1.1    .................... moves to amend H. F. No. 886 as follows:
1.2Delete everything after the enacting clause and insert:

1.3
 "Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
1.4    The sums shown in the column under "APPROPRIATIONS" are appropriated from
1.5the bond proceeds fund, or another named fund, to the state agencies or officials indicated,
1.6to be spent for public purposes. Appropriations of bond proceeds must be spent as
1.7authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
1.8and better public land and buildings and other public improvements of the capital nature,
1.9or as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j),
1.10or article XIV. Unless otherwise specified, the appropriations in this act are available until
1.11the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.
1.12
 SUMMARY
1.13
 UNIVERSITY OF MINNESOTA
 $
 36,400,000
1.14
 MINNESOTA STATE COLLEGES AND UNIVERSITIES
 34,520,000
1.15
 EDUCATION
 30,300,000
1.16
 NATURAL RESOURCES
 9,877,000
1.17
 POLLUTION CONTROL AGENCY
 2,500,000
1.18
 BOARD OF WATER AND SOIL RESOURCES
 8,165,000
1.19
 ZOOLOGICAL GARDEN
 1,526,000
1.20
 ADMINISTRATION
 28,240,000
1.21
 PUBLIC SAFETY
 2,500,000
1.22
 TRANSPORTATION
 34,923,000
1.23
 METROPOLITAN COUNCIL
 39,300,000
1.24
 HUMAN SERVICES
 150,000
1.25
 CORRECTIONS
 6,117,000
1.26
 EMPLOYMENT AND ECONOMIC DEVELOPMENT
 60,282,000
1.27
 BOND SALE EXPENSES
 135,000
2.1
 CANCELLATIONS
 (5,282,000)
2.2
 TOTAL
 $
 255,000,000
2.3
 Bond Proceeds Fund (General Fund Debt Service)
 140,282,000
2.4
 Bond Proceeds Fund (User Financed Debt Service)
 1,265,000
2.5
 Maximum Effort School Loan Fund
 30,000,000
2.6
 Trunk Highway Bond Proceeds Account
 33,388,000
2.7
 General Fund
 120,000,000
2.8
 Bond Proceeds Cancellations
 5,282,000
2.9
 APPROPRIATIONS
2.10
 $

2.11
 Sec. 2. UNIVERSITY OF MINNESOTA
 $
2.12
2.13
2.14
 Subdivision 1.To the Board of Regents of
the University of Minnesota for the purposes
specified in this section
 36,400,000
2.15
2.16
 Subd. 2.Higher Education Asset Preservation
and Replacement
 22,000,000
2.17To be spent in accordance with Minnesota
2.18Statutes, section 135A.046.
2.19
 Subd. 3.717 Delaware
 14,400,000
2.20To renovate the building at 717 Delaware
2.21for use as a biomedical science research
2.22facility. This appropriation is intended to
2.23cover approximately 80 percent of the cost
2.24of the project. The remaining costs must be
2.25paid from university sources.

2.26
2.27
 Sec. 3. MINNESOTA STATE COLLEGES
AND UNIVERSITIES
 $
2.28
2.29
2.30
 Subdivision 1.To the Board of Trustees of the
Minnesota State Colleges and Universities for the
purposes specified in this section
 34,520,000
2.31
2.32
 Subd. 2.Higher education asset preservation
and replacement
 30,720,000
2.33This appropriation is for the purposes
2.34specified in Minnesota Statutes, section
3.1135A.046. Of this, $720,000 is for HVAC
3.2replacement and asbestos removal at
3.3the Brooklyn Park campus of Hennepin
3.4Technical College.
3.5
 Subd. 3.Bemidji State University
 2,000,000
3.6To acquire property adjacent to Bemidji State
3.7University.
3.8
3.9
 Subd. 4.Fond du Lac Tribal and Community
College
 1,800,000
3.10To purchase from willing sellers
3.11approximately 3.9 acres in six residential
3.12properties adjacent to the Fond du Lac Tribal
3.13and Community College.
3.14
 Subd. 5.Debt Service
3.15(a) The board shall pay the debt service on
3.16one-third of the principal amount of state
3.17bonds sold to finance projects authorized by
3.18this section, except for higher education asset
3.19preservation and replacement, except that,
3.20where a nonstate match is required, the debt
3.21service is due on a principal amount equal
3.22to one-third of the total project cost, less the
3.23match committed before the bonds are sold.
3.24After each sale of general obligation bonds,
3.25the commissioner of finance shall notify the
3.26board of the amounts assessed for each year
3.27for the life of the bonds.
3.28(b) The commissioner shall reduce the
3.29board's assessment each year by one-third of
3.30the net income from investment of general
3.31obligation bond proceeds in proportion to the
3.32amount of principal and interest otherwise
3.33required to be paid by the board. The board
3.34shall pay its resulting net assessment to the
3.35commissioner of finance by December 1 each
4.1year. If the board fails to make a payment
4.2when due, the commissioner of finance
4.3shall reduce allotments for appropriations
4.4from the general fund otherwise available
4.5to the board and apply the amount of the
4.6reduction to cover the missed debt service
4.7payment. The commissioner of finance
4.8shall credit the payments received from the
4.9board to the bond debt service account in
4.10the state bond fund each December 1 before
4.11money is transferred from the general fund
4.12under Minnesota Statutes, section 16A.641,
4.13subdivision 10.
4.14
 Subd. 6.Unspent Appropriations
4.15(a) Upon substantial completion of a project
4.16authorized in this section and after written
4.17notice to the commissioner of finance, the
4.18Board of Trustees must use any money
4.19remaining in the appropriation for that
4.20project for HEAPR under Minnesota
4.21Statutes, section 135A.046. The Board
4.22of Trustees must report by February 1 of
4.23each even-numbered year to the chairs
4.24of the house and senate committees with
4.25jurisdiction over capital investments and
4.26higher education finance, and to the chairs of
4.27the house Ways and Means Committee and
4.28the senate Finance Committee, on how the
4.29remaining money has been allocated or spent.
4.30(b) The unspent portion of an appropriation
4.31for a project in this section that is complete,
4.32is available for higher education asset
4.33preservation and replacement under this
4.34subdivision, at the same campus as the
4.35project for which the original appropriation
5.1was made and the debt service requirement
5.2under subdivision 5 is reduced accordingly.
5.3Minnesota Statutes, section 16A.642, applies
5.4from the date of the original appropriation to
5.5the unspent amount transferred.

5.6
5.7
 Sec. 4. MINNESOTA DEPARTMENT OF
EDUCATION
 $
 30,300,000
5.8
5.9
5.10
 Subdivision 1.To the commissioner of
education for the purposes specified in this
section.
5.11
5.12
 Subd. 2.Independent School District No. 11,
Anoka-Hennepin
 300,000
5.13For a grant to Independent School District
5.14No. 11, Anoka-Hennepin, to acquire land
5.15adjacent to Riverview Elementary school
5.16and for improvements of a capital nature
5.17to develop and restore wetland and native
5.18prairie habitat on the land.
5.19
5.20
 Subd. 3.Independent School District No. 38,
Red Lake
 30,000,000
5.21This appropriation is from the maximum
5.22effort school loan fund for a capital loan to
5.23Independent School District No. 38, Red
5.24Lake, as provided in Minnesota Statutes,
5.25sections 126C.60 to 126C.72, to design,
5.26construct, renovate, furnish, and equip
5.27school facilities, and for health and safety
5.28capital improvements at the Red Lake
5.29School District. This appropriation is to
5.30first complete the education spaces in the
5.31high school-middle school. Unexpended
5.32funds remaining after completion of the high
5.33school-middle school may be used for the
5.34Red Lake elementary school project.

