminary engineering and environmental studies authorized under Minnesota Statutes, section 174.50, subdivision 6a;

(3) paying the costs to abandon an existing bridge that is deficient and in need of replacement, but where no replacement will be made; and

(4) paying the costs to construct a road or street to facilitate the abandonment of an existing bridge determined by the commissioner to be deficient, if the commissioner determines that construction of the road or street is more cost efficient than the replacement of the existing bridge.

Subd. 3. Local Road Improvement Program

22,500,000

This appropriation is from the bond proceeds account in the state transportation fund as provided in Minnesota Statutes, section 174.50.

$11,250,000 is for construction and reconstruction of local roads with statewide or regional significance under Minnesota Statutes, section 174.52, subdivision 4.

$11,250,000 is for grants to counties to assist in paying the costs of capital improvement projects on county state-aid highways under Minnesota Statutes, section 174.52, subdivision 4a.

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APPROPRIATIONS

Subd. 4. Northstar Commuter Rail

50,000,000

To construct, furnish, and equip the Northstar commuter rail line serving Big Lake to downtown Minneapolis and to construct, furnish, and equip the extension of the Hiawatha light rail transit line from its terminus in downtown Minneapolis to a new terminus near Fifth Avenue North adjacent to the proposed downtown Minneapolis commuter rail station. This appropriation is not available until a full-funding grant agreement has been executed with the Federal Transit Administration. If the Northstar commuter rail line is extended from Big Lake to the St. Cloud area, regional rail authority members of the Northstar Corridor Development Authority who did not fund a portion of the share of capital costs from Minneapolis to Big Lake shall contribute an amount for the extension equal to the amount they would have contributed for their proportional share of the entire line from Minneapolis to the St. Cloud area.

Subd. 5. Rail Service Improvement

5,000,000

For transfer to the rail service improvement account under Minnesota Statutes, section 222.49. Of this amount:

(a) $700,000 is for a grant to the McLeod County Railroad Authority to acquire land for and to design and construct a railroad switching yard facility in Glencoe. This appropriation is not available until the commissioner determines that funds sufficient to complete the project are committed to the project from nonstate sources.

(b) $1,000,000 is for a grant to the Minnesota Valley Regional Rail Authority to rehabilitate up to 33 miles of railroad track from Gibbon to Norwood-Young America. The commissioner may not make the grant until the commissioner has determined that the authority has obtained a commitment for at least $500,000 in federal funds for the project. A grant under this section is in addition to any grant, loan, or loan guarantee for this project made by the commissioner under Minnesota Statutes, sections 222.46 to 222.62.

Subd. 6. Port Development Assistance

5,000,000

For grants under Minnesota Statutes, chapter 457A. Any improvements made with the proceeds of these grants must be publicly owned.

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APPROPRIATIONS

Subd. 7. Greater Minnesota Transit

2,000,000

For capital assistance for greater Minnesota transit systems to be used for transit capital facilities under Minnesota Statutes, section 174.24, subdivision 3c. Money from this appropriation may be used to pay up to 80 percent of the nonfederal share of these facilities.

Sec. 16. METROPOLITAN COUNCIL

Subdivision 1. To the Metropolitan Council for the purposes specified in this section

20,991,000

Subd. 2. I-35W Bus Rapid Transit (BRT)

8,300,000

$3,300,000 of this appropriation is for design, preliminary engineering, and construction of passenger facilities for a Bus Rapid Transit station at 46th Street and Interstate 35W.

$5,000,000 of this appropriation may be used to fund portions of the design, preliminary engineering, land acquisition, and construction of three park and ride facilities south of Interstate 494 to serve Bus Rapid Transit on Interstate 35W and Interstate 35. The park and ride facility locations are near Interstate 35W and 82nd Street and Interstate 35W and 98th Street in the city of Bloomington, and near Interstate 35 and County Road 46 in the city of Lakeville. The Metropolitan Council is not required to spend funds at all three sites.

Subd. 3. Central Corridor Transitway

2,500,000

For design, environmental studies, and preliminary engineering in the Central Corridor Transitway.

This appropriation may not be spent for capital improvements within a trunk highway right-of-way.

Subd. 4. Cedar Avenue Bus Rapid Transit (BRT)

5,000,000

For environmental studies, preliminary engineering, bus lane improvements, and transit station construction and improvements in the Cedar Avenue Bus Rapid Transit Corridor.

This appropriation may not be spent for capital improvements within a trunk highway right-of-way.

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APPROPRIATIONS

Subd. 5. Metropolitan Regional Parks Capital Improvements

5,191,000

For the cost of improvements and betterments of a capital nature and acquisition by the council and local government units of regional recreational open-space lands in accordance with the council's policy plan as provided in Minnesota Statutes, section 473.147. Priority must be given to park rehabilitation and land acquisition projects.

Of this amount, $191,000 is for a grant to the city of White Bear Lake to construct the Lake Avenue Regional Trail connecting the Highway 96 Regional Trail with Ramsey Beach.

Sec. 17. HUMAN SERVICES

Subdivision 1. To the commissioner of administration for the purposes specified in this section

57,821,000

Subd. 2. Moose Lake Sex Offender Treatment - Phase 1

41,321,000

To design, construct, furnish, and equip the first of two phases of additional residential, program, and ancillary service capacity for the Minnesota sex offender treatment program at Moose Lake to accommodate 400 additional patients.

Subd. 3. St. Peter Regional Treatment Center Program and Activity Building

2,500,000

To design, construct, furnish, and equip a new program and activity building on the lower campus of the St. Peter Regional Treatment Center for individuals committed as sexual psychopathic personalities, sexually dangerous persons, mentally ill, or mentally ill and dangerous.

Subd. 4. Statewide Security Upgrades

2,500,000

To provide security upgrades of a capital nature at Department of Human Services campuses statewide, including but not limited to: security fencing, control centers, electronic monitoring and perimeter security equipment, electrical distribution systems, and building security renovations.

Subd. 5. Systemwide Redevelopment, Reuse, or Demolition

7,000,000

To demolish surplus, nonfunctional, or deteriorated facilities and infrastructure or to renovate surplus, nonfunctional, or deteriorated facilities and infrastructure at Department of Human Services campuses statewide.

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APPROPRIATIONS

Subd. 6. Systemwide Roof Renovation and Replacement

1,500,000

For renovation and replacement of roofs at Department of Human Services facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 7. Systemwide Asset Preservation

3,000,000

For asset preservation improvements and betterments of a capital nature at Department of Human Services facilities statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Sec. 18. VETERANS HOMES BOARD

Subdivision 1. To the commissioner of administration for the purposes specified in this section

16,646,000

Subd. 2. Asset Preservation

6,000,000

For asset preservation improvements and betterments of a capital nature at veterans homes statewide, to be spent in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Fergus Falls Veterans Home

637,000

To design a 21-bed special care unit to treat individuals with Alzheimer's disease or dementia.

Subd. 4. Hastings Veterans Home Supportive Housing

6,953,000

To design, construct, furnish, and equip 30 units of permanent supportive housing for veterans with disabilities.

Subd. 5. Luverne Veterans Home

599,000

To complete the design, construction, furnishing, and equipping of an addition to the nursing care facility, to be used as an Alzheimer's/dementia program, dining, and wander area.

Subd. 6. Minneapolis Veterans Home

2,457,000

To upgrade the emergency power system to make it code compliant and add emergency power outlets to Building 17.

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APPROPRIATIONS

Sec. 19. CORRECTIONS

Subdivision 1. To the commissioner of administration for the purposes specified in this section

43,679,000

Subd. 2. Asset Preservation

7,000,000

For improvements and betterments of a capital nature at Minnesota correctional facilities statewide, in accordance with Minnesota Statutes, section 16B.307.

Subd. 3. Minnesota Correctional Facility - Faribault, Phase 2

3,000,000

To design, construct, furnish, and equip an expansion at the Minnesota Correctional Facility - Faribault, to include, but not be limited to, one new 416-bed, double-bunked, wet-celled lockable living unit; renovation of an existing living unit into a long-term care housing unit; additional programming space; and demolition of one vacated unit.

Subd. 4. Minnesota Correctional Facility - Lino Lakes Medical Building

2,494,000

To design, renovate, furnish, and equip the southeast portion of the B building to provide consolidated health, dental, and psychological services to offenders at the facility.

Subd. 5. Minnesota Correctional Facility - Red Wing Education Building

6,230,000

To design, construct, furnish, and equip a new vocational educational education building with a combined classroom and shop complex.

Subd. 6. Minnesota Correctional Facility - Shakopee, Facility expansion

5,375,000

To design, construct, furnish, and equip an addition to accommodate 92 beds.

Subd. 7. Minnesota Correctional Facility - Stillwater, Phase 2

19,580,000

To complete design, construct, furnish, and equip a new 150-bed segregation unit.

