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 
1.6 	form a district for the construction of water facilities and provision of water 
1.7 	service; authorizing the commissioner of natural resources to make certain 
1.8 	acquisitions of land or interests in land; appropriating money; amending 
1.9 	Minnesota Statutes 2010, sections 16A.633, by adding a subdivision; 462A.21, 
1.10 	by adding a subdivision; Minnesota Statutes 2011 Supplement, section 16A.96, 
1.11 	by adding a subdivision; Laws 2006, chapter 258, section 7, subdivision 23, as 
1.12 	amended; Laws 2008, chapter 179, sections 7, subdivisions 22, 27, as amended, 
1.13 	29; 17, subdivision 4; 19, subdivision 4, as amended; 21, subdivision 15; Laws 
1.14 	2009, chapter 93, article 1, section 12, subdivision 2; Laws 2010, chapter 189, 
1.15 	sections 7, subdivision 12; 18, subdivision 5; 24, subdivision 3; Laws 2011, First 
1.16 	Special Session chapter 12, sections 3, subdivisions 7, 8; 14, subdivision 2; 
1.17 	19; proposing coding for new law in Minnesota Statutes, chapters 116J; 462A; 
1.18 	repealing Minnesota Rules, part 8895.0700, subpart 1.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.21 	The sums shown in the column under "Appropriations" are appropriated from the 
1.22 	bond proceeds fund, or another named fund, to the state agencies or officials indicated, 
1.23 	to be spend for public purposes. Appropriations of bond proceeds must be spent as 
1.24 	authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 
1.25 	and better public land and buildings and other public improvements of a capital nature or 
1.26 	as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), 
1.27 	or article XIV. Unless otherwise specified, money appropriated in this act for a capital 
1.28 	program or project may be used to pay state agency staff costs that are attributed directly 
1.29 	to the capital program or project in accordance with accounting policies adopted by the 
1.30 	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
	$
	39,060,000
	
2.5	Minnesota State Colleges and Universities
		127,028,000
	
2.6	Department of Education
		1,000,000
	
2.7	Minnesota State Academies
		1,000,000
	
2.8	Perpich Center for Arts Education
		263,000
	
2.9	Natural Resources
		56,050,000
	
2.10	Pollution Control Agency
		5,256,000
	
2.11	Board of Water and Soil Resources
		12,000,000
	
2.12	Agriculture
		706,000
	
2.13	Rural Finance Authority
		33,000,000
	
2.14	Zoological Garden
		7,000,000
	
2.15	Administration
		35,867,000
	
2.16	Amateur Sports
		375,000
	
2.17	Military Affairs
		25,000,000
	
2.18	Public Safety
		4,272,000
	
2.19	Transportation
		43,500,000
	
2.20	Metropolitan Council
		12,850,000
	
2.21	Human Services
		2,500,000
	
2.22	Veterans Affairs
		29,816,000
	
2.23	Corrections
		12,391,000
	
2.24	Employment and Economic Development
		77,850,000
	
2.25	Public Facilities Authority
		24,850,000
	
2.26	Housing Finance Agency
		6,000,000
	
2.27	Minnesota Historical Society
		3,250,000
	
2.28	Bond Sale Expenses
		560,000
	
2.29	Cancellations/Reductions
		(285,000)
	
2.30	TOTAL
	$
	561,159,000
	
2.31	Bond Proceeds Fund (General Fund Debt Service)
		462,283,000
	
2.32	Bond Proceeds Fund (User Financed Debt Service)
		64,676,000
	
2.33
2.34	State Transportation Fund Bond Proceeds (General Fund Debt 
Service)
		34,200,000

2.35						APPROPRIATIONS

2.36	Sec. 2. UNIVERSITY OF MINNESOTA

2.37	Subdivision 1.Total Appropriation
 			$
	39,060,000
	
2.38 	To the Board of Regents of the University 
2.39 	of Minnesota for the purposes specified in 
2.40 	this section.

3.1
3.2	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				35,000,000
	
3.3 	To be spent in accordance with Minnesota 
3.4 	Statutes, section 135A.046.

3.5	Subd. 3.Itasca Biological Station

3.6	Itasca Facility Improvements
				4,060,000
	
3.7 	To design, construct, and equip a new 
3.8 	biological lab/classroom facility and 
3.9 	renovate the classroom in the lakeside 
3.10 	laboratory at the University of Minnesota 
3.11 	facility in Itasca State Park.

3.12	Subd. 4.University Share
 					
3.13 	Except for Higher Education Asset 
3.14 	Preservation and Replacement (HEAPR) 
3.15 	under subdivision 2, the appropriations in this 
3.16 	section are intended to cover approximately 
3.17 	two-thirds of the cost of each project. The 
3.18 	remaining costs must be paid from university 
3.19 	sources.

3.20	Subd. 5.Unspent Appropriations
 					
3.21 	Upon substantial completion of a project 
3.22 	authorized in this section and after written 
3.23 	notice to the commissioner of management 
3.24 	and budget, the Board of Regents must use 
3.25 	any money remaining in the appropriation 
3.26 	for that project for HEAPR under Minnesota 
3.27 	Statutes, section 135A.046. The Board 
3.28 	of Regents must report by February 1 of 
3.29 	each even-numbered year to the chairs of 
3.30 	the house of representatives and senate 
3.31 	committees with jurisdiction over capital 
3.32 	investment and higher education finance, and 
3.33 	to the chairs of the house of representatives 
3.34 	Ways and Means Committee and the senate 
4.1 	Finance Committee, on how the remaining 
4.2 	money has been allocated or spent.

4.3
4.4	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

4.5	Subdivision 1.Total Appropriation
 			$
	127,028,000
	
4.6 	To the Board of Trustees of the Minnesota 
4.7 	State Colleges and Universities for the 
4.8 	purposes specified in this section.

4.94.10
	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				32,000,000
	
4.11 	For the purposes specified in Minnesota 
4.12 	Statutes, section 135A.046, including safety 
4.13 	and statutory compliance, building envelope 
4.14 	integrity, mechanical systems, and space 
4.15 	restoration.

4.16
4.17	Subd. 3.Anoka-Ramsey Community College, 
Coon Rapids

4.18
4.19	Bioscience and Allied Health Addition and 
Renovation
				980,000
	
4.20 	To complete design for the construction of a 
4.21 	Bioscience and Allied Health addition and to 
4.22 	design, renovate, and equip classrooms and 
4.23 	related space.

4.24	Subd. 4.Century College

4.25	Classroom Addition
				5,000,000
	
4.26 	To complete design of and to construct, 
4.27 	renovate, furnish, and equip classrooms and 
4.28 	related spaces.

4.29	Subd. 5.Dakota County Technical College

4.30
4.31	Transportation and Emerging Technologies 
Lab Renovation
				7,230,000
	
4.32 	To complete design of and to renovate, 
4.33 	furnish, and equip transportation and 
5.1 	emerging technologies classrooms, 
5.2 	laboratories, and related spaces.

5.3
5.4	Subd. 6.Minneapolis Community and 
Technical College

5.5	Workforce Program Renovation
				13,389,000
	
5.6 	To complete design of and to renovate, 
5.7 	furnish, and equip instructional space, 
5.8 	support space, and infrastructure for 
5.9 	workforce programs.

5.10	Subd. 7.North Hennepin Community College

5.11	Bioscience and Health Careers Addition
				26,292,000
	
5.12 	To complete design of and to construct, 
5.13 	furnish, and equip Bioscience and Health 
5.14 	Careers laboratories, classrooms, and related 
5.15 	spaces.

5.16
5.17	Subd. 8.Northland Community and Technical 
College 

5.18	Aviation Maintenance Facility Expansion
				300,000
	
5.19 	To design the expansion and renovation of the 
5.20 	aviation maintenance facilities at Northland 
5.21 	Community and Technical College.

5.22	Subd. 9.Ridgewater College, Willmar

5.23	Technical Instruction Lab Renovation
				13,851,000
	
5.24 	To design, renovate, furnish, and equip 
5.25 	classroom, student service, instructional 
5.26 	lab, and related spaces and to demolish the 
5.27 	Administration Building.

5.28	Subd. 10.Minnesota State University, Mankato
 				2,065,000
	
5.29 	To design a clinical science building at 
5.30 	Minnesota State University, Mankato.

5.31
5.32	Subd. 11.St. Cloud Technical and Community 
College
 				4,000,000
	
6.1 	To complete design, construct, renovate, 
6.2 	furnish, equip, and demolish space for the 
6.3 	medium heavy truck and autobody program 
6.4 	on the St. Cloud Technical and Community 
6.5 	College campus.

6.6	Subd. 12.St. Paul College

6.7	Health and Science Alliance Center
				1,500,000
	
6.8 	To design the Health and Science Alliance 
6.9 	Center addition and design, renovate, furnish, 
6.10 	and equip, existing health spaces.

6.11
6.12	Subd. 13.Minnesota West Community and 
Technical College, Worthington

6.13	Renovation and Addition
				4,606,000
	
6.14 	To renovate, furnish, and equip existing 
6.15 	classroom and lab spaces and to design, 
6.16 	construct, furnish, and equip a classroom, 
6.17 	lab, and entryway addition, and replace 
6.18 	HVAC systems.

6.19	Subd. 14.South Central College, Faribault

6.20	Classroom Renovation and Addition
				13,315,000
	
6.21 	To complete design of and to renovate, 
6.22 	construct, furnish, and equip classrooms, a 
6.23 	learning resource center, and related spaces, 
6.24 	and laboratories.

6.25
6.26	Subd. 15.Southwest Minnesota State 
University, Marshall

6.27	Science Lab Renovation
				500,000
	
6.28 	To complete design for renovation of the 
6.29 	Science and Math building and classroom 
6.30 	spaces and an addition to the Plant Science 
6.31 	building.

6.32
6.33	Subd. 16.Science, Technology, Engineering, 
and Math Initiatives
 				2,000,000
	
7.1 	To design, renovate, furnish, and equip 
7.2 	science laboratories at campuses statewide. 
7.3 	Campuses may use internal and nonstate 
7.4 	funds to increase the size of the projects. This 
7.5 	appropriation may be used at the following 
7.6 	campuses: Bemidji State University; Century 
7.7 	College; Inver Hills Community College; 
7.8 	Minnesota State Community and Technical 
7.9 	College, Moorhead; Minnesota State 
7.10 	University, Moorhead; Hibbing Community 
7.11 	College; Itasca Community College; Mesabi 
7.12 	Range Community and Technical College, 
7.13 	Eveleth; and Pine Technical College.

7.14	Subd. 17.Debt Service
 					
7.15 	(a) The Board of Trustees shall pay the 
7.16 	debt service on one-third of the principal 
7.17 	amount of state bonds sold to finance 
7.18 	projects authorized by this section, except 
7.19 	for higher education asset preservation 
7.20 	and replacement, and except that, where a 
7.21 	nonstate match is required, the debt service is 
7.22 	due on a principal amount equal to one-third 
7.23 	of the total project cost, less the match 
7.24 	committed before the bonds are sold. After 
7.25 	each sale of general obligation bonds, the 
7.26 	commissioner of management and budget 
7.27 	shall notify the board of the amounts assessed 
7.28 	for each year for the life of the bonds.
7.29 	(b) The commissioner of management and 
7.30 	budget shall reduce the board's assessment 
7.31 	each year by one-third of the net income 
7.32 	from investment of general obligation bond 
7.33 	proceeds in proportion to the amount of 
7.34 	principal and interest otherwise required to 
7.35 	be paid by the board. The board shall pay its 
8.1 	resulting net assessment to the commissioner 
8.2 	of management and budget by December 
8.3 	1 each year. If the board fails to make 
8.4 	a payment when due, the commissioner 
8.5 	of management and budget shall reduce 
8.6 	allotments for appropriations from the 
8.7 	general fund otherwise available to the board 
8.8 	and apply the amount of the reduction to 
8.9 	cover the missed debt service payment. The 
8.10 	commissioner of management and budget 
8.11 	shall credit the payments received from the 
8.12 	board to the bond debt service account in 
8.13 	the state bond fund each December 1 before 
8.14 	money is transferred from the general fund 
8.15 	under Minnesota Statutes, section 16A.641, 
8.16 	subdivision 10.

8.17	Subd. 18.Unspent Appropriations
 					
8.18 	(a) Upon substantial completion of a 
8.19 	project authorized in this section and after 
8.20 	written notice to the commissioner of 
8.21 	management and budget, the board must use 
8.22 	any money remaining in the appropriation 
8.23 	for that project for Higher Education Asset 
8.24 	Preservation and Replacement (HEAPR) 
8.25 	under Minnesota Statutes, section 135A.046. 
8.26 	The board must report by February 1 of each 
8.27 	even-numbered year to the chairs of the house 
8.28 	of representatives and senate committees 
8.29 	with jurisdiction over capital investments and 
8.30 	higher education finance, and to the chairs 
8.31 	of the house of representatives Ways and 
8.32 	Means Committee and the senate Finance 
8.33 	Committee, on how the remaining money 
8.34 	has been allocated or spent.
9.1 	(b) The unspent portion of an appropriation 
9.2 	for a project in this section that is complete 
9.3 	is available for Higher Education Asset 
9.4 	Preservation and Replacement (HEAPR) 
9.5 	under this subdivision at the same campus 
9.6 	as the project for which the original 
9.7 	appropriation was made, and the debt 
9.8 	service requirement under subdivision 16 is 
9.9 	reduced accordingly. Minnesota Statutes, 
9.10 	section 16A.642, applies from the date of the 
9.11 	original appropriation to the unspent amount 
9.12 	transferred.

