1.1 	A bill for an act
1.2 	relating to capital improvements; authorizing spending to acquire and better 
1.3 	public land and buildings and for other improvements of a capital nature with 
1.4 	certain conditions; establishing programs; authorizing the sale and issuance of 
1.5 	state bonds; modifying previous appropriations; authorizing Cook County to form 
1.6 	a district for the construction of water facilities and provision of water service; 
1.7 	authorizing the commissioner of natural resources to make certain acquisitions 
1.8 	of land or interests in land; appropriating money;amending Minnesota Statutes 
1.9 	2010, section 462A.21, by adding a subdivision; Laws 2006, chapter 258, 
1.10 	sections 7, subdivision 23, as amended; 17, subdivision 3; Laws 2008, chapter 
1.11 	179, sections 7, subdivision 27, as amended; 17, subdivision 4; 19, subdivision 4, 
1.12 	as amended; 21, subdivision 15, as amended; Laws 2009, chapter 93, article 1, 
1.13 	section 12, subdivision 2; Laws 2010, chapter 189, sections 18, subdivision 5; 21, 
1.14 	subdivision 4, as amended; 24, subdivision 3; Laws 2011, First Special Session 
1.15 	chapter 12, sections 3, subdivisions 7, 8; 14, subdivision 2; 19; 22; proposing 
1.16 	coding for new law in Minnesota Statutes, chapters 116J; 462A; repealing Laws 
1.17 	2011, chapter 107, section 101; Minnesota Rules, part 8895.0700, subpart 1.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.20 	The sums shown in the column under "Appropriations" are appropriated from the 
1.21 	bond proceeds fund, or another named fund, to the state agencies or officials indicated, 
1.22 	to be spend for public purposes. Appropriations of bond proceeds must be spent as 
1.23 	authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 
1.24 	and better public land and buildings and other public improvements of a capital nature or 
1.25 	as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), 
1.26 	or article XIV. Unless otherwise specified, money appropriated in this act for a capital 
1.27 	program or project may be used to pay state agency staff costs that are attributed directly 
1.28 	to the capital program or project in accordance with accounting policies adopted by the 
1.29 	commissioner of management and budget. Unless otherwise specified, the appropriations 
2.1 	in this act are available until the project is completed or abandoned subject to Minnesota 
2.2 	Statutes, section 16A.642.

2.3	SUMMARY
	
2.4	University of Minnesota
	$
	30,000,000
	
2.5	Minnesota State Colleges and Universities
		30,000,000
	
2.6	Natural Resources
		30,000,000
	
2.7	Administration
		221,000,000
	
2.8	Transportation
		102,500,000
	
2.9	Public Facilities Authority
		20,000,000
	
2.10	Bond Sale Expenses
		433,000
	
2.11	TOTAL
	$
	 433,933,000
	
2.12	Bond Proceeds Fund (General Fund Debt Service)
		333,933,000
	
2.13	State Transportation Fund
		 100,000,000

2.14						APPROPRIATIONS

2.15	Sec. 2. UNIVERSITY OF MINNESOTA 
 			$
	30,000,000
	
2.16 	To the Board of Regents of the University of 
2.17 	Minnesota, to be spent in accordance with 
2.18 	Minnesota Statutes, section 135A.046.

2.19
2.20	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES 
 			$
	30,000,000
	
2.21 	To the Board of Trustees of the Minnesota 
2.22 	State Colleges and Universities, to be spent 
2.23 	in accordance with Minnesota Statutes, 
2.24 	section 135A.046.

2.25	Sec. 4. NATURAL RESOURCES
 			$
	30,000,000
	
2.26 	To the commissioner of natural resources 
2.27 	for the state share of flood hazard 
2.28 	mitigation grants for publicly owned capital 
2.29 	improvements to prevent or alleviate flood 
2.30 	damage under Minnesota Statutes, section 
2.31 	103F.161. Levee projects, to the extent 
2.32 	practical, shall meet the state standard of 
2.33 	three feet above the 100-year flood elevation. 
2.34 	The commissioner shall determine project 
2.35 	priorities as appropriate, based on need. To 
3.1 	the extent that the cost of a project exceeds 
3.2 	two percent of the median household income 
3.3 	in the municipality multiplied by the number 
3.4 	of households in the municipality, this 
3.5 	appropriation is also for the local share of the 
3.6 	project.

3.7	Sec. 5. ADMINISTRATION
 			$
	221,000,000
	
3.8 	To the commissioner of administration to 
3.9 	design the repair and restoration of the State 
3.10 	Capitol building, including preparation of 
3.11 	design guidelines and a historic structures 
3.12 	report, to conduct hazardous materials 
3.13 	abatement, and to restore and improve the 
3.14 	Capitol building. The work is limited to that 
3.15 	necessary to restoring building integrity and 
3.16 	structural soundness. This appropriation 
3.17 	must not be used for furnishings or 
3.18 	equipment unrelated to structural integrity 
3.19 	and soundness. Minnesota Statutes, section 
3.20 	16B.35, does not apply to this section. 
3.21 	Construction work must be sequenced 
3.22 	so that the House and Senate chambers 
3.23 	are inaccessible during no more than 
3.24 	one even-numbered year session. This 
3.25 	appropriation is available in the following 
3.26 	amounts: $60,000,000 in each fiscal year 
3.27 	2013 to 2015 and $41,000,000 in fiscal 
3.28 	year 2016. For the purposes of Minnesota 
3.29 	Statutes, section 16A.642, the first day of 
3.30 	the fiscal year in which an amount is first 
3.31 	available, as provided in this paragraph, is 
3.32 	the date the commissioner of management 
3.33 	and budget shall use in place of the date of 
3.34 	enactment of this section. 

4.1	Sec. 6. TRANSPORTATION

4.2	Subdivision 1.Total Appropriation
 			$
	102,500,000
	
4.3 	This appropriation is to the commissioner of 
4.4 	transportation for the purposes specified in 
4.5 	this section.

4.6
4.7	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				50,000,000
	
4.8 	This appropriation is from the bond proceeds 
4.9 	account in the state transportation fund 
4.10 	to match federal money and to replace 
4.11 	or rehabilitate local deficient bridges as 
4.12 	provided in Minnesota Statutes, section 
4.13 	174.50. To the extent practicable, the 
4.14 	commissioner shall expend the funds as 
4.15 	provided under Minnesota Statutes, section 
4.16 	174.50, subdivisions 6c and 7, paragraph (c).
4.17 	Political subdivisions may use grants made 
4.18 	under this subdivision to construct or 
4.19 	reconstruct bridges, including but not limited 
4.20 	to:
4.21 	(1) matching federal aid grants to construct 
4.22 	or reconstruct key bridges;
4.23 	(2) paying the costs of preliminary 
4.24 	engineering and environmental studies 
4.25 	authorized under Minnesota Statutes, section 
4.26 	174.50, subdivision 6a;
4.27 	(3) paying the costs to abandon an existing 
4.28 	bridge that is deficient and in need of 
4.29 	replacement, but where no replacement will 
4.30 	be made; and
4.31 	(4) paying the costs to construct a road 
4.32 	or street to facilitate the abandonment 
4.33 	of an existing bridge determined by 
4.34 	the commissioner to be deficient, if the 
5.1 	commissioner determines that construction 
5.2 	of the road or street is more economical than 
5.3 	replacement of the existing bridge.

5.4	Subd. 3.Local Road Improvements
 				50,000,000
	
5.5 	Approximately one-half of the appropriation 
5.6 	is for construction and reconstruction of local 
5.7 	roads with statewide or regional significance 
5.8 	under Minnesota Statutes, section 174.52, 
5.9 	subdivision 4, and one-half is for grants to 
5.10 	counties to assist in paying the costs of rural 
5.11 	road safety capital improvement projects on 
5.12 	county state-aid highways under Minnesota 
5.13 	Statutes, section 174.52, subdivision 4a.
5.14 	This appropriation is from the bond proceeds 
5.15 	account in the state transportation fund as 
5.16 	provided in Minnesota Statutes, section 
5.17 	174.50.

5.18
5.19	Subd. 4.Railroad Warning Devices 
Replacement
 				2,500,000
	
5.20 	To design, construct, and equip the 
5.21 	replacement of active highway rail grade 
5.22 	crossing warning safety devices that have 
5.23 	reached the end of their useful life.

5.24	Sec. 7. PUBLIC FACILITIES AUTHORITY
 			$
	20,000,000
	
5.25 	For grants to eligible municipalities under the 
5.26 	wastewater infrastructure funding program 
5.27 	under Minnesota Statutes, section 446A.072.

5.28	Sec. 8. BOND SALE EXPENSES
 			$
	433,000
	
5.29 	To the commissioner of management 
5.30 	and budget for bond sale expenses under 
5.31 	Minnesota Statutes, section 16A.641, 
5.32 	subdivision 8.

6.1 	Sec. 9. BOND SALE AUTHORIZATION.
 6.2 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
6.3 	from the bond proceeds fund, the commissioner of management and budget shall sell and 
6.4 	issue bonds of the state in an amount up to $333,933,000 in the manner, upon the terms, 
6.5 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 
6.6 	by the Minnesota Constitution, article XI, sections 4 to 7.
6.7 		Subd. 2.Transportation fund. To provide the money appropriated in this act from 
6.8 	the state transportation fund, the commissioner of management and budget shall sell and 
6.9 	issue bonds of the state in an amount up to $100,000,000 in the manner, upon the terms, 
6.10 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 
6.11 	the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 
6.12 	accrued interest and any premium received on the sale of the bonds, must be credited to 
6.13 	a bond proceeds account in the state transportation fund.

6.14 	Sec. 10. [116J.436] TRANSPORTATION ECONOMIC DEVELOPMENT 
6.15 	INFRASTRUCTURE PROGRAM.
6.16 		Subdivision 1.Grant program established; purpose. The transportation economic 
6.17 	development infrastructure program is created to foster interagency coordination between 
6.18 	the Departments of Transportation and Employment and Economic Development to 
6.19 	finance infrastructure to create economic development opportunities, jobs, and improve all 
6.20 	types of transportation systems statewide.
6.21 		Subd. 2.Eligible projects. Funds appropriated for the program must be used to 
6.22 	fund construction, reconstruction, and infrastructure improvements that will promote 
6.23 	economic development, increase employment, and improve transportation systems to 
6.24 	accommodate private investment and job creation.
6.25 		Subd. 3.Trunk highway projects. Money in the program shall not be used on 
6.26 	trunk highway improvements, but can be used for needed infrastructure improvements 
6.27 	and nontrunk highway improvements in coordination with trunk highway improvement 
6.28 	projects undertaken by the Department of Transportation.
6.29 		Subd. 4.Application. The commissioners of transportation and employment and 
6.30 	economic development shall design an application process and selection process to 
6.31 	distribute funding to local units of government for publicly owned infrastructure using 
6.32 	criteria that take into account: job creation; increase in local tax base; level of private 
6.33 	investment; leverage of nonstate funds; improvement to the transportation system to serve 
7.1 	the project area; and appropriate geographic balance between the metropolitan area and 
7.2 	greater Minnesota.

7.3 	Sec. 11. Minnesota Statutes 2010, section 462A.21, is amended by adding a 
7.4 	subdivision to read:
7.5 		Subd. 33.Housing infrastructure bonds account. The agency may establish a 
7.6 	housing infrastructure bond account as a separate account within the housing development 
7.7 	fund. Proceeds of housing infrastructure bonds and payments made by the state under 
7.8 	section 462A.37 may be credited to the account. The agency may transfer the proceeds of 
7.9 	housing infrastructure bonds to other accounts within the housing development fund that it 
7.10 	determines appropriate to accomplish the purposes for which the bonds are authorized 
7.11 	under section 462A.37.

7.12 	Sec. 12. [462A.37] HOUSING INFRASTRUCTURE BONDS; 
7.13 	AUTHORIZATION; STANDING APPROPRIATION.
7.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
7.15 	have the meanings given.
7.16 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
7.17 	(c) "Community land trust" means an entity that meets the requirements of section 
7.18 	462A.31, subdivisions 1 and 2.
7.19 	(d) "Debt service" means the amount payable in any fiscal year of principal, 
7.20 	premium, if any, and interest on housing infrastructure bonds and the fees, charges, and 
7.21 	expenses related to the bonds.
7.22 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
7.23 	have been initiated or have been completed and title transferred or where title is transferred 
7.24 	in lieu of foreclosure.
7.25 	(f) "Housing infrastructure bonds" means bonds issued by the agency under chapter 
7.26 	462A that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the 
7.27 	Internal Revenue Code, or are tax-exempt bonds that are not private activity bonds, within 
7.28 	the meaning of Section 141(a) of the Internal Revenue Code, for the purpose of financing 
7.29 	or refinancing affordable housing authorized under this chapter.
7.30 	(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
7.31 	(h) "Supportive housing" means housing that is not time-limited and provides or 
7.32 	coordinates with linkages to services necessary for residents to maintain housing stability 
7.33 	and maximize opportunities for education and employment.
8.1 		Subd. 2.Authorization. (a) The agency may issue up to $10,000,000 in aggregate 
8.2 	principal amount of housing infrastructure bonds in one or more series to which the 
8.3 	payment made under this section may be pledged. The housing infrastructure bonds 
8.4 	authorized in this subdivision may be issued to fund loans, on terms and conditions the 
8.5 	agency deems appropriate, made for one or more of the following purposes:
8.6 	(1) to finance the costs of the construction, acquisition, and rehabilitation of 
8.7 	supportive housing for individuals and families who are without a permanent residence;
8.8 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or 
8.9 	abandoned housing to be used for affordable rental housing and the costs of new 
8.10 	construction of rental housing on abandoned or foreclosed property where the existing 
8.11 	structures will be demolished or removed;
8.12 	(3) to finance that portion of the costs of acquisition of abandoned or foreclosed 
8.13 	property that is attributable to the land to be leased by community land trusts to low- 
8.14 	and moderate-income homebuyers; and
8.15 	(4) to finance the costs of acquisition and rehabilitation of federally assisted rental 
8.16 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
8.17 	of federally assisted rental housing, including providing funds to refund, in whole or in 
8.18 	part, outstanding bonds previously issued by the agency or another governmental unit to 
8.19 	finance or refinance such costs.
8.20 	(b) Among comparable proposals for permanent supportive housing, preference 
8.21 	shall be given to permanent supportive housing for individuals or families who: (1) either 
8.22 	have been without a permanent residence for at least 12 months or at least four times in 
8.23 	the last three years; or (2) are at significant risk of lacking a permanent residence for 12 
8.24 	months or at least four times in the last three years.
8.25 		Subd. 3.No full faith and credit. The housing infrastructure bonds are not public 
8.26 	debt of the state, and the full faith and credit and taxing powers of the state are not pledged 
8.27 	to the payment of the housing infrastructure bonds or to any payment that the state agrees 
8.28 	to make under this section. The bonds must contain a conspicuous statement to that effect.
8.29 		Subd. 4.Appropriation; payment to agency or trustee. (a) The agency must 
8.30 	certify annually to the commissioner of management and budget the actual amount of 
8.31 	annual debt service on each series of bonds issued under subdivision 2.
8.32 	(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure 
8.33 	bonds issued under subdivision 2 remain outstanding, the commissioner of management 
8.34 	and budget must transfer to the affordable housing bond account established under section 
8.35 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $740,000 
9.1 	annually. The amounts necessary to make the transfers are appropriated from the general 
9.2 	fund to the commissioner of management and budget.
9.3 	(c) The agency may pledge to the payment of the housing infrastructure bonds the 
9.4 	payments to be made by the state under this section.

9.5 	Sec. 13. Laws 2006, chapter 258, section 7, subdivision 23, as amended by Laws 2010, 
9.6 	chapter 399, section 2, is amended to read:

