Friday, May 14, 2021 - 57th Legislative Day

A quorum was present.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

Journal of the House - 57th Day - Friday, May 14, 2021 - Top of Page 7060

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Moran from the Committee on Ways and Means to which was referred:

H. F. No. 337, A bill for an act relating to capital investment; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature with certain conditions; authorizing the issuance of state bonds; establishing and modifying state programs; modifying prior appropriations; requiring a study and report; appropriating money; amending Minnesota Statutes 2020, sections 16A.86, subdivision 2; 16B.325, subdivision 2; 462A.37, subdivisions 1, 2, 5, by adding a subdivision; 469.53; Laws 2009, chapter 93, article 1, section 14, subdivision 3, as amended; Laws 2014, chapter 294, article 1, sections 21, subdivisions 21, 23, as amended; 22, subdivision 5, as amended; Laws 2017, First Special Session chapter 8, article 1, sections 7, subdivision 2; 15, subdivision 3, as amended; 20, subdivision 14; Laws 2018, chapter 214, article 1, sections 16, subdivision 2, as amended; 17, subdivision 6; 18, subdivisions 3, 4; 21, subdivision 16; 22, subdivision 6; Laws 2019, chapter 2, article 1, section 2, subdivision 5; Laws 2020, Fifth Special Session chapter 3, article 1, sections 7, subdivisions 3, 18; 13, subdivision 5; 16, subdivisions 5, 7, 15, 16, 36; 20, subdivision 5; 21, subdivisions 14, 20, 23, 37, 44, 47; 22, subdivisions 6, 8, 18, 19, 21, 23, 28, 30, 33; article 2, section 2, subdivisions 2, 4; proposing coding for new law in Minnesota Statutes, chapters 16A; 16B; repealing Minnesota Statutes 2020, sections 16A.93; 16A.94; 16A.96.

Reported the same back with the following amendments:

Page 9, line 22, after "Generation" insert "Improvements"

Page 14, line 24, delete "asset" and insert "repairs and replacements"

Page 14, delete line 25

Page 14, line 26, delete everything after "nature" and insert "for updated energy efficient animal habitats and operating systems and expanded visitor accessibility"

Page 14, line 27, delete "exhibits"

Page 17, line 3, delete "December 31" and insert "June 30"

Page 17, line 16, delete "asset"

Page 17, line 17, delete "preservation" and insert "improvements of a capital nature" and before the period, insert ", including major projects to preserve or replace mechanical or electrical systems, utility infrastructure, and site renovations to support ongoing operations, including energy conservation improvements"

Page 20, after line 2, insert:

"Sec. 24. APPROPRIATIONS TO ONLY COUNT ONCE.

If an appropriation in this act is enacted more than once in the 2021 legislative session, the appropriation must be given effect only once."

Page 26, after line 11, insert:

"Sec. 3. [16A.9691] EMERGENCY SHELTER FACILITY APPROPRIATION BONDS.

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Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.

(b) "Appropriation bond" means a bond, note, or other similar instrument of the state payable during a biennium from one or more of the following sources:

(1) money appropriated by law from the general fund in any biennium for debt service due with respect to obligations described in subdivision 2, paragraph (a);

(2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);

(3) payments received for that purpose under agreements and ancillary arrangements described in subdivision 2, paragraph (d); and

(4) investment earnings on amounts in clauses (1) to (3).

(c) "Debt service" means the amount payable in any biennium of principal, premium, if any, and interest on appropriation bonds, and the fees, charges, and expenses related to the bonds.

(d) "Eligible applicant" means a statutory or home rule charter city, county, Tribal government, not-for-profit corporation under section 501(c)(3) of the Internal Revenue Code, or housing and redevelopment authority established under section 469.003.

(e) "Emergency shelter facility" or "facility" means a facility for the purpose of providing a safe, sanitary, accessible, and suitable emergency shelter for individuals and families experiencing homelessness.

Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the limitations of this subdivision, the commissioner may sell and issue appropriation bonds of the state under this section for public purposes, as provided by law, including for the purpose of funding grants to eligible applicants for the acquisition of property, site preparation, including demolition, predesign, design, construction, renovation, furnishing, and equipping of emergency shelter facilities. Appropriation bonds may be sold and issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient money to the commissioner of human services under subdivision 7, not to exceed $50,000,000 net of costs of issuance, for the purposes as provided under this subdivision; to pay debt service including capitalized interest, costs of issuance, and costs of credit enhancement; or to make payments under other agreements entered into under paragraph (d).

(b) Proceeds of the appropriation bonds must be credited to a special appropriation emergency shelter facility bond proceeds fund in the state treasury. All income from investment of the bond proceeds is appropriated to the commissioner for the payment of principal and interest on the appropriation bonds.

(c) Appropriation bonds may be issued in one or more issues or series on the terms and conditions the commissioner determines to be in the best interests of the state, but the term on any series of appropriation bonds may not exceed 21 years. The appropriation bonds of each issue and series thereof shall be dated and bear interest from the date of issuance, and may be includable in or excludable from the gross income of the owners for federal income tax purposes.

(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time thereafter so long as the appropriation bonds are outstanding, the commissioner may enter into agreements and ancillary arrangements relating to the appropriation bonds, including but not limited to trust indentures, grant agreements, lease or use agreements, operating agreements, management agreements, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payments made or received according to the agreement or

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ancillary arrangement shall be made from or deposited as provided in the agreement or ancillary arrangement. The determination of the commissioner, included in an interest exchange agreement, that the agreement relates to an appropriation bond, shall be conclusive.

(e) The commissioner may enter into written agreements or contracts relating to the continuing disclosure of information necessary to comply with or facilitate the issuance of appropriation bonds in accordance with federal securities laws, rules, and regulations, including Securities and Exchange Commission rules and regulations in Code of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants with purchasers and holders of appropriation bonds set forth in the order or resolution authorizing the issuance of the appropriation bonds, or a separate document authorized by the order or resolution.

(f) The appropriation bonds are not subject to chapter 16C.

Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, notes, or other similar instruments in the manner provided in section 16A.672. In the event that any provision of section 16A.672 conflicts with this section, this section shall govern.

(b) Every appropriation bond shall include a conspicuous statement of the limitation established in subdivision 6.

(c) Appropriation bonds may be sold at either public or private sale upon such terms as the commissioner shall determine are not inconsistent with this section and may be sold at any price or percentage of par value. Any bid received may be rejected.

(d) Appropriation bonds must bear interest at a fixed or variable rate.

(e) Notwithstanding any other law, appropriation bonds issued under this section shall be fully negotiable.

Subd. 4. Refunding bonds. The commissioner may issue appropriation bonds for the purpose of refunding any appropriation bonds issued under subdivision 2 then outstanding, including the payment of any redemption premiums on the bonds, any interest accrued or to accrue to the redemption date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any refunding bonds may, at the discretion of the commissioner, be applied to the purchase or payment at maturity of the appropriation bonds to be refunded, to the redemption of the outstanding appropriation bonds on any redemption date, or to pay interest on the refunding bonds and may, pending application, be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be invested and reinvested in obligations that are authorized investments under section 11A.24. The income earned or realized on the investment may also be applied to the payment of the appropriation bonds to be refunded or interest or premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the proceeds and any investment income may be returned to the general fund or, if applicable, the special appropriation emergency shelter facility bond proceeds fund for use in any lawful manner. All refunding bonds issued under this subdivision must be prepared, executed, delivered, and secured by appropriations in the same manner as the appropriation bonds to be refunded.

Subd. 5. Appropriation bonds as legal investments. Any of the following entities may legally invest any sinking funds, money, or other funds belonging to them or under their control in any appropriation bonds issued under this section:

(1) the state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies;

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(2) banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations, and other persons carrying on a banking or insurance business; and

(3) personal representatives, guardians, trustees, and other fiduciaries.

Subd. 6. No full faith and credit; state not required to make appropriations. The appropriation bonds are not public debt of the state, and the full faith, credit, and taxing powers of the state are not pledged to the payment of the appropriation bonds or to any payment that the state agrees to make under this section. Appropriation bonds shall not be obligations paid directly, in whole or in part, from a tax of statewide application on any class of property, income, transaction, or privilege. Appropriation bonds shall be payable in each fiscal year only from amounts that the legislature may appropriate for debt service for any fiscal year, provided that nothing in this section shall be construed to require the state to appropriate money sufficient to make debt service payments with respect to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which the legislature shall not have appropriated amounts sufficient for debt service, or (2) the date of final payment of the principal of and interest on the appropriation bonds.

Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds issued under subdivision 2, paragraph (a), and interest credited to the special appropriation emergency shelter facility bond proceeds fund are appropriated as follows:

(1) to the commissioner of human services for grants for the acquisition of property, site preparation, including demolition, predesign, design, construction, renovation, furnishing, and equipping of emergency shelter facilities in accordance with subdivision 8;

(2) to the commissioner of human services for a $10,000,000 grant to Simpson Housing Services, a not-for-profit corporation under section 501(c)(3) of the Internal Revenue Code, to construct and renovate an emergency shelter facility in the city of Minneapolis, notwithstanding clause (1) and subdivision 8; and

(3) to the commissioner for debt service on the bonds including capitalized interest, nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and payments under any agreements entered into under subdivision 2, paragraph (d), as permitted by state and federal law.

Subd. 8. Project criteria. (a) The commissioner of human services shall prioritize grants under subdivision 7, clause (1), for projects that improve or expand emergency shelter facility options by:

(1) adding additional emergency shelter facilities by renovating existing facilities not currently operating as emergency shelter facilities;

(2) adding additional emergency shelter facility beds by renovating existing emergency shelter facilities, including major projects that address accumulation of deferred maintenance, or repair or replacement of mechanical, electrical, and safety systems and components in danger of failure;

(3) adding additional emergency shelter facility beds through acquisition and construction of new emergency shelter facilities; and

(4) improving the safety, sanitation, accessibility, and habitability of existing emergency shelter facilities, including major projects that address accumulation of deferred maintenance, or repair or replacement of mechanical, electrical, and safety systems and components in danger of failure.

(b) A grant under subdivision 7, clause (1), may be used to pay for 100 percent of total project capital expenditures, or a specified project phase, up to $10,000,000 per project.

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(c) All projects funded with a grant under subdivision 7, clause (1), must meet all applicable state and local building codes at the time of project completion.

(d) The commissioner of human services may use a competitive request for proposal process to identify potential projects and eligible applicants on a statewide basis.

Subd. 9. Grant requirements. In addition to any other terms in a grant agreement with the commissioner of human services, a grant of special appropriation emergency shelter facility bond proceeds must require the payment to the state, for deposit in the bond proceeds account established for such purpose in the special appropriation emergency shelter facility bond proceeds fund, the proceeds of the sale of any property financed with a grant under this section in any amount up to the amount of the grant, if the sale of the property occurs during the term of the grant agreement.

Subd. 10. Appropriation for debt service and other purposes. An amount needed to pay principal and interest on appropriation bonds issued under subdivision 2, paragraph (a), is appropriated each fiscal year from the general fund to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account established for such purpose in the special appropriation emergency shelter facility bond proceeds fund. The appropriation is available beginning in fiscal year 2024 and remains available through fiscal year 2045.

Subd. 11. Waiver of immunity. The waiver of immunity by the state provided for by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary contracts to which the commissioner is a party.

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

Page 31, delete section 7

Page 33, line 23, delete "asset"

Page 33, line 24, delete "preservation" and insert "improvements of a capital nature"

Page 33, line 25, before the period, insert ", including projects to restore exterior masonry and repair windows, doors, and louvers"

Page 37, delete section 1

Page 37, before line 29, insert:

"Section 1. Minnesota Statutes 2020, section 16A.967, subdivision 7, is amended to read:

Subd. 7. Appropriation of proceeds. ~~(a)~~ The proceeds of appropriation bonds issued under subdivision 2a and interest credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:

(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers Board for payment of capital expenses as specified in subdivision 2a; and

(2) to the commissioner for debt service on the bonds including capitalized interest, nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and payments under any agreements entered into under subdivision 2, paragraph (d), each as permitted by state and federal law.