9.13	Sec. 4. DEPARTMENT OF EDUCATION
 			$
	1,000,000
	
9.14 	To the commissioner of education for library 
9.15 	accessibility and improvement grants under 
9.16 	Minnesota Statutes, section 134.45.

9.17	Sec. 5. MINNESOTA STATE ACADEMIES
 			$
	1,000,000
	
9.18 	To the commissioner of administration for 
9.19 	asset preservation on both campuses of the 
9.20 	academies, to be spent in accordance with 
9.21 	Minnesota Statutes, section 16B.307.

9.22
9.23	Sec. 6. PERPICH CENTER FOR ARTS 
EDUCATION

9.24	Subdivision 1.Total Appropriation
 			$
	263,000
	
9.25 	To the commissioner of administration for 
9.26 	the purposes specified in this section.

9.27	Subd. 2.Loading Dock Repair
 				64,000
	
9.28 	To complete design of and repair the loading 
9.29 	dock and dock steps.

9.30	Subd. 3.Road Repair
 				99,000
	
9.31 	To complete design and repair roadway.

9.32	Subd. 4.Storm Drainage
 				100,000
	
10.1 	To complete design of and install storm 
10.2 	drainage on the northwest corner of campus.

10.3
10.4	Sec. 7. DEPARTMENT OF NATURAL 
RESOURCES

10.5	Subdivision 1.Total Appropriation
 			$
	56,000,000
	
10.6 	To the commissioner of natural resources 
10.7 	for the purposes specified in this section. 
10.8 	The appropriations in this section are 
10.9 	subject to the requirements of the natural 
10.10 	resources capital improvement program 
10.11 	under Minnesota Statutes, section 86A.12, 
10.12 	unless this section or the statutes referred 
10.13 	to in this section provide more specific 
10.14 	standards, criteria, or priorities for projects 
10.15 	than Minnesota Statutes, section 86A.12.

10.16	Subd. 2.Natural Resources Asset Preservation
 				3,000,000
	
10.17 	For the renovation of state-owned facilities 
10.18 	and recreational assets operated by the 
10.19 	commissioner of natural resources, to be 
10.20 	spent in accordance with Minnesota Statutes, 
10.21 	section 84.946. The commissioner may 
10.22 	use this appropriation to replace buildings 
10.23 	if that is the most effective and the most 
10.24 	energy-efficient and carbon-reducing method 
10.25 	of renovation.

10.26	Subd. 3.Flood Hazard Mitigation Grants
 				30,000,000
	
10.27 	For the state share of flood hazard 
10.28 	mitigation grants for publicly owned capital 
10.29 	improvements to prevent or alleviate flood 
10.30 	damage under Minnesota Statutes, section 
10.31 	103F.161.
10.32 	Levee projects, to the extent practicable, 
10.33 	shall meet the state standard of three feet 
10.34 	above the 100-year flood elevation.
11.1 	Project priorities shall be determined by the 
11.2 	commissioner as appropriate, based on need.
11.3 	This appropriation includes money for the 
11.4 	following county and municipal projects 
11.5 	as prioritized by the commissioner: Ada, 
11.6 	Afton, Alvarado, Argyle, Austin, Benson, 
11.7 	Borup, Breckenridge, Brownton, Climax, 
11.8 	Crookston, Delano, Douglas County, Felton, 
11.9 	Georgetown, Granite Falls, Halstad, Inver 
11.10 	Grove Heights, Melrose, Montevideo, 
11.11 	Moorhead, Newport, Nielsville, Oakport 
11.12 	Township, Oslo, Roseau, Rushford, St. 
11.13 	Vincent, and Shelly.
11.14 	This appropriation includes money for the 
11.15 	following watershed projects: Brandt-Angus, 
11.16 	Middle Snake Tamarac Watershed District; 
11.17 	Hay Creek-Norlund,  Roseau Watershed 
11.18 	District;  Lake Zumbro Watershed District; 
11.19 	North Ottawa, Bois de Sioux Watershed 
11.20 	District; Redpath, Bois de Sioux Watershed 
11.21 	District; Roseau Wildlife Management Area, 
11.22 	Roseau River Watershed District; Shell Rock 
11.23 	Watershed District; Springbrook, Two Rivers 
11.24 	Watershed District; Thief River Falls, Red 
11.25 	Lake Watershed District; and Upper Becker, 
11.26 	Wild Rice Watershed District.
11.27 	For any project listed in this subdivision 
11.28 	that the commissioner determines is not 
11.29 	ready to proceed or does not expend all the 
11.30 	money allocated to it, the commissioner may 
11.31 	allocate that project's money to a project on 
11.32 	the commissioner's priority list.
11.33 	To the extent that the cost of a project 
11.34 	exceeds two percent of the median household 
11.35 	income in the municipality multiplied by the 
12.1 	number of households in the municipality, 
12.2 	this appropriation is also for the local share 
12.3 	of the project.

12.4
12.5	Subd. 4.Water Access Renewal/Aquatic 
Invasive Species Control
 				6,000,000
	
12.6 	(a) To design and construct an Asian carp 
12.7 	deterrent barrier to control the spread of 
12.8 	Asian carp and to accelerate the renewal 
12.9 	and rehabilitation of public water access 
12.10 	site facilities to provide for aquatic 
12.11 	invasive species management, including the 
12.12 	installation of decontamination stations.
12.13 	(b) Of this appropriation, $1,000,000 is 
12.14 	to the Board of Regents of the University 
12.15 	of Minnesota to develop and implement 
12.16 	an Aquatic Invasive Species Cooperative 
12.17 	Research Center. As a condition of 
12.18 	receiving this appropriation, the University 
12.19 	of Minnesota is requested to collaborate 
12.20 	with the commissioner of natural resources 
12.21 	in developing solutions to control aquatic 
12.22 	invasive species. Money appropriated 
12.23 	in this subdivision may not be spent on 
12.24 	activities unless they are directly related 
12.25 	to and necessary for the purposes of this 
12.26 	subdivision. Money appropriated in this 
12.27 	subdivision must not be spent on indirect 
12.28 	costs or other institutional overhead charges 
12.29 	that are not directly related to and necessary 
12.30 	for the purposes of this subdivision. This is a 
12.31 	onetime appropriation and is available until 
12.32 	June 30, 2014.

12.33	Subd. 5.State Forest Land Restoration
 				2,000,000
	
12.34 	To increase reforestation activities to meet 
12.35 	the reforestation requirements of Minnesota 
13.1 	Statutes, section 89.002, subdivision 2, 
13.2 	including planting, seeding, site preparation, 
13.3 	and for timber stand improvement.

13.4
13.5	Subd. 6.Parks and Trails Renewal and 
Development
 				5,000,000
	
13.6 	For renewal, modification, replacement, or 
13.7 	development of buildings and recreational 
13.8 	infrastructure in state parks, state recreation 
13.9 	areas, state trails, small craft harbors/marinas, 
13.10 	fishing pier sites, and state forests. This 
13.11 	appropriation is for the following trails:
13.12 	(1) Luce Line Trail;
13.13 	(2) Whitewater Country Trail Loop;
13.14 	(3) Camp Ripley Trail;
13.15 	(4) Stagecoach Trail; and
13.16 	(5) Shooting Star Trail.
13.17 	For any project listed in this subdivision 
13.18 	that the commissioner determines that is not 
13.19 	ready to proceed, the commissioner may 
13.20 	allocate that project's money to another state 
13.21 	trail project. The commissioner must notify 
13.22 	the chairs of the house of representatives 
13.23 	and senate committees with jurisdiction 
13.24 	over environment and natural resources 
13.25 	and legislators from the affected legislative 
13.26 	districts of any changes.

13.27	Subd. 7.Lake Zumbro
 				4,000,000
	
13.28 	For a grant to the Lake Zumbro Joint Powers 
13.29 	Board for the removal of sedimentation in 
13.30 	Lake Zumbro, including final engineering, 
13.31 	dredging, and dredged soil disposal from 
13.32 	the sites identified in the Preliminary 
13.33 	Engineering Report for Dredging Lake 
13.34 	Zumbro. This project is designed to improve 
14.1 	the recreational economy, water quality, 
14.2 	and habitat, and increase water storage 
14.3 	capacity within the lake to achieve renewable 
14.4 	energy goals by optimizing long-term 
14.5 	hydroelectric operations. This appropriation 
14.6 	is not available until the commissioner of 
14.7 	management and budget has determined that 
14.8 	at least $2,000,000 has been committed to 
14.9 	the project from nonstate sources.

14.10	Subd. 8.Lake Vermillion State Park
 				5,000,000
	
14.11 	For the development of Lake Vermillion 
14.12 	State Park, established under Minnesota 
14.13 	Statutes, section 85.012, subdivision 38a.

14.14
14.15	Subd. 9.National Trout Learning Center, 
Preston
 				1,000,000
	
14.16 	For a grant to the city of Preston to acquire 
14.17 	land for and to predesign, design, construct, 
14.18 	furnish, and equip the National Trout 
14.19 	Learning Center. The city may enter into 
14.20 	a lease and management agreement for the 
14.21 	center, as provided in Minnesota Statutes, 
14.22 	section 16A.695.

14.23	Subd. 10.Unspent Appropriations
 					
14.24 	The unspent portion of an appropriation, 
14.25 	but not to exceed ten percent of the 
14.26 	appropriation, for a project in this section 
14.27 	that is complete, other than an appropriation 
14.28 	for flood hazard mitigation, upon written 
14.29 	notice to the commissioner of management 
14.30 	and budget, is available for asset preservation 
14.31 	under Minnesota Statutes, section 84.946. 
14.32 	Minnesota Statutes, section 16A.642, applies 
14.33 	from the date of the original appropriation 
14.34 	to the unspent amount transferred for asset 
14.35 	preservation.

15.1	Sec. 8. POLLUTION CONTROL AGENCY

15.2	Subdivision 1.Total Appropriation
 			$
	5,256,000
	
15.3 	To the Pollution Control Agency for the 
15.4 	purposes specified in this section.

15.5	Subd. 2.Closed Landfill Program
 				3,000,000
	
15.6 	To design and construct remedial systems 
15.7 	and acquire land at landfills throughout the 
15.8 	state in accordance with the closed landfill 
15.9 	program under Minnesota Statutes, sections 
15.10 	115B.39 to 115B.42.

15.11	Subd. 3.Capital Assistance Program
 				2,256,000
	
15.12 	For a grant under Minnesota Statutes, section 
15.13 	115A.54, to Redwood and Renville Counties 
15.14 	to construct a joint regional materials 
15.15 	recovery facility.

15.16
15.17	Sec. 9. BOARD OF WATER AND SOIL 
RESOURCES

15.18	Subdivision 1.Total Appropriation
 			$
	12,000,000
	
15.19 	The amounts that may be spent for each 
15.20 	purpose are specified in the following 
15.21 	subdivisions.

15.22	Subd. 2.RIM Conservation Reserve
 				6,000,000
	
15.23 	(a) To acquire conservation easements from 
15.24 	landowners to preserve, restore, create, and 
15.25 	enhance wetlands; restore and enhance rivers 
15.26 	and streams, riparian lands, and associated 
15.27 	uplands in order to protect soil and water 
15.28 	quality; support fish and wildlife habitat; 
15.29 	reduce flood damage; and provide other 
15.30 	public benefits. The provisions of Minnesota 
15.31 	Statutes, section 103F.515, apply to this 
15.32 	program. Of this appropriation, up to ten 
16.1 	percent may be used to implement the 
16.2 	program.
16.3 	(b) The board is authorized to enter into 
16.4 	new agreements and amend past agreements 
16.5 	with landowners as required by Minnesota 
16.6 	Statutes, section 103F.515, subdivision 5, to 
16.7 	allow for restoration, including overseeding 
16.8 	and harvesting of native prairie vegetation for 
16.9 	use for energy production in a manner that 
16.10 	does not devalue the natural habitat, water 
16.11 	quality benefits, or carbon sequestration 
16.12 	functions of the area enrolled in the easement. 
16.13 	This shall occur after seed production and 
16.14 	minimize impacts on wildlife. Of this 
16.15 	appropriation, up to five percent may be used 
16.16 	for restoration, including overseeding.

16.17
16.18	Subd. 3.Wetland Replacement Due to Public 
Road Projects
 				6,000,000
	
16.19 	To acquire land for wetland restoration or 
16.20 	preservation to replace wetlands drained 
16.21 	or filled as a result of the repair or 
16.22 	reconstruction, replacement, or rehabilitation 
16.23 	of existing public roads as required by 
16.24 	Minnesota Statutes, section 103G.222, 
16.25 	subdivision 1, paragraphs (l) and (m). 
16.26 	The provisions of Minnesota Statutes, section 
16.27 	103F.515, apply to this appropriation, except 
16.28 	that the board may establish alternative 
16.29 	payment rates for easements and practices 
16.30 	to establish restored native prairies, as 
16.31 	defined in Minnesota Statutes, section 84.02, 
16.32 	subdivision 5, and to protect uplands. 
16.33 	The purchase price paid for acquisition 
16.34 	of land, fee, or perpetual easement must 
16.35 	be the fair market value as determined 
17.1 	by the board. The board may enter into 
17.2 	agreements with the federal government, 
17.3 	other state agencies, political subdivisions, 
17.4 	and nonprofit organizations or fee owners to 
17.5 	acquire land and restore and create wetlands 
17.6 	and to acquire existing wetland banking 
17.7 	credits. Acquisition of or the conveyance 
17.8 	of land may be in the name of the political 
17.9 	subdivision.

