1.1 A bill for an act
1.2 relating to state government; modifying certain health and licensing provisions;
1.3 restructuring and renaming the Higher Education Facilities Authority to include
1.4 Health and increasing the bonding capacity; amending Minnesota Statutes 2024,
1.5 sections 3.732, subdivision 1; 10A.01, subdivision 35; 136A.25; 136A.26; 136A.27;
1.6 136A.28; 136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 22, by adding a
1.7 subdivision; 136A.32, subdivisions 1, 4, by adding a subdivision; 136A.33;
1.8 136A.34, subdivisions 3, 4; 136A.36; 136A.38; 136A.41; 136A.42; 136F.67,
1.9 subdivision 1; 144.98, subdivisions 8, 9; 144E.123, subdivision 3; 145.4718;
1.10 145.901, subdivision 1; 145.902, subdivisions 1, 3; 147A.02; 148.56, subdivision
1.11 1; 354B.20, subdivision 7; proposing coding for new law in Minnesota Statutes,
1.12 chapter 144; repealing Minnesota Statutes 2024, section 136A.29, subdivision 4.
1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.14 ARTICLE 1
1.15 HEALTH POLICY
1.16 Section 1. [144.6584] INFORMED CONSENT REQUIRED FOR SENSITIVE
1.17EXAMINATIONS.
1.18 Subdivision 1.Definition.For purposes of this section, "sensitive examination" means
1.19a pelvic, breast, urogenital, or rectal examination.
1.20 Subd. 2.Informed consent required; exceptions.A health professional, or a student
1.21or resident participating in a course of instruction, clinical training, or a residency program
1.22for a health profession, must not perform a sensitive examination on an anesthetized or
1.23unconscious patient unless:
1.24 (1) the patient or the patient's legally authorized representative provided prior written,
1.25informed consent to the sensitive examination for preventive, diagnostic, or treatment
1.26purposes;
1Article 1 Section 1.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT
163
Printed
Page No.State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2464
NINETY-FOURTH SESSION
Authored by Backer03/17/2025
The bill was read for the first time and referred to the Committee on Health Finance and Policy
Adoption of Report: Placed on the General Register as Amended04/10/2025
Read for the Second Time 2.1 (2) the patient or the patient's legally authorized representative provided prior written,
2.2informed consent to the sensitive examination being performed solely for educational or
2.3training purposes;
2.4 (3) the patient or the patient's legally authorized representative provided prior written,
2.5informed consent to a surgical procedure or diagnostic examination and the sensitive
2.6examination is related to that surgical procedure or diagnostic examination and is medically
2.7necessary;
2.8 (4) the patient is unconscious and incapable of providing informed consent and the
2.9sensitive examination is medically necessary for diagnostic or treatment purposes; or
2.10 (5) the sensitive examination is performed by a health professional qualified to perform
2.11the examination and is performed for purposes of collecting evidence or documenting
2.12injuries.
2.13 Subd. 3.Ground for disciplinary action.A violation of this section is a ground for
2.14disciplinary action by the health-related licensing board regulating the individual who
2.15violated this section.
2.16 Sec. 2. Minnesota Statutes 2024, section 144.98, subdivision 8, is amended to read:
2.17 Subd. 8.Exemption from national standards for quality control and personnel
2.18requirements.Effective January 1, 2012, A laboratory that analyzes samples for compliance
2.19with a permit issued under section 115.03, subdivision 5, may request exemption from the
2.20personnel requirements and specific quality control provisions for microbiology and
2.21chemistry stated in the national standards as incorporated by reference in subdivision 2a.
2.22The commissioner shall grant the exemption if the laboratory:
2.23 (1) complies with the methodology and quality control requirements, where available,
2.24in the most recent, approved edition of the Standard Methods for the Examination of Water
2.25and Wastewater as published by the Water Environment Federation; and
2.26 (2) supplies the name of the person meeting the requirements in section 115.73, or the
2.27personnel requirements in the national standard pursuant to subdivision 2a.
2.28 A laboratory applying for this exemption shall not apply for simultaneous accreditation
2.29under the national standard.
2Article 1 Sec. 2.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 3.1 Sec. 3. Minnesota Statutes 2024, section 144.98, subdivision 9, is amended to read:
3.2 Subd. 9.Exemption from national standards for proficiency testing frequency.(a)
3.3Effective January 1, 2012, A laboratory applying for or requesting accreditation under the
3.4exemption in subdivision 8 must obtain an acceptable proficiency test result for each of the
3.5laboratory's accredited or requested fields of testing. The laboratory must analyze proficiency
3.6samples selected from one of two annual proficiency testing studies scheduled by the
3.7commissioner.
3.8 (b) If a laboratory fails to successfully complete the first scheduled proficiency study,
3.9the laboratory shall:
3.10 (1) obtain and analyze a supplemental test sample within 15 days of receiving the test
3.11report for the initial failed attempt; and
3.12 (2) participate in the second annual study as scheduled by the commissioner.
3.13 (c) If a laboratory does not submit results or fails two consecutive proficiency samples,
3.14the commissioner will revoke the laboratory's accreditation for the affected fields of testing.
3.15 (d) The commissioner may require a laboratory to analyze additional proficiency testing
3.16samples beyond what is required in this subdivision if information available to the
3.17commissioner indicates that the laboratory's analysis for the field of testing does not meet
3.18the requirements for accreditation.
3.19 (e) The commissioner may collect from laboratories accredited under the exemption in
3.20subdivision 8 any additional costs required to administer this subdivision and subdivision
3.218.
3.22 Sec. 4. Minnesota Statutes 2024, section 144E.123, subdivision 3, is amended to read:
3.23 Subd. 3.Review.Prehospital care data may be reviewed by the director or its designees.
3.24The data shall be classified as private data on individuals under chapter 13, the Minnesota
3.25Government Data Practices Act. The director may share with the Washington/Baltimore
3.26High Intensity Drug Trafficking Area's Overdose Detection Mapping Application Program
3.27(ODMAP) data that identifies where and when an overdose incident happens, fatality status,
3.28suspected drug type, naloxone administration, and first responder type. ODMAP may:
3.29 (1) allow secure access to the system by authorized users to report information about an
3.30overdose incident;
3.31 (2) allow secure access to the system by authorized users to view, in near real-time,
3.32information about overdose incidents reported;
3Article 1 Sec. 4.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 4.1 (3) produce a map in near real-time of the approximate locations of confirmed or
4.2suspected overdose incidents reported; and
4.3 (4) enable access to overdose incident information that assists in state and local decisions
4.4regarding the allocation of public health, public safety, and educational resources for the
4.5purposes of monitoring and reporting data related to suspected overdoses.
4.6 Sec. 5. Minnesota Statutes 2024, section 145.4718, is amended to read:
4.7 145.4718 PROGRAM EVALUATION.