~~(b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:~~

~~Journal of the House - 57th Day - Friday, May 14, 2021 - Top of Page 7065~~

~~(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers Board for payment of capital expenses as specified in subdivision 2b; and~~

(2) to the commissioner for debt service on the bonds including capitalized interest, nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and payments under any agreements entered into under subdivision 2, paragraph (d), each as permitted by state and federal law.

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

Sec. 2. Minnesota Statutes 2020, section 16A.967, subdivision 8, is amended to read:

Subd. 8. Appropriation for debt service and other purposes. ~~(a)~~ An amount, up to $1,351,000 needed to pay principal and interest on appropriation bonds issued under subdivision 2a is appropriated each fiscal year from the general fund to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account established for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.

(b) An amount up to $265,000 needed to pay principal and interest on appropriation bonds issued under subdivision 2b is appropriated each fiscal year from the general fund to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account established for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.

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

Sec. 3. Minnesota Statutes 2020, section 16B.24, subdivision 5, is amended to read:

Subd. 5. Renting out state property. (a) Authority. The commissioner may rent out state property, real or personal, that is not needed for public use, if the rental is not otherwise provided for or prohibited by law. The property may not be rented out for more than five years at a time without the approval of the State Executive Council and may never be rented out for more than 25 years. A rental agreement may provide that the state will reimburse a tenant for a portion of capital improvements that the tenant makes to state real property if the state does not permit the tenant to renew the lease at the end of the rental agreement.

(b) Restrictions. Paragraph (a) does not apply to state trust fund lands, other state lands under the jurisdiction of the Department of Natural Resources, lands forfeited for delinquent taxes, or lands acquired under section 298.22.

(c) Rental of living accommodations. The commissioner shall establish rental rates for all living accommodations provided by the state for its employees. Money collected as rent by state agencies pursuant to this paragraph must be deposited in the state treasury and credited to the general fund.

(d) Lease of space in certain state buildings to state agencies. The commissioner may lease portions of the state-owned buildings under the custodial control of the commissioner to state agencies ~~and~~, the court administrator on behalf of the judicial branch of state government, the house of representatives, and the senate, and charge rent on the basis of space occupied. Any space leased by the commissioner must adequately meet the expected health, life safety, and security needs of the lessee. Notwithstanding any law to the contrary, all money collected as rent pursuant to the terms of this section shall be deposited in the state treasury. Money collected as rent to recover the bond interest costs of a building funded from the state bond proceeds fund shall be credited to the general fund. Money collected as rent to recover the depreciation costs of a building funded from the state bond proceeds fund and money collected as rent to recover capital expenditures from capital asset preservation and replacement

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appropriations and statewide building access appropriations shall be credited to a segregated asset preservation and replacement account in a special revenue fund. Fifty percent of the money credited to the account each fiscal year must be transferred to the general fund. Money collected as rent from a legislative branch lessee must be credited to a segregated facilities account designated for that lessee, and amounts credited to each account are appropriated to the commissioner of administration to finance capital expenditures that address identified critical health, life safety, and security needs of the facilities occupied by that lessee. The remaining money in the account is appropriated to the commissioner to be expended for asset preservation projects as determined by the commissioner. Money collected as rent to recover the depreciation and interest costs of a building built with other state dedicated funds shall be credited to the dedicated fund which funded the original acquisition or construction. All other money received shall be credited to the general services revolving fund.

(e) Lease of space in Andersen and Freeman buildings. The commissioner may lease space in the Elmer L. Andersen and Orville L. Freeman buildings to state agencies and charge rent on the basis of space occupied. Money collected as rent under this paragraph to fund future building repairs must be credited to a segregated account for each building in the special revenue fund and is appropriated to the commissioner to make the repairs. When the state acquires title to each building, the account for that building must be abolished and any balance remaining in the account must be transferred to the appropriate asset preservation and replacement account created under paragraph (d).

Sec. 4. [16B.2406] CAPITOL AREA BUILDING SECURITY ACCOUNT.

Subdivision 1. Account established; appropriation and use of funds. (a) A Capitol Area Building Security Account is established in the special revenue fund. The commissioner of management and budget shall deposit the proceeds from the lease revenue bonds or certificates of participation received under subdivision 2 to the account.