17.10	Sec. 10. AGRICULTURE
 			$
	706,000
	
17.11 	To the commissioner of administration for 
17.12 	design and installation of an emergency 
17.13 	power system for the shared Agriculture and 
17.14 	Health Lab Building.

17.15	Sec. 11. RURAL FINANCE AUTHORITY
 			$
	33,000,000
	
17.16 	For the purposes set forth in the Minnesota 
17.17 	Constitution, article XI, section 5, paragraph 
17.18 	(h), to the Rural Finance Authority to 
17.19 	purchase participation interests in or to 
17.20 	make direct agricultural loans to farmers 
17.21 	under Minnesota Statutes, chapter 41B. 
17.22 	This appropriation is for the beginning 
17.23 	farmer program under Minnesota Statutes, 
17.24 	section 41B.039; the loan restructuring 
17.25 	program under Minnesota Statutes, section 
17.26 	41B.04; the seller-sponsored program under 
17.27 	Minnesota Statutes, section 41B.042; the 
17.28 	agricultural improvement loan program 
17.29 	under Minnesota Statutes, section 41B.043; 
17.30 	and the livestock expansion loan program 
17.31 	under Minnesota Statutes, section 41B.045. 
17.32 	All debt service on bond proceeds used to 
17.33 	finance this appropriation must be repaid 
17.34 	by the Rural Finance Authority under 
18.1 	Minnesota Statutes, section 16A.643. Loan 
18.2 	participations must be priced to provide full 
18.3 	interest and principal coverage and a reserve 
18.4 	for potential losses. Priority for loans must 
18.5 	be given first to basic beginning farmer loans, 
18.6 	second to seller-sponsored loans, and third to 
18.7 	agricultural improvement loans.

18.8
18.9	Sec. 12. MINNESOTA ZOOLOGICAL 
GARDEN
 			$
	7,000,000
	
18.10 	To the Minnesota Zoological Garden for 
18.11 	capital asset preservation and betterments to 
18.12 	infrastructure and exhibits at the Minnesota 
18.13 	Zoo to be spent in accordance with Minnesota 
18.14 	Statutes, section 16B.307. This appropriation 
18.15 	includes money to rehabilitate the saltwater 
18.16 	dolphin tank and exhibit in Discovery Bay.

18.17	Sec. 13. ADMINISTRATION

18.18	Subdivision 1.Total Appropriation
 			$
	35,867,000
	
18.19 	To the commissioner of administration for 
18.20 	the purposes specified in this section.

18.21
18.22	Subd. 2.Bemidji Regional Public Television 
Station
 				3,000,000
	
18.23 	For a grant to the city of Bemidji to construct, 
18.24 	furnish, and equip a regional public 
18.25 	television station in the city of Bemidji. 
18.26 	This appropriation is not available until the 
18.27 	commissioner determines that a 25 percent 
18.28 	match has been committed to the project 
18.29 	from nonstate sources.

18.30
18.31	Subd. 3.Potter Auditorium Remodeling - 
Chatfield
 				2,200,000
	
18.32 	For a grant to the Chatfield economic 
18.33 	development authority to predesign, design, 
18.34 	renovate, construct, furnish, and equip the 
19.1 	Chatfield Center for the Arts in the city of 
19.2 	Chatfield. The center includes the George 
19.3 	H. Potter auditorium, the adjacent 1916 
19.4 	school building, and the land surrounding 
19.5 	the structures owned by the economic 
19.6 	development authority. Money, land and 
19.7 	buildings, and in-kind contributions provided 
19.8 	to the center before the enactment of this 
19.9 	section are considered to be sufficient local 
19.10 	match, and no further local match is required.

19.11	Subd. 4.Red Wing Sheldon Theatre
 				612,000
	
19.12 	For a grant to the city of Red Wing to design, 
19.13 	construct, furnish, and equip the renovation 
19.14 	of the Sheldon Theatre. This appropriation 
19.15 	is available when the commissioner of 
19.16 	management and budget determines that at 
19.17 	least an equal amount has been committed to 
19.18 	the project from nonstate sources.

19.19	Subd. 5.State Capitol Restoration
 				25,000,000
	
19.20 	To repair and restore the exterior of the State 
19.21 	Capitol to insure the integrity and structural 
19.22 	soundness of the building. This appropriation 
19.23 	may include exterior renovations, but must 
19.24 	not be used for furnishings, equipment, 
19.25 	or renovations unrelated to the building's 
19.26 	structural integrity and soundness.

19.27	Subd. 6.Peace Officers Memorial
 				55,000
	
19.28 	For restoration of the Peace Officers 
19.29 	Memorial on the Capitol grounds.

19.30	Subd. 7.Washburn Center for Children
 				5,000,000
	
19.31 	For a grant to Hennepin County to acquire 
19.32 	and prepare a site for and to predesign, 
19.33 	design, construct, furnish, and equip a new 
19.34 	Washburn Center for Children that will be 
20.1 	used to provide mental health services to 
20.2 	children. The county is authorized to take 
20.3 	actions and enter into agreements needed 
20.4 	to perform the functions set forth in this 
20.5 	section, and the agreements may include 
20.6 	provisions and conditions that the county 
20.7 	negotiates. The county may enter into a 
20.8 	lease or management contract for the new 
20.9 	center with a nonprofit entity. The lease or 
20.10 	management contract must comply with the 
20.11 	requirements of Minnesota Statutes, section 
20.12 	16A.695. This appropriation is not available 
20.13 	until the commissioner has determined that 
20.14 	at least an equal amount has been committed 
20.15 	or expended from nonstate resources.

20.16	Sec. 14. AMATEUR SPORTS
 			$
	375,000
	
20.17 	To the Minnesota Amateur Sports 
20.18 	Commission to replace HVAC heating and 
20.19 	cooling units in the Indoor Sports Hall at the 
20.20 	National Sports Center in Blaine.

20.21	Sec. 15. MILITARY AFFAIRS

20.22	Subdivision 1.Total Appropriation
 			$
	25,000,000
	
20.23 	To the adjutant general for the purposes 
20.24 	specified in this section.

20.25	Subd. 2.Asset Preservation
 				5,500,000
	
20.26 	For asset preservation improvements and 
20.27 	betterments of a capital nature at military 
20.28 	affairs facilities statewide, to be spent in 
20.29 	accordance with Minnesota Statutes, section 
20.30 	16B.307.

20.31
20.32	Subd. 3.Camp Ripley Education Center 
Addition
 				19,500,000
	
21.1 	To complete the construction, furnishing, and 
21.2 	equipping of an addition to the Camp Ripley 
21.3 	Education Center (Building #6-76). The 
21.4 	addition will include lodging, classroom, and 
21.5 	dining facilities.

21.6	Subd. 4.Unspent Appropriations
 					
21.7 	The unspent portion of an appropriation for 
21.8 	a project in this section that is complete, 
21.9 	upon written notice to the commissioner of 
21.10 	management and budget, is available for 
21.11 	asset preservation under Minnesota Statutes, 
21.12 	section 16B.307. Minnesota Statutes, section 
21.13 	16A.642, applies from the date of the 
21.14 	original appropriation to the unspent amount 
21.15 	transferred.

21.16	Sec. 16. PUBLIC SAFETY

21.17	Subdivision 1.Total Appropriation
 			$
	4,037,000
	
21.18 	To the commissioner of public safety for the 
21.19 	purposes specified in this section.

21.20
21.21	Subd. 2.Arrowhead Regional Corrections 
Board
 				737,000
	
21.22 	For a grant to the Arrowhead Regional 
21.23 	Corrections Board for facility improvements 
21.24 	of a capital nature at the Northeast Regional 
21.25 	Correctional Center (NERCC) in Saginaw. 
21.26 	This appropriation is not available until the 
21.27 	commissioner has determined that at least 
21.28 	an equal amount has been committed from 
21.29 	nonstate sources.

21.30	Subd. 3.Princeton Public Safety Building
 				3,300,000
	
21.31 	For a grant to the city of Princeton to acquire 
21.32 	land, predesign, design, construct, and equip 
21.33 	a public safety building to be located in 
21.34 	Princeton for use as a headquarters for 
22.1 	police, fire, and emergency operations and 
22.2 	as a relocation and decontamination site in 
22.3 	the event of an accident at the Monticello 
22.4 	Nuclear Power Plant. This appropriation 
22.5 	is not available until the commissioner 
22.6 	determines that at least an equal amount 
22.7 	is committed to the project from nonstate 
22.8 	sources.

22.9	Sec. 17. TRANSPORTATION

22.10	Subdivision 1.Total Appropriation
 			$
	43,500,000
	
22.11 	This appropriation is to the commissioner of 
22.12 	transportation for the purposes specified in 
22.13 	this section.

22.14
22.15	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				20,000,000
	
22.16 	This appropriation is from the bond proceeds 
22.17 	account in the state transportation fund 
22.18 	to match federal money and to replace 
22.19 	or rehabilitate local deficient bridges as 
22.20 	provided in Minnesota Statutes, section 
22.21 	174.50. To the extent practicable, the 
22.22 	commissioner shall expend the funds as 
22.23 	provided under Minnesota Statutes, section 
22.24 	174.50, subdivisions 6c and 7, paragraph (c).
22.25 	Political subdivisions may use grants made 
22.26 	under this subdivision to construct or 
22.27 	reconstruct bridges, including but not limited 
22.28 	to:
22.29 	(1) matching federal aid grants to construct 
22.30 	or reconstruct key bridges;
22.31 	(2) paying the costs of preliminary 
22.32 	engineering and environmental studies 
22.33 	authorized under Minnesota Statutes, section 
22.34 	174.50, subdivision 6a;
23.1 	(3) paying the costs to abandon an existing 
23.2 	bridge that is deficient and in need of 
23.3 	replacement, but where no replacement will 
23.4 	be made; and 
23.5 	(4) paying the costs to construct a road 
23.6 	or street to facilitate the abandonment 
23.7 	of an existing bridge determined by 
23.8 	the commissioner to be deficient, if the 
23.9 	commissioner determines that construction 
23.10 	of the road or street is more economical than 
23.11 	replacement of the existing bridge.

23.12
23.13	Subd. 3.Local Road Improvement Fund 
Grants
 				14,200,000
	
23.14 	From the bond proceeds account in the state 
23.15 	transportation fund as provided in Minnesota 
23.16 	Statutes, section 174.50:
23.17 	(1) for construction and reconstruction 
23.18 	of local roads with statewide or regional 
23.19 	significance under Minnesota Statutes, 
23.20 	section 174.52, subdivision 4, or for grants to 
23.21 	counties to assist in paying the costs of rural 
23.22 	road safety capital improvement projects on 
23.23 	county state-aid highways under Minnesota 
23.24 	Statutes, section 174.52, subdivision 4a; and
23.25 	(2) up to $10,000,000 for preliminary 
23.26 	engineering, design, and construction of a 
23.27 	four-lane bridge and roadway over the flood 
23.28 	plain of the Minnesota River between Carver 
23.29 	and Scott Counties along the alignment of 
23.30 	old Trunk Highway 101 from the north end 
23.31 	of bridge number 70002 over the Minnesota 
23.32 	River on Scott County State Aid Highway 
23.33 	101 to the intersection of Minnesota Trunk 
23.34 	Highway 101 and Flying Cloud Drive in 
23.35 	the city of Chanhassen. This appropriation 
24.1 	is available when the commissioner has 
24.2 	determined that an amount equal to the 
24.3 	estimated cost of the project in excess of the 
24.4 	amount appropriated in this clause has been 
24.5 	committed to the project.

24.6
24.7	Subd. 4.Railroad Warning Devices 
Replacement
 				2,500,000
	
24.8 	To design, construct, and equip the 
24.9 	replacement of active highway rail grade 
24.10 	crossing warning safety devices that have 
24.11 	reached the end of their useful life.

24.12	Subd. 5.Greater Minnesota Transit
 				4,000,000
	
24.13 	For capital assistance for publicly owned 
24.14 	greater Minnesota transit systems to be used 
24.15 	to design, construct, and equip transit capital 
24.16 	facilities under Minnesota Statutes, section 
24.17 	174.24, subdivision 3c. This appropriation 
24.18 	includes funding for the following projects: 
24.19 	to design, remodel, and equip the former 
24.20 	MnDOT district office in Mankato into 
24.21 	a bus maintenance and storage facility; 
24.22 	design, construct, and equip a multimodal 
24.23 	transportation terminal in Duluth; and design, 
24.24 	construct, and equip an operations center 
24.25 	office and additional vehicle storage in St. 
24.26 	Cloud.
24.27 	Money from this appropriation may be used 
24.28 	to pay up to 80 percent of the nonfederal 
24.29 	share of these facilities.

24.30	Subd. 6.Malone Island Bridge
 				800,000
	
24.31 	For a grant to the city of Isle for demolition 
24.32 	and construction necessary to replace 
24.33 	the Malone Island Bridge, including the 
24.34 	replacement of accompanying water and 
24.35 	sewer lines.

