HF 622

3rd Engrossment - 89th Legislature (2015 - 2016) Posted on 09/01/2016 10:17am

A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and other improvements of a capital nature with certain
conditions; modifying previous appropriations; establishing new programs and
modifying existing programs; authorizing the sale and issuance of state bonds;
appropriating money; amending Minnesota Statutes 2014, sections 13.6905, by
adding a subdivision; 13.7411, by adding a subdivision; 85.34, subdivision 1;
115E.042; 116J.431, subdivisions 1, 6; 160.18, by adding a subdivision; 174.52,
subdivision 2; 219.015; 299A.55; 446A.072; 446A.073, as amended; 446A.081,
subdivision 9; 446A.12, subdivision 1; 462A.37, by adding a subdivision;
Minnesota Statutes 2015 Supplement, sections 16A.967; 162.145, subdivision
3; 462A.37, subdivision 5; Laws 2002, chapter 393, section 22, subdivision
6, as amended; Laws 2012, chapter 293, section 7, subdivision 3; Laws 2014,
chapter 294, article 1, sections 7, subdivision 15; 17, subdivisions 6, 12; Laws
2015, First Special Session chapter 5, article 1, sections 10, subdivision 3; 19;
proposing coding for new law in Minnesota Statutes, chapter 219; repealing
Minnesota Statutes 2014, section 123A.446.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin CAPITAL IMPROVEMENT APPROPRIATIONS. new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the
bond proceeds fund, or another named fund, to the state agencies or officials indicated,
to be spent for public purposes. Appropriations of bond proceeds must be spent as
authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
and better public land and buildings and other public improvements of a capital nature, or
as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j),
or article XIV. Unless otherwise specified, money appropriated in this act for a capital
program or project may be used to pay state agency staff costs that are attributed directly
to the capital program or project in accordance with accounting policies adopted by the
commissioner of management and budget. Unless otherwise specified, the appropriations
in this act are available until the project is completed or abandoned subject to Minnesota
Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in
this act for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
should not be used for projects that can be financed within a reasonable time frame under
Minnesota Statutes, section 16B.322 or 16C.144. Unless otherwise specified, general fund
appropriations in this act are onetime and are in fiscal year 2017.
new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 81,567,000 new text end

new text begin To the Board of Regents of the University
of Minnesota for the purposes specified in
this section.
new text end

new text begin Subd. 2. new text end new text begin Higher Education Asset Preservation and Replacement (HEAPR) new text end

new text begin 50,000,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

new text begin Subd. 3. new text end new text begin Chemical Sciences and Advanced Materials Science Building new text end

new text begin 27,167,000 new text end

new text begin To design, construct, furnish, and equip
a new laboratory building on the Duluth
campus, including classrooms and research
and undergraduate instructional laboratories.
new text end

new text begin Subd. 4. new text end new text begin Twin Cities - Plant Growth Research Facility new text end

new text begin 4,400,000 new text end

new text begin To demolish the existing biological sciences
greenhouse and to predesign, design,
construct, furnish, and equip a greenhouse
to support learning and research on the St.
Paul campus.
new text end

new text begin Subd. 5. new text end new text begin University Share new text end

new text begin Except for the appropriation for HEAPR, the
appropriations in this section are intended to
cover approximately two-thirds of the cost of
each project. The remaining costs must be
paid from university sources.
new text end

new text begin Subd. 6. new text end new text begin Unspent Appropriations new text end

new text begin Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the Board of Regents must use
any money remaining in the appropriation
for that project for HEAPR under Minnesota
Statutes, section 135A.046. The Board
of Regents must report by February 1 of
each even-numbered year to the chairs of
the house of representatives and senate
committees with jurisdiction over capital
investment and higher education finance, and
to the chairs of the house of representatives
Ways and Means Committee and the senate
Finance Committee, on how the remaining
money has been allocated or spent.
new text end

Sec. 3. new text begin MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 107,487,000 new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Higher Education Asset Preservation and Replacement (HEAPR) new text end

new text begin 35,000,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

new text begin Subd. 3. new text end new text begin Hibbing Community College new text end

new text begin 9,958,000 new text end

new text begin To demolish Building G and connecting
links or portions thereof, and to construct,
renovate, furnish, and equip buildings, links,
and entry spaces on the campus.
new text end

new text begin Subd. 4. new text end new text begin Minnesota State Community and Technical College new text end

new text begin (a) Fergus Falls campus new text end

new text begin 978,000 new text end

new text begin To design, renovate, furnish, and equip
a new Center for Student and Workforce
Success (CSWS) that integrates the Regional
Workforce Center. The board must enter into
a lease agreement with the commissioner of
employment and economic development,
or partners of the commissioner, for use of
the workforce center subject to Minnesota
Statutes, section 16A.695. The board must
use nonstate money for the remainder of the
cost of the renovation.
new text end

new text begin (b) Wadena campus new text end

new text begin 820,000 new text end

new text begin To design, renovate, furnish, and equip
the relocation of the current library to
underutilized space and converting the
vacated space into a centralized student
services center.
new text end

new text begin Subd. 5. new text end new text begin Northland Community and Technical College, East Grand Forks new text end

new text begin 826,000 new text end

new text begin To design, renovate, furnish, and equip
science and radiological lab space on the
East Grand Forks campus.
new text end

new text begin Subd. 6. new text end new text begin Riverland Community College, Albert Lea new text end

new text begin 7,427,000 new text end

new text begin To design, construct, furnish, and equip the
renovation and expansion of the Trade and
Industrial Education Center on the Albert Lea
campus of Riverland Community College.
new text end

new text begin Subd. 7. new text end new text begin South Central College, North Mankato new text end

new text begin 8,600,000 new text end

new text begin To design, renovate, renew, furnish, and
equip laboratory, classroom and office spaces
on the North Mankato campus.
new text end

new text begin Subd. 8. new text end new text begin St. Cloud State University new text end

new text begin 18,572,000 new text end

new text begin To construct, renovate, furnish, and
equip Eastman Hall for the relocation of
consolidated student health services and
academic programs.
new text end

new text begin Subd. 9. new text end new text begin Winona State University, Education Village, Phase 2 new text end

new text begin 25,306,000 new text end

new text begin To complete design, construct, renovate,
furnish, and equip Phase 2 of the Education
Village project, including the renovation
of Cathedral and Wabasha Halls and
Wabasha Rec, and remove obsolete portions
of Wabasha Rec and the Annex building
between Cathedral School and Wabasha Rec.
new text end

new text begin Subd. 10. new text end new text begin Debt Service new text end

new text begin (a) Except as provided in paragraph (b), the
Board of Trustees shall pay the debt service
on one-third of the principal amount of state
bonds sold to finance projects authorized
by this section. After each sale of general
obligation bonds, the commissioner of
management and budget shall notify the
board of the amounts assessed for each year
for the life of the bonds.
new text end

new text begin (b) The board need not pay debt service
on bonds sold to finance HEAPR. Where a
nonstate match is required, the debt service is
due on a principal amount equal to one-third
of the total project cost, less the match
committed before the bonds are sold.
new text end

new text begin (c) The commissioner of management and
budget shall reduce the board's assessment
each year by one-third of the net income
from investment of general obligation bond
proceeds in proportion to the amount of
principal and interest otherwise required to
be paid by the board. The board shall pay its
resulting net assessment to the commissioner
of management and budget by December
1 each year. If the board fails to make
a payment when due, the commissioner
of management and budget shall reduce
allotments for appropriations from the
general fund otherwise available to the board
and apply the amount of the reduction to
cover the missed debt service payment. The
commissioner of management and budget
shall credit the payments received from the
board to the bond debt service account in
the state bond fund each December 1 before
money is transferred from the general fund
under Minnesota Statutes, section 16A.641,
subdivision 10.
new text end

new text begin Subd. 11. new text end new text begin Unspent Appropriations new text end

new text begin (a) Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the board must use any money
remaining in the appropriation for that
project for HEAPR under Minnesota
Statutes, section 135A.046. The Board
of Trustees must report by February 1 of
each even-numbered year to the chairs of
the house of representatives and senate
committees with jurisdiction over capital
investment and higher education finance, and
to the chairs of the house of representatives
Ways and Means Committee and the senate
Finance Committee, on how the remaining
money has been allocated or spent.
new text end

new text begin (b) The unspent portion of an appropriation
for a project in this section that is complete is
available for HEAPR under this subdivision,
at the same campus as the project for which
the original appropriation was made and the
debt service requirement under subdivision
10 is reduced accordingly. Minnesota
Statutes, section 16A.642, applies from the
date of the original appropriation to the
unspent amount transferred.
new text end

Sec. 4. new text begin EDUCATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 18,070,000 new text end

new text begin To the commissioner of education for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Library Construction Grants new text end

new text begin 2,000,000 new text end

new text begin For library construction grants under
Minnesota Statutes, section 134.45.
new text end

new text begin Subd. 3. new text end new text begin Grand Rapids - Myles Reif Center new text end

new text begin 500,000 new text end

new text begin From the general fund for a grant to
Independent School District No. 318, Grand
Rapids, to cover cost overruns for the Myles
Reif Center for the Performing Arts project
in Grand Rapids. This appropriation is added
to and is for the same purposes as the project
in Laws 2014, chapter 294, article 1, section
21, subdivision 8. This appropriation does
not require a nonstate contribution.
new text end

new text begin Subd. 4. new text end new text begin Olmsted County - Dyslexia Institute of Minnesota new text end

new text begin 1,500,000 new text end

new text begin For a grant to Olmsted County to acquire
land for, and to predesign, design, construct,
furnish, and equip a facility in Olmsted
County to support the local, regional, and
national literacy work of the Dyslexia
Institute of Minnesota, subject to Minnesota
Statutes, section 16A.695. This appropriation
is not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.
new text end

new text begin Subd. 5. new text end new text begin Red Lake - Independent School District No. 38 Facility Projects new text end

new text begin 14,070,000 new text end

new text begin (a) This appropriation is from the maximum
effort school loan fund for a capital loan
to Independent School District No. 38,
Red Lake, as provided in Minnesota
Statutes, sections 126C.60 to 126C.72.
This appropriation is to complete design
and construction of a connection structure
between the Red Lake Early Learning
Childhood Center and Red Lake Elementary
School; renovations to various classrooms,
labs, and support rooms; updating of
mechanical systems; and expansion of the
cafeteria. Before any capital loan contract is
approved under this subdivision, the district
must provide documentation acceptable to
the commissioner of education on how the
capital loan will be used.
new text end

new text begin (b) The commissioner of administration
may provide project management services
to assist the Department of Education with
oversight of the project. No money for
construction may be distributed by the
commissioner of education to the recipient
school district until bids have been received
on 100 percent of the construction documents
and satisfactory documentation has been
submitted to the commissioner of education
indicating the project can be fully completed
with money available for the project.
new text end

new text begin (c) Notwithstanding the timelines in
Minnesota Statutes, section 126C.69,
subdivision 11, Independent School District
No. 38, Red Lake, must submit the question
authorizing the borrowing of money for the
facilities to voters of the district after the first
general election after the effective date of
this section.
new text end

Sec. 5. new text begin MINNESOTA STATE ACADEMIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 2,050,000 new text end

new text begin To the commissioner of administration for
the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 2,000,000 new text end

new text begin For capital asset preservation improvements
and betterments on both campuses of the
Minnesota State Academies, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

new text begin Subd. 3. new text end new text begin Minnesota State Academies Security Corridor new text end

new text begin 50,000 new text end

new text begin For predesign for a safety corridor on the
Minnesota State Academy for the Deaf
campus.
new text end

Sec. 6. new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 68,211,000 new text end

new text begin (a) To the commissioner of natural resources
for the purposes specified in this section.
new text end

new text begin (b) The appropriations in this section are
subject to the requirements of the natural
resources capital improvement program
under Minnesota Statutes, section 86A.12,
unless this section or the statutes referred
to in this section provide more specific
standards, criteria, or priorities for projects
than Minnesota Statutes, section 86A.12.
new text end

new text begin Subd. 2. new text end new text begin Natural Resources Asset Preservation new text end

new text begin 25,866,000 new text end

new text begin For the renovation of state-owned facilities
and recreational assets operated by the
commissioner of natural resources to
be spent in accordance with Minnesota
Statutes, section 84.946. Notwithstanding
Minnesota Statutes, section 84.946: (1) the
commissioner may use this appropriation
to replace buildings if, considering the
embedded energy in the building, that is the
most energy-efficient and carbon-reducing
method of renovation; and (2) this
appropriation may be used for projects to
remove life safety hazards such as building
code violations or structural defects.
new text end

new text begin Subd. 3. new text end new text begin Flood Hazard Mitigation new text end

new text begin 11,555,000 new text end

new text begin (a) For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161.
new text end

new text begin (b) Levee projects, to the extent practical,
shall meet the state standard of three feet
above the 100-year flood elevation.
new text end

new text begin (c) Project priorities shall be determined by
the commissioner as appropriate and based
on need.
new text end

new text begin (d) This appropriation includes funding for
the Cedar River Watershed District, and
$750,000 for the city of Browns Valley
project and $1,800,000 for the city of
Ortonville project.
new text end

new text begin (e) For any project listed in this subdivision
that the commissioner determines is not
ready to proceed or does not expend all the
money allocated to it, the commissioner may
allocate that project's money to a project on
the commissioner's priority list.
new text end

new text begin (f) To the extent that the cost of a project
exceeds two percent of the median household
income in a municipality or township
multiplied by the number of households in the
municipality or township, this appropriation
is also for the local share of the project.
new text end

new text begin Subd. 4. new text end new text begin Dam Renovation, Repair, Removal new text end

new text begin 9,000,000 new text end

new text begin To renovate or remove publicly owned dams.
The commissioner shall determine project
priorities as appropriate under Minnesota
Statutes, sections 103G.511 and 103G.515.
Of this appropriation:
new text end

new text begin $500,000 is for emergencies on state-owned
dams;
new text end

new text begin $3,600,000 is for a grant to the city of
Lanesboro for repair of the Lanesboro dam
and notwithstanding the match requirements
in Minnesota Statutes, section 103G.511,
does not require a nonstate contribution.
This includes funding for repairs of the
hydropower system;
new text end

new text begin $2,500,000 is for repairs of the Lake Bronson
dam;
new text end

new text begin $500,000 is for a grant to the city of Pelican
Rapids for engineering work for the Pelican
Rapids dam;
new text end

new text begin $200,000 is for a grant to the city of Norway
Lake for engineering work on the Norway
Lake dam;
new text end

new text begin $200,000 is for a grant to Yellow Medicine
County for the Canby R-6 impoundment dam;
new text end

new text begin $100,000 is for a grant to St. Louis County
for the Little Stone Lake dam; and
new text end

new text begin $1,400,000 is for state dams at Brawner,
West Leaf Lake, Collinwood, Grindstone
River, and Sullivan.
new text end

new text begin If the commissioner determines that a project
is not ready to proceed, this appropriation
may be used for other projects on the
commissioner's priority list.
new text end

new text begin Subd. 5. new text end new text begin Reforestation and Stand Improvement new text end

new text begin 1,000,000 new text end

new text begin To provide for reforestation and stand
improvement on state forest lands to meet
the reforestation requirements of Minnesota
Statutes, section 89.002, subdivision 2,
including purchasing native seeds and native
seedlings, planting, seeding, site preparation,
and protection on state lands administered
by the commissioner.
new text end

new text begin Subd. 6. new text end new text begin Trail Development new text end

new text begin 11,490,000 new text end

new text begin $2,590,000 is for the Glacial Lakes Trail,
to complete an approximately six and
one-quarter mile trail connection between
New London and Sibley State Park, and
repair of the bicycle trail in Sibley State Park.
new text end

new text begin $3,600,000 is for acquisition and
development in the Cuyuna Country State
Recreation Area, including the Cuyuna
Mountain Bike System.
new text end

new text begin $3,300,000 is to design, develop, and
complete the Heartland State Trail from
Detroit Lakes to Frazee.
new text end

new text begin $2,000,000 is for acquisition and
development of the Gitchi-Gami State Trail,
Grand Marais to Cascade State Park, and
through the town of Tofte.
new text end

new text begin Subd. 7. new text end new text begin Champlin Mill Pond new text end

new text begin 3,300,000 new text end

new text begin For a grant to the city of Champlin to dredge
and remove sediment and for other capital
improvements of the Champlin Mill Pond
necessary to improve water quality, restore
fish habitat, and provide other public benefits.
new text end

new text begin Subd. 8. new text end new text begin Lake County - Prospectors ATV Trail System new text end

new text begin 1,000,000 new text end

new text begin For a grant to Lake County for construction,
including bridges, of the Prospectors ATV
Trail System linking the communities of
Ely, Babbitt, Embarrass, and Tower; Bear
Head Lake and Lake Vermilion-Soudan
Underground Mine State Parks; the Taconite
State Trail; and the Lake County Regional
ATV Trail System. This appropriation is
not available until the commissioner of
management and budget determines that
an equal amount is committed from other
sources.
new text end

new text begin Subd. 9. new text end new text begin Unspent Appropriations new text end

new text begin The unspent portion of an appropriation for
a project in this section that is complete,
upon written notice to the commissioner
of management and budget, is available
for asset preservation under Minnesota
Statutes, section 84.946. Minnesota Statutes,
section 16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.
new text end

Sec. 7. new text begin POLLUTION CONTROL AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 21,155,000 new text end

new text begin To the commissioner of the Pollution Control
Agency for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end new text begin St. Louis River Cleanup new text end

new text begin 12,705,000 new text end

new text begin To design and implement contaminated
sediment management actions identified in
the St. Louis River remedial action plan to
restore water quality in the St. Louis River
Area of Concern. The agency shall enter
into partnership agreements with federal
agencies, where possible, to complete this
project work by December 31, 2020.
new text end

new text begin Subd. 3. new text end new text begin Redwood-Cottonwood Rivers Joint Powers - Lake Redwood Reclamation and Enhancement Project new text end

new text begin 7,800,000 new text end

new text begin For a grant to the Redwood-Cottonwood
Rivers control area, a joint powers entity,
to predesign, design, construct, and equip
the reservoir reclamation and enhancement
of the 66-acre Lake Redwood Reservoir, to
remove approximately 650,000 cubic yards
of sediment and increase its depth from
approximately 2.8 feet to approximately 20
feet in order to secure renewable energy
capacity of the hydroelectric dam which is
impeded by lack of water capacity, reduce
the flow of pollutants to the Minnesota
River, and increase fish habitat and enhance
recreational opportunities.
new text end

new text begin Subd. 4. new text end new text begin Closed Landfill Cleanup new text end

new text begin 650,000 new text end

new text begin To design and construct remedial systems and
acquire land at closed landfills throughout the
state in accordance with the closed landfill
program under Minnesota Statutes, sections
115B.39 to 115B.42. The agency must
follow the agency priorities, which includes
a construction project at the waste disposal
engineering (WDE) site in Anoka County.
new text end

new text begin Subd. 5. new text end new text begin Capital Assistance Program new text end

new text begin 9,250,000 new text end

new text begin (a) This appropriation is for the solid waste
capital assistance grant program under
Minnesota Statutes, section 115A.54.
new text end

new text begin (b) Of this appropriation, $9,250,000 is for a
grant to Polk County to complete a regional
integrated solid waste management system.
An additional renewable energy component
shall not be mandated as a requirement of
this project to qualify for funding under this
section.
new text end

