1.1 A bill for an act
1.2 relating to health care facility finance; restructuring and renaming the Minnesota
1.3 Higher Education Facilities Authority as the Minnesota Health and Education
1.4 Facilities Authority; authorizing the authority to construct and finance health care
1.5 facilities; increasing bonding capacity; amending Minnesota Statutes 2024, sections
1.6 3.732, subdivision 1; 10A.01, subdivision 35; 136A.25; 136A.26; 136A.27;
1.7 136A.28; 136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 22, by adding a
1.8 subdivision; 136A.32, subdivisions 1, 4, by adding a subdivision; 136A.33;
1.9 136A.34, subdivisions 3, 4; 136A.36; 136A.38; 136A.41; 136A.42; 136F.67,
1.10 subdivision 1; 354B.20, subdivision 7; repealing Minnesota Statutes 2024, section
1.11 136A.29, subdivision 4.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 ARTICLE 1
1.14 MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY
1.15 Section 1. Minnesota Statutes 2024, section 136A.25, is amended to read:
1.16 136A.25 CREATION.
1.17 A state agency known as the Minnesota Higher Health and Education Facilities Authority
1.18is hereby created.
1.19 Sec. 2. Minnesota Statutes 2024, section 136A.26, is amended to read:
1.20 136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.
1.21 Subdivision 1.Membership.The Minnesota Higher Health and Education Facilities
1.22Authority shall consist of eight nine members appointed by the governor with the advice
1.23and consent of the senate, and a representative of the office Office of Higher Education.
1Article 1 Sec. 2.
REVISOR VH/AC 25-0145402/12/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1165
NINETY-FOURTH SESSION
Authored by Bahner, Davids, Schomacker, Zeleznikar and Wolgamott02/19/2025
The bill was read for the first time and referred to the Committee on Health Finance and Policy 2.1 All members to be appointed by the governor shall be residents of the state. At least two
2.2members must reside outside the metropolitan area as defined in section 473.121, subdivision
2.32. At least one of the members shall be a person having a favorable reputation for skill,
2.4knowledge, and experience in the field of state and municipal finance; and at least one shall
2.5be a person having a favorable reputation for skill, knowledge, and experience in the building
2.6construction field; and at least one of the members shall be a trustee, director, officer, or
2.7employee of an institution of higher education; and at least one of the members shall be a
2.8trustee, director, officer, or employee of a health care organization.
2.9 Subd. 1a.Private College Council member.The president of the Minnesota Private
2.10College Council, or the president's designee, shall serve without compensation as an advisory,
2.11nonvoting member of the authority.
2.12 Subd. 1b.Nonprofit health care association member.The chief executive officer of
2.13a Minnesota nonprofit membership association whose members are primarily nonprofit
2.14health care organizations, or the chief executive officer's designee, shall serve without
2.15compensation as an advisory, nonvoting member of the authority. The identity of the
2.16Minnesota nonprofit membership association shall be determined and may be changed from
2.17time to time by the members of the authority in accordance with and as shall be provided
2.18in the bylaws of the authority.
2.19 Subd. 2.Term; compensation; removal.The membership terms, compensation, removal
2.20of members, and filling of vacancies for authority members other than the representative
2.21of the office, and the president of the Private College Council, or the chief executive officer
2.22of the Minnesota nonprofit membership association described in subdivision 1b shall be as
2.23provided in section 15.0575.
2.24 Sec. 3. Minnesota Statutes 2024, section 136A.27, is amended to read:
2.25 136A.27 POLICY.
2.26 It is hereby declared that for the benefit of the people of the state, the increase of their
2.27commerce, welfare and prosperity and the improvement of their health and living conditions
2.28it is essential that health care organizations within the state be provided with appropriate
2.29additional means to establish, acquire, construct, improve, and expand health care facilities
2.30in furtherance of their purposes; that this and future generations of youth be given the fullest
2.31opportunity to learn and to develop their intellectual and mental capacities; that it is essential
2.32that institutions of higher education within the state be provided with appropriate additional
2.33means to assist such youth in achieving the required levels of learning and development of
2.34their intellectual and mental capacities; and that health care organizations and institutions
2Article 1 Sec. 3.
REVISOR VH/AC 25-0145402/12/25 3.1of higher education be enabled to refinance outstanding indebtedness incurred to provide
3.2existing facilities used for such those purposes in order to preserve and enhance the utilization
3.3of facilities for purposes of health care and higher education, to extend or adjust maturities
3.4in relation to the resources available for their payment, and to save interest costs and thereby
3.5reduce health care costs or higher education tuition, fees, and charges; and. It is hereby
3.6further declared that it is the purpose of sections 136A.25 to 136A.42 to provide a measure
3.7of assistance and an alternative method to enable health care organizations and institutions
3.8of higher education in the state to provide the facilities and structures which are sorely
3.9needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit
3.10and good, to the extent and manner provided herein.
3.11 Sec. 4. Minnesota Statutes 2024, section 136A.28, is amended to read:
3.12 136A.28 DEFINITIONS.
3.13 Subdivision 1.Scope.In sections 136A.25 to 136A.42, the following words and terms
3.14shall, unless the context otherwise requires, have the meanings ascribed to them.
3.15 Subd. 1a.Affiliate."Affiliate" means an entity that directly or indirectly controls, is
3.16controlled by, or is under common control with, another entity. For the purposes of this
3.17subdivision, "control" means either the power to elect a majority of the members of the
3.18governing body of an entity or the power, whether by contract or otherwise, to direct the
3.19management and policies of the entity. Affiliate also means an entity whose business or
3.20substantially all of whose property is operated under a lease, management agreement, or
3.21operating agreement by another entity, or an entity who operates the business or substantially
3.22all of the property of another entity under a lease, management agreement, or operating
3.23agreement.
3.24 Subd. 2.Authority."Authority" means the Higher Health and Education Facilities
3.25Authority created by sections 136A.25 to 136A.42.
3.26 Subd. 3.Project."Project" means a structure or structures available for use as a dormitory
3.27or other student housing facility, a dining hall, student union, administration building,
3.28academic building, library, laboratory, research facility, classroom, athletic facility, health
3.29care facility, child care facility, and maintenance, storage, or utility facility and other
3.30structures or facilities related thereto or required or useful for the instruction of students or
3.31the conducting of research or the operation of an institution of higher education, whether
3.32proposed, under construction, or completed, including parking and other facilities or
3.33structures essential or convenient for the orderly conduct of such institution for higher
3.34education, and shall also include landscaping, site preparation, furniture, equipment and
3Article 1 Sec. 4.
REVISOR VH/AC 25-0145402/12/25 4.1machinery, and other similar items necessary or convenient for the operation of a particular
4.2facility or structure in the manner for which its use is intended but shall not include such
4.3items as books, fuel, supplies, or other items the costs of which are customarily deemed to
4.4result in a current operating charge, and shall a health care facility or an education facility
4.5whether proposed, under construction, or completed, and includes land or interests in land,
4.6appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures,
4.7furniture, machinery, equipment, and parking. Project also includes other structures, facilities,
4.8improvements, machinery, equipment, and means of transport of a capital nature that are
4.9necessary or convenient for the operation of the facility. Project does not include: (1) any
4.10facility used or to be used for sectarian instruction or as a place of religious worship nor;
4.11(2) any facility which is used or to be used primarily in connection with any part of the
4.12program of a school or department of divinity for any religious denomination; nor (3) any
4.13books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are
4.14customarily deemed to result in a current operating charge.
4.15 Subd. 4.Cost."Cost," as applied to a project or any portion thereof financed under the
4.16provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction,
4.17acquisition, alteration, enlargement, reconstruction and remodeling of a project including
4.18all lands, structures, real or personal property, rights, rights-of-way, franchises, easements
4.19and interests acquired or used for or in connection with a project, the cost of demolishing
4.20or removing any buildings or structures on land so acquired, including the cost of acquiring
4.21any lands to which such the buildings or structures may be moved, the cost of all machinery
4.22and equipment, financing charges, interest prior to, during and for a period after completion
4.23of such construction and acquisition, provisions for reserves for principal and interest and
4.24for extensions, enlargements, additions and improvements, the cost of architectural,
4.25engineering, financial and legal services, plans, specifications, studies, surveys, estimates
4.26of cost and of revenues, administrative expenses, expenses necessary or incident to
4.27determining the feasibility or practicability of constructing the project and such other
4.28expenses as may be necessary or incident to the construction and acquisition of the project,
4.29the financing of such construction and acquisition and the placing of the project in operation.
4.30 Subd. 5.Bonds."Bonds," or "revenue bonds" means revenue bonds of the authority
4.31issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding
4.32bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit
4.33of a participating institution for higher education or any other lawfully pledged security of
4.34a participating institution for higher education.
4Article 1 Sec. 4.
REVISOR VH/AC 25-0145402/12/25 5.1 Subd. 6.Institution of higher education."Institution of higher education" means a
5.2nonprofit educational institution within the state authorized to provide a program of education
5.3beyond the high school level.
5.4 Subd. 6a.Health care organization.(a) "Health care organization" means a nonprofit
5.5organization located within the state and authorized by law to operate a nonprofit health
5.6care facility in the state. Health care organization also means a nonprofit affiliate of a health
5.7care organization as defined under this paragraph, provided the affiliate is located within
5.8the state or within a state that is geographically contiguous to Minnesota.
5.9 (b) Health care organization also means a nonprofit organization located within another
5.10state that is geographically contiguous to Minnesota and authorized by law to operate a
5.11nonprofit health care facility in that state, provided that the nonprofit organization located
5.12within the contiguous state is an affiliate of a health care organization located within
5.13Minnesota.
5.14 Subd. 6b.Education facility."Education facility" means a structure or structures
5.15available for use as a dormitory or other student housing facility, dining hall, student union,
5.16administration building, academic building, library, laboratory, research facility, classroom,
5.17athletic facility, student health care facility, or child care facility, and includes other facilities
5.185.19or structures related to the essential or convenient orderly conduct of an institution of higher
education.
5.20 Subd. 6c.Health care facility.(a) "Health care facility" means a structure or structures
5.21available for use within this state as a hospital, clinic, psychiatric residential treatment
5.22facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
5.23facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
5.24facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
5.25medical office building, residence for nurses or interns, nursing home, boarding care home,
5.26assisted living facility, residential hospice, intermediate care facility for persons with
5.27developmental disabilities, supervised living facility, housing with services establishment,
5.28board and lodging establishment with special services, adult day care center, day services
5.29facility, prescribed pediatric extended care facility, community residential setting, adult
5.30foster home, or other facility related to medical or health care research, or the delivery or
5.315.32administration of health care services, and includes other structures or facilities related to
the essential or convenient orderly conduct of a health care organization.
5Article 1 Sec. 4.
REVISOR VH/AC 25-0145402/12/25 6.1 (b) Health care facility also means a facility in a state that is geographically contiguous
6.2to Minnesota operated by a health care organization that corresponds by purpose, function,
6.3or use with a facility listed in paragraph (a).
6.4 Subd. 7.Participating institution of higher education."Participating institution of
6.5higher education" means a health care organization or an institution of higher education
6.6that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and
6.7construction or acquisition of a project or undertakes the refunding or refinancing of
6.8obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42.
6.9Community colleges and technical colleges may be considered participating institutions of
6.10higher education for the purpose of financing and constructing child care facilities and
6.11parking facilities.
6.12 Sec. 5. Minnesota Statutes 2024, section 136A.29, subdivision 1, is amended to read:
6.13 Subdivision 1.Purpose.The purpose of the authority shall be to assist health care
6.14organizations and institutions of higher education in the construction, financing, and
6.15refinancing of projects. The exercise by the authority of the powers conferred by sections
6.16136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public
6.17function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the
6.18powers and duties set forth in subdivisions 2 to 23.
6.19 Sec. 6. Minnesota Statutes 2024, section 136A.29, subdivision 3, is amended to read:
6.20 Subd. 3.Employees; office space.The authority is authorized and empowered to appoint
6.21and employ employees as it may deem necessary to carry out its duties, determine the title
6.22of the employees so employed, and fix the salary of said its employees. Employees of the
6.23authority shall participate in retirement and other benefits in the same manner that employees
6.24in the unclassified service of the office managerial plan under section 43A.18, subdivision
6.253, participate. The authority may maintain an office space as it may designate.
6.26 Sec. 7. Minnesota Statutes 2024, section 136A.29, subdivision 6, is amended to read:
6.27 Subd. 6.Projects; generally.(a) The authority is authorized and empowered to determine
6.28the location and character of any project to be financed under the provisions of sections
6.29136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge,
6.30alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into
6.31contracts for any or all of such these purposes, to enter into contracts for the management
6.32and operation of a project, and to designate a participating institution of higher education
6Article 1 Sec. 7.
REVISOR VH/AC 25-0145402/12/25 7.1as its agent to determine the location and character of a project undertaken by such a
7.2participating institution of higher education under the provisions of sections 136A.25 to
7.3136A.42 and as the agent of the authority, to construct, reconstruct, remodel, maintain,
7.4manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the
7.5same, and as the agent of the authority, to enter into contracts for any or all of such these
7.6purposes, including contracts for the management and operation of such the project.
7.7 (b) Notwithstanding paragraph (a), a project involving a health care facility within the
7.8state financed under sections 136A.25 to 136A.42, must comply with all applicable
7.9requirements in state law related to authorizing construction of or modifications to a health
7.10care facility, including the requirements of sections 144.5509, 144.551, 144A.071, and
7.11252.291.
7.12 (c) Contracts of the authority or of a participating institution of higher education to
7.13acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair
7.14projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other
7.15public contract or competitive bid law.
7.16 Sec. 8. Minnesota Statutes 2024, section 136A.29, subdivision 9, is amended to read:
7.17 Subd. 9.Revenue bonds; limit.(a) The authority is authorized and empowered to issue
7.18revenue bonds whose aggregate principal amount at any time shall not exceed $2,000,000,000
7.19$5,000,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds
7.20of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for
7.21acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving,
7.22furnishing, or equipping one or more projects or parts thereof.
7.23 (b) Of the $5,000,000,000 limit in paragraph (a), the aggregate principal amount used
7.24to fund education facilities may not exceed $2,250,000,000 at any time, and the aggregate
7.25principal amount used to fund health care facilities may not exceed $2,750,000,000 at any
7.26time.
7.27 Sec. 9. Minnesota Statutes 2024, section 136A.29, subdivision 10, is amended to read:
7.28 Subd. 10.Revenue bonds; issuance, purpose, conditions.The authority is authorized
7.29and empowered to issue revenue bonds to acquire projects from or to make loans to
7.30participating institutions of higher education and thereby refinance outstanding indebtedness
7.31incurred by participating institutions of higher education to provide funds for the acquisition,
7.32construction or improvement of a facility before or after the enactment of sections 136A.25
7.33to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the
7Article 1 Sec. 9.
