HF 5

1st Engrossment - 90th Legislature, 2017 1st Special Session (2017 - 2017) Posted on 05/31/2017 11:42am

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 2016, sections 15B.32,
subdivision 4; 16A.967; 84.946, subdivision 2; 85.34, subdivision 1; 116J.8738,
subdivisions 2, 3; 174.50, subdivisions 5, 6b, 6c, 7, by adding a subdivision;
326B.124; 446A.072; 446A.073; 446A.081, subdivision 9; 446A.12, subdivision
1; 462A.37, subdivisions 2a, 2b, 5, by adding a subdivision; Laws 2006, chapter
258, section 18, subdivision 6, as amended; Laws 2012, chapter 293, sections 7,
subdivision 3; 17, subdivision 4; Laws 2014, chapter 294, article 1, sections 7,
subdivisions 11, 15; 17, subdivisions 6, 12; 21, subdivision 12, as amended; Laws
2015, First Special Session chapter 5, article 1, section 10, subdivisions 3, 7;
proposing coding for new law in Minnesota Statutes, chapters 16C; 219; repealing
Minnesota Statutes 2016, 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 article 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 article, money appropriated in this article 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

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 119,934,000 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 20,600,000 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 Duluth - Chemical Sciences and Advanced Materials Science Building new text end

new text begin 28,267,000 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 - Health Sciences Education Facility new text end

new text begin 66,667,000 new text end

new text begin To demolish obsolete health sciences facilities
and to design, renovate, furnish, equip, and
construct a health science education facility
on the Twin Cities campus to meet the needs
of the Medical School and the Academic
Health Center.
new text end

new text begin Subd. 5. 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. 6. 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. 7. 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 92,325,000 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 25,000,000 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 11,223,000 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 convert 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 South Central College, North Mankato new text end

new text begin 9,600,000 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. 7. 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. 8. 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 accomplishing related site work.
new text end

new text begin Subd. 9. 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. 10. 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 this section 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 4,000,000 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 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
amount sufficient to complete the project is
committed to it from nonstate sources.
new text end

new text begin Subd. 4. 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

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 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 67,203,000 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 15,000,000 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:
new text end

new text begin (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
new text end

new text begin (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 $1,700,000 for
the Cedar River Watershed District, $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 15,400,000 new text end

new text begin (a) For design, engineering, and construction
to repair, reconstruct, or remove dams and
respond to dam safety emergencies. 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 (1) $4,400,000 is for emergencies on
state-owned dams; for repairs to the Lake
Bronson dam; and for state dams at Brawner,
West Leaf Lake, Collinwood, Grindstone
River, Sullivan, and Willow River;
new text end

new text begin (2) $4,000,000 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 (3) $500,000 is for a grant to the city of
Pelican Rapids for engineering work on the
Pelican Rapids dam;
new text end

new text begin (4) $200,000 is for a grant to the city of Pine
River for engineering work on the Norway
Lake dam;
new text end

new text begin (5) $200,000 is for a grant to Yellow Medicine
County for the Canby R-6 impoundment dam;
new text end

new text begin (6) $100,000 is for a grant to St. Louis County
for the Little Stone Lake dam; and
new text end

new text begin (7) $6,000,000 is for a grant to Dakota County
to design and construct capital improvements
to the hydroelectric generating facility,
including replacement of obsolete turbines, at
the Byllesby Dam located on the Cannon
River.
new text end

new text begin (b) 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 State Trail, Recreation Area, and Park Acquisition and Development new text end

new text begin 18,698,000 new text end

new text begin (a) $2,590,000 is for the Glacial Lakes Trail,
to complete an approximately 6-1/4 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 (b) $3,300,000 is to design, develop, and
complete the Heartland State Trail from
Detroit Lakes to Frazee and, to the extent there
is sufficient money, for work on the spur from
Park Rapids to Itasca State Park.
new text end

new text begin (c) $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 (d) $1,600,000 is to construct, furnish, and
equip a multiuse state trail connection between
the city of Little Falls and the Soo Line Trails
as part of the Camp Ripley/Veterans State
Trail in Morrison County. The trail connection
may include separated segments to
accommodate recreational vehicles separately
from nonmotorized vehicles and pedestrians.
new text end

new text begin (e) $3,500,000 is for continued development
of Lake Vermilion-Soudan Underground Mine
State Park recreational facilities.
new text end

new text begin (f) $328,000 is for design and acquisition of
the Mill Towns State Trail from Faribault to
Northfield.
new text end

new text begin (g) $3,130,000 is for acquisition and
development of the Gitchi-Gami State Trail,
from Grand Marais to Cascade State Park, and
through the town of Tofte.
new text end

new text begin (h) The commissioner may allocate money
not needed to complete a project listed in this
subdivision to another project listed in this
subdivision that needs additional money to be
completed. For any project listed in this
subdivision that the commissioner determines
is not ready to proceed, the commissioner may
reallocate that project's money to another
project described in this subdivision or other
state trail, recreation area, or park
infrastructure. The chairs of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources and legislators from the affected
legislative districts must be notified of any
changes.
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 to 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 Morrison County - Soo Line Trail Bridge new text end

new text begin 400,000 new text end

new text begin For a grant to Morrison County to predesign,
design, and construct the rehabilitation of the
Soo Line Trail bridge over the Mississippi
River, including specifically the bridge's piers
and abutments. This appropriation does not
require a nonstate match.
new text end

new text begin Subd. 10. new text end new text begin St. Paul - Shade Tree Reforestation new text end

new text begin 1,500,000 new text end

new text begin For a grant to St. Paul for the planting of
publicly owned shade trees on public land to
provide environmental benefits; replace trees
lost to forest pests, disease, or storm; or to
establish a more diverse community forest
better able to withstand disease and forest
pests. For purposes of this appropriation,
"shade tree" means a woody perennial grown
primarily for aesthetic or environmental
purposes with minimal to residual timber value
and no intent to harvest the tree for its wood.
Any tree planted with funding under this
subdivision must be a species native to
Minnesota.
new text end

new text begin Subd. 11. 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 46,010,000 new text end

new text begin To 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 25,410,000 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.
new text end

new text begin Subd. 3. new text end new text begin Closed Landfill Cleanup new text end

new text begin 11,350,000 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. 4. new text end new text begin Capital Assistance Program new text end

new text begin 9,250,000 new text end

new text begin For a grant to Polk County under the solid
waste capital assistance grant program under
Minnesota Statutes, section 115A.54, in order
to complete a regional integrated solid waste
management system.
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 15,000,000 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

new text begin Up to $560,000 of this appropriation may be
spent to replace wetlands drained or filled that
are associated with a new public road project
to improve public safety in a greater than 80
percent area, as defined in Minnesota Statutes,
section 103G.005, subdivision 10b.
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 270,000 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 AURI new text end

new text begin 270,000 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 Marshall facility and for
updated equipment and renovations at the
Waseca facility.
new text end