Sec. 8. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 20,000,000 new text end

new text begin To the Board of Water and Soil Resources
for the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Reinvest in Minnesota (RIM) Reserve Program new text end

new text begin 10,000,000 new text end

new text begin (a) To acquire conservation easements from
landowners to preserve, restore, create, and
enhance wetlands and associated uplands
of prairie and grasslands, and restore and
enhance rivers and streams, riparian lands,
and associated uplands of prairie and
grasslands in order to protect soil and water
quality, support fish and wildlife habitat,
reduce flood damage, and provide other
public benefits. The provisions of Minnesota
Statutes, section 103F.515, apply to this
program.
new text end

new text begin (b) The board shall give priority to leveraging
federal money by enrolling targeted new
lands or enrolling environmentally sensitive
lands that have expiring federal conservation
agreements.
new text end

new text begin (c) The board is authorized to enter into
new agreements and amend past agreements
with landowners as required by Minnesota
Statutes, section 103F.515, subdivision 5, to
allow for restoration. Of this appropriation,
up to five percent may be used for restoration
and enhancement.
new text end

new text begin Subd. 3. new text end new text begin Local Government Roads Wetland Replacement Program new text end

new text begin 5,000,000 new text end

new text begin To acquire land or permanent easements
and to restore, create, enhance, and preserve
wetlands to replace those wetlands drained or
filled as a result of the repair, reconstruction,
replacement, or rehabilitation of existing
public roads as required by Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m). The board may vary
the priority order of Minnesota Statutes,
section 103G.222, subdivision 3, paragraph
(a), to implement an in-lieu fee agreement
approved by the U.S. Army Corps of
Engineers under section 404 of the Clean
Water Act. The purchase price paid for
acquisition of land or perpetual easement
must be a fair market value as determined
by the board. The board may enter into
agreements with the federal government,
other state agencies, political subdivisions,
nonprofit organizations, fee title owners, or
other qualified private entities to acquire
wetland replacement credits in accordance
with Minnesota Rules, chapter 8420.
new text end

Sec. 9. new text begin AGRICULTURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriations new text end

new text begin $ new text end

new text begin 2,824,000 new text end

new text begin To the commissioner of agriculture for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Agriculture Lab new text end

new text begin 2,218,000 new text end

new text begin From the general fund for equipment and
instruments for the agriculture laboratory.
This appropriation is available until June 30,
2022.
new text end

new text begin Subd. 3. new text end new text begin AURI new text end

new text begin 606,000 new text end

new text begin From the general fund for a grant to
Agricultural Utilization Research Institute
(AURI) for construction of a development
kitchen, sensory lab, and safety and security
upgrades at AURI's Crookston facility
and for communications and information
technology upgrades at the Crookston,
Marshall, and Waseca facilities.
new text end

Sec. 10. new text begin RURAL FINANCE AUTHORITY new text end

new text begin $ new text end

new text begin 35,000,000 new text end

new text begin For the purposes set forth in the Minnesota
Constitution, article XI, section 5, paragraph
(h), to the Rural Finance Authority to
purchase participation interests in or to
make direct agricultural loans to farmers
under Minnesota Statutes, chapter 41B. This
appropriation is from the bond proceeds
account in the rural finance administration
fund and is for the beginning farmer program
under Minnesota Statutes, section 41B.039;
the loan restructuring program under
Minnesota Statutes, section 41B.04; the
seller-sponsored program under Minnesota
Statutes, section 41B.042; the agricultural
improvement loan program under Minnesota
Statutes, section 41B.043; and the livestock
expansion loan program under Minnesota
Statutes, section 41B.045. All debt service
on bond proceeds used to finance this
appropriation must be repaid by the Rural
Finance Authority under Minnesota Statutes,
section 16A.643. Loan participations
must be priced to provide full interest
and principal coverage and a reserve for
potential losses. Priority for loans must be
given first to basic beginning farmer loans,
second to seller-sponsored loans, and third to
agricultural improvement loans.
new text end

Sec. 11. new text begin MINNESOTA ZOOLOGICAL GARDEN new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 4,000,000 new text end

new text begin To the Minnesota Zoological Garden Board
for the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 4,000,000 new text end

new text begin For capital asset preservation improvements
and betterments to infrastructure and
exhibits at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the board may use this
appropriation to replace buildings that are
poor in condition, outdated, and no longer
support the work of the Minnesota Zoo and
to construct and renovate trails and roads on
the Minnesota Zoo site.
new text end

Sec. 12. new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 26,178,000 new text end

new text begin To the commissioner of administration for
the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Capitol Complex - Physical Security Upgrades new text end

new text begin 10,500,000 new text end

new text begin For the design, construction, and equipping
required to upgrade the physical security
elements and systems for the buildings
listed below, their attached tunnel systems,
and their surrounding grounds, and parking
facilities as identified in the 2014 Minnesota
State Capitol Complex Physical Security
Study conducted by Miller Dunwiddie
Architecture. Work includes but is not
limited to the installation of bollards, blast
protection, infrastructure security screen
walls, door access controls, emergency call
stations, security kiosks, locking devices,
and traffic control. This appropriation
includes money for work associated with
the following buildings: Administration,
Centennial, Judicial, Ag/Health Lab,
Minnesota History Center, Minnesota
History Center Loading Dock, Capitol
Complex Power Plant and Shops, Stassen,
State Office, and Veterans Service.
new text end

new text begin Subd. 3. new text end new text begin Centennial Parking Ramp new text end

new text begin 10,878,000 new text end

new text begin To complete design and for structural repairs
to the Centennial parking ramp, including
removal of the top deck green space to
provide additional parking capacity, repairing
damaged post-tension cables, and installation
of a deck surface protection coating.
new text end

new text begin Subd. 4. new text end new text begin Capital Asset Preservation and Replacement Account new text end

new text begin 2,500,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 16A.632.
new text end

new text begin Subd. 5. new text end new text begin Capitol Complex Monuments and Memorials new text end

new text begin 350,000 new text end

new text begin To design and complete critical repairs to the
Peace Officers and Roy Wilkins memorials
located on the Capitol complex.
new text end

new text begin Subd. 6. new text end new text begin Granite Falls - Pioneer Public Television new text end

new text begin 1,950,000 new text end

new text begin From the general fund to provide an
equipment grant to Pioneer Public Television
as part of the station's construction of a
new facility in Granite Falls, Minnesota.
The money may be used to purchase and
install equipment necessary to the station's
operation. This appropriation does not
require a nonstate contribution.
new text end

Sec. 13. new text begin MN.IT new text end

new text begin $ new text end

new text begin $1,432,000 new text end

new text begin To the commissioner of administration
to predesign, design, construct, renovate,
furnish, and equip existing state data
center facilities at the Bureau of Criminal
Apprehension's Maryland Avenue office
building and at the Department of Revenue's
Stassen Office Building for the purpose
of decommissioning and repurposing into
usable space.
new text end

Sec. 14. new text begin MILITARY AFFAIRS new text end

new text begin $ new text end

new text begin 2,500,000 new text end

new text begin To the adjutant general for asset preservation
improvements and betterments of a capital
nature at military affairs facilities statewide,
to be spent in accordance with Minnesota
Statutes, section 16B.307.
new text end

Sec. 15. new text begin PUBLIC SAFETY new text end

new text begin $ new text end

new text begin 3,521,000 new text end

new text begin To the commissioner of administration to
design and construct a joint emergency
railroad and pipeline emergency response
training facility at Camp Ripley, including
the construction of stations and capital
infrastructure needed for mock disaster
training.
new text end

Sec. 16. new text begin TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 281,045,000 new text end

new text begin To the commissioner of transportation for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Local Bridge Replacement and Rehabilitation new text end

new text begin 149,446,000 new text end

new text begin From the bond proceeds account in the state
transportation fund to match federal money
and to replace or rehabilitate local deficient
bridges as provided in Minnesota Statutes,
section 174.50.
new text end

new text begin Subd. 3. new text end new text begin Local Road Improvement Fund Grants new text end

new text begin 137,200,000 new text end

new text begin (a) From the bond proceeds account in
the state transportation fund as provided
in Minnesota Statutes, section 174.50, for
grants under Minnesota Statutes, section
174.52, subdivision 2, for construction and
reconstruction of local roads with statewide
or regional significance under Minnesota
Statutes, section 174.52, subdivision 4, or for
grants to counties to assist in paying the costs
of rural road safety capital improvement
projects on county state-aid highways
under Minnesota Statutes, section 174.52,
subdivision 4a.
new text end

new text begin (b) This appropriation includes money for a
grant to the city of Baxter for 50 percent of
total project cost for the acquisition of land
or interests in land, environmental analysis
and environmental cleanup, predesign,
design, engineering, and construction of
improvements to Cypress Drive, including
expansion to a four-lane divided urban
roadway, between Excelsior Road and
College Road.
new text end

new text begin (c) Of this amount, $1,000,000 is for a grant
to the town of Appleton in Swift County
for upgrades to an existing township road
to provide for a paved, ten-ton capacity
township road extending between marked
Trunk Highways 7 and 119.
new text end

new text begin (d) Of this amount, $25,000,000 is for a grant
to Hennepin County for design, right-of-way
acquisition, engineering, and construction
of public improvements related to the
Interstate Highway 35W and Lake Street
access project and related improvements
within the Interstate Highway 35W corridor.
This appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete the project has been committed to
the project.
new text end

new text begin (e) Of this amount, $20,500,000 is for a grant
to Ramsey County for preliminary and final
design, environmental documentation, and
construction of the interchange of marked
Interstate Highway 694 and Rice Street in
Ramsey County.
new text end

new text begin (f) Of this amount, $700,000 is for a grant to
Redwood County for paving Nobles Avenue
as the main access road to a new State
Veterans Cemetery to be located in Paxton
Township.
new text end

new text begin (g) Of this amount, $9,000,000 is for a grant
to Anoka County to complete the design, land
acquisition, engineering, and construction
of County State-Aid Highway 23, known
as Lake Drive, County State-Aid Highway
54, known as West Freeway Drive, and to
Hornsby Street in the city of Columbus to
support the interchange project as noted in
paragraph (a).
new text end

new text begin (h) Of this amount, $3,246,000 is for a
grant to the city of Blaine to predesign,
design, and reconstruct 105th Avenue in
the vicinity of the National Sports Center
in Blaine. The reconstruction will include
changing the street from five lanes to four
lanes with median, turn lanes, sidewalk,
trail, landscaping, lighting, and consolidation
of access driveways. This appropriation
is not available until the commissioner of
management and budget determines that at
least $3,000,000 is committed to the project
from sources available to the city, including
municipal state aid and county turnback
funds.
new text end

new text begin Subd. 4. new text end new text begin Rail Grade Separations new text end

new text begin 26,749,000 new text end

new text begin (a) $14,762,000 is for a grant to the city
of Red Wing for environmental analysis,
design, engineering, removal of an existing
structure, and construction of a rail grade
crossing separation at Sturgeon Lake Road.
new text end

new text begin (b) $11,987,000 is for a grant to Anoka
County for environmental analysis, design,
engineering, removal of an existing structure,
and construction of a rail grade crossing
separation at Anoka County State-Aid
Highway 78, known as Hanson Boulevard,
in Coon Rapids.
new text end

new text begin Subd. 5. new text end new text begin Railroad Warning Devices new text end

new text begin 1,000,000 new text end

new text begin To design, construct, and equip new rail
grade crossing warning safety devices at
active highway-rail grade crossings, or to
replace active highway-rail grade warning
safety devices that have reached the end of
their useful life.
new text end

new text begin Subd. 6. new text end new text begin Minnesota Valley Regional Rail Authority new text end

new text begin 4,000,000 new text end

new text begin For a grant to the Minnesota Valley Regional
Rail Authority for the rehabilitation of
a portion of the railroad track between
Winthrop and Hanley Falls. The grant
under this subdivision may also be used for
any required environmental documentation
and remediation, predesign, design, and
rehabilitation or replacement of bridges with
new bridges or culverts between Winthrop
and Hanley Falls. A grant under this section
is in addition to any grant, loan, or loan
guarantee for this project made by the
commissioner under Minnesota Statutes,
sections 222.46 to 222.62. This appropriation
is in addition to the appropriations in Laws
2006, chapter 258, section 16, subdivision
6; Laws 2008, chapter 179, section 16,
subdivision 5; Laws 2009, chapter 93, article
1, section 11, subdivision 4; Laws 2010,
chapter 189, section 15, subdivision 5; and
Laws 2015, First Special Session chapter 5,
article 1, section 10, subdivision 4.
new text end

new text begin Subd. 7. new text end new text begin Hugo - Short Line Railway new text end

new text begin 1,100,000 new text end

new text begin For a grant to Minnesota Commercial
Railway for construction of repairs and
other capital improvements to approximately
6.5 miles of railroad track described as
that portion of the Minnesota Commercial
Railway main running lead, between M &
D Junction in White Bear Lake and the end
of the track in Hugo. This appropriation
must be used for the purposes set forth in the
Minnesota Constitution, article XI, section
5, clause (i), to improve and rehabilitate
railroad rights-of-way and other rail facilities,
whether public or private. This appropriation
does not require a nonstate match.
new text end

new text begin Subd. 8. new text end new text begin International Falls-Koochiching County Airport Commission new text end

new text begin 3,000,000 new text end

new text begin (a) From the state airports fund for a grant to
the International Falls-Koochiching County
Airport Commission for the following
improvements to the Falls International
Airport:
new text end

new text begin (1) demolition of the existing terminal
building;
new text end

new text begin (2) rehabilitation;
new text end

new text begin (3) site preparation, including utilities and
civil work;
new text end

new text begin (4) design, construction, furnishing, and
equipping Phase II of the new terminal
building, including a Transportation Safety
Administration office, weather office,
conference room, circulation corridor, airport
administration offices, U.S. Customs and
Border Protection storage rooms, offices,
restrooms, passenger-processing area,
wet-hold room, interview room, search room,
precustoms and postcustoms passenger
waiting areas, and vestibule; and
new text end

new text begin (5) associated appurtenances of a capital
nature.
new text end

new text begin (b) After completion of the improvements
under paragraph (a), any unspent money
from this appropriation may be used by the
International Falls-Koochiching County
Airport Commission for a commercial
airline apron expansion project at the Falls
International Airport.
new text end

new text begin (c) This appropriation does not require a
nonstate contribution or match.
new text end

new text begin Subd. 9. new text end new text begin Grand Rapids Pedestrian Bridge new text end

new text begin 750,000 new text end

new text begin For a grant to the city of Grand Rapids to
design the construction of a bridge over the
Mississippi River for pedestrian and bicycle
use to provide a safe alternative route to
the existing marked Trunk Highway 169
vehicle bridge, and to serve as a connection
to existing trail systems on each side of the
river. This appropriation is not available until
the commissioner determines that an equal
amount has been committed to the project
from nonstate sources.
new text end

new text begin Subd. 10. new text end new text begin Port Development Assistance new text end

new text begin 5,000,000 new text end

new text begin For grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly
owned.
new text end

Sec. 17. new text begin METROPOLITAN COUNCIL new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 35,350,000 new text end

new text begin To the Metropolitan Council for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Metro Orange Line BRT new text end

new text begin 12,100,000 new text end

new text begin Up to $12,100,000, but an amount that
is no more than ten percent of the total
project cost, is for the Metropolitan Council,
or for the Metropolitan Council to make
grants to political subdivisions, for design,
acquisition of right-of-way, engineering, and
construction of capital improvements along
the I-35W corridor for completion of the
Metro Orange Bus Rapid Transit (BRT) Line.
new text end

new text begin Subd. 3. new text end new text begin Mall of America Station new text end

new text begin 8,750,000 new text end

new text begin For design and construction of improvements
to the Mall of America Station on the
Hiawatha Corridor light rail transit line,
subject to Minnesota Statutes, section
16A.695. The Metropolitan Council must
consult with the city of Bloomington
throughout the design and construction
process.
new text end

new text begin Subd. 4. new text end new text begin Metropolitan Cities Inflow and Infiltration Grants new text end

new text begin 2,500,000 new text end

new text begin For grants to cities within the metropolitan
area, as defined in Minnesota Statutes,
section 473.121, subdivision 2, for capital
improvements in municipal wastewater
collection systems to reduce the amount of
inflow and infiltration to the Metropolitan
Council's metropolitan sanitary sewer
disposal system. Grants from this
appropriation are for up to 50 percent of the
cost to mitigate inflow and infiltration in
the publicly owned municipal wastewater
collection systems. To be eligible for a grant,
a city must be identified by the council
as a contributor of excessive inflow and
infiltration in the metropolitan disposal
system or have a measured flow rate within 20
percent of its allowable council-determined
inflow and infiltration limits. The council
must award grants based on applications
from cities that identify eligible capital
costs and include a timeline for inflow and
infiltration mitigation construction, pursuant
to guidelines established by the council.
new text end

new text begin Subd. 5. new text end new text begin St. Paul - Como Zoo new text end

new text begin 12,000,000 new text end

new text begin For a grant to the city of St. Paul for
predesign, design, and engineering of Phase I
of the renovation of seal and sea lion habitat
at the Como Zoo. The renovated habitat
will support the zoo education programs.
This appropriation is not available until
the commissioner of management and
budget determines that at least $1,100,000
is committed to the project from nonstate
sources.
new text end