5.35
 Sec. 5. NATURAL RESOURCES
 $
6.1
6.2
 Subdivision 1.To the commissioner of natural
resources for the purposes specified in this section
 9,877,000
6.3The appropriations in this section are subject
6.4to the requirements of the natural resources
6.5capital improvement program set forth in
6.6new Minnesota Statutes, section 86A.12,
6.7unless this section or the statutes referred
6.8to in this section provide more specific
6.9standards, criteria, or priorities for projects
6.10than section 86A.12.
6.11
 Subd. 2.Stillwater Flood Control Phase III
 200,000
6.12This appropriation is from the general fund.
6.13For a grant to the city of Stillwater to
6.14predesign, design, and begin construction
6.15of Phase III of the Stillwater flood control
6.16project, including flood control structures
6.17and pumping stations. This appropriation
6.18is not available until the commissioner has
6.19determined that at least $2,000,000 has been
6.20committed from nonstate sources.
6.21
 Subd. 3.Canisteo Mine
 2,500,000
6.22For a grant to the Western Mesabi Mine
6.23Planning Board to construct siphons, a
6.24conveyance system, and other improvements
6.25to accommodate water level and outflow
6.26control of the water level in the Canisteo
6.27mine pit in Itasca County. The commissioner
6.28of natural resources shall be responsible to
6.29maintain the improvements after completion
6.30of the project.
6.31
 Subd. 4.Springbrook Nature Center
 2,000,000
6.32For a grant to the city of Fridley to redevelop
6.33and expand the Springbrook Nature Center.
6.34
 Subd. 5.Big Bog State Recreation Area
 1,000,000
7.1To upgrade the contact station, make
7.2improvements in the recreation area, and
7.3forest restoration and interpretation at the
7.4Big Bog State Recreation Area.
7.5
 Subd. 6.Fort Snelling Upper Bluff
 500,000
7.6This appropriation is from the general fund.
7.7For a grant to Hennepin County to conduct
7.8emergency building stabilization at Fort
7.9Snelling Upper Bluff. This appropriation
7.10is not available until the commissioner of
7.11finance has determined that Hennepin County
7.12has entered into appropriate agreements to
7.13use Sentence to Serve labor for the project
7.14that will train Sentence to Serve laborers in
7.15the skills needed for the work.
7.16
7.17
 Subd. 7.Red River Basin Digital Elevation
Model
 600,000
7.18This appropriation is from the general fund.
7.19To develop and implement a high resolution
7.20digital elevation model for the Red River
7.21basin.
7.22
 Subd. 8.Flood Hazard Mitigation Grant
 2,093,000
7.23For flood hazard mitigation grants under
7.24Minnesota Statutes, section 103F.161, for:
7.25(a) the city of Roseau, for the state share
7.26of land acquisition, engineering and design
7.27costs for the U.S. Army Corps of Engineers
7.28East Diversion Flood Control Project, which
7.29will protect the city of Roseau from recurring
7.30flooding; and
7.31(b) flood hazard mitigation projects in
7.32Browns Valley.
7.33To the extent that the cost of the project in
7.34Roseau exceeds two percent of the median
8.1household income in the municipality
8.2multiplied by the number of households in
8.3the municipality, this appropriation is also
8.4for the local share of the project.
8.5
8.6
 Subd. 9.Cuyuna Country State Recreation
Area
 125,000
8.7This appropriation is from the general fund.
8.8To develop a natural surface multiuse trail in
8.9the Cuyuna Country State Recreation Area.
8.10
 Subd. 10.Gateway Trail Tunnel
 650,000
8.11This appropriation is from the general fund.
8.12To replace an at-grade crossing of the
8.13Gateway Trail at Highway 120 with a tunnel.
8.14
 Subd. 11.Luce Line Trail
 209,000
8.15This appropriation is from the general fund.
8.16To acquire land for, develop, and rehabilitate
8.17the Luce Line trail, under Minnesota Statutes,
8.18section 85.015.

8.19
 Sec. 6. POLLUTION CONTROL AGENCY
 $
 2,500,000
8.20This appropriation is from the general fund.
8.21To the Pollution Control Agency for a grant
8.22to the city of Albert Lea for construction
8.23costs of remedial systems at the Albert
8.24Lea Landfill. This includes relocating and
8.25incorporating waste from the former Albert
8.26Lea Dump owned by the city of Albert Lea
8.27pursuant to Minnesota Statutes, section
8.28115B.403, which action may be taken by the
8.29Pollution Control Agency notwithstanding
8.30the provisions of Minnesota Statutes, section
8.31115B.403, paragraphs (a) and (b).
8.32The appropriation in this section is added
8.33to the amounts for the city of Albert Lea
9.1Landfill funding in Laws 2006, chapter 258,
9.2section 8, subdivision 2.

9.3
9.4
 Sec. 7. BOARD OF WATER AND SOIL
RESOURCES
 $
9.5
9.6
9.7
 Subdivision 1.To the Board of Water and Soil
Resources for the purposes specified in this
section.
8,165,000
9.8
 Subd. 2.RIM Conservation Reserve
 8,000,000
9.9This appropriation is from the general fund.
9.10To acquire conservation easements from
9.11landowners on marginal lands to protect soil
9.12and water quality and to support fish and
9.13wildlife habitat as provided in Minnesota
9.14Statutes, sections 103F.501 to 103F.535.
9.15Of this, $2,250,000 is to implement the
9.16program. The board must submit to the
9.17legislative committees with jurisdiction over
9.18environment finance and capital investment
9.19an interim report on this program by October
9.201, 2007, and a final report by February 1,
9.212008.
9.22
9.23
 Subd. 3.Lake Titlow Watershed
Improvements
 165,000
9.24For a grant to the city of Gaylord to predesign
9.25and design holding ponds upstream from
9.26Lake Titlow. The design must include the
9.27best location for the ponds, an estimate of
9.28the cost of land acquisition or easements,
9.29construction costs of the holding ponds, and
9.30the estimated expense of maintaining the
9.31structures and who will be responsible for
9.32the expense. The city must also coordinate
9.33with state and county conservation officials
9.34to ensure correct conservation practices and
9.35improvements in the watershed district.
10.1Of this, $15,000 is from the general fund to
10.2purchase open intake tile covers or cones that
10.3limit soil erosion and chemicals from entering
10.4the water ditch systems and waterways of
10.5the Lake Titlow watershed. These water
10.6control devices must be provided at low
10.7cost to landowners to promote conservation
10.8improvement and clean up groundwater.
10.9Volunteers from the city of Gaylord and local
10.10clubs and high school students must be used
10.11to install the water control devices at no cost
10.12to the landowner.
10.13The criteria, limitations, and assessment
10.14requirements in Minnesota Statutes, sections
10.15103D.701, 103D.705, and 103D.901 do not
10.16apply to this subdivision.

10.17
10.18
 Sec. 8. MINNESOTA ZOOLOGICAL
GARDEN
 $
 1,526,000
10.19
 Inflow and Infiltration Emergency Abatement
10.20This appropriation is from the general fund.
10.21To the Minnesota Zoological Garden for
10.22design and construction of improvements to
10.23its water management system. The project
10.24must be designed to address inflow and
10.25infiltration problems associated with the
10.26Minnesota Zoo's water discharge flow to the
10.27city of Eagan.

10.28
 Sec. 9. ADMINISTRATION
 $
10.29
 Subdivision 1.Total Appropriation
 28,240,000
10.30To the commissioner of administration for
10.31the purposes specified in this section.
10.32
10.33
 Subd. 2.Exterior Repair of Transportation
Building
 12,715,000
11.1This appropriation is from the bond proceeds
11.2account in the trunk highway fund.
11.3To repair and renovate the exterior of the
11.4Department of Transportation Building at
11.5395 John Ireland Boulevard in St. Paul.
11.6
 Subd. 3.Property Acquisition
 2,325,000
11.7This appropriation is from the general fund.
11.8To acquire property at 639 Jackson Street in
11.9St. Paul adjacent to the Harold E. Stassen
11.10Building, to demolish existing structures
11.11on the property, and to develop temporary
11.12parking on the site and adjacent areas.
11.13
 Subd. 4.Veterans Memorial, Eden Prairie
 200,000
11.14This appropriation is from the general fund.
11.15For a grant to the city of Eden Prairie to
11.16design and construct improvements of a
11.17capital nature for a veterans memorial in
11.18Purgatory Creek Recreation Area in the city
11.19of Eden Prairie.
11.20
 Subd. 5.Noncommercial Television
 10,000,000
11.21This appropriation is from the general fund
11.22for the biennium ending June 30, 2009, for
11.23grants to noncommercial television stations
11.24to assist with the continued conversion to a
11.25digital broadcast signal as mandated by the
11.26federal government. This appropriation must
11.27be used to assist each station to complete its
11.28digital production facilities and interconnect
11.29with other Minnesota public television
11.30stations. In order to qualify for these grants,
11.31a station must meet the criteria established
11.32for grants in Minnesota Statutes, section
11.33129D.12, subdivision 2.
12.1
 Subd. 6.Minnesota Public Radio
 3,000,000
12.2This appropriation is from the general fund
12.3for the fiscal year beginning July 1, 2007, for
12.4grants to Minnesota Public Radio to assist
12.5with conversion to a digital broadcast signal.