(b) Funds in the account are appropriated to the commissioner of administration for capital expenditures that address identified critical health, life safety, and security needs of buildings located on the State Capitol complex. The funds may be used for predesign, design, and construction activities necessary to address the identified needs. The commissioner may not authorize construction of the final project design, or of any proposed changes to that design, without the approval of a building's primary tenant.

Subd. 2. Lease-purchase agreement authorization. The commissioner of administration may enter into a long-term lease-purchase agreement for a term of up to 25 years, for activities authorized by subdivision 1 for which appropriations are available. The commissioner of management and budget may issue lease revenue bonds or certificates of participation associated with the lease-purchase agreement. The lease-purchase agreement must not be terminated, except for nonappropriation of money. The lease-purchase agreement must provide the state with a unilateral right to purchase the leased equipment or premises at specified times for specified amounts. The lease‑purchase agreement is exempt from section 16B.24, subdivisions 6 and 6a.

Subd. 3. Schedule of activities; legislative report. (a) Consistent with existing requirements of law related to construction and improvement of state buildings, the commissioner must take steps to ensure that improvements to address identified critical needs for which appropriations are available are completed in a timely manner.

(b) The commissioner must submit a report to the speaker of the house, the president of the senate, and the minority leaders of the house of representatives and senate no later than January 1, 2022, detailing the estimated costs, along with the expected timeline for design, construction, and completion of necessary work to address identified needs."

Page 37, line 29, delete "FUND" and insert "ACCOUNT"

Page 38, line 11, delete "fund" and insert "account" and after "established" insert "in the bond proceeds fund"

Page 38, line 14, delete "Fund" and insert "Account"

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Page 38, line 15, delete "fund" and insert "account"

Page 43, line 30, delete "State" and insert "marked Trunk"

Page 49, after line 12, insert:

"Sec. 14. Laws 2017, First Special Session chapter 8, article 1, section 20, subdivision 8, is amended to read:

Subd. 8. Eagle Bend High School

1,500,000

For a grant to Independent School District No. 786, Bertha-Hewitt, or other independent school district to which that portion of the territory of former Independent School District No. 2759, Eagle Valley, containing the city of Eagle Bend ~~school is attached by action of the Todd County Board,~~ to predesign, design, prepare, and ~~develop~~ renovate the Eagle Bend High School building ~~site, including demolition of buildings and infrastructure,~~ to remove life safety hazards ~~and~~ to facilitate the redevelopment and reuse of the site and buildings. The city may contract or partner with a third party to manage the renovation and to operate the renovated housing project subject to Minnesota Statutes, section 16A.695. This appropriation does not require a nonstate contribution. Notwithstanding Minnesota Statutes, section 16A.642, the bond authorization and appropriation of bond proceeds for this project are available until December 31, 2024.

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

Page 49, after line 26, insert:

"Sec. 16. Laws 2017, First Special Session chapter 8, article 1, section 20, subdivision 15, is amended to read:

Subd. 15. Minneapolis - Norway House

5,000,000

For a grant to the city of Minneapolis to acquire land and predesign, design, construct, furnish, and equip a conference and event center at 913 East Franklin Avenue and adjacent property in Minneapolis to celebrate the culture of Norway and American Norwegians, subject to Minnesota Statutes, section 16A.695. This appropriation is not available until the commissioner of management and budget determines that an amount sufficient to complete the project is committed from nonstate sources. This appropriation is available until December 31, 2026.

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

Page 59, delete section 25

Page 61, after line 12, insert:

"Sec. 32. Laws 2020, Fifth Special Session chapter 3, article 1, section 20, subdivision 7, is amended to read:

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Subd. 7. Minnesota Correctional Facility - Togo

2,600,000

To design, construct, and equip a new sewer treatment system at the Minnesota Correctional Facility - Togo. The system includes but is not limited to settling ponds, pumping stations, and other underground infrastructure improvements associated with the sewer system complying with all Pollution Control Agency and code requirements. As part of the project, the existing septic system/drain field shall be decommissioned. Notwithstanding Minnesota Statutes, section 16B.24, subdivision 6, the commissioner of administration may enter into a lease and subsequent lease amendments with a term sufficient to be at least 125 percent of the useful life of any improvements to be constructed on the Minnesota Correctional Facility - Togo site.