REVISOR VH/AC 25-0145402/12/25 8.1authority finds that such the refinancing will enhance or preserve such participating
8.2institutions and such the facilities or utilization thereof that is for health care or educational
8.3purposes or extend or adjust maturities to correspond to the resources available for their
8.4payment, or reduce charges or fees imposed on patients or occupants, or the tuition, charges,
8.5or fees imposed on students for the use or occupancy of the facilities of such the participating
8.6institutions of higher education or costs met by federal or state public funds, or enhance or
8.7preserve health care or educational programs and research or the acquisition or improvement
8.8of other facilities eligible to be a project or part thereof by the participating institution of
8.9higher education. The amount of revenue bonds to be issued to refinance outstanding
8.10indebtedness of a participating institution of higher education shall not exceed the lesser of
8.11(a) the fair value of the project to be acquired by the authority from the institution or
8.12mortgaged to the authority by the institution or (b) the amount of the outstanding indebtedness
8.13including any premium thereon and any interest accrued or to accrue to the date of redemption
8.14and any legal, fiscal and related costs in connection with such the refinancing and reasonable
8.15reserves, as determined by the authority. The provisions of this subdivision do not prohibit
8.16the authority from issuing revenue bonds within and charged against the limitations provided
8.17in subdivision 9 to provide funds for improvements, alteration, renovation, or extension of
8.18the project refinanced.
8.19 Sec. 10. Minnesota Statutes 2024, section 136A.29, subdivision 14, is amended to read:
8.20 Subd. 14.Rules for use of projects.The authority is authorized and empowered to
8.21establish rules for the use of a project or any portion thereof and to designate a participating
8.22institution of higher education as its agent to establish rules for the use of a project undertaken
8.23for such a participating institution of higher education.
8.24 Sec. 11. Minnesota Statutes 2024, section 136A.29, subdivision 19, is amended to read:
8.25 Subd. 19.Surety.Before the issuance of any revenue bonds under the provisions of
8.26sections 136A.25 to 136A.42, any member or officer of the authority authorized by resolution
8.27of the authority to handle funds or sign checks of the authority shall be covered under a
8.28surety or fidelity bond in an amount to be determined by the authority. Each such bond shall
8.29be conditioned upon the faithful performance of the duties of the office of the member or
8.30officer, and shall be executed by a surety company authorized to transact business in the
8.31state of Minnesota as surety. The cost of each such bond shall be paid by the authority.
8Article 1 Sec. 11.
REVISOR VH/AC 25-0145402/12/25 9.1 Sec. 12. Minnesota Statutes 2024, section 136A.29, subdivision 20, is amended to read:
9.2 Subd. 20.Sale, lease, and disposal of property.The authority is authorized and
9.3empowered to sell, lease, release, or otherwise dispose of real and personal property or
9.4interests therein, or a combination thereof, acquired by the authority under authority of
9.5sections 136A.25 to 136A.42 and no longer needed for the purposes of such this chapter or
9.6of the authority, and grant such easements and other rights in, over, under, or across a project
9.7as will not interfere with its use of such the property. Such The sale, lease, release,
9.8disposition, or grant may be made without competitive bidding and in such the manner and
9.9for such consideration as the authority in its judgment deems appropriate.
9.10 Sec. 13. Minnesota Statutes 2024, section 136A.29, subdivision 21, is amended to read:
9.11 Subd. 21.Loans.The authority is authorized and empowered to make loans to any
9.12participating institution of higher education for the cost of a project in accordance with an
9.13agreement between the authority and the participating institution of higher education;
9.14provided that no such loan shall exceed the total cost of the project as determined by the
9.15participating institution of higher education and approved by the authority.
9.16 Sec. 14. Minnesota Statutes 2024, section 136A.29, subdivision 22, is amended to read:
9.17 Subd. 22.Costs, expenses, and other charges.The authority is authorized and
9.18empowered to charge to and apportion among participating institutions of higher education
9.19its administrative costs and expenses incurred in the exercise of the powers and duties
9.20conferred by sections 136A.25 to 136A.42 in the manner as the authority in its judgment
9.21deems appropriate.
9.22 Sec. 15. Minnesota Statutes 2024, section 136A.29, is amended by adding a subdivision
9.23to read:
9.24 Subd. 24.Determination of affiliate status.The authority is authorized and empowered
9.25to determine whether an entity is an affiliate as defined in section 136A.28, subdivision 1a.
9.26A determination by the authority of affiliate status shall be deemed conclusive for the
9.27purposes of sections 136A.25 to 136A.42.
9.28 Sec. 16. Minnesota Statutes 2024, section 136A.32, subdivision 1, is amended to read:
9.29 Subdivision 1.Bonds; generally.(a) The authority may from time to time issue revenue
9.30bonds for purposes of sections 136A.25 to 136A.42, and all such revenue bonds, notes,
9.31bond anticipation notes or other obligations of the authority issued pursuant to sections
9Article 1 Sec. 16.
REVISOR VH/AC 25-0145402/12/25 10.1136A.25 to 136A.42 shall be and are hereby declared to be negotiable for all purposes
10.2notwithstanding their payment from a limited source and without regard to any other law
10.3or laws. In anticipation of the sale of such revenue bonds, the authority may issue negotiable
10.4bond anticipation notes and may renew the same from time to time, but the maximum
10.5maturity of any such note, including renewals thereof, shall not exceed five years from the
10.6date of issue of the original note. Such Notes shall be paid from any revenues of the authority
10.7available therefor and not otherwise pledged, or from the proceeds of sale of the revenue
10.8bonds of the authority in anticipation of which they were issued. The notes shall be issued
10.9in the same manner as the revenue bonds. Such notes and the resolution or resolutions
10.10authorizing the same may contain any provisions, conditions or limitations which a bond
10.11resolution or the authority may contain.