Sec. 18. new text begin HEALTH new text end

new text begin $ new text end

new text begin 2,335,000 new text end

new text begin From the general fund in fiscal year 2017 to
the commissioner of health for equipment
and instruments for the public health
laboratory. Notwithstanding Minnesota
Statutes, section 16A.642, this appropriation
is available until June 30, 2022.
new text end

Sec. 19. new text begin HUMAN SERVICES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 72,271,000 new text end

new text begin To the commissioner of administration, or
another named agency, for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Minnesota Security Hospital - St. Peter new text end

new text begin 57,611,000 new text end

new text begin To complete design, remodel, construct,
furnish, and equip the second phase of the
two-phase project to remodel existing and to
develop new residential, program, activity,
and ancillary facilities for the Minnesota
Security Hospital on the upper campus of the
St. Peter Regional Treatment Center. This
does not include construction of a new 48-bed
transitional housing unit. This appropriation
includes money to: demolish, renovate, and
remodel existing space; construct new space;
address fire and life safety, and other building
code deficiencies; replace or renovate
interior finishes; purchase furnishings,
fixtures, and equipment; replace or renovate
the Minnesota Security Hospital building's
HVAC, plumbing, electrical, security, and life
safety systems; tuck-point; replace windows
and doors; design and abate asbestos and
hazardous materials; and complete site work
necessary to support the programmed use
of the facilities on the St. Peter Regional
Treatment Center upper campus.
new text end

new text begin Subd. 3. new text end new text begin Child and Adolescent Behavioral Health Services new text end

new text begin 7,530,000 new text end

new text begin To purchase land in or near the city of
Willmar for, and to predesign, design,
construct, furnish, and equip, a 16-bed
psychiatric hospital facility of approximately
17,500 to 18,000 square feet that will house
the Child and Adolescent Behavioral Health
Services (CABHS) program. The facility
shall include space for single bedrooms,
bathing and toilets, dining, living, group and
treatment rooms, education space, visitation,
clinic/professional staff, operations staff,
patient storage, operations storage, food
preparation, HVAC/telecommunications/data
equipment, a small area for indoor recreation,
and a secure outdoor activity space. The
property for the facility will provide for staff
and visitor parking, outdoor activities, and
appropriate side, front, and rear setbacks.
new text end

new text begin Subd. 4. new text end new text begin Anoka Metro Regional Treatment Center Safety and Security Renovations new text end

new text begin 2,250,000 new text end

new text begin To provide security upgrades of a capital
nature at the Anoka Metro Regional
Treatment Center campus, including but
not limited to control centers, electronic
monitoring and perimeter security
equipment, new or updated security fencing,
and other building security renovations. This
appropriation includes money for: predesign,
design, furnishing, fixtures, and equipment;
construction of safety and security
improvements to courtyards on residential
treatment units; securely enclosing the
nursing station on Unit G; and installing a
campus-wide closed-circuit television video
security system, a facility-wide personal
duress alarm system, a key control system,
and an electronic access control system.
new text end

new text begin Subd. 5. new text end new text begin Regional Medical Examiner's Facility new text end

new text begin 2,680,000 new text end

new text begin For a grant to Hennepin County to design an
approximately 67,000 square foot regional,
state-of-the-art medical examiner's facility.
The facility shall: (1) provide forensic
death investigation and autopsy services
for Dakota, Hennepin, and Scott Counties
with the flexibility to accommodate future
partner counties and agencies; (2) serve as a
teaching facility for the state, on the science
of forensic pathology; and (3) be located in
the city of Bloomington as a site that best
supports access needs for the three founding
counties and reasonable scene response times
for the geographic service area.
new text end

new text begin Subd. 6. new text end new text begin Hennepin County - Perspectives Family Center new text end

new text begin 600,000 new text end

new text begin From the general fund to the commissioner
of human services in fiscal year 2017 for a
grant to Hennepin County to predesign and
design the expansion and renovation of the
existing Perspectives Family Center facility
in St. Louis Park, subject to Minnesota
Statutes, section 16A.695. The expanded
and renovated facility must be used to
promote the public welfare by providing
any or all of the following programs and
services: (1) supportive housing programs
for homeless women and their children;
(2) mental and chemical health programs;
(3) employment services; (4) academic,
social skills, and nutritional programs for
homeless and at-risk children; (5) an all-day
therapeutic early childhood development
program for homeless and at-risk children;
and (6) a culturally sensitive safe and
nurturing environment for at-risk children
to meet with their nonresidential parents.
This appropriation is not available until the
commissioner of management and budget
has determined that at least an equal amount
has been expended or committed to the
project from nonstate sources. Nonstate
money spent on the project since May 1,
2015, shall be included in the determination
of nonstate commitments to the project.
new text end

new text begin Subd. 7. new text end new text begin Minneapolis - The Family Partnership new text end

new text begin 1,000,000 new text end

new text begin From the general fund for a grant to the
Family Partnership in Minneapolis to
predesign and design a facility to provide
mental health, early childhood education,
and other services to support children and
families. This appropriation is not available
until at least an equal amount of money is
committed from nonstate resources. This
appropriation is available until the project
is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.
new text end

new text begin Subd. 8. new text end new text begin St. Paul - Dorothy Day Opportunity Center new text end

new text begin 12,000,000 new text end

new text begin For a grant to the city of St. Paul to predesign,
design, construct, furnish, and equip an
opportunity center to serve as an integrated
one-stop delivery system connecting persons
at risk of becoming homeless, and persons
working to move up and out of homelessness,
and to provide services that improve
their health, income, housing stability, or
well-being, subject to Minnesota Statutes,
section 16A.695. This appropriation may be
used to acquire property for these purposes.
This appropriation is not available until the
commissioner of management and budget has
determined that at least an equal amount has
been committed to the project from nonstate
sources. This appropriation is in addition to
the appropriation in Laws 2014, chapter 294,
article 1, section 18, subdivision 9.
new text end

Sec. 20. new text begin VETERANS AFFAIRS new text end

new text begin $ new text end

new text begin 5,000,000 new text end

new text begin To the commissioner of administration
for asset preservation improvements and
betterments of a capital nature at the veterans
homes in Minneapolis, Hastings, Fergus
Falls, Silver Bay, and Luverne, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

Sec. 21. new text begin CORRECTIONS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 40,900,000 new text end

new text begin To the commissioner of administration for
the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 20,000,000 new text end

new text begin For asset preservation improvements and
betterments of a capital nature at Minnesota
correctional facilities statewide, to be spent
in accordance with Minnesota Statutes,
section 16B.307.
new text end

new text begin Subd. 3. new text end new text begin Minnesota Correctional Facility - St. Cloud new text end

new text begin 19,000,000 new text end

new text begin To construct and equip a new intake unit and
a loading dock with a secure connection to
a new central warehouse at the Minnesota
Correctional Facility – St. Cloud.
new text end

new text begin Subd. 4. new text end new text begin Minnesota Correctional Facility - Moose Lake new text end

new text begin 1,900,000 new text end

new text begin To expand and renovate the outdated master
control center to improve security and
efficiency at the Minnesota Correctional
Facility - Moose Lake. The renovation
includes updating fire alarm panels and
mechanical and electrical systems and
improving visibility of the visiting area.
new text end

new text begin Subd. 5. new text end new text begin Unspent Appropriations new text end

new text begin The unspent portion of an appropriation for
a Department of Corrections project in this
section that is complete, upon written notice
to the commissioner of management and
budget, is available for asset preservation
under Minnesota Statutes, section 16B.307.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to
the unspent amount transferred.
new text end

Sec. 22. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 67,050,000 new text end

new text begin To the commissioner of employment and
economic development for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Transportation Economic Development new text end

new text begin 7,000,000 new text end

new text begin For grants under Minnesota Statutes, section
116J.436.
new text end

new text begin Subd. 3. new text end new text begin Greater Minnesota Business Development Public Infrastructure Grants new text end

new text begin 12,000,000 new text end

new text begin For grants under Minnesota Statutes, section
116J.431.
new text end

new text begin Subd. 4. new text end new text begin Innovative Business Development Public Infrastructure Grants new text end

new text begin 2,500,000 new text end

new text begin For grants under Minnesota Statutes, section
116J.435.
new text end

new text begin Subd. 5. new text end new text begin Bemidji - Regional Dental Facility new text end

new text begin 4,500,000 new text end

new text begin For a grant to the city of Bemidji to acquire
land for and to predesign, design, construct,
renovate, furnish, and equip a regional dental
facility in Bemidji, subject to Minnesota
Statutes, section 16A.695. This appropriation
is not available until the commissioner of
management and budget has determined that
at least $4,500,000 has been committed to
the project from nonstate sources. The value
of the land purchased or acquired by the city
after January 1, 2016, for this facility shall
count toward the nonstate match.
new text end

new text begin Subd. 6. new text end new text begin Hennepin County - Hennepin Center for the Arts new text end

new text begin 5,000,000 new text end

new text begin For a grant to Hennepin County for
improvements and betterments of a capital
nature to renovate the historic Hennepin
Center for the Arts, subject to Minnesota
Statutes, section 16A.695. This appropriation
is available after the commissioner of
management and budget determines that
$3,000,000 has been committed to complete
the project from nonstate sources.
new text end

new text begin Subd. 7. new text end new text begin Litchfield - Phase 2 Power Generation Improvements new text end

new text begin 3,000,000 new text end

new text begin For a grant to the city of Litchfield to
design and construct electrical generation
improvements in the city of Litchfield
to expand the current standby capacity,
including replacement of two old generators.
This appropriation is not available until the
commissioner of management and budget
determines that at least an equal amount
is committed to the project from nonstate
sources.
new text end

new text begin Subd. 8. new text end new text begin Madelia new text end

new text begin 98,000 new text end

new text begin For a grant to the city of Madelia for repair
and replacement of a capital nature of public
infrastructure damaged by a fire in Madelia
in February 2016. This appropriation does
not require a nonstate contribution.
new text end

new text begin Subd. 9. new text end new text begin Minneapolis - Norway House new text end

new text begin 5,000,000 new text end

new text begin From the general fund for a grant to
the Norway House to acquire land and
predesign, design, construct, furnish, and
equip a conference and event center at 913
East Franklin Avenue and adjacent property
in Minneapolis to celebrate the culture of
Norway and American Norwegians. This
appropriation is not available until at least
an equal amount is committed from nonstate
sources. Land purchased for this expansion
project shall count toward the nonstate match.
new text end

new text begin Subd. 10. new text end new text begin Minneapolis - Pioneers and Soldiers Cemetery Restoration new text end

new text begin 1,029,000 new text end

new text begin For a grant to the city of Minneapolis to
restore the historic steel and limestone pillar
fence along Cedar Avenue and Lake Street,
install a new steel fence and pillars along 21st
Avenue South, and install a waterproofing
system for preservation of the fence and
pillars, at the Pioneer and Soldiers Cemetery.
This appropriation is available after the
commissioner of management and budget
determines that $394,000 is committed from
nonstate sources.
new text end

new text begin Subd. 11. new text end new text begin Red Wing - River Town Renaissance new text end

new text begin 4,480,000 new text end

new text begin For a grant to the city of Red Wing to
complete removal and replacement of
approximately 250 lineal feet of the harbor
retaining wall; to design, construct, furnish,
and equip the renovation of the historic
T.B. Sheldon Performing Arts Theater; and
to design and construct transient riverboat
docking facilities, levee wall extension, and
levee promenade improvements at Levee
Park. This appropriation is not available
until the commissioner of management and
budget determines that an amount sufficient
to complete the project has been committed
from nonstate sources.
new text end

new text begin Subd. 12. new text end new text begin St. James - Public Infrastructure new text end

new text begin 3,443,000 new text end

new text begin For a grant to the city of St. James. Of
this amount, $2,193,000 is for engineering,
right-of-way acquisition, and reconstruction
of streets, sidewalks, storm water and
sanitary sewer, water mains, lighting,
utilities, and other capital improvements of
publicly owned infrastructure required for
the reconstruction of marked Trunk Highway
4 in the city of St. James, and $1,250,000
is to replace the storm sewer drain which
serves St. James Lake and the entire southern
section of the City of St. James.
new text end

new text begin Subd. 13. new text end new text begin St. Paul - Science Museum of Minnesota Building Preservation new text end

new text begin 13,000,000 new text end

new text begin For a grant to the city of St. Paul for
predesign, design, and construction work
to replace water-damaged elements of the
Science Museum of Minnesota's exterior
envelope and some resultant interior damage
caused by latent design and construction
defects, subject to Minnesota Statutes, section
16A.695. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount has
been committed to the project from nonstate
sources. Capital costs paid by the Science
Museum of Minnesota since January 1, 2014,
relating to the water intrusion damage, shall
count towards the match requirement.
new text end

new text begin Subd. 14. new text end new text begin St. Paul Port Authority - Minnesota Museum of American Art new text end

new text begin 6,000,000 new text end

new text begin
For a grant to the St. Paul Port Authority
to design, construct, furnish, and equip
improvements for the Minnesota Museum
of American Art for the historic Pioneer
Endicott Building renovation. The project
shall include galleries and education
facilities, art storage, access to the St. Paul
skyway, museum loading, and other capital
improvements required for a museum and
related education facility. The appropriation
shall be available upon a determination by
the commissioner that at least $8,500,000
of nonstate funds have been raised for the
project and there are sufficient funds to
complete the overall project.
new text end

Sec. 23. new text begin PUBLIC FACILITIES AUTHORITY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 154,226,000 new text end

new text begin To the Public Facilities Authority for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin State Match for Federal Grants new text end

new text begin 17,000,000 new text end

new text begin To match federal grants for the clean water
revolving fund under Minnesota Statutes,
section 446A.07, and the drinking water
revolving fund under Minnesota Statutes,
section 446A.081. This appropriation must
be used for qualified capital projects.
new text end

new text begin Subd. 3. new text end new text begin Water Infrastructure Funding Program new text end

new text begin 70,000,000 new text end

new text begin (a) For grants to eligible municipalities under
the water infrastructure funding program
under Minnesota Statutes, section 446A.072.
new text end

new text begin (b) $51,500,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range
under the clean water revolving fund
program.
new text end

new text begin (c) $18,500,000 is for drinking water projects
listed on the commissioner of health's project
priority list in the fundable range under the
drinking water revolving fund program.
new text end

new text begin (d) After all eligible projects under
paragraph (b) or (c) have been funded, the
Public Facilities Authority may transfer
any remaining, uncommitted money to
eligible projects under a program defined in
paragraph (b) or (c) based on that program's
project priority list.
new text end

new text begin Subd. 4. new text end new text begin Point Source Implementation Grants Program new text end

new text begin 46,500,000 new text end

new text begin For grants to eligible municipalities under the
point source implementation grants program
under Minnesota Statutes, section 446A.073.
This appropriation must be used for qualified
capital projects.
new text end

new text begin Subd. 5. new text end new text begin Big Lake Area Sanitary District - Sewer System and Force Main new text end

new text begin 1,200,000 new text end

new text begin For a grant to the Big Lake Area Sanitary
District to construct a pressure sewer system
and force main to convey sewage to the
Western Lake Superior Sanitary District
connection in the city of Cloquet. This
appropriation is not available until the
commissioner of management and budget
determines that an equal amount is committed
from nonstate sources. This appropriation
is in addition to the appropriation in Laws
2014, chapter 294, article 1, section 22,
subdivision 4.
new text end

new text begin Subd. 6. new text end new text begin Dennison - Sewage Treatment System Improvements new text end

new text begin 726,000 new text end

new text begin For a grant to the city of Dennison
to predesign, design, and construct a
new lift station and make sewage pond
improvements. This appropriation does not
require a nonstate contribution.
new text end

new text begin Subd. 7. new text end new text begin East Grand Forks new text end

new text begin 5,300,000 new text end

new text begin For a grant to the city of East Grand
Forks to design and construct wastewater
infrastructure improvements interconnecting
the wastewater system of East Grand Forks
to the wastewater treatment system in Grand
Forks, North Dakota. This appropriation
may not be used for improvements outside
the state. This appropriation is in addition
to grants under Minnesota Statutes, section
446A.072. A nonstate match is not required.
new text end

new text begin Subd. 8. new text end new text begin Koochiching County - Voyageurs National Park Clean Water Project new text end

new text begin 2,000,000 new text end

new text begin (a) For a grant to Koochiching County to
acquire land or interests in land, and to design,
engineer, construct, and equip sanitary
sewage systems and facilities to implement a
portion or portions of the Voyageurs National
Park clean water project comprehensive
plan. This appropriation is available after the
commissioner of management and budget
determines that $4,500,000 is committed
from nonstate sources.
new text end

new text begin (b) This appropriation is in addition to
the appropriation in Laws 2014, chapter
294, article 1, section 22, subdivision 7.
Notwithstanding the match requirement in
Laws 2014, chapter 294, article 1, section
22, subdivision 7, the nonstate match
required for this appropriation and the 2014
appropriation for a grant to Koochiching
County is 25 percent of the state grant
amounts. Any money remaining from this
appropriation after completion of the projects
in paragraph (a) is available for grants to
Koochiching County or St. Louis County to
be used for other projects described in the
comprehensive plan.
new text end

new text begin Subd. 9. new text end new text begin Lilydale - Highway 13 Storm Water Conveyance new text end

new text begin 140,000 new text end

new text begin From the general fund for a grant to the city
of Lilydale to design, acquire, construct, and
install a storm water sewer and drop structure
along Trunk Highway 13 in Lilydale that
will be large enough to effectively collect
water from springs and storm water runoff
from above the road and safely convey the
water to below the bluff. The city must
coordinate this project with the Department
of Transportation's Trunk Highway 13
project. The appropriation and project also
include capital repairs and improvements
to existing drainage structures along the
Big Rivers Regional Trail at the base of the
bluff. This appropriation does not require a
nonstate contribution.
new text end

new text begin Subd. 10. new text end new text begin Oronoco - Wastewater Collection and Treatment Facilities new text end

new text begin 500,000 new text end

new text begin From the general fund for a grant to the
city of Oronoco to commission a study to
evaluate options for solving the wastewater
infrastructure needs for the region including
the city of Oronoco, the city of Pine Island,
or the city of Rochester. This appropriation
does not require a nonstate match.
new text end