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

Page 64, lines 13 and 14, reinstate the stricken language and delete the new language

Page 64, line 16, delete everything after the period and insert "Amounts remaining after substantial completion of this project may be used to construct the wastewater treatment facility."

Page 64, delete lines 17 to 19

Page 70, line 29, delete "and" and before the second comma, insert "; and 16A.967, subdivision 2b"

Page 70, after line 29, insert:

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

Renumber the sections in sequence and correct the internal references

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

Moran from the Committee on Ways and Means to which was referred:

H. F. No. 506, A bill for an act relating to capital investment; modifying prior appropriations for grants to municipalities; amending Laws 2020, Fifth Special Session chapter 3, article 1, sections 20, subdivision 5; 22, subdivisions 18, 19, 23.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Moran from the Committee on Ways and Means to which was referred:

H. F. No. 728, A bill for an act relating to capital investment; authorizing the issuance of redevelopment appropriation bonds for areas damaged by civil unrest; appropriating money; requiring a report; proposing coding for new law in Minnesota Statutes, chapter 16A.

Reported the same back with the following amendments:

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Delete everything after the enacting clause and insert:

"Section 1. PURPOSE.

The financing provided by Minnesota Statutes, section 16A.962, is for the public purpose of redeveloping the areas in Minneapolis and St. Paul damaged in May and June of 2020, by civil unrest which led to severe damage or destruction to small businesses, private property, and public property in Minneapolis and St. Paul. The public purpose of the redevelopment is to create or retain jobs, preserve the tax base and support enterprise development and wealth creation for persons adversely affected by long-standing structural racial discrimination and poverty, and prevent displacement of small businesses owned by people of color and indigenous people.

Sec. 2. [16A.962] REDEVELOPMENT APPROPRIATION BONDS.

Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.

(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of the state payable during a biennium from one or more of the following sources:

(1) money appropriated by law from the general fund in any biennium for debt service due with respect to obligations described in subdivision 2, paragraph (a);

(2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);

(3) payments received for that purpose under agreements and ancillary arrangements described in subdivision 2, paragraph (d); and

(4) investment earnings on amounts in clauses (1) to (3).

(d) "Debt service" means the amount payable in any biennium of principal, premium, if any, and interest on appropriation bonds, and the fees, charges, and expenses related to the bonds.

(e) "Eligible area" means an area in Minneapolis or St. Paul adversely affected by civil unrest during the events leading up to and surrounding the peacetime emergency declared in Emergency Executive Order 20-64.

(f) "Redevelopment" may include the acquisition of real property; site preparation; predesign, design, engineering, repair, or renovation of facilities damaged during the civil unrest and construction of buildings, infrastructure, and related site amenities, including energy conservation improvements as defined in section 216B.241, subdivision 1, paragraph (e); landscaping; street-scaping; land-banking for future development or redevelopment; or financing any of these activities taken on by a private party pursuant to an agreement with the city. Redevelopment does not include project costs eligible for compensation or assistance available through insurance policies or from other organizations or government agencies.

Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the limitations of this subdivision, the commissioner may sell and issue appropriation bonds of the state under this section for public purposes as provided by law, including for the purposes of capitalizing an account in the city of Minneapolis' commercial property development fund and an account in the St. Paul housing and redevelopment authority's funds to pay for redevelopment in the eligible areas. Appropriation bonds may be sold and issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient money to the commissioner of employment and economic development under subdivision 7, not to exceed $300,000,000 net of costs of issuance, for the purposes as provided under this subdivision; to pay debt service including capitalized interest, costs of issuance, and costs of credit enhancement; or to make payments under other agreements entered into under paragraph (d).

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(b) Proceeds of the appropriation bonds must be credited to a special appropriation redevelopment bond proceeds fund in the state treasury. All income from investment of the bond proceeds is appropriated to the commissioner for the payment of principal and interest on the appropriation bonds.

(f) The appropriation bonds are not subject to chapter 16C.

(b) Every appropriation bond shall include a conspicuous statement of the limitation established in subdivision 6.

(d) Appropriation bonds must bear interest at a fixed or variable rate.