25.1	Subd. 7.Port Development Assistance
 				2,000,000
	
25.2 	For grants under Minnesota Statutes, chapter 
25.3 	457A.

25.4	Sec. 18. METROPOLITAN COUNCIL

25.5	Subdivision 1.Total Appropriation
 			$
	12,850,000
	
25.6 	To the Metropolitan Council for the purposes 
25.7 	specified in this section.

25.8	Subd. 2.Municipal Wastewater Systems
 				5,000,000
	
25.9 	For grants to cities within the metropolitan 
25.10 	area, as defined in Minnesota Statutes, 
25.11 	section 473.121, subdivision 2, for capital 
25.12 	improvements in municipal wastewater 
25.13 	collection systems to reduce the amount of 
25.14 	inflow and infiltration to the Metropolitan 
25.15 	Council's metropolitan sanitary sewer 
25.16 	disposal system. To be eligible for a grant, a 
25.17 	city must be identified by the Metropolitan 
25.18 	Council as a contributor of excessive 
25.19 	inflow or infiltration. Grants from this 
25.20 	appropriation are for up to 50 percent of the 
25.21 	cost to mitigate inflow and infiltration in 
25.22 	the publicly owned municipal wastewater 
25.23 	collection systems. The council must 
25.24 	award grants based on applications from 
25.25 	eligible cities that identify eligible capital 
25.26 	costs and include a timeline for inflow and 
25.27 	infiltration mitigation construction, pursuant 
25.28 	to guidelines established by the council.

25.29
25.30	Subd. 3.Maplewood; Land Acquisition for 
Fish Creek Natural Greenway
 				100,000
	
25.31 	For a grant to the city of Maplewood to 
25.32 	acquire approximately 70 acres of land along 
25.33 	Fish Creek to be included within the Fish 
25.34 	Creek Natural Greenway, a park of regional 
26.1 	and historical significance located in Ramsey 
26.2 	County within the Mississippi National River 
26.3 	and Recreation Area. This appropriation is 
26.4 	not available until an amount sufficient to 
26.5 	complete the acquisition is committed to the 
26.6 	project from nonstate sources.

26.7
26.8	Subd. 4.Metropolitan Regional Parks Capital 
Improvements
 				1,000,000
	
26.9 	For the cost of improvements and betterments 
26.10 	of a capital nature and acquisition by the 
26.11 	council and local government units of 
26.12 	regional recreational open-space lands in 
26.13 	accordance with the council's policy plan 
26.14 	as provided in Minnesota Statutes, section 
26.15 	473.147. This appropriation must not be 
26.16 	used to purchase easements.

26.17	Subd. 5.Phillips Community Center
 				1,750,000
	
26.18 	For a grant to the Minneapolis Park and 
26.19 	Recreation Board to predesign, design, 
26.20 	engineer, reconstruct, renovate, furnish, 
26.21 	and equip the Phillips Community Center 
26.22 	indoor competitive swimming pool and to 
26.23 	predesign, design, engineer, and construct 
26.24 	an additional indoor multipurpose family 
26.25 	pool and facilities associated with an aquatic 
26.26 	center in the community center, subject to 
26.27 	Minnesota Statutes, section 16A.695.
26.28 	This appropriation is not available until 
26.29 	the commissioner determines that at least 
26.30 	$350,000 is committed from the youth sports 
26.31 	account in the Minnesota Twins Stadium 
26.32 	funding, under Laws 2006, chapter 257.

26.33
26.34	Subd. 6.Minneapolis Transportation 
Interchange
 				5,000,000
	
27.1 	For a grant to the Hennepin County Regional 
27.2 	Railroad Authority for environmental 
27.3 	analysis, engineering, design, acquisition of 
27.4 	real property or interests in real property, 
27.5 	site preparation for, and construction of the 
27.6 	Minneapolis Transportation Interchange 
27.7 	Facility located in the vicinity of the 
27.8 	confluence of the Hiawatha Light Rail 
27.9 	Transit line and the Northstar Commuter Rail 
27.10 	line.

27.11	Sec. 19. HUMAN SERVICES
 			$
	2,500,000
	
27.12 	To the commissioner of administration 
27.13 	for asset preservation improvements and 
27.14 	betterments of a capital nature at Department 
27.15 	of Human Services facilities statewide, to be 
27.16 	spent in accordance with Minnesota Statutes, 
27.17 	section 16B.307.

27.18	Sec. 20. VETERANS AFFAIRS

27.19	Subdivision 1.Total Appropriation
 			$
	29,816,000
	
27.20 	To the commissioner of administration 
27.21 	for the purposes specified in this section. 
27.22 	The commissioner must allocate money 
27.23 	appropriated in this section so as to maximize 
27.24 	the use of all available federal funding.

27.25	Subd. 2.Asset Preservation
 				3,000,000
	
27.26 	For asset preservation improvements and 
27.27 	betterments of a capital nature at veterans 
27.28 	homes and cemeteries statewide, to be spent 
27.29 	in accordance with Minnesota Statutes, 
27.30 	section 16B.307.

27.31
27.32	Subd. 3.Minneapolis Veterans Home Building 
17 South
 				25,420,000
	
28.1 	To complete design for, perform hazardous 
28.2 	materials abatement, and demolish the south 
28.3 	wing of building 17, which includes the 
28.4 	adjoined buildings 15 and 18, and design, 
28.5 	reconstruct, and furnish the new south wing 
28.6 	of building 17 as a new skilled nursing 
28.7 	building, construct a new distribution/service 
28.8 	tunnel to serve buildings 17 north, 9, 6, and 
28.9 	the future 17 south, and design, construct, 
28.10 	and equip a network and server room, 
28.11 	including installation of new fiber optic lines.

28.12
28.13	Subd. 4.Minneapolis Veterans Home 
Centralized Pharmacy
 				1,366,000
	
28.14 	To predesign, design, remodel, and furnish 
28.15 	historic building 13 to be used as the veterans 
28.16 	homes' central pharmacy.

28.17	Subd. 5.Oakdale Veterans' Memorial
 				30,000
	
28.18 	For a grant to the city of Oakdale to design 
28.19 	and construct a veterans' memorial in 
28.20 	Richard Walton Park. This appropriation 
28.21 	is not available until the commissioner has 
28.22 	determined that at least an equal amount has 
28.23 	been committed from nonstate sources.

28.24	Sec. 21. CORRECTIONS

28.25	Subdivision 1.Total Appropriation
 			$
	12,391,000
	
28.26 	To the commissioner of administration for 
28.27 	the purposes specified in this section.

28.28	Subd. 2.Asset Preservation
 				9,000,000
	
28.29 	For improvements and betterments of a 
28.30 	capital nature at Minnesota correctional 
28.31 	facilities statewide, in accordance with 
28.32 	Minnesota Statutes, section 16B.307.

28.33
28.34	Subd. 3.Minnesota Correctional Facility - 
Stillwater

29.1	Well and Water Treatment Facility
				3,391,000
	
29.2 	To complete design; cap an old well; install 
29.3 	a new well; replace piping between wells, 
29.4 	water tower, and facility intake; replace water 
29.5 	treatment equipment; and design, construct, 
29.6 	furnish, and equip a new building to house 
29.7 	water treatment equipment.

29.8	Subd. 4.Unspent Appropriations
 					
29.9 	The unspent portion of an appropriation for 
29.10 	a project in this section that is complete, 
29.11 	upon written notice to the commissioner of 
29.12 	management and budget, is available for 
29.13 	asset preservation under Minnesota Statutes, 
29.14 	section 16B.307, at the same correctional 
29.15 	facility as the project for which the original 
29.16 	appropriation was made. Minnesota Statutes, 
29.17 	section 16A.642, applies from the date of the 
29.18 	original appropriation to the unspent amount 
29.19 	transferred.

29.20
29.21	Sec. 22. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

29.22	Subdivision 1.Total Appropriation
 			$
	77,850,000
	
29.23 	To the commissioner of employment and 
29.24 	economic development for the purposes 
29.25 	specified in this section.

29.26
29.27
29.28	Subd. 2.Greater Minnesota Business 
Development Public Infrastructure Grant 
Program
 				3,000,000
	
29.29 	For grants under Minnesota Statutes, section 
29.30 	116J.431.

29.31	Subd. 3.Redevelopment Account
 				4,775,000
	
29.32 	For purposes of the redevelopment account 
29.33 	under Minnesota Statutes, sections 116J.571 
29.34 	to 116J.575.

30.1
30.2	Subd. 4.Transportation Economic 
Development Program
 				 4,775,000
	
30.3 	For grants under Minnesota Statutes, section 
30.4 	116J.436.

30.5
30.6	Subd. 5.Austin Port Authority - Research and 
Technology Center
 				13,500,000
	
30.7 	For a grant to the Austin Port Authority to 
30.8 	design and construct a new building addition 
30.9 	to the Hormel Institute, including research 
30.10 	labs, research technology space, and support 
30.11 	offices. This appropriation is not available 
30.12 	until the commissioner has determined that 
30.13 	at least an equal amount has been committed 
30.14 	to the project from nonstate sources.

30.15	Subd. 6.Cottage Grove - Business Incubator
 				50,000
	
30.16 	For a grant to the city of Cottage Grove to 
30.17 	renovate, furnish, and equip the former city 
30.18 	hall building into a business incubator.

30.19
30.20	Subd. 7.Floodwood - Business Park 
Development
 				565,000
	
30.21 	For a grant to the city of Floodwood for 
30.22 	approximately one mile of utilities, including 
30.23 	public water and wastewater infrastructure, 
30.24 	and for turn lanes, to support development of 
30.25 	a business park along Highway 73 south in 
30.26 	the city, under the greater Minnesota business 
30.27 	development public infrastructure grant 
30.28 	program under Minnesota Statutes, section 
30.29 	116J.431. This appropriation is not available 
30.30 	until at least an equal amount is committed 
30.31 	to the project from nonstate sources.

30.32	Subd. 8.St. Cloud - Civic Center Expansion
 				10,000,000
	
30.33 	For a grant to the city of St. Cloud to 
30.34 	predesign, design, construct, furnish, and 
31.1 	equip an expansion of the St. Cloud 
31.2 	Civic Center, including a parking facility 
31.3 	and pedestrian skyway connection. This 
31.4 	appropriation is not available until the 
31.5 	commissioner has determined that at least 
31.6 	an equal amount has been committed to the 
31.7 	project from nonstate sources. Amounts 
31.8 	expended by the city of St. Cloud for project 
31.9 	costs since July 1, 2010, shall count toward 
31.10 	the matching requirement.

31.11
31.12	Subd. 9.Maplewood - Harriet Tubman Center 
East
 				2,000,000
	
31.13 	For a grant to the city of Maplewood to 
31.14 	design, renovate, and equip Harriet Tubman 
31.15 	Center East to be used as a regional safety 
31.16 	service center for domestic violence shelter, 
31.17 	legal services, youth programs, mental and 
31.18 	chemical health services, and community 
31.19 	education.

31.20	Subd. 10.Mankato - Civic Center
 				250,000
	
31.21 	For a grant to the city of Mankato to design, 
31.22 	construct, furnish, and equip the expansion 
31.23 	of the Civic Center auditorium, including a 
31.24 	performing arts theater, and the remodeling 
31.25 	and expansion of the Civic Center for 
31.26 	joint use by the city and Minnesota State 
31.27 	University, Mankato. This appropriation is 
31.28 	not available until the commissioner has 
31.29 	determined that at least an equal amount has 
31.30 	been committed to the project from nonstate 
31.31 	sources.

31.32	Subd. 11.Rochester - Convention Center
 				32,000,000
	
31.33 	For a grant to the city of Rochester to design, 
31.34 	construct, furnish, and equip the renovation 
31.35 	and expansion of the Rochester Convention 
32.1 	Center. This appropriation is not available 
32.2 	until the commissioner has determined that 
32.3 	at least an equal amount has been committed 
32.4 	to the project from nonstate sources.

32.5	Subd. 12.South St. Paul - Floodwall Extension
 				500,000
	
32.6 	For a grant to the city of South St. Paul 
32.7 	for the predesign and design, including 
32.8 	preliminary engineering evaluations to 
32.9 	determine the environmental impact, exact 
32.10 	location, and design features of a floodwall 
32.11 	extension on the west shore of the Mississippi 
32.12 	River from the area of Interstate Highway 
32.13 	494 to the southern border of South St. Paul. 
32.14 	This appropriation is not available until the 
32.15 	commissioner of management and budget 
32.16 	determines that at least an equal amount 
32.17 	is committed to the project from nonstate 
32.18 	sources.

32.19	Subd. 13.Todd County - Regional Center
 				500,000
	
32.20 	For a grant to Todd County for the purposes 
32.21 	of making capital improvements related to 
32.22 	the nutrition, healthy living, and community 
32.23 	engagement of citizens, focused on seniors. 
32.24 	The grant may be used to acquire land, 
32.25 	design, construct, furnish, and equip a new 
32.26 	multipurpose facility, or purchase an existing 
32.27 	building to renovate, furnish, and equip as a 
32.28 	multipurpose facility. This appropriation is 
32.29 	not available until at least an equal amount 
32.30 	is committed to the project from nonstate 
32.31 	sources.

32.32	Subd. 14.Norwood Young America
 				500,000
	
32.33 	For a grant to the city of Norwood 
32.34 	Young America for public infrastructure 
33.1 	improvements, expansion, and upgrades to 
33.2 	the city wastewater collection and treatment 
33.3 	system related to the location of a food 
33.4 	manufacturing and processing facility within 
33.5 	the city. This appropriation is not available 
33.6 	until the commissioner has determined that 
33.7 	at least an equal amount has been committed 
33.8 	to the project from nonstate sources, and that 
33.9 	the food manufacturer/processor has entered 
33.10 	into an agreement to locate a facility in the 
33.11 	city.

33.12	Subd. 15.Stewartville Fire Station
 				485,000
	
33.13 	For a grant to the city of Stewartville to 
33.14 	complete design work and engineering, and 
33.15 	to construct, furnish, and equip an expansion 
33.16 	and renovation of the city fire station. This 
33.17 	appropriation is not available until at least 
33.18 	an equal amount is committed to the project 
33.19 	from nonstate sources.