Sec. 24. new text begin MINNESOTA HOUSING FINANCE AGENCY new text end

new text begin $ new text end

new text begin 10,000,000 new text end

new text begin For transfer to the housing development
fund to finance the costs of rehabilitation to
preserve public housing under Minnesota
Statutes, section 462A.202, subdivision
3a. For purposes of this section, "public
housing" means housing for low-income
persons and households financed by the
federal government and owned and operated
by the public housing authorities and
agencies formed by cities and counties.
Public housing authorities receiving a public
housing assessment composite score of 80
or above or an equivalent designation are
eligible to receive funding. Priority must be
given to proposals that maximize federal or
local resources to finance the capital costs.
The priority in Minnesota Statutes, section
462A.202, subdivision 3a, for projects to
increase the supply of affordable housing and
the restrictions of Minnesota Statutes, section
462A.202, subdivision 7, do not apply to this
appropriation.
new text end

Sec. 25. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 2,500,000 new text end

new text begin To the Minnesota Historical Society for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Historic Sites Asset Preservation new text end

new text begin 2,500,000 new text end

new text begin For capital improvements and betterments
at state historic sites, buildings, landscaping
at historic buildings, exhibits, markers, and
monuments, to be spent in accordance with
Minnesota Statutes, section 16B.307. The
society shall determine project priorities as
appropriate based on need.
new text end

Sec. 26. new text begin BOND SALE EXPENSES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,070,000 new text end

new text begin To the commissioner of management and
budget for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end new text begin Bond Proceeds Fund new text end

new text begin 1,070,000 new text end

new text begin From the bond proceeds fund for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.
new text end

Sec. 27. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this
act from the bond proceeds fund, the commissioner of management and budget shall sell
and issue bonds of the state in an amount up to $1,242,558 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and
by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Transportation fund. new text end

new text begin To provide the money appropriated in this act from
the state transportation fund, the commissioner of management and budget shall sell and
issue bonds of the state in an amount up to $231,446,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and
by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 3. new text end

new text begin Maximum effort school loan fund. new text end

new text begin To provide the money appropriated
in this act from the maximum effort school loan fund, the commissioner of management
and budget shall sell and issue bonds of the state in an amount up to $14,070,000 in the
manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

Sec. 28. new text begin CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
new text end

new text begin (a) The remaining uncommitted appropriations from the bond proceeds fund in Laws
1990, chapter 610, are canceled and the bond sale authorization in Laws 1990, chapter
610, article 1, section 30, subdivision 1, as amended, is reduced by $3,129.
new text end

new text begin (b) The remaining uncommitted appropriations from the bond proceeds fund in
Laws 1994, chapter 643, are canceled and the bond sale authorization in Laws 1994,
chapter 643, section 31, subdivision 1, as amended, is reduced by $24,480.
new text end

new text begin (c) The remaining uncommitted appropriations from the bond proceeds fund in Laws
1997, Second Special Session chapter 2, are canceled and the bond sale authorization in
Laws 1997, Second Special Session chapter 2, section 12, as amended, is reduced by
$96,992.
new text end

new text begin (d) The remaining uncommitted appropriations from the bond proceeds fund in
Laws 1999, chapter 240, are canceled and the bond sale authorization in Laws 1999,
chapter 240, article 1, section 13, subdivision 1, as amended, is reduced by $212,472.
new text end

new text begin (e) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2000, chapter 492, are canceled and the bond sale authorization in Laws 2000, chapter
492, article 1, section 26, subdivision 1, as amended, is reduced by $7,933,538.
new text end

new text begin (f) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2002, chapter 393, are canceled and the bond sale authorization in Laws 2002, chapter
393, section 30, subdivision 1, as amended, is reduced by $188,471.
new text end

new text begin (g) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2002, First Special Session chapter 1, are canceled and the bond sale authorization in Laws
2002, First Special Session chapter 1, section 9, subdivision 1, is reduced by $217,959.
new text end

new text begin (h) The remaining uncommitted appropriations from the trunk highway bond
proceeds fund in Laws 2003, First Special Session chapter 19, article 3, are canceled and
the bond sale authorization in Laws 2003, First Special Session chapter 19, article 3,
section 2, is reduced by $201,530.
new text end

new text begin (i) The remaining uncommitted appropriations from the trunk highway bond
proceeds fund in Laws 2003, First Special Session chapter 19, article 4, are canceled and
the bond sale authorization in Laws 2003, First Special Session chapter 19, article 4,
section 4, is reduced by $326,534.
new text end

new text begin (j) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2005, chapter 20, are canceled and the bond sale authorization in Laws 2005, chapter 20,
article 1, section 28, subdivision 1, as amended, is reduced by $3,366,628.
new text end

new text begin (k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First
Special Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is
canceled and the bond sale authorization in Laws 2011, First Special Session chapter 12,
section 23, subdivision 1, is reduced by the same amount.
new text end

new text begin (l) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012,
First Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner
of public safety for disaster relief, is canceled and the bond sale authorization in Laws
2012, First Special Session chapter 1, article 1, section 16, subdivision 1, is reduced
by the same amount.
new text end

new text begin (m) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012,
First Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for
disaster relief, is canceled and the bond sale authorization in Laws 2012, First Special
Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
new text end

new text begin (n) $2,335,000 of the appropriation from the bond proceeds fund in Laws 2012, First
Special Session chapter 1, article 1, section 9, subdivision 2, to the commissioner of
natural resources for disaster relief, is canceled, and the bond sale authorization in Laws
2012, First Special Session chapter 1, article 1, section 16, subdivision 1, is reduced
by the same amount.
new text end

new text begin (o) The $300,000 appropriation from the general fund in Laws 2015, First Special
Session chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.
new text end

Sec. 29.

Laws 2015, First Special Session chapter 5, article 1, section 19, is amended
to read:

Sec. 19. BOND SALE SCHEDULE.

The commissioner of management and budget shall schedule the sale of state
general obligation bonds so that, during the biennium ending June 30, 2017, no more
than deleted text begin $1,267,459,000 deleted text end new text begin $1,242,558,000 new text end will need to be transferred from the general fund to
the state bond fund to pay principal and interest due and to become due on outstanding
state general obligation bonds. During the biennium, before each sale of state general
obligation bonds, the commissioner of management and budget shall calculate the amount
of debt service payments needed on bonds previously issued and shall estimate the amount
of debt service payments that will be needed on the bonds scheduled to be sold. The
commissioner shall adjust the amount of bonds scheduled to be sold so as to remain within
the limit set by this section. The amount needed to make the debt service payments is
appropriated from the general fund as provided in Minnesota Statutes, section 16A.641.

Sec. 30. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this article is effective the day following final
enactment.
new text end

ARTICLE 2

TRANSPORTATION FINANCE AND POLICY

Section 1. new text begin TRANSPORTATION CAPITAL IMPROVEMENT APPROPRIATIONS. new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2015, chapter 75, article 1, to the commissioner of transportation
for the purposes specified in this article. The appropriations are from the general fund, or
another named fund, and are available for the fiscal years indicated for each purpose. The
figures "2016" and "2017" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively.
"The first year" is fiscal year 2016. "The second year" is fiscal year 2017. "The biennium"
is fiscal years 2016 and 2017.
new text end

new text begin (b) Appropriations of bond proceeds must be spent as authorized by the Minnesota
Constitution, article XI, section 5, paragraph (a), to acquire and better public land and
buildings and other public improvements of a capital nature, or as authorized by the
Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless
otherwise specified, money appropriated in this act for a capital program or project may
be used to pay state agency staff costs that are attributed directly to the capital program
or project in accordance with accounting policies adopted by the commissioner of
management and budget. Unless otherwise specified, the appropriations of bond proceeds
in this act are available until the project is completed or abandoned subject to Minnesota
Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in
this act for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
should not be used for projects that can be financed within a reasonable time frame under
Minnesota Statutes, section 16B.322 or 16C.144.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2016 new text end		new text begin 2017 new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 20,000,000 new text end

new text begin $ new text end

new text begin 410,968,000 new text end

new text begin To the commissioner of transportation for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Corridors of Commerce new text end

new text begin -0- new text end

new text begin 199,500,000 new text end

new text begin This is a onetime appropriation for the
corridors of commerce program under
Minnesota Statutes, section 161.088,
notwithstanding any requirements of that
section, for all the following projects, in
amounts as determined by the commissioner:
new text end

new text begin (1) construction of marked Trunk Highway
23 as a four-lane divided highway (i) from
the point where marked Trunk Highway
23 ceases as a four-lane divided highway
near the intersection with Kandiyohi County
State-Aid Highway 31, located east of New
London, to the point where marked Trunk
Highway 23 commences as a four-lane
divided highway, located southwest of
Paynesville, and (ii) from the point where
marked Trunk Highway 23 ceases as a
four-lane divided highway, located northeast
of Paynesville, to the point where marked
Trunk Highway 23 commences as a four-lane
divided highway, located southwest of
Richmond, provided that notwithstanding
Minnesota Statutes, section 16A.28, this
amount is available for seven years;
new text end

new text begin (2) construction and reconstruction of
marked Trunk Highway 14 as a four-lane
divided highway, from the interchange with
marked Interstate Highway 35 near the
city of Owatonna to the point near the city
of Dodge Center at which marked Trunk
Highway 14 constitutes a four-lane divided
highway, located southeast of the intersection
with marked Trunk Highway 56;
new text end

new text begin (3) right-of-way acquisition and construction
of an interchange at marked Trunk Highway
212 and Carver County Road 140 in the city
of Chaska, to support the development of
approximately 400 acres of property in the
city of Chaska's comprehensive plan;
new text end

new text begin (4) to add a third travel lane in each direction
of marked U.S. Highway 10 from the
interchange with Hanson Boulevard to the
interchange with Round Lake Boulevard in
the city of Coon Rapids;
new text end

new text begin (5) to acquire land, predesign, design, and
construct an interchange with related utilities
at the intersection of marked U.S. Highway
10, County Road 79, and County State-Aid
Highway 4, and to construct frontage roads
on both sides of marked U.S. Highway 10,
extending from the intersection of marked
U.S. Highway 10, County Road 79, and
County State-Aid Highway 4 to 85th Street;
new text end

new text begin (6) land acquisition in conjunction with
project development for expansion of marked
U.S. Highway 14 to a four-lane divided
highway between Nicollet and New Ulm; and
new text end

new text begin (7) a grant to Anoka County to complete
preliminary engineering, environmental
analysis, and final design for the improvement
of marked U.S. Highway 10 and associated
improvements.
new text end

new text begin Subd. 3. new text end new text begin State and Local Roads new text end

new text begin -0- new text end

new text begin 100,500,000 new text end

new text begin This is a onetime appropriation for all
of the following purposes, in amounts as
determined by the commissioner:
new text end

new text begin (1) the transportation economic development
program under Minnesota Statutes, section
174.12;
new text end

new text begin (2) the small cities assistance program under
Minnesota Statutes, section 162.145;
new text end

new text begin (3) the safe routes to school program under
Minnesota Statutes, section 174.40;
new text end

new text begin (4) the safety improvement study for the
interchange of signed Interstate Highways
94, 694, and 494, as provided in this article;
new text end

new text begin (5) design, engineering, environmental
analysis, and construction of improvements
to Cliff Road in the vicinity of marked
Interstate Highway 35W;
new text end

new text begin (6) grants to the city of Virginia and the city
of Virginia Public Utilities Commission to
acquire land for and to predesign, design,
construct, furnish, and equip relocated
public utilities, including sanitary and storm
water sewers and water, electrical, and gas
utilities, and to demolish and remove old
utility infrastructure, all associated with the
relocation of marked trunk highway 53,
provided that a nonstate contribution is not
required;
new text end

new text begin (7) a grant to the city of Moorhead to
construct and complete phase 1 of the
grade separated rail crossings project in the
vicinity of 21st Street South in the city of
Moorhead, and for preliminary engineering
and environmental assessment of phase 2, the
grade separated rail crossing in the vicinity
of 11th Street South in the city of Moorhead,
provided that a nonstate contribution is not
required;
new text end

new text begin (8) town roads under Minnesota Statutes,
section 162.081;
new text end

new text begin (9) county state-aid highways under
Minnesota Statutes, chapter 162; and
new text end

new text begin (10) municipal state-aid streets under
Minnesota Statutes, chapter 162.
new text end

new text begin Subd. 4. new text end new text begin State Road Construction new text end

new text begin 20,000,000 new text end

new text begin 98,833,000 new text end

new text begin This is a onetime appropriation from the trunk
highway fund for (1) state road construction;
(2) for State Project No. 2514-122, consisting
of engineering and reconstruction of the
segment of marked U.S. Highway 61 in Red
Wing from westerly of Old West Main Street
to easterly of Potter Street, which is for trunk
highway costs in excess of the engineer's
estimate and associated program delivery;
and (3) a grant to the city of Cambridge
for final design, environmental analysis,
right-of-way acquisition, land acquisition,
corridor mapping, construction engineering,
and construction for the improvement of
marked Trunk Highway 95 and associated
improvements.
new text end

new text begin Subd. 5. new text end new text begin Trunk Highway Projects new text end

new text begin 62,000,000 new text end

new text begin For all of the projects specified in
subdivisions 6 to 8, in amounts as determined
by the commissioner.
new text end

new text begin Subd. 6. new text end new text begin Hennepin County - U.S. Highway 12 new text end

new text begin From the bond proceeds account in the
trunk highway fund for projects, including
preliminary and final design, engineering,
environmental analysis, right-of-way
acquisition, construction, and reconstruction
on marked U.S. Highway 12 as follows:
new text end

new text begin (1) realignment at the intersections with
Hennepin County State-Aid Highway 92;
new text end

new text begin (2) realignment and safety improvements
at the intersection with Hennepin County
State-Aid Highway 90; and
new text end

new text begin (3) safety median improvements from the
interchange with Wayzata Boulevard in
Wayzata to approximately one-half mile east
of the interchange with Hennepin County
State-Aid Highway 6.
new text end

new text begin Subd. 7. new text end new text begin Anoka County - I-35 Interchange in Columbus new text end

new text begin From the bond proceeds account in the
trunk highway fund for a grant to Anoka
County to: (1) complete the design, land
acquisition, engineering, and construction of
an interchange at the intersection of marked
Interstate Highway 35, marked Trunk
Highway 97, and County State-Aid Highway
23, and (2) realign and make associated
improvements to County State-Aid Highway
54, known as West Freeway Drive, in the
city of Columbus.
new text end

new text begin Subd. 8. new text end new text begin I-94/Brockton Lane Interchange new text end

new text begin From the bond proceeds account in the
trunk highway fund for the I-94/Brockton
Lane Interchange Project to construct an
interchange and auxiliary lanes on marked
Interstate Highway 94 east of the Hennepin
County State-Aid Highway 101 (Brockton
Lane) overpass in the city of Dayton.
new text end

new text begin Subd. 9. new text end new text begin Trunk Highway Bonds - Debt Service 2017 new text end

new text begin 546,000 new text end

new text begin From the trunk highway fund for transfer to
the state bond fund. If this appropriation is
insufficient to make all transfers required
in the year for which it is made, the
commissioner of management and budget
shall transfer the deficiency amount under
the statutory open appropriation, and notify
the chairs and ranking minority members of
the legislative committees with jurisdiction
over transportation finance and the chairs of
the senate Committee on Finance and the
house of representatives Committee on Ways
and Means of the amount of the deficiency.
Any excess appropriation cancels to the
trunk highway fund.
new text end

new text begin Subd. 10. new text end new text begin Airports new text end

new text begin -0- new text end

new text begin 11,135,000 new text end

new text begin This is a onetime appropriation from the state
airports fund for the following purposes:
new text end

new text begin (1) $4,985,000 for a grant to the city
of Rochester to design, rehabilitate,
demolish, and expand portions of the
existing passenger terminal building
at the Rochester International Airport,
provided that this amount also includes
money to remodel, construct, furnish,
and equip the existing passenger terminal
building and associated appurtenances
to meet the United States Customs and
Border Protection and Transportation
Security Administration standards for
safety, security, and processing time to
accommodate domestic and international
flights. The capital improvements paid for
with this appropriation may be used as the
local contribution required by Minnesota
Statutes, section 360.305, subdivision 4.
This appropriation is not available until the
commissioner of management and budget has
determined that at least an equal amount has
been committed to the project from nonstate
sources. Work that may be completed with
this appropriation includes but is not limited
to (i) site preparation including utilities,
site civil work, testing, and construction
administration services, (ii) the relocation,
modification, and addition of airline ticket
counters, baggage claim devices, public
spaces, offices, restrooms, support space,
break rooms, lockers, equipment storage,
communications, hallways, building
signage, medical visitor rooms, special needs
accommodations, hold rooms, secure storage,
equipment maintenance area, and building
engineering and technology systems, (iii)
improvements needed outside the terminal
to remove, restore, and tie into adjacent
utilities, sidewalks, driveways, parking lots,
and aircraft aprons, and (iv) the construction
of covered exterior equipment storage;
new text end

new text begin (2) $5,900,000 to provide the federal match
to design and construct runway infrastructure
at the Duluth International and Sky Harbor
Airports in accordance with Minnesota
Statutes, section 360.017. For the purposes
of this clause, the commissioner may waive
the requirements of Minnesota Statutes,
section 360.305, subdivision 4, paragraph
(b). This appropriation is for costs incurred
after March 1, 2016, and is available until
and must be encumbered by June 30, 2017.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources; and
new text end

new text begin (3) $250,000 to conduct an air transport
optimization planning study for the St.
Cloud Regional Airport, which must be
comprehensive and market-based, using
economic development and air service
expertise to research, analyze, and develop
models and strategies that maximize the
return on investments made to enhance the
use and impact of the St. Cloud Regional
Airport.
new text end

new text begin Subd. 11. new text end new text begin Minnesota Rail Service Improvement new text end

new text begin -0- new text end

new text begin 1,000,000 new text end

new text begin This is a onetime appropriation from the
rail service improvement account in the
special revenue fund to the commissioner of
transportation for a grant to the city of Grand
Rapids to fund rail planning studies, design,
and preliminary engineering relating to the
construction of a freight rail line located in
the counties of Itasca, St. Louis, and Lake to
serve local producers and shippers. The city
of Grand Rapids shall collaborate with the
Itasca Economic Development Corporation
and the Itasca County Regional Railroad
Authority in the activities funded with the
proceeds of this grant. This appropriation is
available until June 30, 2019.
new text end

Sec. 3. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Trunk highway bonds. new text end

new text begin To provide the money appropriated in
this act from the bond proceeds account in the trunk highway fund, the commissioner
of management and budget shall sell and issue bonds of the state in an amount up to
$62,062,000 in the manner, upon the terms, and with the effect prescribed by Minnesota
Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section
11, at the times and in the amounts requested by the commissioner of transportation. The
proceeds of the bonds, except accrued interest and any premium received from the sale of
the bonds, must be deposited in the bond proceeds account in the trunk highway fund.
new text end

Sec. 4.