(e) Notwithstanding any other law, appropriation bonds issued under this section shall be fully negotiable.

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section 11A.24. The income earned or realized on the investment may also be applied to the payment of the appropriation bonds to be refunded or interest or premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the proceeds and any investment income may be returned to the general fund or, if applicable, the special appropriation redevelopment bond proceeds fund for use in any lawful manner. All refunding bonds issued under this subdivision must be prepared, executed, delivered, and secured by appropriations in the same manner as the appropriation bonds to be refunded.

(1) the state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies;

(3) personal representatives, guardians, trustees, and other fiduciaries.

Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds issued under subdivision 2, paragraph (a), and interest credited to the special appropriation redevelopment bond proceeds fund are appropriated as follows:

(1) to the commissioner of employment and economic development for a grant of $200,000,000 to the city of Minneapolis and a grant of $100,000,000 to the Saint Paul Housing and Redevelopment Authority, and as further specified in subdivision 2, paragraph (a); and

(2) to the commissioner of management and budget for debt service on the bonds including capitalized interest, nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and payments under any agreements entered into under subdivision 2, paragraph (d), as permitted by state and federal law.

Subd. 8. Appropriation for debt service and other purposes. An amount needed to pay principal and interest on appropriation bonds issued under subdivision 2, paragraph (a), is appropriated each fiscal year from the general fund to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account established for such purpose in the special appropriation redevelopment bond proceeds fund. The appropriation is available beginning in fiscal year 2022 and remains available through fiscal year 2043.

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Subd. 9. Waiver of immunity. The waiver of immunity by the state provided for by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary contracts to which the commissioner is a party.

Subd. 10. Grant requirements. In addition to any other terms in a grant agreement with the commissioner of employment and economic development, a grant of special appropriation redevelopment bonds proceeds must:

(1) require the city to segregate the grant money in a separate account;

(2) require the payment to the state, for deposit into the bond payments account established for such purpose in the special appropriation redevelopment bond proceeds fund, the proceeds of the sale of any property financed with a grant under this section in an amount up to the amount of the grant, if the sale of the property occurs during the term of the grant agreement, except that a sale of a property to a qualified person as determined by the grant recipient's program or project funding criteria is exempt from the requirements of this clause;

(3) require each grant recipient in subdivision 7, to enhance economic opportunities for long-term residents, to prioritize businesses owned or operated by a minority person as defined in section 116M.14, and to prioritize the retention and rebuilding of impacted businesses and infrastructure in the eligible area;

(4) require that all new and substantially reconstructed buildings receiving grant money, which includes projects encompassing at least 10,000 square feet or no less than the replacement of the mechanical, ventilation, or cooling system of a building or a building section, meet the building performance standards described in section 216B.241, subdivision 9; and

(5) beginning on December 1, 2022, and each year thereafter until all grant money has been expended, require an annual report to the commissioner of employment and economic development from each grant recipient on the expenditures made from the accounts funded with a grant made under this section in the form that the commissioner prescribes and include any documentation of and supporting information regarding the expenditures that the commissioner requires. This report must include any measures of success toward achieving the goals and standards outlined in clauses (3) and (4).

Subd. 11. Audit. The commissioner of employment and economic development must review the report of expenditures made by the cities.

Subd. 12. Prevailing wage requirement. During the construction, installation, remodeling, and repair of any project funded by bonds sold under this section, laborers and mechanics at the site must be paid the prevailing wage rate as defined in section 177.42, subdivision 6, and the project is subject to the requirements of sections 177.30 and 177.41 to 177.44.

Subd. 13. Zoning exemption. (a) A property financed with a grant under this section is exempt from minimum height and minimum floor area ratio standards through June 30, 2025, provided that a proposed redevelopment on a property that conformed to such standards on May 1, 2020, is subject to all other applicable zoning standards.

(b) Notwithstanding section 462.357, subdivision 1e, or municipal ordinance, a property financed with a grant under this section may apply through June 30, 2025, for a building permit to reconstruct a nonconforming use or nonconforming structure that is comparable to a use or structure that existed on the property on May 1, 2020.