33.20
33.21	Subd. 16.Wadena - Regional Health and 
Wellness Center
 				4,750,000
	
33.22 	For a grant to the city of Wadena to design 
33.23 	and construct a new Regional Health and 
33.24 	Wellness Center for the city of Wadena, Otter 
33.25 	Tail and Todd Counties, including aquatics, 
33.26 	locker rooms, fitness space, gymnasium, 
33.27 	commons area, office, and support area. 
33.28 	This appropriation is not available until the 
33.29 	commissioner has determined that at least 
33.30 	$4,500,000 has been committed to the project 
33.31 	from nonstate sources.

33.32	Sec. 23. PUBLIC FACILITIES AUTHORITY

33.33	Subdivision 1.Total Appropriation
 			$
	24,850,000
	
34.1 	To the Public Facilities Authority for the 
34.2 	purposes specified in this section.

34.3	Subd. 2.State Match for Federal Grants
 				8,500,000
	
34.4 	To match federal grants for the clean water 
34.5 	revolving fund under Minnesota Statutes, 
34.6 	section 446A.07, and the drinking water 
34.7 	revolving fund under Minnesota Statutes, 
34.8 	section 446A.081.
34.9 	This appropriation must be used for qualified 
34.10 	capital projects.

34.11
34.12	Subd. 3.Wastewater Infrastructure Funding 
Program
 				11,500,000
	
34.13 	For grants to eligible municipalities under the 
34.14 	wastewater infrastructure funding program 
34.15 	under Minnesota Statutes, section 446A.072.
34.16 	$5,000,000 is for a grant to the Central Iron 
34.17 	Range Sanitary Sewer District to supplement 
34.18 	previous wastewater infrastructure funding 
34.19 	grants to design, construct, furnish, and 
34.20 	equip new wastewater treatment facilities, 
34.21 	lift stations, and forcemains. This grant is not 
34.22 	subject to the limitations on the availability 
34.23 	or amount of the grant in Minnesota Statutes, 
34.24 	section 446A.072.

34.25	Subd. 4.Lutsen Lake Superior Water Project
 				3,600,000
	
34.26 	For a grant to the Lake Superior-Poplar River 
34.27 	Water District to acquire property interests, 
34.28 	engineer, design, permit, and construct works 
34.29 	and systems to transport and treat water 
34.30 	from Lake Superior through the Poplar River 
34.31 	Valley to serve domestic and irrigation water 
34.32 	users and commercial, stock watering, and 
34.33 	industrial users. This appropriation is not 
34.34 	available until the authority has determined 
35.1 	that at least $1,200,000 has been committed 
35.2 	to the project from nonstate sources. 
35.3 	Expenditures made on or after October 1, 
35.4 	2011, shall count towards the nonstate match.

35.5	Subd. 5.Truman Stormwater Project
 				1,250,000
	
35.6 	For a grant to the city of Truman to design, 
35.7 	construct, and install new storm water lines 
35.8 	to two areas of the city that experience 
35.9 	flooding with heavy rain. This appropriation 
35.10 	is not available until at least an equal amount 
35.11 	has been committed to the project from 
35.12 	nonstate sources.

35.13	Sec. 24. HOUSING FINANCE AGENCY
 			$
	6,000,000
	
35.14 	To the Housing Finance Agency to finance 
35.15 	the rehabilitation of public housing under 
35.16 	Minnesota Statutes, section 462A.202, 
35.17 	subdivision 3a. For purposes of this 
35.18 	section, "public housing" means housing for 
35.19 	low-income persons and households financed 
35.20 	by the federal government and owned and 
35.21 	operated by public housing authorities and 
35.22 	agencies formed by cities and counties. 
35.23 	Eligible public housing authorities must 
35.24 	have a public housing assessment system 
35.25 	rating of standard or above. Priority must be 
35.26 	given to proposals that maximize federal or 
35.27 	local resources to finance the capital costs. 
35.28 	The priority in Minnesota Statutes, section 
35.29 	462A.202, subdivision 3a, for projects to 
35.30 	increase the supply of affordable housing and 
35.31 	the restrictions of Minnesota Statutes, section 
35.32 	462A.202, subdivision 7, do not apply to this 
35.33 	appropriation. 

36.1
36.2	Sec. 25. MINNESOTA HISTORICAL 
SOCIETY
 			$
	3,250,000
	
36.3 	To the Minnesota Historical Society for 
36.4 	capital improvements and betterments at 
36.5 	state historic sites, buildings, landscaping 
36.6 	at historic buildings, exhibits, markers, and 
36.7 	monuments, to be spent in accordance with 
36.8 	Minnesota Statutes, section 16B.307. The 
36.9 	society shall determine project priorities as 
36.10 	appropriate based on need.

36.11	Sec. 26. BOND SALE EXPENSES
 			$
	560,000
	
36.12 	To the commissioner of management 
36.13 	and budget for bond sale expenses under 
36.14 	Minnesota Statutes, section 16A.641, 
36.15 	subdivision 8.

36.16 	Sec. 27. BOND SALE SCHEDULE.
 36.17 	The commissioner of management and budget shall schedule the sale of state 
36.18 	general obligation bonds so that, during the biennium ending June 30, 2013, no more 
36.19 	than $452,996,000 will need to be transferred from the general fund to the state bond 
36.20 	fund to pay principal and interest due and to become due on outstanding state general 
36.21 	obligation bonds. During the biennium, before each sale of state general obligation bonds, 
36.22 	the commissioner of management and budget shall calculate the amount of debt service 
36.23 	payments needed on bonds previously issued and shall estimate the amount of debt service 
36.24 	payments that will be needed on the bonds scheduled to be sold. The commissioner shall 
36.25 	adjust the amount of bonds scheduled to be sold so as to remain within the limit set by this 
36.26 	section. The amount needed to make the debt service payments is appropriated from the 
36.27 	general fund as provided in Minnesota Statutes, section 16A.641.

36.28 	Sec. 28. BOND SALE AUTHORIZATION.
 36.29 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
36.30 	from the bond proceeds fund, the commissioner of management and budget shall sell and 
36.31 	issue bonds of the state in an amount up to $526,959,000 in the manner, upon the terms, 
36.32 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 
36.33 	by the Minnesota Constitution, article XI, sections 4 to 7.
37.1 		Subd. 2.Transportation fund. To provide the money appropriated in this act from 
37.2 	the state transportation fund, the commissioner of management and budget shall sell and 
37.3 	issue bonds of the state in an amount up to $34,200,000 in the manner, upon the terms, and 
37.4 	with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 
37.5 	the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 
37.6 	accrued interest and any premium received on the sale of the bonds, must be credited to 
37.7 	a bond proceeds account in the state transportation fund.
37.8 		Subd. 3.Federal income tax. Bonds issued pursuant to this section, to the extent 
37.9 	practicable, shall be issued to comply with requirements imposed by applicable federal 
37.10 	law providing that the interest on the bonds shall be excluded from gross income for 
37.11 	federal income tax purposes (except as certain minimum taxes or environmental taxes 
37.12 	may apply). Nothing in this section shall be deemed to prohibit the issuance of bonds, the 
37.13 	interest on which may be included in gross income for federal income tax purposes.

37.14 	Sec. 29. Minnesota Statutes 2010, section 16A.633, is amended by adding a 
37.15 	subdivision to read:
37.16 		Subd. 4.Report on jobs created or retained. By September 1 of each 
37.17 	odd-numbered year, the commissioner must report to legislative committees with 
37.18 	jurisdiction over capital investment on the jobs created or retained as a result of capital 
37.19 	project funding by the state, whether with state general obligation bond proceeds or other 
37.20 	state funding sources, during the previous biennium. Each state agency must provide the 
37.21 	commissioner the information necessary, and must require its capital project grantees to 
37.22 	provide the information necessary, for the commissioner to make the report. The report 
37.23 	must include, but is not limited to, the following information: the number and types of 
37.24 	jobs for each project, whether the jobs are new or retained, where the jobs are located, 
37.25 	and pay ranges of the jobs. The Board of Regents of the University of Minnesota, the 
37.26 	Board of Trustees of the Minnesota State Colleges and Universities, and each state agency 
37.27 	receiving an appropriation for a capital project shall collect and provide the information at 
37.28 	the time and in the manner required by the commissioner.

37.29 	Sec. 30. Minnesota Statutes 2011 Supplement, section 16A.96, is amended by adding a 
37.30 	subdivision to read:
37.31 		Subd. 10.Validation. (a) Appropriation bonds issued under this section may be 
37.32 	validated in the manner provided by this subdivision. If comparable appropriation bonds 
37.33 	are judicially determined to be valid, nothing in this subdivision shall be construed to 
37.34 	prevent sale or delivery of any appropriation bonds or notes after entry of a judgment of 
38.1 	validation by the Minnesota Supreme Court as provided in this subdivision with respect 
38.2 	to the appropriation bonds authorized under this section.
38.3 	(b) Any appropriation bonds issued under this section that are validated shall be 
38.4 	validated in the manner provided by this subdivision.
38.5 	(c) The Minnesota Supreme Court shall have original jurisdiction to determine the 
38.6 	validation of appropriation bonds and all matters connected with the issuance of the bonds.
38.7 	(d) The commissioner may determine the commissioner's authority to issue 
38.8 	appropriation bonds and the legality of all proceedings in connection with issuing bonds. 
38.9 	For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme 
38.10 	Court against the state and the taxpayers and citizens.
38.11 	(e) As a condition precedent to filing of a complaint for the validation of 
38.12 	appropriation bonds, the commissioner shall take action providing for the issuance of 
38.13 	appropriation bonds in accordance with law.
38.14 	(f) The complaint shall set out the state's authority to issue appropriation bonds, the 
38.15 	action or proceeding authorizing the issue and its adoption, all other essential proceedings 
38.16 	had or taken in connection with issuing bonds, the amount of the appropriation bonds to 
38.17 	be issued and the maximum interest they are to bear, and all other pertinent matters.
38.18 	(g) The Minnesota Supreme Court shall issue an order directed against the state and 
38.19 	taxpayers, citizens, and others having or claiming any right, title, or interest affected by 
38.20 	the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, 
38.21 	in general terms and without naming them, and the state through its attorney general to 
38.22 	appear before the Minnesota Supreme Court at a designated time and place and show 
38.23 	why the complaint should not be granted and the proceedings and appropriation bonds 
38.24 	validated. A copy of the complaint and order shall be served on the attorney general at 
38.25 	least 20 days before the time fixed for hearing. The attorney general shall examine the 
38.26 	complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or 
38.27 	untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds 
38.28 	in question has not been duly authorized, defense shall be made by the attorney general as 
38.29 	the attorney general deems appropriate.
38.30 	(h) Before the date set for hearing, as directed by the Minnesota Supreme Court, 
38.31 	either the clerk of the Minnesota Appellate Courts or the commissioner shall publish a 
38.32 	copy of the order in a legal newspaper of general circulation in Ramsey County and 
38.33 	the state, at least once each week for two consecutive weeks, commencing with the 
38.34 	first publication, which shall not be less than 20 days before the date set for hearing. 
38.35 	By this publication, all taxpayers, citizens, and others having or claiming any right, 
38.36 	title, or interest in the state, are made parties defendant to the action and the Minnesota 
39.1 	Supreme Court has jurisdiction of them to the same extent as if named as defendants in the 
39.2 	complaint and personally served with process.
39.3 	(i) Any taxpayer, citizen, or person interested may become a party to the action by 
39.4 	moving against or pleading to the complaint at or before the time set for hearing. The 
39.5 	Minnesota Supreme Court shall determine all questions of law and fact and make orders 
39.6 	that will enable it to properly try and determine the action and render a final judgment 
39.7 	within 30 days of the hearing with the least possible delay.
39.8 	(j) If the judgment validates appropriation bonds, the judgment is forever conclusive 
39.9 	as to all matters adjudicated and as against all parties affected and all others having or 
39.10 	claiming any right, title, or interest affected by the issuance of appropriation bonds, or to 
39.11 	be affected in any way by issuing the bonds, and the validity of appropriation bonds or of 
39.12 	any revenues pledged for the payment of the bonds, or of the proceedings authorizing the 
39.13 	issuance of the bonds, including any remedies provided for their collection, shall never 
39.14 	be called in question in any court by any person or party.
39.15 	(k)(1) Appropriation bonds, when validated under this section, shall have stamped 
39.16 	or written on the bonds, by the proper officers of the state issuing them, a statement in 
39.17 	substantially the following form: "This bond is one of a series of appropriation bonds, 
39.18 	which were validated by judgment of the Supreme Court of the State of Minnesota, 
39.19 	rendered on ....., (year) ......"
39.20 	(2) A certified copy of the judgment or decree shall be received as evidence in any 
39.21 	court in this state.
39.22 	(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other 
39.23 	person contests the action or intervenes, the court may tax the whole or any part of the 
39.24 	costs against the person that is equitable.
39.25 	(m) A justice of the Minnesota Supreme Court is not disqualified in any validation 
39.26 	action because the justice is a landowner or taxpayer of the state.