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APPROPRIATIONS

Sec. 20. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1. To the commissioner of employment and economic development or other named agency for the purposes specified in this section

125,304,000

Subd. 2. State Match for Federal Grants

38,800,000

(a) To the Public Facilities Authority:

(1) to match federal grants for the water pollution control revolving fund under Minnesota Statutes, section 446A.07; and

(2) to match federal grants for the drinking water revolving fund under Minnesota Statutes, section 446A.081.

(b) The expenditure and allocation of state matching money between funds described in paragraph (a), clauses (1) and (2), must ensure that the matching funds required for the drinking water revolving fund are available to match the 2007 and 2008 federal grants, with the balance to be made available to the water pollution control revolving fund.

Subd. 3. Wastewater Infrastructure Funding Program

23,000,000

(a) To the Public Facilities Authority for grants and loans to eligible municipalities under the wastewater infrastructure program established in Minnesota Statutes, section 446A.072.

To the greatest practical extent, the authority must use the appropriation for projects on the 2006 project priority list in priority order for qualified applicants that submit plans and specifications to the Pollution Control Agency or receive a funding commitment from USDA Rural Economic and Community Development by June 30, 2007, or for projects on the 2007 project priority list in priority order to qualified applicants that submit plans and specifications to the Pollution Control Agency or have received a funding commitment from USDA Rural Economic and Community Development by December 31, 2007.

(b) The grants listed in this paragraph are not subject to the 2006 and 2007 project priority lists, nor to the limitations on grant amounts set forth in Minnesota Statutes, section 446A.072, subdivision 5a.

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APPROPRIATIONS

Up to $6,500,000 of the appropriation in this subdivision is for corrective action on systems built since 2000 with federal USDA Rural Economic and Community Development funds or Small Cities Development program grant funding that are problematic or failing for the cities of: Wolf Lake, Donaldson, Strandquist, Nerstrand, Darfur, Spring Hill, Tamarack, and Palisade. A grant must not exceed the amount of federal money used in the project unless, upon consultation with the Minnesota Pollution Control Agency, the consulting engineers, and other reliable technical experts, the authority determines the best course of action to correct the problem would exceed that amount and that other grant funding is not available. Up to $500,000 is available for the cities of Dunnell, Dumont, Henriette, Lewisville, McGrath, and Ostrander to cover necessary and appropriate costs over and above the funds appropriated in Laws 2005, chapter 20, article 1, section 23, subdivision 3.

(c) $3,000,000 of the appropriation in this subdivision is for a grant to the city of Askov to acquire land for, and to design, construct, furnish, and equip a new wastewater treatment facility and sewer and water extensions in the city of Askov.

(d) $5,955,000 is for grants and loans to Lake Township in Roseau County for the following purposes:

(1) $4,000,000 is for a grant to design, construct, furnish, and equip wastewater treatment plants at three sites.

(2) $1,955,000 is for a loan from the water pollution control revolving fund established under Minnesota Statutes, section 446A.07, to design, construct, furnish, and equip wastewater treatment plants at three sites.

Of the combined grant and loan amounts in clauses (1) and (2), $2,820,000 is for the wastewater treatment system at Northern Lights Mobile Home Park and Warroad Estates, $1,524,000 is for the wastewater treatment system at Springsteel Island, and $1,611,000 is for the wastewater treatment system at Lakewood Mobile Home Park. The Public Facilities Authority shall have discretion to allocate grant and loan amounts among these three projects consistent with this provision.

Subd. 4. Greater Minnesota Business Development Infrastructure Grant Program

15,800,000

For grants under Minnesota Statutes, section 116J.431.

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APPROPRIATIONS

Of this amount, $250,000 is for a grant to Polk County to build approximately one mile of ten-ton road to provide access to a new ethanol plant outside of the city of Erskine.

Of this amount, $1,400,000 is for a grant to the city of LaCrescent for public infrastructure made necessary by the reconstruction of a highway and a bridge.

Subd. 5. Redevelopment Account

15,000,000

For purposes of the redevelopment account under Minnesota Statutes, section 116J.571.

Subd. 6. Bioscience Business Development Public Infrastructure Grant Program

16,700,000

For purposes of the Minnesota bioscience business development public infrastructure grant program under Minnesota Statutes, section 116J.435. Of this amount:

(a) $8,000,000 is for a grant to the city of Rochester for public infrastructure improvements for a Bioscience Development Center in the city of Rochester.

(b) $3,700,000 is for a grant to the city of St. Paul to predesign, design, construct, furnish, and equip transportation, development, and redevelopment infrastructure required to support bioscience development in the St. Paul Bioscience Corridor.

(c) $5,000,000 is for grants to political subdivisions to predesign, design, construct, furnish, and equip publicly owned infrastructure required to support bioscience development in Minnesota outside of the counties of Anoka, Carver, Dakota, Hennepin, Olmsted, Ramsey, Scott, and Washington.

Subd. 7. Workforce Center Renovations

1,004,000

For renovation of the Workforce Center in North Minneapolis. Renovations include exterior sheathing, mold remediation, electrical service upgrades, window replacement, overhead sprinklers, alley drainage, ADA compliance costs, and other costs necessary to repair water damage.

Subd. 8. Total Maximum Daily Load (TMDL) Grants

3,000,000

To the Public Facilities Authority for total maximum daily load grants under Minnesota Statutes, section 446A.073.

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APPROPRIATIONS

Subd. 9. Clean Water Legacy

12,000,000

To the Public Facilities Authority for the purposes specified in this subdivision.

(a) $7,000,000 is for the phosphorus reduction grant program for grants under Minnesota Statutes, section 446A.074. A grant must not exceed $500,000 per project.

(b) $1,000,000 is for the small community wastewater treatment fund for loans and grants under Minnesota Statutes, section 446A.075.

(c) $4,000,000 is for the water pollution control revolving fund under Minnesota Statutes, section 446A.07, for wastewater treatment and stormwater projects.

Sec. 21. HOUSING FINANCE AGENCY

Subdivision 1. To the commissioner of the Housing Finance Agency for the purposes specified in this section

8,000,000

Subd. 2. Transitional housing

4,000,000

For loans or grants for publicly owned temporary or transitional housing under Minnesota Statutes, section 462A.201, subdivision 2.

Subd. 3. Supportive Housing for Long-term Homeless

4,000,000

For loans and grants for publicly owned permanent rental housing under Minnesota Statutes, section 462A.202, subdivision 3a, for persons who either have been without a permanent residence for at least 12 months or on at least four occasions in the last three years, or who are at significant risk of lacking a permanent residence for at least 12 months or on at least four occasions in the last three years. The housing must provide or coordinate with linkages to services necessary for residents to maintain housing stability and maximize opportunities for education and employment.

Sec. 22. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. To the Minnesota Historical Society for the purposes specified in this section

5,572,000

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APPROPRIATIONS

Subd. 2. Historic Sites Asset Preservation

4,000,000

For capital improvements and betterments at state historic sites, buildings, landscaping at historic buildings, exhibits, markers, and monuments, to be spent in accordance with Minnesota Statutes, section 16B.307. The society shall determine project priorities, as appropriate, based on need.

Subd. 3. County and Local Preservation Grants

1,000,000

To be allocated to county and local jurisdictions as matching money for historic preservation projects of a capital nature. Grant recipients must be public entities and must match state funds on at least an equal basis. The facilities must be publicly owned.

Subd. 4. Minnesota History Center Visitor Services Upgrades

572,000

For security upgrades and facility renovations in the library and for electrical infrastructure upgrades.

Sec. 23. GRANTS TO POLITICAL SUBDIVISIONS

Subdivision 1. To the commissioner of the agency named in each subdivision for the purposes specified in this section

90,037,000

Subd. 2. Bemidji Regional Events Center

3,000,000

To the commissioner of employment and economic development for a grant to the city of Bemidji for predesign, design, and site development of a regional event center.

Subd. 3. Bloomington; Old Cedar Avenue Bridge

300,000

To the commissioner of natural resources for a grant to the city of Bloomington to renovate the old Cedar Avenue bridge to serve as a hiking and bicycling trail connection.

Subd. 4. Burnsville; Water Treatment Plant

3,000,000

To the Public Facilities Authority for a grant to the city of Burnsville to design, construct, furnish, and equip a water treatment facility to provide an additional potable water source for the city of Burnsville using water from the Burnsville quarry. This appropriation is not available until the commissioner of finance has determined that at least $6,000,000 is available in matching funds from nonstate sources. Amounts spent since January 1, 2002, to plan, design, and construct this project may be counted as part of the nonstate match.

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APPROPRIATIONS

Subd. 5. Central Iron Range Sanitary Sewer District Treatment Facilities

2,500,000

To the Public Facilities Authority to make a grant to the Central Iron Range Sanitary Sewer District to design, construct, and equip an expansion of wastewater treatment at Hibbing's South Wastewater Treatment Plant, mercury treatment facilities at the plant, and sanitary sewer lines to connect Hibbing, Chisholm, and Buhl to use the upgrades at the plant.

