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H.F. No. 1752 - Capital Improvement Appropriations and Bond Sale Authorization
 
Author: Senator David H. Senjem
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: May 7, 2012



 

This summary reflects H.F. No. 1752, as heard on the House floor on May 7, 2012.

Section 1 [Capital Improvement Appropriations] summarizes the appropriations made in this act from bond proceeds.

Sections 2-25 make certain appropriations to state agencies for specified purposes.

Section 26 [Bond Sale Authorization] authorizes the sale and issuance of general obligation bonds in the specified amount.  This section authorizes the sale and issuance of bonds in a specified amount with the proceeds credited to a bond proceeds account in the state transportation fund.  

Section 27 [Capitol Restoration Project].

Subdivision 1 [Consultation and collaboration] requires the Commissioner of Administration to consult with representatives designated by the Governor, the majority leader of the Senate, the speaker of the House, the Chief Justice of the Minnesota Supreme Court, the Attorney General, the Capitol Area and Architectural Planning Board, and the director of the Minnesota Historical Society regarding design and restoration of the Capitol building.

Subdivision 2 [Changes to space allocation] precludes changes to the current amount and location of space within the Capitol building for the House, Senate, Supreme Court, and constitutional officers of the building without their respective approval.

Subdivision 3 [Sequencing] requires that construction work be sequenced to maintain occupancy in the House of Representatives and Senate chambers during regular legislative sessions.

Subdivision 4 [Duties of commissioner] requires the Commissioner of Administration to submit a space recommendation report with input from certain stakeholders.  Certain appropriations for Capitol renovations are contingent on approval of the space recommendations by the Governor, the secretary of the Senate, and the chief clerk of the House of Representatives.  The commissioner must also submit a report describing plans and specifications for restoration of the Capitol building.  Before certain appropriations can be spent, the plans must be approved by the Governor, secretary of the Senate, and the chief clerk of the House.  This subdivision grants the commissioner authority and responsibilities related to the Capitol renovation project.

Section 28 [Report on Jobs Created or Retained] requires the Commissioner of Management and Budget to report annually on jobs created or retained as a result of capital project funding.  This section requires agencies to provide certain information to the commissioner and identifies information to be included in the commissioner’s report.

Section 29 [Credit of Proceeds] provides for treatment of proceeds for refunding bonds.

Section 30 [Special Accounts; Appropriation] allows the Commissioner of Management and Budget to use proceeds of refunding bonds to reduce par amount of bonds issue at the time of sale.

Section 31 [Validation] establishes a validation procedure, with expedited access to a decision from the Minnesota Supreme Court, for pay-for-performance appropriation bonds, authorized in a section of statute enacted in 2011.

Section 32 [Business Development Through Capital Projects Grant Program] establishes a program under DEED for funding capital projects.  This section identifies criteria for the Commissioner of Management and Budget to use in evaluating and prioritizing projects that request funding from bond proceeds.

Section 33 [Transportation Economic Development Infrastructure Program] establishes a program for funding infrastructure improvements and nontrunk highway improvements.  The program funds construction, reconstruction, and infrastructure improvements that promote economic development, increase employment, and improve transportation systems to accommodate private investment and job creation.  The Departments of Transportation and Employment and Economic Development will distribute funds to local units of government for publicly owned infrastructure using specified criteria. 

Section 34 [Housing Infrastructure Bonds Account] permits the Housing Finance Agency to establish a housing infrastructure bond account within the housing development fund. 

Section 35 [Housing Infrastructure Bonds; Authorization; Standing Appropriation] authorizes the Housing Finance Agency to issue $30 million in bonds for:  construction, acquisition, and rehabilitation of supportive housing; acquisition and rehabilitation of foreclosed or abandoned housing to be used for affordable rental housing, and the costs of construction of rental housing on abandoned or foreclosed property where existing structures will be demolishes or removed; acquisition of abandoned or foreclosed property that is attributable to the land to be leased by community land trusts to low- and moderate-income homebuyers; and acquisition and rehabilitation of federally assisted rental housing and for the refinancing of costs of the construction, acquisition, and rehabilitation of federally assisted rental housing.  This section requires the MHFA to give preference for permanent supportive housing to families meeting certain conditions.  These bonds are not general obligation bonds; they are not backed by the full faith, credit and taxing powers of the state.  This section sets an annual appropriation of up to $2.2 million for these purposes.