4.8 (a) The director of child sex trafficking prevention established under section 145.4716
4.9must conduct, or contract for, comprehensive evaluation of the statewide program for safe
4.10harbor for sexually exploited youth. The first evaluation must be completed by June 30,
4.112015, and must be submitted director must submit an updated evaluation to the commissioner
4.12of health and to the chairs and ranking minority members of the senate and house of
4.13representatives committees with jurisdiction over health and public safety by September 1,
4.142015, and every two years thereafter of each odd-numbered year. The evaluation must
4.15consider whether the program is reaching intended victims and whether support services
4.16are available, accessible, and adequate for sexually exploited youth, as defined in section
4.17260C.007, subdivision 31.
4.18 (b) In conducting the evaluation, the director of child sex trafficking prevention must
4.19consider evaluation of outcomes, including whether the program increases identification of
4.20sexually exploited youth, coordination of investigations, access to services and housing
4.21available for sexually exploited youth, and improved effectiveness of services. The evaluation
4.22must also include examination of the ways in which penalties under section 609.3241 are
4.23assessed, collected, and distributed to ensure funding for investigation, prosecution, and
4.24victim services to combat sexual exploitation of youth.
4.25 Sec. 6. Minnesota Statutes 2024, section 145.901, subdivision 1, is amended to read:
4.26 Subdivision 1.Purpose.Within the limits of available funding, the commissioner of
4.27health may must conduct maternal death studies to assist the planning, implementation, and
4.28evaluation of medical, health, and welfare service systems and to reduce the numbers of
4.29preventable maternal deaths in Minnesota.
4.30 Sec. 7. Minnesota Statutes 2024, section 145.902, subdivision 1, is amended to read:
4.31 Subdivision 1.General.(a) For purposes of this section, a "safe place" means:
4Article 1 Sec. 7.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 5.1 (1) a hospital licensed under sections 144.50 to 144.56,;
5.2 (2) a fire station that is staffed continuously, 24 hours per day, by firefighters or
5.3emergency medical services personnel, except when all staff are called out in an emergency
5.4and when the dual alarm system dispatches the nearest first responder to receive the infant
5.5as in any similar emergency;
5.6 (3) a health care provider who provides urgent care medical services, or;
5.7 (4) a newborn safety device installed by a fire station that meets the requirements in
5.8clause (2) and is participating in the program or by a licensed hospital that is staffed
5.9continuously, 24 hours per day; or
5.10 (5) an ambulance service licensed under chapter 144E dispatched in response to a 911
5.11call from a mother or a person with the mother's permission to relinquish a newborn infant.
5.12 (b) A safe place shall receive a newborn left with an employee on the premises of the
5.13safe place during its hours of operation or in a newborn safety device, provided that:
5.14 (1) the newborn infant was born within seven days of being left at the safe place, as
5.15determined within a reasonable degree of medical certainty; and
5.16 (2) the newborn infant is left in an unharmed condition.; and
5.17 (3) the newborn safety device:
5.18 (i) is designed to permit a parent to anonymously place a newborn infant in the device
5.19with the intent to leave the newborn infant;
5.20 (ii) allows fire station personnel or hospital personnel to remove the newborn infant
5.21from the device and take custody of the newborn infant;
5.22 (iii) is installed with an adequate dual alarm system connected to the physical location
5.23where the device is physically installed, and the dual alarm system is tested at least one time
5.24per month and visually checked at least two times per day to ensure the alarm system is in
5.25working order; and
5.26 (iv) is physically located inside a participating fire station that is staffed continuously,
5.2724 hours per day, by firefighters or emergency medical services personnel or inside a licensed
5.28hospital that is staffed continuously, 24 hours per day. The safety device must be located
5.29in an area that is conspicuous and visible to fire station personnel or hospital personnel.
5.30 (c) The safe place must not inquire as to the identity of the mother or the person leaving
5.31the newborn or call the police, provided the newborn is unharmed when presented to the
5.32hospital. The safe place may ask the mother or the person leaving the newborn about the
5Article 1 Sec. 7.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 6.1medical history of the mother or newborn but the mother or the person leaving the newborn
6.2is not required to provide any information. The safe place may provide the mother or the
6.3person leaving the newborn with information about how to contact relevant social service
6.4agencies. This information must be available for the relinquishing parent in the newborn
6.5safety device.
6.6 (d) A safe place that is a health care provider who provides urgent care medical services
6.7shall dial 911, advise the dispatcher that the call is being made from a safe place for
6.8newborns, and ask the dispatcher to send an ambulance or take other appropriate action to
6.9transport the newborn to a hospital. An ambulance with whom a newborn is left or personnel
6.10at a fire station at which a newborn is left shall transport the newborn to a hospital for care.
6.11Hospitals must receive a newborn left with a safe place and make the report as required in
6.12subdivision 2.
6.13 Sec. 8. Minnesota Statutes 2024, section 145.902, subdivision 3, is amended to read:
6.14 Subd. 3.Immunity.(a) A safe place with responsibility for performing duties under
6.15this section, and any employee, doctor, ambulance personnel, or other medical professional
6.16working at the safe place, are immune from any criminal liability that otherwise might result
6.17from their actions, if they are acting in good faith in receiving a newborn, and are immune
6.18from any civil liability that otherwise might result from merely receiving a newborn.
6.19 (b) A safe place performing duties under this section, or an employee, doctor, ambulance
6.20personnel, or other medical professional working at the safe place who is a mandated reporter
6.21under chapter 260E, is immune from any criminal or civil liability that otherwise might
6.22result from the failure to make a report under that section if the person is acting in good
6.23faith in complying with this section.
6.24 (c) No person shall be prosecuted for any crime based solely on the act of leaving a
6.25newborn infant in compliance with this section.
6.26 Sec. 9. Minnesota Statutes 2024, section 147A.02, is amended to read:
6.27 147A.02 QUALIFICATIONS FOR LICENSURE.
6.28 (a) The board may grant a license as a physician assistant to an applicant who:
6.29 (1) submits an application on forms approved by the board;
6.30 (2) pays the appropriate fee as determined by the board;
6Article 1 Sec. 9.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 7.1 (3) has current certification from the National Commission on Certification of Physician
7.2Assistants, or its successor agency as approved by the board;
7.3 (4) certifies that the applicant is mentally and physically able to engage safely in practice
7.4as a physician assistant;
7.5 (5) has no licensure, certification, or registration as a physician assistant under current
7.6discipline, revocation, suspension, or probation for cause resulting from the applicant's
7.7practice as a physician assistant, unless the board considers the condition and agrees to
7.8licensure;
7.9 (6) submits any other information the board deems necessary to evaluate the applicant's
7.10qualifications; and
7.11 (7) has been approved by the board.
7.12 (b) All persons registered as physician assistants as of June 30, 1995, are eligible for
7.13continuing license renewal. All persons applying for licensure after that date shall be licensed
7.14according to this chapter.