10.12 (b) Before issuing revenue bonds, notes, or other obligations under paragraph (a) on
10.13behalf of a health care organization to finance health care facilities, the authority must obtain
10.14consent by resolution from each city or town in which the project is located, except that
10.15consent need not be obtained in the case of a city or town with a population of less than
10.16100,000. The consent by resolution requirement does not apply to financing under paragraph
10.17(a) on behalf of a participating institution which is primarily an institution of higher
10.18education.
10.19Sec. 17. Minnesota Statutes 2024, section 136A.32, subdivision 4, is amended to read:
10.20 Subd. 4.Provisions of resolution authorizing bonds.Any resolution or resolutions
10.21authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which
10.22shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:
10.23 (1) pledging all or any part of the revenues of a project or projects, any revenue producing
10.24contract or contracts made by the authority with any individual partnership, corporation or
10.25association or other body one or more partnerships, corporations or associations, or other
10.26bodies, public or private, to secure the payment of the revenue bonds or of any particular
10.27issue of revenue bonds, subject to such agreements with bondholders as may then exist;
10.28 (2) the rentals, fees and other charges to be charged, and the amounts to be raised in
10.29each year thereby, and the use and disposition of the revenues;
10.30 (3) the setting aside of reserves or sinking funds, and the regulation and disposition
10.31thereof of them;
10.32 (4) limitations on the right of the authority or its agent to restrict and regulate the use of
10.33the project;
10Article 1 Sec. 17.
REVISOR VH/AC 25-0145402/12/25 11.1 (5) limitations on the purpose to which the proceeds of sale of any issue of revenue
11.2bonds then or thereafter to be issued may be applied and pledging such the proceeds to
11.3secure the payment of the revenue bonds or any issue of the revenue bonds;
11.4 (6) limitations on the issuance of additional bonds, the terms upon which additional
11.5bonds may be issued and secured and the refunding of outstanding bonds;
11.6 (7) the procedure, if any, by which the terms of any contract with bondholders may be
11.7amended or abrogated, the amount of bonds the holders of which must consent thereto to,
11.8and the manner in which such consent may be given;
11.9 (8) limitations on the amount of moneys derived from the project to be expended for
11.10operating, administrative or other expenses of the authority;
11.11 (9) defining the acts or omissions to act which shall constitute a default in the duties of
11.12the authority to holders of its obligations and providing the rights and remedies of such the
11.13holders in the event of a default; or
11.14 (10) the mortgaging of a project and the site thereof for the purpose of securing the
11.15bondholders.
11.16Sec. 18. Minnesota Statutes 2024, section 136A.32, is amended by adding a subdivision
11.17to read:
11.18 Subd. 4a.Health care certification.Health care organizations must provide the authority
11.19with a signed certificate from the health care organization stating that so long as authority
11.20financing for the health care organization remains outstanding, none of the proceeds of the
11.21bonds to the health care organization may be directly or indirectly used to benefit a private
11.22party or private equity-funded entity.
11.23Sec. 19. Minnesota Statutes 2024, section 136A.33, is amended to read:
11.24 136A.33 TRUST AGREEMENT.
11.25 In the discretion of the authority any revenue bonds issued under the provisions of
11.26sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the
11.27authority and a corporate trustee or trustees, which may be any trust company or bank having
11.28the powers of a trust company within the state. Such The trust agreement or the resolution
11.29providing for the issuance of such revenue bonds may pledge or assign the revenues to be
11.30received or proceeds of any contract or contracts pledged and may convey or mortgage the
11.31project or any portion thereof of it. Such The trust agreement or resolution providing for
11.32the issuance of such revenue bonds may contain such provisions for protecting and enforcing
11Article 1 Sec. 19.
REVISOR VH/AC 25-0145402/12/25 12.1the rights and remedies of the bondholders as may be reasonable and proper and not in
12.2violation of laws, including particularly such particular provisions as have hereinabove that
12.3have been specifically authorized to be included in any resolution or resolutions of the
12.4authority authorizing revenue bonds thereof. Any bank or trust company incorporated under
12.5the laws of the state which that may act as depository of the proceeds of bonds or of revenues
12.6or other moneys may furnish such indemnifying bonds or pledges such pledge securities as
12.7may be required by the authority. Any such trust agreement may set forth the rights and
12.8remedies of the bondholders and of the trustee or trustees and may restrict the individual
12.9right of action by bondholders. In addition to the foregoing, any such trust agreement or
12.10resolution may contain such other provisions as the authority may deem reasonable and
12.11proper for the security of the bondholders. All expenses incurred in carrying out the
12.12provisions of such the trust agreement or resolution may be treated as a part of the cost of
the operation of a project.