39.27 	Sec. 31. [116J.433] BUSINESS DEVELOPMENT THROUGH CAPITAL 
39.28 	PROJECTS GRANT PROGRAM.
39.29 		Subdivision 1.Creation of account. A business development through capital 
39.30 	projects account is created in the bond proceeds fund. Money in the account may only be 
39.31 	used for capital costs for eligible projects and public infrastructure.
39.32 		Subd. 2.Definitions. For purposes of this section:
39.33 	(1) "local governmental unit" means a county, city, town, special district, public 
39.34 	higher education institution, or other political subdivision or public corporation;
40.1 	(2) "governing body" means the council, board of commissioners, board of trustees, 
40.2 	board of regents, or other body charged with governing a local governmental unit;
40.3 	(3) "public infrastructure" means publicly owned physical infrastructure in this state, 
40.4 	including, but not limited to, wastewater collection and treatment systems, drinking water 
40.5 	systems, storm sewers, utility extensions, telecommunications infrastructure, streets, 
40.6 	roads, bridges, and parking ramps; and
40.7 	(4) "eligible project" means any project for which general obligation bonds of 
40.8 	the state may be issued. Eligible projects must be capital projects for acquisition or 
40.9 	improvement of publicly owned fixed assets having a useful life of at least ten years.
40.10 		Subd. 3.Grant program established. The commissioner shall make competitive 
40.11 	grants to local governmental units for eligible projects and public infrastructure required 
40.12 	to support an eligible project. Funds granted under this program may be used for the 
40.13 	following activities: predesign, design, acquisition of land or buildings, construction, 
40.14 	furnishing, and equipping a new or renovated building.
40.15 		Subd. 4.Application. (a) A local governmental unit must apply to the commissioner 
40.16 	for a grant under this section. At a minimum, a local governmental unit must include the 
40.17 	following information in its application:
40.18 	(1) a resolution of its governing body certifying that the money required to be 
40.19 	supplied by the local governmental unit to complete the project is available and committed;
40.20 	(2) a detailed estimate, along with necessary supporting evidence, of the total costs 
40.21 	of the eligible project;
40.22 	(3) an assessment of the potential or likely use of the site for innovative business 
40.23 	activities after completion of the eligible project;
40.24 	(4) a timeline indicating the major milestones for the eligible project, including 
40.25 	anticipated completion dates; 
40.26 	(5) an estimate of the operating costs for the project for ten years following 
40.27 	completion; and
40.28 	(6) any additional information or material the commissioner prescribes.
40.29 	(b) The determination of whether to make a grant under subdivision 3 is within the 
40.30 	discretion of the commissioner, subject to this section.
40.31 		Subd. 5.Match. An amount granted under this program must be matched with 
40.32 	an equal amount from nonstate sources.
40.33 		Subd. 6.Priorities. (a) If applications for grants exceed the available appropriation, 
40.34 	grants must be made for projects that, in the commissioner's judgment, provide the 
40.35 	highest return in public benefits for the public costs incurred. In making this judgment, 
41.1 	the commissioner shall evaluate and prioritize eligible projects on the following 
41.2 	characteristics:
41.3 	(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 
41.4 	existing jobs as measured by the wages, skills, or education associated with those jobs;
41.5 	(2) improvement in the quality of existing jobs, based on increases in wages or 
41.6 	improvements in the job duties, training, or education associated with those jobs;
41.7 	(3) increase in the local tax base, based on demonstrated measurable outcomes;
41.8 	(4) demonstration that investment of public dollars in the project will induce private 
41.9 	investment;
41.10 	(5) whether the project provides necessary repair or replacement of existing capital 
41.11 	assets;
41.12 	(6) whether the project reduces operating expenses of or increases revenue from 
41.13 	existing capital asset, thereby offsetting at least a portion of project costs;
41.14 	(7) whether the project provides health or safety benefits;
41.15 	(8) the number of residents served by or who will benefit from the project;
41.16 	(9) demonstration of local support; 
41.17 	(10) the capacity of the project to attract revenue from out of state; and
41.18 	(11) objective cost benefit analysis and return on investment.
41.19 	(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 
41.20 	commissioner may weigh each factor, depending upon the facts and circumstances, as the 
41.21 	commissioner considers appropriate. In prioritizing projects, the commissioner shall make 
41.22 	an appropriate balance between the metropolitan area and greater Minnesota.
41.23 		Subd. 7.Cancellation of grant. If a grant is awarded to a local governmental unit 
41.24 	and funds are not encumbered for the grant within four years after the award date, the 
41.25 	grant must be canceled.

41.26 	Sec. 32. [116J.436] TRANSPORTATION ECONOMIC DEVELOPMENT 
41.27 	INFRASTRUCTURE PROGRAM.
41.28 		Subdivision 1.Grant program established; purpose. The transportation economic 
41.29 	development infrastructure program is created to foster interagency coordination between 
41.30 	the Departments of Transportation and Employment and Economic Development to 
41.31 	finance infrastructure to create economic development opportunities, jobs, and improve all 
41.32 	types of transportation systems statewide.
41.33 		Subd. 2.Eligible projects. Funds appropriated for the program must be used to 
41.34 	fund predesign, design, acquisition of land, construction, reconstruction, and infrastructure 
42.1 	improvements that will promote economic development, increase employment, and 
42.2 	improve transportation systems to accommodate private investment and job creation.
42.3 		Subd. 3.Trunk highway projects. Money in the program shall not be used on 
42.4 	trunk highway improvements, but can be used for needed infrastructure improvements 
42.5 	and nontrunk highway improvements in coordination with trunk highway improvement 
42.6 	projects undertaken by the Department of Transportation.
42.7 		Subd. 4.Application. The commissioners of transportation and employment and 
42.8 	economic development shall design an application process and selection process to 
42.9 	distribute funding to local units of government for publicly owned infrastructure using 
42.10 	criteria that take into account: job creation; increase in local tax base; level of private 
42.11 	investment; leverage of nonstate funds; improvement to the transportation system to serve 
42.12 	the project area; and appropriate geographic balance between the metropolitan area and 
42.13 	greater Minnesota.

42.14 	Sec. 33. Minnesota Statutes 2010, section 462A.21, is amended by adding a 
42.15 	subdivision to read:
42.16 		Subd. 33.Housing infrastructure bonds account. The agency may establish a 
42.17 	housing infrastructure bond account as a separate account within the housing development 
42.18 	fund. Proceeds of housing infrastructure bonds and payments made by the state under 
42.19 	section 462A.37 may be credited to the account. The agency may transfer the proceeds of 
42.20 	housing infrastructure bonds to other accounts within the housing development fund that it 
42.21 	determines appropriate to accomplish the purposes for which the bonds are authorized 
42.22 	under section 462A.37.

42.23 	Sec. 34. [462A.37] HOUSING INFRASTRUCTURE BONDS; 
42.24 	AUTHORIZATION; STANDING APPROPRIATION.
42.25 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
42.26 	have the meanings given.
42.27 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
42.28 	(c) "Community land trust" means an entity that meets the requirements of section 
42.29 	462A.31, subdivisions 1 and 2.
42.30 	(d) "Debt service" means the amount payable in any fiscal year of principal, 
42.31 	premium, if any, and interest on housing infrastructure bonds and the fees, charges, and 
42.32 	expenses related to the bonds.
43.1 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
43.2 	have been initiated or have been completed and title transferred or where title is transferred 
43.3 	in lieu of foreclosure.
43.4 	(f) "Housing infrastructure bonds" means bonds issued by the agency under chapter 
43.5 	462A that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the 
43.6 	Internal Revenue Code, or are tax-exempt bonds that are not private activity bonds, within 
43.7 	the meaning of Section 141(a) of the Internal Revenue Code, for the purpose of financing 
43.8 	or refinancing affordable housing authorized under this chapter.
43.9 	(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
43.10 	(h) "Supportive housing" means housing that is not time-limited and provides or 
43.11 	coordinates with linkages to services necessary for residents to maintain housing stability 
43.12 	and maximize opportunities for education and employment.
43.13 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
43.14 	principal amount of housing infrastructure bonds in one or more series to which the 
43.15 	payment made under this section may be pledged. The housing infrastructure bonds 
43.16 	authorized in this subdivision may be issued to fund loans, on terms and conditions the 
43.17 	agency deems appropriate, made for one or more of the following purposes:
43.18 	(1) to finance the costs of the construction, acquisition, and rehabilitation of 
43.19 	supportive housing for individuals and families who are without a permanent residence;
43.20 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or 
43.21 	abandoned housing to be used for affordable rental housing and the costs of new 
43.22 	construction of rental housing on abandoned or foreclosed property where the existing 
43.23 	structures will be demolished or removed;
43.24 	(3) to finance that portion of the costs of acquisition of abandoned or foreclosed 
43.25 	property that is attributable to the land to be leased by community land trusts to low- 
43.26 	and moderate-income homebuyers; and
43.27 	(4) to finance the costs of acquisition and rehabilitation of federally assisted rental 
43.28 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
43.29 	of federally assisted rental housing, including providing funds to refund, in whole or in 
43.30 	part, outstanding bonds previously issued by the agency or another governmental unit to 
43.31 	finance or refinance such costs.
43.32 	(b) Among comparable proposals for permanent supportive housing, preference 
43.33 	shall be given to permanent supportive housing for individuals or families who: (1) either 
43.34 	have been without a permanent residence for at least 12 months or at least four times in 
43.35 	the last three years; or (2) are at significant risk of lacking a permanent residence for 12 
43.36 	months or at least four times in the last three years.
44.1 		Subd. 3.No full faith and credit. The housing infrastructure bonds are not public 
44.2 	debt of the state, and the full faith and credit and taxing powers of the state are not pledged 
44.3 	to the payment of the housing infrastructure bonds or to any payment that the state agrees 
44.4 	to make under this section. The bonds must contain a conspicuous statement to that effect.
44.5 		Subd. 4.Appropriation; payment to agency or trustee. (a) The agency must 
44.6 	certify annually to the commissioner of management and budget the actual amount of 
44.7 	annual debt service on each series of bonds issued under subdivision 2.
44.8 	(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure 
44.9 	bonds issued under subdivision 2 remain outstanding, the commissioner of management 
44.10 	and budget must transfer to the affordable housing bond account established under 
44.11 	section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 
44.12 	$2,200,000 annually. The amounts necessary to make the transfers are appropriated from 
44.13 	the general fund to the commissioner of management and budget.
44.14 	(c) The agency may pledge to the payment of the housing infrastructure bonds the 
44.15 	payments to be made by the state under this section.

44.16 	Sec. 35. Laws 2006, chapter 258, section 7, subdivision 23, as amended by Laws 2010, 
44.17 	chapter 399, section 2, is amended to read:

44.18	Subd.  23.Trail connections
 				2,010,000
	
44.19 	For matching grants under Minnesota 
44.20 	Statutes, section 85.019, subdivision 4c.
44.21 	$500,000 is for a grant to Carlton County 
44.22 	to predesign, design, and construct a 
44.23 	nonmotorized pedestrian trail connection 
44.24 	to the Willard Munger State Trail from the 
44.25 	city of Carlton through the city of Scanlon 
44.26 	continuing to the city of Cloquet, along the 
44.27 	St. Louis River in Carlton County.
44.28 	$260,000 is to provide the state match for the 
44.29 	cost of the Soo Line Multiuse Recreational 
44.30 	Bridge project over marked Trunk Highway 
44.31 	169 in Mille Lacs County. 
44.32 	$175,000 is for a grant to the city of Bowlus 
44.33 	in Morrison County to design, construct, 
45.1 	furnish, and equip a trailhead center at the 
45.2 	head of the Soo Line Recreational Trail.
45.3 	$125,000 is for a grant to Morrison 
45.4 	County to predesign, design, construct, 
45.5 	furnish, and equip a park-and-ride lot and 
45.6 	restroom building adjacent to the Soo Line 
45.7 	Recreational Trail at U.S. Highway 10.
45.8 	$950,000 is for a grant to the St. Louis 
45.9 	and Lake Counties Regional Railroad 
45.10 	Authority for land acquisition, engineering, 
45.11 	construction, furnishing, and equipping of 
45.12 	a 19-mile "Boundary Waters Connection" 
45.13 	of the Mesabi Trail from Bearhead State 
45.14 	Park to the International Wolf Center in 
45.15 	Ely. This appropriation is contingent upon 
45.16 	a matching contribution of $950,000 from 
45.17 	other sources, public or private segment of 
45.18 	the Mesabi Trail from County Road 697 in 
45.19 	Breitung Township east through Vermilion 
45.20 	State Park. Notwithstanding Minnesota 
45.21 	Statutes, section 85.019, no local match shall 
45.22 	be required for this grant. Notwithstanding 
45.23 	Minnesota Statutes, section 16A.642, the 
45.24 	bond authorization and appropriation of bond 
45.25 	proceeds for this project are available until 
45.26 	June 30, 2014.