7.15 (c) A physician assistant who qualifies for licensure must practice for at least 2,080
7.16hours, within the context of a collaborative agreement, within a hospital or integrated clinical
7.17setting where physician assistants and physicians work together to provide patient care. The
7.18physician assistant shall submit written evidence to the board with the application, or upon
7.19completion of the required collaborative practice experience. For purposes of this paragraph,
7.20a collaborative agreement is a mutually agreed upon plan for the overall working relationship
7.21and collaborative arrangement between a physician assistant, and one or more physicians
7.22licensed under chapter 147, or licensed in another state or United States territory that
7.23designates the scope of services that can be provided collaboration necessary to manage the
7.24care of patients. The physician assistant and one of the collaborative physicians must have
7.25experience in providing care to patients with the same or similar medical conditions. The
7.26collaborating physician is not required to be physically present so long as the collaborating
7.27physician and physician assistant are or can be easily in contact with each other by radio,
7.28telephone, or other telecommunication device.
7.29 Sec. 10. Minnesota Statutes 2024, section 148.56, subdivision 1, is amended to read:
7.30 Subdivision 1.Optometry defined.(a) Any person shall be deemed to be practicing
7.31optometry within the meaning of sections 148.52 to 148.62 who shall in any way:
7.32 (1) advertise as an optometrist;
7Article 1 Sec. 10.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 8.1 (2) employ any means, including the use of autorefractors or other automated testing
8.2devices, for the measurement of the powers of vision or the adaptation of lenses or prisms
8.3for the aid thereof;
8.4 (3) possess testing appliances for the purpose of the measurement of the powers of vision;
8.5 (4) diagnose any disease, optical deficiency or deformity, or visual or muscular anomaly
8.6of the visual system consisting of the human eye and its accessory or subordinate anatomical
8.7parts;
8.8 (5) prescribe lenses, including plano or cosmetic contact lenses, or prisms for the
8.9correction or the relief of same;
8.10 (6) employ or prescribe ocular exercises, orthoptics, or habilitative and rehabilitative
8.11therapeutic vision care; or
8.12 (7) prescribe or administer legend drugs to aid in the diagnosis, cure, mitigation,
8.13prevention, treatment, or management of disease, deficiency, deformity, or abnormality of
8.14the human eye and adnexa included in the curricula of accredited schools or colleges of
8.15optometry, and as limited by Minnesota statute and adopted rules by the Board of Optometry,
8.16or who holds oneself out as being able to do so.
8.17 (b) In the course of treatment, nothing in this section shall allow:
8.18 (1) legend drugs to be administered intravenously, intramuscularly, or by injection,
8.19except for treatment of anaphylaxis or by sub-Tenon, retrobulbar, or intravitreal injection;
8.20 (2) invasive surgery including, but not limited to, surgery using lasers;
8.21 (3) Schedule II and III oral legend drugs and oral steroids to be administered or
8.22prescribed; or
8.23 (4) oral antivirals to be prescribed or administered for more than ten days; or steroids
8.24to be administered or prescribed for more than 14 days without consultation with a physician.
8.25 (5) oral carbonic anhydrase inhibitors to be prescribed or administered for more than
8.26seven days.
8.27 ARTICLE 2
8.28 MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY
8.29 Section 1. Minnesota Statutes 2024, section 3.732, subdivision 1, is amended to read:
8.30 Subdivision 1.Definitions.As used in this section and section 3.736 the terms defined
8.31in this section have the meanings given them.
8Article 2 Section 1.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 9.1 (1) "State" includes each of the departments, boards, agencies, commissions, courts, and
9.2officers in the executive, legislative, and judicial branches of the state of Minnesota and
9.3includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
9.4Education, the Higher Health and Education Facilities Authority, the Health Technology
9.5Advisory Committee, the Armory Building Commission, the Zoological Board, the
9.6Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society,
9.7the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges
9.8and Universities, state hospitals, and state penal institutions. It does not include a city, town,
9.9county, school district, or other local governmental body corporate and politic.
9.10 (2) "Employee of the state" means all present or former officers, members, directors, or
9.11employees of the state, members of the Minnesota National Guard, members of a bomb
9.12disposal unit approved by the commissioner of public safety and employed by a municipality
9.13defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
9.14similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
9.15municipality but within the state, or persons acting on behalf of the state in an official
9.16capacity, temporarily or permanently, with or without compensation. It does not include
9.17either an independent contractor except, for purposes of this section and section 3.736 only,
9.18a guardian ad litem acting under court appointment, or members of the Minnesota National
9.19Guard while engaged in training or duty under United States Code, title 10, or title 32,
9.20section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
9.21sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
9.22of the state" includes a district public defender or assistant district public defender in the
9.23Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
9.24and any officer, agent, or employee of the state of Wisconsin performing work for the state
9.25of Minnesota pursuant to a joint state initiative.
9.26 (3) "Scope of office or employment" means that the employee was acting on behalf of
9.27the state in the performance of duties or tasks lawfully assigned by competent authority.
9.28 (4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.
9.29 Sec. 2. Minnesota Statutes 2024, section 10A.01, subdivision 35, is amended to read:
9.30 Subd. 35.Public official."Public official" means any:
9.31 (1) member of the legislature;
9.32 (2) individual employed by the legislature as secretary of the senate, legislative auditor,
9.33director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
9Article 2 Sec. 2.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 10.1of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
10.2Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
10.3Department;
10.4 (3) constitutional officer in the executive branch and the officer's chief administrative
10.5deputy;
10.6 (4) solicitor general or deputy, assistant, or special assistant attorney general;
10.7 (5) commissioner, deputy commissioner, or assistant commissioner of any state
10.8department or agency as listed in section 15.01 or 15.06, or the state chief information
10.9officer;
10.10 (6) member, chief administrative officer, or deputy chief administrative officer of a state
10.11board or commission that has either the power to adopt, amend, or repeal rules under chapter
10.1214, or the power to adjudicate contested cases or appeals under chapter 14;
10.13 (7) individual employed in the executive branch who is authorized to adopt, amend, or
10.14repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
10.15 (8) executive director of the State Board of Investment;
10.16 (9) deputy of any official listed in clauses (7) and (8);
10.17 (10) judge of the Workers' Compensation Court of Appeals;
10.18 (11) administrative law judge or compensation judge in the State Office of Administrative
10.19Hearings or unemployment law judge in the Department of Employment and Economic
10.20Development;
10.21 (12) member, regional administrator, division director, general counsel, or operations
10.22manager of the Metropolitan Council;
10.23 (13) member or chief administrator of a metropolitan agency;
10.24 (14) director of the Division of Alcohol and Gambling Enforcement in the Department
10.25of Public Safety;
10.26 (15) member or executive director of the Higher Health and Education Facilities
10.27Authority;
10.28 (16) member of the board of directors or president of Enterprise Minnesota, Inc.;
10.29 (17) member of the board of directors or executive director of the Minnesota State High
10.30School League;
10.31 (18) member of the Minnesota Ballpark Authority established in section 473.755;
10Article 2 Sec. 2.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 11.1 (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
11.2 (20) manager of a watershed district, or member of a watershed management organization
11.3as defined under section 103B.205, subdivision 13;
11.4 (21) supervisor of a soil and water conservation district;
11.5 (22) director of Explore Minnesota Tourism;
11.6 (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
11.797A.056;
11.8 (24) citizen member of the Clean Water Council established in section 114D.30;
11.9 (25) member or chief executive of the Minnesota Sports Facilities Authority established
11.10in section 473J.07;
11.11 (26) district court judge, appeals court judge, or supreme court justice;
11.12 (27) county commissioner;
11.13 (28) member of the Greater Minnesota Regional Parks and Trails Commission;
11.14 (29) member of the Destination Medical Center Corporation established in section
11.15469.41; or
11.16 (30) chancellor or member of the Board of Trustees of the Minnesota State Colleges
11.17and Universities.