12.13Sec. 20. Minnesota Statutes 2024, section 136A.34, subdivision 3, is amended to read:
12.14 Subd. 3.Investment.Any such escrowed proceeds, pending such use, may be invested
12.15and reinvested in direct obligations of the United States of America, or in certificates of
12.16deposit or time deposits secured by direct obligations of the United States of America, or
12.17in shares or units in any money market mutual fund whose investment portfolio consists
12.18solely of direct obligations of the United States of America, maturing at such a time or times
12.19as shall be appropriate to assure the prompt payment, as to principal, interest and redemption
12.20premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income
12.21and profits, if any, earned or realized on any such investment may also be applied to the
12.22payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow
12.23have been fully satisfied and carried out, any balance of such the proceeds and interest,
12.24income and profits, if any, earned or realized on the investments thereof may be returned
12.25to the authority for use by it in any lawful manner.
12.26Sec. 21. Minnesota Statutes 2024, section 136A.34, subdivision 4, is amended to read:
12.27 Subd. 4.Additional purpose; improvements.The portion of the proceeds of any such
12.28revenue bonds issued for the additional purpose of paying all or any part of the cost of
12.29constructing and acquiring additions, improvements, extensions or enlargements of a project
12.30may be invested or deposited in time deposits as provided in section 136A.32, subdivision
12.317.
12Article 1 Sec. 21.
REVISOR VH/AC 25-0145402/12/25 13.1 Sec. 22. Minnesota Statutes 2024, section 136A.36, is amended to read:
13.2 136A.36 REVENUES.
13.3 The authority may fix, revise, charge and collect rates, rents, fees and charges for the
13.4use of and for the services furnished or to be furnished by each project and to may contract
13.5with any person, partnership, association or corporation, or other body, public or private,
13.6in respect thereof. Such The rates, rents, fees, and charges may vary between projects
13.7involving an education facility and projects involving a health care facility and shall be
13.8fixed and adjusted in respect of the aggregate of rates, rents, fees, and charges from such
13.9the project so as to provide funds sufficient with other revenues, if any:
13.10 (1) to pay the cost of maintaining, repairing and operating the project and each and every
13.11portion thereof of it, to the extent that the payment of such the cost has not otherwise been
13.12adequately provided for;
13.13 (2) to pay the principal of and the interest on outstanding revenue bonds of the authority
13.14issued in respect of such project as the same shall become due and payable; and
13.15 (3) to create and maintain reserves required or provided for in any resolution authorizing,
13.16or trust agreement securing, such revenue bonds of the authority. Such The rates, rents, fees
13.17and charges shall not be subject to supervision or regulation by any department, commission,
13.18board, body, bureau or agency of this state other than the authority. A sufficient amount of
13.19the revenues derived in respect of a project, except such part of such the revenues as may
13.20be necessary to pay the cost of maintenance, repair and operation and to provide reserves
13.21and for renewals, replacements, extensions, enlargements and improvements as may be
13.22provided for in the resolution authorizing the issuance of any revenue bonds of the authority
13.23or in the trust agreement securing the same, shall be set aside at such regular intervals as
13.24may be provided in such the resolution or trust agreement in a sinking or other similar fund
13.25which that is hereby pledged to, and charged with, the payment of the principal of and the
13.26interest on such revenue bonds as the same shall become due, and the redemption price or
13.27the purchase price of bonds retired by call or purchase as therein provided. Such The pledge
13.28shall be valid and binding from the time when the pledge is made; the rates, rents, fees and
13.29charges and other revenues or other moneys so pledged and thereafter received by the
13.30authority shall immediately be subject to the lien of such the pledge without physical delivery
13.31thereof or further act, and the lien of any such pledge shall be valid and binding as against
13.32all parties having claims of any kind against the authority, irrespective of whether such the
13.33parties have notice thereof of it. Neither the resolution nor any trust agreement by which a
13.34pledge is created need be filed or recorded except in the records of the authority. The use
13Article 1 Sec. 22.
REVISOR VH/AC 25-0145402/12/25 14.1and disposition of moneys to the credit of such a sinking or other similar fund shall be
14.2subject to the provisions of the resolution authorizing the issuance of such bonds or of such
14.3a trust agreement. Except as may otherwise be provided in such the resolution or such trust
14.4agreement, such the sinking or other similar fund shall be a fund for all such revenue bonds
14.5issued to finance a project or projects at one or more participating institutions of higher
14.6education without distinction or priority of one over another; provided the authority in any
14.7such resolution or trust agreement may provide that such the sinking or other similar fund
14.8shall be the fund for a particular project at an a participating institution of higher education
14.9and for the revenue bonds issued to finance a particular project and may, additionally, permit
14.10and provide for the issuance of revenue bonds having a subordinate lien in respect of the
14.11security herein authorized to other revenue bonds of the authority and, in such case, the
14.12authority may create separate or other similar funds in respect of such the subordinate lien
14.13bonds.
14.14Sec. 23. Minnesota Statutes 2024, section 136A.38, is amended to read:
14.15 136A.38 BONDS ELIGIBLE FOR INVESTMENT.
14.16 Bonds issued by the authority under the provisions of sections 136A.25 to 136A.42, are
14.17hereby made securities in which all public officers and public bodies of the state and its
14.18political subdivisions, all insurance companies, trust companies, banking associations,
14.19investment companies, executors, administrators, trustees and other fiduciaries may properly
14.20and legally invest funds, including capital in their control or belonging to them; it being the
14.21purpose of this section to authorize the investment in such bonds of all sinking, insurance,
14.22retirement, compensation, pension and trust funds, whether owned or controlled by private
14.23or public persons or officers; provided, however, that nothing contained in this section may
14.24be construed as relieving any person, firm, or corporation from any duty of exercising due
14.25care in selecting securities for purchase or investment; and provide further, that in no event
14.26shall assets of pension funds of public employees of the state of Minnesota or any of its
14.27agencies, boards or subdivisions, whether publicly or privately administered, be invested
14.28in bonds issued under the provisions of sections 136A.25 to 136A.42. Such bonds are hereby
14.29constituted "authorized securities" within the meaning and for the purposes of Minnesota
14.30Statutes 1969, section 50.14. Such The bonds are hereby made securities which that may
14.31properly and legally be deposited with and received by any state or municipal officer or any
14.32agency or political subdivision of the state for any purpose for which the deposit of bonds
14.33or obligations of the state now or may hereafter be authorized by law.
14Article 1 Sec. 23.
REVISOR VH/AC 25-0145402/12/25 15.1 Sec. 24. Minnesota Statutes 2024, section 136A.41, is amended to read:
15.2 136A.41 CONFLICT OF INTEREST.
15.3 Notwithstanding any other law to the contrary it shall not be or constitute a conflict of
15.4interest for a trustee, director, officer or employee of any participating institution of higher
15.5education, financial institution, investment banking firm, brokerage firm, commercial bank
15.6or trust company, architecture firm, insurance company, construction company, or any other
15.7firm, person or corporation to serve as a member of the authority, provided such the trustee,
15.8director, officer or employee shall abstain from deliberation, action and vote by the authority
15.9in each instance where the business affiliation of any such trustee, director, officer or
15.10employee is involved.
15.11Sec. 25. Minnesota Statutes 2024, section 136A.42, is amended to read:
15.12 136A.42 ANNUAL REPORT.
15.13 The authority shall keep an accurate account of all of its activities and all of its receipts
15.14and expenditures and shall annually report to the office. Each year, the authority shall submit
15.15to the Minnesota Historical Society and the Legislative Reference Library a report of the
15.16authority's activities in the previous year, including all financial activities.
15.17Sec. 26. REVISOR INSTRUCTION.
15.18 The revisor of statutes shall renumber the law establishing and governing the Minnesota
15.19Higher Education Facilities Authority, renamed the Minnesota Health and Education
15.20Facilities Authority in this act, as Minnesota Statutes, chapter 15D, coded in Minnesota
15.21Statutes 2020, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor
15.22of statutes shall also duplicate any required definitions from Minnesota Statutes, chapter
15.23136A, revise any statutory cross-references consistent with the recoding, and report the
15.24history in Minnesota Statutes, chapter 15D. The revisor of statutes shall change "Minnesota
15.2515.26Higher Education Facilities Authority" to "Minnesota Health and Higher Education Facilities
Authority" where it appears in Minnesota Statutes.
15.27Sec. 27. REPEALER.
15.28 Minnesota Statutes 2024, section 136A.29, subdivision 4, is repealed.
15Article 1 Sec. 27.
REVISOR VH/AC 25-0145402/12/25 16.1 ARTICLE 2
16.2 MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY
16.3 CONFORMING AMENDMENTS
16.4 Section 1. Minnesota Statutes 2024, section 3.732, subdivision 1, is amended to read:
16.5 Subdivision 1.Definitions.As used in this section and section 3.736 the terms defined
16.6in this section have the meanings given them.
16.7 (1) "State" includes each of the departments, boards, agencies, commissions, courts, and
16.8officers in the executive, legislative, and judicial branches of the state of Minnesota and
16.9includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
16.10Education, the Higher Health and Education Facilities Authority, the Health Technology
16.11Advisory Committee, the Armory Building Commission, the Zoological Board, the
16.12Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society,
16.13the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges
16.14and Universities, state hospitals, and state penal institutions. It does not include a city, town,
16.15county, school district, or other local governmental body corporate and politic.
16.16 (2) "Employee of the state" means all present or former officers, members, directors, or
16.17employees of the state, members of the Minnesota National Guard, members of a bomb
16.18disposal unit approved by the commissioner of public safety and employed by a municipality
16.19defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
16.20similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
16.21municipality but within the state, or persons acting on behalf of the state in an official
16.22capacity, temporarily or permanently, with or without compensation. It does not include
16.23either an independent contractor except, for purposes of this section and section 3.736 only,
16.24a guardian ad litem acting under court appointment, or members of the Minnesota National
16.25Guard while engaged in training or duty under United States Code, title 10, or title 32,
16.26section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
16.27sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
16.28of the state" includes a district public defender or assistant district public defender in the
16.29Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
16.30and any officer, agent, or employee of the state of Wisconsin performing work for the state
16.31of Minnesota pursuant to a joint state initiative.
16.32 (3) "Scope of office or employment" means that the employee was acting on behalf of
16.33the state in the performance of duties or tasks lawfully assigned by competent authority.
16.34 (4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.
16Article 2 Section 1.
REVISOR VH/AC 25-0145402/12/25 17.1 Sec. 2. Minnesota Statutes 2024, section 10A.01, subdivision 35, is amended to read:
17.2 Subd. 35.Public official."Public official" means any:
17.3 (1) member of the legislature;
17.4 (2) individual employed by the legislature as secretary of the senate, legislative auditor,
17.5director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
17.6of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
17.7Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
17.8Department;
17.9 (3) constitutional officer in the executive branch and the officer's chief administrative
17.10deputy;
17.11 (4) solicitor general or deputy, assistant, or special assistant attorney general;
17.12 (5) commissioner, deputy commissioner, or assistant commissioner of any state
17.13department or agency as listed in section 15.01 or 15.06, or the state chief information
17.14officer;
17.15 (6) member, chief administrative officer, or deputy chief administrative officer of a state
17.16board or commission that has either the power to adopt, amend, or repeal rules under chapter
17.1714, or the power to adjudicate contested cases or appeals under chapter 14;
17.18 (7) individual employed in the executive branch who is authorized to adopt, amend, or
17.19repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
17.20 (8) executive director of the State Board of Investment;
17.21 (9) deputy of any official listed in clauses (7) and (8);
17.22 (10) judge of the Workers' Compensation Court of Appeals;
17.23 (11) administrative law judge or compensation judge in the State Office of Administrative
17.24Hearings or unemployment law judge in the Department of Employment and Economic
17.25Development;
17.26 (12) member, regional administrator, division director, general counsel, or operations
17.27manager of the Metropolitan Council;
17.28 (13) member or chief administrator of a metropolitan agency;
17.29 (14) director of the Division of Alcohol and Gambling Enforcement in the Department
17.30of Public Safety;
17Article 2 Sec. 2.
REVISOR VH/AC 25-0145402/12/25 18.1 (15) member or executive director of the Higher Health and Education Facilities
18.2Authority;
18.3 (16) member of the board of directors or president of Enterprise Minnesota, Inc.;
18.4 (17) member of the board of directors or executive director of the Minnesota State High
18.5School League;
18.6 (18) member of the Minnesota Ballpark Authority established in section 473.755;
18.7 (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
18.8 (20) manager of a watershed district, or member of a watershed management organization
18.9as defined under section 103B.205, subdivision 13;
18.10 (21) supervisor of a soil and water conservation district;
18.11 (22) director of Explore Minnesota Tourism;
18.12 (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
18.1397A.056;
18.14 (24) citizen member of the Clean Water Council established in section 114D.30;
18.15 (25) member or chief executive of the Minnesota Sports Facilities Authority established
18.16in section 473J.07;
18.17 (26) district court judge, appeals court judge, or supreme court justice;
18.18 (27) county commissioner;
18.19 (28) member of the Greater Minnesota Regional Parks and Trails Commission;
18.20 (29) member of the Destination Medical Center Corporation established in section
18.21469.41; or
18.22 (30) chancellor or member of the Board of Trustees of the Minnesota State Colleges
18.23and Universities.
18.24Sec. 3. Minnesota Statutes 2024, section 136F.67, subdivision 1, is amended to read:
18.25 Subdivision 1.Authorization.A technical college or a community college must not
18.26seek financing for child care facilities or parking facilities through the Higher Health and
18.27Education Facilities Authority, as provided in section 136A.28, subdivision 7, without the
18.28explicit authorization of the board.
18Article 2 Sec. 3.
REVISOR VH/AC 25-0145402/12/25 19.1 Sec. 4. Minnesota Statutes 2024, section 354B.20, subdivision 7, is amended to read:
19.2 Subd. 7.Employing unit."Employing unit," if the agency employs any persons covered
19.3by the individual retirement account plan under section 354B.211, means:
19.4 (1) the board;
19.5 (2) the Minnesota Office of Higher Education; and
19.6 (3) the Higher Health and Education Facilities Authority.
19Article 2 Sec. 4.
REVISOR VH/AC 25-0145402/12/25 Page.Ln 1.13
MINNESOTA HEALTH AND EDUCATION FACILITIES
AUTHORITY.........................................................................................ARTICLE 1
Page.Ln 16.1
MINNESOTA HEALTH AND EDUCATION FACILITIES
AUTHORITY CONFORMING AMENDMENTS ................................ARTICLE 2
1
APPENDIX
Article locations for 25-01454 136A.29 POWERS; DUTIES.
Subd. 4.Mutual agreement; staff, equipment, office space.By mutual agreement between
the authority and the office, authority staff employees may also be members of the office staff. By
mutual agreement, authority employees may be provided office space in the office of the Office of
Higher Education, and said employees may make use of equipment, supplies, and office space,
provided that the authority fully reimburses the office for salaries and for space, equipment, supplies,
and materials used. In the absence of such mutual agreement between the authority and the office,
the authority may maintain an office at such place or places as it may designate.
1R
APPENDIX
Repealed Minnesota Statutes: 25-01454