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S.F. No. 4013 - Governor's Bonding Bill
 
Author: Senator David H. Senjem
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: April 26, 2018



 

Article 1 appropriates money for specified purposes as detailed on Casey Muhm’s spreadsheet.

Article 2 [Miscellaneous]

Sections 1 to 3 change permitted uses of the productivity loan account, modify the membership of the committee that approves loans from the account, and make conforming changes to the name of the fund and the committee.

Section 1 [Building Efficiency Revolving Loan Fund] changes an existing

“productivity loan account” to a “building efficiency revolving loan fund” and changes the permitted uses of money in the fund.  Under current law, the money in the account is loaned to agencies to finance agency projects that result in reduced operating costs or increased revenues for a state agency.  Section 1 provides for the loans to be made to agencies to finance agency projects that result in energy or water savings or other operating cost reductions.

Section 2 [Committee] removes the commissioners of management and budget and revenue from, and adds the commissioners of commerce and the Pollution Control Agency to, the membership of the Productivity Loan Committee, and makes a conforming change to the name of the committee.

Section 3 [Repayment] is a conforming change to the name of the fund.

Sections 4 to 7 obligate the state to pay the debt service on up to $10,000,000 in bonds that the University of Minnesota may issue to finance the design phase of a clinical research facility on the Twin Cities campus of the University of Minnesota. Section 6 appropriates up to $749,000 from the general fund annually for 21 years.  The appropriation is made to the commissioner of management and budget for transfer to the University of Minnesota Board of Regents. The debt issued by the University of Minnesota is not backed by the full faith and credit of the state.

Section 8 [Transportation Facilities Capital Program] creates a transportation facilities capital program through which the commissioner of transportation will prioritize eligible projects to be funded by appropriations for the program from trunk highway bond proceeds or other funds.

Subdivision 1 [Establishment; accounts] specifies that eligible projects must support the programmatic mission of the department, extend the useful life of existing buildings; or renovate or construct facilities to meet the department’s current and future operational needs.

Subdivision 2 [Standards] notes provisions in the constitution regarding trunk highway bonds, states that the legislature assumes many projects for the public highway system that are within the meaning of the Minnesota Constitution and shall be financed more efficiently and economically under the program than by direct appropriations for specific projects.  Subdivision 2 requires the commissioner of transportation to prioritize allocation of funds for eligible projects using criteria specified in subdivision 4.  Money allocated to a specific project by law must be allocated as provided by law.

Subdivision 3 [Eligible expenditures; limitations] sets requirements for eligibility for funding under this program.  A project must be a capital building asset owned or to be owned by the state.  Eligible projects include acquisition of land and buildings, and the predesign, engineering, construction, furnishing, and equipping of district headquarter buildings, truck stations, salt storage or other unheated storage buildings, deicing and anti-icing facilities, fuel dispensing facilities, highway rest areas, and vehicle weight and inspection stations.

Subdivision 4 [Criteria for priorities] specifies criteria the commissioner of transportation must consider in prioritizing projects.

Section 9 [Rail Service Improvement Accounts] adds a second rail service improvement account in the bond proceeds fund. Money in the account may only be expended for specified rail service improvements  that are eligible to be funded with the proceeds from the sale of general obligation bonds under either of two constitutionally specified categories: (1) to acquire and better public land and buildings or (2) to improve and rehabilitate railroad rights-of-way and other rail facilities whether public or private.

Sections 10 to 12 make certain state contracting requirements relating to affirmative action plans applicable to projects funded with general obligation bonds where the contracting entity is a state officer, agency, the University of Minnesota, the Minnesota Historical Society, or any county, home rule charter or statutory city, school district, special purpose district, or other public entity or any officer or employee thereof.

Section 13 [Definitions] adds definitions of “senior” and “senior housing” and eliminates definitions for “abandoned property” and “foreclosed property” in a section of statute that authorizes the Minnesota Housing Finance Authority to issue housing infrastructure bonds.

Section 14 [Additional Authorization] authorizes the Minnesota Housing Finance Agency to issue $100,000,000 in housing infrastructure bonds.

Section 15 [Additional Appropriation] appropriates up to $4,000,000 in fiscal year 2021 and up to $8,000,000 each year thereafter to pay debt service on the appropriation bonds issued under the authorization in section 14.

Sections 16 to 23 modify appropriations made in bonding bills in earlier years.  These modifications are to the description of the permitted use of the appropriation and not to the amount appropriated.

Section 16 modifies a 2009 appropriation for veterans cemeteries to facilitate federal reimbursement and to extend the appropriation until December 31, 2022.

Section 17 modifies a 2014 appropriation for a residence hall on the Minnesota State Academy for the Deaf campus to permit use of the unspent portion on asset preservation.

Section 18 modifies a 2014 appropriation to permit use of the unspent portion on a project at the St. Cloud correctional facility that includes the intake unit and loading dock.

Section 19 modifies a 2017 appropriation to correct the total appropriated for the subdivision.

Section 20 modifies a 2017 appropriation of the description of the project involving Highway 23 and Highway 54 in Anoka County.

Section 21 modifies a 2017 appropriation to permit use of the appropriation for the Grand Rapids pedestrian bridge for construction.

Section 22 modifies a 2017 appropriation to the appropriation for a project at the correctional facility in St. Cloud.  This modification permits the appropriation to be used for hazardous materials abatement, site improvements, and utility infrastructure work, and to renovate, construct, furnish, and equip building additions and renovation for the laundry, warehouse, canteen, property, and storage areas, as well as the intake and loading dock areas, and for security.

Section 23 modifies a 2017 appropriation for the Fort Snelling visitor service and program facilities to permit use of the unspent portion for the next phase of the project, including demolition of the existing visitor center and to renovate, construct, furnish, and equip a new visitor center.

 
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