12.6
 Sec. 10. PUBLIC SAFETY
 $
 2,500,000
12.7This appropriation is from the general fund.
12.8To the commissioner of public safety for a
12.9grant to Anoka County to construct, furnish,
12.10and equip a regional forensic laboratory at
12.11Anoka County's public safety facility.

12.12
 Sec. 11. TRANSPORTATION
 $
12.13
12.14
12.15
 Subdivision 1.To the commissioner of
transportation for the purposes specified in this
section
 34,923,000
12.16
12.17
 Subd. 2.Local Bridge Replacement and
Rehabilitation
 10,000,000
12.18This appropriation is from the general fund
12.19for the state transportation fund provided in
12.20Minnesota Statutes, section 174.50, to match
12.21federal money and to replace or rehabilitate
12.22local deficient bridges.
12.23Political subdivisions may use grants made
12.24under this section to construct or reconstruct
12.25bridges, including:
12.26(1) matching federal-aid grants to construct
12.27or reconstruct key bridges;
12.28(2) paying the costs of preliminary
12.29engineering and environmental studies
12.30authorized under Minnesota Statutes, section
12.31174.50, subdivision 6a;
12.32(3) paying the costs to abandon an existing
12.33bridge that is deficient and in need of
13.1replacement, but where no replacement will
13.2be made; and
13.3(4) paying the costs to construct a road
13.4or street to facilitate the abandonment
13.5of an existing bridge determined by
13.6the commissioner to be deficient, if the
13.7commissioner determines that construction
13.8of the road or street is more cost efficient
13.9than the replacement of the existing bridge.
13.10
 Subd. 3.Port Development Assistance
 1,500,000
13.11$1,001,000 of this appropriation is from the
13.12general fund.
13.13For grants under Minnesota Statutes, chapter
13.14457A. Any improvements made with the
13.15proceeds of these grants must be publicly
13.16owned.
13.17
 Subd. 4.Mankato District Headquarters
 20,673,000
13.18This appropriation is from the bond proceeds
13.19account in the trunk highway fund. To
13.20design, construct, furnish, and equip a
13.21new Department of Transportation district
13.22headquarters facility in Mankato.
13.23
 Subd. 5.High-speed Rail Line
 2,000,000
13.24For the state's share of a high-speed rail
13.25line between St. Paul and Chicago. No
13.26part of this appropriation may be spent to
13.27acquire or better capital improvements that
13.28are located outside the state of Minnesota,
13.29that may be used from time to time outside
13.30the state of Minnesota, or that are part of
13.31a rail corridor that is not designated by the
13.32Midwest Interstate Passenger Rail Compact.
13.33
 Subd. 6.Commuter Rail Extension
 250,000
14.1For a grant to the Northstar Corridor
14.2Development Authority to fund advanced
14.3preliminary engineering, updated
14.4environmental documentation, property
14.5appraisals, and negotiations with the railroad
14.6to extend commuter rail service on the
14.7Burlington Northern Santa Fe rail line
14.8between Big Lake and Rice.
14.9
14.10
 Subd. 7.North Shore Express Intercity Rail
Initiative
 500,000
14.11For a grant to St. Louis and Lake
14.12County Regional Rail Authority for
14.13railroad acquisition and track restoration,
14.14environmental impact studies, advanced
14.15corridor planning, preliminary design and
14.16preliminary engineering, station design,
14.17analysis of railroad capacity, and easement
14.18costs for intercity and passenger rail service
14.19between the city of Duluth and the cities of
14.20Minneapolis and St. Paul.

14.21
 Sec. 12. METROPOLITAN COUNCIL
 $
14.22
14.23
 Subd. 1To the Metropolitan Council for the
purposes specified in this section
 39,300,000
14.24
 Subd. 2.Central corridor transit way
 30,000,000
14.25For final design and construction of the
14.26Central corridor transit way between
14.27downtown Minneapolis and downtown St.
14.28Paul.
14.29This appropriation may not be spent for
14.30capital improvements within a trunk highway
14.31right-of-way.
14.32
 Subd. 3.Union Depot
 3,000,000
14.33For a grant to the Ramsey County Regional
14.34Railroad Authority to acquire land and
15.1structures, to renovate structures, and for
15.2design, engineering, and environmental
15.3work to revitalize Union Depot for use as a
15.4multimodal transit center in St. Paul.
15.5
 Subd. 4.Rush Line
 500,000
15.6For a grant to the Ramsey County Regional
15.7Railroad Authority to acquire land for,
15.8design, and construct park-and-ride or
15.9park-and-pool lots located along the Rush
15.10Line corridor along 1-35E/1-35W and
15.11Highway 61 from downtown St. Paul to
15.12Hinckley.
15.13
 Subd. 5.Red Rock Corridor Transit Way
 500,000
15.14To design, construct, and furnish
15.15park-and-ride lots for the Red Rock
15.16Corridor transit way between Hastings and
15.17Minneapolis via St. Paul, and any extension
15.18between Hastings and Red Wing.
15.19
 Subd. 6.Southwest Transitway Corridor
 500,000
15.20For a grant to the Hennepin County
15.21Regional Rail Authority to prepare a Draft
15.22Environmental Impact Statement (DEIS)
15.23and for preliminary engineering for the
15.24Southwest Transitway Corridor, from the
15.25Hiawatha light rail in downtown Minneapolis
15.26to the vicinity of the Southwest Station
15.27transit hub in Eden Prairie.
15.28
 Subd. 7.I-494 Transit Options Study
 500.000
15.29This appropriation is from the general fund.
15.30For a feasibility study, environmental studies,
15.31and preliminary engineering of transit options
15.32for an Interstate 494 corridor transit way,
15.33along a corridor on or near marked Interstate
15.34Highway 494, from Minneapolis-St. Paul
16.1International Airport to a transit station on
16.2the proposed southwest transit way, and other
16.3transit corridors in the metropolitan area.
16.4
 Subd. 8.I-94 Transitway
 500,000
16.5For a grant to Washington County for
16.6predesign and preliminary engineering of
16.7transportation and transit improvements,
16.8including busways or rail transit in the
16.9marked Interstate Highway 94 Corridor
16.10between the Union Depot Concourse
16.11Multimodal Transit Hub, located downtown
16.12St. Paul in the area south of Kellogg
16.13Boulevard and east of Jackson Street,
16.14extending eastward through Washington
16.15County to the Minnesota-Wisconsin border,
16.16to terminate in St. Croix County, Wisconsin.
16.17No part of this appropriation may be spent to
16.18acquire or better capital improvements that
16.19are located outside the state of Minnesota.
16.20
16.21
 Subd. 9.Metropolitan Regional Parks Capital
Improvements
 3,800,000
16.22This appropriation is from the general fund.
16.23For a grant to the city of St. Paul to construct,
16.24furnish, and equip river park development
16.25and redevelopment infrastructure in National
16.26Great River Park along the Mississippi River
16.27in St. Paul.

16.28
 Sec. 13. HUMAN SERVICES
 $
 150,000
16.29This appropriation is from the general fund.
16.30To the commissioner of administration to
16.31predesign a multicounty regional secured
16.32treatment facility in west central Minnesota.
16.33The commissioner of human services
16.34shall prepare a report to the legislature
17.1assessing the need for and the viability of
17.2the facility and the benefits derived from a
17.3coordinated multicounty, regional approach
17.4to local chemical dependency needs in west
17.5central Minnesota. The report is due to the
17.6legislature by February 1, 2008.

17.7
 Sec. 14. CORRECTIONS
 $
17.8
 Subdivision 1.Total Appropriation
 6,117,000
17.9To the commissioner of administration for
17.10the purposes specified in this section.
17.11
17.12
 Subd. 2.Minnesota Correctional Facility - Oak
Park Heights
17.13
 (a) Perimeter System Renovation
 3,875,000
17.14This appropriation is from the general fund.
17.15To renovate the perimeter system at the
17.16Oak Park Heights Correctional Facility
17.17by replacing the security fence system for
17.18the inside wall of the main prison yard
17.19and exterior fence, replacing the perimeter
17.20lighting system and the security razor
17.21ribbon, and installing cameras and lighting to
17.22correspond to the perimeter system's added
17.23security zones.
17.24
 (b) Ventilation System Renovation
 2,242,000
17.25This appropriation is from the general fund.
17.26To renovate the ventilation system at the
17.27Oak Park Heights Correctional Facility by
17.28demolishing sections of existing ductwork,
17.29installing new ductwork, installing an
17.30ultraviolet lighting system, installing system
17.31air controls and electronics, and cleaning
17.32or otherwise renovating sections of existing
17.33ductwork.