Minnesota Statutes 2014, section 160.18, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Appeal process. new text end

new text begin (a) Notwithstanding chapter 14 and section 14.386,
the commissioner shall establish a concise, expedited process through which an owner
or occupant of property abutting a trunk highway may appeal a denial or revocation of
an access permit. The owner or occupant must initiate an appeal no later than 30 days
after the date the commissioner issues written notice of the denial or revocation of an
access permit. The process must provide the owner or occupant and the Department of
Transportation the opportunity to present information in support of their positions.
new text end

new text begin (b) The hearing must be conducted by an administrative law judge assigned by the
chief administrative law judge. The administrative law judge shall maintain a transcript of
the hearing and shall keep a record of all documents and data submitted at the hearing.
Within 30 days of the conclusion of the hearing, the administrative law judge shall
transmit to the commissioner the record of the proceedings along with a report and
recommendation based on the record made in the informal hearing. The commissioner
shall make a written decision regarding the access permit.
new text end

new text begin (c) Section 15.99 does not apply to matters using the appeal process in this
subdivision.
new text end

Sec. 5.

Minnesota Statutes 2015 Supplement, section 162.145, subdivision 3, is
amended to read:

Subd. 3.

Administration.

(a) Subject to funds made available by law, the
commissioner shall allocate all funds as provided in subdivision 4 deleted text begin and deleted text end new text begin . By June 1 of a
year in which aid is provided, the commissioner of transportation new text end shall deleted text begin notify deleted text end new text begin certify to new text end the
commissioner of revenue new text begin the amount to be paid to each eligible city new text end .

(b) Following notification from the commissioner of transportation, the
commissioner of revenue shall distribute the specified funds to cities in the same manner
as local government aid under chapter 477A. An appropriation to the commissioner of
transportation under this section is available to the commissioner of revenue for the
purposes specified in this paragraph.

(c) Notwithstanding other law to the contrary, in order to receive distributions under
this section, a city must conform to the standards in section 477A.017, subdivision 2. A
city that receives funds under this section must make and preserve records necessary to
show that the funds are spent in compliance with subdivision deleted text begin 4 deleted text end new text begin 5 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2016.
new text end

Sec. 6.

Minnesota Statutes 2014, section 219.015, is amended to read:

219.015 STATE RAIL SAFETY deleted text begin INSPECTOR deleted text end new text begin INSPECTION PROGRAM new text end .

Subdivision 1.

Positions established; duties.

(a) The commissioner of transportation
shall establish three state rail safety inspector positions deleted text begin in the Office of Freight and
Commercial Vehicle Operations of the Minnesota Department of Transportation. On or
after July 1, 2015 deleted text end , new text begin and new text end the commissioner may establish deleted text begin a fourth deleted text end new text begin up to six new text end state rail safety
deleted text begin inspector position deleted text end new text begin inspection program positions new text end following consultation with railroad
companies. The commissioner shall apply to and enter into agreements with the Federal
Railroad Administration (FRA) of the United States Department of Transportation
to participate in the federal State Rail Safety Participation Program for training and
certification of an inspector under authority of United States Code, title 49, sections 20103,
20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.

(b) A state rail safety inspector deleted text begin shall deleted text end new text begin may new text end inspect mainline track, secondary
track, and yard and industry track; inspect railroad right-of-way, including adjacent or
intersecting drainage, culverts, bridges, overhead structures, and traffic and other public
crossings; inspect yards and physical plants; new text begin inspect train equipment; new text end review and enforce
safety requirements; review maintenance and repair records; and review railroad security
measures.

(c) A state rail safety inspector may perform, but is not limited to, the duties
described in the federal State Rail Safety Participation Program. An inspector may train,
be certified, and participate in any of the federal State Rail Safety Participation Program
disciplines, including: track, signal and train control, motive power and equipment,
operating practices compliance, hazardous materials, and highway-rail grade crossings.

(d) To the extent delegated by the Federal Railroad Administration and authorized
by the commissioner, an inspector may issue citations for violations of this chapter, or to
ensure railroad employee and public safety and welfare.

Subd. 2.

Railroad company assessment; account; appropriation.

(a) As provided
in this subdivision, the commissioner shall annually assess railroad companies that are
(1) defined as common carriers under section 218.011; (2) classified by federal law
or regulation as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II
Carriers; and (3) operating in this state.

(b) The assessment must be deleted text begin by a division of deleted text end new text begin calculated to allocate new text end state rail
safety deleted text begin inspector deleted text end new text begin inspection new text end program costs deleted text begin in equal proportion between deleted text end new text begin proportionally
among new text end carriers based on route miles operated in Minnesota deleted text begin , assessed in equal amounts
for 365 days of the calendar year deleted text end new text begin at the time of assessment new text end . The commissioner shall
deleted text begin assess deleted text end new text begin include in the assessment calculation new text end all new text begin program or additional position new text end start-up
deleted text begin or re-establishment deleted text end costs deleted text begin , deleted text end new text begin ; new text end all deleted text begin related deleted text end costs of deleted text begin initiating deleted text end the state rail safety deleted text begin inspector deleted text end new text begin
inspection new text end program, new text begin including but not limited to inspection, administration, supervision,
travel, equipment, and training; new text end and new text begin costs of new text end ongoing state rail inspector duties.

(c) The assessments new text begin collected under this subdivision new text end must be deposited in a deleted text begin special
account in the special revenue fund, to be known as the deleted text end state rail safety inspection account new text begin ,
which is established in the special revenue fund new text end . new text begin The account consists of funds as provided
by this subdivision, and any other money donated, allotted, transferred, or otherwise
provided to the account. new text end Money in the account is appropriated to the commissioner for
the establishment and ongoing responsibilities of the state rail safety deleted text begin inspector deleted text end new text begin inspection new text end
program.

Subd. 3.

Work site safety coaching program.

The commissioner may exempt a
common carrier not federally classified as Class I from violations for a period of up to
two years if the common carrier applies for participation in a work site safety coaching
program, such as the "MNSharp" program administered by the Minnesota Department of
Labor and Industry, and the commissioner determines such participation to be preferred
enforcement for safety or security violations.

Subd. 4.

Appeal.

Any person aggrieved by an assessment levied under this section
may appeal within 90 days any assessment, violation, or administrative penalty to the
Office of Administrative Hearings, with further appeal and review by the district court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text begin INTERSTATE 94 WIRE ROPE SAFETY BARRIERS.
new text end

new text begin The commissioner of transportation must install wire rope safety barriers or another
equivalent safety device along the center median of the segment of marked Interstate
Highway 94 between Huron Boulevard and Cretin Avenue that does not currently have a
concrete median, wire rope safety barrier, or other equivalent safety device installed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin TRANSPARENT NOISE BARRIER.
new text end

new text begin The commissioner of transportation must include transparent panels as part of noise
barrier construction in the area of the interchange at marked Interstate Highway 694 and
marked Interstate Highway 35E.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9. new text begin CORRIDORS OF COMMERCE PROJECT SELECTION.
new text end

new text begin Notwithstanding the requirements of Minnesota Statutes, section 161.088,
subdivisions 3 to 5, the commissioner of transportation must include that segment of
marked U.S. Highway 212 from Chaska to Montevideo as an eligible highway in the
next project solicitation and selection process undertaken for the corridors of commerce
program under that section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10. new text begin INTERSTATE 94/694/494 INTERCHANGE SAFETY IMPROVEMENT
STUDY.
new text end

new text begin The commissioner of transportation must conduct a safety improvement study for
the interchange of signed Interstate Highways 94, 694, and 494 in the cities of Woodbury
and Oakdale. At a minimum, the study must provide specific recommendations to
improve the safety of the interchange and include cost estimates for each recommended
improvement. The commissioner must report the findings and recommendations of the
study to the legislative committees having jurisdiction over transportation policy and
finance within 180 days after the effective date of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

MISCELLANEOUS

Section 1.

Minnesota Statutes 2015 Supplement, section 16A.967, is amended to read:

16A.967 LEWIS AND CLARK APPROPRIATION BONDS.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument
of the state payable during a biennium from one or more of the following sources:

(1) money appropriated by law from the general fund in any biennium for debt
service due with respect to obligations described in deleted text begin subdivision 2, paragraph (c)
deleted text end new text begin subdivisions 2a and 2b new text end ;

(2) proceeds of the sale of obligations described in deleted text begin subdivision 2, paragraph (c)
deleted text end new text begin subdivisions 2a and 2b new text end ;

(3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph deleted text begin (e) deleted text end new text begin (d) new text end ; and

(4) investment earnings on amounts in clauses (1) to (3).

(c) "Debt service" means the amount payable in any biennium of principal, premium,
if any, and interest on appropriation bonds.

Subd. 2.

Authorization to issue appropriation bonds.

(a) Subject to the limitations
of this subdivision, the commissioner may sell and issue appropriation bonds of the state
under this section for public purposes as provided by law deleted text begin , including, in particular, the
financing of the land acquisition, design, engineering, and construction of facilities and
infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water
System project, including completion of the pipeline to Magnolia, extension of the project
to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering,
design, and easement acquisition for the final phase of the project to Worthington. No
bonds shall be sold until the commissioner determines that a nonstate match of at least
$9,000,000 is committed to this project phase deleted text end . Grant agreements entered into under this
section must provide for reimbursement to the state from any federal money provided for
the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.

(b) The appropriation bonds may be issued and sold only after the commissioner
determines that the construction and administration for work done on the project will
comply with (1) all federal requirements and regulations associated with the Lewis and
Clark Rural Water System Act of 2000, and (2) the cooperative agreement between the
United States Department of the Interior and the Lewis and Clark Regional Water System,
Inc. Proceeds of the appropriation bonds must be credited to a special appropriation Lewis
and Clark bond proceeds fund in the state treasury. All income from investment of the
bond proceeds, as estimated by the commissioner, is appropriated to the commissioner for
the payment of principal and interest on the appropriation bonds.

deleted text begin (c) Appropriation bonds may be sold and issued in amounts that, in the opinion of
the commissioner, are necessary to provide sufficient money, not to exceed $19,000,000
net of costs of issuance, for the purposes as provided under paragraph (a), and pay debt
service including capitalized interest, costs of issuance, costs of credit enhancement, or
make payments under other agreements entered into under paragraph (e).
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end Appropriation bonds may be issued in one or more issues or series on the
terms and conditions the commissioner determines to be in the best interests of the
state, but the term on any series of appropriation bonds may not exceed 25 years. The
appropriation bonds of each issue and series thereof shall be dated and bear interest,
and may be includable in or excludable from the gross income of the owners for federal
income tax purposes.

deleted text begin (e) deleted text end new text begin (d) new text end At the time of, or in anticipation of, issuing the appropriation bonds, and at
any time thereafter, so long as the appropriation bonds are outstanding, the commissioner
may enter into agreements and ancillary arrangements relating to the appropriation bonds,
including but not limited to trust indentures, grant agreements, lease or use agreements,
operating agreements, management agreements, liquidity facilities, remarketing or
dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
reimbursement agreements, indexing agreements, or interest exchange agreements. Any
payments made or received according to the agreement or ancillary arrangement shall be
made from or deposited as provided in the agreement or ancillary arrangement. The
determination of the commissioner included in an interest exchange agreement that the
agreement relates to an appropriation bond shall be conclusive.

deleted text begin (f) deleted text end new text begin (e) new text end The commissioner may enter into written agreements or contracts relating
to the continuing disclosure of information necessary to comply with or facilitate the
issuance of appropriation bonds in accordance with federal securities laws, rules, and
regulations, including Securities and Exchange Commission rules and regulations in Code
of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form
of covenants with purchasers and holders of appropriation bonds set forth in the order or
resolution authorizing the issuance of the appropriation bonds, or a separate document
authorized by the order or resolution.

deleted text begin (g) deleted text end new text begin (f) new text end The appropriation bonds are not subject to chapter 16C.

new text begin Subd. 2a. new text end

new text begin Project authorization. new text end

new text begin Appropriation bonds may be sold and issued in
amounts that, in the opinion of the commissioner, are necessary to provide sufficient
money to the Public Facilities Authority under subdivision 7, paragraph (a), not to exceed
$19,000,000 net of costs of issuance, for the purposes as provided under this subdivision,
and pay debt service including capitalized interest, costs of issuance, costs of credit
enhancement, or make payments under other agreements entered into under subdivision 2,
paragraph (d). The bonds authorized by this subdivision are for the purposes of financing
the land acquisition, design, engineering, and construction of facilities and infrastructure
necessary to complete Phase 2 of the Lewis and Clark Regional Water System project,
including completion of the pipeline to Magnolia; extension of the project to the
Lincoln-Pipestone Rural Water System connection near Adrian; and engineering, design,
and easement acquisition for the final phase of the project to Worthington. No bonds shall
be sold under this subdivision until the commissioner determines that a nonstate match of
at least $9,000,000 is committed to this project phase. Upon completion of Phase 2, the
unspent unencumbered portion of the appropriation in this subdivision is available for
the purposes of subdivision 2b.
new text end

new text begin Subd. 2b. new text end

new text begin Additional project authorization. new text end

new text begin Appropriation bonds may be sold
and issued in amounts that, in the opinion of the commissioner, are necessary to provide
sufficient money to the Public Facilities Authority under subdivision 7, paragraph (b),
not to exceed $11,500,000 net of costs of issuance, for the purposes as provided under
this subdivision, and pay debt service including capitalized interest, costs of issuance,
costs of credit enhancement, or make payments under other agreements entered into
under subdivision 2, paragraph (d). The bonds authorized by this subdivision are for
the purposes of financing the land acquisition, design, engineering, and construction of
facilities and infrastructure necessary to complete Phase 3 of the Lewis and Clark Regional
Water System project, including extension of the project from the Lincoln-Pipestone
Rural Water System connection near Adrian to Worthington, construction of a reservoir
in Nobles County and a meter building in Worthington, and acquisition and installation
of a supervisory control and data acquisition (SCADA) system. No bonds shall be sold
under this subdivision until the commissioner determines that a nonstate match of at least
$9,000,000 is committed to the final phase of the project.
new text end

Subd. 3.

Form; procedure.

(a) Appropriation bonds may be issued in the form
of bonds, notes, or other similar instruments, and in the manner provided in section
16A.672. In the event that any provision of section 16A.672 conflicts with this section,
this section shall control.

(b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 6.

(c) Appropriation bonds may be sold at either public or private sale upon such terms
as the commissioner shall determine are not inconsistent with this section and may be sold
at any price or percentage of par value. Any bid received may be rejected.

(d) Appropriation bonds must bear interest at a fixed or variable rate.

(e) Notwithstanding any other law, appropriation bonds issued under this section
shall be fully negotiable.

Subd. 4.

Refunding bonds.

The commissioner may issue appropriation bonds
for the purpose of refunding any appropriation bonds then outstanding, including the
payment of any redemption premiums on the bonds, any interest accrued or to accrue to
the redemption date, and costs related to the issuance and sale of the refunding bonds. The
proceeds of any refunding bonds may, in the discretion of the commissioner, be applied
to the purchase or payment at maturity of the appropriation bonds to be refunded, to the
redemption of the outstanding appropriation bonds on any redemption date, or to pay
interest on the refunding bonds and may, pending application, be placed in escrow to be
applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds,
pending such use, may be invested and reinvested in obligations that are authorized
investments under section 11A.24. The income earned or realized on the investment may
also be applied to the payment of the appropriation bonds to be refunded or interest or
premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds.
After the terms of the escrow have been fully satisfied, any balance of the proceeds and
any investment income may be returned to the general fund or, if applicable, the special
appropriation Lewis and Clark bond proceeds fund for use in any lawful manner. All
refunding bonds issued under this subdivision must be prepared, executed, delivered, and
secured by appropriations in the same manner as the appropriation bonds to be refunded.

Subd. 5.

Appropriation bonds as legal investments.

Any of the following entities
may legally invest any sinking funds, money, or other funds belonging to them or under
their control in any appropriation bonds issued under this section:

(1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;

(2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and

(3) personal representatives, guardians, trustees, and other fiduciaries.

Subd. 6.

No full faith and credit; state not required to make appropriations.

The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall
no longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.

Subd. 7.

Appropriation of proceeds.

new text begin (a) new text end The proceeds of appropriation bonds
new text begin issued under subdivision 2a new text end and interest credited to the special appropriation Lewis and
Clark bond proceeds fund are appropriated new text begin as follows:
new text end

new text begin (1) new text end to the deleted text begin commissioner deleted text end new text begin Public Facilities Authority new text end for new text begin a grant to the Lewis and
Clark Joint Powers Board for new text end payment of capital expenses deleted text begin for the purposes provided by deleted text end new text begin as
specified in new text end subdivision deleted text begin 2, paragraph (a), deleted text end new text begin 2a; and
new text end

new text begin (2) to the commissioner for new text end debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and
payments under any agreements entered into under subdivision 2, paragraph deleted text begin (e) deleted text end new text begin (d) new text end , each
as permitted by state and federal law deleted text begin , and such proceeds may be granted, loaned, or
otherwise provided for the public purposes provided by subdivision 2, paragraph (a) deleted text end .

new text begin (b) The proceeds of appropriation bonds issued under subdivision 2b and interest
credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated
as follows:
new text end

new text begin (1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers
Board for payment of capital expenses as specified in subdivision 2b; and
new text end

new text begin (2) to the commissioner for debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and
payments under any agreements entered into under subdivision 2, paragraph (d), each as
permitted by state and federal law.
new text end

Subd. 8.

Appropriation for debt service and other purposes.

new text begin (a) new text end An amount, up
to $1,351,000 needed to pay principal and interest on appropriation bonds issued under
deleted text begin this section deleted text end new text begin subdivision 2a new text end is appropriated each fiscal year from the general fund to the
commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
otherwise pursuant to subdivision 6, for deposit into the bond payments account established
for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.

new text begin (b) An amount up to $855,000 needed to pay principal and interest on appropriation
bonds issued under subdivision 2b is appropriated each fiscal year from the general fund to
the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
otherwise pursuant to subdivision 6, for deposit into the bond payments account established
for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.
new text end

Subd. 9.