9.7	Subd. 23.Trail connections
 				2,010,000
	
9.8 	For matching grants under Minnesota 
9.9 	Statutes, section 85.019, subdivision 4c.
9.10 	$500,000 is for a grant to Carlton County 
9.11 	to predesign, design, and construct a 
9.12 	nonmotorized pedestrian trail connection 
9.13 	to the Willard Munger State Trail from the 
9.14 	city of Carlton through the city of Scanlon 
9.15 	continuing to the city of Cloquet, along the 
9.16 	St. Louis River in Carlton County.
9.17 	$260,000 is to provide the state match for the 
9.18 	cost of the Soo Line Multiuse Recreational 
9.19 	Bridge project over marked Trunk Highway 
9.20 	169 in Mille Lacs County. 
9.21 	$175,000 is for a grant to the city of Bowlus 
9.22 	in Morrison County to design, construct, 
9.23 	furnish, and equip a trailhead center at the 
9.24 	head of the Soo Line Recreational Trail.
9.25 	$125,000 is for a grant to Morrison 
9.26 	County to predesign, design, construct, 
9.27 	furnish, and equip a park-and-ride lot and 
9.28 	restroom building adjacent to the Soo Line 
9.29 	Recreational Trail at U.S. Highway 10.
9.30 	$950,000 is for a grant to the St. Louis 
9.31 	and Lake Counties Regional Railroad 
9.32 	Authority for land acquisition, engineering, 
9.33 	construction, furnishing, and equipping of 
10.1 	a 19-mile "Boundary Waters Connection" 
10.2 	of the Mesabi Trail from Bearhead State 
10.3 	Park to the International Wolf Center in 
10.4 	Ely. This appropriation is contingent upon 
10.5 	a matching contribution of $950,000 from 
10.6 	other sources, public or private. segment of 
10.7 	the Mesabi Trail from County Road 697 in 
10.8 	Breitung Township east through Vermilion 
10.9 	State Park. Notwithstanding Minnesota 
10.10 	Statutes, section 85.019, no local match shall 
10.11 	be required for this grant. Notwithstanding 
10.12 	Minnesota Statutes, section 16A.642, the 
10.13 	bond authorization and appropriation of bond 
10.14 	proceeds for this project are available until 
10.15 	June 30, 2014.

10.16 	Sec. 14. Laws 2006, chapter 258, section 17, subdivision 3, is amended to read:

10.17
10.18	Subd. 3.Cedar Avenue Bus Rapid Transit 
(BRT)
 				5,000,000
	
10.19 	To the Metropolitan Council or for a 
10.20 	grant to Dakota County for environmental 
10.21 	studies, preliminary engineering, bus 
10.22 	lane improvements, and transit station 
10.23 	construction and improvements in the Cedar 
10.24 	Avenue Bus Rapid Transit Corridor.
10.25 	This appropriation may not be spent for 
10.26 	capital improvements within a trunk highway 
10.27 	right-of-way.

10.28 	Sec. 15. Laws 2008, chapter 179, section 7, subdivision 27, as amended by Laws 2010, 
10.29 	chapter 189, section 56, and Laws 2010, chapter 399, section 4, is amended to read:

10.30
10.31	Subd. 27.State Trail Acquisition, 
Rehabilitation, and Development
 				15,320,000
	
10.32 	To acquire land for and to construct and 
10.33 	renovate state trails under Minnesota 
10.34 	Statutes, section 85.015.
11.1 	$970,000 is for the Chester Woods Trail 
11.2 	from Rochester to Dover. Notwithstanding 
11.3 	Minnesota Statutes, section 16A.642, the 
11.4 	bond authorization and appropriation of bond 
11.5 	proceeds for this project are available until 
11.6 	June 30, 2016.
11.7 	$700,000 is for the Casey Jones Trail.
11.8 	$750,000 is for the Gateway Trail, to replace 
11.9 	an at-grade crossing of the Gateway Trail 
11.10 	at Highway 120 with a grade-separated 
11.11 	crossing.
11.12 	$1,600,000 is for the Gitchi-Gami Trail 
11.13 	between Silver Bay and Tettegouche State 
11.14 	Park.
11.15 	$1,500,000 is for the Great River Ridge Trail 
11.16 	from Plainview to Elgin to Eyota. 
11.17 	$1,500,000 is for the Heartland Trail.
11.18 	$500,000 is for the Mill Towns Trail from 
11.19 	Lake Byllesby Park to Cannon Falls.
11.20 	$150,000 is for the Mill Towns Trail within 
11.21 	the city of Faribault.
11.22 	$1,500,000 is for the Minnesota River 
11.23 	Trail from Appleton to Milan and to 
11.24 	the Marsh Lake Dam. Notwithstanding 
11.25 	Minnesota Statutes, section 16A.642, the 
11.26 	bond authorization and appropriation of bond 
11.27 	proceeds for this project are available until 
11.28 	December 30, 2014.
11.29 	$2,000,000 is for the Paul Bunyan Trail from 
11.30 	Walker to Guthrie.
11.31 	$250,000 is for the Root River Trail from 
11.32 	Preston to Forestville State Park.
12.1 	$100,000 is for the Root River Trail, the 
12.2 	eastern extension.
12.3 	$250,000 is for the Root River Trail, the 
12.4 	eastern extension Wagon Wheel.
12.5 	$550,000 is to connect the Stagecoach Trail 
12.6 	with the Douglas Trail in Olmsted County.
12.7 	$3,000,000 is to rehabilitate state trails.
12.8 	For any project listed in this subdivision that 
12.9 	the commissioner determines is not ready to 
12.10 	proceed, the commissioner may allocate that 
12.11 	project's money to another state trail project 
12.12 	in this subdivision. The chairs of the house 
12.13 	and senate committees with jurisdiction 
12.14 	over environment and natural resources 
12.15 	and legislators from the affected legislative 
12.16 	districts must be notified of any changes.

12.17 	Sec. 16. Laws 2008, chapter 179, section 17, subdivision 4, is amended to read:

12.18	Subd. 4.Cedar Avenue Bus Rapid Transit
 				4,000,000
	
12.19 	To the Metropolitan Council or to the 
12.20 	Council to grant to Dakota County, the 
12.21 	Dakota County Regional Railroad Authority, 
12.22 	or the Minnesota Valley Transit Authority to 
12.23 	acquire land, or an interest in land, and to for
12.24 	design, environmental studies, preliminary 
12.25 	engineering, bus lane improvements, layover 
12.26 	and maintenance facilities, and transit station 
12.27 	construction and improvements in the Cedar 
12.28 	Avenue Bus Rapid Transit corridor in Dakota 
12.29 	County. This appropriation may not be spent 
12.30 	for capital improvements within a trunk 
12.31 	highway right-of-way. This appropriation 
12.32 	is added to the appropriation in Laws 2006, 
12.33 	chapter 258, section 17, subdivision 3.

13.1 	Sec. 17. Laws 2008, chapter 179, section 19, subdivision 4, as amended by Laws 2011, 
13.2 	First Special Session chapter 12, section 34, is amended to read:

13.3	Subd. 4.Minneapolis Veterans Home Campus

13.4	Building 17 HVAC Replacement
				1,155,000
	
13.5 	To predesign, design, and construct 
13.6 	improvements to heating, ventilation, air 
13.7 	conditioning, and lighting systems and 
13.8 	associated areas serving the south wing of 
13.9 	Building 17. Any unspent funds from this 
13.10 	appropriation may be used for the purposes 
13.11 	provided under Laws 2010, chapter 189, 
13.12 	section 19, subdivision 4, as amended by 
13.13 	Laws 2010, chapter 399, section 8, and 
13.14 	Laws 2011, First Special Session chapter 12, 
13.15 	section 46.

13.16 	Sec. 18. Laws 2008, chapter 179, section 21, subdivision 15, as amended by Laws 
13.17 	2008, chapter 365, section 22, and Laws 2008, chapter 370, section 6, is amended to read:

13.18
13.19	Subd. 15. St. Cloud State University - National 
Hockey Center; HEAPR
 				6,500,000 
	
13.20 	To the Board of Trustees of the Minnesota 
13.21 	State Colleges and Universities to predesign, 
13.22 	design, construct, furnish, and equip the 
13.23 	renovation of and addition to the National 
13.24 	Hockey Center or for higher education asset 
13.25 	preservation and replacement (HEAPR) 
13.26 	pursuant to Minnesota Statutes, section 
13.27 	135A.046, at St. Cloud State University or 
13.28 	systemwide. The board may use university 
13.29 	and nonstate money for the remainder of 
13.30 	the cost of the construction of the National 
13.31 	Hockey Center project. Notwithstanding 
13.32 	Minnesota Statutes, section 16A.642, the 
13.33 	bond authorization and appropriation of bond 
14.1 	proceeds in this subdivision are available 
14.2 	until June 30, 2016.

14.3 	Sec. 19. Laws 2009, chapter 93, article 1, section 12, subdivision 2, is amended to read:

14.4
14.5	Subd. 2.Transit Capital Improvement 
Program
 				21,000,000
	
14.6 	(a) To the Metropolitan Council. $8,500,000 
14.7 	is for the state's share of costs for the Central 
14.8 	Corridor light rail line for one or more of the 
14.9 	following activities: preliminary engineering, 
14.10 	final design, property acquisition, including 
14.11 	improvements and betterments of a capital 
14.12 	nature, relocation of utilities owned by public 
14.13 	entities, and construction.
14.14 	(b) Any remaining money from this 
14.15 	appropriation is to implement one or more of 
14.16 	the following capital improvements, which 
14.17 	are not listed in a ranked order of priority. 
14.18 	The council shall determine project priorities 
14.19 	after consultation with the Counties Transit 
14.20 	Improvement Board, and other stakeholders, 
14.21 	as appropriate. The council shall seek 
14.22 	geographic balance in the allotment of this 
14.23 	appropriation where possible and maximize 
14.24 	the use of all available federal money from 
14.25 	the American Recovery and Reinvestment 
14.26 	Act of 2009, Public Law 111-5, and any 
14.27 	other available federal money.

14.28	(1) Bottineau Boulevard Transit Way
					
14.29 	For a grant to the Hennepin County Regional 
14.30 	Railroad Authority for environmental work 
14.31 	for Bottineau Transit Way corridor from the 
14.32 	Hiawatha light rail and Northstar intermodal 
14.33 	transit station in downtown Minneapolis to 
14.34 	the vicinity of the Target development in 
15.1 	northern Brooklyn Park or the Arbor Lakes 
15.2 	retail area in Maple Grove.

15.3	(2) Cedar Avenue Bus Rapid Transit
					
15.4 	To the Metropolitan Council or to the 
15.5 	Council for a grant to Dakota County, the 
15.6 	Dakota County Regional Rail Railroad
15.7 	Authority, or the Minnesota Valley Transit 
15.8 	Authority to acquire real property and 
15.9 	construct, for preliminary engineering, and to 
15.10 	design and construct transit stations, layover 
15.11 	and maintenance facilities, and roadway 
15.12 	improvements for shoulder running bus lanes 
15.13 	on County State-Aid Highway 23 in Apple 
15.14 	Valley and Lakeville for the Cedar Avenue 
15.15 	Bus Rapid Transit Way (BRT) in Dakota 
15.16 	County.

15.17	(3) I-94 Corridor Transit Way
					
15.18 	(i) For a grant to Washington County 
15.19 	Regional Rail Authority for environmental 
15.20 	work and preliminary engineering of 
15.21 	transportation and transit improvements, 
15.22 	including busways, park-and-rides, or rail 
15.23 	transit, in the marked Interstate Highway 94 
15.24 	corridor.
15.25 	(ii) To acquire property and construct 
15.26 	transportation and transit improvements, 
15.27 	including busways, park-and-rides, or rail 
15.28 	transit, in the marked Interstate Highway 94 
15.29 	corridor.

15.30	(4) Red Rock Corridor Transit Way
					
15.31 	To design, construct, and furnish 
15.32 	park-and-ride lots for the Red Rock 
15.33 	Corridor Transit Way between Hastings and 
16.1 	Minneapolis via St. Paul, and any extension 
16.2 	between Hastings and Red Wing.

16.3	(5) Riverview Corridor Transit Way
					
16.4 	For a grant to the Ramsey County Regional 
16.5 	Railroad Authority for environmental work 
16.6 	and preliminary engineering for bus rapid 
16.7 	transit in the Riverview corridor between the 
16.8 	east side of St. Paul and the Minneapolis-St. 
16.9 	Paul International Airport and the Mall of 
16.10 	America.

16.11	(6) Robert Street Corridor Transit Way
					
16.12 	To design and construct new passenger 
16.13 	shelters and a bus layover facility, including 
16.14 	rest rooms, break areas, and a passenger 
16.15 	shelter, in the Robert Street Corridor Transit 
16.16 	Way along or parallel to U.S. Highway 
16.17 	52 and Robert Street from within the city 
16.18 	of St. Paul to Dakota County Road 42 in 
16.19 	Rosemount.

16.20	(7) Rush Line Corridor Transit Way
					
16.21 	For a grant to the Ramsey County Regional 
16.22 	Railroad Authority to acquire land for, 
16.23 	design, and construct park-and-ride or 
16.24 	park-and-pool lots located along the Rush 
16.25 	Line Corridor along I-35E/I-35 and Highway 
16.26 	61 from the Union Depot in downtown St. 
16.27 	Paul to Hinckley.

16.28	(8) Southwest Corridor Transit Way
					
16.29 	To prepare an environmental impact 
16.30 	statement (EIS) and for preliminary 
16.31 	engineering for the Southwest Transit Way 
16.32 	Corridor, from the Hiawatha light rail in 
16.33 	downtown Minneapolis to the vicinity of the 
16.34 	Southwest Station transit hub in Eden Prairie. 
17.1 	The Metropolitan Council may grant a 
17.2 	portion of this appropriation to the Hennepin 
17.3 	County Regional Railroad Authority for the 
17.4 	EIS work.

17.5	(9) Union Depot
					
17.6 	For a grant to the Ramsey County Regional 
17.7 	Railroad Authority to acquire land and 
17.8 	structures, to renovate structures, and 
17.9 	for design, engineering, and construction 
17.10 	to revitalize Union Depot for use as a 
17.11 	multimodal transit center in St. Paul. The 
17.12 	center must be designed so that it facilitates a 
17.13 	potential future connection of high-speed rail 
17.14 	to Minneapolis.
17.15 	(c) Of this amount, $313,000 is for 
17.16 	preliminary engineering and final design for 
17.17 	betterments in the State Capitol area related 
17.18 	to the Central Corridor light rail transit 
17.19 	project. This money is not included in the 
17.20 	Central Corridor light rail transit project 
17.21 	budget.

17.22 	Sec. 20. Laws 2010, chapter 189, section 18, subdivision 5, is amended to read:

17.23
17.24	Subd. 5.Minnesota Sex Offender Program 
Treatment Facilities - Moose Lake
 				47,500,000
	
17.25 	To complete design for and to construct, 
17.26 	furnish, and equip phase 2 of the Minnesota 
17.27 	sex offender treatment program at Moose 
17.28 	Lake. Upon substantial completion 
17.29 	of this project, the unspent portion of 
17.30 	this appropriation is available for asset 
17.31 	preservation projects for the Moose Lake 
17.32 	campus of the Minnesota sex offender 
17.33 	program, including design and construction 
17.34 	of a replacement water tower, abatement 
18.1 	of hazardous materials, and the demolition 
18.2 	of the existing water tower serving the 
18.3 	Moose Lake sex offender program and the 
18.4 	Department of Corrections Moose Lake 
18.5 	facility. The water tower project must 
18.6 	be cost-shared with the Department of 
18.7 	Corrections.

18.8 	Sec. 21. Laws 2010, chapter 189, section 21, subdivision 4, as amended by Laws 2010, 
18.9 	chapter 399, section 9, is amended to read:

18.10	Subd. 4.Redevelopment Account
 				5,000,000
	
18.11 	For purposes of the redevelopment account 
18.12 	under Minnesota Statutes, sections 116J.571
18.13 	to 116J.575.
18.14 	$2,000,000 is for a grant to the city of Lake 
18.15 	Elmo. $1,000,000 must be used to design 
18.16 	and construct an expansion of the city's water 
18.17 	pumping, storage, and distribution system 
18.18 	to provide approximately 1,000 additional 
18.19 	service hookups and replace a city well lost 
18.20 	to contamination by perfluorochemicals 
18.21 	(PFC's). $1,000,000 must be used to 
18.22 	design and construct the extension of a 
18.23 	16-inch sanitary sewer force main from 
18.24 	the Metropolitan Council interceptor on 
18.25 	Interstate Highway 94 to 30th Street to 
18.26 	the proposed southern edge of the Lake 
18.27 	Elmo Village area. This appropriation is 
18.28 	not available until the commissioner has 
18.29 	determined that at least an equal amount has 
18.30 	been committed to the project from nonstate 
18.31 	sources.
18.32 	To the extent funds are available, up to 
18.33 	$500,000 is for a grant to the city of Norwood 
18.34 	Young America for public infrastructure 
19.1 	improvements, expansion, and upgrades to 
19.2 	the city wastewater collection and treatment 
19.3 	system related to the location of a food 
19.4 	manufacturing and processing facility within 
19.5 	the city. This appropriation is not available 
19.6 	until the commissioner has determined that 
19.7 	at least an equal amount has been committed 
19.8 	to the project from nonstate sources, and that 
19.9 	the food manufacturer/processor has entered 
19.10 	into an agreement to locate a facility in the 
19.11 	city.
19.12 	Notwithstanding Minnesota Statutes, 
19.13 	section 16A.642, grant number 
19.14 	RDGP-06-0007-0-FY07, awarded in 
19.15 	September 2006 to the city of Tower from an 
19.16 	appropriation to the redevelopment account 
19.17 	in Laws 2005, chapter 20, article 1, section 
19.18 	23, subdivision 11, is available until June 
19.19 	30, 2013.