18.1
18.2
 Sec. 15. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
 $
18.3
18.4
18.5
 Subd. 1.To the commissioner of employment and
economic development or other named agency for
the purposes specified in this section
 60,282,000
18.6
 Subd. 2.DECC Arena
 30,000,000
18.7This appropriation is from the general fund.
18.8For a grant to the Duluth Entertainment
18.9and Convention Center Authority to
18.10design, construct, furnish, and equip capital
18.11improvements and renovations to the Duluth
18.12Entertainment and Convention Center. The
18.13capital improvements and renovations must
18.14include an approximately 217,446 square
18.15foot arena with an ice sheet of at least 200
18.16feet by 85 feet; trade show and concert space;
18.17seating capacity of at least 6,630 with suites,
18.18club seats, and concessions; state-of-the-art
18.19locker and training facilities; and accessible
18.20and expanded media space. Notwithstanding
18.21any law to the contrary, the authority may
18.22adopt a design and construction procurement
18.23process as determined by the authority, in
18.24its discretion, to be in the public interest in
18.25connection with the Duluth Entertainment
18.26and Convention Center improvements.
18.27
 Subd. 3.Itasca County Infrastructure
 20,000,000
18.28For a grant to Itasca County for public
18.29infrastructure needed to support a steel plant
18.30in Itasca County. Grant money may be used
18.31by Itasca County to acquire right-of-way and
18.32mitigate loss of wetlands and runoff of storm
18.33water, to predesign, design, construct, and
18.34equip roads and rail lines, and, in cooperation
18.35with municipal public utilities, to predesign,
19.1design, construct, and equip natural gas
19.2pipelines, electric infrastructure, water
19.3supply systems, and wastewater collection
19.4and treatment systems.
19.5
 Subd. 4.Mayo Civic Center Complex
 2,500,000
19.6For a grant to the city of Rochester to design
19.7the renovation and expansion of the Mayo
19.8Civic Center Complex.
19.9
 Subd. 5.Wildlife Rehabilitation Center
 500,000
19.10This appropriation is from the general fund.
19.11For a grant to the Wildlife Rehabilitation
19.12Center of Minnesota to retire loans incurred
19.13by the center for construction of its facility in
19.14the city of Roseville, and for completion of
19.15educational technology infrastructure at the
19.16center.
19.17
 Subd. 6.Rice Street Bridge
 2,000,000
19.18For a grant to Ramsey County for
19.19the preliminary planning, design, and
19.20engineering of the Rice Street bridge where
19.21it crosses marked Trunk Highway 36 in
19.22Ramsey County.

19.23
 Sec. 16. BOND SALE EXPENSES
 $
 135,000
19.24To the commissioner of finance for bond sale
19.25expenses under Minnesota Statutes, section
19.2616A.641, subdivision 8.

19.27
 Sec. 17. BOND SALE SCHEDULE
19.28The commissioner of finance shall schedule
19.29the sale of state general obligation bonds so
19.30that, during the biennium ending June 30,
19.312009, no more than $918,620,000 will need
19.32to be transferred from the general fund to the
19.33state bond fund to pay principal and interest
20.1due and to become due on outstanding
20.2state general obligation bonds. During
20.3the biennium, before each sale of state
20.4general obligation bonds, the commissioner
20.5of finance shall calculate the amount of
20.6debt service payments needed on bonds
20.7previously issued and shall estimate the
20.8amount of debt service payments that will
20.9be needed on the bonds scheduled to be
20.10sold. The commissioner shall adjust the
20.11amount of bonds scheduled to be sold so as
20.12to remain within the limit set by this section.
20.13The amount needed to make the debt service
20.14payments is appropriated from the general
20.15fund as provided in Minnesota Statutes,
20.16section 16A.641.

20.17    Sec. 18. BOND SALE AUTHORIZATION.
20.18    Subdivision 1. Bond proceeds fund. To provide the money appropriated in this act
20.19from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
20.20state in an amount up to $110,282,000 in the manner, upon the terms, and with the effect
20.21prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
20.22Constitution, article XI, sections 4 to 7.
20.23    Subd. 2. Maximum effort school loan fund. To provide the money appropriated in
20.24this act from the maximum effort school loan fund, the commissioner of finance shall sell
20.25and issue bonds of the state in an amount up to $30,000,000 in the manner, upon the terms,
20.26and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by
20.27the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except
20.28accrued interest and any premium received on the sale of the bonds, must be credited to a
20.29bond proceeds account in the maximum effort school loan fund.
20.30    Subd. 3. Trunk highway bonds. To provide the money appropriated in this act
20.31from the bond proceeds account in the trunk highway fund, the commissioner of finance
20.32shall sell and issue trunk highway bonds in an amount up to $33,388,000 in the manner, on
20.33the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
20.34and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
20.35requested by the commissioner of transportation. The proceeds of the bonds, except
21.1accrued interest and any premium received on the sale of the bonds, must be credited to
21.2the bond proceeds account in the trunk highway fund.

21.3    Sec. 19. BOND SALE AUTHORIZATION REDUCTIONS.
21.4    The bond sale authorization in Laws 2005, chapter 20, article 1, section 28,
21.5subdivision 1, is reduced by $2,000,000.
21.6    The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is
21.7reduced by $3,282,000.

21.8    Sec. 20. Minnesota Statutes 2006, section 16A.86, subdivision 3, is amended to read:
21.9    Subd. 3. Evaluation. (a) The commissioner shall evaluate all requests from political
21.10subdivisions for state assistance based on the following criteria:
21.11    (1) the political subdivision has provided for local, private, and user financing for
21.12the project to the maximum extent possible;
21.13    (2) the project helps fulfill an important state mission;
21.14    (3) the project is of regional or statewide significance;
21.15    (4) the project will not require new or any additional state operating subsidies meet
21.16or exceed sustainable building guidelines established under section 16B.325;
21.17    (5) the project will not expand the state's role in a new policy area use sustainable
21.18building designs to the extent possible;
21.19    (6) state funding for the project will not create significant inequities among local
21.20jurisdictions;
21.21    (7) the project will not compete with other facilities in such a manner that they lose a
21.22significant number of users to the new project;
21.23    (8) the governing bodies of those political subdivisions primarily benefiting from the
21.24project have passed resolutions in support of the project and have established priorities
21.25for all projects within their jurisdictions for which bonding appropriations are requested
21.26when submitting multiple requests; and
21.27    (9) if a predesign that meets the requirements of section 16B.335 has been completed
21.28and is available at the time the project request is submitted to the commissioner of finance,
21.29the applicant has submitted the project predesign to the commissioner of administration.
21.30    (b) The commissioner's evaluation of each request, including whether it meets
21.31each of the criteria in paragraph (a), must be submitted to the legislature along with the
21.32governor's recommendations under section 16A.11, subdivision 1, whether or not the
21.33governor recommends that the request be funded.

21.34    Sec. 21. Minnesota Statutes 2006, section 116R.01, subdivision 6, is amended to read:
22.1    Subd. 6. Project. "Project" means the facilities or any property described in section
22.2116R.02, subdivision 5 or 6, as applicable.

22.3    Sec. 22. Minnesota Statutes 2006, section 116R.02, subdivision 1, is amended to read:
22.4    Subdivision 1. Sale authorization. The commissioner of finance, upon the request
22.5of the governor, may issue and sell revenue bonds as provided under sections 116R.01 to
22.6116R.16 116R.15 in one or more series or issues for the purposes provided in this section
22.7in the aggregate principal amount of up to $350,000,000, except for refunding bonds.
22.8Proceeds of the bonds and investment income on the proceeds are appropriated in the
22.9amounts and for the purposes specified in subdivisions 2, and 5, and 6 and section 116R.04.

22.10    Sec. 23. Minnesota Statutes 2006, section 116R.02, subdivision 2, is amended to read:
22.11    Subd. 2. Loan, lease, and revenue agreements. (a) The commissioner may loan
22.12the proceeds of the bonds, make other loans or enter into lease agreements or other
22.13revenue agreements for the projects project described in subdivisions 5 and 6 subdivision
22.145. The commissioner may provide for servicing of the loans and agreements, the times
22.15they are payable and the amounts of payments, the amount of the loans and agreements,
22.16their security, and other terms, conditions, and provisions necessary or convenient in
22.17connection with them and may enter into all necessary contracts and security instruments
22.18in connection with them. The commissioner shall seek to obtain the best available terms
22.19and security for the loans or agreements. The terms and security must be reasonably
22.20determined by the commissioner to be adequate and of the kind and degree which would
22.21be required by an investment banking or other financial institution. The facilities described
22.22in subdivisions 5 and 6 subdivision 5 must be pledged as collateral for the loans made and
22.23bonds issued under sections 116R.01 to 116R.16 116R.15.
22.24    (b) To reduce the risk that state general funds will be needed to pay debt service on
22.25the state guaranteed bonds, the commissioner must require that the financing arrangements
22.26include a coverage test satisfactory to the commissioner so that the sum of the value of the
22.27assets and other security pledged to the payment of bonds or the rent due under any lease
22.28of the project and taken into account by the commissioner is no less than 125 percent of
22.29the difference between the outstanding state guaranteed bonds, and any cash collateral
22.30held in a debt service reserve account and pledged to the payment of principal and interest
22.31for the state guaranteed bonds and no other bonds. Assets and other security that may be
22.32taken into account include (1) net unencumbered value of the project and any collateral
22.33or third party guaranty, including a letter of credit, pledged or otherwise furnished by a
22.34user of the project or by a benefited airline company as security for the payment of rent,
22.35(2) bond proceeds, including earnings thereon, and (3) prepayments of rent, after making
22.36such adjustments the commissioner determines to be appropriate to take into account
23.1any outstanding bonds secured by a lien on the project or rent that is prior to the lien
23.2securing the state guaranteed bonds, but excluding any cash collateral deducted from the
23.3outstanding state guaranteed bonds in applying the coverage test. The commissioner may
23.4adopt the method of valuing the assets and other security as the commissioner determines
23.5to be appropriate, including valuation of the project at its original cost less depreciation.

23.6    Sec. 24. Minnesota Statutes 2006, section 116R.02, subdivision 4, is amended to read:
23.7    Subd. 4. Security. (a) If so provided in the commissioner's order or any indenture
23.8authorizing the applicable series of bonds, up to $125,000,000 principal amount of bonds
23.9for the facility described in subdivision 5, up to $50,000,000 principal amount of bonds
23.10for the facility described in subdivision 6, and any bonds issued to refund these bonds may
23.11be secured by either of the following methods:
23.12    (1) upon the occurrence of any deficiency in a debt service reserve fund for a series
23.13of bonds as provided in section 116R.13, subdivision 3, the commissioner shall issue and
23.14sell deficiency bonds in a principal amount not to exceed (i) $125,000,000 for facilities
23.15described in subdivision 5 and (ii) $50,000,000 for the facilities described in subdivision
23.166; or
23.17    (2) the bonds may be directly secured by a pledge of the full faith, credit, and taxing
23.18power of the state and issued as general obligation revenue bonds of the state in accordance
23.19with the Minnesota Constitution, article XI, sections 4 to 7. In no event may the security
23.20provided by this paragraph extend in whole or part to any series of bonds other than the
23.21initial series of bonds so secured and any series of bonds issued to refund these bonds.
23.22    Deficiency bonds and bonds issued under clause (2) must be issued in accordance
23.23with and subject to sections 16A.641, 16A.66, 16A.672, and 16A.675, except for section
23.2416A.641, subdivision 5 , except as otherwise provided in Laws 1991, chapter 350, article
23.251, and except that the bonds may be sold at public or private sale at a price or prices
23.26determined by the commissioner as provided in section 116R.13, subdivision 3.
23.27    (b) The commissioner may request St. Louis County to pay or secure payment of
23.28principal and interest due on up to $12,600,000 principal amount of revenue bonds for the
23.29facility described in subdivision 5 and principal and interest due on up to $15,000,000
23.30principal amount of revenue bonds for the facility described in subdivision 6. At the
23.31request of the commissioner, St. Louis County shall, by resolution of its county board,
23.32unconditionally and irrevocably pledge as a general obligation, its full faith, credit, and
23.33taxing power to pay or secure payment of principal and interest due on the principal
23.34amount or amounts requested by the commissioner. The general obligation and pledge of
23.35St. Louis County are not subject to and shall not be taken into account for purposes of any
23.36debt limitation. A levy of taxes for the St. Louis County general obligation is not subject
24.1to and shall not be taken into account for purposes of any levy limitations. The general
24.2obligation and the bonds secured by the general obligation may be issued without an
24.3election. Except for sections 475.61 and 475.64, chapter 475 does not apply to the general
24.4obligation or to the bonds secured by the general obligation.
24.5    (c) The commissioner may request the city of Duluth to pay or secure payment of
24.6principal and interest due on up to $47,600,000 principal amount of revenue bonds for the
24.7facility described in subdivision 5. At the request of the commissioner, the city of Duluth
24.8shall pledge specified revenues of the city, as provided in Laws 1991, chapter 350, article
24.91, section 24, to pay principal and interest due on the principal amount requested by
24.10the commissioner.
24.11    (d) Bonds and deficiency bonds issued under sections 116R.01 to 116R.16 116R.15
24.12and any indenture entered into in connection with the issuance of the bonds are not subject
24.13to section 16B.06.

24.14    Sec. 25. Minnesota Statutes 2006, section 116R.02, subdivision 5, is amended to read:
24.15    Subd. 5. Use of proceeds; aircraft maintenance facility. The proceeds of the
24.16bonds issued in a principal amount not to exceed $250,000,000 may be used to finance
24.17the costs related to the planning, construction, improvement, or equipping of a heavy
24.18maintenance facility for aircraft and facilities subordinate and related to the facility to be
24.19located at the Duluth International Airport and any costs of issuance, reserves, credit
24.20enhancement, or an initial period of interest payments related to the bonds or the facility.
24.21The bond proceeds are appropriated to the commissioner for the purposes specified in this
24.22subdivision. The facility may be owned by the Metropolitan Airports Commission and
24.23leased for the benefit of one or more airline companies for use as a heavy maintenance
24.24base. With the approval of the commissioner, the owner of the facility may place a
24.25mortgage or security interest lien on the facility or any interest in or part of the facility.
24.26The mortgage is exempt from the mortgage registry tax imposed under chapter 287. In
24.27the event of a default under the loan, lease agreement, or other revenue agreement, the
24.28facility, or any part of the facility, may be leased or sold to another person for any lawful
24.29purpose, subject to the approval of the commissioner. The approval of the commissioner
24.30is not required if the bond trustee has taken control of the facility as a result of a default.
24.31    The ownership of the facility by the owner may create no liability of the owner for
24.32payment of the debt service on the bonds if so determined by the commissioner. The
24.33owner may require as a condition of entering into the lease of the facility that the lessee or
24.34other party pay all costs, expenses, or any other obligations of ownership of the facility.
25.1    No revenues derived from the lease of the project may be used other than for a
25.2purpose related to the project, including its operation, administration, maintenance,
25.3improvement, or financing.

25.4    Sec. 26. Minnesota Statutes 2006, section 116R.03, is amended to read:
25.5116R.03 GENERAL POWERS.
25.6    For the purpose of exercising the specific powers authorized under sections 116R.01
25.7to 116R.16 116R.15 and effectuating the other purposes of sections 116R.01 to 116R.16,
25.8116R.15, the commissioner may:
25.9    (1) acquire, hold, pledge, assign, lease, or dispose of real or personal property or
25.10any interest in property, including a mortgage or security interest in a facility described in
25.11section 116R.02, subdivision 5 or 6;
25.12    (2) enter into agreements, contracts, or other transactions with any federal or state
25.13agency, any person and any domestic or foreign partnership, corporation, association, or
25.14organization, including contracts or agreements for administration and implementation of
25.15all or part of sections 116R.01 to 116R.16 116R.15;
25.16    (3) acquire real property, or an interest therein, by purchase or foreclosure, where
25.17the acquisition is necessary or appropriate;
25.18    (4) enter into agreements with lenders, borrowers, or the issuers of securities for the
25.19purpose of regulating the development and management of any facility financed in whole
25.20or in part by the proceeds of bonds or loans;
25.21    (5) enter into agreements with other appropriate federal, state, or local governmental
25.22units; and
25.23    (6) contract with, use, or employ any federal, state, regional, or local public or
25.24private agency or organization, legal counsel, financial advisors, investment bankers or
25.25others, upon terms the commissioner considers necessary or desirable, to assist in the
25.26exercise of any of the powers authorized under sections 116R.01 to 116R.16 116R.15 and
25.27to carry out the objectives of sections 116R.01 to 116R.16 116R.15 and may pay for the
25.28services from bond proceeds or otherwise available department money.; and
25.29    (7) in the event of a default under the loan, lease agreement, or other revenue
25.30agreement, the facility, or any part of the facility, may be leased or sold to another person
25.31for any lawful purpose, subject to the approval of the commissioner. The approval of the
25.32commissioner is not required if the bond trustee has taken control of the facility as a
25.33result of a default.