Sec. 10. 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 in poor 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. 11. 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 18,178,000 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 Centennial Parking Ramp new text end

new text begin 10,878,000 new text end

new text begin (a) 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 (b) Any unexpended amount of this
appropriation after completing the project in
paragraph (a) may be used to design and
construct a storm water retention basin
adjacent to the Centennial parking ramp, if the
commissioner of administration determines
that the basin is feasible.
new text end

new text begin Subd. 3. new text end new text begin Capital Asset Preservation and Replacement Account new text end

new text begin 5,000,000 new text end

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

new text begin Subd. 4. 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

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

Sec. 12. 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, at the
Centennial Office Building, and at the
Department of Revenue's Stassen Office
Building for the purpose of decommissioning
and repurposing into usable office space.
new text end

Sec. 13. new text begin MILITARY AFFAIRS 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 adjutant general 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 2,500,000 new text end

new text begin 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. 14. new text begin PUBLIC SAFETY 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 3,521,000 new text end

new text begin To the named official for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Camp Ripley Training Facility new text end

new text begin 3,521,000 new text end

new text begin To the adjutant general to predesign, design,
construct, and equip a joint emergency railroad
and pipeline emergency response training
facility at Camp Ripley. The project includes
construction of stations and capital
infrastructure needed for mock disaster
training, including infrastructure for training
in hazardous materials abatement and site
recovery work.
new text end

Sec. 15. 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 254,918,000 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 49,212,000 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 $31,875,000 of this appropriation is for a grant
under Minnesota Statutes, section 174.50,
subdivision 6d, to the city of Minneapolis to
repair and rehabilitate the bridge over the
Mississippi River that is aligned on the east
side of the river with 10th Avenue, also
designated Route 328, on the municipal
state-aid system, notwithstanding any law or
rule to the contrary. This appropriation does
not require a local match.
new text end

new text begin $800,000 of this appropriation is for a grant
to the city of Isle for demolition and
construction necessary to replace the Malone
Island Bridge, including the replacement of
accompanying water and sewer lines.
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 115,932,000 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 trunk
highway corridor projects 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) Of this amount, $9,000,000 is for a grant
to Anoka County to realign and make
associated improvements to County State-Aid
Highway 23 (Lake Drive), County State-Aid
Highway 54 (West Freeway Drive), and to
Hornsby Street in the city of Columbus.
new text end

new text begin (c) 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 (d) Of this amount, $25,000,000 is for a grant
to Hennepin County, the city of Minneapolis,
or both, 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, notwithstanding any
provision of Minnesota Statutes, section
174.52, or rule to the contrary. This
appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete this portion of the Interstate
Highway 35W and Lake Street access project
has been committed to this portion of the
project.
new text end

new text begin (e) Of this amount, $10,500,000 is for a grant
to Carver County for environmental analysis
and to acquire right-of-way access, predesign,
design, engineer, and construct an interchange
at marked Trunk Highway 212 and Carver
County Road 44 in the city of Chaska,
including a new bridge and ramps, to support
the development of approximately 400 acres
of property in the city of Chaska's
comprehensive plan.
new text end

new text begin (f) Of this amount, $700,000 is for a grant to
Redwood County for improvements to Nobles
Avenue, including paving, 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, $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 (h) Of this amount, $20,500,000 is for a grant
to Ramsey County for preliminary and final
design, right-of-way acquisition, engineering,
contract administration, and construction of
public improvements related to the
construction of the interchange of marked
Interstate Highway 694 and Rice Street,
Ramsey County State-Aid Highway 49, in
Ramsey County.
new text end

new text begin (i) Of this amount, $11,300,000 is for a grant
to Hennepin County for preliminary and final
design, engineering, environmental analysis,
right-of-way acquisition, construction, and
reconstruction of local roads related to the (1)
realignment at the intersections of marked U.S.
Highway 12 with Hennepin County State-Aid
Highway 92; (2) realignment and safety
improvements at the intersection of marked
U.S. Highway 12 with Hennepin County
State-Aid Highway 90; and (3) safety median
improvements from the interchange with
Wayzata Boulevard in Wayzata to
approximately one-half mile east of the
interchange of marked U.S. Highway 12 with
Hennepin County State-Aid Highway 6.
new text end

new text begin (j) Of this amount, $1,000,000 is for a grant
to the city of Inver Grove Heights for
preliminary design, design, engineering, and
reconstruction of Broderick Boulevard
between 80th Street and Concord Boulevard
abutting Trunk Highway 52 and Inver Hills
Community College in Inver Grove Heights.
The project includes replacement or renovation
of public infrastructure, including water lines,
sanitary sewers, storm water sewers, and other
public utilities. This appropriation does not
require a nonstate contribution.
new text end

new text begin (k) Of this amount, $2,350,000 is for a grant
to McLeod County to acquire land or interests
in land and to design and construct a new
urban street extension of County State-Aid
Highway (CSAH) 15, including railroad
crossing, storm water, and drainage
improvements.
new text end

new text begin (l) Of this amount, $6,000,000 is 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 Subd. 4. new text end new text begin Rail Grade Separation on Crude Oil Rail Corridors new text end

new text begin 71,124,000 new text end

new text begin (a) Of this amount, $42,262,000 is for a grant
to the city of Moorhead for environmental
analysis, design, engineering, removal of an
existing structure, and construction of a rail
grade crossing separation in the vicinity of
21st Street South.
new text end

new text begin (b) $14,100,000 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. Any unspent portion of the
appropriation under this paragraph may be
used by Anoka County for design costs of
other rail crossings in Anoka County that are
on the commissioner's rail safety priority list.
new text end

new text begin (c) Of this amount, $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 (d) Any unspent portion of this appropriation
after completion of a project in this
subdivision may be used for grants in
accordance with Minnesota Statutes, section
219.016.
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 replacement
of active highway-rail grade warning devices
that have reached the end of their useful life.
new text end

new text begin Subd. 6. new text end new text begin Rail Service Improvement new text end

new text begin 1,000,000 new text end

new text begin For rail service improvement grants under
Minnesota Statutes, section 222.50.
new text end

new text begin Subd. 7. new text end new text begin Minnesota Valley Regional Railroad 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. 8. new text end new text begin Hugo - Short Line Railway new text end

new text begin 1,500,000 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. 9. 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

new text begin Subd. 10. 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) 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, United States 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. 11. 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 at least an equal
amount has been committed to the project
from nonstate sources.
new text end

new text begin Subd. 12. new text end new text begin Safe Routes to School new text end

new text begin 1,000,000 new text end

new text begin For grants under Minnesota Statutes, section
174.40.
new text end

new text begin Subd. 13. new text end new text begin Eden Prairie - Rail Grade Crossings new text end

new text begin 1,400,000 new text end

new text begin For a grant to the city of Eden Prairie to (1)
design, construct, and equip new passive and
active rail grade crossing warning safety
devices at existing and proposed highway-rail
grade crossings, or (2) replace existing
highway-rail grade crossings. Upon request
by the city of Eden Prairie, the commissioner
of transportation must provide reasonable
technical assistance regarding highway-rail
grade crossing project development and the
establishment of rail quiet zones.
new text end

Sec. 16. 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 45,044,000 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 Metropolitan Regional Parks and Trails Capital Improvements new text end

new text begin 5,000,000 new text end

new text begin For the cost of improvements and betterments
of a capital nature and acquisition by the
council and local government units of regional
recreational open-space lands in accordance
with the council's policy plan as provided in
Minnesota Statutes, section 473.147. This
appropriation must not be used to purchase
easements.
new text end

new text begin Subd. 3. new text end new text begin Metropolitan Cities Inflow and Infiltration Grants new text end

new text begin 3,739,000 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. 4. 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. 5. 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. 6. new text end new text begin St. Paul - Como Zoo new text end

new text begin 15,000,000 new text end

new text begin For a grant to the city of St. Paul for predesign,
design, engineering, and construction 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

new text begin Subd. 7. new text end new text begin White Bear Lake Multiuse Trails new text end

new text begin 255,000 new text end

new text begin To develop a multiuse pedestrian and bicycle
path around White Bear Lake. Of this amount,
$130,000 is for a grant to the city of White
Bear Lake to construct, furnish, and equip a
multiuse trail for pedestrians and bicycles on
Old White Bear Avenue between Lion's Park
and South Shore Boulevard/Hazel; $38,000 is
for grants to the cities of Mahtomedi and
Dellwood for preliminary engineering of a
multiuse trail for pedestrians and bicycles near
White Bear Lake in the cities of Mahtomedi
and Dellwood to be located within the
right-of-way to marked Trunk Highway 244;
$15,000 is for a grant to the city of Mahtomedi
for preliminary engineering for a multiuse trail
for pedestrians and bicycles near White Bear
Lake within the right-of-way to Birchwood
Road in the city of Mahtomedi and Hall
Avenue in the city of Birchwood; and $50,000
is for a grant to Ramsey County for
preliminary engineering of a multiuse trail for
pedestrians and bicycles to South Shore
Boulevard between White Bear Avenue and
Trunk Highway 120.
new text end

new text begin Subd. 8. new text end new text begin West St. Paul - River to River Regional Greenway new text end

new text begin 200,000 new text end

new text begin For a grant to the city of West St. Paul to
predesign, design, and construct a grade
separated crossing of Robert Street in the area
near Wentworth Avenue in West St. Paul for
the River to River Regional Greenway. This
appropriation may also be used to acquire
property or purchase rights-of-way needed for
construction. This appropriation is in addition
to the appropriation in Laws 2014, chapter
294, article 1, section 17, subdivision 12, as
amended by article 2.
new text end

Sec. 17. 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 100,365,000 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 70,255,000 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
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 (a) To predesign, design, construct, furnish,
and equip a new community-based 16-bed
psychiatric hospital facility to house the Child
and Adolescent Behavioral Health Services
(CABHS) program to be located in or near the
city of Willmar. This appropriation includes
funds for land purchase, surveying, predesign
and design fees, construction administration,
project management, site work, site and
building infrastructure, construction, and
furniture, fixtures, and equipment.
new text end

new text begin (b) Notwithstanding any law to the contrary,
the 16 hospital beds licensed to the CABHS's
facility on January 1, 2017, by the Department
of Health, may transfer to this new facility
upon completion, and approved inspection by
the Departments of Health and Human
Services.
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 Hennepin County - Regional Medical Examiner's Facility new text end

new text begin 2,680,000 new text end

new text begin To the commissioner of human services 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 sited on property located
at 14300 County Road 62 in Minnetonka.
new text end

new text begin Subd. 6. new text end new text begin 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 for a grant to Perspectives,
Inc. to predesign and design the expansion and
renovation of the existing Perspectives Family
Center facility in St. Louis Park. 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 St. Paul - Dorothy Day Opportunity Center new text end

new text begin 12,000,000 new text end

new text begin To the commissioner of human services 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

new text begin Subd. 8. new text end new text begin Carver County - Regional Residential Crisis Stabilization Clinic new text end

new text begin 1,250,000 new text end

new text begin To the commissioner of human services for a
grant to Carver County to design, construct,
furnish, and equip a facility in the city of
Chaska to provide regional residential crisis
stabilization services subject to Minnesota
Statutes, section 16A.695. This appropriation
shall be used for construction of a 12-bed
facility in conjunction with the expansion of
an existing hospital unit in Carver County, to
maximize the space available for more than
12 crisis stabilization beds. The new facility
shall provide acute stabilization for persons
with a primary or secondary mental health
diagnosis in lieu of inpatient psychiatric
hospitalization and must be open to referrals
from a hospital and freestanding emergency
room in Carver County, a critical access
hospital in Sibley County, and a critical access
hospital in Le Sueur County.
new text end

new text begin Subd. 9. new text end new text begin Minneapolis - The Family Partnership new text end

new text begin 1,600,000 new text end

new text begin From the general fund to the commissioner of
human services 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 sources.
new text end

new text begin Subd. 10. new text end new text begin Minneapolis - People's Center new text end

new text begin 2,200,000 new text end

new text begin From the general fund to the commissioner of
human services for a grant to the People's
Center in Minneapolis to design, renovate,
improve, construct, and equip a facility that
provides medical, dental, mental health, and
wellness services to all patients, regardless of
their ability to pay. This appropriation is not
available until the commissioner of
management and budget confirms that an
amount sufficient to complete the project has
been committed from nonstate sources.
new text end

Sec. 18. new text begin VETERANS AFFAIRS 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 12,881,000 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 5,000,000 new text end

new text begin 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

new text begin Subd. 3. new text end new text begin Minneapolis Veterans Home Truss Bridge Project new text end

new text begin 7,851,000 new text end

new text begin To design, construct, renovate, and equip the
historic truss bridge on the Minneapolis
Veterans Home campus, including asbestos
and hazardous materials abatement and
associated site work.
new text end

new text begin Subd. 4. new text end new text begin Rice County Veterans Memorial new text end

new text begin 30,000 new text end

new text begin For a grant to Rice County to complete the
Rice County Veterans Memorial on the
grounds of the Rice County Court House in
Faribault. Because approximately $345,000
of nonstate money has been spent or
committed to the project before the enactment
of this appropriation, no further nonstate
contribution is required.
new text end

Sec. 19. 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 39,600,000 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 St. Cloud
correctional facility.
new text end

new text begin Subd. 4. new text end new text begin Northeast Regional Corrections Center new text end

new text begin 600,000 new text end

new text begin For a grant to the Arrowhead Regional
Corrections Joint Powers Board to renovate,
remodel, and complete other capital
improvements to buildings that support
vocational, educational, and farm work
programming and experiences at the Northeast
Regional Corrections Center. Nonstate
contributions to improvements at the center
made before or after the enactment of this
subdivision are considered to be a sufficient
match and no further nonstate contribution is
required.
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. 20. 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 101,402,000 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 Asset Preservation new text end

new text begin 1,342,000 new text end

new text begin For asset preservation improvements and
betterments of a capital nature at the South
Minneapolis Workforce Center, 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 Transportation Economic Development new text end

new text begin 3,500,000 new text end

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

new text begin Subd. 4. 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. 5. new text end new text begin Innovative Business Development Public Infrastructure Grants new text end

new text begin 1,158,000 new text end

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

new text begin Subd. 6. new text end new text begin Chisago County - Law Enforcement and Emergency Operations Center new text end

new text begin 3,000,000 new text end

new text begin For a grant to Chisago County to predesign,
design, construct, furnish, and equip a
municipal complex that includes a law
enforcement and emergency operations center,
and related facilities and infrastructure, for
interconnection to the county emergency
communications center. This appropriation is
not available until the commissioner has
determined that at least an equal amount has
been committed to the project from nonstate
sources. Amounts expended by Chisago
County for project costs since July 1, 2015,
shall count toward the matching requirement.
new text end

new text begin Subd. 7. new text end new text begin Duluth - Steam Plant new text end

new text begin 15,000,000 new text end

new text begin The commissioner of management and budget
shall determine the balance remaining in the
renewable development account in the special
revenue fund established in 2017 S.F. No.
1456, article 10, section 3, if enacted, after all
appropriations are made from the account in
2017 S.F. No. 1456. Notwithstanding any law
to the contrary, the balance determined by the
commissioner, in an amount not to exceed
$15,000,000, is appropriated to the
commissioner of employment and economic
development in fiscal year 2018 for a grant to
the city of Duluth to upgrade the municipal
district heating facility and systems, including
conversion of the distribution system along
Superior Street from steam with no condensate
return to closed-loop hot water. This
appropriation (1) may be used for one or more
of the project elements or phases: predesign,
design, engineering, renovation, construction,
furnishing, and equipping the facility, systems,
and infrastructure; and (2) is available until
expended.
new text end

new text begin Subd. 8. new text end new text begin Eagle Bend High School new text end

new text begin 1,500,000 new text end

new text begin For a grant to Independent School District No.
786, Bertha-Hewitt, or other independent
school district to which that portion of the
territory of former Independent School District
No. 2759, Eagle Valley, containing the Eagle
Bend school is attached by action of the Todd
County Board, to prepare and develop the
Eagle Bend High School building site,
including demolition of buildings and
infrastructure, to remove life safety hazards
and to facilitate the redevelopment and reuse
of the site. This appropriation does not require
a nonstate contribution.
new text end

new text begin Subd. 9. new text end new text begin Eagle's Healing Nest new text end

new text begin 500,000 new text end

new text begin From the general fund for a grant to Eagle's
Healing Nest in Sauk Centre.
new text end

new text begin Subd. 10. new text end new text begin Hennepin County - Hennepin Center for the Arts new text end

new text begin 3,000,000 new text end

new text begin From the general fund for a grant to Hennepin
County for improvements and betterments of
a capital nature to renovate the historic
Hennepin Center for the Arts. 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. 11. new text end new text begin Hermantown - Arrowhead Regional Health and Wellness Center new text end

new text begin 8,000,000 new text end

new text begin For a grant to the city of Hermantown to
prepare the middle school site on the
Hermantown School District campus,
including demolition of a portion of the middle
school, and to design, construct a new addition
to the middle school building and renovate the
remaining existing building, furnish, and equip
the facility as the Arrowhead Regional Health
and Wellness Center. The city may enter into
lease or management agreements under
Minnesota Statutes, section 16A.695, for
operation of the center. This appropriation is
not available until at least an equal amount is
committed to the project from nonstate
sources.
new text end

new text begin Subd. 12. new text end new text begin LaSalle - Community Center and Fire Hall new text end

new text begin 100,000 new text end

new text begin For a grant to the city of La Salle for
renovations to the community center and fire
hall in the city of LaSalle, including replacing
and resurfacing the roof and renovating the
interior of the building. This appropriation
may also be used to renovate a furnace room
in the community center and fire hall to
accommodate the city generator and to replace
carpet and tile. No local match is required.
new text end

new text begin Subd. 13. new text end new text begin Litchfield - Phase 2 Power Generation Improvements new text end

new text begin 4,000,000 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. 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. 14. 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 does not require a nonstate
contribution.
new text end

new text begin Subd. 15. new text end new text begin Minneapolis - Norway House new text end

new text begin 5,000,000 new text end

new text begin For a grant to the city of Minneapolis 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, subject to Minnesota Statutes,
section 16A.695. This appropriation is not
available until the commissioner of
management and budget determines that an
amount sufficient to complete the project is
committed from nonstate sources.
new text end

new text begin Subd. 16. new text end new text begin Minneapolis American Indian Center new text end

new text begin 155,000 new text end

new text begin From the general fund for a grant to the
Minneapolis American Indian Center to
predesign the renovation of the center on
Franklin Avenue, taking into account and
protecting the significant and unique art and
features of the center.
new text end

new text begin Subd. 17. new text end new text begin Mountain Iron - Enterprise Drive North new text end

new text begin 400,000 new text end

new text begin For a grant to the city of Mountain Iron for its
share of the cost of improvements to
Enterprise Drive North where this road
intersects marked U.S. Highway 169 in
Mountain Iron. This project is due to and will
be done in conjunction with the reconstruction
of marked U.S. Highway 169.
new text end

new text begin Subd. 18. new text end new text begin Red Wing - River Town Renaissance new text end

new text begin 4,400,000 new text end

new text begin For a grant to the city of Red Wing to
complete removal and replacement of 250
linear 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. 19. new text end new text begin St. James - Public Infrastructure new text end

new text begin 5,943,000 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, $1,250,000 is for replacement of the
storm sewer drain that serves St. James Lake
and the entire southern section of the city of
St. James, and $2,500,000 is to design,
engineer, and construct and install larger storm
sewers and a storm water retention pond.
new text end

new text begin Subd. 20. 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. 21. new text end new text begin St. Paul - 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 new
museum galleries and an art study facility for
the Minnesota Museum of American Art. This
facility provides space to celebrate the legacy
of Minnesota art and artists and is part of the
restoration of the historic Pioneer Endicott
Building, and a part of a multiphase project,
of which only the museum galleries and art
study facility constructed with this
appropriation shall be state bond financed
property subject to Minnesota Statutes, section
16A.695. This appropriation is not available
until the commissioner of management and
budget has determined that:
new text end

new text begin (1) at least an amount equal to this
appropriation has been committed or
previously expended for design, construction,
and furnishing of the adjacent Minnesota
Museum of American Art Center for
Creativity facilities, which are not subject to
Minnesota Statutes, section 16A.695, with
funds from nonstate sources; and
new text end

new text begin (2) sufficient other state and nonstate funds
are available, if funds beyond this
appropriation are required, to complete the
museum galleries and art study facility.
new text end

new text begin Funds invested in the Minnesota Museum of
American Art Center for Creativity facilities
by an investor receiving an assignment of state
historic tax credits as provided in Minnesota
Statutes, section 290.0681, are nonstate funds
for purposes of this requirement. Only
expenditures made after January 1, 2012, shall
qualify for the required match. Due to the
integrated nature of the overall development,
public bidding shall not be required.
new text end

new text begin Subd. 22. new text end new text begin Virginia - Miner's Memorial Building new text end

new text begin 12,000,000 new text end

new text begin For a grant to the city of Virginia for phase I
of the renovation and reconstruction of the
Miner's Memorial Building in Virginia. This
appropriation is not available until the
commissioner of management and budget
determines an amount has been committed to
complete the project from nonstate sources.
new text end

new text begin Subd. 23. new text end new text begin Waseca - Tink Larson Field new text end

new text begin 375,000 new text end

new text begin For a grant to the city of Waseca for
construction of a new grandstand and athletic
facilities at Tink Larson Field, due to losses
incurred during a 2016 fire. Money raised for
this project and insurance proceeds received
for the fire loss satisfy the local match
requirement.
new text end

Sec. 21. 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 116,888,000 new text end

new text begin To the Public Facilities Authority for the
purposes specified in this section. The Public
Facilities Authority may use the funds in this
section or other available funds to amend
project financing agreements awarded after
July 1, 2016, based on program changes to
Minnesota Statutes, sections 446A.072 and
446A.073, in article 2 of this act.
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 55,000,000 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) $40,000,000 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) $15,000,000 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 (e) Notwithstanding Minnesota Statutes,
section 446A.072, subdivision 5a, paragraph
(b), the Western Lake Superior Sanitary
District is eligible for a grant to predesign,
design, construct, furnish, and equip a
combined heat and power system.
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 33,737,000 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 Notwithstanding the limitations on grants in
Minnesota Statutes, section 446A.073,
subdivision 1, the city of Detroit Lakes is
eligible to receive a grant for up to 80 percent
of eligible project costs of the city's
wastewater treatment facility phosphorus
removal project.
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 Clearbrook - Infrastructure Restoration new text end

new text begin 850,000 new text end

new text begin For a grant to the city of Clearbrook to
predesign, design, engineer, and construct
public infrastructure improvements
necessitated by the city's water and wastewater
improvements, including street, curb, and
boulevard restoration. This appropriation does
not require a nonstate contribution.
new text end

new text begin Subd. 7. new text end new text begin Clear Lake and Clearwater - Wastewater Treatment Facility new text end

new text begin 300,000 new text end

new text begin For a grant to the Clear Lake-Clearwater
Sewer Authority to remove and replace the
existing wastewater treatment facility. This
project is intended to prevent the discharge of
phosphorus into the Mississippi River. This
appropriation is not available until the
commissioner of management and budget
determines that at least $200,000 is committed
to the project from nonstate sources and the
authority has applied for at least two grants to
offset the cost. Any money received by the
authority from grants must be returned to the
general fund and are appropriated to the Public
Facilities Authority for the purposes specified
in Minnesota Statutes, section 446A.072, and
subject to Minnesota Statutes, section
16A.642, from the date of the original
appropriation.
new text end

new text begin Subd. 8. 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. 9. new text end new text begin East Grand Forks - Wastewater Interconnection Infrastructure 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, and to design and construct the
decommissioning of the wastewater
stabilization ponds in East Grand Forks,
Minnesota. 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. 10. new text end new text begin Lilydale - Highway 13 Storm Water Conveyance new text end

new text begin 275,000 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 may be used in part or in whole
to reimburse the city for project costs already
paid for and does not require a nonstate
contribution.
new text end

new text begin Subd. 11. 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 or St.
Louis County to be used for other capital
projects described in the comprehensive plan
and as determined by the Voyageurs National
Park Clean Water Joint Powers Board.
new text end

new text begin Subd. 12. 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. 22. 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. 23. 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 6,500,000 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

new text begin Subd. 3. new text end new text begin Historic Fort Snelling new text end

new text begin 4,000,000 new text end

new text begin To design facilities to support visitor services
and history programs at Historic Fort Snelling.
new text end

Sec. 24. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 1,039,000 new text end

new text begin To the commissioner of management and
budget for bond sale expenses under
Minnesota Statutes, section 16A.641,
subdivision 8.
new text end

Sec. 25. 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 $873,366,000 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. 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 $165,144,000 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. 26. 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 $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

new text begin (l) The uncommitted and unobligated amount of the appropriation from the bond proceeds
fund in Laws 2014, chapter 294, article 1, section 18, subdivision 8, for the Arrowhead
Economic Opportunity Agency and Range Mental Health Center, estimated to be $1,200,000,
is canceled, and the bond sale authorization in Laws 2014, chapter 294, article 1, section
26, subdivision 1, is reduced by the same amount.
new text end

new text begin (m) The amounts of the general obligation bond proceeds appropriations, general fund
appropriations, and trunk highway bond proceeds appropriations listed in the cancellation
report submitted to the legislature in January 2017, pursuant to Minnesota Statutes, section
16A.642, are canceled on the effective date of this section, with the exception of the
cancellation of Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws
2013, chapter 136, section 13, that is reauthorized in article 2, section 24, of this act. The
corresponding bond sale authorizations are reduced by the same amounts. If an appropriation
in this section is canceled more than once, the cancellation must be given effect only once.
new text end

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

new text begin The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2019, no more than
$1,555,301,000 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.
new text end

Sec. 28. 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

MISCELLANEOUS

Section 1.

Minnesota Statutes 2016, section 15B.32, subdivision 4, is amended to read:

Subd. 4.

Officers and meetings.

(a) The governor is the chair of the commission. The
lieutenant governor is the vice-chair of the commission and may act as the chair of the
commission in the absence of the governor. The governor may designate a staff member to
attend commission meetings and vote on the governor's behalf in the absence of the governor.

(b) The commission shall meet at least deleted text begin quarterly deleted text end new text begin annually new text end and at other times at the call
of the chair. Meetings of the commission are subject to chapter 13D.

Sec. 2.

Minnesota Statutes 2016, 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; engineering, design, and easement acquisition
for the final phase of the project to Worthington; and to begin and proceed with Phase 3,
described in subdivision 2b. 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 certification by the Lewis and Clark Joint Powers Board that the bond
sale authorization provided by this subdivision has fully met the needs of Phase 2 of the
project, and to the extent there is additional authorization remaining, this authorization is
also available for the purposes of and on the same conditions as 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
$3,500,000 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 $265,000 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. 3.

new text begin [16C.054] ACCOMMODATION FOR HARD-OF-HEARING IN
STATE-FUNDED CAPITAL PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "public gathering space" means
a space that is constructed or renovated as part of the project: (1) that accommodates and
is intended to be used for gatherings of 15 or more people; and (2) in which audible
communications are integral to a use of the space.
new text end

new text begin Subd. 2. new text end

new text begin Accommodation for hard-of-hearing in state-funded capital projects. new text end

new text begin No
commissioner or agency head may approve a contract or grant state funds for a capital
improvement project to construct or renovate a public gathering space in a building unless:
new text end

new text begin (1) the project includes equipping the public gathering space, if the public gathering
space has or will have a permanent audio-amplification system, with audio-induction loops
to provide an electromagnetic signal for hearing aids and cochlear implants; and
new text end

new text begin (2) the project includes meeting the American National Standards Institute Acoustical
Performance Criteria, Design Requirements and Guidelines for Schools on maximum
background noise level and reverberation times in the public gathering space.
new text end

new text begin Subd. 3. new text end

new text begin Exemption. new text end

new text begin A commissioner or agency head may approve a contract or grant
state funds for a capital improvement project to construct or renovate a building that does
not meet a requirement of subdivision 2, when the commissioner or agency head determines
that meeting that requirement is not feasible, is in conflict with other requirements in law,
is in conflict with other project requirements, or that costs outweigh the benefits. The
commissioner must consult with the Commission of Deaf, Deafblind, and Hard-of-Hearing
Minnesotans before making the determination.
new text end

new text begin Subd. 4. new text end

new text begin Exemption reports. new text end

new text begin A commissioner or agency head who determines a contract
is exempt under subdivision 3 must report the exemption to the Commission of Deaf,
Deafblind, and Hard-of-Hearing Minnesotans within three months of making the
determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing
Minnesotans shall submit a report to the chairs and ranking minority members of the
committees in the house of representatives and senate with jurisdiction over state contracting
by January 30 of even-numbered years beginning in 2020 identifying each exemption
reported in the previous two calendar years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective the day following final enactment,
and, except as provided in paragraph (b), applies to any project funded with an appropriation
enacted after January 1, 2017.
new text end

new text begin (b) This section does not apply to a project that has completed schematic design on the
effective date of this section, but the commissioner and agency heads are encouraged to
comply with it.
new text end

Sec. 4.

Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:

Subd. 2.

Standards.

(a) An appropriation for asset preservation may be used only for a
capital expenditure on a capital asset previously owned by the state, within the meaning of
generally accepted accounting principles as applied to public expenditures. The commissioner
of natural resources will consult with the commissioner of management and budget to the
extent necessary to ensure this and will furnish the commissioner of management and budget
a list of projects to be financed from the account in order of their priority. The legislature
assumes that many projects for preservation and replacement of portions of existing capital
assets will constitute betterments and capital improvements within the meaning of the
Constitution and capital expenditures under generally accepted accounting principles, and
will be financed more efficiently and economically under this section than by direct
appropriations for specific projects.

(b) An appropriation for asset preservation must not be used to acquire land or to acquire
or construct buildings or other facilities.

(c) Capital budget expenditures for natural resource asset preservation and replacement
projects must be for one or more of the following types of capital projects that support the
existing programmatic mission of the department: code compliance including health and
safety, Americans with Disabilities Act requirements, hazardous material abatement, access
improvement, or air quality improvement; building energy efficiency improvements using
current best practices; building or infrastructure repairs necessary to preserve the interior
and exterior of existing buildings; new text begin projects to remove life safety hazards such as building
code violations or structural defects; new text end or renovation of other existing improvements to land,
including but not limited to trails and bridges.

(d) Up to ten percent of an appropriation awarded under this section may be used for
design costs for projects eligible to be funded from this account in anticipation of future
funding from the account.

Sec. 5.

Minnesota Statutes 2016, 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 a
lease relating to state-bond-financed buildings at the upper bluff shall be applied according
to 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. 6.

Minnesota Statutes 2016, section 116J.8738, subdivision 2, is amended to read:

Subd. 2.

Qualified business.

(a) A business is a qualified business if it satisfies the
requirement of this paragraph and is not disqualified under the provisions of paragraph (b).
To qualify, the business must:

(1) have operated its trade or business in a city or cities in greater Minnesota for at least
one year before applying under subdivision 3;

(2) pay or agree to pay in the future each employee compensation, including benefits
not mandated by law, that on an annualized basis equal at least 120 percent of the federal
poverty level for a family of four;

(3) plan and agree to expand its employment in one or more cities in greater Minnesota
by the minimum number of employees required under subdivision 3, paragraph (c); and

(4) have received certification from the commissioner under subdivision 3 that it is a
qualified business.

(b) A business is not a qualified business if it is either:

(1) primarily engaged in making retail sales to purchasers who are physically present at
the business's location or locations in greater Minnesota;

(2) a public utility, as defined in section 336B.01; or

(3) primarily engaged in lobbying; gambling; entertainment; professional sports; political
consulting; leisure; hospitality; or professional services provided by attorneys, accountants,
business consultants, physicians, or health care consultants.

(c) The requirements in paragraph (a) that the business's operations and expansion be
located in a city do not apply to an agricultural processing facility new text begin or a project designed to
qualify under section 41A.20 new text end .

Sec. 7.

Minnesota Statutes 2016, section 116J.8738, subdivision 3, is amended to read:

Subd. 3.

Certification of qualified business.

(a) A business may apply to the
commissioner for certification as a qualified business under this section. The commissioner
shall specify the form of the application, the manner and times for applying, and the
information required to be included in the application. The commissioner may impose an
application fee in an amount sufficient to defray the commissioner's cost of processing
certifications. Application fees are deposited in the greater Minnesota business expansion
administration account in the special revenue fund. A business must file a copy of its
application with the chief clerical officer of the city at the same time it applies to the
commissioner. For an agricultural processing facility new text begin or a project designed to qualify under
section 41A.20 new text end located outside the boundaries of a city, the business must file a copy of the
application with the county auditor.

(b) The commissioner shall certify each business as a qualified business that:

(1) satisfies the requirements of subdivision 2;

(2) the commissioner determines would not expand its operations in greater Minnesota
without the tax incentives available under subdivision 4; and

(3) enters a business subsidy agreement with the commissioner that pledges to satisfy
the minimum expansion requirements of paragraph (c) within three years or less following
execution of the agreement.

The commissioner must act on an application within 90 days after its filing. Failure by
the commissioner to take action within the 90-day period is deemed approval of the
application.

(c) The business must increase the number of full-time equivalent employees in greater
Minnesota from the time the business subsidy agreement is executed by two employees or
ten percent, whichever is greater.

(d) The city, or a county for an agricultural processing facility new text begin or a project designed to
qualify under section 41A.20 new text end located outside the boundaries of a city, in which the business
proposes to expand its operations may file comments supporting or opposing the application
with the commissioner. The comments must be filed within 30 days after receipt by the city
new text begin or county new text end of the application and may include a notice of any contribution the city or county
intends to make to encourage or support the business expansion, such as the use of tax
increment financing, property tax abatement, additional city or county services, or other
financial assistance.

(e) Certification of a qualified business is effective for the seven-year period beginning
on the first day of the calendar month immediately following the date that the commissioner
informs the business of the award of the benefit.

Sec. 8.

Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:

Subd. 5.

Certification and disbursal for project of political subdivision.

Before
disbursement of an appropriation made from the fund to the commissioner of transportation
for grants to subdivisions of the state, the commissioner deleted text begin shall deleted text end new text begin must new text end certify new text begin that new text end :

(1) deleted text begin that the project for which the grant is made has been reviewed as provided in
subdivision 4;
deleted text end

deleted text begin (2) that deleted text end the project conforms to the program authorized by the appropriation law and
rules adopted by the Department of Transportation consistent therewith; and

deleted text begin (3) that deleted text end new text begin (2) new text end the financing of any estimated cost of the project in excess of the amount of
the grant is assured by the appropriation of the proceeds of bonds or other funds of the
subdivision, or by a grant from an agency of the federal government, within the amount of
funds then appropriated to that agency and allocated by it to projects within the state, and
by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to
use all funds so made available exclusively for the project, and to pay any additional amount
by which the cost exceeds the estimate through appropriation to the construction fund of
additional funds or the proceeds of additional bonds to be issued by the subdivision.

Sec. 9.

Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:

Subd. 6b.

Bridge costs in smaller cities.

(a) The commissioner may make grants from
the state transportation fund to a home rule or statutory city with a population of 5,000 or
less for design, engineering, and construction of bridges on city streets.

deleted text begin (b) Grants under this subdivision are subject to the procedures and criteria established
under subdivisions 5, 6, and 7.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Grants may be used for:

(1) 100 percent of the design and engineering costs that are in excess of $10,000;

(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and

(3) 100 percent of the bridge construction work costs.

Sec. 10.

Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:

Subd. 6c.

Fracture-critical bridges.

deleted text begin (a) deleted text end The commissioner may make a grant to any
political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be
eligible for a grant under this subdivision, the project must produce a bridge structure:

(1) that is no longer classified as fracture critical, by having alternate load paths; and

(2) whose failure of a main component will not result in the collapse of the bridge.

deleted text begin (b) A grant under this subdivision is subject to the procedures and criteria established
under subdivisions 5 and 6.
deleted text end

Sec. 11.

Minnesota Statutes 2016, section 174.50, is amended by adding a subdivision to
read:

new text begin Subd. 6d. new text end

new text begin Major local bridges. new text end

new text begin For an appropriation made specifically for purposes of
this subdivision, the commissioner may make a grant under this section to any political
subdivision for replacement or rehabilitation of a major local bridge in which the grant
award is $7,000,000 or more. If in any year money appropriated for local bridge replacement
and rehabilitation projects under this subdivision remains available after all identified and
eligible projects under this subdivision have been funded, the commissioner may use
remaining funds to make grants under this section for less than $7,000,000.
new text end

Sec. 12.

Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:

Subd. 7.

Bridge grant program; rulemaking.

(a) The commissioner of transportation
shall develop rules, procedures for application for grants, conditions of grant administration,
standards, and criteria as provided under subdivision 6, including bridge specifications, in
cooperation with road authorities of political subdivisions, for use in the administration of
funds appropriated to the commissioner and for the administration of grants to subdivisions.
new text begin Grants under this section are subject to the procedures and criteria established in this
subdivision and in subdivisions 5 and 6.
new text end

(b) The maximum use of standardized bridges is encouraged. Regardless of the size of
the existing bridge, a bridge or replacement bridge is eligible for assistance from the state
transportation fund if a hydrological survey indicates that the bridge or replacement bridge
must be ten feet or more in length.

(c) As part of the standards or rules, the commissioner shall, in consultation with local
road authorities, establish a minimum distance between any two bridges that cross over the
same river, stream, or waterway, so that only one of the bridges is eligible for a grant under
this section. As appropriate, the commissioner may establish exceptions from the minimum
distance requirement or procedures for obtaining a variance.

(d) Political subdivisions may use grants made under this section to construct or
reconstruct bridges, including but not limited to:

(1) matching federal aid grants to construct or reconstruct key bridges;

(2) paying the costs to abandon an existing bridge that is deficient and in need of
replacement but where no replacement will be made; and

(3) paying the costs to construct a road or street to facilitate the abandonment of an
existing bridge if the commissioner determines that the bridge is deficient, and that
construction of the road or street is more economical than replacement of the existing bridge.

(e) Funds appropriated to the commissioner from the Minnesota state transportation
fund shall be segregated from the highway tax user distribution fund and other funds created
by article XIV of the Minnesota Constitution.

new text begin (f) Except as provided in subdivision 6d, the commissioner is prohibited from awarding
a grant under this section for a local bridge replacement or rehabilitation project with a total
project cost estimate of $7,000,000 or more.
new text end

new text begin (g) Notwithstanding paragraph (f), the commissioner may award a grant under this
section for a portion of a local bridge replacement or rehabilitation project with a total
project cost estimate of $7,000,000 or more if every other local bridge replacement or
rehabilitation project on the commissioner's priority list with a total project cost estimate
of less than $7,000,000 has been fully funded.
new text end

Sec. 13.

new text begin [219.016] HAZARDOUS MATERIALS RAIL SAFETY.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin A hazardous materials rail safety program is
established for the purpose of reducing the risks associated with the transportation of oil,
ethanol, and other hazardous material by rail.
new text end

new text begin Subd. 2. new text end

new text begin Accounts established. new text end

new text begin Two hazardous materials rail safety program accounts
are created, one in the special revenue fund and one in the bond proceeds fund. The account
in the special revenue fund consists of money as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in each account
is appropriated to the commissioner of transportation to make grants as provided in this
section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible applicant. new text end

new text begin A county, statutory or home rule charter city, or town that
is 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 under this section.
new text end

new text begin Subd. 4. new text end

new text begin Eligible project. new text end

new text begin (a) A project is eligible for a grant from the account in the
bond proceeds fund if the project is for the acquisition or betterment of public land, buildings,
and other public improvements of a capital nature within the meaning of the Minnesota
Constitution, article XI, section 5, clause (a) or (i), including 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 (b) A project is eligible for a grant from the account in the special revenue fund if it is
for purposes described in paragraph (a) or other capital facility improvement purposes that
support the purposes for which this grant program is established, including 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. 5. new text end

new text begin Grants; criteria for grant award. new text end

new text begin The commissioner must consider the
following criteria to evaluate applications for a grant award under this section:
new text end

new text begin (1) whether the crossing was identified as a potential candidate for grade separation in
the Department of Transportation'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; and
new text end

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

new text begin Subd. 6. new text end

new text begin Process. new text end

new text begin The commissioner must develop forms and procedures for soliciting
and reviewing applications for grants under this section. An applicant must apply for a grant
in the manner and at the times determined by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Grant cancellation. new text end

new text begin If, five years after execution of a grant agreement, the
commissioner determines that the grantee has not proceeded in a timely manner with
implementation of the project funded, the commissioner must cancel the grant and the
grantee must repay to the commissioner all grant money paid to the grantee. Section 16A.642
applies to any appropriations made from the bond proceeds fund to the commissioner under
this section that have not been awarded as financial assistance.
new text end

Sec. 14.

Minnesota Statutes 2016, section 326B.124, is amended to read:

326B.124 EXEMPTIONS.

new text begin (a) new text end The commissioner may exempt a part of a historic building occupied by the state
from the state or another building, fire, safety, or other code if the exemption is necessary
to preserve the historic or esthetic character of the building or to prevent theft, vandalism,
terrorism, or another crime. When the commissioner grants an exemption, the commissioner
shall consider providing equivalent protection. A certificate of occupancy may not be denied
because of an exemption under this section.

new text begin (b) The house of representatives and senate chambers located in the State Capitol are
exempt from any State Building Code and State Fire Code requirements pertaining to: (1)
exit sign placement at exit access doors; and (2) occupancy limit signs. The house of
representatives and senate may install exit and occupancy limit signs within the house of
representatives and senate chambers located in the State Capitol that are minimal in size
and historic in appearance as appropriate for each chamber. Any sign installed by the house
of representatives or the senate under the authority provided in this paragraph is not subject
to the approval of the commissioner.
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. 15.

Minnesota Statutes 2016, 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 Department 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 Department 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 Department 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 Department 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 Department 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 Department 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 7082.0050.

