1.1.................... moves to amend H.F. No. 6 as follows:
1.2Page 4, after line 32, insert:

1.3    "Sec. 6. Minnesota Statutes 2014, section 469.40, subdivision 11, is amended to read:
1.4    Subd. 11. Public infrastructure project. (a) "Public infrastructure project" means
1.5a project financed in part or in whole with public money in order to support the medical
1.6business entity's development plans, as identified in the DMCC development plan. A
1.7public infrastructure project may:
1.8(1) acquire real property and other assets associated with the real property;
1.9(2) demolish, repair, or rehabilitate buildings;
1.10(3) remediate land and buildings as required to prepare the property for acquisition
1.11or development;
1.12(4) install, construct, or reconstruct elements of public infrastructure required to
1.13support the overall development of the destination medical center development district
1.14including, but not limited to, streets, roadways, utilities systems and related facilities,
1.15utility relocations and replacements, network and communication systems, streetscape
1.16improvements, drainage systems, sewer and water systems, subgrade structures and
1.17associated improvements, landscaping, façade construction and restoration, wayfinding
1.18and signage, and other components of community infrastructure;
1.19(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
1.20to encourage intermodal transportation and public transit;
1.21(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
1.22recreational facilities, facilities to promote tourism and hospitality, conferencing and
1.23conventions, and broadcast and related multimedia infrastructure;
1.24(7) make related site improvements including, without limitation, excavation,
1.25earth retention, soil stabilization and correction, and site improvements to support the
1.26destination medical center development district;
1.27(8) prepare land for private development and to sell or lease land;
2.1(9) provide costs of relocation benefits to occupants of acquired properties; and
2.2(10) construct and equip all or a portion of one or more suitable structures on land
2.3owned by the city for sale or lease to private development; provided, however, that the
2.4portion of any structure directly financed by the city as a public infrastructure project must
2.5not be sold or leased to a medical business entity.
2.6(b) A public infrastructure project is not a business subsidy under section 116J.993.
2.7(c) Public infrastructure project includes the preparation and modification of
2.8the development plan under section 469.43, and the cost of that preparation and any
2.9modification is a capital cost of the public infrastructure project.

2.10    Sec. 7. Minnesota Statutes 2014, section 469.44, subdivision 5, is amended to read:
2.11    Subd. 5. Project implementation before plan adoption. The city may exercise the
2.12powers under subdivision 3 with respect to any public infrastructure project commenced
2.13within the area that will be in the destination medical center development district after June
2.1422, 2013, but before the development plan is adopted subject to approval by the corporation.
2.15Actions taken under this authority must be approved by the corporation to be credited
2.16against the local contribution required under section 469.47, subdivision 4, or to qualify
2.17for reimbursement of the city out of state aid paid under section 469.47, subdivision 3 or 5.

2.18    Sec. 8. Minnesota Statutes 2014, section 469.47, subdivision 1, is amended to read:
2.19    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
2.20have the meanings given them.
2.21(b) "Commissioner" means the commissioner of employment and economic
2.22development.
2.23(c) "Construction projects" means:
2.24(1) for expenditures by a medical business entity, construction of buildings in the
2.25city for which the building permit was issued after June 30, 2013; and
2.26(2) for any other expenditures, construction of privately owned buildings and other
2.27improvements that are undertaken pursuant to or as part of the development plan and are
2.28located within a medical center development district.
2.29(d) "Expenditures" means expenditures made by a medical business entity or by an
2.30individual or private entity on construction projects for the capital cost of the project
2.31including, but not limited to:
2.32(1) design and predesign, including architectural, engineering, and similar services;
2.33(2) legal, regulatory, and other compliance costs of the project;
3.1(3) land acquisition, demolition of existing improvements, and other site preparation
3.2costs;
3.3(4) construction costs, including all materials and supplies of the project; and
3.4(5) equipment and furnishings that are attached to or become part of the real property.
3.5Expenditures excludes supplies and other items with a useful life of less than a
3.6year that are not used or consumed in constructing improvements to real property or
3.7are otherwise chargeable to capital costs.
3.8(e) "Qualified expenditures" has the following meaning. In the first year in
3.9which aid is paid under this section, qualified expenditures for the year" means the
3.10total certified expenditures since June 30, 2013, through the end of the preceding year,
3.11minus $200,000,000. For subsequent years, qualified expenditures means the certified
3.12expenditures for the preceding year.
3.13(f) "Transit costs" means the portions of a public infrastructure project that are for
3.14public transit intended primarily to serve the district, such as transit stations, equipment,
3.15rights-of-way, and similar costs.