Subd. 6. Dakota County Public Safety Center

1,000,000

To the commissioner of public safety for a grant to Dakota County for environmental studies, engineering, land acquisition, and construction of a multijurisdictional public safety support center in Dakota County.

Subd. 7. Dakota County; Empire Wetlands

7,000,000

To the Metropolitan Council to acquire land for the Empire Wetlands Wildlife Area and Regional Park in Dakota County.

Subd. 8. Duluth Lake Superior Zoo

600,000

To the commissioner of employment and economic development for a grant to the city of Duluth to predesign, design, construct, furnish, and equip renovations to the polar bear exhibit at the Lake Superior Zoo. This appropriation is not available until the commissioner of finance determines that at least $200,000 is committed to the project from nonstate sources.

Subd. 9. Duluth Entertainment and Convention Center

3,000,000

To the commissioner of employment and economic development for a grant to the city of Duluth to design, construct, furnish, and equip an approximately 217,446-square-foot arena at the Duluth Entertainment and Convention Center. The arena must include an ice rink of at least 200 feet by 85 feet; trade show and concert space; seating capacity for at least 6,630 with suites, club seats, and concessions; state-of-the-art locker and training facilities; and accessible and expanded media space.

This appropriation is not available until the commissioner of finance has determined: (1) that at least an equal amount is committed to the project from nonstate sources, including an annual payment from the University of Minnesota, Duluth, of at least $455,000 for the life of the bonds issued by the city of Duluth for the project and an annual payment from the Duluth

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APPROPRIATIONS

Entertainment and Convention Center of at least $461,000 for the life of the bonds issued by the city of Duluth for the project; and (2) the University of Minnesota, Duluth, and the city of Duluth have entered into a lease agreement for the University's use of the arena for the life of the bonds issued by the city.

Subd. 10. Hennepin County, Lowry Avenue Corridor

5,000,000

To the commissioner of employment and economic development for a grant to Hennepin County for Phase II capital improvements to the Lowry Avenue corridor from Theodore Wirth Parkway to Girard Avenue in Minneapolis.

Subd. 11. Hennepin, Cedar Lakes Trail

1,800,000

To the commissioner of natural resources for a grant to Hennepin County to complete the Cedar Lakes Trail.

Subd. 12. Itasca Steel Mill DRI

9,000,000

To the commissioner of employment and economic development for a grant to Itasca County to acquire right-of-way and mitigate loss of wetlands and runoff of storm water, to predesign, design, construct, and equip roads and rail lines, and, in cooperation with a city and the city's public utility, to predesign, design, construct, and equip natural gas pipelines, water supply systems, and wastewater collection and treatment systems.

Subd. 13. Koochiching RECAP

2,500,000

To the commissioner of the Pollution Control Agency for a grant to Koochiching County to prepare a site for and to design, construct, and equip a plasma torch gasification facility that converts municipal solid waste into energy and slag, reducing the need to dispose of the waste in a landfill. The facility must be located in the city of International Falls.

This appropriation is not available until the commissioner has determined that at least an equal amount has been committed to the project from nonstate sources.

Subd. 14. Lewis and Clark Water System

3,317,000

To the Public Facilities Authority for grants to the city of Luverne, city of Worthington Public Utilities, Lincoln-Pipestone Rural Water System, and Rock County Rural Water System to acquire land, predesign, design, construct, furnish, and equip one or more water transmission and storage facilities to accommodate the connection with the Lewis and Clark Rural Water System, Inc., to serve southwestern Minnesota.

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APPROPRIATIONS

The grants must be awarded to projects approved by the Lewis and Clark Joint Powers Board.

This appropriation is available only to the extent matched by at least $1 of local money paid to the Lewis and Clark Rural Water System, Inc., for each $1 of state money to be used to reimburse costs incurred on eligible projects.

Subd. 15. Little Falls Zoo

400,000

To the commissioner of natural resources for a grant to the city of Little Falls in Morrison County to design and construct capital improvements at the Little Falls Zoo. The capital improvements made with this appropriation must support accreditation of the Little Falls Zoo by the American Association of Zoos and Aquariums, including at a minimum construction of a veterinary quarantine area.

This appropriation is not available until the commissioner has determined that at least an equal amount has been committed to the project from nonstate sources.

Subd. 16. Minnesota Shubert Center

11,000,000

To the commissioner of administration for a grant to the city of Minneapolis to construct, furnish, and equip an atrium to create the Minnesota Shubert Center. The city of Minneapolis may enter into a lease or management agreement to operate the center, subject to Minnesota Statutes, section 16A.695.

Subd. 17. Minneapolis Lake of the Isles

2,500,000

To the commissioner of employment and economic development to make a grant to the Minneapolis Park and Recreation Board to mitigate flooding at Lake of the Isles in the city of Minneapolis. Funds appropriated by this section must be used for shoreline stabilization and restoration, dredging, wetland replacement, and other infrastructure improvements necessary to deal with the 1997 flood damage and to prevent future flooding.

Subd. 18. Ramsey County, Union Depot

1,000,000

To the commissioner of employment and economic development for a grant to the Ramsey County Regional Railroad Authority to acquire land and structures, to refurbish structures, and to initiate planning, engineering, and environmental work to renovate the Union Depot for use as a multimodal transit center in St. Paul.

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APPROPRIATIONS

Subd. 19. Redwood Falls, Reservoir

800,000

To the commissioner of the Pollution Control Agency for a grant to the Redwood-Cottonwood Rivers control area, a joint powers entity, to predesign, design, construct, and equip the reservoir reclamation and enhancement of the 66-acre Lake Redwood Reservoir to increase its depth from 2.8 feet to 15 feet to remove 650,000 cubic yards of sediment, to attain compliance with both turbidity and fecal coliform impairments for the project area, and to secure renewable energy capacity of the hydroelectric dam which is impeded by lack of water capacity.

The appropriation is not available until the commissioner determines that an amount sufficient to complete the project has been committed to the project from nonstate sources. The nonstate portion will provide low-interest loans for 173 noncompliant septic systems that are imminent health threats and provide technical assistance to reduce phosphorus loading to the Redwood River to assist total maximum daily load (TMDL) compliance of the low-dissolved oxygen impairment on the lower Minnesota River.

Subd. 20. Rochester, Southeast Minnesota Regional Public Safety Training Center

1,700,000

To the commissioner of administration for a grant to the city of Rochester for Phase I of the Southeast Minnesota Regional Public Safety Training Center to construct a fire and police training tower, including a staging building, roadway, and utilities, adjacent to the existing National Guard facility located in Rochester.

The appropriation is not available until the commissioner determines that an equal amount has been committed to the project from nonstate sources.

Subd. 21. Roseville

500,000

To the commissioner of employment and economic development for a grant to the city of Roseville to predesign, design, construct, furnish, and equip the renovation of the John Rose Minnesota Oval.

Subd. 22. Scott County Public Safety Training Center

1,000,000

To the commissioner of public safety for a grant to Scott County to design, construct, furnish, and equip a regional public safety training facility to be located in Scott County.

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APPROPRIATIONS

Subd. 23. Southwest Regional Event Center

12,000,000

To the Board of Trustees of the Minnesota State Colleges and Universities to design, construct, furnish, and equip a multipurpose regional event center at Southwest Minnesota State University.

This appropriation is not available until the board determines that at least $5,000,000 has been committed to the project from private, nongovernmental sources.

Subd. 24. St. Paul Como Zoo

10,000,000

To the Metropolitan Council for a grant to the city of St. Paul to predesign, design, construct, furnish, equip, and redevelop infrastructure at the Como Zoo.

Subd. 25. St. Paul National Great River Park

2,500,000

To the commissioner of employment and economic development for a grant to the city of St. Paul to predesign, design, construct, furnish, and equip river park development and redevelopment infrastructure of the National Great River Park in St. Paul.

Subd. 26. Virginia Medical Helipad

750,000

To the commissioner of employment and economic development for a grant to the city of Virginia to design, construct, furnish, and equip an access elevator and a helipad to be located on the roof of the Virginia Regional Medical Center.

Subd. 27. Town of White, Road

400,000

To the commissioner of transportation for a grant to the town of White for: (1) the design and construction of a new paved road to provide access between the city of Aurora and the Giants Ridge recreational facilities and developments on Wynne and Sabin Lakes in the city of Biwabik and improve public safety and emergency response; and (2) the connection of two existing paved recreational trails and a designated snowmobile route between County Highway 138 and marked Trunk Highway 135.

This appropriations is not available until the commissioner determines that $288,000 has been committed to the project from nonstate sources.