Sec. 16.

Minnesota Statutes 2016, section 446A.073, 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 deleted text begin and deleted text end new text begin .
When a project is certified by the Pollution Control Agency the authority shall new text end reserve
money for deleted text begin projects expected to proceed with construction by the end of the fiscal year deleted text end new text begin the
project new text end 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 deleted text begin in the grant application deleted text end new text begin when
the project is certified new text end 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 deleted text begin approved the as-bid costs and deleted text end 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. 17.

Minnesota Statutes 2016, 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. 18.

Minnesota Statutes 2016, 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. 19.

Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:

Subd. 2a.

Additional authorization.

In addition to the amount authorized in subdivision
2, the agency may issue up to deleted text begin $80,000,000 deleted text end new text begin $95,000,000 new text end of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.

Sec. 20.

Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:

Subd. 2b.

Additional authorization.

In addition to the amount authorized in subdivisions
2 and 2a, the agency may issue up to deleted text begin $10,000,000 deleted text end new text begin $15,000,000 new text end of housing infrastructure
bonds in one or more series to which the payments made under this section may be pledged.

Sec. 21.

Minnesota Statutes 2016, 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. 22.

Minnesota Statutes 2016, 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.

(d) new text begin 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 $2,800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.
new text 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. 23.

Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 2013,
chapter 136, section 13, is amended to read:

Subd. 6. Systemwide Redevelopment, Reuse, or Demolition

5,000,000

To abate hazardous materials, design,
construct, or improve basic infrastructure,
including 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, demolish all or portions of surplus,
nonfunctional, or deteriorated facilities and
infrastructure or to renovate surplus,
nonfunctional, or deteriorated facilities and
infrastructure to facilitate redevelopment of
Department of Human Services campuses that
the commissioner of administration is
authorized to convey to a local unit of
government under Laws 2005, chapter 20,
article 1, section 46, or other law. These
projects must facilitate the redevelopment or
reuse of these campuses and must be
implemented consistent with the
comprehensive redevelopment plans
developed and approved under Laws 2003,
First Special Session chapter 14, article 6,
section 64, subdivision 2, unless expressly
provided otherwise. If a surplus campus is sold
or transferred to a local unit of government,
unspent portions of this appropriation may be
granted to that local unit of government for
the purposes stated in this subdivision.
Notwithstanding new text begin the inclusion of the
unencumbered and unobligated balance of the
bond sale authorization and appropriation of
bond proceeds in this subdivision in the report
submitted to the legislature in January 2017
pursuant to new text end Minnesota Statutes, section
16A.642, the new text begin unencumbered and unobligated
balance of the new text end bond sale authorization and
appropriation of bond proceeds in this
subdivision deleted text begin are deleted text end new text begin , estimated to be $1,991,456.32,
is reauthorized and new text end available until December
31, deleted text begin 2016 deleted text end new text begin 2020 new text end .

Sec. 24.

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. 25.

Laws 2012, chapter 293, section 17, subdivision 4, is amended to read:

Subd. 4. Phillips Community Center

1,750,000

For a grant to the Minneapolis Park and
Recreation Board to predesign, design,
engineer, reconstruct, renovate, furnish, and
equip the Phillips Community Center indoor
competitive swimming pool and to predesign,
design, engineer, and construct an additional
indoor multipurpose family pool and facilities
associated with an aquatic center in the
community center, subject to Minnesota
Statutes, section 16A.695.

This appropriation is not available until the
commissioner determines that at least
$350,000 is committed from nonstate sources.

new text begin Notwithstanding Minnesota Statutes, section
16A.642, the bond sale authorization and
appropriation of bond proceeds for this project
are available until December 31, 2022.
new text end

Sec. 26.

Laws 2014, chapter 294, article 1, section 7, subdivision 11, is amended to read:

Subd. 11. Central Minnesota Regional Parks

500,000

For a grant to the city of Sartell to acquire new text begin land
and develop recreation facilities at Sauk River
Regional Park in the city of Sartell and to
acquire new text end up to 68 acres of land located along
the Sauk River near the confluence of the
Mississippi to serve as part of the Central
Minnesota Regional Parks and Trails. new text begin
Notwithstanding Minnesota Statutes, section
16A.642, the bond sale authorization and
appropriation of bond proceeds for this project
are available until June 30, 2020.
new text end

Sec. 27.

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. 28.

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. 29.

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. 30.

Laws 2014, chapter 294, article 1, section 21, subdivision 12, as amended by
Laws 2015, First Special Session chapter 5, article 3, section 19, is amended to read:

Subd. 12. Minneapolis - Brian Coyle Community Center

330,000

(a) For a grant to the Minneapolis Park and
Recreation Board to predesign and design the
renovation and expansion of the Brian Coyle
Community Center, subject to Minnesota
Statutes, section 16A.695. This appropriation
does not require a local match.

(b) The Minneapolis Park and Recreation
Board, the Pillsbury United Communities,
Hennepin County, institutions of higher
education, and neighborhood organizations
shall develop an agreement for the use of the
existing Brian Coyle Community Center. The
lease between the Minneapolis Park and
Recreation Board and Pillsbury United
Communities shall be reformed prior to the
expenditure of any funds for predesign and
design.

(c) The appropriation under this subdivision
may also be used toward the renovation and
expansion of the Brian Coyle Community
Center.

new text begin (d) Notwithstanding any limitation in
paragraphs (a) to (c), the appropriation under
this subdivision may be used by the
Minneapolis Park and Recreation Board for
capital costs of any recreation project or
facility in the Cedar Riverside neighborhood.
new text end

Sec. 31.

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 deleted text begin to facilitate
the construction of highway-rail grade
separations at U.S. Highway 12 and Minnesota
Highway 40 as part of deleted text end new text begin in conjunction with new text end the
Willmar Wye project new text begin as well as to re-establish
the local road network on the southwest side
of Willmar new text end .

Sec. 32.

Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7,
is amended to read:

Subd. 7. Richfield - 77th Street Underpass

10,000,000

For a grant to the city of Richfield for
right-of-way acquisition deleted text begin and construction of deleted text end new text begin
for new text end an extension of 77th Street under marked
Trunk Highway 77/Cedar Avenue in the city
of Richfield to provide local and regional
access between Richfield, the Minneapolis/St.
Paul International Airport, the city of
Bloomington, and the Mall of America. new text begin After
right-of-way acquisition is completed, the city
may use any remaining money appropriated
in this subdivision for construction of the
extension. Notwithstanding Minnesota
Statutes, section 16A.642, the bond sale
authorization and appropriation of bond
proceeds for the project in this subdivision are
available until December 31, 2021.
new text end

Sec. 33. 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, sell, and license 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. A lease shall be in a form approved by the attorney general and for a term not to
exceed 99 years. A 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, sale proceeds, or license fees paid to the commission are
appropriated to the commission.
new text end

Sec. 34. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall replace references to Minnesota
Statutes, section 123A.446, with Minnesota Statutes, section 123A.445.
new text end

Sec. 35. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 123A.446, new text end new text begin is repealed.
new text end

Sec. 36. 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

APPENDIX

Repealed Minnesota Statutes: 171-H0005-1

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.