45.27 	Sec. 36. Laws 2008, chapter 179, section 7, subdivision 22, is amended to read:

45.28
45.29	Subd. 22.State Park and Recreation Area 
Acquisition, Rehabilitation, and Development
 				19,041,000
	
45.30 	(a) For projects within state parks 
45.31 	established under Minnesota Statutes, 
45.32 	section 85.012, and state recreation areas 
45.33 	established under Minnesota Statutes, 
45.34 	section 85.013, contained in the Department 
45.35 	of Natural Resources, Division of Parks 
46.1 	and Recreation's ten-year project list for 
46.2 	"New and Deferred Maintenance Bondable 
46.3 	Projects" dated March 20, 2008. This 
46.4 	appropriation includes money for new 
46.5 	projects at Bear Head Lake, Beaver Creek 
46.6 	Valley, Blue Mounds, Buffalo River, Cuyuna 
46.7 	Country State Recreation Area, Flandrau, 
46.8 	Fort Ridgely, Frontenac, Glendalough, Itasca, 
46.9 	Lake Bemidji, Lake Carlos, Maplewood, 
46.10 	Sibley, Soudan Mine, Split Rock Lighthouse, 
46.11 	Temperance River, Tettegouche, and William 
46.12 	O'Brien State Parks. The commissioner shall 
46.13 	determine project priorities as appropriate, 
46.14 	based on need. 
46.15 	(b) For infrastructure rehabilitation and 
46.16 	the renovation and development of 
46.17 	facilities within state parks established 
46.18 	under Minnesota Statutes, section 85.012, 
46.19 	contained in the Department of Natural 
46.20 	Resources, Division of Parks and Recreation's 
46.21 	ten-year project list for "New and Deferred 
46.22 	Maintenance Bondable Projects" dated 
46.23 	March 20, 2008. This appropriation includes 
46.24 	money for Interstate, Itasca, Jay Cooke, Lake 
46.25 	Louise, Lake Shetek, Maplewood, Split Rock 
46.26 	Lighthouse, St. Croix, and Tettegouche. 
46.27 	The commissioner shall determine project 
46.28 	priorities as appropriate, based on need.
46.29 	$2,400,000 is to acquire from willing sellers 
46.30 	land within the boundaries of Greenleaf 
46.31 	Lake State Recreation Area, established 
46.32 	under Minnesota Statutes, section 85.013, 
46.33 	subdivision 11b, or to acquire in-holdings 
46.34 	within other state park boundaries.
47.1 	$200,000 is to develop campgrounds at Red 
47.2 	River State Recreation Area.

47.3 	Sec. 37. Laws 2008, chapter 179, section 7, subdivision 27, as amended by Laws 2010, 
47.4 	chapter 189, section 56, and Laws 2010, chapter 399, section 4, is amended to read:

47.5
47.6	Subd. 27.State Trail Acquisition, 
Rehabilitation, and Development
 				15,320,000
	
47.7 	To acquire land for and to construct and 
47.8 	renovate state trails under Minnesota 
47.9 	Statutes, section 85.015.
47.10 	$970,000 is for the Chester Woods Trail 
47.11 	from Rochester to Dover. Notwithstanding 
47.12 	Minnesota Statutes, section 16A.642, the 
47.13 	bond authorization and appropriation of bond 
47.14 	proceeds for this project are available until 
47.15 	June 30, 2016.
47.16 	$700,000 is for the Casey Jones Trail.
47.17 	$750,000 is for the Gateway Trail, to replace 
47.18 	an at-grade crossing of the Gateway Trail 
47.19 	at Highway 120 with a grade-separated 
47.20 	crossing.
47.21 	$1,600,000 is for the Gitchi-Gami Trail 
47.22 	between Silver Bay and Tettegouche State 
47.23 	Park.
47.24 	$1,500,000 is for the Great River Ridge Trail 
47.25 	from Plainview to Elgin to Eyota. 
47.26 	$1,500,000 is for the Heartland Trail.
47.27 	$500,000 is for the Mill Towns Trail from 
47.28 	Lake Byllesby Park to Cannon Falls.
47.29 	$150,000 is for the Mill Towns Trail within 
47.30 	the city of Faribault.
47.31 	$1,500,000 is for the Minnesota River 
47.32 	Trail from Appleton to Milan and to 
47.33 	the Marsh Lake Dam. Notwithstanding 
48.1 	Minnesota Statutes, section 16A.642, the 
48.2 	bond authorization and appropriation of bond 
48.3 	proceeds for this project are available until 
48.4 	December 30, 2014.
48.5 	$2,000,000 is for the Paul Bunyan Trail from 
48.6 	Walker to Guthrie.
48.7 	$250,000 is for the Root River Trail from 
48.8 	Preston to Forestville State Park.
48.9 	$100,000 is for the Root River Trail, the 
48.10 	eastern extension.
48.11 	$250,000 is for the Root River Trail, the 
48.12 	eastern extension Wagon Wheel.
48.13 	$550,000 is to connect the Stagecoach Trail 
48.14 	with the Douglas Trail in Olmsted County.
48.15 	Notwithstanding Minnesota Statutes, 
48.16 	section 16A.642, the bond authorization 
48.17 	and appropriation of bond proceeds for this 
48.18 	project are available until June 30, 2014.
48.19 	$3,000,000 is to rehabilitate state trails.
48.20 	For any project listed in this subdivision that 
48.21 	the commissioner determines is not ready to 
48.22 	proceed, the commissioner may allocate that 
48.23 	project's money to another state trail project 
48.24 	in this subdivision. The chairs of the house 
48.25 	and senate committees with jurisdiction 
48.26 	over environment and natural resources 
48.27 	and legislators from the affected legislative 
48.28 	districts must be notified of any changes.

48.29 	Sec. 38. Laws 2008, chapter 179, section 7, subdivision 29, is amended to read:

48.30	Subd. 29.Trail Connections
 				697,000
	
48.31 	For matching grants under Minnesota 
48.32 	Statutes, section 85.019, subdivision 4c.
49.1 	$225,000 is for a grant to Clara City to design 
49.2 	and construct a walking path in Clara City.
49.3 	$100,000 is for a grant to the city of Mora 
49.4 	for construction of pedestrian and bicycle 
49.5 	trails, bridge restoration and renovation, and 
49.6 	other improvements of a capital nature for 
49.7 	the Spring Lake Trail, located in the city of 
49.8 	Mora.
49.9 	$372,000 is for a grant to the city of Rockville 
49.10 	to design and construct the Rocori Trail from 
49.11 	Richmond through Cold Spring to Rockville, 
49.12 	connecting with the Glacial Lakes Trail, the 
49.13 	Beaver Island Trail, and the Lake Wobegon 
49.14 	Trail.
49.15 	For any project listed in this subdivision that 
49.16 	the commissioner determines is not ready to 
49.17 	proceed, the commissioner may allocate that 
49.18 	project's money to another trail connection 
49.19 	project in this subdivision a state trail 
49.20 	rehabilitation project. The chairs of the house 
49.21 	and senate committees with jurisdiction 
49.22 	over the environment and natural resources 
49.23 	and legislators from the affected legislative 
49.24 	districts must be notified of any changes.

49.25 	Sec. 39. Laws 2008, chapter 179, section 17, subdivision 4, is amended to read:

49.26	Subd. 4.Cedar Avenue Bus Rapid Transit
 				4,000,000
	
49.27 	To the Metropolitan Council or to the 
49.28 	Council to grant to Dakota County, the 
49.29 	Dakota County Regional Railroad Authority, 
49.30 	or the Minnesota Valley Transit Authority to 
49.31 	acquire land, or an interest in land, and to for
49.32 	design, environmental studies, preliminary 
49.33 	engineering, bus lane improvements, layover 
49.34 	and maintenance facilities, and transit station 
50.1 	construction and improvements in the Cedar 
50.2 	Avenue Bus Rapid Transit corridor in Dakota 
50.3 	County. This appropriation may not be spent 
50.4 	for capital improvements within a trunk 
50.5 	highway right-of-way. This appropriation 
50.6 	is added to the appropriation in Laws 2006, 
50.7 	chapter 258, section 17, subdivision 3.

50.8 	Sec. 40. Laws 2008, chapter 179, section 19, subdivision 4, as amended by Laws 2011, 
50.9 	First Special Session chapter 12, section 34, is amended to read:

50.10	Subd. 4.Minneapolis Veterans Home Campus

50.11	Building 17 HVAC Replacement
				1,155,000
	
50.12 	To predesign, design, and construct 
50.13 	improvements to heating, ventilation, air 
50.14 	conditioning, and lighting systems and 
50.15 	associated areas serving the south wing of 
50.16 	Building 17. Any unspent funds from this 
50.17 	appropriation may be used for the purposes 
50.18 	provided under Laws 2010, chapter 189, 
50.19 	section 19, subdivision 4, as amended by 
50.20 	Laws 2010, chapter 399, section 8, and 
50.21 	Laws 2011, First Special Session chapter 12, 
50.22 	section 46.

50.23 	Sec. 41. Laws 2008, chapter 179, section 21, subdivision 15, is amended to read:

50.24
50.25	Subd. 15.St. Cloud State University - National 
Hockey Center
 				6,500,000
	
50.26 	To the Board of Trustees of the Minnesota 
50.27 	State Colleges and Universities to predesign, 
50.28 	design, construct, furnish, and equip the 
50.29 	renovation of the National Hockey Center. or 
50.30 	for higher education asset preservation and 
50.31 	replacement (HEAPR) pursuant to Minnesota 
50.32 	Statutes, section 135A.046, at St. Cloud State 
50.33 	University or systemwide. Notwithstanding 
51.1 	Minnesota Statutes, section 16A.642, the 
51.2 	bond authorization and appropriation of bond 
51.3 	proceeds in this subdivision are available 
51.4 	until June 30, 2016. The debt service 
51.5 	requirement under Minnesota Statutes, 
51.6 	section 16A.662, subdivision 5, shall be 
51.7 	reduced to the extent that this appropriation 
51.8 	is used for HEAPR.

51.9 	Sec. 42. Laws 2009, chapter 93, article 1, section 12, subdivision 2, is amended to read:

51.10
51.11	Subd. 2.Transit Capital Improvement 
Program
 				21,000,000
	
51.12 	(a) To the Metropolitan Council. $8,500,000 
51.13 	is for the state's share of costs for the Central 
51.14 	Corridor light rail line for one or more of the 
51.15 	following activities: preliminary engineering, 
51.16 	final design, property acquisition, including 
51.17 	improvements and betterments of a capital 
51.18 	nature, relocation of utilities owned by public 
51.19 	entities, and construction.
51.20 	(b) Any remaining money from this 
51.21 	appropriation is to implement one or more of 
51.22 	the following capital improvements, which 
51.23 	are not listed in a ranked order of priority. 
51.24 	The council shall determine project priorities 
51.25 	after consultation with the Counties Transit 
51.26 	Improvement Board, and other stakeholders, 
51.27 	as appropriate. The council shall seek 
51.28 	geographic balance in the allotment of this 
51.29 	appropriation where possible and maximize 
51.30 	the use of all available federal money from 
51.31 	the American Recovery and Reinvestment 
51.32 	Act of 2009, Public Law 111-5, and any 
51.33 	other available federal money.

51.34	(1) Bottineau Boulevard Transit Way
					
52.1 	For a grant to the Hennepin County Regional 
52.2 	Railroad Authority for environmental work 
52.3 	for Bottineau Transit Way corridor from the 
52.4 	Hiawatha light rail and Northstar intermodal 
52.5 	transit station in downtown Minneapolis to 
52.6 	the vicinity of the Target development in 
52.7 	northern Brooklyn Park or the Arbor Lakes 
52.8 	retail area in Maple Grove.

52.9	(2) Cedar Avenue Bus Rapid Transit
					
52.10 	To the Metropolitan Council for a grant to 
52.11 	Dakota County, the Dakota County Regional 
52.12 	Rail Railroad Authority, or the Minnesota 
52.13 	Valley Transit Authority to acquire real 
52.14 	property and construct, for preliminary 
52.15 	engineering, and to design and construct 
52.16 	transit stations, layover and maintenance 
52.17 	facilities, and roadway improvements for 
52.18 	shoulder running bus lanes on County 
52.19 	State-Aid Highway 23 in Apple Valley and 
52.20 	Lakeville for the Cedar Avenue Bus Rapid 
52.21 	Transit Way (BRT) in Dakota County.

52.22	(3) I-94 Corridor Transit Way
					
52.23 	(i) For a grant to Washington County 
52.24 	Regional Rail Authority for environmental 
52.25 	work and preliminary engineering of 
52.26 	transportation and transit improvements, 
52.27 	including busways, park-and-rides, or rail 
52.28 	transit, in the marked Interstate Highway 94 
52.29 	corridor.
52.30 	(ii) To acquire property and construct 
52.31 	transportation and transit improvements, 
52.32 	including busways, park-and-rides, or rail 
52.33 	transit, in the marked Interstate Highway 94 
52.34 	corridor.

53.1	(4) Red Rock Corridor Transit Way
					
53.2 	To design, construct, and furnish 
53.3 	park-and-ride lots for the Red Rock 
53.4 	Corridor Transit Way between Hastings and 
53.5 	Minneapolis via St. Paul, and any extension 
53.6 	between Hastings and Red Wing.

53.7	(5) Riverview Corridor Transit Way
					
53.8 	For a grant to the Ramsey County Regional 
53.9 	Railroad Authority for environmental work 
53.10 	and preliminary engineering for bus rapid 
53.11 	transit in the Riverview corridor between the 
53.12 	east side of St. Paul and the Minneapolis-St. 
53.13 	Paul International Airport and the Mall of 
53.14 	America.

53.15	(6) Robert Street Corridor Transit Way
					
53.16 	To design and construct new passenger 
53.17 	shelters and a bus layover facility, including 
53.18 	rest rooms, break areas, and a passenger 
53.19 	shelter, in the Robert Street Corridor Transit 
53.20 	Way along or parallel to U.S. Highway 
53.21 	52 and Robert Street from within the city 
53.22 	of St. Paul to Dakota County Road 42 in 
53.23 	Rosemount.

53.24	(7) Rush Line Corridor Transit Way
					
53.25 	For a grant to the Ramsey County Regional 
53.26 	Railroad Authority to acquire land for, 
53.27 	design, and construct park-and-ride or 
53.28 	park-and-pool lots located along the Rush 
53.29 	Line Corridor along I-35E/I-35 and Highway 
53.30 	61 from the Union Depot in downtown St. 
53.31 	Paul to Hinckley.