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APPROPRIATIONS

Subd. 28. Hmong Veterans Statue

150,000

To the commissioner of veterans affairs to complete design and construction of a statue in the capitol area to honor the Hmong veterans of the war in Laos who were allied with American forces during the Vietnam War, pursuant to Laws 2003, chapter 69.

Subd. 29. Starbase Minnesota

150,000

To the adjutant general of the Department of Military Affairs for predesign and design of a new facility for the Starbase Minnesota program, subject to Minnesota Statutes, section 16A.695.

Subd. 30. Prairie Wetlands ELC

2,000,000

To the commissioner of natural resources for a grant under Minnesota Statutes, section 84.0875, to the city of Fergus Falls to predesign, design, construct, furnish, and equip the expansion of the Prairie Wetlands Environmental Learning Center.

Subd. 31. Otter Tail River Restoration

320,000

To the commissioner of natural resources for a grant to the city of Ottertail for design and construction of river restoration projects on the Otter Tail River. The appropriation is not available until the commissioner determines that $80,000 has been committed to the project from nonstate sources.

Subd. 32. Farmington Infrastructure

850,000

To the commissioner of employment and economic development for a grant to the city of Farmington for a new water main and sewer line to serve the proposed new Farmington high school. This appropriation is contingent upon the city of Farmington and the Farmington school district reaching a general agreement on the new high school by July 15, 2006. Each dollar of state money appropriated is available as the commissioner of finance determines that at least $2 of nonstate money is committed to the project, subject to Minnesota Statutes, section 16A.502.

Sec. 24. BOND SALE EXPENSES

945,000

To the commissioner of finance for bond sale expenses under Minnesota Statutes, section 16A.641, subdivision 8.

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Sec. 25. BOND SALE AUTHORIZATION.

Subdivision 1. Bond proceeds fund. To provide the money appropriated in this act from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the state in an amount up to $913,370,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.

Subd. 2. Maximum effort school loan fund. To provide the money appropriated in this act from the maximum effort school loan fund, the commissioner of finance shall sell and issue bonds of the state in an amount up to $4,000,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest and any premium received on the sale of the bonds, must be credited to a bond proceeds account in the maximum effort school loan fund.

Subd. 3. Transportation fund bond proceeds account. To provide the money appropriated in this act from the state transportation fund, the commissioner of finance shall sell and issue bonds of the state in an amount up to $82,500,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest and any premium received on the sale of the bonds, must be credited to a bond proceeds account in the state transportation fund.

Sec. 26. Minnesota Statutes 2004, section 16A.11, subdivision 1, is amended to read:

Subdivision 1. When. The governor shall submit a three-part budget to the legislature. Parts one and two, the budget message and detailed operating budget, must be submitted by the fourth Tuesday in January in each odd-numbered year. However, in a year following the election of a governor who had not been governor the previous year, parts one and two must be submitted by the third Tuesday in February. Part three, the detailed recommendations as to capital expenditure, must be submitted as follows: agency capital budget requests by ~~July 1~~ August 15 of each odd-numbered year, and governor's recommendations by January 15 of each even-numbered year. Detailed recommendations as to information technology expenditure must be submitted as part of the detailed operating budget. Information technology recommendations must include projects to be funded during the next biennium and planning estimates for an additional two bienniums. Information technology recommendations must specify purposes of the funding such as infrastructure, hardware, software, or training.

Sec. 27. Minnesota Statutes 2004, section 16A.86, subdivision 2, is amended to read:

Subd. 2. Budget request. A political subdivision that requests an appropriation of state money for a local capital improvement project is encouraged to submit ~~a preliminary~~ the request to the commissioner of finance by ~~June~~ July 15 of an odd-numbered year to ensure its full consideration. ~~The final request must be submitted by November 1.~~ The requests must be submitted in the form and with the supporting documentation required by the commissioner of finance. All requests timely received by the commissioner must be forwarded to the legislature, along with agency requests, by the deadline established in section 16A.11, subdivision 1.

Sec. 28. Minnesota Statutes 2004, section 16A.86, subdivision 4, is amended to read:

Subd. 4. Funding. (a) The state share of a project covered by this section must be no more than half the total cost of the project, including predesign, design, construction, furnishings, and equipment, except as provided in paragraph (b). This subdivision does not apply to a project proposed by a school district or other school organization.

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(b) The state share may be more than half the total cost of a project if the project is deemed needed as a result of a disaster or to prevent a disaster or is located in a political subdivision with a very low average net tax capacity.

(c) Nothing in this section prevents the governor from recommending, or the legislature from considering or funding, projects that do not meet the ~~deadlines~~ deadline in subdivision 2 or the criteria in this subdivision or subdivision 3 when the governor or the legislature determines that there is a compelling reason for the recommendation or funding.

Sec. 29. [16B.307] ASSET PRESERVATION STANDARDS.

Article XI, section 5, clause (a), of the Constitution requires that state general obligation bonds be issued to finance only the acquisition or betterment of public land, buildings, and other public improvements of a capital nature. Money appropriated for asset preservation, whether from state bond proceeds or from other revenue, is subject to the following additional limitations:

(a) An appropriation for asset preservation may not be used to acquire new land nor to acquire or construct new buildings, additions to buildings, or major new improvements.

(b) An appropriation for asset preservation may be used only for a capital expenditure on a capital asset previously owned by the state, within the meaning of generally accepted accounting principles as applied to public expenditures. The legislature assumes that many projects for preservation and replacement of portions of existing capital assets will constitute betterments and capital improvements within the meaning of the Constitution and capital expenditures under generally accepted accounting principles, and will be financed more efficiently and economically under this section than by direct appropriations for specific projects.

(c) Categories of projects considered likely to be most needed and appropriate for asset preservation appropriations are the following:

(1) projects to remove life safety hazards, like building code violations or structural defects. Notwithstanding paragraph (a), a project in this category may include an addition to an existing building if it is a required component of the hazard removal project;

(2) projects to eliminate or contain hazardous substances like asbestos or lead paint;

(3) moderate projects to replace or repair roofs, windows, tuckpointing, mechanical or electrical systems, utility infrastructure, tunnels, site renovations necessary to support building use, and structural components necessary to preserve the exterior and interior of existing buildings; and

(4) projects to renovate parking structures.

(d) Up to ten percent of an appropriation subject to this section may be used for design costs for projects eligible to be funded under this section in anticipation of future asset preservation appropriations.

Sec. 30. Minnesota Statutes 2004, section 85.013, is amended by adding a subdivision to read:

Subd. 21c. Rollingstone Off-Road Vehicle Recreation Area. The Rollingstone Off-Road Vehicle Recreation Area is established in Winona County.

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Sec. 31. Minnesota Statutes 2004, section 86A.05, subdivision 3, is amended to read:

Subd. 3. State recreation area; purpose; resource and site qualifications; administration. (a) A state recreation area shall be established to provide a broad selection of outdoor recreation opportunities in a natural setting which may be used by large numbers of people.

(b) No unit shall be authorized as a state recreation area unless its proposed location substantially satisfies the following criteria:

(1) Contains natural or artificial resources which provide outstanding outdoor recreational opportunities that will attract visitors from beyond the local area;

(2) Contains resources which permit intensive recreational use by large numbers of people; and

(3) May be located in areas which have serious deficiencies in public outdoor recreation facilities, provided that state recreation areas should not be provided in lieu of municipal, county, or regional facilities.

(c) State recreation areas shall be administered by the commissioner of natural resources in a manner which is consistent with the purposes of this subdivision primarily to provide as broad a selection of opportunities for outdoor recreation as is consistent with maintaining a pleasing natural environment. Scenic, historic, scientific, scarce, or disappearing resources within state recreation areas shall be recommended for authorization as historic sites or designated scientific and natural areas pursuant to section 86A.08 to preserve and protect them. Physical development shall enhance and promote the use and enjoyment of the natural recreational resources of the area.

(d) The commissioner may acquire and establish an outdoor recreation area for off-road vehicle use.

Sec. 32. [86A.27] ROLLINGSTONE OFF-ROAD VEHICLE RECREATION AREA; WINONA COUNTY.

Subdivision 1. Acquisition and management. The commissioner of natural resources is authorized to acquire by gift or purchase the lands for the Rollingstone Off-Road Vehicle Recreation Area. The commissioner shall manage the unit as a state recreation area as provided by Minnesota Statutes, section 86A.05, subdivision 3. The commissioner or the commissioner's designee in the Trails and Waterways Division of the Department of Natural Resources shall develop and manage the area for off-road vehicle recreational use.

Subd. 2. Management plan. The commissioner shall develop a comprehensive management plan that provides for:

(1) recreation for off-road vehicles;

(2) protection of natural resources;

(3) limited timber management;

(4) land acquisition needs; and

(5) road and facility development.

The completed management plan shall serve as the master plan for purposes of section 86A.09.

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Subd. 3. Boundaries. The following described lands are located within the boundaries of the Rollingstone Off-Road Vehicle Recreation Area in Winona County:

(1) Parcel ID Number R12.015.3331 in Section 32, Township 108 North, Range-008; and

(2) Parcel ID Number R12.015.3251 in Section 31, Township 108 North, Range-008.

Subd. 4. Adopt-a-recreation area. The commissioner shall utilize section 85.045, as much as possible in developing and operating the Rollingstone Off-Road Vehicle Recreation Area.

Subd. 5. Feasibility study. The Trails and Waterways Division of the Department of Natural Resources shall conduct a study to identify additional sites to expand the Rollingstone Off-Road Vehicle Recreation Area and to determine the feasibility of acquiring, developing, and connecting the sites.

Subd. 6. Vehicles must be registered; definition. An off-road vehicle being operated in the Rollingstone Off-Road Vehicle Recreation Area must be properly registered as an off-road vehicle under chapter 84.

Sec. 33. Minnesota Statutes 2004, section 103F.161, subdivision 3, is amended to read:

Subd. 3. Red River basin flood mitigation projects. (a) Notwithstanding subdivision 2, a grant for implementation of a flood hazard mitigation project in the Red River basin that is consistent with the 1998 mediation agreement and approved by the Red River flood damage reduction work group may be for up to 75 percent of the cost of the proposed mitigation measures for the Agassiz-Audubon, North Ottawa, Hay Creek, and Thief River subwatershed projects.

(b) Condemnation may not be used to acquire land for natural resource or wildlife enhancements or other measures that are not mitigation measures.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to projects funded with grants under Minnesota Statutes, section 103F.161, subdivision 3, on or after the effective date of this section and to projects that have commenced with grant money under Minnesota Statutes, section 103F.161, subdivision 3, but that have not yet been fully funded by grants under Minnesota Statutes, section 103F.161, subdivision 3, on the effective date of this section.

Sec. 34. Minnesota Statutes 2005 Supplement, section 116.182, subdivision 2, is amended to read:

Subd. 2. Applicability. This section governs the commissioner's certification of projects seeking financial assistance under section 103F.725, subdivision 1a; 446A.07; 446A.072; or 446A.073; 446A.074; or 446A.075.

Sec. 35. [116J.435] MINNESOTA BIOSCIENCE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.

Subdivision 1. Creation of account. A Minnesota bioscience business development public infrastructure account is created in the bond proceeds fund. Money in the account may only be used for eligible costs for publicly owned property.

Subd. 2. Definitions. For purposes of this section:

(1) "local governmental unit" means any county, city, town, special district, or other political subdivision or public corporation;

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(2) "governing body" means the council, board of commissioners, board of trustees, or other body charged with governing any local governmental unit;

(3) "public infrastructure" means publicly owned physical infrastructure necessary to support bioscience business development activities, including, but not limited to, wastewater collection and treatment, drinking water, storm sewers, utility extensions, telecommunications infrastructure, streets, roads, bridges, parking ramps, facilities that support basic science and clinical research, and research infrastructure; and

(4) "eligible project" means a public infrastructure project for which a local governmental unit may be eligible to receive a grant under this section, including: manufacturing; technology; warehousing and distribution; research and development; bioscience business incubator; agricultural bioprocessing; or industrial, office, or research park development that would be used by a bioscience-based business.

Subd. 3. Grant program established. (a) The commissioner shall make competitive grants to local governmental units to provide for up to 50 percent of the capital costs of public infrastructure necessary for an eligible bioscience business infrastructure development. The local governmental unit receiving a grant must provide for the remainder of the public infrastructure costs, either in cash or in kind. In-kind contributions may include the value of site preparation other than the public infrastructure needed for the project.

(b) Grants under this program may be made to local governmental units to predesign, design, acquire, and construct publicly owned infrastructure required to support bioscience development activity in this state.

(c) The purpose of the program is to keep or enhance jobs in the area, increase the tax base, or to expand or create new economic development through the growth of new bioscience businesses and organizations.

Subd. 4. Application. (a) The commissioner must develop forms and procedures for soliciting and reviewing applications for grants under this section. At a minimum, a local governmental unit must include the following information in its application:

(1) a resolution of its governing body certifying that the required local match is available and committed;

(2) a detailed estimate, along with necessary supporting evidence, of the total development costs for the site;

(3) an assessment of the potential or likely use of the site for bioscience activities after completion of the project;

(4) a timeline indicating the major milestones of the project and their anticipated completion dates;

(5) a commitment from the governing body to repay the grant if the milestones are not realized by the completion date identified in clause (4); and

(6) any additional information or material the commissioner prescribes.

(b) The determination of whether to make a grant for a project is within the discretion of the commissioner, subject to this section. The commissioner's decisions and application of the priorities are not subject to judicial review, except for abuse of discretion.

Subd. 5. Priorities. (a) If applications for grants exceed the available appropriations, grants shall be made for projects that, in the commissioner's judgment, provide the highest return in public benefits for the public costs incurred. "Public benefits" include job creation, environmental benefits to the state and region, efficient use of public transportation, efficient use of existing infrastructure, provision of affordable housing, multiuse development that constitutes community rebuilding rather than single-use development, crime reduction, blight reduction, community stabilization, and property tax base maintenance or improvement. In making this judgment, the commissioner shall give priority to projects with one or more of the following characteristics:

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(1) the potential of the local governmental unit to attract viable bioscience businesses;

(2) proximity to public transit if located in a metropolitan county, as defined in section 473.121, subdivision 4;

(3) multijurisdictional projects that take into account the need for affordable housing, transportation, and environmental impact;

(4) the project is not relocating substantially the same operation from another location in the state, unless the commissioner determines the project cannot be reasonably accommodated within the local governmental unit in which the business is currently located, or the business would otherwise relocate to another state or country; and

(5) the number of jobs that will be created.

(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the commissioner may weigh each factor, depending upon the facts and circumstances, as the commissioner considers appropriate.

Subd. 6. Local match requirement. In order to qualify for a grant under this section, the local governmental unit must pay for at least one-half of the public infrastructure costs as a local match. The local governmental unit shall pay an amount of the project costs equal to at least 50 percent of the development project from the municipality's general fund; a special property tax levy for that purpose; tax increments; regional, state, or federal money available for the economic development; or any other money available to the local governmental unit.

Subd. 7. Cancellation of grant. If a grant is awarded to a local governmental unit and funds are not encumbered for the grant within four years after the award date, the grant must be canceled.

Subd. 8. Repayment of grant. If a project funded with a grant awarded under this section is completed, and after five years from the date of the last grant payment the site is not occupied by a bioscience business, the grant recipient must repay the amount of the grant funds received. The commissioner must deposit all money received under this subdivision into the debt service fund.

Sec. 36. Minnesota Statutes 2005 Supplement, section 116J.575, subdivision 1, is amended to read:

Subdivision 1. Commissioner discretion. The commissioner may make a grant for up to 50 percent of the eligible costs of a project. The commissioner shall, in each grant cycle, make grants so that 50 percent of the dollar value of grants for that cycle are for projects located outside of the metropolitan area and 50 percent are for projects located within the metropolitan area. This allocation of funds does not apply for any grant cycle in which the applications received by the application deadline are insufficient to permit the equal division of grants between metropolitan and nonmetropolitan projects. The determination of whether to make a grant for a site is within the discretion of the commissioner, subject to this section and sections 116J.571 to 116J.574 and available unencumbered money in the redevelopment account. Notwithstanding section 116J.573, if the commissioner determines that the applications for grants for projects in greater Minnesota are less than the amount of grant funds available, the commissioner may make grants for projects anywhere in Minnesota. The commissioner's decisions and application of the priorities under this section are not subject to judicial review, except for abuse of discretion.

Sec. 37. Minnesota Statutes 2004, section 123A.44, is amended to read:

123A.44 CITATION.

Sections 123A.441 to 123A.446 may be cited as the "Cooperative ~~Secondary~~ Facilities Grant Act."

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Sec. 38. Minnesota Statutes 2004, section 123A.441, is amended to read:

123A.441 POLICY AND PURPOSE.

Because of the rates of decline in school-aged population, population shifts and economic changes that the state has experienced in recent years and anticipates in future years, and because in some instances local districts have not, and will not be able to provide the required construction funds through local property taxes, the purpose of the cooperative ~~secondary~~ facilities grant program is to provide an incentive to encourage cooperation in making available to all ~~secondary~~ students those educational programs, services and facilities that are most efficiently and effectively provided by a cooperative effort of ~~several~~ school districts. The policy and purpose of sections 123A.442 to 123A.446 is to use the credit of the state, to a limited degree, to provide grants to cooperating groups of districts to improve and expand the educational opportunities and facilities available to their ~~secondary~~ students.

Sec. 39. Minnesota Statutes 2004, section 123A.442, is amended to read:

123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.

Subdivision 1. Approval by commissioner. To the extent money is available, the commissioner may approve projects from applications submitted under section 123A.443. The grant money must be used only to acquire, construct, remodel or improve the building or site of a cooperative ~~secondary~~ facility under contracts to be entered into within 15 months after the date on which each grant is awarded.

Subd. 2. Cooperation and combination. Districts that have not already consolidated and receive a cooperative ~~secondary~~ facilities grant ~~after May 1, 1991,~~ shall:

(1) submit a consolidation plan ~~as set forth in~~ under section ~~123A.36~~ 123A.48 for approval by the ~~State Board of Education before December 31, 1999, or~~ Department of Education ~~after December 30, 1999~~; and

(2) hold a referendum on the question of ~~combination~~ consolidation no later than four years after a grant is awarded under subdivision 1.

The districts are eligible for ~~cooperation and combination~~ consolidation revenue under section ~~123A.39, subdivision 3~~ 123A.485.

Subd. 3. Consolidated districts. A school district that has consolidated with another school district since July 1, 1980, is eligible for a cooperative facilities grant.

Sec. 40. Minnesota Statutes 2004, section 123A.443, is amended to read:

123A.443 GRANT APPLICATION PROCESS.

Subdivision 1. Qualification. Any group of districts or a consolidated district that meets the criteria required under subdivision 2 may apply for an incentive grant for construction of a new ~~secondary~~ facility or for remodeling and improving an existing ~~secondary~~ facility. A grant for new construction must not exceed the lesser of $5,000,000 or 75 25 percent of the approved construction costs of a cooperative ~~secondary~~ education facility. A grant for remodeling and improving an existing facility must not exceed ~~$200,000~~ $1,000,000.

Subd. 2. Review by commissioner. (a) A group of districts or a consolidated district that submits an application for a grant must submit a proposal to the commissioner for review and comment under section 123B.71. The commissioner shall prepare a review and comment on the proposed facility by July 1 of an odd-numbered year,

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regardless of the amount of the capital expenditure required to acquire, construct, remodel, or improve the ~~secondary~~ facility. The commissioner shall not approve an application for an incentive grant for any ~~secondary~~ facility unless the facility receives a favorable review and comment under section 123B.71 and the following criteria are met:

(1) the applicant is a consolidated district or a minimum of two or more districts~~, with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, enter~~ that have entered into a joint powers agreement;

(2) for a group of districts, a joint powers board representing all participating districts is established under section 471.59 to govern the cooperative ~~secondary~~ facility;

(3) ~~the planned secondary facility will result in the joint powers district meeting the requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;~~

~~(4)~~ at least ~~198~~ 300 pupils would be served in ~~grades 10 to~~ kindergarten through grade 12~~, 264 pupils would be served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12~~;

~~(5)~~ (4) for a group of districts, no more than one superintendent is employed by the joint powers board as a result of the cooperative ~~secondary~~ facility agreement;

~~(6)~~ (5) a statement of need is submitted, that may include reasons why the current ~~secondary~~ facilities are inadequate, unsafe or inaccessible to the ~~handicapped~~ disabled;

~~(7)~~ (6) an educational plan is prepared, that includes input from both community and professional staff;

~~(8)~~ (7) for a group of districts, a combined seniority list for all participating districts is developed by the joint powers board;

~~(9)~~ (8) for a group of districts, an education program is developed that provides for more learning opportunities and course offerings, including the offering of advanced placement courses, for students than is currently available in any single member district;

~~(10)~~ (9) a plan is developed for providing instruction of any resident students in other districts when distance to the ~~secondary~~ education facility makes attendance at the facility unreasonably difficult or impractical; and

~~(11)~~ (10) for a secondary facility, the joint powers board established under clause (2) discusses with technical colleges located in the area how vocational education space in the cooperative ~~secondary~~ facility could be jointly used for secondary and postsecondary purposes.

(b) To the extent possible, the joint powers board is encouraged to provide for severance pay or for early retirement incentives under section 122A.48, for any teacher or administrator, as defined under section 122A.40, subdivision 1, who is placed on unrequested leave as a result of the cooperative ~~secondary~~ facility agreement.

(c) For the purpose of paragraph (a), clause ~~(8)~~ (7), each district must be considered to have started school each year on the same date.

(d) The districts may develop a plan that provides for the location of social service, health, and other programs serving pupils and community residents within the cooperative ~~secondary~~ facility. The commissioner shall consider this plan when preparing a review and comment on the proposed facility.

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(e) The districts must schedule and conduct a meeting on library services. The school districts, in cooperation with the regional public library system and its appropriate member libraries, must discuss the possibility of including jointly operated library services at the cooperative ~~secondary~~ facility.

(f) The board of a district that has reorganized under section 123A.37 or 123A.48 and that is applying for a grant for remodeling or improving an existing facility may act in the place of a joint powers board to meet the criteria of this subdivision.

Subd. 3. Reorganizing districts. A district that is a member of a joint powers board established under subdivision 2 and that is planning to reorganize under section 123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of the effective date of the reorganization. Notwithstanding section 471.59 or any other law to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or 123A.48 may appoint representatives to the joint powers board who will serve on the joint powers board for two years after the effective date of the reorganization if authorized in the agreement establishing the joint powers board to govern the cooperative ~~secondary~~ facility. These representatives shall have the same powers as representatives of any other school district under the joint powers agreement.

Subd. 4. District procedures. A joint powers board of a ~~secondary~~ district established under subdivision 2 or a school board of a reorganized district that intends to apply for a grant must adopt a resolution stating the proposed costs of the project, the purpose for which the costs are to be incurred, and an estimate of the dates when the facilities for which the grant is requested will be contracted for and completed. Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) a certificate by the clerk and treasurer of the joint powers board showing the current outstanding indebtedness of each member district, and (c) a certificate by the county auditor of each county in which a portion of the joint powers district lies showing the information in the auditor's official records that is required to be used in computing the debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's certificate must show, as to each outstanding bond issue of each member district, the amount originally issued, the purpose for which issued, the date of issue, the amount remaining unpaid as of the date of the resolution, and the interest rates and due dates and amounts of principal thereon. Applications and necessary data must be in the form prescribed by the commissioner ~~and the rules of the State Board of Education before December 31, 1999, and after December 30, 1999, in the form prescribed by the commissioner~~. Applications must be received by the commissioner by September 1 of an odd-numbered year. When an application is received, the commissioner shall obtain from the commissioner of revenue, and from the Public Utilities Commission when required, the information in their official records that is required to be used in computing the debt limit of the joint powers district under section 475.53, subdivision 4.

Subd. 5. Award of grants. By November 1 of the odd-numbered year, the commissioner shall examine and consider all applications for grants, and if any district is found not qualified, the commissioner shall promptly notify that board.

A grant award is subject to verification by the district as specified in subdivision 8. A grant award for a new facility must not be made until the site of the ~~secondary~~ facility has been determined. A grant award to remodel or improve an existing facility must not be made until the districts have reorganized. If the total amount of the approved applications exceeds the amount that is or can be made available, the commissioner shall allot the available amount equally between the approved applicant districts. In awarding grants the commissioner shall give priority first to projects with the greatest total number of pupils served in the consolidated district and second to projects with the greatest number of school districts that have consolidated or are proposing to consolidate. The commissioner shall promptly certify to each qualified district the amount, if any, of the grant awarded to it.

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Subd. 6. Collocation grant. A group of districts that receives a grant for a new facility under subdivision 4 is also eligible to receive an additional grant in the amount of $1,000,000. To receive the additional grant, the group of districts must develop a plan under subdivision 2, paragraph (d), that provides for the location of a significant number of noneducational student and community service programs within the cooperative ~~secondary~~ facility.

Subd. 7. Referendum; bond issue. Within 180 days after being awarded a grant for a new facility under subdivision 5, the joint powers board must submit the question of authorizing the borrowing of funds for the ~~secondary~~ facility to the voters of the joint powers district at a special election, which may be held in conjunction with the annual election of the school board members of the member districts. The question submitted must state the total amount of funding needed from all sources. A majority of those voting in the affirmative on the question is sufficient to authorize the joint powers board to accept the grant and to issue the bonds on public sale ~~in accordance with~~ according to chapter 475. The clerk of the joint powers board must certify the vote of the bond election to the commissioner. If the question is approved by the voters, the commissioner shall notify the approved applicant districts that the grant amount certified under subdivision 5 is available and appropriated for payment under this subdivision. If a majority of those voting on the question do not vote in the affirmative, the grant must be canceled.

Subd. 8. Contract. Each grant must be evidenced by a contract between the board and the state acting through the commissioner. The contract obligates the state to pay to the board an amount computed according to subdivision 5, and according to a schedule, and terms and conditions acceptable to the commissioner of finance.

