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HF 393

as introduced - 91st Legislature (2019 - 2020) Posted on 01/28/2019 01:56pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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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; authorizing the sale and issuance of state bonds; modifying prior
appropriations; modifying programs; appropriating money; repealing natural
resources trust fund appropriation bonding authority and appropriations; amending
Minnesota Statutes 2018, sections 116P.08, subdivision 1; 462A.222, subdivision
3; 462A.37, subdivision 5, by adding a subdivision; Laws 2014, chapter 294, article
1, section 17, subdivision 12, as amended; Laws 2018, chapter 214, article 1,
sections 16, subdivisions 2, 7; 17, subdivision 7; 21, subdivision 28; 22, subdivision
4; article 3, sections 7, subdivision 1; 14; 15; repealing Minnesota Statutes 2018,
section 16A.969; Laws 2018, chapter 214, article 6, section 4.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginCAPITAL IMPROVEMENT APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the bond
proceeds fund, or another named fund, to the state agencies or officials indicated, to be
spent for public purposes. Appropriations of bond proceeds must be spent as authorized by
the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public
land and buildings and other public improvements of a capital nature, or as authorized by
the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless
otherwise specified, money appropriated in this act:
new text end

new text begin (1) 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;
new text end

new text begin (2) is available until the project is completed or abandoned subject to Minnesota Statutes,
section 16A.642; and
new text end

new text begin (3) 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 beginUNIVERSITY 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 128,000,000
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 100,000,000
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 Institute of Child Development
new text end

new text begin 28,000,000
new text end

new text begin To predesign, design, renovate, expand,
furnish, and equip the Institute of Child
Development building on the Twin Cities
campus. This project includes the demolition
and replacement of the 1968 building addition.
new text end

new text begin Subd. 4. new text end

new text begin University Share
new text end

new text begin Except for the appropriations for HEAPR and
Glensheen renewal, 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. 5. 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 beginMINNESOTA STATE COLLEGES AND
UNIVERSITIES
new text end

new text begin $
new text end
new text begin 125,000,000
new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities for higher
education asset preservation and replacement
(HEAPR), to be spent in accordance with
Minnesota Statutes, section 135A.046.
new text end

Sec. 4. new text beginPOLLUTION CONTROL AGENCY
new text end

new text begin $
new text end
new text begin 500,000
new text end

new text begin To the Pollution Control Agency for a grant
to Clay County under the solid waste capital
assistance grants program under Minnesota
Statutes, section 115A.54, to construct a new
resource recovery campus consisting of a new
solid waste transfer station and problem
materials facility. Notwithstanding Minnesota
Statutes, section 115A.54, this appropriation
does not require a nonstate contribution.
new text end

Sec. 5. new text beginBOARD OF WATER AND SOIL
RESOURCES
new text end

new text begin $
new text end
new text begin 3,000,000
new text end

new text begin (a) To the Board of Water and Soil Resources
to acquire easements on working grasslands
from landowners to restore, rehabilitate, and
enhance working lands, in order to protect soil
and water quality, support 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 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, rehabilitation, and enhancement.
new text end

Sec. 6. new text beginADMINISTRATION
new text end

new text begin $
new text end
new text begin 15,000,000
new text end

new text begin (a) This appropriation is in fiscal year 2020
from the general fund to the commissioner of
administration for equipment grants to public
stations, as defined in Minnesota Statutes,
section 129D.12, subdivision 2. Prior to this
grant distribution, the commissioner may use
up to 1.5 percent of this appropriation for
administrative costs.
new text end

new text begin (b) To qualify for an equipment grant the
station must meet the eligibility criteria
defined in Minnesota Statutes, section
129D.12. Before receiving an equipment grant,
a station must submit to the commissioner a
list of the equipment the station plans to
purchase with the equipment grant. The
commissioner may not require the station to
purchase equipment before receiving the grant
money. A station must report to the
commissioner a list of the equipment
purchased with the grant.
new text end

new text begin (c) "Equipment" means the physical
infrastructure, hardware, and software used
for the production, dissemination,
interconnection, and transmission of digital
media content, the useful life of which may
range from seven to 40 years.
new text end

new text begin (d) These grants shall be allocated as follows:
two-sevenths of these funds shall be awarded
to Twin Cities PBS; one-seventh to KSMQ
public television in Austin; one-seventh to
Pioneer Public Television in Granite Falls;
one-seventh to Lakeland PBS in Bemidji;
one-seventh to Prairie Public in
Fargo/Moorhead; and one-seventh to WDSE
public television in Duluth.
new text end

Sec. 7. new text beginTRANSPORTATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 26,000,000
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 Passenger Rail Improvement
new text end

new text begin 15,000,000
new text end

new text begin (a) For intercity passenger rail implementation
on phase I corridors identified in the 2015
update to the state rail plan under Minnesota
Statutes, section 174.03, subdivision 1b. This
appropriation is available for development of
rail investment performance measures, project
cost estimating, feasibility studies, alternatives
analysis, program delivery, and capital
projects, including but not limited to: design;
preliminary and final engineering;
environmental analysis and mitigation;
acquisition of land and right-of-way; and
construction. Projects include the Northern
Lights Express service between Minneapolis
and St. Paul and Duluth, a second daily
Amtrak train between Minneapolis and St.
Paul and Chicago, Twin Cities to Milwaukee
high speed passenger rail service, and
extension of the Northstar Commuter Rail
service to St. Cloud.
new text end

new text begin (b) Of this appropriation, $500,000 is from
the general fund for a feasibility study and
alternatives analysis of the corridor from the
Twin Cities metropolitan area to Northfield
and Albert Lea, and is available beginning
July 1, 2019.
new text end

new text begin (c) Project development must conform with
federal requirements as necessary to maximize
availability of federal funds. Notwithstanding
any law to the contrary, a portion or phase of
an intercity passenger rail project may be
accomplished with one or more state
appropriations, and an intercity passenger rail
project need not be completed with any one
appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Ramsey County Regional Railroad
Authority
new text end

new text begin 1,000,000
new text end

new text begin For a grant to the Ramsey County Regional
Railroad Authority for environmental analysis
and design of capital improvements associated
with grade separation of Union Pacific and
Burlington Northern Santa Fe track between
Westminster Junction and Division
Street/Hoffman Interlocking. No nonstate
match is required.
new text end

new text begin Subd. 4. new text end

new text begin Port Development Assistance
new text end

new text begin 10,000,000
new text end

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

Sec. 8. new text beginMETROPOLITAN 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 53,100,000
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 Transit Capital Improvement Program
new text end

new text begin 50,000,000
new text end

new text begin This appropriation may be used by the
Metropolitan Council or for grants to Twin
Cities metropolitan area political subdivisions
for preliminary engineering, engineering,
environmental assessment, environmental
work, design, right-of-way acquisition, and
construction to advance transit in the
metropolitan area in accordance with the
Metropolitan Council's adopted Transportation
Policy Plan. The council shall allocate transit
capital development resources so as to achieve
geographic balance within the region to the
extent possible.
new text end

new text begin Subd. 3. new text end

new text begin Ramsey County; Battle Creek Winter
Recreation Area
new text end

new text begin 3,100,000
new text end

new text begin For a grant to Ramsey County for design and
construction of a winter recreation area in
Battle Creek Regional Park. This appropriation
is not available until the commissioner of
management and budget determines that at
least $1,100,000 is contributed to the project
from nonstate sources.
new text end

Sec. 9. new text beginHUMAN SERVICES
new text end

new text begin $
new text end
new text begin 1,190,000
new text end

new text begin This appropriation is in fiscal year 2020 from
the general fund to the commissioner of human
services for a grant to Family Tree Clinic to
acquire real property in Minneapolis, design,
renovate, construct, furnish, and equip Family
Tree Clinic, and to pay for any other
capitalizable costs related to the project. This
appropriation is not available until the
commissioner of management and budget
determines that at least $2,200,000 is
committed to Family Tree Clinic from
nonstate sources to support the project.
Nonstate money spent on the project before
the effective date of this section counts toward
the nonstate contribution. This appropriation
is available until June 30, 2022.
new text end

Sec. 10. new text beginEMPLOYMENT 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 20,034,000
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 Chatfield; Center for the Arts
new text end

new text begin 7,985,000
new text end

new text begin For a grant to the city of Chatfield economic
development authority to predesign, design,
renovate, construct, furnish, and equip Phase
III of the Chatfield Center for the Arts in the
city of Chatfield, which is generally described
as the renovation of the 1916 high school and
the installation of a linking structure and
related improvements to serve both the 1936
auditorium building and the 1916 school
building. The renovation shall include interior,
exterior, and amenity improvements within
the high school building; improvements to the
electrical, plumbing, and HVAC systems
throughout the property; and general
improvements to the buildings and land that
are known as the Chatfield Center for the Arts,
currently owned by the economic development
authority. Money, land and buildings, and
in-kind contributions provided to the center
before the enactment of this section are
considered to be sufficient local match, and
no further nonstate match is required.
new text end

new text begin Subd. 3. new text end

new text begin Hennepin County; Avivo
new text end

new text begin 1,799,000
new text end

new text begin For a grant to Hennepin County for phase 1
of the Avivo regional career and employment
center project in Minneapolis, subject to
Minnesota Statutes, section 16A.695. Phase
1 includes geotechnical and environmental
investigation, permitting, demolition, and site
work; predesign and design of the renovation
and expansion of a building; and predesign
and design for the replacement of or
improvements to building systems on the
Avivo campus, including HVAC, mechanical,
electrical, and accessibility improvements. No
match is required.
new text end

new text begin Subd. 4. new text end

new text begin Hennepin County; Children's Theatre
Company
new text end

new text begin 4,000,000
new text end

new text begin For a grant to Hennepin County for the same
purposes and subject to the same conditions
as in Laws 2018, chapter 214, article 1, section
21, subdivision 11. This appropriation is not
available until the commissioner of
management and budget determines that at
least $4,000,000 has been committed to
complete the project from nonstate sources.
new text end

new text begin Subd. 5. new text end

new text begin St. Paul; International Institute of
Minnesota
new text end

new text begin 5,500,000
new text end

new text begin For a grant to the city of St. Paul to renovate
and expand the International Institute of
Minnesota. This project includes remediation
of contaminated soil, renovation of the existing
building, construction of an addition to the
building, and furnishing and equipping the
renovated and expanded facility. This
appropriation is not available until the
commissioner of management and budget
determines that at least an equal amount has
been committed to complete the project from
nonstate sources. Amounts spent before the
effective date of this subdivision for
acquisition of real property, environmental
testing and remediation, predesign, and design
count toward the nonstate contribution.
new text end

new text begin Subd. 6. new text end

new text begin St. Paul; Minnesota Humanities Center
new text end

new text begin 750,000
new text end

new text begin For a grant to the city of St. Paul for asset
preservation of the Minnesota Humanities
Center's main facility, including capital
improvements for building envelope,
foundation, and structural integrity, and for
mechanical systems upgrades, including
heating, ventilation, and cooling, subject to
Minnesota Statutes, section 16A.695. This
appropriation is not available until the
commissioner of management and budget
determines that at least an equal amount has
been committed to complete the project from
nonstate sources.
new text end

Sec. 11. new text beginMINNESOTA HOUSING FINANCE
AGENCY
new text end

new text begin $
new text end
new text begin 60,000,000
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. 12. new text beginMINNESOTA HISTORICAL
SOCIETY
new text end

new text begin $
new text end
new text begin 15,000,000
new text end

new text begin To the Minnesota Historical Society for the
Historic Fort Snelling Visitor Center and is
added to and for the same purposes as in Laws
2018, chapter 214, article 1, section 24,
subdivision 3.
new text end

Sec. 13. new text beginBOND SALE EXPENSES
new text end

new text begin $
new text end
new text begin 430,000
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. 14. new text beginBOND SALE AUTHORIZATION.
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 $430,564,000 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. 15. new text beginBOND 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, 2021, no more than
$1,225,610,000 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. 16.

Minnesota Statutes 2018, section 462A.222, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) Projects will be awarded tax credits in two
competitive rounds on an annual basis. The date for applications for each round must be
determined by the agency. No allocating agency may award tax credits prior to the application
dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal
Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax
credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4)
of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the
project satisfies the requirements of the allocating agency's qualified allocation plan. For
projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds
for the project, or the issuer of the bonds for the project is located outside the jurisdiction
of a city or county that has received reserved tax credits, the applicable allocation plan is
the agency's qualified allocation plan.

(d)deleted text begin(1)deleted text end To maximize the resources available for and increase the supply of affordable
housing in Minnesota by leveraging the benefits to Minnesota from the use of tax-exempt
bonds to finance multifamily housing and to allow local units of government more flexibility
to address specific affordable housing needs in their communities, the agency shall make
residential rental housing projects financed with an allocation of tax-exempt bonds under
chapter 474A the highest strategic priority for tax credits under the agency's qualified
allocation plan under section 42(m)(1)(D) of the Internal Revenue Code of 1986, as amended.

deleted text begin (2) For projects eligible for an allocation of tax credits under section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, the agency's qualified allocation plan and
other related agency guidance and requirements:
deleted text end

deleted text begin (i) shall not include any selection criteria other than (A) the criteria of section 42(m)(1)(C)
of the Internal Revenue Code of 1986, as amended, and (B) whether the project has received
an allocation of tax-exempt bonds under chapter 474A, with subitem (B) as the most
important criteria;
deleted text end

deleted text begin (ii) shall grant projects receiving an allocation of tax-exempt bonds under chapter 474A
the highest possible preference and, to the extent applicable, ahead of any preference
described in section 42(m)(1)(B) of the Internal Revenue Code of 1986, as amended;
deleted text end

deleted text begin (iii) shall exclude any per-unit cost limitations, cost reasonableness, or other similar
restrictions for residential rental housing projects financed with an allocation of tax-exempt
bonds under chapter 474A; and
deleted text end

deleted text begin (iv) shall not adopt or impose any additional rules, requirements, regulations, or
restrictions other than those required by section 42 of the Internal Revenue Code of 1986,
as amended, regarding the allocation of credits.
deleted text end

deleted text begin Each developer of a residential rental housing project that has received an allocation of
tax-exempt bonds under chapter 474A and the proposed issuer of such tax-exempt bonds
shall have standing to challenge the agency's qualified allocation plan for failure to comply
with this clause.
deleted text end

deleted text begin In the event of any conflict or inconsistency between this paragraph and section 462A.04,
the provisions of this paragraph shall govern and control. The provisions of paragraph (d)
shall not apply to any allocating agency other than the agency.
deleted text end

(e) For applications submitted for the first round, an allocating agency may allocate tax
credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the
extended use period, at least 75 percent of the total tax credit units are single-room
occupancy, efficiency, or one bedroom units and which are affordable by households whose
income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not
restricted to persons who are 55 years of age or older and in which, for the term of the
extended use period, at least 75 percent of the tax credit units contain two or more bedrooms
and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for
revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need
and which are in short supply in the local housing market as evidenced by credible data
submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for
the term of the extended use period, a percentage of the units are set aside and rented to
persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision
20
, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section
6001, paragraph (5), as amended through December 31, 1990;

(iii) who have been assessed as drug dependent persons as defined in section 254A.02,
subdivision 5
, and are receiving or will receive care and treatment services provided by an
approved treatment program as defined in section 254A.02, subdivision 2;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life
activities, if at least 50 percent of the units in the project are accessible as provided under
Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve
existing subsidized housing, if the use of tax credits is necessary to prevent conversion to
market rate use or to remedy physical deterioration of the project which would result in loss
of existing federal subsidies; or

(5) projects financed by the Farmers Home Administration, or its successor agency,
which meet statewide distribution goals.

(f) Before the date for applications for the final round, the allocating agencies other than
the agency shall return all uncommitted and unallocated tax credits to a unified pool for
allocation by the agency on a statewide basis.

(g) Unused portions of the state ceiling for low-income housing tax credits reserved to
cities and counties for allocation may be returned at any time to the agency for allocation.

(h) If an allocating agency determines, at any time after the initial commitment or
allocation for a specific project, that a project is no longer eligible for all or a portion of the
low-income housing tax credits committed or allocated to the project, the credits must be
transferred to the agency to be reallocated pursuant to the procedures established in
paragraphs (f) to (h); provided that if the tax credits for which the project is no longer eligible
are from the current year's annual ceiling and the allocating agency maintains a waiting list,
the allocating agency may continue to commit or allocate the credits until not later than the
date of applications for the final round, at which time any uncommitted credits must be
transferred to the agency.

Sec. 17.

Minnesota Statutes 2018, section 462A.37, is amended by adding a subdivision
to read:


new text begin Subd. 2f. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2, 2a, 2b, 2c, 2d, and 2e, the agency may issue up to $90,000,000 in housing infrastructure
bonds in one or more series to which the payments under this section may be pledged.
new text end

Sec. 18.

Minnesota Statutes 2018, 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, 2b, 2c, 2d, deleted text beginanddeleted text end 2enew text begin, and 2fnew 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) Each July 15, beginning in 2019 and through 2040, 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.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 2dnew text begin and 2enew text end 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). The amounts necessary to make the transfers are appropriated from the general fund to
the commissioner of management and budget.

(f) Each July 15, beginning in deleted text begin2020deleted text endnew text begin 2021new text end and through deleted text begin2041deleted text endnew text begin 2042new text end, if any housing
infrastructure bonds issued under subdivision deleted text begin2edeleted text endnew text begin 2fnew text end 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). The amounts necessary to make the transfers are appropriated from the general fund to
the commissioner of management and budget.

(g) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 19. new text beginEFFECTIVE 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

TRUST FUND APPROPRIATION BONDING
CONVERTED TO GO BONDING

Section 1. new text beginCAPITAL IMPROVEMENT APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the bond
proceeds fund, or another named fund, to the state agencies or officials indicated, to be
spent for public purposes. Appropriations of bond proceeds must be spent as authorized by
the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public
land and buildings and other public improvements of a capital nature, or as authorized by
the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless
otherwise specified, money appropriated in this act:
new text end

new text begin (1) 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;
new text end

new text begin (2) is available until the project is completed or abandoned subject to Minnesota Statutes,
section 16A.642;
new text end

new text begin (3) 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; and
new text end

new text begin (4) is available for a grant to a political subdivision after the commissioner of management
and budget determines that an amount sufficient to complete the project as described in this
act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
new text end