53.32	(8) Southwest Corridor Transit Way
					
54.1 	To prepare an environmental impact 
54.2 	statement (EIS) and for preliminary 
54.3 	engineering for the Southwest Transit Way 
54.4 	Corridor, from the Hiawatha light rail in 
54.5 	downtown Minneapolis to the vicinity of the 
54.6 	Southwest Station transit hub in Eden Prairie. 
54.7 	The Metropolitan Council may grant a 
54.8 	portion of this appropriation to the Hennepin 
54.9 	County Regional Railroad Authority for the 
54.10 	EIS work.

54.11	(9) Union Depot
					
54.12 	For a grant to the Ramsey County Regional 
54.13 	Railroad Authority to acquire land and 
54.14 	structures, to renovate structures, and 
54.15 	for design, engineering, and construction 
54.16 	to revitalize Union Depot for use as a 
54.17 	multimodal transit center in St. Paul. The 
54.18 	center must be designed so that it facilitates a 
54.19 	potential future connection of high-speed rail 
54.20 	to Minneapolis.
54.21 	(c) Of this amount, $313,000 is for 
54.22 	preliminary engineering and final design for 
54.23 	betterments in the State Capitol area related 
54.24 	to the Central Corridor light rail transit 
54.25 	project. This money is not included in the 
54.26 	Central Corridor light rail transit project 
54.27 	budget.

54.28 	Sec. 43. Laws 2010, chapter 189, section 7, subdivision 12, is amended to read:

54.29	Subd. 12.Shade Tree Program
 				3,000,000
	
54.30 	For DNR expenditures on state lands, if 
54.31 	recommended by an adjacent or coterminous 
54.32 	unit of local government, and for grants to 
54.33 	cities, counties, townships, and park and 
54.34 	recreation boards in cities of the first class 
55.1 	for the planting of publicly owned shade 
55.2 	trees on public land to provide environmental 
55.3 	benefits; replace trees lost to forest pests, 
55.4 	disease or storm; or to establish a more 
55.5 	diverse community forest better able to 
55.6 	withstand disease and forest pests. The 
55.7 	commissioner must give priority to grant 
55.8 	requests to remove and replace trees with 
55.9 	active infestations of emerald ash borer. For 
55.10 	purposes of this appropriation, "shade tree" 
55.11 	means a woody perennial grown primarily 
55.12 	for aesthetic or environmental purposes 
55.13 	with minimal to residual timber value and 
55.14 	no intent to harvest the tree for its wood. 
55.15 	Any tree planted with funding under this 
55.16 	subdivision must be a species native to 
55.17 	Minnesota.

55.18 	Sec. 44. Laws 2010, chapter 189, section 18, subdivision 5, is amended to read:

55.19
55.20	Subd. 5.Minnesota Sex Offender Program 
Treatment Facilities - Moose Lake
 				47,500,000
	
55.21 	To complete design for and to construct, 
55.22 	furnish, and equip phase 2 of the Minnesota 
55.23 	sex offender treatment program at Moose 
55.24 	Lake. Upon substantial completion 
55.25 	of this project, the unspent portion of 
55.26 	this appropriation is available for asset 
55.27 	preservation projects for the Moose Lake 
55.28 	campus of the Minnesota sex offender 
55.29 	program, including design and construction 
55.30 	of a replacement water tower, abatement 
55.31 	of hazardous materials, and the demolition 
55.32 	of the existing water tower serving the 
55.33 	Moose Lake sex offender program and the 
55.34 	Department of Corrections Moose Lake 
55.35 	facility. The water tower project must 
56.1 	be cost-shared with the Department of 
56.2 	Corrections.

56.3 	Sec. 45. Laws 2010, chapter 189, section 24, subdivision 3, is amended to read:

56.4
56.5	Subd. 3.County and Local Preservation 
Grants
 				1,000,000
	
56.6 	To be allocated to county and local 
56.7 	jurisdictions as matching money for historic 
56.8 	preservation projects of a capital nature, 
56.9 	as provided in Minnesota Statutes, section 
56.10 	138.0525.
56.11 	$150,000 is for a grant to the city of South St. 
56.12 	Paul to renovate the historically significant 
56.13 	1941 Navy Hangar at 310 Airport Road at 
56.14 	Fleming Field in the city to meet life safety 
56.15 	and building code requirements, subject to 
56.16 	Minnesota Statutes, section 16A.695. No 
56.17 	local match is required for this grant.

56.18 	Sec. 46. Laws 2011, First Special Session chapter 12, section 3, subdivision 7, is 
56.19 	amended to read:

56.20	Subd. 7.Normandale Community College

56.21
56.22	Academic Partnership Center and Student 
Services
				21,984,000
	
56.23 	To design, construct, furnish, and equip a 
56.24 	new building for classrooms and offices and 
56.25 	to design, construct, furnish, and equip the 
56.26 	renovation of the Student Services Building.

56.27 	Sec. 47. Laws 2011, First Special Session chapter 12, section 3, subdivision 8, is 
56.28 	amended to read:

56.29
56.30	Subd. 8.NHED Mesabi Range Community 
and Technical College, Virginia

56.31	Iron Range Engineering Program Facilities
				3,000,000
	
57.1 	To predesign, design, construct, furnish, 
57.2 	and equip an addition to and renovation of 
57.3 	existing space for the Iron Range engineering 
57.4 	program, including laboratory spaces, other 
57.5 	learning spaces, and improvements to the 
57.6 	entrance, and to acquire a privately owned 
57.7 	housing facility on the campus.

57.8 	Sec. 48. Laws 2011, First Special Session chapter 12, section 14, subdivision 2, 
57.9 	is amended to read:

57.10
57.11	Subd. 2.Transit Capital Improvement 
Program
 				20,000,000
	
57.12 	To the Metropolitan Council or for the 
57.13 	Council to grant to Anoka County Regional 
57.14 	Railroad Authority, Dakota County, Dakota 
57.15 	County Regional Railroad Authority, 
57.16 	Hennepin County, Hennepin County 
57.17 	Regional Railroad Authority, Minnesota 
57.18 	Valley Transit Authority, Ramsey County 
57.19 	Regional Railroad Authority, or Washington 
57.20 	County Regional Railroad Authority to 
57.21 	perform environmental studies, preliminary 
57.22 	engineering, acquire property or an interest 
57.23 	in property, design or construct transitway 
57.24 	facilities and infrastructure, including 
57.25 	roadways, for the following transitway 
57.26 	projects: Northstar Ramsey station, 
57.27 	Gateway (I-94 East) corridor, Minneapolis 
57.28 	Interchange facility, Red Rock corridor, 
57.29 	Newport park-and-ride and station, Rush 
57.30 	Line corridor, Robert Street corridor, 35W 
57.31 	South Bus Rapid Transit, and Cedar Avenue 
57.32 	Bus Rapid Transit.

57.33 	Sec. 49. Laws 2011, First Special Session chapter 12, section 19, is amended to read:

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

58.1	Wastewater Infrastructure Funding Program
					
58.2 	To the Public Facilities Authority for 
58.3 	grants to eligible municipalities under the 
58.4 	wastewater infrastructure funding program 
58.5 	under Minnesota Statutes, section 446A.072.
58.6 	Notwithstanding the criteria and requirements 
58.7 	of Minnesota Statutes, section 446A.072, 
58.8 	up to $1,000,000 of this appropriation is for 
58.9 	a grant to the city of Albert Lea to design, 
58.10 	construct, and equip water and sewer utilities 
58.11 	in the area of Broadway Avenue and Main 
58.12 	Street. This project may include demolition 
58.13 	of deteriorating concrete curbs, gutters, 
58.14 	sidewalks, and streets above the utilities, 
58.15 	and the construction costs to replace and 
58.16 	rehabilitate the infrastructure.

58.17 	Sec. 50. FLOOD-RELATED APPROPRIATIONS.
 58.18 	(a) The appropriation in Laws 2010, Second Special Session chapter 1, article 1, 
58.19 	section 11, is reduced by $285,000.
58.20 	(b) $235,000 is appropriated from the general fund in fiscal year 2012 to the 
58.21 	commissioner of public safety to provide a match for Federal Emergency Management 
58.22 	Agency (FEMA) disaster assistance to state agencies and political subdivisions under 
58.23 	Minnesota Statutes, section 12.221, in the area designated under Presidential Declaration 
58.24 	of Major Disaster, FEMA-1900-DR, for the flooding in Minnesota in the spring of 2010, 
58.25 	whether included in the original declaration or added later by federal government action. 
58.26 	This is a onetime appropriation and is available until expended.
58.27 	(c) $50,000 is appropriated from the general fund in fiscal year 2012 to the 
58.28 	commissioner of natural resources for a grant to the Mankato Water Resources Center to 
58.29 	prepare a report to identify potential flood mitigation measures and projects within the 
58.30 	Zumbro River watershed as a result of the 2010 flood. By January 15 of each year, until 
58.31 	this appropriation has been spent, the commissioner shall submit a report regarding the 
58.32 	use of this appropriation to the chairs of the legislative committees with jurisdiction over 
58.33 	natural resources policy and finance. This is a onetime appropriation and is available 
58.34 	until expended.

59.1 	Sec. 51. LAKE SUPERIOR-POPLAR RIVER WATER DISTRICT.
 59.2 		Subdivision 1.Establishment. The Lake Superior-Poplar River Water District is 
59.3 	created as a municipal corporation, having the powers provided under Minnesota Statutes, 
59.4 	chapters 110A; 429, notwithstanding any provision of chapter 110A to the contrary; and 
59.5 	444. Notwithstanding any law to the contrary, the district shall not have the power to issue 
59.6 	general obligation bonds. Minnesota Statutes, sections 110A.04, 110A.07, and 110A.09 to 
59.7 	110A.18, shall not apply to the district or to the board created by this act.
59.8 		Subd. 2.Definitions. For purposes of applying Minnesota Statutes, chapter 110A, 
59.9 	to this act, "works" and "systems" shall include irrigation purposes, "court" is deemed to 
59.10 	refer to the board of county commissioners; and "secretary of state" is deemed to refer to 
59.11 	the county auditor.
59.12 		Subd. 3.Territory included in district. The territory of the district shall include 
59.13 	all lands within Sections 20, 21, 28, 29, 32, and 33 of Township 60 North, Range 3 West 
59.14 	of the Fourth Principal Meridian. Additional territory may be added as provided in 
59.15 	Minnesota Statutes, sections 110A.19 to 110A.22.
59.16 		Subd. 4.Payment of costs. No person shall be obligated to purchase or be entitled 
59.17 	to receive water from the district unless that person is a party to a contract to purchase 
59.18 	water from the district. Excluding any initial capital investment funded by the state, all 
59.19 	capital and operating expenses of the district shall be paid by the users in proportion to 
59.20 	their use of water. The cost of distribution lines: (1) departing from the main water pipe 
59.21 	from Lake Superior to the domestic water treatment plant to any user; or (2) from the 
59.22 	water treatment plant to any user, shall be paid for by the user of the water either at the 
59.23 	time of installation or by user charges that allow the district to recoup the full cost of the 
59.24 	distribution lines and the cost of financing. Subject to this subdivision and the availability 
59.25 	of water under any applicable permit with a state or federal agency, any owner of land 
59.26 	within the district may contract with the district for the purchase of water.
59.27 		Subd. 5.Board of directors; elections. (a) The district shall be governed by a 
59.28 	board of directors which shall have not less than three nor more than 13 members. The 
59.29 	district's initial directors shall be appointed by the Cook County Board of Commissioners, 
59.30 	with one director representing the domestic water users to serve for three years; up to two 
59.31 	directors representing the irrigation water users, one to serve for two years and one to 
59.32 	serve for three years; and up to two directors representing the commercial, stock watering, 
59.33 	and industrial users, one to serve for one year and one to serve for two years.
59.34 	(b) The district's establishment shall take effect upon the Cook County Board of 
59.35 	Commissioners' appointment of the initial directors. The initial directors shall meet for 
59.36 	the purposes of organization within 30 days of their appointment. Thereafter, except 
60.1 	as otherwise provided in this subdivision, directors shall be elected in accordance with 
60.2 	Minnesota Statutes, section 110A.24, from election divisions comprised of domestic water 
60.3 	users; irrigation water users, and commercial, stock watering, and industrial users. Each 
60.4 	use classification shall be entitled to elect one director, plus one additional director if its 
60.5 	expected water usage for the following fiscal year exceeds ten percent of total water 
60.6 	usage. Each water user within each use classification shall be entitled to cast one vote for 
60.7 	each one percent of expected water usage for the following fiscal year. A homeowner's 
60.8 	association shall vote on behalf of its members if duly authorized by appropriate action by 
60.9 	the association's members. Prior to each election, the board of directors shall determine 
60.10 	the use classifications entitled to vote, the expected water use percentage of each user and 
60.11 	of use classification for the following fiscal year, and the number of directors each such 
60.12 	use classification is entitled to elect. The elections shall be conducted and supervised by 
60.13 	the board of directors and ratified by the Cook County Board of Commissioners.

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

60.17 	Sec. 52. ACQUISITIONS FOR CANISTEO PROJECT.
 60.18 	The commissioner of natural resources shall acquire, without undue delay, the land 
60.19 	or interests in land that are needed to construct a conveyance system and other betterments 
60.20 	to accommodate the water level and outflow of water level from the Canisteo mine pit. 
60.21 	The commissioner may acquire the land or interests in land by eminent domain, including 
60.22 	use of the possession procedures under Minnesota Statutes, section 117.042.

60.23 	Sec. 53.  REPEALER.
 60.24 	Minnesota Rules, part 8895.0700, subpart 1, is repealed.

60.25 	Sec. 54. EFFECTIVE DATE.
 60.26 	Except as otherwise provided, this act is effective the day following final enactment.