11.18Sec. 3. Minnesota Statutes 2024, section 136A.25, is amended to read:
11.19 136A.25 CREATION.
11.20 A state agency known as the Minnesota Higher Health and Education Facilities Authority
11.21is hereby created.
11.22Sec. 4. Minnesota Statutes 2024, section 136A.26, is amended to read:
11.23 136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.
11.24 Subdivision 1.Membership.The Minnesota Higher Health and Education Facilities
11.25Authority shall consist of eight nine members appointed by the governor with the advice
11.26and consent of the senate, and a representative of the Office of Higher Education.
11.27 All members to be appointed by the governor shall be residents of the state. At least two
11.28members must reside outside the metropolitan area as defined in section 473.121, subdivision
11.292. At least one of the members shall be a person having a favorable reputation for skill,
11Article 2 Sec. 4.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 12.1knowledge, and experience in the field of state and municipal finance; and at least one of
12.2the members shall be a person having a favorable reputation for skill, knowledge, and
12.3experience in the building construction field; and at least one of the members shall be a
12.4trustee, director, officer, or employee of an institution of higher education; and at least one
12.5of the members shall be a trustee, director, officer, or employee of a health care organization.
12.6 Subd. 1a.Private College Council member.The president of the Minnesota Private
12.7College Council, or the president's designee, shall serve without compensation as an advisory,
12.8nonvoting member of the authority.
12.9 Subd. 1b.Nonprofit health care association member.The chief executive officer of
12.10a Minnesota nonprofit health care association whose members are primarily nonprofit health
12.11care organizations, or the chief executive officer's designee, shall serve without compensation
12.12as an advisory, nonvoting member of the authority. The identity of the Minnesota nonprofit
12.13health care association shall be determined and may be changed from time to time by the
12.14members of the authority in accordance with and as provided in the bylaws of the authority.
12.15 Subd. 2.Term; compensation; removal.The membership terms, compensation, removal
12.16of members, and filling of vacancies for authority members other than the representative
12.17of the office, and the president of the Private College Council, and the nonprofit health care
12.18association member shall be as provided in section 15.0575.
12.19Sec. 5. Minnesota Statutes 2024, section 136A.27, is amended to read:
12.20 136A.27 POLICY.
12.21 It is hereby declared that for the benefit of the people of the state, the increase of their
12.22commerce, welfare and prosperity and the improvement of their health and living conditions
12.23it is essential that health care organizations within the state be provided with appropriate
12.24additional means to establish, acquire, construct, improve, and expand health care facilities
12.25in furtherance of their purposes; that this and future generations of youth be given the fullest
12.26opportunity to learn and to develop their intellectual and mental capacities; that it is essential
12.27that institutions of higher education within the state be provided with appropriate additional
12.28means to assist such youth in achieving the required levels of learning and development of
12.29their intellectual and mental capacities; and that health care organizations and institutions
12.30of higher education be enabled to refinance outstanding indebtedness incurred to provide
12.31existing facilities used for such those purposes in order to preserve and enhance the utilization
12.32of facilities for purposes of health care and higher education, to extend or adjust maturities
12.33in relation to the resources available for their payment, and to save interest costs and thereby
12.34reduce health care costs or higher education tuition, fees, and charges; and. It is hereby
12Article 2 Sec. 5.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 13.1further declared that it is the purpose of sections 136A.25 to 136A.42 to provide a measure
13.2of assistance and an alternative method to enable health care organizations and institutions
13.3of higher education in the state to provide the facilities and structures which are sorely
13.4needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit
13.5and good, to the extent and manner provided herein.
13.6 Sec. 6. Minnesota Statutes 2024, section 136A.28, is amended to read:
13.7 136A.28 DEFINITIONS.
13.8 Subdivision 1.Scope.In sections 136A.25 to 136A.42, the following words and terms
13.9shall, unless the context otherwise requires, have the meanings ascribed to them.
13.10 Subd. 1a.Affiliate."Affiliate" means an entity that directly or indirectly controls, is
13.11controlled by, or is under common control with another entity. For the purposes of this
13.12subdivision, "control" means either the power to elect a majority of the members of the
13.13governing body of an entity or the power, whether by contract or otherwise, to direct the
13.14management and policies of the entity. Affiliate also means an entity whose business or
13.15substantially all of whose property is operated under a lease, management agreement, or
13.16operating agreement by another entity, or an entity who operates the business or substantially
13.17all of the property of another entity under a lease, management agreement, or operating
13.18agreement.
13.19 Subd. 2.Authority."Authority" means the Higher Health and Education Facilities
13.20Authority created by sections 136A.25 to 136A.42.
13.21 Subd. 3.Project."Project" means a structure or structures available for use as a dormitory
13.22or other student housing facility, a dining hall, student union, administration building,
13.23academic building, library, laboratory, research facility, classroom, athletic facility, health
13.24care facility, child care facility, and maintenance, storage, or utility facility and other
13.25structures or facilities related thereto or required or useful for the instruction of students or
13.26the conducting of research or the operation of an institution of higher education, whether
13.27proposed, under construction, or completed, including parking and other facilities or
13.28structures essential or convenient for the orderly conduct of such institution for higher
13.29education, and shall also include landscaping, site preparation, furniture, equipment and
13.30machinery, and other similar items necessary or convenient for the operation of a particular
13.31facility or structure in the manner for which its use is intended but shall not include such
13.32items as books, fuel, supplies, or other items the costs of which are customarily deemed to
13.33result in a current operating charge, and shall a health care facility or an education facility
13.34whether proposed, under construction, or completed and includes land or interests in land,
13Article 2 Sec. 6.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 14.1appurtenances, site preparation, landscaping, buildings, structures, systems, fixtures, furniture,
14.2machinery, equipment, and parking. Project also includes other structures, facilities,
14.3improvements, machinery, equipment, and means of transport of a capital nature that are
14.4necessary or convenient for the operation of the facility. Project does not include: (1) any
14.5facility used or to be used for sectarian instruction or as a place of religious worship nor;
14.6(2) any facility which is used or to be used primarily in connection with any part of the
14.7program of a school or department of divinity for any religious denomination; nor (3) any
14.8books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are
14.9customarily deemed to result in a current operating charge.