19.20 	Sec. 22. Laws 2010, chapter 189, section 24, subdivision 3, is amended to read:

19.21
19.22	Subd. 3.County and Local Preservation 
Grants
 				1,000,000
	
19.23 	To be allocated to county and local 
19.24 	jurisdictions as matching money for historic 
19.25 	preservation projects of a capital nature, 
19.26 	as provided in Minnesota Statutes, section 
19.27 	138.0525.
19.28 	$150,000 is for a grant to the city of South St. 
19.29 	Paul to renovate the historically significant 
19.30 	1941 Navy Hangar at 310 Airport Road at 
19.31 	Fleming Field in the city to meet life safety 
19.32 	and building code requirements, subject to 
19.33 	Minnesota Statutes, section 16A.695. No 
19.34 	local match is required for this grant.

20.1 	Sec. 23. Laws 2011, First Special Session chapter 12, section 3, subdivision 7, is 
20.2 	amended to read:

20.3	Subd. 7.Normandale Community College

20.4
20.5	Academic Partnership Center and Student 
Services
				21,984,000
	
20.6 	To design, construct, furnish, and equip a 
20.7 	new building for classrooms and offices and 
20.8 	to design, construct, furnish, and equip the 
20.9 	renovation of the Student Services Building.

20.10 	Sec. 24. Laws 2011, First Special Session chapter 12, section 3, subdivision 8, is 
20.11 	amended to read:

20.12
20.13	Subd. 8.NHED Mesabi Range Community 
and Technical College, Virginia

20.14	Iron Range Engineering Program Facilities
				3,000,000
	
20.15 	To predesign, design, construct, furnish, 
20.16 	and equip an addition to and renovation of 
20.17 	existing space for the Iron Range engineering 
20.18 	program, including laboratory spaces, other 
20.19 	learning spaces, and improvements to the 
20.20 	entrance, and to acquire a privately owned 
20.21 	housing facility on the campus.

20.22 	Sec. 25. Laws 2011, First Special Session chapter 12, section 14, subdivision 2, 
20.23 	is amended to read:

20.24
20.25	Subd. 2.Transit Capital Improvement 
Program
 				20,000,000
	
20.26 	To the Metropolitan Council or for the 
20.27 	Council to grant to Anoka County Regional 
20.28 	Railroad Authority, Dakota County, Dakota 
20.29 	County Regional Railroad Authority, 
20.30 	Hennepin County, Hennepin County 
20.31 	Regional Railroad Authority, Minnesota 
20.32 	Valley Transit Authority, Ramsey County 
20.33 	Regional Railroad Authority, or Washington 
21.1 	County Regional Railroad Authority to 
21.2 	perform environmental studies, preliminary 
21.3 	engineering, acquire property or an interest 
21.4 	in property, design or construct transitway 
21.5 	facilities and infrastructure, including 
21.6 	roadways, for the following transitway 
21.7 	projects: Northstar Ramsey station, 
21.8 	Gateway (I-94 East) corridor, Minneapolis 
21.9 	Interchange facility, Red Rock corridor, 
21.10 	Newport park-and-ride and station, Rush 
21.11 	Line corridor, Robert Street corridor, 35W 
21.12 	South Bus Rapid Transit, and Cedar Avenue 
21.13 	Bus Rapid Transit.

21.14 	Sec. 26. Laws 2011, First Special Session chapter 12, section 19, is amended to read:

21.15	Sec. 19. PUBLIC FACILITIES AUTHORITY
 			$
	20,000,000

21.16	Wastewater Infrastructure Funding Program
					
21.17 	To the Public Facilities Authority for 
21.18 	grants to eligible municipalities under the 
21.19 	wastewater infrastructure funding program 
21.20 	under Minnesota Statutes, section 446A.072.
21.21 	Notwithstanding the criteria and requirements 
21.22 	of Minnesota Statutes, section 446A.072, 
21.23 	up to $1,000,000 of this appropriation is for 
21.24 	a grant to the city of Albert Lea to design, 
21.25 	construct, and equip water and sewer utilities 
21.26 	in the area of Broadway Avenue and Main 
21.27 	Street. This project may include demolition 
21.28 	of deteriorating concrete curbs, gutters, 
21.29 	sidewalks, and streets above the utilities, 
21.30 	and the construction costs to replace and 
21.31 	rehabilitate the infrastructure.

21.32 	Sec. 27. Laws 2011, First Special Session chapter 12, section 22, is amended to read:
21.33 	Sec. 22. BOND SALE SCHEDULE.
 22.1 	The commissioner of management and budget shall schedule the sale of state 
22.2 	general obligation bonds so that, during the biennium ending June 30, 2013, no more than 
22.3 	$1,200,858,000 $1,088,452,000 will need to be transferred from the general fund to the 
22.4 	state bond fund to pay principal and interest due and to become due on outstanding state 
22.5 	general obligation bonds. Of the amount transferred, $452,708,000 is from the general 
22.6 	fund and $635,744,000 is from the tobacco settlement bond proceeds fund. During 
22.7 	the biennium, before each sale of state general obligation bonds, the commissioner of 
22.8 	management and budget shall calculate the amount of debt service payments needed on 
22.9 	bonds previously issued and shall estimate the amount of debt service payments that will 
22.10 	be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount 
22.11 	of bonds scheduled to be sold so as to remain within the limit set by this section. The 
22.12 	amount needed to make the debt service payments is appropriated from the general fund 
22.13 	as provided in Minnesota Statutes, section 16A.641.