25.34    Sec. 27. Minnesota Statutes 2006, section 116R.05, subdivision 2, is amended to read:
25.35    Subd. 2. Sources of payment. Except as otherwise provided for bonds issued
25.36under section 116R.02, subdivision 4, paragraph (a), the bonds and interest payable
26.1thereon are payable solely from the following sources and are irrevocably appropriated
26.2for that purpose, but only to the extent provided in the order or indenture authorizing or
26.3securing the bonds:
26.4    (1) revenues of any nature derived from the ownership, lease, operation, sale,
26.5foreclosure, or refinancing of a project described in section 116R.02, subdivision 5 or 6;
26.6    (2) repayments of any loans made under sections 116R.01 to 116R.16 116R.15;
26.7    (3) proceeds of any bonds or deficiency bonds;
26.8    (4) amounts in any account or accounts authorized by section 116R.11 or 116R.12;
26.9    (5) amounts paid by St. Louis County under its obligations referred to in section
26.10116R.02, subdivision 4 , and amounts paid under Laws 1991, chapter 350, article 1, section
26.1124 or 25, for the payment of bonds or interest thereon;
26.12    (6) amounts payable under any insurance policy, guaranty, letter of credit, or other
26.13instrument securing the bonds;
26.14    (7) any other revenues which the commissioner may pledge but excluding state
26.15appropriations unless the appropriation was specifically designated for that purpose; and
26.16    (8) investment income on any of the sources specified in clauses (1) to (7).

26.17    Sec. 28. Minnesota Statutes 2006, section 116R.11, subdivision 1, is amended to read:
26.18    Subdivision 1. Funds. The commissioner or any trustee appointed by the
26.19commissioner under sections 116R.01 to 116R.16 116R.15 shall establish and maintain an
26.20aircraft facilities fund for each of the projects the project described in section 116R.02,
26.21subdivisions 5 and 6 subdivision 5 . Except for amounts required by the commissioner to
26.22be deposited in a debt service account, proceeds of each issue of bonds authorized under
26.23section 116R.02, subdivision 1, must be deposited in a separate account, debt service
26.24reserve, or other account designated by the commissioner. Money in the account is
26.25appropriated to the commissioner. The commissioner or the owner of each the project
26.26described in section 116R.02, subdivisions 5 and 6 subdivision 5, may withdraw proceeds
26.27of bonds for application to the appropriated purposes in the manner provided by order
26.28of the commissioner or in any indenture authorized by order of the commissioner. The
26.29commissioner may establish whatever accounts might be necessary to carry out sections
26.30116R.01 to 116R.16 116R.15. All deposits into and disbursements from accounts for the
26.31purposes and from the sources of revenue authorized by sections 116R.01 to 116R.16
26.32116R.15 and provided in an order of the commissioner or an indenture or other agreement
26.33authorized by the commissioner are appropriated for that purpose.

26.34    Sec. 29. Minnesota Statutes 2006, section 116R.12, is amended by adding a subdivision
26.35to read:
27.1    Subd. 4. Approval. The approval of the commissioner is not required if the bond
27.2trustee has taken control of the facility as a result of a default.

27.3    Sec. 30. Minnesota Statutes 2006, section 272.01, subdivision 2, is amended to read:
27.4    Subd. 2. Exempt property used by private entity for profit. (a) When any real or
27.5personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
27.6leased, loaned, or otherwise made available and used by a private individual, association,
27.7or corporation in connection with a business conducted for profit, there shall be imposed a
27.8tax, for the privilege of so using or possessing such real or personal property, in the same
27.9amount and to the same extent as though the lessee or user was the owner of such property.
27.10    (b) The tax imposed by this subdivision shall not apply to:
27.11    (1) property leased or used as a concession in or relative to the use in whole
27.12or part of a public park, market, fairgrounds, port authority, economic development
27.13authority established under chapter 469, municipal auditorium, municipal parking facility,
27.14municipal museum, or municipal stadium;
27.15    (2) property of an airport owned by a city, town, county, or group thereof which is:
27.16    (i) leased to or used by any person or entity including a fixed base operator; and
27.17    (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
27.18services, or facilities to the airport or general public;
27.19the exception from taxation provided in this clause does not apply to:
27.20    (i) property located at an airport owned or operated by the Metropolitan Airports
27.21Commission or by a city of over 50,000 population according to the most recent federal
27.22census or such a city's airport authority; or
27.23    (ii) hangars leased by a private individual, association, or corporation in connection
27.24with a business conducted for profit other than an aviation-related business; or
27.25    (iii) facilities leased by a private individual, association, or corporation in connection
27.26with a business for profit, that consists of a major jet engine repair facility financed, in
27.27whole or part, with the proceeds of state bonds and located in a tax increment financing
27.28district;
27.29    (3) property constituting or used as a public pedestrian ramp or concourse in
27.30connection with a public airport;
27.31    (4) property constituting or used as a passenger check-in area or ticket sale counter,
27.32boarding area, or luggage claim area in connection with a public airport but not the
27.33airports owned or operated by the Metropolitan Airports Commission or cities of over
27.3450,000 population or an airport authority therein. Real estate owned by a municipality
27.35in connection with the operation of a public airport and leased or used for agricultural
27.36purposes is not exempt;
28.1    (5) property leased, loaned, or otherwise made available to a private individual,
28.2corporation, or association under a cooperative farming agreement made pursuant to
28.3section 97A.135; or
28.4    (6) property leased, loaned, or otherwise made available to a private individual,
28.5corporation, or association under section 272.68, subdivision 4.
28.6    (c) Taxes imposed by this subdivision are payable as in the case of personal property
28.7taxes and shall be assessed to the lessees or users of real or personal property in the same
28.8manner as taxes assessed to owners of real or personal property, except that such taxes
28.9shall not become a lien against the property. When due, the taxes shall constitute a debt
28.10due from the lessee or user to the state, township, city, county, and school district for
28.11which the taxes were assessed and shall be collected in the same manner as personal
28.12property taxes. If property subject to the tax imposed by this subdivision is leased or used
28.13jointly by two or more persons, each lessee or user shall be jointly and severally liable for
28.14payment of the tax.
28.15    (d) The tax on real property of the state or any of its political subdivisions that is
28.16leased by a private individual, association, or corporation and becomes taxable under
28.17this subdivision or other provision of law must be assessed and collected as a personal
28.18property assessment. The taxes do not become a lien against the real property.

28.19    Sec. 31. Minnesota Statutes 2006, section 290.06, subdivision 24, is amended to read:
28.20    Subd. 24. Credit for job creation. (a) A corporation that leases and operates
28.21a heavy maintenance base for aircraft that is owned by the state of Minnesota or one
28.22of its political subdivisions, or an engine repair facility described in section 116R.02,
28.23subdivision 6 , or both, may take a credit against the tax due under this chapter.
28.24    (b) For the first taxable year when the facility has been in operation for at least three
28.25consecutive months, the credit is equal to $5,000 multiplied by the number of persons
28.26employed by the corporation on a full-time basis at the facility on the last day of the taxable
28.27year, not to exceed the number of persons employed by the corporation on a full-time basis
28.28at the facility on the date 90 days before the last day of the taxable year. For each of the
28.29succeeding four taxable years, the credit is equal to $5,000 multiplied by the number of
28.30persons employed by the corporation on a full-time basis at the facility on the last day of
28.31the taxable year, not to exceed the number of persons employed by the corporation on a
28.32full-time basis at the facility on the date 90 days before the last day of the taxable year.
28.33    (c) For the first taxable year in which the credit is allowed for the facility, the credit
28.34must not exceed 80 percent of the wages paid to or incurred for persons employed by the
28.35taxpayer at the facility during the taxable year. For the succeeding four taxable years, the
28.36credit must not exceed 20 percent of the wages paid to or incurred for persons employed
29.1by the taxpayer at the facility during the taxable year. For purposes of this section,
29.2"wages" has the meaning given under section 3121(b) of the Internal Revenue Code,
29.3except the limitation to the contribution and benefit base does not apply.
29.4    (d) If the credit provided under this subdivision exceeds the tax liability of the
29.5corporation for the taxable year, the excess amount of the credit may be carried over to
29.6each of the 20 taxable years succeeding the taxable year. The entire amount of the credit
29.7must be carried to the earliest taxable year to which the amount may be carried. The
29.8unused portion of the credit must be carried to the following taxable year. No credit
29.9may be carried to a taxable year more than 20 years after the taxable year in which the
29.10credit was earned.
29.11    (e) If an unused portion of the credit remains at the end of the carryover period under
29.12paragraph (d), the commissioner shall refund the unused portion to the taxpayer. The
29.13provisions of this paragraph do not apply if the corporation that earned the credit under this
29.14subdivision or a successor in interest to the corporation filed for bankruptcy protection.