Waiver of immunity.

The waiver of immunity by the state provided for
by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any
ancillary contracts to which the commissioner is a party.

Sec. 2.

Minnesota Statutes 2014, section 85.34, subdivision 1, is amended to read:

Subdivision 1.

Upper bluff; lease terms.

The commissioner of natural resources
with the approval of the Executive Council may lease for purposes of restoration,
preservation, historical, recreational, educational, and commercial use and development,
that portion of Fort Snelling State Park known as the upper bluff consisting of officer's
row, area J, the polo grounds, the adjacent golf course, and all buildings and improvements
located thereon, all lying within an area bounded by Minneapolis-St. Paul International
Airport, Trunk Highways numbered 5 and 55, and Bloomington Road. The lease or leases
shall be in a form approved by the attorney general and for a term of not to exceed 99
years. The lease or leases may provide for the provision of capital improvements or other
performance by the tenant or tenants in lieu of all or some of the payments of rent that
would otherwise be required. new text begin Notwithstanding the continuing ownership of the upper bluff
by the state, any lease of one or more buildings improved with state general obligation
bond proceeds that exceeds 50 years shall be treated as a sale of the buildings for purposes
of section 16A.695, subdivision 3. Any disposition proceeds payable to the commissioner
upon execution of any lease relating to state bond financed buildings at the upper bluff
shall be applied in accordance with the requirements of section 16A.695, subdivision 3,
and used to pay, redeem, or defease state general obligation bonds issued for purposes of
improving those buildings. Any lease revenues paid to the commissioner subsequent to
the payment, redemption, or defeasance of state general obligation bonds shall be used
by the commissioner as further described in this section.
new text end

Sec. 3.

Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:

Subdivision 1.

Grant program established; purpose.

(a) The commissioner shall
make grants to counties or cities to provide up to 50 percent of the capital costs of public
infrastructure necessary for an eligible economic development project. The county or city
receiving a grant must provide for the remainder of the costs of the project, either in cash
or in kind. In-kind contributions may include the value of site preparation other than the
public infrastructure needed for the project.

(b) The purpose of the grants made under this section is to keep or enhance jobs in
the area, increase the tax base, or to expand or create new economic development.

new text begin (c) In awarding grants under this section, the commissioner must adhere to the
criteria under subdivision 4.
new text end

new text begin (d) If the commissioner awards a grant for less than 50 percent of the project, the
commissioner shall provide the applicant and the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over economic
development finance a written explanation of the reason less than 50 percent of the capital
costs were awarded in the grant.
new text end

Sec. 4.

Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:

Subd. 6.

Maximum grant amount.

A county or city may receive no more than
deleted text begin $1,000,000 deleted text end new text begin $2,000,000 new text end in two years for one or more projects.

Sec. 5.

Minnesota Statutes 2014, section 174.52, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Trunk highway corridor projects deleted text end new text begin Local cost-share assistance new text end account.

A deleted text begin trunk highway corridor projects deleted text end new text begin local cost-share assistance new text end account is established in
the local road improvement fund. Money in the account is annually appropriated to the
commissioner of transportation for expenditure as specified in this section. Money in the
account must be used as grants or loans to statutory or home rule charter cities, towns, and
counties to assist in paying the local share of trunk highway projects that have local costs
that are directly or partially related to the trunk highway improvement and that are not
funded or are only partially funded with other state and federal funds. deleted text begin The commissioner
shall determine the amount of the local share of costs eligible for assistance from the
account.
deleted text end

Sec. 6.

new text begin [219.016] HAZARDOUS MATERIALS RAIL SAFETY ACCOUNT AND
GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin A hazardous materials rail safety program is established for
the purpose of reducing the risks associated with transporting hazardous material by rail.
new text end

new text begin Subd. 2. new text end

new text begin Creation of account. new text end

new text begin A hazardous materials rail safety program account is
established in the bond proceeds fund. Money in the account may only be used for capital
costs associated with planning, engineering, administration, and construction of public
highway-rail grade crossing improvements on rail corridors transporting crude oil and
other hazardous materials. Improvements may include upgrades to existing protection
systems, the closing of crossings and necessary roadwork, and reconstruction of at-grade
crossings to full grade separations.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The commissioner may approve grants for financial assistance to
eligible applicants for capital costs associated with hazardous materials rail safety projects
on public highway-rail grade crossings. Qualifying capital costs include, but are not
limited to, upgrades to existing protection systems, the closing of crossings and necessary
roadwork, and reconstruction of at-grade crossings to full grade separations.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin Counties, statutory or home rule charter cities, or
towns that are responsible for establishing and maintaining public highway-rail grade
crossings on rail corridors transporting crude oil and other hazardous materials may apply
to the commissioner for financial assistance for the purposes in this section.
new text end

new text begin Subd. 5. new text end

new text begin Criteria for grant award. new text end

new text begin The commissioner shall consider the following
criteria to evaluate applications for a grant award for a hazardous materials rail safety
project:
new text end

new text begin (1) whether the crossing was identified as a potential candidate for grade separation
in MnDOT's crude by rail grade crossing study (Improvements to Highway Grade
Crossings and Rail Safety, December 2014);
new text end

new text begin (2) roadway traffic volumes and speeds;
new text end

new text begin (3) train volumes and speeds;
new text end

new text begin (4) adjacent land use;
new text end

new text begin (5) crash history;
new text end

new text begin (6) use of the crossing by emergency vehicles;
new text end

new text begin (7) use of the crossing by vehicles carrying hazardous materials;
new text end

new text begin (8) local financial contributions to the project; and
new text end

new text begin (9) private financial contributions to the project.
new text end

Sec. 7.

Minnesota Statutes 2014, section 446A.072, is amended to read:

446A.072 deleted text begin WASTEWATER deleted text end new text begin WATER new text end INFRASTRUCTURE FUNDING
PROGRAM.

Subdivision 1.

Establishment of program.

The authority will establish a
deleted text begin wastewater deleted text end new text begin water new text end infrastructure funding program to provide supplemental assistance to
governmental units receiving funding through the clean water revolving fund program new text begin , the
drinking water revolving fund program, new text end or the United States Department of Agriculture
Rural Economic and Community Development's (USDA/RECD) Water and Waste
Disposal Loans and Grants program for the predesign, design, and construction of
municipal wastewater deleted text begin treatment deleted text end new text begin and drinking water new text end systems, including purchase of land
and easements. The purpose of the program is to assist governmental units demonstrating
financial need to build cost-effective projects to address existing environmental or public
health problems. To implement the program, the authority shall establish a deleted text begin wastewater
deleted text end new text begin water new text end infrastructure fund to provide grants deleted text begin and loans deleted text end for the purposes authorized under
title VI of the Federal Water Pollution Control Act new text begin and the federal Safe Drinking Water
Act new text end . The fund shall be credited with all investment income from the fund and all
repayments of loans, grants, and penalties.

Subd. 3.

Program administration.

(a) The authority shall provide supplemental
assistance, as provided in subdivision 5a to governmental units:

(1) whose projects are listed on the Pollution Control Agency's project priority list new text begin or
the commissioner of health's project priority list new text end ;

(2) that demonstrate their projects are a cost-effective solution to an existing
environmental or public health problem; and

(3) whose projects are approved by the USDA/RECD or certified by the
commissioner of the Pollution Control Agency new text begin or the commissioner of health new text end .

(b) For a governmental unit receiving grant funding from the USDA/RECD,
applications must be made to the USDA/RECD with additional information submitted to
the authority as required by the authority. Eligible project costs and affordability criteria
shall be determined by the USDA/RECD.

(c) For a governmental unit not receiving grant funding from the USDA/RECD,
application must be made to the authority on forms prescribed by the authority for the
clean water revolving fund program new text begin or the drinking water revolving fund program new text end with
additional information as required by the authority. In accordance with section 116.182,
the Pollution Control Agency new text begin or the commissioner of health new text end shall:

(1) calculate the essential project component percentage new text begin based on the portion of
project costs necessary to convey or treat the existing wastewater flows and loadings or,
for drinking water projects, to provide safe drinking water to meet existing needs, new text end which
must be multiplied by the total project cost to determine the eligible project cost new text begin for the
program under this section new text end ; and

(2) review and certify approved projects to the authority.

(d) Each fiscal year the authority shall make funds available for projects based on
their ranking on the Pollution Control Agency's project priority list new text begin or the commissioner
of health's project priority list new text end . The authority shall reserve funds for a project when
the applicant receives a funding commitment from the United States Department of
Agriculture Rural Development (USDA/RECD) or deleted text begin submits plans and specifications to deleted text end new text begin
the project is certified by new text end the Pollution Control Agency new text begin or the commissioner of health new text end .
Funds must be reserved in an amount based on the project cost estimate submitted to the
authority deleted text begin prior to the appropriation of the funds and awarded based on the lesser of that
amount or the as-bid cost deleted text end new text begin when the project is certified or the as-bid cost, whichever is less new text end .

Subd. 5a.

Type and amount of assistance.

(a) For a governmental unit receiving
grant funding from the USDA/RECD, the authority may provide assistance in the form
of a grant of up to 65 percent of the eligible grant need determined by USDA/RECD. A
governmental unit may not receive a grant under this paragraph for more than deleted text begin $4,000,000
deleted text end new text begin $5,000,000 new text end per project or deleted text begin $15,000 deleted text end new text begin $20,000 new text end per existing connection, whichever is less,
unless specifically approved by law.

(b) For a governmental unit receiving a loan from the clean water revolving fund
under section 446A.07, the authority may provide assistance under this section in the form
of a grant if the average annual residential wastewater system cost after completion of the
project would otherwise exceed 1.4 percent of the median household income of the project
service area. In determining whether the average annual residential wastewater system
cost would exceed 1.4 percent, the authority must consider the total costs associated with
building, operating, and maintaining the wastewater system, including existing wastewater
debt service, debt service on the eligible project cost, and operation and maintenance
costs. Debt service costs for the proposed project are calculated based on the maximum
loan term permitted for the clean water revolving fund loan under section 446A.07,
subdivision 7. The amount of the grant is equal to 80 percent of the amount needed to
reduce the average annual residential wastewater system cost to 1.4 percent of median
household income in the project service area, to a maximum of deleted text begin $4,000,000 deleted text end new text begin $5,000,000 new text end per
project or deleted text begin $15,000 deleted text end new text begin $20,000 new text end per existing connection, whichever is less, unless specifically
approved by law. The eligible project cost is determined by multiplying the total project
costs minus any other grants by the essential project component percentage calculated
under subdivision 3, paragraph (c), clause (1). In no case may the amount of the grant
exceed 80 percent of the eligible project cost.

new text begin (c) For a governmental unit receiving a loan from the drinking water revolving
fund under section 446A.081, the authority may provide assistance under this section in
the form of a grant if the average annual residential drinking water system cost after
completion of the project would otherwise exceed 1.2 percent of the median household
income of the project service area. In determining whether the average annual residential
drinking water system cost would exceed 1.2 percent, the authority must consider the total
costs associated with building, operating, and maintaining the drinking water system,
including existing drinking water debt service, debt service on the eligible project cost,
and operation and maintenance costs. Debt service costs for the proposed project are
calculated based on the maximum loan term permitted for the drinking water revolving
fund loan under section 446A.081, subdivision 8, paragraph (c). The amount of the grant
is equal to 80 percent of the amount needed to reduce the average annual residential
drinking water system cost to 1.2 percent of median household income in the project
service area, to a maximum of $5,000,000 per project or $20,000 per existing connection,
whichever is less, unless specifically approved by law. The eligible project cost is
determined by multiplying the total project costs minus any other grants by the essential
project component percentage calculated under subdivision 3, paragraph (c), clause (1). In
no case may the amount of the grant exceed 80 percent of the eligible project cost.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end Notwithstanding the limits in paragraphs (a) deleted text begin and deleted text end new text begin , new text end (b), new text begin and (c), new text end for a
governmental unit receiving supplemental assistance under this section after January 1,
2002, if the authority determines that the governmental unit's construction and installation
costs are significantly increased due to geological conditions of crystalline bedrock or karst
areas and discharge limits that are more stringent than secondary treatment, the maximum
award under this section shall not be more than $25,000 per existing connection.

deleted text begin Subd. 5b. deleted text end

deleted text begin Special assessment deferral. deleted text end

deleted text begin A governmental unit receiving a loan
under subdivision 5a that levies special assessments to repay the loan under subdivision
5a or section 446A.07 may defer payment of such assessments under the provisions of
sections 435.193 to 435.195.
deleted text end

Subd. 6.

Disbursements.

Disbursements of grants deleted text begin or loans deleted text end awarded under this
section by the authority to recipients must be made for eligible project costs as incurred by
the recipients, and must be made by the authority in accordance with the project financing
agreement and applicable state and federal laws and rules governing the payments.

deleted text begin Subd. 7. deleted text end

deleted text begin Loan repayments. deleted text end

deleted text begin Notwithstanding the limitations set forth in section
475.54, subdivision 1, this subdivision shall govern the maturities and mandatory sinking
fund redemptions of the loans under this section. A governmental unit receiving a loan
under this section shall repay the loan in semiannual payment amounts determined by
the authority. The payment amount must be based on the average payments on the
governmental unit's clean water revolving fund loan or, if greater, the minimum amount
required to fully repay the loan by the maturity date. Payments must begin within one year
of the date of the governmental unit's final payment on the clean water revolving fund
loan. The final maturity date of the loan under this section must be no later than 20 years
from the date of the first payment on the loan under this section and no later than 40 years
from the date of the first payment on the clean water revolving fund loan.
deleted text end

Subd. 8.

Eligibility.

A governmental unit is eligible for assistance under this section
only after applying for grant funding from other sources and funding has been obtained,
rejected, or the authority has determined that the potential funding is unlikely.

Subd. 9.

Funding limitation.

Supplemental assistance may not be used to reduce
the deleted text begin sewer deleted text end service charges of a significant deleted text begin wastewater contributor deleted text end new text begin industrial user that has a
separate service charge agreement with the recipient new text end , or a single user that has caused the
need for the project or whose current or projected deleted text begin flow and load exceed deleted text end new text begin usage exceeds
new text end one-half of the current wastewater deleted text begin treatment plant's deleted text end new text begin or drinking water system new text end capacity.

Subd. 11.

Report on needs.

By February 1 of each even-numbered year, the
authority, in conjunction with the Pollution Control Agency new text begin and the commissioner of
health new text end , shall prepare a report to the Finance Division of the senate Environment and
Natural Resources Committee and the house of representatives Environment and Natural
Resources Finance Committee on wastewater new text begin and drinking water new text end funding assistance needs
of governmental units under this section.

Subd. 12.

System replacement fund.

Each governmental unit receiving a deleted text begin loan or
deleted text end grant under this section shall establish a system replacement fund and shall annually
deposit a minimum of $.50 per 1,000 gallons of flow for major rehabilitation deleted text begin or deleted text end new text begin , new text end expansion new text begin ,
or replacement new text end of the deleted text begin treatment deleted text end new text begin wastewater or drinking water new text end system deleted text begin , or replacement of
the treatment system at the end of its useful life deleted text end . Money must remain in the account for the
life of the new text begin corresponding project new text end loan from the authority or USDA/RECD, unless use of
the fund is approved in writing by the authority for major rehabilitation, expansion, or
replacement of the deleted text begin treatment deleted text end new text begin wastewater or drinking water new text end system. By March 1 each year
during the life of the loan, each recipient shall submit a report to the authority regarding
the amount deposited and the fund balance for the prior calendar year. new text begin A recipient is not
required to maintain a fund balance greater than the amount of the grant received. new text end Failure
to comply with the requirements of this subdivision shall result in the authority assessing a
penalty fee to the recipient equal to one percent of the supplemental assistance amount for
each year of noncompliance. deleted text begin Failure to make the required deposit or pay the penalty fee as
required constitutes a default on the loan.
deleted text end

Subd. 14.

Consistency with land use plans.

A governmental unit applying for a
project in an unsewered area shall include in its application to the authority a certification
from the county in which the project is located that:

(1) the project is consistent with the county comprehensive land use plan, if the
county has adopted one;

(2) the project is consistent with the county water plan, if the county has adopted
one; and

(3) the county has adopted specific land use ordinances or controls so as to meet or
exceed the requirements of Minnesota Rules, part 7080.0305.

Sec. 8.

Minnesota Statutes 2014, section 446A.073, as amended by Laws 2015, First
Special Session chapter 4, article 4, sections 127, 128, and 129, is amended to read:

446A.073 POINT SOURCE IMPLEMENTATION GRANTS.

Subdivision 1.

Program established.

When money is appropriated for grants
under this program, the authority shall award grants up to a maximum of deleted text begin $3,000,000
deleted text end new text begin $7,000,000 new text end to governmental units to cover deleted text begin up to one-half deleted text end new text begin 80 percent of new text end the cost of water
infrastructure projects made necessary by:

(1) a wasteload reduction prescribed under a total maximum daily load plan required
by section 303(d) of the federal Clean Water Act, United States Code, title 33, section
1313(d);

(2) a phosphorus concentration or mass limit which requires discharging one
milligram per liter or less at permitted design flow which is incorporated into a permit
issued by the Pollution Control Agency;

(3) any other water quality-based effluent limit established under section 115.03,
subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the
Pollution Control Agency that exceeds secondary treatment limits; or

(4) a total nitrogen new text begin concentration or mass new text end limit deleted text begin of deleted text end new text begin that requires discharging new text end ten
milligrams per liter or less deleted text begin for a land-based treatment system deleted text end new text begin at permitted design flow new text end .

Subd. 2.

Grant application.

Application for a grant must be made to the authority
on forms prescribed by the authority deleted text begin for the total maximum daily load grant program, with
additional information as required by the authority deleted text end , including a project schedule and cost
estimate for the work necessary to comply with the deleted text begin point source wasteload allocation
deleted text end new text begin requirements listed in subdivision 1 new text end . The Pollution Control Agency shall deleted text begin :
deleted text end

deleted text begin (1) in accordance with section 116.182, calculate the essential project component
percentage, which must be multiplied by the total project cost to determine the eligible
project cost; and
deleted text end

deleted text begin (2) deleted text end review and certify to the authority those projects that have plans and
specifications approved under section 115.03, subdivision 1, paragraph (f).

Subd. 3.

Project priorities.

deleted text begin When money is appropriated for grants under this
program, deleted text end The authority shall accept applications new text begin under this program new text end during the month of
July and reserve money for projects expected to proceed with construction by the end of
the fiscal year in the order listed on the Pollution Control Agency's project priority list and
in an amount based on the cost estimate submitted to the authority in the grant application
or the as-bid costs, whichever is less. Notwithstanding Minnesota Rules, chapter 7077,
the Pollution Control Agency may rank a drinking water infrastructure project on the
agency's project priority list if the project is necessary to meet an applicable requirement
in subdivision 1.

Subd. 4.

Grant approval.

The authority must make a grant for an eligible project
only after:

(1) the applicant has submitted the as-bid cost for the water infrastructure project;

(2) the Pollution Control Agency has approved the as-bid costs and certified the
grant eligible portion of the project; and

(3) the authority has determined that the additional financing necessary to complete
the project has been committed from other sources.

Subd. 5.

Grant disbursement.

Disbursement of a grant must be made for eligible
project costs as incurred by the governmental unit and in accordance with a project
financing agreement and applicable state and federal laws and rules governing the
payments.

Sec. 9.

Minnesota Statutes 2014, section 446A.081, subdivision 9, is amended to read:

Subd. 9.

Other uses of fund.

(a) The drinking water revolving loan fund may be
used as provided in the act, including the following uses:

(1) to buy or refinance the debt obligations, at or below market rates, of public water
systems for drinking water systems, where the debt was incurred after the date of enactment
of the act, for the purposes of construction of the necessary improvements to comply with
the national primary drinking water regulations under the federal Safe Drinking Water Act;

(2) to purchase or guarantee insurance for local obligations to improve credit market
access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and
interest on revenue or general obligation bonds issued by the authority if the bond
proceeds are deposited in the fund;

(4) to provide loans or loan guarantees for similar revolving funds established by a
governmental unit or state agency;

(5) to earn interest on fund accounts;

(6) to pay the reasonable costs incurred by the authority, the Department of
Employment and Economic Development, and the Department of Health for conducting
activities as authorized and required under the act up to the limits authorized under the act;

(7) to develop and administer programs for water system supervision, source water
protection, and related programs required under the act;

(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal
forgiveness or grants to the extent permitted under the federal Safe Drinking Water Act
and other federal law new text begin , based on the criteria and requirements established for drinking
water projects under the water infrastructure funding program under section 446A.072 new text end ;

(9) to provide loans, principal forgiveness or grants to the extent permitted under the
federal Safe Drinking Water Act and other federal law to address green infrastructure, water
or energy efficiency improvements, or other environmentally innovative activities; and

(10) to provide principal forgiveness, or grants for 50 percent of the project cost up
to a maximum of $10,000 for projects needed to comply with national primary drinking
water standards for an existing community or noncommunity public water system.

deleted text begin (b) Principal forgiveness or grants under paragraph (a), clause (8), must only be
provided if the average annual residential drinking water system cost after completion of
the project would otherwise exceed 1.2 percent of the median household income in the
project service area. In determining whether the average annual residential drinking
water system cost would exceed 1.2 percent, the authority must consider the total costs
associated with building, operating, and maintaining the drinking water system, including
debt service and operation and maintenance costs. Debt service costs for the proposed
project must be calculated based on the maximum loan term permitted for the drinking
water revolving fund loan under this section. The amount of the principal forgiveness or
grant must be equal to 80 percent of the amount needed to reduce the average annual
residential drinking water system cost to 1.2 percent of median household income in the
project service area, to a maximum of $4,000,000 or $15,000 per connection, whichever is
less, and not to exceed 80 percent of the total project cost.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Principal forgiveness or grants provided under paragraph (a), clause (9), may
not exceed 25 percent of the eligible project costs as determined by the Department of
Health for project components directly related to green infrastructure, water or energy
efficiency improvements, or other environmentally innovative activities, up to a maximum
of $1,000,000.

deleted text begin (d) The authority may reduce the percentage of median household income at which a
loan term could extend to 30 years under subdivision 8, paragraph (c), and at which
principal forgiveness or grants could be provided under paragraph (b) if it determines that
the federal money allotted to the state cannot be fully utilized without the reduction. If it
determines that the reduction is necessary to fully utilize the federal money, the authority
must effect the change through its approval of the annual intended use plan.
deleted text end

Sec. 10.

Minnesota Statutes 2014, section 446A.12, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

The authority may issue negotiable bonds in a
principal amount that the authority determines necessary to provide sufficient funds for
achieving its purposes, including the making of loans and purchase of securities, the
payment of interest on bonds of the authority, the establishment of reserves to secure its
bonds, the payment of fees to a third party providing credit enhancement, and the payment
of all other expenditures of the authority incident to and necessary or convenient to carry
out its corporate purposes and powers, but not including the making of grants. Bonds of
the authority may be issued as bonds or notes or in any other form authorized by law.
The principal amount of bonds issued and outstanding under this section at any time
may not exceed deleted text begin $1,500,000,000 deleted text end new text begin $2,000,000,000 new text end , excluding bonds for which refunding
bonds or crossover refunding bonds have been issued, and excluding any bonds issued
for the credit enhanced bond program or refunding or crossover refunding bonds issued
under the program. The principal amount of bonds issued and outstanding under section
446A.087, may not exceed $500,000,000, excluding bonds for which refunding bonds or
crossover refunding bonds have been issued.

Sec. 11.

Minnesota Statutes 2014, section 462A.37, is amended by adding a
subdivision to read:

new text begin Subd. 2c. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in
subdivisions 2, 2a, and 2b, the agency may issue up to $35,000,000 in housing infrastructure
bonds in one or more series to which the payments under this section may be pledged.
new text end

Sec. 12.

Minnesota Statutes 2015 Supplement, section 462A.37, subdivision 5, is
amended to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on
each series of bonds issued under subdivisions 2a deleted text begin and deleted text end new text begin , new text end 2b new text begin , and 2c new text end .

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$6,400,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$800,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.

new text begin (d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$2,400,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The agency may pledge to the payment of the housing infrastructure bonds
the payments to be made by the state under this section.

Sec. 13.

Laws 2002, chapter 393, section 22, subdivision 6, as amended by Laws 2005,
chapter 20, article 1, section 43, and Laws 2013, chapter 136, section 10, is amended to
read:

Subd. 6. Fergus Falls Regional Treatment Center

3,000,000

To design, renovate, construct, furnish,
and equip ancillary support and program
facilities, including improvements to basic
infrastructure, such as sanitary and storm
sewer and water lines, public streets,
curb, gutter, street lights, or sidewalks, to
make improvements for building envelope
and structural integrity for the purposes
of stabilizing the buildings for sale, for
hazardous materials abatement, and for
demolition of all or portions of surplus,
nonfunctional, or deteriorated facilities
and infrastructure or to renovate surplus,
nonfunctional, or deteriorated facilities and
infrastructure to facilitate the redevelopment
of the Fergus Falls Regional Treatment
Center campus. If the property is sold or
transferred to a local unit of government, the
unspent portion of this appropriation may be
granted to the local unit of government that
acquires the campus for the purposes stated
in this subdivision.

Notwithstanding Minnesota Statutes, section
16A.642, the bond sale authorization and
appropriation of bond proceeds in this
subdivision are available until December 31,
deleted text begin 2016 deleted text end new text begin 2018 new text end .

Sec. 14.

Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:

Subd. 3. Dam Repair, Reconstruction, and Removal

3,000,000

To renovate or remove publicly owned dams.
The commissioner shall determine project
priorities as appropriate under Minnesota
Statutes, sections 103G.511 and 103G.515. new text begin
Notwithstanding the match requirements
in Minnesota Statutes, section 103G.511,
a grant to the city of Lanesboro does not
require any nonstate match.
new text end

Sec. 15.

Laws 2014, chapter 294, article 1, section 7, subdivision 15, is amended to read:

Subd. 15. Grant County Trail Grant

100,000

For a grant to Grant County for predesign,
acquisition, deleted text begin and deleted text end new text begin or new text end improvements for a trail
from the city of Elbow Lake to Pomme de
Terre Lake. The commissioner of natural
resources may allocate any amount not
needed to complete this project to state
trail acquisition and improvements under
Minnesota Statutes, section 85.015.

Sec. 16.

Laws 2014, chapter 294, article 1, section 17, subdivision 6, is amended to read:

Subd. 6. Inver Grove Heights - Heritage Village Park

2,000,000

new text begin $1,500,000 of this appropriation is new text end for a
grant to the city of Inver Grove Heights new text begin
and $500,000 of this appropriation is for a
grant to Dakota County. This appropriation
is new text end for public infrastructure improvements
and land acquisition in and adjacent to the
Heritage Village Park, the Mississippi River
Trail, and the Rock Island Swing Bridge.
These improvements will include but are
not limited to motor vehicle access, utility
service, stormwater treatment, and trail and
sidewalk connections. This appropriation
is not available until the commissioner of
management and budget has determined that
at least an equal amount has been committed
to the project from nonstate sources.

Sec. 17.

Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to
read:

Subd. 12. West St. Paul - deleted text begin North Urban deleted text end new text begin River to River new text end Regional deleted text begin Trail Bridge deleted text end new text begin Greenway new text end

2,000,000

For a grant to the city of West St. Paul to
predesign, design, and construct a deleted text begin pedestrian
bridge for the North Urban Regional Trail
as an overpass deleted text end new text begin grade separated crossing new text end of
Robert Street in the area near Wentworth
Avenue in West St. Paul new text begin for the River to River
Regional Greenway new text end . This appropriation may
also be used to acquire property or purchase
rights-of-way needed for deleted text begin bridge deleted text end construction.
A nonstate match is not required.

Sec. 18.

Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision
3, is amended to read:

Subd. 3. Local Road Improvement Fund Grants

8,910,000

(a) From the bond proceeds account in
the state transportation fund as provided
in Minnesota Statutes, section 174.50, for
construction and reconstruction of local
roads with statewide or regional significance
under Minnesota Statutes, section 174.52,
subdivision 4, or for grants to counties to
assist in paying the costs of rural road safety
capital improvement projects on county
state-aid highways under Minnesota Statutes,
section 174.52, subdivision 4a.

(b) This appropriation includes $850,000 for
a grant to the city of Sandstone for predesign,
design, engineering, and construction of a
road extending south off of marked Trunk
Highway 23 across from Lundorff Drive
to the airport area, and including a bridge
over Skunk Creek in Sandstone, in order to
facilitate repurposing of an area of the airport
into a business park. This appropriation
is not available until the commissioner of
management and budget determines that
sufficient resources to complete the project
are committed to it from other sources,
including any funds made available from the
commissioner of transportation.

(c) This appropriation includes $3,770,000
for a grant to Kandiyohi County for
construction and reconstruction of local
roads to facilitate the construction of
highway-rail grade separations at deleted text begin U.S.
Highway 12 and Minnesota Highway 40
as part of deleted text end new text begin one or more of the following
highway-rail intersections associated with
new text end the Willmar Wye project new text begin : U.S. Highway 12,
marked Trunk Highway 40, and Kandiyohi
County State-Aid Highway 55 new text end .

Sec. 19. new text begin NATIONAL SPORTS CENTER; LEASE.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 16A.695, 16B.24, and 240A.03,
subdivision 6, the Minnesota Amateur Sports Commission may lease for educational
purposes that portion of property described as a portion of the property acquired by the
commission pursuant to Laws 1987, chapter 400, section 8, subdivision 3, not currently
needed for amateur sports purposes to Independent School District No. 16, Spring Lake
Park. The lease shall be in a form approved by the attorney general and for a term not
to exceed 99 years. The lease may provide for the provision of capital improvements or
other performance by the tenant in lieu of all or some of the payments of rent that would
otherwise be required. Any lease revenues paid to the commission are appropriated to
the commission.
new text end

Sec. 20. new text begin REPORT ON FUTURE OF GLENSHEEN.
new text end

new text begin The Board of Regents of the University of Minnesota must develop a plan for the
future of Glensheen, the historic Congdon estate in Duluth, in cooperation and consultation
with the city of Duluth, the Minnesota Historical Society, and other interested parties. The
plan must address facility ownership, a multiphased asset renewal plan, programmatic
operations, and cultural interpretation. The plan must be submitted by January 16, 2017,
to the chairs and ranking minority members of the legislative committees with jurisdiction
over higher education policy and finance, and capital investment, and as provided in
Minnesota Statutes, section 3.195.
new text end

Sec. 21. new text begin COMMISSIONER OF ADMINISTRATION REPORT - FUNDING
FOR ASSET PRESERVATION.
new text end

new text begin Subdivision 1. new text end

new text begin Report. new text end

new text begin By November 15, 2016, the commissioner of administration
shall report to the chairs and ranking minority members of the committees in the senate
with jurisdiction over finance and capital investment and in the house of representatives
with jurisdiction over ways and means and capital investment, with recommendations for
sustainable, reliable, predictable funding for preservation of capital assets owned by
agencies.
new text end

new text begin Subd. 2. new text end

new text begin Funding options and approaches. new text end

new text begin The report shall assess the feasibility of
implementing the following options and may include evaluation of other feasible options:
new text end

new text begin (1) establishing a standing appropriation from the general fund to pay a portion of
certified asset preservation needs;
new text end

new text begin (2) establishing a standing appropriation from the bond proceeds fund, and
authorizing the sale of general obligation bonds, to pay a portion of certified asset
preservation needs;
new text end

new text begin (3) dedicating a specified portion of fees collected by agencies to use for asset
preservation; and
new text end

new text begin (4) shifting asset preservation from the capital budget to the operating budget so that
asset preservation is built into the base budget.
new text end

new text begin Evaluations should include a comparison to current law and practice.
new text end

new text begin Subd. 3. new text end

new text begin Demolition. new text end

new text begin The report shall evaluate whether the metrics and process
used by each agency to recommend demolition of capital assets are comprehensive enough
to reflect what is in the best interest of the state.
new text end

new text begin Subd. 4. new text end

new text begin Definition. new text end

new text begin "Agencies" as used in this section means all executive branch
agencies, the Board of Regents of the University of Minnesota, and the Board of Trustees
of Minnesota State Colleges and Universities.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 123A.446, new text end new text begin is repealed.
new text end

Sec. 23. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this article is effective the day following final
enactment.
new text end

ARTICLE 4

RAIL TRANSPORTATION

Section 1.

Minnesota Statutes 2014, section 13.6905, is amended by adding a
subdivision to read:

new text begin Subd. 34. new text end

new text begin Oil and other hazardous substances transportation data. new text end

new text begin Certain
data on oil and other hazardous substances transportation by railroads are governed by
section 219.925, subdivision 7.
new text end

Sec. 2.

Minnesota Statutes 2014, section 13.7411, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Prevention and response plans. new text end

new text begin Certain data on prevention and response
plans are governed by section 115E.042, subdivision 7.
new text end

Sec. 3.

Minnesota Statutes 2014, section 115E.042, is amended to read:

115E.042 PREPAREDNESS AND RESPONSE FOR CERTAIN RAILROADS.

Subdivision 1.

Application.

In addition to the requirements of section 115E.04,
a person who owns or operates railroad car rolling stock transporting a unit train must
comply with this section.

Subd. 2.

Training.

(a) Each railroad must offer training to each fire department new text begin ,
and each local organization for emergency management under section 12.25, new text end having
jurisdiction along the deleted text begin route of unit trains deleted text end new text begin routes over which oil and other hazardous
substances are transported new text end . deleted text begin Initial training under this subdivision must be offered to each
fire department by June 30, 2016, and deleted text end Refresher training must be offered to each fire
department new text begin and local organization for emergency management new text end at least once every three
years deleted text begin thereafter deleted text end new text begin after initial training under this subdivision new text end .

(b) The training must address deleted text begin the general hazards of oil and hazardous substances,
techniques to assess hazards to the environment and to the safety of responders and the
public, factors an incident commander must consider in determining whether to attempt to
suppress a fire or to evacuate the public and emergency responders from an area, and other
strategies for initial response by local emergency responders. The training must include
suggested protocol or practices for local responders to safely accomplish these tasks deleted text end new text begin
identification of rail cars and their hazardous substance contents, responder safety issues,
rail response tactics, public evacuation considerations, environmental contamination
response, coordination of railroad response personnel and resources at an incident, and
other protocols and practices for safe initial local response new text end .

Subd. 3.

new text begin Emergency response planning; new text end coordination.

deleted text begin Beginning June 30, 2015, deleted text end new text begin
(a) new text end Each railroad must communicate at least annually with each deleted text begin county or city deleted text end emergency
manager, new text begin security qualified new text end safety representatives of railroad employees governed by the
Railway Labor Act, and a senior fire department officer of each fire department having
jurisdiction along the deleted text begin route of a unit train deleted text end new text begin routes over which oil and other hazardous
substances are transported new text end , to new text begin :
new text end

new text begin (1) new text end ensure coordination of emergency response activities between the railroad and
local responders new text begin ;
new text end

new text begin (2) upon request, assist emergency managers to identify and assess local rail-specific
threats, hazards, and risks; and
new text end

new text begin (3) obtain information from emergency managers regarding specific local natural
and technical hazards and threats in the local area that may impact rail operations or
public safety new text end .

new text begin (b) The coordination under paragraph (a), clauses (2) and (3), must include
identification of increased risks and potential special responses due to high population
concentration, critical local infrastructure, key facilities, significant venues, or sensitive
natural environments.
new text end

new text begin (c) The commissioner of public safety shall compile and make available to railroads
a listing of emergency managers and fire chiefs, which must include contact information.
new text end

Subd. 4.

Response capabilities; time limits.

(a) Following confirmation of a
discharge, a railroad must deliver and deploy sufficient equipment and trained personnel
to new text begin (1) new text end contain and recover discharged oil or hazardous substances new text begin , new text end and new text begin (2) new text end to protect the
environment and new text begin assist local new text end public safety new text begin officials new text end .