Subd. 9. Consolidation. A group of districts that operates a cooperative ~~secondary~~ facility that was acquired, constructed, remodeled, or improved under this section and implements consolidation proceedings according to section 123A.48, may propose a temporary school board structure in the petition or resolution required under section 123A.48, subdivision 2. The districts may propose the number of existing school board members of each district to become members of the board of the consolidated district and a method to gradually reduce the membership to six or seven. The proposal must be approved, disapproved, or modified by the ~~state board of education~~ commissioner. The election requirements of section 123A.48, subdivision 20, do not apply to a proposal approved by the state board. Elections conducted after the effective date of the consolidation are subject to the Minnesota Election Law.

Sec. 41. Minnesota Statutes 2004, section 136F.98, subdivision 1, is amended to read:

Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State Colleges and Universities or a successor may issue revenue bonds under sections 136F.90 to 136F.97 whose aggregate principal amount at any time may not exceed ~~$100,000,000~~, $150,000,000 and payable from the revenue appropriated to the fund established by section 136F.94, and use the proceeds together with other public or private money that may otherwise become available to acquire land, and to acquire, construct, complete, remodel, and equip structures or portions thereof to be used for dormitory, residence hall, student union, food service, ~~and related~~ parking purposes at, or for any other similar revenue-producing building or buildings of such type and character as the board finds desirable for the good and benefit of the state universities. Before issuing the bonds or any part of them, the board shall consult with and obtain the advisory recommendations of the chairs of the house Ways and Means Committee and the senate Finance Committee about the facilities to be financed by the bonds.

Sec. 42. [446A.074] CLEAN WATER LEGACY PHOSPHORUS REDUCTION GRANTS.

Subdivision 1. Creation of fund. The authority shall establish a clean water legacy capital improvement fund and shall make grants from the fund as provided in this section.

Subd. 2. Grants. The authority shall award grants from the clean water legacy capital improvement fund to governmental units for the capital costs of wastewater treatment facility projects or a portion thereof that will reduce the discharge of total phosphorus from the facility to one milligram per liter or less. A project is eligible for a grant if it meets the following requirements:

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(1) the applicable phosphorus discharge limit is incorporated in a permit issued by the agency for the wastewater treatment facility on or after March 28, 2000, the grantee agrees to comply with the applicable limit as a condition of receiving the grant, or the grantee made improvements to a wastewater treatment facility on or after March 28, 2000, that include infrastructure to reduce the discharge of total phosphorus to one milligram per liter or less;

(2) the governmental unit has submitted a facilities plan for the project to the agency and a grant application to the authority on a form prescribed by the authority; and

(3) the agency has approved the facilities plan, and certified the eligible costs for the project to the authority.

Subd. 3. Eligible capital costs. Eligible capital costs for phosphorus reduction grants under subdivision 4, paragraph (a), include the as-bid construction costs and engineering planning and design costs for phosphorus treatment. Eligible capital costs for phosphorus reduction grants under subdivision 4, paragraph (b), include the final, incurred construction, engineering, planning, and design costs for phosphorus treatment.

Subd. 4. Grant amounts and priorities. (a) Priority must be given to projects that start construction on or after July 1, 2006. If a facility's plan for a project is approved by the agency before July 1, 2010, the amount of the grant is 75 percent of the eligible capital cost of the project. If a facility's plan for a project is approved by the agency on or after July 1, 2010, the amount of the grant is 50 percent of the eligible capital cost of the project. Priority in awarding grants under this paragraph must be based on the date of approval of the facility's plan for the project.

(b) Projects that meet the eligibility requirements in subdivision 2 and have started construction before July 1, 2006, are eligible for grants to reimburse up to 75 percent of the eligible capital cost of the project, less any amounts previously received in grants from other sources. Application for a grant under this paragraph must be submitted to the authority no later than June 30, 2008. Priority for award of grants under this paragraph must be based on the date of agency approval of the facility plan.

(c) In each fiscal year that money is available for grants, the authority shall first award grants under paragraph (a) to projects that met the eligibility requirements of subdivision 2 by May 1 of that year. The authority shall use any remaining money available that year to award grants under paragraph (b). Grants that have been approved but not awarded in a previous fiscal year carry over and must be awarded in subsequent fiscal years in accordance with the priorities in this paragraph.

(d) Disbursements of grants under this section by the authority to recipients must be made for eligible project costs as incurred by the recipients, and must be made by the authority in accordance with the project financing agreement and applicable state law.

Subd. 5. Fees. The authority may charge the grant recipient a fee for its administrative costs not to exceed one-half of one percent of the grant amount, to be paid upon execution of the grant agreement.

Sec. 43. [446A.075] SMALL COMMUNITY WASTEWATER TREATMENT PROGRAM.

Subdivision 1. Creation of fund. The authority shall establish a small community wastewater treatment fund and shall make loans and grants from the fund as provided in this section. Money in the fund is annually appropriated to the authority and does not lapse. The fund shall be credited with all loan repayments and investment income from the fund, and servicing fees assessed under section 446A.04, subdivision 5. The authority shall manage and administer the small community wastewater treatment fund, and for these purposes, may exercise all powers provided in this chapter.

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Subd. 2. Loans and grants. (a) The authority shall award loans as provided in paragraph (b) and grants as provided in paragraphs (c) and (d) to governmental units from the small community wastewater treatment fund for projects to replace noncomplying individual sewage treatment systems with a community wastewater treatment system or systems meeting the requirements of section 115.55. A governmental unit receiving a loan or loan and grant from the fund shall own the community wastewater treatment systems built under the program and shall be responsible, either directly or through a contract with a private vendor, for all inspections, maintenance, and repairs necessary to ensure proper operation of the systems.

(b) Loans may be awarded for up to 100 percent of eligible project costs as described in this section.

(c) When the area to be served by a project has a median household income below the state average median household income, the governmental unit may receive 50 percent of the funding provided under this section in the form of a grant. An applicant may submit income survey data collected by an independent party if it believes the most recent United States census does not accurately reflect the median household income of the area to be served.

(d) If requested, a governmental unit receiving funding under this section may receive a grant equal to ten percent of its first year's award, up to a maximum of $30,000, to contract for technical assistance services from the University of Minnesota Extension Service to develop the technical, managerial, and financial capacity necessary to build, operate, and maintain the systems.

Subd. 3. Project priority list. Governmental units seeking loans or loans and grants from the small community wastewater treatment program shall first submit a project proposal to the agency on a form prescribed by the agency. A project proposal shall include the compliance status for all individual sewage treatment systems in the project area. The agency shall rank project proposals on its project priority list used for the water pollution control revolving fund under section 446A.07.

Subd. 4. Applications. Governmental units with projects on the project priority list shall submit applications to the authority on forms prescribed by the authority. The application shall include:

(1) a list of the individual sewage treatment systems proposed to be replaced over a period of up to three years;

(2) a project schedule and cost estimate for each year of the project;

(3) a financing plan for repayment of the loan; and

(4) a management plan providing for the inspection, maintenance, and repairs necessary to ensure proper operation of the systems.

Subd. 5. Awards. The authority shall award loans or loans and grants as provided in subdivision 2 to governmental units with approved applications based on their ranking on the agency's project priority list. The total amount awarded shall be based on the estimated project costs for the portion of the project expected to be completed within one year, up to an annual maximum of $500,000. For projects expected to take more than one year to complete, the authority may make a multiyear commitment for a period not to exceed three years, contingent on the future availability of funds. Each year of a multiyear commitment must be funded by a separate loan or loan and grant agreement meeting the terms and conditions in subdivision 6. A governmental unit receiving a loan or loan and grant under a multiyear commitment shall have priority for additional loan and grant funds in subsequent years.

Subd. 6. Loan terms and conditions. Loans from the small community wastewater treatment fund shall comply with the following terms and conditions:

(1) principal and interest payments must begin no later than two years after the loan is awarded;

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(2) loans shall carry an interest rate of one percent;

(3) loans shall be fully amortized within ten years of the first scheduled payment or, if the loan amount exceeds $10,000 per household, shall be fully amortized within 20 years but not to exceed the expected design life of the system;

(4) a governmental unit receiving a loan must establish a dedicated source or sources of revenues for repayment of the loan and must issue a general obligation note to the authority for the full amount of the loan; and

(5) each property owner to be served by a community wastewater treatment system under this program must provide an easement to the governmental unit to allow access to the system for management and repairs.

Subd. 7. Special assessment deferral. (a) A governmental unit receiving a loan under this section that levies special assessments to repay the loan may defer payment of the assessments under the provisions of sections 435.193 to 435.195.

(b) A governmental unit that defers payment of special assessments for one or more properties under paragraph (a) may request deferral of that portion of the debt service on its loan, and the authority shall accept appropriate amendments to the general obligation note of the governmental unit. If special assessment payments are later received from properties that received a deferral, the funds received shall be paid to the authority with the next scheduled loan payment.