29.15    Sec. 32. Minnesota Statutes 2006, section 297A.71, subdivision 10, is amended to read:
29.16    Subd. 10. Aircraft heavy maintenance facility. Materials, equipment, and supplies
29.17used or consumed in constructing a heavy maintenance facility for aircraft that is to be
29.18owned by the state of Minnesota or one of its political subdivisions and leased by an airline
29.19company, or an aircraft engine repair facility described in section 116R.02, subdivision
29.206 , are is exempt. Except for equipment owned or leased by a contractor, all machinery,
29.21equipment, and tools necessary to the construction and equipping of that facility in order
29.22to provide those services are also exempt.

29.23    Sec. 33. Minnesota Statutes 2006, section 360.013, subdivision 39, is amended to read:
29.24     Subd. 39. Airport. "Airport" means any area of land or water, except a restricted
29.25landing area, which is designed for the landing and takeoff of aircraft, whether or not
29.26facilities are provided for the shelter, surfacing, or repair of aircraft, or for receiving or
29.27discharging passengers or cargo, and all appurtenant areas used or suitable for airport
29.28buildings or other airport facilities, including facilities described in section 116R.02,
29.29subdivision 6 , and all appurtenant rights-of-way, whether heretofore or hereafter
29.30established. The operation and maintenance of airports is an essential public service.

29.31    Sec. 34. Minnesota Statutes 2006, section 360.032, subdivision 1, is amended to read:
29.32    Subdivision 1. Acquisition. Every municipality is hereby authorized, through its
29.33governing body, to acquire property, real or personal, for the purpose of establishing,
29.34constructing, and enlarging airports and other air navigation facilities and to acquire,
29.35establish, construct, enlarge, improve, maintain, equip, operate, and regulate such airports
30.1and other air navigation facilities and structures and other property incidental to their
30.2operation, either within or without the territorial limits of such municipality and within
30.3or without this state; to make, prior to any such acquisition, investigations, surveys, and
30.4plans; to construct, install, and maintain airport facilities for the servicing and repair of
30.5aircraft and facilities authorized under section 116R.02, subdivision 6, and for the comfort
30.6and accommodation of air travelers; and to purchase and sell equipment and supplies as
30.7an incident to the operation of its airport properties. It may not acquire, or take over any
30.8airport or other air navigation facility owned or controlled by any other municipality of
30.9the state without the consent of such municipality. It may use for airport purposes any
30.10available property that is now or may at any time hereafter be owned or controlled by it.
30.11Such air navigation facilities as are established on airports shall be supplementary to and
30.12coordinated in design and operation with those established and operated by the federal and
30.13state governments. It may assist other municipalities in the construction of approach roads
30.14leading to any airport or restricted landing area owned or controlled by it. In financing the
30.15facilities authorized under section 116R.02, subdivision 6, it may borrow from the state
30.16or otherwise arrange for financing of the facilities and for that purpose may exercise any
30.17powers vested in a municipality under sections 469.152 to 469.165.

30.18    Sec. 35. Minnesota Statutes 2006, section 360.038, subdivision 4, is amended to read:
30.19    Subd. 4. Leased property. To lease for a term not exceeding 30 years such airports,
30.20or other air navigation facilities or facilities authorized under section 116R.02, subdivision
30.216 , or real property acquired or set apart for airport purposes, to private parties, any
30.22municipal or state government or the national government, or any department of either
30.23thereof, for operation; to lease or assign for a term not exceeding 99 years to private
30.24parties, any municipal or state government, or the national government, or any department
30.25of either thereof, for operation or use consistent with the purposes of sections 360.011 to
30.26360.076 , space, area, improvements, or equipment on such airports; notwithstanding any
30.27other provisions in this subdivision, to lease ground area for a term not exceeding 99 years
30.28to private persons for the construction of structures which in its opinion are essential and
30.29necessary to serve aircraft, persons, and things engaged in or incidental to aeronautics,
30.30including but not limited to shops, hangars, offices, restaurants, hotels, motels, factories,
30.31storage space, and any and all other structures necessary or essential to and consistent with
30.32the purposes of sections 360.011 to 360.076, to sell any part of such airports, other air
30.33navigation facilities, or real property to any municipal or state government, or to the
30.34United States or any department or instrumentality thereof, for aeronautical purposes
30.35incidental thereto, and to confer the privileges of concessions of supplying upon its
31.1airports goods, commodities, things, services, and facilities; provided that in each case in
31.2so doing the public is not deprived of its rightful, equal, and uniform use thereof.

31.3    Sec. 36. Laws 2005, chapter 20, article 1, section 7, subdivision 21, is amended to read:
31.4    Subd. 21.State Park and Recreation Area Acquisition 2,500,000
31.5For acquisition of land under Minnesota
31.6Statutes, section 86A.05, subdivisions 2 and
31.73, from willing sellers of private lands within
31.8state park and recreation area boundaries
31.9established by law.
31.10$500,000 is to purchase land within the
31.11boundaries of Greenleaf Lake state park
31.12in Meeker county. The commissioner of
31.13natural resources, in consultation with the
31.14local elected officials and citizens of Meeker
31.15County, shall develop a plan for Greenleaf
31.16Lake State Park. The commissioner shall
31.17submit the plan to the legislative committees
31.18with jurisdiction over state parks and capital
31.19investment by February 1, 2008.

31.20    Sec. 37. Laws 2005, chapter 20, article 1, section 20, subdivision 3, is amended to read:
31.21    Subd. 3.Systemwide Redevelopment, Reuse, or Demolition 17,600,000
31.22To demolish or improve surplus,
31.23nonfunctional, or deteriorated facilities and
31.24infrastructure at Department of Human
31.25Services campuses statewide.
31.26(a) Up to $8,600,000 may be used to
31.27predesign, design, construct, furnish,
31.28and equip renovation of existing space
31.29or construction of new space for skilled
31.30nursing home capacity for forensic treatment
31.31programs operated by state-operated services
31.32on the campus of St. Peter Regional
31.33Treatment Center.
32.1(b) $4,000,000 may be used to prepare
32.2and develop a site, including demolition of
32.3buildings and infrastructure, to implement
32.4the redevelopment and reuse of the
32.5Ah-Gwah-Ching Regional Treatment Center
32.6campus. If the property is sold or transferred
32.7to a local unit of government, the unspent
32.8portion of this appropriation may be granted
32.9to the local unit of government that acquires
32.10the campus for the purposes stated in this
32.11subdivision. Notwithstanding Minnesota
32.12Statutes, section 16A.642, this appropriation
32.13and its corresponding bond authorization do
32.14not cancel until June 30, 2010.
32.15(c) $1,000,000 may be used to renovate one
32.16or more buildings for chemical dependency
32.17treatment specializing in methamphetamine
32.18addiction, and demolish buildings, on the
32.19Willmar Regional Treatment Center campus.
32.20If the property is sold or transferred to a local
32.21unit of government, the unspent portion of
32.22this appropriation may be granted to the local
32.23unit of government that acquires the campus
32.24for the purposes stated in this subdivision.
32.25(d) Up to $2,210,000 may be spent by the
32.26commissioner of finance to retire municipal
32.27bonds issued by the city of Fergus Falls and
32.28to retire interfund loans incurred by the city
32.29of Fergus Falls in connection with the waste
32.30incinerator and steam heating facility at the
32.31Fergus Falls Regional Treatment Center.
32.32(e) Up to $400,000 may be used for a grant to
32.33the city of Fergus Falls to demolish the city's
32.34waste-to-energy incineration plant located
33.1on the grounds of the Fergus Falls Regional
33.2Treatment Center.
33.3(f) The provisions, terms, and conditions
33.4of any grant made by the director of the
33.5Office of Environmental Assistance under
33.6Minnesota Statutes, chapter 115A, to the
33.7city of Fergus Falls for the waste incinerator
33.8steam heating facility that supports the
33.9Fergus Falls Regional Treatment Center and
33.10that may come into effect as a result of the
33.11incinerator and facility being closed, are
33.12hereby waived.