Sections 36 to 50 amend appropriations that were made from bond proceeds in prior years. No new appropriation is made.

Section 36 [Trail Connections] amends a 2006 appropriation for the Mesabi Trail.  This amendment changes the description of the portion of the Mesabi Trail that is funded with this appropriation and eliminates a requirement of a matching contribution from nonstate sources.

Sections 37 [Cedar Avenue Bus Rapid Transit]; 39 [Cedar Avenue Bus Rapid Transit]; and 43 [Transit Capital Improvement Program] amend appropriations from Laws of 2006, 2008, 2009, and 2011  for Cedar Avenue bus rapid transit to identify entities that may receive the appropriation (Met Council or to the Council to grant to Dakota County, the Dakota County Regional Railroad Authority, or the Minnesota Valley Transit Authority) and to expand the allowable uses of the appropriation.

Section 38 [State Trail Acquisition, Rehabilitation, and Development] amends a 2008 appropriation for Chester Woods Trail to extend its availability to June 30, 2016; for the Minnesota River Trail to the end of 2014; and for the Stagecoach Trail to June 30, 2014.

Section 40 [Systemwide Campus Redevelopment Reuse or Demolition] amends a 2008 appropriation to allow use of unspent funds on construction of a maintenance and storage facility.

Section 41 [Minneapolis Veterans Home Campus] amends a 2008 appropriation for the Minneapolis Veterans Home Campus to allow use of unspent appropriations on purposes specified in 2010 and 2011.

Section 42 [St. Cloud State University – National Hockey Center] amends a 2008 appropriation.  In current law, this appropriation is for a National Hockey Center at St. Cloud State.  This amendment allows this appropriation to be used for HEAPR at St. Cloud State or systemwide.  This section extends the appropriation to June 30, 2016, and exempts SCSU from paying one-third of the debt on any amount of this appropriation that is directed to HEAPR.

Section 44 [Minnesota Sex Offender Program Treatment Facilities – Moose Lake] amends a 2010 appropriation to allow the unspent portion of the appropriation to be spent for asset preservation for the Moose Lake campus of the Minnesota sex offender program.  The asset preservation includes replacement of a water tower and abatement of hazardous materials.

Section 45 [County and Local Preservation Grants] amends a 2010 appropriation for county and local preservation grants by striking an appropriation for a grant to South St. Paul to renovate a Navy hanger.

Section 46 [Normandale Community College] amends a 2011 appropriation for Normandale Community College by removing design and construction of the student services building from the permitted uses for the appropriation.

Section 47 [NHED Mesabi Range Community and Technical College, Iron Range Engineering Program Facilities] amends a 2011 appropriation by removing acquisition of a privately owned housing facility on the campus from the permitted uses for the appropriation.

Section 48 [Transit Capital Improvement Program] amends a 2011 appropriation for transit capital improvement to add the Minnesota Valley Transit Authority to those entities that may receive a grant from the Met Council for money in this appropriation.

Section 49 [Public Facilities Authority, Wastewater Infrastructure Funding Program] amends a 2011 appropriation to exempt an appropriation to Albert Lea for a water and sewer project from certain criteria and requirements for wastewater infrastructure projects.

Section 50 [Bond Sale Schedule] amends the bond sale schedule enacted last year that sets parameters affecting the timing of bond sales.

Section 51 [Lake Superior-Poplar River Water District] creates a Lake Superior-Poplar water district within defined territory as a municipal corporation with certain powers established in current statutes for rural water districts, special assessments, water works, and storm and sanitary sewer systems.  Users are required to pay the costs for all capital and operating expenses except for an initial capital investment funded by the state.  This section does not obligate anyone to purchase, nor entitle anyone or receive, water from the district unless provided otherwise by contract.  This section requires the district to elect a board of directors in a manner specified in this section.  Elections of directors shall be conducted by the Cook County Board of Commissioners.  This section is effective the day after the governing body of Cook County and its clerical officer comply with certain procedural requirements for special laws.

Section 52 [Acquisitions for Canisteo Project] requires the Commissioner of Natural Resources to acquire land and construct a water conveyance system to control the water level from the Canisteo mine pit.  This section authorizes the commissioner to use eminent domain for the acquisition.

Section 53 [Repealer] repeals the limitation that the state’s share of the cost of a port authority project not exceed 50 percent of the nonfederal share of eligible costs.

Section 54 [Effective Date] makes this act effective the day following final enactment.

 

 
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