new text begin APPROPRIATIONS
new text end

Sec. 2. new text beginNATURAL 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 13,000,000
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 3,419,000
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, 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.
new text end

new text begin Subd. 3. new text end

new text begin Elk River - Lake Orono
new text end

new text begin 1,500,000
new text end

new text begin For a grant to the city of Elk River to dredge
Lake Orono.
new text end

new text begin Subd. 4. new text end

new text begin South St. Paul - Seidl's Lake
new text end

new text begin 781,000
new text end

new text begin For a grant to the city of South St. Paul for
capital improvements to improve the water
quality of Seidl's Lake. The capital
improvements include design, engineering,
construction, and equipping of a storm water
lift station to discharge excess storm water
into the city of South St. Paul's storm sewer
system to minimize the fluctuating water
levels of the lake. This project may be
implemented jointly by the cities of South St.
Paul, Inver Grove Heights, and West St. Paul.
new text end

new text begin Subd. 5. new text end

new text begin Lake Redwood Reclamation
new text end

new text begin 7,300,000
new text end

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

Sec. 3. new text beginPOLLUTION CONTROL AGENCY
new text end

new text begin $
new text end
new text begin 6,000,000
new text end

new text begin To the Pollution Control Agency to design
and construct remedial systems, including
cleanup and removal of a leaking hazardous
waste pit and protection of groundwater, at
the Waste Disposal Engineering site in Anoka
County in accordance with the closed landfill
program under Minnesota Statutes, sections
115B.39 to 115B.42.
new text end

Sec. 4. new text beginBOARD OF WATER AND SOIL
RESOURCES
new text end

new text begin $
new text end
new text begin 10,000,000
new text end

new text begin (a) To the Board of Water and Soil Resources
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.
new text end

new text begin (d) Of this appropriation, up to five percent
may be used for restoration, rehabilitation, and
enhancement; and no more than $1,000,000
may be used to acquire working lands
easements.
new text end

Sec. 5. new text beginMETROPOLITAN COUNCIL
new text end

new text begin $
new text end
new text begin 10,000,000
new text end

new text begin To the Metropolitan Council 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

Sec. 6. new text beginPUBLIC 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 59,000,000
new text end

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

new text begin Subd. 2. new text end

new text begin State Match for Federal Grants
new text end

new text begin 6,000,000
new text end

new text begin To match federal grants for the clean water
revolving fund for wastewater treatment under
Minnesota Statutes, section 446A.07. 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 14,652,000
new text end

new text begin For grants to eligible municipalities under the
wastewater infrastructure funding program
under Minnesota Statutes, section 446A.072,
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 Subd. 4. new text end

new text begin Point Source Implementation Grants
Program
new text end

new text begin 38,348,000
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

Sec. 7. new text beginBOND SALE EXPENSES
new text end

new text begin $
new text end
new text begin 98,000
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. 8. new text beginBOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds fund, the
commissioner of management and budget shall sell and issue bonds of the state in an amount
up to $98,098,000 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. 9.

Minnesota Statutes 2018, section 116P.08, subdivision 1, is amended to read:


Subdivision 1.

Expenditures.

(a) Money in the trust fund may be spent only for:

(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;

(2) research that contributes to increasing the effectiveness of protecting or managing
the state's environment or natural resources;

(3) collection and analysis of information that assists in developing the state's
environmental and natural resources policies;

(4) enhancement of public education, awareness, and understanding necessary for the
protection, conservation, restoration, and enhancement of air, land, water, forests, fish,
wildlife, and other natural resources;

(5) capital projects for the preservation and protection of unique natural resources;

(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
resources that otherwise may be substantially impaired or destroyed in any area of the state;

(7) administrative and investment expenses incurred by the State Board of Investment
in investing deposits to the trust fund;new text begin and
new text end

(8) administrative expenses subject to the limits in section 116P.09deleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (9) to pay principal and interest on special appropriation trust fund bonds issued pursuant
to section 16A.969 and other law.
deleted text end

(b) In making recommendations for expenditures from the trust fund, the commission
shall give priority to funding programs and projects under paragraph (a), clauses (1) and
(6). Any requests for proposals issued by the commission shall clearly indicate these
priorities.

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 16A.969, new text end new text begin and new text end new text begin Laws 2018, chapter 214, article 6, section
4,
new text end new text begin are repealed.
new text end

Sec. 11. new text beginEFFECTIVE DATE.
new text end

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

ARTICLE 3

CORRECTIONS, CHANGES TO PRIOR ACTS

Section 1.

Laws 2014, chapter 294, article 1, section 17, subdivision 12, as amended by
Laws 2017, First Special Session chapter 8, article 2, section 29, is amended to read:


Subd. 12.

West St. Paul - River to River Regional
Greenway

2,000,000

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. A nonstate match is not required.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, 2021.
new text end

Sec. 2.

Laws 2018, chapter 214, article 1, section 16, subdivision 2, is amended to read:


Subd. 2.

Local Road Improvement Fund Grants

78,600,000

(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.

(b) Of this amount, $13,500,000 is for a grant
to the city of Dayton for design, engineering,
environmental analysis, property and easement
acquisition, construction, and reconstruction
of local roads in conjunction with an
interchange on marked Interstate Highway 94
near Hennepin County State-Aid Highway
101, known as Brockton Lane, in Dayton.

(c) Of this amount, $6,100,000 is for a grant
to the city of Inver Grove Heights to
predesign, design, engineer, acquire
right-of-way property and temporary and
permanent easements, inspect, and construct
or reconstruct: (1) realignment of Dakota
County State-Aid Highway 63, known as
Argenta Trail, in Inver Grove Heights, from
northerly of its intersection with Amana Trail
to the anticipated future alignment of 65th
Street, then west to the existing Argenta Trail
alignment, and in anticipation of the
development of an interchange of Argenta
Trail and marked Interstate Highway 494; and
(2) expansion from two lanes to four lanes of
Dakota County State-Aid Highway 26, known
as 70th Street West, in Inver Grove Heights,
from the border with Eagan deleted text begintodeleted text endnew text begin throughnew text end the
intersection with Argenta Trail as realignednew text begin,
to the intersection of Highway 26 with Trunk
Highway 3, known as Robert Street
new text end.

(d) Of this amount, $9,000,000 is for a grant
to Carver County following a jurisdictional
transfer to Carver County of the affected
segment of marked Trunk Highway 101. The
appropriation may be used for design,
right-of-way acquisition, engineering, and
reconstruction of the segment transferred to
the county that is between Pioneer Trail and
Flying Cloud Drive, including grade
separation of a multipurpose pedestrian and
bicycle trail from the segment for the
Minnesota River Bluffs Regional Trail and a
regional trail along marked Trunk Highway
101.

Sec. 3.

Laws 2018, chapter 214, article 1, section 16, subdivision 7, is amended to read:


Subd. 7.

Brooklyn Park - Trunk Highway 169
and 101st Avenue Interchange Project

4,000,000

$4,000,000 is from the bond proceeds account
in the state transportation fund for new text begina grant to
the city of Brooklyn Park for
new text endpreliminary and
final design, engineering, environmental
analysis, right-of-way acquisition, and
construction of an interchange located at
Trunk Highway 169 and 101st Avenue in the
city of Brooklyn Park.

Sec. 4.

Laws 2018, chapter 214, article 1, section 17, subdivision 7, is amended to read:


Subd. 7.

White Bear Lake Trail and Route

4,000,000

(a) To the Metropolitan Council for grants to
complete design and construction of a multiuse
paved trail and route for pedestrians, bicycles,
and wheelchairs around White Bear Lake in
Ramsey and Washington Counties.

(b) $2,600,000 of this appropriation is for a
grant to Ramsey County to design and
construct trail improvements, consistent with
the completed preliminary engineering, along
South Shore Boulevard between White Bear
Avenue and marked Trunk Highway 120 and
to pave an existing dirt path within the Ramsey
County Beach and Water Park from the
entrance to the park at Highway 96 to the
northeast edge of the park.

(c) $1,400,000 of this appropriation is for a
grant to the city of Mahtomedi to deleted text begindesign and
construct and
deleted text end design, construct, and equip
elements of the trail and route along or
proximate to Birchwood Road, Wildwood
Beach Road, and on or in the proximity of
Briarwood Road, consistent with the
completed preliminary engineering, and final
design and specification, subject to approval
of the commissioner of transportation with
regard to elements of the trail and route that
are within or adjacent to the right-of-way of
marked Trunk Highway 244.

Sec. 5.

Laws 2018, chapter 214, article 1, section 21, subdivision 28, is amended to read:


Subd. 28.

St. Paul - Southeast Asian Language
Job Training Facilities

5,500,000

For a grant to the city of St. Paul to predesign,
design, renovate, construct, furnish, and equip
a bus driver and mechanics training facility
on deleted text beginAckerdeleted text endnew text begin Sycamorenew text end Street in St. Paul for
training drivers and mechanics through
programming primarily in the Southeast Asian
languages, and to predesign, design, renovate,
construct, furnish, and equip a training facility
on Plato Avenue in St. Paul deleted text beginto be used during
renovation of the Acker Street facility and
deleted text end for
use as a training facility for health care,
manufacturing, and information technology
jobs through programming primarily in the
Southeast Asian languages. This appropriation
may be used to acquire property for these
purposes. The city of St. Paul may enter into
a lease or management agreement with a
nonprofit corporation for either or both of
these facilities under Minnesota Statutes,
section 16A.695.

Sec. 6.

Laws 2018, chapter 214, article 1, section 22, subdivision 4, is amended to read:


Subd. 4.

Arden Hills - Water Main

500,000

For a grant to the city of Arden Hills to install
a water main extending along Highway deleted text begin96deleted text endnew text begin 10new text end,
from Highway deleted text begin10deleted text endnew text begin 96new text end to Interstate Highway
35W.

Sec. 7.

Laws 2018, chapter 214, article 3, section 7, subdivision 1, is amended to read:


Subdivision 1.

Appropriation.

$2,000,000 is appropriated from the bond proceeds
account in the state transportation fund to the commissioner of transportation new text beginfor a grant to
the city of Ramsey
new text endfor engineering, design, and right-of-way acquisition required for
construction of an underpass on Anoka County State-Aid Highway 56, otherwise known
as Ramsey Boulevard, under the Burlington new text beginNorthern new text endSanta Fe Railroad in the city of Ramsey
and associated improvements on U.S. Trunk Highway 10/169 in the city of Ramsey.

Sec. 8.

Laws 2018, chapter 214, article 3, section 14, is amended to read:


Sec. 14. APPLICATION.

Appropriations in this article are subject to article 1, section 1. The appropriation in
section deleted text begin9deleted text endnew text begin 8new text end is from the local road improvement fund.

Sec. 9.

Laws 2018, chapter 214, article 3, section 15, is amended to read:


Sec. 15. REDUCTIONS.

The following appropriations are reduced in article 1:

(1) $2,900,000 from the Merit Center;

(2) $2,000,000 from TED;

(3) $2,000,000 from Corrections Asset Prevention; and

(4) $15,000,000 from deleted text beginLocal Road and Bridgedeleted text endnew text begin the appropriation in article 1, section 16,
subdivision 2
new text end.

Sec. 10. new text beginEFFECTIVE DATE.
new text end

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

APPENDIX

Repealed Minnesota Statutes: 19-2357

16A.969 ENVIRONMENT AND NATURAL RESOURCES TRUST FUND 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 environment and natural resources trust fund in any biennium for debt service due with respect to obligations described in subdivision 2;

(2) proceeds of the sale of obligations described in subdivision 2;

(3) payments received for that purpose under agreements and ancillary arrangements described in subdivision 2, paragraph (d); 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.

(d) "Environment and natural resources trust fund" or "trust fund" means the fund established under the Minnesota Constitution, article XI, section 14, and governed by that section and chapter 116P.

Subd. 2.

Authorization to issue appropriation bonds; accounts.

(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 and in amounts as provided by law. This authorization meets the public purposes established by the Minnesota Constitution, article XI, section 14, and chapter 116P and shall be a supplement to the traditional sources of funding for environment and natural resources activities.

(b) The special appropriation trust fund bond proceeds fund is established in the state treasury. Proceeds of the appropriation bonds issued and sold must be credited to the special appropriation trust fund bond proceeds fund. A bond payments account is established in the special appropriation trust fund bond proceeds fund. All income from investment of the bond proceeds, as estimated by the commissioner, must be deposited into the account and is appropriated to the commissioner for the payment of principal and interest on the appropriation bonds.

(c) 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 20 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.

(d) 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.

(e) 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.

(f) The appropriation bonds are not subject to chapter 16C.

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 trust fund or, if applicable, the special appropriation trust fund 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 for debt service and other purposes.

Notwithstanding section 116P.05, subdivision 2, paragraph (b), the amount needed to pay principal and interest on appropriation bonds issued under this section and as authorized by other law is appropriated each fiscal year from legally available amounts in the environment and natural resources trust 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 appropriation trust fund bond proceeds fund. Investment income earned on proceeds of the appropriation bonds issued under this section shall be deposited in the bond payments account and is appropriated to the commissioner.

Subd. 8.

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.

Repealed Minnesota Session Laws: 19-2357

Laws 2018, chapter 214, article 6, section 4

Sec. 4. new text beginSPECIAL APPROPRIATION TRUST FUND BONDS; AUTHORIZATION; APPROPRIATIONS.new text end

new text begin Subdivision 1. new text end

new text begin Appropriations; general. new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the special appropriation trust fund bond proceeds fund to the state agencies or officials indicated, to be spent for public purposes. Money appropriated in this section must be spent as authorized by the Minnesota Constitution, article XI, section 14, Minnesota Statutes, section 16A.969, and unless otherwise specified, as authorized by and subject to the requirements of Minnesota Statutes, chapter 116P. Unless otherwise specified, money appropriated in this section is available until June 30, 2022. Money remaining from an appropriation for a project that is completed or abandoned cancels to the bond payments account established for such purpose in the special appropriation trust fund bond proceeds fund, or if not needed for debt service, to the environment and natural resources trust fund. new text end

new text begin Subd. 2. new text end

new text begin Legislative findings; appropriations supplement other sources of funding for projects. new text end

new text begin The legislature finds that the appropriations in this section are consistent with the requirement in Minnesota Statutes, section 116P.03, that expenditures of money from the environment and natural resources trust fund are for public purposes that supplement traditional sources of money to pay for expenditures authorized by Minnesota Statutes, section 116P.08, subdivision 1. Further, the legislature finds that notwithstanding any limitation on use of trust fund money in Minnesota Statutes, chapter 116P, the appropriations in this section are for a public purpose and supplement other sources of money to help pay for projects that are consistent with the purposes of the trust fund. new text end

new text begin Subd. 3. new text end

new text begin Bond sale authorization. new text end

new text begin To provide the money appropriated in this section, and to pay debt service including capitalized interest, costs of issuance, costs of credit enhancement, or make payments under other agreements entered into under Minnesota Statutes, section 16A.969, the commissioner of management and budget shall sell and issue up to $98,000,000, net of costs of issuance, of special appropriation trust fund bonds, in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, section 16A.969. new text end

new text begin Subd. 4. new text end

new text begin Management and budget; bond sale expenses; annual debt service. new text end

new text begin Up to $2,940,000 is appropriated in fiscal year 2019 and up to $7,840,000 is appropriated each fiscal year beginning in fiscal year 2020 and through fiscal year 2039, from the environment and natural resources trust fund to the commissioner of management and budget to pay principal and interest on appropriation bonds issued under this section, as provided in Minnesota Statutes, section 16A.969, subdivision 7. new text end

new text begin Subd. 5. new text end

new text begin Natural Resources new text end

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

new text begin (1) Natural Resources Asset Preservation new text end new text begin 3,419,000 new text end

new text begin For the renovation of state-owned facilities and recreational assets within units of the outdoor recreation system classified under Minnesota Statutes, section 86A.05, operated by the commissioner of natural resources to be spent in accordance with Minnesota Statutes, section 84.946. Notwithstanding Minnesota Statutes, section 84.946, 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. new text end

new text begin (2) new text beginElk River - Lake Orononew text end new text end new text begin 1,500,000 new text end

new text begin For a grant to the city of Elk River to dredge Lake Orono. new text end

new text begin (3) new text beginSouth St. Paul - Seidl's Lakenew text end new text end new text begin 781,000 new text end

new text begin For a grant to the city of South St. Paul for capital improvements to improve the water quality of Seidl's Lake. The capital improvements include design, engineering, construction, and equipping of a storm water lift station to discharge excess storm water into the city of South St. Paul's storm sewer system to minimize the fluctuating water levels of the lake. This project would be implemented jointly by the cities of South St. Paul, Inver Grove Heights, and West St. Paul. new text end

new text begin Subd. 6. new text end

new text begin Pollution Control Agency new text end

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

new text begin (1) Anoka County-Waste Disposal Engineering Closed Landfill new text end new text begin 6,000,000 new text end

new text begin Notwithstanding Minnesota Statutes, section 116P.08, subdivision 2, to design and construct remedial systems, including cleanup and removal of a leaking hazardous waste pit and protection of groundwater, at the Waste Disposal Engineering site in Anoka County in accordance with the closed landfill program under Minnesota Statutes, sections 115B.39 to 115B.42. new text end

new text begin (2) Lake Redwood Reclamation new text end new text begin 7,300,000 new text end

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

new text begin Subd. 7. new text end

new text begin Board of Water and Soil Resources 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 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. new text end

new text begin (d) Of this appropriation, up to five percent may be used for restoration, rehabilitation, and enhancement; and no more than $1,000,000 may be used to acquire working lands easements. new text end

new text begin Subd. 8. new text end

new text begin Public Facilities Authority new text end

new text begin Notwithstanding Minnesota Statutes, section 116P.08, subdivision 2, to the Public Facilities Authority for the purposes specified in this section. new text end

new text begin (1) State Match for Federal Grants new text end new text begin 6,000,000 new text end

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

new text begin (2) Water Infrastructure Funding Program new text end new text begin 14,652,000 new text end

new text begin For grants to eligible municipalities under the wastewater infrastructure funding program under Minnesota Statutes, section 446A.072, 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 (3) Point Source Implementation Grants Program new text end new text begin 38,348,000 new text end

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

new text begin Subd. 9. new text end

new text begin Metropolitan Council new text end

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

new text begin Metropolitan Regional Parks and Trails Capital Improvements new text end new text begin 10,000,000 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