33.13    Sec. 38. Laws 2005, chapter 20, article 1, section 23, subdivision 8, is amended to read:
33.14
33.15
 Subd. 8.Lewis and Clark Rural Water System,
Inc.
 2,000,000
33.16This appropriation is from the general fund.
33.17To the Public Facilities Authority for grants
33.18to the city of Luverne, city of Worthington
33.19Public Utilities, Lincoln-Pipestone rural
33.20water system, and Rock County rural water
33.21system Lewis and Clark Joint Powers
33.22Board to acquire land, predesign, design,
33.23construct, furnish, and equip one or more
33.24water transmission and storage facilities to
33.25accommodate the connection with of the
33.26Lewis and Clark Rural Water System, Inc.
33.27that will serve southwestern Minnesota.
33.28The grants Payment to the Lewis and Clark
33.29Rural Water System, Inc., must be awarded
33.30to projects approved by the Lewis and Clark
33.31Joint Powers Board.
33.32This appropriation is available only to the
33.33extent that each $1 of state money is matched
33.34by at least $1 of local money paid to the
33.35Lewis and Clark Rural Water System, Inc.
34.1for each $1 of state money to be used to
34.2reimburse costs incurred on eligible projects.
34.3This appropriation is the first phase of the
34.4state share for the Lewis and Clark Rural
34.5Water System, Inc. project as defined in the
34.6federal Lewis and Clark Rural Water System
34.7Act of 2000.

34.8    Sec. 39. Laws 2005, chapter 20, article 1, section 23, subdivision 16, is amended to
34.9read:
34.10    Subd. 16.Minneapolis
34.11(a) Minnesota Planetarium 22,000,000
34.12For a grant to the city of Minneapolis
34.13Hennepin County to complete design and
34.14to construct, furnish, and equip a new
34.15Minnesota planetarium and space discovery
34.16center in conjunction with the Minneapolis
34.17downtown library.
34.18(b) Heritage Park
34.19Any unspent balance remaining on December
34.2031, 2004, in the appropriation made by
34.21Laws 2000, chapter 492, article 1, section
34.2222, subdivision 10, for a grant to the city of
34.23Minneapolis, may be used by the city for
34.24improvements to the Heritage Park project.
34.25(c) Minnesota Shubert Center 1,000,000
34.26For a grant to the city of Minneapolis to
34.27predesign and design and provide for related
34.28capital costs for an associated atrium to
34.29create the Minnesota Shubert Center.
34.30EFFECTIVE DATE.This section is effective on the same date as H.F. 1973/S.F.
34.311812, if enacted in the 2007 Legislative Session.

34.32    Sec. 40. Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:
34.33
 Subd. 4.MacPhail Music Center
 5,000,000
35.1(a) For a grant to the city of Minneapolis to
35.2predesign, design, construct, furnish, and
35.3equip a new facility for the MacPhail Center
35.4for Music. The city of Minneapolis may
35.5enter into a lease or management agreement
35.6to operate the center, subject to Minnesota
35.7Statutes, section 16A.695. This appropriation
35.8is not available until the commissioner has
35.9determined that not less than $15,000,000
35.10has been committed to the MacPhail Center
35.11for Music from nonstate sources, and that
35.12the available money is sufficient to complete
35.13a functional facility. Money secured before
35.14the effective date of this section may count
35.15toward the required commitment of nonstate
35.16sources, provided it is used for qualified
35.17capital expenditures. Any land acquisition
35.18costs paid by MacPhail Center for Music
35.19qualify as capital expenditures.
35.20(b) The city of Minneapolis may provide
35.21money to predesign, design, construct,
35.22furnish, and equip a center for music
35.23education, including classrooms and a
35.24recital hall in the city of Minneapolis,
35.25to provide a facility for education of
35.26students, music therapy programs for
35.27persons with disabilities, music teacher
35.28training opportunities, curriculum and
35.29program development, and to provide the
35.30programming in public and private schools
35.31and in partnership with other organizations
35.32throughout the state.
35.33(c) The required demonstration of a
35.34commitment of funds from nonstate sources
35.35has been met by cash, prepaid qualified
35.36expenses, and private multiyear pledges that
36.1have been converted into cash through bond
36.2financing and a letter of credit secured by
36.3a mortgage lien on the state bond financed
36.4property. The $5,000,000 construction grant
36.5shall be disbursed without requirement that
36.6the mortgage lien be released.
36.7(d) The commissioners of education and
36.8finance shall agree to a provision in the
36.9ground lease that permits the city of
36.10Minneapolis to purchase for fair market
36.11value, as that term is defined in Minnesota
36.12Statutes, section 16A.695, subdivision 1,
36.13paragraph (d), the interest of the operating
36.14lease lessee in the state bond financed
36.15property (based on investment in land
36.16and capital improvements) in the event of
36.17nonrenewal of the operating lease at the time
36.18of nonrenewal without requirement of a prior
36.19escrow for funds by the city of Minneapolis.
36.20EFFECTIVE DATE.This section is effective retroactively from June 2, 2006.

36.21    Sec. 41. Laws 2006, chapter 258, section 7, subdivision 11, is amended to read:
36.22
 Subd. 11.Water control structures
 1,000,000
36.23To rehabilitate or replace water control
36.24structures used to manage shallow lakes and
36.25wetlands for waterfowl habitat on wildlife
36.26management areas under Minnesota Statutes,
36.27section 86A.05, subdivision 8 or for the
36.28purposes of public water reserves under
36.29Minnesota Statutes, section 97A.101.

36.30    Sec. 42. Laws 2006, chapter 258, section 21, subdivision 6, is amended to read:
36.31
 Subd. 6.Redevelopment Account
 9,000,000
36.32For purposes of the redevelopment account
36.33under Minnesota Statutes, section 116J.571.
37.1$800,000 is for a grant to the city of
37.2Worthington to remediate contaminated
37.3soil and redevelop the site of the former
37.4Campbell Soup factory. This grant is exempt
37.5from the requirements of Minnesota Statutes,
37.6sections 116J.572 to 116J.575.
37.7$250,000 is for a grant to the city of
37.8Winona to predesign facilities for the
37.9Shakespeare Festival as part of the riverfront
37.10redevelopment plan. This grant is exempt
37.11from the requirements of Minnesota Statutes,
37.12sections 116J.572 to 116J.575.

37.13    Sec. 43. Laws 2006, chapter 258, section 21, subdivision 15, is amended to read:
37.14
37.15
 Subd. 15.Lewis and Clark Rural Water
System, Inc.
 3,282,000
37.16This appropriation is from the general fund.
37.17To the Public Facilities Authority for grants
37.18to the city of Luverne, city of Worthington
37.19Public Utilities, Lincoln-Pipestone rural
37.20water system, and Rock County rural water
37.21system Lewis and Clark Joint Powers
37.22Board to acquire land, predesign, design,
37.23construct, furnish, and equip one or more
37.24water transmission and storage facilities to
37.25accommodate the connection with of the
37.26Lewis and Clark Rural Water System, Inc.
37.27that will serve southwestern Minnesota.
37.28The grants Payment to the Lewis and Clark
37.29Rural Water System, Inc., must be awarded
37.30to projects approved by the Lewis and Clark
37.31Joint Powers Board.
37.32This appropriation is available to the extent
37.33that each $1 of state money is matched by at
37.34least $1 of local money paid to the Lewis and
37.35Clark Rural Water System, Inc. to reimburse
38.1the system for costs incurred on eligible
38.2projects.

38.3    Sec. 44. REVISOR'S INSTRUCTION.
38.4    The revisor of statutes shall change "116R.01 to 116R.16" to "116R.01 to 116R.15"
38.5wherever it appears in Minnesota Statutes.

38.6    Sec. 45. REPEALER.
38.7Minnesota Statutes 2006, sections 116R.02, subdivisions 3, 6, 7, and 9; and 116R.16,
38.8are repealed.

38.9    Sec. 46. EFFECTIVE DATE.
38.10    Except as otherwise provided, this act is effective the day following final enactment."
38.11Amend the title accordingly