Subd. 8. Eligible costs. Eligible costs for small community wastewater treatment loans and grants shall include the costs of technical assistance as provided in subdivision 2, paragraph (d), planning, design, construction, legal fees, administration, and land acquisition.

Subd. 9. Disbursements. Loan and grant disbursements by the authority under this section must be made for eligible project costs as incurred by the recipients, and must be made in accordance with the project loan or grant and loan agreement and applicable state law.

Subd. 10. Audits. A governmental unit receiving a loan under this section must annually provide to the authority for the term of the loan a copy of its annual independent audit or, if the governmental unit is not required to prepare an independent audit, a copy of the annual financial reporting form it provides to the state auditor.

Sec. 44. Minnesota Statutes 2004, section 446A.12, subdivision 1, is amended to read:

Subdivision 1. Bonding authority. The authority may issue negotiable bonds in a principal amount that the authority determines necessary to provide sufficient funds for achieving its purposes, including the making of loans and purchase of securities, the payment of interest on bonds of the authority, the establishment of reserves to secure its bonds, the payment of fees to a third party providing credit enhancement, and the payment of all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers, but not including the making of grants. Bonds of the authority may be issued as bonds or notes or in any other form authorized by law. The principal amount of bonds issued and outstanding under this section at any time may not exceed ~~$1,250,000,000~~ $1,500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds have been issued.

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Sec. 45. Laws 2000, chapter 492, article 1, section 7, subdivision 21, as amended by Laws 2005, chapter 20, article 1, section 42, is amended to read:

Subd. 21. Harbor of Refuge at Two Harbors

1,000,000

To develop the harbor of refuge and marina at Two Harbors, including public access improvements, marina slips, parking facilities, utilities, a fuel dock, and an administration building.

This appropriation is not available until the commissioner has determined that at least $500,000 has been committed from federal sources. Notwithstanding Minnesota Statutes, section 16A.642, this appropriation and its corresponding bond authorization do not cancel until ~~June 30, 2006~~ December 31, 2009.

Sec. 46. Laws 2002, chapter 393, section 19, subdivision 2, is amended to read:

Subd. 2. Northwest Busway

20,000,000

To design and construct a busway in the northwest metropolitan area between downtown Minneapolis and Rogers. This appropriation is contingent on $12,000,000 from Hennepin county and $5,000,000 from the metropolitan council for the project. Total funding from all sources may be used for roadway design, reconstruction, acquisition of land and right-of-way, and to design, construct, furnish, and equip transit stations and park and rides. Design-build under new Minnesota Statutes, sections 383B.158 to 383B.1586, may be used for implementing this project. Notwithstanding Minnesota Statutes, section 16A.642, this appropriation and its corresponding bond authorization do not cancel until December 31, 2010.

Sec. 47. Laws 2005, chapter 20, article 1, section 7, subdivision 14, is amended to read:

Subd. 14. State Trail Development

7,910,000

To acquire land for and to develop and rehabilitate state trails as specified in Minnesota Statutes, section 85.015.

$1,500,000 is for the Blazing Star Trail.

$435,000 is for a segment of the Blufflands Trail, from Preston to Forestville.

$200,000 is for a segment of the Blufflands Trail, from Chester Woods County Park to the city limits of Rochester in Olmsted County, primarily for nonmotorized riding and hiking.

$400,000 is for the Douglas Trail.

$400,000 is for the Gateway Trail.

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$725,000 is for the Gitchi Gami Trail.

$500,000 is for the Glacial Lakes Trail.

$200,000 is for the Goodhue Pioneer Trail.

$300,000 is for the Heartland Trail.

$300,000 is for the Mill Towns Trail.

$100,000 is for the Minnesota River Trail.

$2,400,000 is for the Paul Bunyan Trail: ~~$1,500,000~~ $320,000 is for an extension across Excelsior Road in the city of Baxter to connect with the Oberstar Tunnel; $900,000 is to acquire right-of-way in the city of Bemidji and to rehabilitate the trail.

$450,000 is for the Shooting Star Trail.

Sec. 48. Laws 2005, chapter 20, article 1, section 7, subdivision 21, is amended to read:

Subd. 21. State Park and Recreation Area Acquisition

2,500,000

For acquisition of land under Minnesota Statutes, section 86A.05, subdivisions 2 and 3, from willing sellers of private lands within state park and recreation area boundaries established by law.

$500,000 is to purchase land within the boundaries of Greenleaf Lake state park in Meeker county. This appropriation may also be used for a grant to Meeker County for acquisition of property at Greenleaf Lake to establish a regional park.

Sec. 49. Laws 2005, chapter 20, article 1, section 19, subdivision 6, is amended to read:

Subd. 6. Metropolitan Regional Parks Capital Improvements

14,664,000

This appropriation must be used to pay the cost of improvements and betterments of a capital nature and acquisition by the council and local government units of regional recreational open-space lands in accordance with the council's policy plan as provided in Minnesota Statutes, section 473.147. Priority should be given to park rehabilitation and land acquisition projects.

For purposes of Minnesota Statutes, section 473.351, Columbia Parkway, Ridgeway Parkway, and Stinson Boulevard are considered to be part of the metropolitan regional recreation open space system.

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$100,000 is for a grant to Ramsey and Washington Counties, or either of them as jointly agreed, to prepare engineering design documents for the development of a trail adjacent to marked Trunk Highway 120 from its intersection with Joy Road to its intersection with 20th Street in the city of North St. Paul, adjacent to marked Trunk Highway 96 from its intersection with marked Trunk Highway 61 to its intersection with marked Trunk Highway 244, and adjacent to marked Trunk Highway 244 from its intersection with marked Trunk Highway 96 to and including its intersection with Washington County Road 12 to be known as the Silver Lake Trail. The design must be consistent with the recommendations of the Lake Links Trail Network Master Plan prepared for Ramsey and Washington Counties.

$388,000 is for a grant to the city of St. Paul for park and trail improvements in the Desnoyer Park area, above the Meeker Island lock historic site.

$4,676,000 is for a grant to the city of St. Paul to design and construct river's edge improvements at Raspberry Island and Upper Landing and develop a public park on Raspberry Island. Of this amount, $676,000 is the local match for an Upper Landing federal TEA-21 grant.

$2,500,000 is for a grant to the city of South St. Paul for the closure, capping, and remediation of approximately 80 acres of the Port Crosby construction and demolition debris landfill in South St. Paul, as the fourth phase of converting the land into parkland, and to restore approximately 80 acres of riverfront land along the Mississippi River.

Sec. 50. Laws 2005, chapter 20, article 1, section 20, subdivision 3, is amended to read:

Subd. 3. Systemwide Redevelopment, Reuse, or Demolition

17,600,000

To demolish or improve surplus, nonfunctional, or deteriorated facilities and infrastructure at Department of Human Services campuses statewide.

(a) Up to $8,600,000 may be used to predesign, design, construct, furnish, and equip renovation of existing space or construction of new space for skilled nursing home capacity for forensic treatment programs operated by state-operated services on the campus of St. Peter Regional Treatment Center.

(b) $4,000,000 may be used to prepare and develop a site, including demolition of buildings and infrastructure, to implement the redevelopment and reuse of the Ah-Gwah-Ching Regional Treatment Center campus. If the property is sold or transferred to a local unit of government, the unspent portion of this appropriation may be granted to the local unit of government that acquires the campus for the purposes stated in this subdivision.

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Up to $400,000 may be used for a grant to the city of Walker to connect the water reservoir to the city.

(c) $1,000,000 may be used to renovate one or more buildings for chemical dependency treatment specializing in methamphetamine addiction, and demolish buildings, on the Willmar Regional Treatment Center campus. If the property is sold or transferred to a local unit of government, the unspent portion of this appropriation may be granted to the local unit of government that acquires the campus for the purposes stated in this subdivision.

(d) Up to $2,210,000 may be spent by the commissioner of finance to retire municipal bonds issued by the city of Fergus Falls and to retire interfund loans incurred by the city of Fergus Falls in connection with the waste incinerator and steam heating facility at the Fergus Falls Regional Treatment Center.

(e) Up to $400,000 may be used for a grant to the city of Fergus Falls to demolish the city's waste-to-energy incineration plant located on the grounds of the Fergus Falls Regional Treatment Center.

(f) The provisions, terms, and conditions of any grant made by the director of the Office of Environmental Assistance under Minnesota Statutes, chapter 115A, to the city of Fergus Falls for the waste incinerator steam heating facility that supports the Fergus Falls Regional Treatment Center and that may come into effect as a result of the incinerator and facility being closed, are hereby waived.

Sec. 51. Laws 2005, chapter 20, article 1, section 23, subdivision 3, is amended to read:

Subd. 3. Wastewater Infrastructure Funding Program

29,900,000

(a) To the Public Facilities Authority for the purposes specified in this subdivision. $29,300,000 of