3.16    Sec. 9. Minnesota Statutes 2014, section 469.47, subdivision 3, is amended to read:
3.17    Subd. 3. General state infrastructure aid. (a) General state infrastructure aid may
3.18not be paid out under this section until total expenditures exceed $200,000,000.
3.19(b) The amount of the general state infrastructure aid for a fiscal year equals the sum
3.20of qualified expenditures for the year, as certified by the commissioner, multiplied by 2.75
3.21percent. The maximum amount of state aid payable in any year is limited to no more
3.22than $30,000,000. If the aid entitlement for the year exceeds the maximum annual limit,
3.23the excess is an aid carryover to later years. The carryover aid must be paid in the first
3.24year in which the aid entitlement for the current year is less than the maximum annual
3.25limit, but only to the extent the carryover, when added to the current year aid, is less
3.26than the maximum annual limit. If the commissioner determines that the city has made
3.27the required matching local contribution under subdivision 4, the commissioner must pay
3.28to the city the amount of general state infrastructure aid for the year by September 1. If
3.29the commissioner determines that the city has not made the full required matching local
3.30contribution for the year, the commissioner must pay only the aid permitted under the
3.31agreement for the matching contribution made and any unpaid amount is a carryover aid.
3.32The carryover aid must be paid in the first year after the required matching contribution
3.33is made and in which the aid entitlement for the current year is less than the maximum
3.34annual limit, but only to the extent the carryover, when added to the current year aid, is
3.35less than the maximum annual limit.
4.1(c) (b) The city must use general state infrastructure aid it receives under this
4.2subdivision for improvements and other capital costs related to the public infrastructure
4.3projects approved or adopted by the corporation, other than transit costs. The city must
4.4maintain appropriate records to document the use of the funds under this requirement.
4.5(d) (c) The commissioner, in consultation with the commissioner of management
4.6and budget, and representatives of the city and the corporation, must establish a total limit
4.7on the amount of state aid payable under this subdivision that will be adequate to finance,
4.8in combination with the local contribution, $455,000,000 of general public infrastructure
4.9projects.

4.10    Sec. 10. Minnesota Statutes 2014, section 469.47, subdivision 4, is amended to read:
4.11    Subd. 4. General aid; local matching contribution. In order to qualify for general
4.12state infrastructure aid, the city must enter a written agreement with the commissioner
4.13that requires the city to make a qualifying local matching contribution to pay for
4.14$128,000,000 of the cost of public infrastructure projects approved by the corporation,
4.15including financing costs, using funds other than state aid received under this section.
4.16The $128,000,000 required local matching contribution is reduced by one-half of the
4.17amounts the city pays for operating and administrative costs of the corporation up to a
4.18maximum amount agreed to by the board and the city. The agreement must provide for the
4.19manner, timing, and amounts of the city contributions, including the city's commitment
4.20for each year. Notwithstanding any law to the contrary, the agreement may provide that
4.21the city contributions for public infrastructure project principal costs may be made over a
4.2220-year period at a rate not greater than $1 from the city for each $2.55 from the state.
4.23The local match contribution may be provided by the city from any source identified in
4.24section 469.45 and any other local tax proceeds or other funds from the city and may
4.25include providing funds to prepare the development plan, to assist developers undertaking
4.26projects in accordance with the development plan, or by the city directly undertaking
4.27public infrastructure projects in accordance with the development plan, provided the
4.28projects have been approved by the corporation. City contributions that are in excess of
4.29this ratio carry forward and are credited toward subsequent years. The commissioner and
4.30city may agree to amend the agreement at any time in light of new information or other
4.31appropriate factors. The city may enter into arrangements with the county to pay for or
4.32otherwise meet the local matching contribution requirement. Any public infrastructure
4.33project within the area that will be in the destination medical center development district
4.34whose implementation is started or funded by the city after June 22, 2013, but before
4.35the development plan is adopted, as provided by section 469.46, subdivision 5 469.43,
5.1subdivision 1, will be included for the purposes of determining the amount the city has
5.2contributed as required by this section and the agreement with the commissioner, subject
5.3to approval by the corporation.

5.4    Sec. 11. Minnesota Statutes 2014, section 469.47, subdivision 5, is amended to read:
5.5    Subd. 5. State transit aid. (a) The city qualifies for state transit aid under this section
5.6if the county contributes the required local matching contribution under subdivision 6 or the
5.7city or county has agreed to make an equivalent contribution out of other funds for the year.
5.8(b) If the city qualifies for aid under paragraph (a), the commissioner must pay the
5.9city the state transit aid in the amount calculated under this paragraph. The amount of the
5.10state transit aid for a fiscal year equals the sum of qualified expenditures for the year, as
5.11certified by the commissioner for the prior year, multiplied by 0.75 percent, reduced by
5.12the amount of the local contribution under subdivision 6. The maximum amount of state
5.13transit aid payable in any year is limited to no more than $7,500,000. If the aid entitlement
5.14for the year exceeds the maximum annual limit, the excess is an aid carryover to later
5.15years. The carryover aid must be paid in the first year in which the aid entitlement for the
5.16current year is less than the maximum annual limit, but only to the extent the carryover,
5.17when added to the current year aid, is less than the maximum annual limit. If the
5.18commissioner determines that the city or county has not made the full required matching
5.19local contribution for the year, the commissioner must pay state aid only in proportion to
5.20the amount of the matching contribution made for the year and any unpaid amount is a
5.21carryover aid. The carryover aid must be paid in the first year after the required matching
5.22contribution for that prior year is made and in which the aid entitlement for the current
5.23year is less than the maximum annual limit, but only to the extent the carryover, when
5.24added to the current year aid, is less than the maximum annual limit.
5.25(c) The commissioner, in consultation with the commissioner of management and
5.26budget, and representatives of the city and the corporation, must establish a total limit on
5.27the amount of state aid payable under this subdivision that will be adequate to finance, in
5.28combination with the local contribution, $116,000,000 of transit costs.
5.29(d) The city must use state transit aid it receives under this subdivision for transit
5.30costs. The city must maintain appropriate records to document the use of the funds under
5.31this requirement."
5.32Page 5, after line 4, insert:

5.33    "Sec. 14. EFFECTIVE DATE.
5.34Sections 6 to 11 are effective after the governing body of the city of Rochester
5.35and its chief clerical officer timely comply with Minnesota Statutes, section 645.021,
6.1subdivisions 2 and 3, and apply retroactively to the original effective dates of the
6.2provisions of law that are amended."
6.3Renumber the sections in sequence and correct the internal references
6.4Amend the title accordingly