(b) new text begin Within 15 minutes of the arrival of local emergency responders on the scene of a
rail incident involving oil or other hazardous substances, a railroad must assist the incident
commander in determining the nature of hazardous substances known to have been released
and hazardous substances transported on the train, by providing information that includes
the chemical content of the hazardous substances, contact information for the shipper, and
instructions for dealing with release of the material. A railroad may provide information
through the train orders on board the train, facsimile, or electronic transmission.
new text end

new text begin (c) new text end Within one hour of confirmation of a discharge, a railroad must provide a
qualified company deleted text begin employee deleted text end new text begin representative new text end to advise the incident commander new text begin , help
assess the situation, initiate railroad response actions as needed, and provide advice and
recommendations to the incident commander regarding the response new text end . The employee may
be made available by telephone, and must be authorized to deploy all necessary response
resources of the railroad.

deleted text begin (c) deleted text end new text begin (d) new text end Within three hours of confirmation of a discharge, a railroad must be capable of
delivering monitoring equipment and a trained operator to assist in protection of responder
and public safety. A plan to ensure delivery of monitoring equipment and an operator to a
discharge site must be provided each year to the commissioner of public safety.

deleted text begin (d) deleted text end new text begin (e) new text end Within three hours of confirmation of a discharge, a railroad must provide new text begin (1)
new text end qualified personnel at a discharge site to assess the discharge and to advise the incident
commander new text begin , and (2) resources to assist the incident commander with ongoing public
safety and scene stabilization new text end .

deleted text begin (e) deleted text end new text begin (f) new text end A railroad must be capable of deploying containment boom from land across
sewer outfalls, creeks, ditches, and other places where oil or hazardous substances
may drain, in order to contain leaked material before it reaches those resources. The
arrangement to provide containment boom and staff may be made by:

(1) training and caching equipment with local jurisdictions;

(2) training and caching equipment with a fire mutual-aid group;

(3) means of an industry cooperative or mutual-aid group;

(4) deployment of a contractor;

(5) deployment of a response organization under state contract; or

(6) other dependable means acceptable to the Pollution Control Agency.

deleted text begin (f) deleted text end new text begin (g) new text end Each arrangement under paragraph deleted text begin (e) deleted text end new text begin (f) new text end must be confirmed each year. Each
arrangement must be tested by drill at least once every five years.

deleted text begin (g) deleted text end new text begin (h) new text end Within eight hours of confirmation of a discharge, a railroad must be capable
of delivering and deploying containment boom, boats, oil recovery equipment, trained
staff, and all other materials needed to provide:

(1) on-site containment and recovery of a volume of oil equal to ten percent of the
calculated worst case discharge at any location along the route; and

(2) protection of listed sensitive areas and potable water intakes within one mile of
a discharge site and within eight hours of water travel time downstream in any river
or stream that the right-of-way intersects.

deleted text begin (h) deleted text end new text begin (i) new text end Within 60 hours of confirmation of a discharge, a railroad must be capable of
delivering and deploying additional containment boom, boats, oil recovery equipment,
trained staff, and all other materials needed to provide containment and recovery of a
worst case discharge and to protect listed sensitive areas and potable water intakes at any
location along the route.

Subd. 5.

deleted text begin Railroad drills deleted text end new text begin Environmental response exercises new text end .

new text begin (a) new text end Each railroad
must conduct deleted text begin at least one deleted text end oil containment, recovery, and sensitive area protection deleted text begin drill deleted text end new text begin
exercises as follows: (1) at least one tabletop exercise every year; and (2) at least one
full-scale exercise new text end every three years deleted text begin , deleted text end new text begin . Each exercise must be new text end at a location new text begin , date, new text end and
time new text begin and in the manner new text end chosen by the Pollution Control Agency, and attended by safety
representatives of railroad employees governed by the Railway Labor Act.

new text begin (b) To the extent feasible, the commissioner of the Pollution Control Agency shall
coordinate each exercise with exercises required by federal agencies.
new text end

Subd. 6.

Prevention and response plans new text begin ; requirements, submission new text end .

(a) deleted text begin By
June 30, 2015, deleted text end A railroad shall submit the prevention and response plan deleted text begin required under
section 115E.04, as necessary to comply with the requirements of this section, deleted text end to the
commissioner of the Pollution Control Agency on a form designated by the commissioner.

(b) deleted text begin By June 30 of deleted text end new text begin In new text end every third year following a plan submission under this
subdivision new text begin , or sooner as provided under section 115E.04, subdivision 2 new text end , a railroad must
update and resubmit the prevention and response plan to the commissioner.

new text begin Subd. 7. new text end

new text begin Environmental response plan data. new text end

new text begin A prevention and response plan
provided under this section is nonpublic data, as defined under section 13.02, subdivision 9.
new text end

Sec. 4.

Minnesota Statutes 2014, section 219.015, is amended to read:

219.015 STATE RAIL SAFETY deleted text begin INSPECTOR deleted text end new text begin INSPECTION PROGRAM new text end .

Subdivision 1.

Positions established; duties.

(a) The commissioner of transportation
shall establish three state rail safety inspector positions deleted text begin in the Office of Freight and
Commercial Vehicle Operations of the Minnesota Department of Transportation. On or
after July 1, 2015 deleted text end , new text begin and new text end the commissioner may establish deleted text begin a fourth deleted text end new text begin up to six new text end state rail safety
deleted text begin inspector position deleted text end new text begin inspection program positions new text end following consultation with railroad
companies. The commissioner shall apply to and enter into agreements with the Federal
Railroad Administration (FRA) of the United States Department of Transportation
to participate in the federal State Rail Safety Participation Program for training and
certification of an inspector under authority of United States Code, title 49, sections 20103,
20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.

(b) A state rail safety inspector deleted text begin shall deleted text end new text begin may new text end inspect mainline track, secondary
track, and yard and industry track; inspect railroad right-of-way, including adjacent or
intersecting drainage, culverts, bridges, overhead structures, and traffic and other public
crossings; inspect yards and physical plants; new text begin inspect train equipment; new text end review and enforce
safety requirements; review maintenance and repair records; and review railroad security
measures.

(c) A state rail safety inspector may perform, but is not limited to, the duties
described in the federal State Rail Safety Participation Program. An inspector may train,
be certified, and participate in any of the federal State Rail Safety Participation Program
disciplines, including: track, signal and train control, motive power and equipment,
operating practices compliance, hazardous materials, and highway-rail grade crossings.

(d) To the extent delegated by the Federal Railroad Administration and authorized
by the commissioner, an inspector may issue citations for violations of this chapter, or to
ensure railroad employee and public safety and welfare.

Subd. 2.

Railroad company assessment; account; appropriation.

(a) As provided
in this subdivision, the commissioner shall annually assess railroad companies that are
(1) defined as common carriers under section 218.011; (2) classified by federal law
or regulation as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II
Carriers; and (3) operating in this state.

(b) The assessment must be deleted text begin by a division of deleted text end new text begin calculated to allocate new text end state rail
safety deleted text begin inspector deleted text end new text begin inspection new text end program costs deleted text begin in equal proportion between deleted text end new text begin proportionally
among new text end carriers based on route miles operated in Minnesota deleted text begin , assessed in equal amounts
for 365 days of the calendar year deleted text end new text begin at the time of assessment new text end . The commissioner shall
deleted text begin assess deleted text end new text begin include in the assessment calculation new text end all new text begin program or additional position new text end start-up
deleted text begin or re-establishment deleted text end costs deleted text begin , deleted text end new text begin ; new text end all deleted text begin related deleted text end costs of deleted text begin initiating deleted text end the state rail safety deleted text begin inspector deleted text end new text begin
inspection new text end program, new text begin including but not limited to inspection, administration, supervision,
travel, equipment, and training; new text end and new text begin costs of new text end ongoing state rail inspector duties.

(c) The assessments new text begin collected under this subdivision new text end must be deposited in a deleted text begin special
account in the special revenue fund, to be known as the deleted text end state rail safety inspection account new text begin ,
which is established in the special revenue fund new text end . new text begin The account consists of funds as provided
by this subdivision, and any other money donated, allotted, transferred, or otherwise
provided to the account. new text end Money in the account is appropriated to the commissioner for
the establishment and ongoing responsibilities of the state rail safety deleted text begin inspector deleted text end new text begin inspection new text end
program.

Subd. 3.

Work site safety coaching program.

The commissioner may exempt a
common carrier not federally classified as Class I from violations for a period of up to
two years if the common carrier applies for participation in a work site safety coaching
program, such as the "MNSharp" program administered by the Minnesota Department of
Labor and Industry, and the commissioner determines such participation to be preferred
enforcement for safety or security violations.

Subd. 4.

Appeal.

Any person aggrieved by an assessment levied under this section
may appeal within 90 days any assessment, violation, or administrative penalty to the
Office of Administrative Hearings, with further appeal and review by the district court.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [219.925] INCIDENT EMERGENCY RESPONSE; PREPAREDNESS
AND INFORMATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Emergency manager" means the director of a local organization for emergency
management under section 12.25.
new text end

new text begin (c) "Hazardous substance" has the meaning given in Code of Federal Regulations,
title 49, section 171.8.
new text end

new text begin (d) "Incident commander" means the official who has responsibility, following
National Incident Management System guidelines, for all aspects of emergency response
operations at an incident scene, including directing and controlling resources.
new text end

new text begin (e) "Oil" has the meaning given in section 115E.01, subdivision 8.
new text end

new text begin (f) "Rail carrier" means a railroad company that is:
new text end

new text begin (1) defined as a common carrier under section 218.011;
new text end

new text begin (2) classified by federal law or regulation as Class I Railroad, Class I Rail Carrier,
Class II Railroad, Class II Carrier, Class III Railroad, or Class III Carrier; and
new text end

new text begin (3) operating in this state.
new text end

new text begin Subd. 2. new text end

new text begin Traffic review. new text end

new text begin Within ten business days of receiving a written request, a
rail carrier shall provide a traffic review to a requesting emergency manager or fire chief
having jurisdiction along the routes over which oil and other hazardous substances are
transported. The traffic review under this subdivision must include information on the
types and volumes of oil and other hazardous substance transported through the requester's
jurisdiction during the prior calendar year.
new text end

new text begin Subd. 3. new text end

new text begin Emergency response planning; information sharing. new text end

new text begin Upon written
request, a rail carrier shall provide to an emergency manager or fire chief having
jurisdiction along the routes over which oil and other hazardous substances are transported:
new text end

new text begin (1) a complete copy of prevention and response plans submitted under section
115E.042, subdivision 6; and
new text end

new text begin (2) a copy of the data and information, including risk assessment information, used
to develop the rail carrier's route analysis as required under Code of Federal Regulations,
title 49, section 172.820, or successor requirements.
new text end

new text begin Subd. 4. new text end

new text begin Emergency response planning; coordination meetings. new text end

new text begin (a) Within
30 days of receiving a written request, a rail carrier must be available to meet with a
requesting emergency manager or fire chief having jurisdiction along the routes over
which oil and other hazardous substances are transported, concerning emergency response
planning and coordination.
new text end

new text begin (b) At a meeting held under this subdivision, a rail carrier must provide:
new text end

new text begin (1) a review of the rail carrier's emergency response planning and capability,
including railroad response timelines and resources to provide (i) technical advice and
recommendations, (ii) trained response personnel, (iii) specialized equipment, and (iv) any
other available resources to support an incident commander who conducts a public safety
emergency response under the National Incident Management System; and
new text end

new text begin (2) inventory information on emergency response involving oil or other hazardous
substance, consisting of:
new text end

new text begin (i) equipment owned by the rail carrier, including equipment type and location;
new text end

new text begin (ii) response personnel of the rail carrier, including contact information and location;
and
new text end

new text begin (iii) resources available to the rail carrier through contractual agreements.
new text end

new text begin Subd. 5. new text end

new text begin Real-time emergency response information. new text end

new text begin (a) The commissioner
of public safety shall, through the Minnesota Fusion Center, receive and disseminate
emergency response information as provided under section 7302 of the FAST Act of 2015,
Public Law 114-94, and federal regulations adopted under that section.
new text end

new text begin (b) On and after July 1, 2017, all rail carriers subject to this section shall collectively
provide to emergency responders, through an Internet-based format, the information on
transportation of oil and other hazardous substances provided by rail carriers through a
wireless communications device application on the effective date of this section.
new text end

new text begin Subd. 6. new text end

new text begin Public safety response exercises. new text end

new text begin (a) Each rail carrier must conduct one
tabletop public safety emergency response exercise in each emergency management region
in which the rail carrier transports oil and other hazardous substances. The exercises must
be conducted by July 1, 2017, and July 1 every two years thereafter.
new text end

new text begin (b) Each rail carrier must conduct one full-scale exercise every four years.
new text end

new text begin (c) In a emergency management region in which more than one rail carrier operates,
the rail carriers may conduct the exercises jointly or may alternate among rail carriers
to conduct the exercise.
new text end

new text begin (d) To the extent feasible, the rail carriers shall coordinate the exercises among each
other and with exercises under section 115E.042, subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin Transportation and response planning data. new text end

new text begin Any data provided under
subdivisions 3 to 6 to an emergency manager, incident commander, emergency first
responder, fire chief, or the commissioner of public safety are nonpublic data, as defined
under section 13.02, subdivision 9.
new text end

Sec. 6.

Minnesota Statutes 2014, section 299A.55, is amended to read:

299A.55 RAILROAD AND PIPELINE deleted text begin SAFETY deleted text end new text begin INCIDENT
PREPAREDNESS new text end ; OIL AND OTHER HAZARDOUS deleted text begin MATERIALS deleted text end new text begin SUBSTANCES new text end .

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given them.

(b) "Applicable rail carrier" means a railroad company that is subject to an
assessment under section 219.015, subdivision 2.

(c) "Hazardous substance" has the meaning given in deleted text begin section 115B.02, subdivision 8 deleted text end new text begin
Code of Federal Regulations, title 49, section 171.8 new text end .

(d) "Oil" has the meaning given in section 115E.01, subdivision 8.

(e) "Pipeline company" means any individual, partnership, association, or public
or private corporation who owns and operates pipeline facilities and is required to show
specific preparedness under section 115E.03, subdivision 2.

Subd. 2.

Railroad and pipeline deleted text begin safety deleted text end new text begin incident new text end account.

(a) A railroad and
pipeline deleted text begin safety deleted text end new text begin incident new text end account is created in the special revenue fund. The account
consists of funds collected under subdivision 4 and funds donated, allotted, transferred, or
otherwise provided to the account.

(b) deleted text begin $104,000 deleted text end new text begin An amount necessary for environmental protection activities related to
railroad discharge preparedness under section 115E.042 new text end is annually appropriated from the
railroad and pipeline deleted text begin safety deleted text end new text begin incident new text end account to the commissioner of the Pollution Control
Agency for deleted text begin environmental protection activities related to railroad discharge preparedness
under chapter 115E deleted text end new text begin those purposes new text end .

(c) Following the appropriation in paragraph (b), the remaining money in the
account is annually appropriated to the commissioner of public safety for the purposes
specified in subdivision 3.

Subd. 3.

Allocation of funds.

(a) Subject to funding appropriated for this
subdivision, the commissioner shall provide funds for training and response preparedness
related to (1) derailments, discharge incidents, or spills involving trains carrying oil or
other hazardous substances, and (2) pipeline discharge incidents or spills involving oil
or other hazardous substances.

(b) The commissioner shall allocate available funds as follows:

(1) $100,000 annually for emergency response teams; and

(2) the remaining amount to the Board of Firefighter Training and Education under
section 299N.02 and the Division of Homeland Security and Emergency Management.

(c) Prior to making allocations under paragraph (b), the commissioner shall consult
with the Fire Service Advisory Committee under section 299F.012, subdivision 2.

(d) The commissioner and the entities identified in paragraph (b), clause (2), shall
prioritize uses of funds based on:

(1) firefighter training needs;

(2) community risk from discharge incidents or spills;

(3) geographic balance; deleted text begin and
deleted text end

(4) new text begin risks to the general public; and
new text end

new text begin (5) new text end recommendations of the Fire Service Advisory Committee.

(e) The following are permissible uses of funds provided under this subdivision:

(1) training costs, which may include, but are not limited to, training curriculum,
trainers, trainee overtime salary, other personnel overtime salary, and tuition;

(2) costs of gear and equipment related to hazardous materials readiness, response,
and management, which may include, but are not limited to, original purchase,
maintenance, and replacement;

(3) supplies related to the uses under clauses (1) and (2); deleted text begin and
deleted text end

(4) emergency preparedness planning and coordination deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) public safety emergency response exercises under section 219.925, subdivision
6; and
new text end

new text begin (6) public education and outreach, including but not limited to:
new text end

new text begin (i) informing and engaging the public regarding hazards of derailments and
discharge incidents;
new text end

new text begin (ii) assisting in development of evacuation readiness;
new text end

new text begin (iii) undertaking public information campaigns; and
new text end

new text begin (iv) providing accurate information to the media on likelihood and consequences of
derailments and discharge incidents.
new text end

(f) Notwithstanding paragraph (b), clause (2), from funds in the railroad and pipeline
deleted text begin safety deleted text end new text begin incident new text end account provided for the purposes under this subdivision, the commissioner
may retain a balance in the account for budgeting in subsequent fiscal years.

Subd. 4.

Assessments.

(a) The commissioner of public safety shall annually assess
$2,500,000 to railroad and pipeline companies based on the formula specified in paragraph
(b). The commissioner shall deposit funds collected under this subdivision in the railroad
and pipeline deleted text begin safety deleted text end new text begin incident new text end account under subdivision 2.

(b) The assessment for each railroad is 50 percent of the total annual assessment
amount, divided in equal proportion between applicable rail carriers based on route miles
operated in Minnesota. The assessment for each pipeline company is 50 percent of the
total annual assessment amount, divided in equal proportion between companies based
on the yearly aggregate gallons of oil and hazardous substance transported by pipeline
in Minnesota.

(c) The assessments under this subdivision expire July 1, 2017.

Sec. 7. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall recodify Minnesota Statutes, section 115E.042,
subdivision 2, as Minnesota Statutes, section 219.925, subdivision 8, and Minnesota
Statutes, section 115E.042, subdivision 3, as Minnesota Statutes, section 219.925,
subdivision 4. The revisor shall correct any cross-references made necessary by this
recodification.
new text end

APPENDIX

Repealed Minnesota Statutes: H0622-3

123A.446 STATE BOND AUTHORIZATION.

To provide money for the cooperative secondary facilities grant program, the commissioner of management and budget, upon the request of the commissioner of education, shall issue and sell bonds of the state up to the amount of $14,000,000 in the manner, upon the terms and with the effect prescribed by sections 16A.631 to 16A.675 and the Minnesota Constitution, article XI, sections 4 to 7.