22.14 	Sec. 28. LAKE SUPERIOR-POPLAR RIVER WATER DISTRICT.
 22.15 		Subdivision 1.Establishment. The Lake Superior-Poplar River Water District is 
22.16 	created as a municipal corporation, having the powers provided under Minnesota Statutes, 
22.17 	chapters 110A; 429, notwithstanding any provision of chapter 110A to the contrary; and 
22.18 	444. Notwithstanding any law to the contrary, the district shall not have the power to issue 
22.19 	general obligation bonds. Minnesota Statutes, sections 110A.04, 110A.07, and 110A.09 to 
22.20 	110A.18, shall not apply to the district or to the board created by this act.
22.21 		Subd. 2.Definitions. For purposes of applying Minnesota Statutes, chapter 110A, 
22.22 	to this act, "works" and "systems" shall include irrigation purposes, "court" is deemed to 
22.23 	refer to the board of county commissioners; and "secretary of state" is deemed to refer to 
22.24 	the county auditor.
22.25 		Subd. 3.Territory included in district. The territory of the district shall include 
22.26 	all lands within Sections 20, 21, 28, 29, 32, and 33 of Township 60 North, Range 3 West 
22.27 	of the Fourth Principal Meridian. Additional territory may be added as provided in 
22.28 	Minnesota Statutes, sections 110A.19 to 110A.22.
22.29 		Subd. 4.Payment of costs. No person shall be obligated to purchase or be entitled 
22.30 	to receive water from the district unless that person is a party to a contract to purchase 
22.31 	water from the district. Excluding any initial capital investment funded by the state, all 
22.32 	capital and operating expenses of the district shall be paid by the users in proportion to 
22.33 	their use of water. The cost of distribution lines: (1) departing from the main water pipe 
22.34 	from Lake Superior to the domestic water treatment plant to any user; or (2) from the 
22.35 	water treatment plant to any user, shall be paid for by the user of the water either at the 
23.1 	time of installation or by user charges that allow the district to recoup the full cost of the 
23.2 	distribution lines and the cost of financing. Subject to this subdivision and the availability 
23.3 	of water under any applicable permit with a state or federal agency, any owner of land 
23.4 	within the district may contract with the district for the purchase of water.
23.5 		Subd. 5.Board of directors; elections. (a) The district shall be governed by a 
23.6 	board of directors which shall have not less than three nor more than 13 members. The 
23.7 	district's initial directors shall be appointed by the Cook County Board of Commissioners, 
23.8 	with one director representing the domestic water users to serve for three years; up to two 
23.9 	directors representing the irrigation water users, one to serve for two years and one to 
23.10 	serve for three years; and up to two directors representing the commercial, stock watering, 
23.11 	and industrial users, one to serve for one year and one to serve for two years.
23.12 	(b) The district's establishment shall take effect upon the Cook County Board of 
23.13 	Commissioners' appointment of the initial directors. The initial directors shall meet for 
23.14 	the purposes of organization within 30 days of their appointment. Thereafter, except 
23.15 	as otherwise provided in this subdivision, directors shall be elected in accordance with 
23.16 	Minnesota Statutes, section 110A.24, from election divisions comprised of domestic water 
23.17 	users; irrigation water users, and commercial, stock watering, and industrial users. Each 
23.18 	use classification shall be entitled to elect one director, plus one additional director if its 
23.19 	expected water usage for the following fiscal year exceeds ten percent of total water 
23.20 	usage. Each water user within each use classification shall be entitled to cast one vote for 
23.21 	each one percent of expected water usage for the following fiscal year. A homeowner's 
23.22 	association shall vote on behalf of its members if duly authorized by appropriate action by 
23.23 	the association's members. Prior to each election, the board of directors shall determine 
23.24 	the use classifications entitled to vote, the expected water use percentage of each user and 
23.25 	of use classification for the following fiscal year, and the number of directors each such 
23.26 	use classification is entitled to elect. The elections shall be conducted and supervised by 
23.27 	the board of directors and ratified by the Cook County Board of Commissioners.
23.28 		Subd. 6.Termination of appropriation of water from Poplar River.
 23.29 	Notwithstanding any law to the contrary, 30 days after the works and systems to transport 
23.30 	water from Lake Superior to Lutsen Mountains Corporation's snowmaking systems first 
23.31 	become fully permitted and operational, the water district shall notify the commissioner of 
23.32 	natural resources and all permits issued by the Department of Natural Resources to Lutsen 
23.33 	Mountains Corporation to use or appropriate water from the Poplar River shall terminate. 
23.34 	For the purposes of section 30, paragraph (b), the commissioner of natural resources shall 
23.35 	notify the revisor of statutes in writing when the permits have been terminated.

24.1 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day after 
24.2 	the governing body of Cook County and its chief clerical officer comply with Minnesota 
24.3 	Statutes, section 645.021, subdivisions 2 and 3.

24.4 	Sec. 29. ACQUISITIONS FOR CANISTEO PROJECT.
 24.5 	The commissioner of natural resources shall acquire, without undue delay, the land 
24.6 	or interests in land that are needed to construct a conveyance system and other betterments 
24.7 	to accommodate the water level and outflow of water level from the Canisteo mine pit. 
24.8 	The commissioner may acquire the land or interests in land by eminent domain, including 
24.9 	use of the possession procedures under Minnesota Statutes, section 117.042.

24.10 	Sec. 30. REPEALER.
 24.11 	(a) Minnesota Rules, part 8895.0700, subpart 1, is repealed.
24.12 	(b) Laws 2011, chapter 107, section 101, is repealed effective the day the permits 
24.13 	have been terminated under section 28, subdivision 6. The commissioner of natural 
24.14 	resources shall notify the revisor of statutes in writing when the permits have been 
24.15 	terminated.

24.16 	Sec. 31. EFFECTIVE DATE.
 24.17 	Except as otherwise provided, this act is effective the day following final enactment.