14.10 Subd. 4.Cost."Cost," as applied to a project or any portion thereof financed under the
14.11provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction,
14.12acquisition, alteration, enlargement, reconstruction and remodeling of a project including
14.13all lands, structures, real or personal property, rights, rights-of-way, franchises, easements
14.14and interests acquired or used for or in connection with a project, the cost of demolishing
14.15or removing any buildings or structures on land so acquired, including the cost of acquiring
14.16any lands to which such the buildings or structures may be moved, the cost of all machinery
14.17and equipment, financing charges, interest prior to, during and for a period after completion
14.18of such construction and acquisition, provisions for reserves for principal and interest and
14.19for extensions, enlargements, additions and improvements, the cost of architectural,
14.20engineering, financial and legal services, plans, specifications, studies, surveys, estimates
14.21of cost and of revenues, administrative expenses, expenses necessary or incident to
14.22determining the feasibility or practicability of constructing the project and such other
14.23expenses as may be necessary or incident to the construction and acquisition of the project,
14.24the financing of such construction and acquisition and the placing of the project in operation.
14.25 Subd. 5.Bonds."Bonds," or "revenue bonds" means revenue bonds of the authority
14.26issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding
14.27bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit
14.28of a participating institution for higher education or any other lawfully pledged security of
14.29a participating institution for higher education.
14.30 Subd. 5a.Education facility."Education facility" means a structure or structures available
14.31for use as a dormitory or other student housing facility, dining hall, student union,
14.32administration building, academic building, library, laboratory, research facility, classroom,
14.33athletic facility, student health care facility, or child care facility and includes other facilities
14.34or structures related to the essential or convenient orderly conduct of an institution of higher
14.35education.
14Article 2 Sec. 6.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 15.1 Subd. 5b.Health care facility.(a) "Health care facility" means a structure or structures
15.2available for use within this state as a hospital, clinic, psychiatric residential treatment
15.3facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
15.4facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
15.5facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
15.6medical office building, residence for nurses or interns, nursing home, boarding care home,
15.7assisted living facility, residential hospice, intermediate care facility for persons with
15.8developmental disabilities, supervised living facility, board and lodging establishment with
15.9special services, adult day care center, day services facility, prescribed pediatric extended
15.10care facility, community residential setting, adult foster home, or other facility related to
15.11medical or health care research or the delivery or administration of health care services and
15.12includes other structures or facilities related to the essential or convenient orderly conduct
15.13of a health care organization.
15.14 (b) Health care facility also means a facility in a state that is geographically contiguous
15.15to Minnesota operated by a health care organization that corresponds by purpose, function,
15.16or use with a facility listed in paragraph (a).
15.17 Subd. 5c.Health care organization.(a) "Health care organization" means a nonprofit
15.18organization located within the state and authorized by law to operate a nonprofit health
15.19care facility in the state. Health care organization also means a nonprofit affiliate of a health
15.20care organization as defined under this paragraph, provided the affiliate is located within
15.21the state or within a state that is geographically contiguous to Minnesota.
15.22 (b) Health care organization also means a nonprofit organization located within another
15.23state that is geographically contiguous to Minnesota and authorized by law to operate a
15.24nonprofit health care facility in that state, provided that the nonprofit organization located
15.25within the contiguous state is an affiliate of a health care organization located within
15.26Minnesota.
15.27 Subd. 6.Institution of higher education."Institution of higher education" means a
15.28nonprofit educational institution within the state authorized to provide a program of education
15.29beyond the high school level.
15.30 Subd. 7.Participating institution of higher education."Participating institution of
15.31higher education" means a health care organization or an institution of higher education
15.32that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and
15.33construction or acquisition of a project or undertakes the refunding or refinancing of
15.34obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42.
15Article 2 Sec. 6.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 16.1Community colleges and technical colleges may be considered participating institutions of
16.2higher education for the purpose of financing and constructing child care facilities and
16.3parking facilities.
16.4 Sec. 7. Minnesota Statutes 2024, section 136A.29, subdivision 1, is amended to read:
16.5 Subdivision 1.Purpose.The purpose of the authority shall be to assist health care
16.6organizations and institutions of higher education in the construction, financing, and
16.7refinancing of projects. The exercise by the authority of the powers conferred by sections
16.8136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public
16.9function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the
16.10powers and duties set forth in subdivisions 2 to 23.
16.11Sec. 8. Minnesota Statutes 2024, section 136A.29, subdivision 3, is amended to read:
16.12 Subd. 3.Employees; office space.The authority is authorized and empowered to appoint
16.13and employ employees as it may deem necessary to carry out its duties, determine the title
16.14of the employees so employed, and fix the salary of said its employees. Employees of the
16.15authority shall participate in retirement and other benefits in the same manner that employees
16.16in the unclassified service of the office managerial plan under section 43A.18, subdivision
16.173, participate. The authority may maintain an office space as it may designate.
16.18Sec. 9. Minnesota Statutes 2024, section 136A.29, subdivision 6, is amended to read:
16.19 Subd. 6.Projects; generally.(a) The authority is authorized and empowered to determine
16.20the location and character of any project to be financed under the provisions of sections
16.21136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge,
16.22alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same,; to enter into
16.23contracts for any or all of such these purposes,; to enter into contracts for the management
16.24and operation of a project,; and to designate a participating institution of higher education
16.25as its agent to determine the location and character of a project undertaken by such a
16.26participating institution of higher education under the provisions of sections 136A.25 to
16.27136A.42 and, as the agent of the authority, to construct, reconstruct, remodel, maintain,
16.28manage, enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate the
16.29same, and, as the agent of the authority, to enter into contracts for any or all of such these
16.30purposes, including contracts for the management and operation of such the project.
16.31 (b) Notwithstanding paragraph (a), a project involving a health care facility within the
16.32state financed under sections 136A.25 to 136A.42 must comply with all applicable
16Article 2 Sec. 9.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 17.1requirements in state law related to authorizing construction of or modifications to a health
17.2care facility, including the requirements of sections 144.5509, 144.551, 144A.071, and
17.3252.291.
17.4 (c) Contracts of the authority or of a participating institution of higher education to
17.5acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair
17.6projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other
17.7public contract or competitive bid law.
17.8 Sec. 10. Minnesota Statutes 2024, section 136A.29, subdivision 9, is amended to read:
17.9 Subd. 9.Revenue bonds; limit.(a) The authority is authorized and empowered to issue
17.10revenue bonds whose aggregate principal amount at any time shall not exceed $2,000,000,000
17.11$5,000,000,000 and to issue notes, bond anticipation notes, and revenue refunding bonds
17.12of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for
17.13acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving,
17.14furnishing, or equipping one or more projects or parts thereof.
17.15 (b) Of the $5,000,000,000 limit in paragraph (a), the aggregate principal amount used
17.16to fund education facilities may not exceed $2,250,000,000 at any time, and the aggregate
17.17principal amount used to fund health care facilities may not exceed $2,750,000,000 at any
17.18time.
17.19Sec. 11. Minnesota Statutes 2024, section 136A.29, subdivision 10, is amended to read:
17.20 Subd. 10.Revenue bonds; issuance, purpose, conditions.The authority is authorized
17.21and empowered to issue revenue bonds to acquire projects from or to make loans to
17.22participating institutions of higher education and thereby refinance outstanding indebtedness
17.23incurred by participating institutions of higher education to provide funds for the acquisition,
17.24construction or improvement of a facility before or after the enactment of sections 136A.25
17.25to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the
17.26authority finds that such the refinancing will enhance or preserve such the participating
17.27institutions and such the facilities or utilization thereof that is for health care or educational
17.28purposes or extend or adjust maturities to correspond to the resources available for their
17.29payment, or reduce charges or fees imposed on patients or occupants or the tuition, charges,
17.30or fees imposed on students for the use or occupancy of the facilities of such the participating
17.31institutions of higher education or costs met by federal or state public funds, or enhance or
17.32preserve health care or educational programs and research or the acquisition or improvement
17.33of other facilities eligible to be a project or part thereof by the participating institution of
17Article 2 Sec. 11.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 18.1higher education. The amount of revenue bonds to be issued to refinance outstanding
18.2indebtedness of a participating institution of higher education shall not exceed the lesser of
18.3(a) the fair value of the project to be acquired by the authority from the institution or
18.4mortgaged to the authority by the institution or (b) the amount of the outstanding indebtedness
18.5including any premium thereon and any interest accrued or to accrue to the date of redemption
18.6and any legal, fiscal and related costs in connection with such the refinancing and reasonable
18.7reserves, as determined by the authority. The provisions of this subdivision do not prohibit
18.8the authority from issuing revenue bonds within and charged against the limitations provided
18.9in subdivision 9 to provide funds for improvements, alteration, renovation, or extension of
18.10the project refinanced.
18.11Sec. 12. Minnesota Statutes 2024, section 136A.29, subdivision 14, is amended to read:
18.12 Subd. 14.Rules for use of projects.The authority is authorized and empowered to
18.13establish rules for the use of a project or any portion thereof and to designate a participating
18.14institution of higher education as its agent to establish rules for the use of a project undertaken
18.15for such a participating institution of higher education.
18.16Sec. 13. Minnesota Statutes 2024, section 136A.29, subdivision 19, is amended to read:
18.17 Subd. 19.Surety.Before the issuance of any revenue bonds under the provisions of
18.18sections 136A.25 to 136A.42, any member or officer of the authority authorized by resolution
18.19of the authority to handle funds or sign checks of the authority shall be covered under a
18.20surety or fidelity bond in an amount to be determined by the authority. Each such bond shall
18.21be conditioned upon the faithful performance of the duties of the office of the member or
18.22officer, and shall be executed by a surety company authorized to transact business in the
18.23state of Minnesota as surety. The cost of each such bond shall be paid by the authority.
18.24Sec. 14. Minnesota Statutes 2024, section 136A.29, subdivision 20, is amended to read:
18.25 Subd. 20.Sale, lease, and disposal of property.The authority is authorized and
18.26empowered to sell, lease, release, or otherwise dispose of real and personal property or
18.27interests therein, or a combination thereof, acquired by the authority under authority of
18.28sections 136A.25 to 136A.42 and no longer needed for the purposes of such this chapter or
18.29of the authority, and grant such easements and other rights in, over, under, or across a project
18.30as will not interfere with its use of such the property. Such The sale, lease, release,
18.31disposition, or grant may be made without competitive bidding and in such the manner and
18.32for such consideration as the authority in its judgment deems appropriate.
18Article 2 Sec. 14.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 19.1 Sec. 15. Minnesota Statutes 2024, section 136A.29, subdivision 21, is amended to read:
19.2 Subd. 21.Loans.The authority is authorized and empowered to make loans to any
19.3participating institution of higher education for the cost of a project in accordance with an
19.4agreement between the authority and the participating institution of higher education;
19.5provided that no such loan shall exceed the total cost of the project as determined by the
19.6participating institution of higher education and approved by the authority.
19.7 Sec. 16. Minnesota Statutes 2024, section 136A.29, subdivision 22, is amended to read:
19.8 Subd. 22.Costs, expenses, and other charges.The authority is authorized and
19.9empowered to charge to and apportion among participating institutions of higher education
19.10its administrative costs and expenses incurred in the exercise of the powers and duties
19.11conferred by sections 136A.25 to 136A.42 in the manner as the authority in its judgment
19.12deems appropriate.
19.13Sec. 17. Minnesota Statutes 2024, section 136A.29, is amended by adding a subdivision
19.14to read:
19.15 Subd. 24.Determination of affiliate status.The authority is authorized and empowered
19.16to determine whether an entity is an affiliate. A determination by the authority of affiliate
19.17status shall be deemed conclusive for the purposes of sections 136A.25 to 136A.42.
19.18Sec. 18. Minnesota Statutes 2024, section 136A.32, subdivision 1, is amended to read:
19.19 Subdivision 1.Bonds; generally.(a) The authority may from time to time issue revenue
19.20bonds for purposes of sections 136A.25 to 136A.42, and all such revenue bonds, notes,
19.21bond anticipation notes or other obligations of the authority issued pursuant to sections
19.22136A.25 to 136A.42 shall be and are hereby declared to be negotiable for all purposes
19.23notwithstanding their payment from a limited source and without regard to any other law
19.24or laws. In anticipation of the sale of such revenue bonds, the authority may issue negotiable
19.25bond anticipation notes and may renew the same from time to time, but the maximum
19.26maturity of any such note, including renewals thereof, shall not exceed five years from the
19.27date of issue of the original note. Such Notes shall be paid from any revenues of the authority
19.28available therefor and not otherwise pledged, or from the proceeds of sale of the revenue
19.29bonds of the authority in anticipation of which they were issued. The notes shall be issued
19.30in the same manner as the revenue bonds. Such notes and the resolution or resolutions
19.31authorizing the same may contain any provisions, conditions or limitations which a bond
19.32resolution or the authority may contain.
19Article 2 Sec. 18.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 20.1 (b) Before issuing revenue bonds, notes, or other obligations under paragraph (a) on
20.2behalf of a health care organization to finance health care facilities, the authority must obtain
20.3consent by resolution from each city or town in which the project is located, except that
20.4consent need not be obtained in the case of a city or town with a population of less than
20.5100,000. The consent by resolution requirement does not apply to financing under paragraph
20.6(a) on behalf of a participating institution which is primarily an institution of higher
20.7education.
20.8 Sec. 19. Minnesota Statutes 2024, section 136A.32, subdivision 4, is amended to read:
20.9 Subd. 4.Provisions of resolution authorizing bonds.Any resolution or resolutions
20.10authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which
20.11shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:
20.12 (1) pledging all or any part of the revenues of a project or projects, any revenue producing
20.13contract or contracts made by the authority with any individual partnership, corporation or
20.14association or other body one or more partnerships, corporations or associations, or other
20.15bodies, public or private, to secure the payment of the revenue bonds or of any particular
20.16issue of revenue bonds, subject to such agreements with bondholders as may then exist;
20.17 (2) the rentals, fees and other charges to be charged, and the amounts to be raised in
20.18each year thereby, and the use and disposition of the revenues;
20.19 (3) the setting aside of reserves or sinking funds, and the regulation and disposition
20.20thereof of them;
20.21 (4) limitations on the right of the authority or its agent to restrict and regulate the use of
20.22the project;
20.23 (5) limitations on the purpose to which the proceeds of sale of any issue of revenue
20.24bonds then or thereafter to be issued may be applied and pledging such the proceeds to
20.25secure the payment of the revenue bonds or any issue of the revenue bonds;
20.26 (6) limitations on the issuance of additional bonds, the terms upon which additional
20.27bonds may be issued and secured and the refunding of outstanding bonds;
20.28 (7) the procedure, if any, by which the terms of any contract with bondholders may be
20.29amended or abrogated, the amount of bonds the holders of which must consent thereto to,
20.30and the manner in which such consent may be given;
20.31 (8) limitations on the amount of moneys derived from the project to be expended for
20.32operating, administrative or other expenses of the authority;
20Article 2 Sec. 19.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 21.1 (9) defining the acts or omissions to act which shall constitute a default in the duties of
21.2the authority to holders of its obligations and providing the rights and remedies of such the
21.3holders in the event of a default; or
21.4 (10) the mortgaging of a project and the site thereof for the purpose of securing the
21.5bondholders.
21.6 Sec. 20. Minnesota Statutes 2024, section 136A.32, is amended by adding a subdivision
21.7to read:
21.8 Subd. 4a.Health care certification.Health care organizations must provide the authority
21.9with a signed certificate from the health care organization stating that so long as authority
21.10financing for the health care organization remains outstanding, none of the proceeds of the
21.11bonds to the health care organization may be directly or indirectly used to benefit a private
21.12party or private equity-funded entity.
21.13Sec. 21. Minnesota Statutes 2024, section 136A.33, is amended to read:
21.14 136A.33 TRUST AGREEMENT.
21.15 In the discretion of the authority any revenue bonds issued under the provisions of
21.16sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the
21.17authority and a corporate trustee or trustees, which may be any trust company or bank having
21.18the powers of a trust company within the state. Such The trust agreement or the resolution
21.19providing for the issuance of such revenue bonds may pledge or assign the revenues to be
21.20received or proceeds of any contract or contracts pledged and may convey or mortgage the
21.21project or any portion thereof of it. Such The trust agreement or resolution providing for
21.22the issuance of such revenue bonds may contain such provisions for protecting and enforcing
21.23the rights and remedies of the bondholders as may be reasonable and proper and not in
21.24violation of laws, including particularly such particular provisions as have hereinabove that
21.25have been specifically authorized to be included in any resolution or resolutions of the
21.26authority authorizing revenue bonds thereof. Any bank or trust company incorporated under
21.27the laws of the state which that may act as depository of the proceeds of bonds or of revenues
21.28or other moneys may furnish such indemnifying bonds or pledges such pledge securities as
21.29may be required by the authority. Any such trust agreement may set forth the rights and
21.30remedies of the bondholders and of the trustee or trustees and may restrict the individual
21.31right of action by bondholders. In addition to the foregoing, any such trust agreement or
21.32resolution may contain such other provisions as the authority may deem reasonable and
21.33proper for the security of the bondholders. All expenses incurred in carrying out the
21Article 2 Sec. 21.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 22.1provisions of such the trust agreement or resolution may be treated as a part of the cost of
22.2the operation of a project.
22.3 Sec. 22. Minnesota Statutes 2024, section 136A.34, subdivision 3, is amended to read:
22.4 Subd. 3.Investment.Any such escrowed proceeds, pending such use, may be invested
22.5and reinvested in direct obligations of the United States of America, or in certificates of
22.6deposit or time deposits secured by direct obligations of the United States of America, or
22.7in shares or units in any money market mutual fund whose investment portfolio consists
22.8solely of direct obligations of the United States of America, maturing at such a time or times
22.9as shall be appropriate to assure the prompt payment, as to principal, interest and redemption
22.10premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income
22.11and profits, if any, earned or realized on any such investment may also be applied to the
22.12payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow
22.13have been fully satisfied and carried out, any balance of such the proceeds and interest,
22.14income and profits, if any, earned or realized on the investments thereof may be returned
22.15to the authority for use by it in any lawful manner.
22.16Sec. 23. Minnesota Statutes 2024, section 136A.34, subdivision 4, is amended to read:
22.17 Subd. 4.Additional purpose; improvements.The portion of the proceeds of any such
22.18revenue bonds issued for the additional purpose of paying all or any part of the cost of
22.19constructing and acquiring additions, improvements, extensions or enlargements of a project
22.20may be invested or deposited in time deposits as provided in section 136A.32, subdivision
22.217.
22.22Sec. 24. Minnesota Statutes 2024, section 136A.36, is amended to read:
22.23 136A.36 REVENUES.
22.24 The authority may fix, revise, charge and collect rates, rents, fees and charges for the
22.25use of and for the services furnished or to be furnished by each project and to may contract
22.26with any person, partnership, association or corporation, or other body, public or private,
22.27in respect thereof. Such The rates, rents, fees, and charges may vary between projects
22.28involving an education facility and projects involving a health care facility and shall be
22.29fixed and adjusted in respect of the aggregate of rates, rents, fees, and charges from such
22.30the project so as to provide funds sufficient with other revenues, if any:
22Article 2 Sec. 24.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 23.1 (1) to pay the cost of maintaining, repairing and operating the project and each and every
23.2portion thereof of it, to the extent that the payment of such the cost has not otherwise been
23.3adequately provided for;
23.4 (2) to pay the principal of and the interest on outstanding revenue bonds of the authority
23.5issued in respect of such project as the same shall become due and payable; and
23.6 (3) to create and maintain reserves required or provided for in any resolution authorizing,
23.7or trust agreement securing, such revenue bonds of the authority. Such The rates, rents, fees
23.8and charges shall not be subject to supervision or regulation by any department, commission,
23.9board, body, bureau or agency of this state other than the authority. A sufficient amount of
23.10the revenues derived in respect of a project, except such part of such the revenues as may
23.11be necessary to pay the cost of maintenance, repair and operation and to provide reserves
23.12and for renewals, replacements, extensions, enlargements and improvements as may be
23.13provided for in the resolution authorizing the issuance of any revenue bonds of the authority
23.14or in the trust agreement securing the same, shall be set aside at such regular intervals as
23.15may be provided in such the resolution or trust agreement in a sinking or other similar fund
23.16which that is hereby pledged to, and charged with, the payment of the principal of and the
23.17interest on such revenue bonds as the same shall become due, and the redemption price or
23.18the purchase price of bonds retired by call or purchase as therein provided. Such The pledge
23.19shall be valid and binding from the time when the pledge is made; the rates, rents, fees and
23.20charges and other revenues or other moneys so pledged and thereafter received by the
23.21authority shall immediately be subject to the lien of such the pledge without physical delivery
23.22thereof or further act, and the lien of any such pledge shall be valid and binding as against
23.23all parties having claims of any kind against the authority, irrespective of whether such the
23.24parties have notice thereof of it. Neither the resolution nor any trust agreement by which a
23.25pledge is created need be filed or recorded except in the records of the authority. The use
23.26and disposition of moneys to the credit of such a sinking or other similar fund shall be
23.27subject to the provisions of the resolution authorizing the issuance of such bonds or of such
23.28a trust agreement. Except as may otherwise be provided in such the resolution or such trust
23.29agreement, such the sinking or other similar fund shall be a fund for all such revenue bonds
23.30issued to finance a project or projects at one or more participating institutions of higher
23.31education without distinction or priority of one over another; provided the authority in any
23.32such resolution or trust agreement may provide that such the sinking or other similar fund
23.33shall be the fund for a particular project at an a participating institution of higher education
23.34and for the revenue bonds issued to finance a particular project and may, additionally, permit
23.35and provide for the issuance of revenue bonds having a subordinate lien in respect of the
23Article 2 Sec. 24.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 24.1security herein authorized to other revenue bonds of the authority and, in such case, the
24.2authority may create separate or other similar funds in respect of such the subordinate lien
24.3bonds.
24.4 Sec. 25. Minnesota Statutes 2024, section 136A.38, is amended to read:
24.5 136A.38 BONDS ELIGIBLE FOR INVESTMENT.
24.6 Bonds issued by the authority under the provisions of sections 136A.25 to 136A.42, are
24.7hereby made securities in which all public officers and public bodies of the state and its
24.8political subdivisions, all insurance companies, trust companies, banking associations,
24.9investment companies, executors, administrators, trustees and other fiduciaries may properly
24.10and legally invest funds, including capital in their control or belonging to them; it being the
24.11purpose of this section to authorize the investment in such bonds of all sinking, insurance,
24.12retirement, compensation, pension and trust funds, whether owned or controlled by private
24.13or public persons or officers; provided, however, that nothing contained in this section may
24.14be construed as relieving any person, firm, or corporation from any duty of exercising due
24.15care in selecting securities for purchase or investment; and provide further, that in no event
24.16shall assets of pension funds of public employees of the state of Minnesota or any of its
24.17agencies, boards or subdivisions, whether publicly or privately administered, be invested
24.18in bonds issued under the provisions of sections 136A.25 to 136A.42. Such bonds are hereby
24.19constituted "authorized securities" within the meaning and for the purposes of Minnesota
24.20Statutes 1969, section 50.14. Such The bonds are hereby made securities which that may
24.21properly and legally be deposited with and received by any state or municipal officer or any
24.22agency or political subdivision of the state for any purpose for which the deposit of bonds
24.23or obligations of the state now or may hereafter be authorized by law.
24.24Sec. 26. Minnesota Statutes 2024, section 136A.41, is amended to read:
24.25 136A.41 CONFLICT OF INTEREST.
24.26 Notwithstanding any other law to the contrary it shall not be or constitute a conflict of
24.27interest for a trustee, director, officer or employee of any participating institution of higher
24.28education, financial institution, investment banking firm, brokerage firm, commercial bank
24.29or trust company, architecture firm, insurance company, construction company, or any other
24.30firm, person or corporation to serve as a member of the authority, provided such the trustee,
24.31director, officer or employee shall abstain from deliberation, action and vote by the authority
24.32in each instance where the business affiliation of any such trustee, director, officer or
24.33employee is involved.
24Article 2 Sec. 26.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT 25.1 Sec. 27. Minnesota Statutes 2024, section 136A.42, is amended to read:
25.2 136A.42 ANNUAL REPORT.
25.3 The authority shall keep an accurate account of all of its activities and all of its receipts
25.4and expenditures and shall annually report to the office. Each year, the authority shall submit
25.5to the Minnesota Historical Society and the Legislative Reference Library a report of the
25.6authority's activities in the previous year, including all financial activities.
25.7 Sec. 28. Minnesota Statutes 2024, section 136F.67, subdivision 1, is amended to read:
25.8 Subdivision 1.Authorization.A technical college or a community college must not
25.9seek financing for child care facilities or parking facilities through the Higher Health and
25.10Education Facilities Authority, as provided in section 136A.28, subdivision 7, without the
25.11explicit authorization of the board.
25.12Sec. 29. Minnesota Statutes 2024, section 354B.20, subdivision 7, is amended to read:
25.13 Subd. 7.Employing unit."Employing unit," if the agency employs any persons covered
25.14by the individual retirement account plan under section 354B.211, means:
25.15 (1) the board;
25.16 (2) the Minnesota Office of Higher Education; and
25.17 (3) the Higher Health and Education Facilities Authority.
25.18Sec. 30. REVISOR INSTRUCTION.
25.19 The revisor of statutes shall renumber the law establishing and governing the Minnesota
25.20Higher Education Facilities Authority, renamed the Minnesota Health and Education
25.21Facilities Authority in this act, as Minnesota Statutes, chapter 15D, coded in Minnesota
25.22Statutes, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor of
25.23statutes shall also duplicate any required definitions from Minnesota Statutes, chapter 136A;
25.24revise any statutory cross-references consistent with the recoding; and report the history in
25.25Minnesota Statutes, chapter 15D. The revisor of statutes shall change "Minnesota Higher
25.26Education Facilities Authority" to "Minnesota Health and Higher Education Facilities
25.27Authority" where it appears in Minnesota Statutes.
25.28Sec. 31. REPEALER.
25.29 Minnesota Statutes 2024, section 136A.29, subdivision 4, is repealed.
25Article 2 Sec. 31.
REVISOR SGS H2464-1HF2464 FIRST ENGROSSMENT Page.Ln 1.14HEALTH POLICY.................................................................................ARTICLE 1
Page.Ln 8.27
MINNESOTA HEALTH AND EDUCATION FACILITIES
AUTHORITY.........................................................................................ARTICLE 2
1
APPENDIX
Article locations for H2464-1 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: H2464-1