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(c) A property subject to the zoning and building permit exemptions in this subdivision is exempt from public hearing processes to obtain approval unless the request expands a nonconforming use. The city may impose reasonable conditions upon a zoning or building permit to mitigate any newly created impact on adjacent property.

Subd. 14. Report to the legislature. By December 31, 2023, and every December 31 thereafter, the commissioner of employment and economic development must submit a report as required under section 3.195 that details the use of money under this section, including any measures of success toward achieving the goals under subdivision 10, clause (3). A copy of this report must also be sent to the chairs and ranking minority members of the committees of the house of representatives and the senate having jurisdiction over economic development and capital investment.

Sec. 3. APPROPRIATIONS TO ONLY COUNT ONCE.

If an appropriation in this act is enacted more than once in the 2021 legislative session, the appropriation must be given effect only once.

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

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

Moran from the Committee on Ways and Means to which was referred:

S. F. No. 519, A bill for an act relating to corrections; requiring that certain information, assistance, services, and medications be provided to inmates upon release from prison; providing identification cards for released inmates; requiring a homelessness mitigation plan and annual reporting on information relating to homelessness; amending Minnesota Statutes 2020, section 171.06, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 241.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 337, 506 and 728 were read for the second time.

SECOND READING OF SENATE BILLS

S. F. No. 519 was read for the second time.

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INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Murphy introduced:

H. F. No. 2632, A bill for an act relating to elections; modifying technical redistricting publishing and reporting requirements; amending Minnesota Statutes 2020, section 2.91, subdivision 1.

The bill was read for the first time and referred to the Committee on Redistricting.

Bennett introduced:

H. F. No. 2633, A bill for an act relating to the State Fire Code; adding fire safety requirements for rural event venues; requiring inspections by the state fire marshal of rural event venues; creating a dedicated account in the special revenue fund; appropriating money; amending Minnesota Statutes 2020, section 299F.391, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapter 299F.

The bill was read for the first time and referred to the Committee on Public Safety and Criminal Justice Reform Finance and Policy.

Freiberg introduced:

H. F. No. 2634, A bill for an act relating to health; removing an exemption from immunizations; amending Minnesota Statutes 2020, section 121A.15, subdivision 3.

The bill was read for the first time and referred to the Committee on Education Policy.

Morrison introduced:

H. F. No. 2635, A bill for an act relating to taxation; gross revenues; creating a health insurance claims assessment; proposing coding for new law in Minnesota Statutes, chapter 295.

The bill was read for the first time and referred to the Committee on Taxes.

Morrison introduced:

H. F. No. 2636, A bill for an act relating to natural resources; modifying financial assurance requirements for nonferrous permit to mine; amending Minnesota Statutes 2020, sections 93.481, subdivision 1; 93.49.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.

Lillie introduced:

H. F. No. 2637, A bill for an act relating to arts and cultural heritage; appropriating money for the cultural community rescue restart grant program; requiring a report.

The bill was read for the first time and referred to the Committee on Legacy Finance.

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Petersburg introduced:

H. F. No. 2638, A bill for an act relating to agriculture; making changes to the agricultural land preservation program; amending Minnesota Statutes 2020, sections 40A.11, subdivision 1; 40A.18, subdivision 2.

The bill was read for the first time and referred to the Committee on Agriculture Finance and Policy.

Kresha introduced:

H. F. No. 2639, A bill for an act relating to transportation; appropriating money to conduct a corridor study and construct a best alternative project in Little Falls Township; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Capital Investment.

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Madam Speaker:

I hereby announce the adoption by the Senate of the following Senate Concurrent Resolution, herewith transmitted:

Senate Concurrent Resolution No. 14, A Senate concurrent resolution relating to adjournment of the Senate and House of Representatives until 2022.

Cal R. Ludeman, Secretary of the Senate

The concurrent resolution was referred to the Committee on Rules and Legislative Administration.

Winkler moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by Speaker pro tempore Moller.

CALENDAR FOR THE DAY

Garofalo was excused for the remainder of today's session.

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H. F. No. 809, A bill for an act relating to public safety; making technical change to identity theft crime; amending Minnesota Statutes 2020, section 609.527, subdivision 3.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 130 yeas and 0 nays as follows:

Those who voted in the affirmative were: