1.1A bill for an act1.2relating to capital investment; authorizing spending to acquire and better public 1.3land and buildings and other improvements of a capital nature with certain 1.4conditions; modifying previous appropriations; establishing new programs 1.5and modifying existing programs; authorizing the sale and issuance of state 1.6bonds; appropriating money;amending Minnesota Statutes 2014, sections 85.34, 1.7subdivision 1; 161.14, by adding a subdivision; 174.52, subdivision 2; 446A.072; 1.8446A.073, as amended; 446A.081, subdivision 9; 446A.12, subdivision 1; 1.9462A.37, by adding a subdivision; Minnesota Statutes 2015 Supplement, 1.10sections 16A.967; 462A.37, subdivision 5; Laws 2002, chapter 393, section 22, 1.11subdivision 6, as amended; Laws 2008, chapter 179, section 7, subdivision 27, as 1.12amended; Laws 2011, First Special Session chapter 12, section 13, subdivision 8; 1.13Laws 2012, chapter 293, sections 7, subdivision 8; 17, subdivision 4; Laws 2014, 1.14chapter 294, article 1, sections 7, subdivision 15; 17, subdivisions 6, 12; Laws 1.152015, First Special Session chapter 5, article 1, sections 10, subdivision 3; 19; 1.16proposing coding for new law in Minnesota Statutes, chapters 16C; 115; 219; 1.17repealing Minnesota Statutes 2014, section 123A.446.1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.19ARTICLE 11.20APPROPRIATIONS

1.21Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.22    The sums shown in the column under "Appropriations" are appropriated from the 1.23bond proceeds fund, or another named fund, to the state agencies or officials indicated, 1.24to be spent for public purposes. Appropriations of bond proceeds must be spent as 1.25authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 1.26and better public land and buildings and other public improvements of a capital nature, or 1.27as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), 1.28or article XIV. Unless otherwise specified, money appropriated in this act for a capital 1.29program or project may be used to pay state agency staff costs that are attributed directly 2.1to the capital program or project in accordance with accounting policies adopted by the 2.2commissioner of management and budget. Unless otherwise specified, the appropriations 2.3in this act are available until the project is completed or abandoned subject to Minnesota 2.4Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in 2.5this act for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, 2.6should not be used for projects that can be financed within a reasonable time frame 2.7under Minnesota Statutes, section 16B.322 or 16C.144. Unless otherwise specified, an 2.8appropriation that fully funds a project does not require a nonstate match. Unless otherwise 2.9specified, general fund appropriations in this act are onetime and are in fiscal year 2017.

2.10APPROPRIATIONS

2.11Sec. 2. UNIVERSITY OF MINNESOTA

2.12Subdivision 1.Total Appropriation$160,734,000

2.13To the Board of Regents of the University 2.14of Minnesota for the purposes specified in 2.15this section.

2.162.17Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)61,500,000

2.18To be spent in accordance with Minnesota 2.19Statutes, section 135A.046.

2.202.21Subd. 3.Duluth - Chemical Sciences and Advanced Materials Science Building27,167,000

2.22To design, construct, furnish, and equip 2.23a new laboratory building on the Duluth 2.24campus, including classrooms and research 2.25and undergraduate instructional laboratories.

2.262.27Subd. 4.Twin Cities - Health Sciences Education Facility66,667,000

2.28To demolish obsolete health sciences 2.29facilities and to design, renovate, furnish, 2.30equip, and construct a health science 2.31education facility on the Twin Cities campus 2.32to meet the needs of the Medical School and 2.33the Academic Health Center.

3.13.2Subd. 5.Twin Cities - Plant Growth Research Facility4,400,000

3.3To demolish the existing biological sciences 3.4greenhouse and to predesign, design, 3.5construct, furnish, and equip a greenhouse 3.6to support learning and research on the St. 3.7Paul campus.

3.8Subd. 6.Duluth - Glensheen Mansion1,000,000

3.9To predesign, design, construct, furnish, 3.10and equip critical structural repairs and 3.11renovation of the servants' porch.

3.12Subd. 7.University Share

3.13Except for the appropriations for HEAPR and 3.14the Glensheen Mansion, the appropriations 3.15in this section are intended to cover 3.16approximately two-thirds of the cost of each 3.17project. The remaining costs must be paid 3.18from university sources.

3.19Subd. 8.Unspent Appropriations

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

4.34.4Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

4.5Subdivision 1.Total Appropriation$173,666,000

4.6To the Board of Trustees of the Minnesota 4.7State Colleges and Universities for the 4.8purposes specified in this section.

4.94.10Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)70,000,000

4.11To be spent in accordance with Minnesota 4.12Statutes, section 135A.046.

4.13Subd. 3.Anoka Ramsey Community College4,965,000

4.14To design, renovate, furnish, and equip 4.15the Humanities Building and to design the 4.16Nursing and Active Learning Center and 4.17related campus redevelopment.

4.18Subd. 4.Bemidji State University18,097,000

4.19To demolish Hagg-Sauer Hall and construct, 4.20furnish, and equip its replacement, the 4.21Academic Learning Center; to renovate 4.22and renew, furnish, and equip Bensen Hall, 4.23Sattgast Hall, Bangsberg Hall, and A.C. 4.24Clark Library.

4.25Subd. 5.Century College5,500,000

4.26To create flexible space for classroom, 4.27lab, and other learning use, to renovate the 4.28adjacent welding laboratory, and to expand 4.29robotic welding facilities.

4.304.314.32Subd. 6.Hennepin Technical College Advanced Manufacturing Integration and Revitalization Phase I; Design and Renovation8,231,000

4.33For Phase I of the Advanced Manufacturing 4.34Integration and Revitalization (AMIR) 5.1project on the Brooklyn Park campus 5.2of Hennepin Technical College that will 5.3renovate and update approximately 25,530 5.4square feet of skilled technical spaces. Phase 5.5I includes design of the entire project; roof 5.6replacement; construction, furnishing, and 5.7equipping of a new entry to the AMIR 5.8programs; and remodeling existing lab 5.9spaces and classrooms associated with the 5.10electronic, HVAC, and welding programs.

5.11Subd. 7.Hibbing Community College9,958,000

5.12To demolish Building G and connecting 5.13links or portions thereof, and to construct, 5.14renovate, furnish, and equip buildings, links, 5.15and entry spaces on the campus.

5.165.17Subd. 8.Minnesota State Community and Technical College

5.18(a) Fergus Falls Campus978,000

5.19To design, renovate, furnish, and equip 5.20a new Center for Student and Workforce 5.21Success (CSWS) that integrates the Regional 5.22Workforce Center. The board must enter into 5.23a lease agreement with the commissioner of 5.24employment and economic development, 5.25or partners of the commissioner, for use of 5.26the workforce center subject to Minnesota 5.27Statutes, section 16A.695. The board must 5.28use nonstate money for the remainder of the 5.29cost of the renovation.

5.30(b) Wadena Campus820,000

5.31To design, renovate, furnish, and equip 5.32the relocation of the current library to 5.33underutilized space and converting the 5.34vacated space into a centralized student 5.35services center.

6.16.2Subd. 9.Northland Community and Technical College, East Grand Forks826,000

6.3To design, renovate, furnish, and equip 6.4science and radiological lab space on the 6.5East Grand Forks campus.

6.66.7Subd. 10.Rochester Community and Technical College20,385,000

6.8To complete design, demolish Memorial and 6.9Plaza Halls, construct, equip, and furnish an 6.10academic building expansion, and renovate, 6.11equip, and furnish replacement space for 6.12classrooms, labs, and office spaces.

6.136.14Subd. 11.South Central College, North Mankato8,600,000

6.15To design, renovate, renew, furnish, and 6.16equip laboratory, classroom and office spaces 6.17on the North Mankato campus.

6.186.19Subd. 12.Winona State University, Education Village, Phase 225,306,000

6.20To complete design, construct, renovate, 6.21furnish, and equip Phase 2 of the Education 6.22Village project, including the renovation 6.23of Cathedral and Wabasha Halls and 6.24Wabasha Rec, and remove obsolete portions 6.25of Wabasha Rec and the Annex building 6.26between Cathedral School and Wabasha Rec.

6.27Subd. 13.Debt Service

6.28(a) Except as provided in paragraph (b), the 6.29Board of Trustees shall pay the debt service 6.30on one-third of the principal amount of state 6.31bonds sold to finance projects authorized 6.32by this section. After each sale of general 6.33obligation bonds, the commissioner of 6.34management and budget shall notify the 7.1board of the amounts assessed for each year 7.2for the life of the bonds.7.3(b) The board need not pay debt service 7.4on bonds sold to finance HEAPR. Where a 7.5nonstate match is required, the debt service is 7.6due on a principal amount equal to one-third 7.7of the total project cost, less the match 7.8committed before the bonds are sold.7.9(c) The commissioner of management and 7.10budget shall reduce the board's assessment 7.11each year by one-third of the net income 7.12from investment of general obligation bond 7.13proceeds in proportion to the amount of 7.14principal and interest otherwise required to 7.15be paid by the board. The board shall pay its 7.16resulting net assessment to the commissioner 7.17of management and budget by December 7.181 each year. If the board fails to make 7.19a payment when due, the commissioner 7.20of management and budget shall reduce 7.21allotments for appropriations from the 7.22general fund otherwise available to the board 7.23and apply the amount of the reduction to 7.24cover the missed debt service payment. The 7.25commissioner of management and budget 7.26shall credit the payments received from the 7.27board to the bond debt service account in 7.28the state bond fund each December 1 before 7.29money is transferred from the general fund 7.30under Minnesota Statutes, section 16A.641, 7.31subdivision 10.

7.32Subd. 14.Unspent Appropriations

7.33(a) Upon substantial completion of a project 7.34authorized in this section and after written 7.35notice to the commissioner of management 8.1and budget, the board must use any money 8.2remaining in the appropriation for that 8.3project for HEAPR under Minnesota 8.4Statutes, section 135A.046. The Board 8.5of Trustees must report by February 1 of 8.6each even-numbered year to the chairs of 8.7the house of representatives and senate 8.8committees with jurisdiction over capital 8.9investment and higher education finance, and 8.10to the chairs of the house of representatives 8.11Ways and Means Committee and the senate 8.12Finance Committee, on how the remaining 8.13money has been allocated or spent.8.14(b) The unspent portion of an appropriation 8.15for a project in this section that is complete is 8.16available for HEAPR under this subdivision, 8.17at the same campus as the project for which 8.18the original appropriation was made and the 8.19debt service requirement under subdivision 8.2018 is reduced accordingly. Minnesota 8.21Statutes, section 16A.642, applies from the 8.22date of the original appropriation to the 8.23unspent amount transferred.

8.24Sec. 4. EDUCATION

8.25Subdivision 1.Total Appropriation$22,234,000

8.26To the commissioner of education for the 8.27purposes specified in this section.

8.28Subd. 2.Library Construction Grants2,000,000

8.29For library construction grants under 8.30Minnesota Statutes, section 134.45.

8.31Subd. 3.Bagley - Library Furnishings50,000

8.32From the general fund for a grant to the city 8.33of Bagley for improvements, furnishings, 8.34and equipment for the city's library or 9.1to reimburse the city for improvements, 9.2furnishings, and equipment for the city's 9.3library. This appropriation does not require a 9.4nonstate contribution.

9.59.6Subd. 4.Cambridge - East Central Regional Library2,414,000

9.7For a grant to the city of Cambridge to 9.8acquire property for and to predesign, design, 9.9construct, furnish, and equip a new public 9.10library and headquarters for the East Central 9.11Regional Library system, to be located in 9.12the city of Cambridge. This appropriation 9.13is not available until the commissioner of 9.14management and budget determines that an 9.15equal amount is committed from nonstate 9.16sources.

9.17Subd. 5.Grand Rapids - Myles Reif Center500,000

9.18From the general fund for a grant to 9.19Independent School District No. 318, Grand 9.20Rapids, to cover cost overruns for the Myles 9.21Reif Center for the Performing Arts project 9.22in Grand Rapids. This appropriation is added 9.23to and is for the same purposes as the project 9.24in Laws 2014, chapter 294, article 1, section 9.2521, subdivision 8. This appropriation does 9.26not require a nonstate contribution.

9.279.28Subd. 6.Olmsted County - Dyslexia Institute of Minnesota1,500,000

9.29For a grant to Olmsted County to acquire 9.30land for, and to predesign, design, construct, 9.31furnish, and equip a facility in Olmsted 9.32County to support the local, regional, and 9.33national literacy work of the Dyslexia 9.34Institute of Minnesota, subject to Minnesota 9.35Statutes, section 16A.695. This appropriation 10.1is not available until the commissioner of 10.2management and budget determines that an 10.3equal amount is committed from nonstate 10.4sources.

10.510.6Subd. 7.Red Lake - Independent School District No. 38 Facility Projects14,070,000

10.7(a) $9,735,000 of this appropriation is from 10.8the maximum effort school loan fund for a 10.9capital loan to Independent School District 10.10No. 38, Red Lake, as provided in Minnesota 10.11Statutes, sections 126C.60 to 126C.72, and 10.12$4,335,000 of this appropriation is from 10.13the general fund. This appropriation is 10.14to complete design and construction of 10.15a connection structure between the Red 10.16Lake Early Learning Childhood Center and 10.17Red Lake Elementary School; renovations 10.18to various classrooms, labs, and support 10.19rooms; updating of mechanical systems; 10.20and expansion of the cafeteria. Before 10.21any capital loan contract is approved 10.22under this subdivision, the district must 10.23provide documentation acceptable to the 10.24commissioner of education on how the 10.25capital loan will be used.10.26(b) The commissioner of administration 10.27may provide project management services 10.28to assist the Department of Education with 10.29oversight of the project. No money for 10.30construction may be distributed by the 10.31commissioner of education to the recipient 10.32school district until bids have been received 10.33on 100 percent of the construction documents 10.34and satisfactory documentation has been 10.35submitted to the commissioner of education 11.1indicating the project can be fully completed 11.2with money available for the project.

11.311.4Subd. 8.Warroad - Northwest Angle School Expansion700,000

11.5For a grant to the Warroad School District to 11.6construct, furnish, and equip an expansion of 11.7the Northwest Angle School. No nonstate 11.8match is required.

11.911.1011.11Subd. 9.White Bear Lake - Independent School District No. 624 - Community Achievement Center1,000,000

11.12(a) For a grant to Independent School 11.13District No. 624, White Bear Lake Area 11.14Schools, to acquire land or real property for 11.15a comprehensive service center to deliver 11.16integrated services, including medical and 11.17dental services for young children, county 11.18human services, family support services, and 11.19early childhood education to the northeast 11.20metropolitan area.11.21(b) Any unspent portion of this appropriation 11.22after completion of the acquisition in 11.23paragraph (a) may be used for predesign and 11.24design.11.25(c) This appropriation does not require a 11.26nonstate match.

11.27Sec. 5. MINNESOTA STATE ACADEMIES

11.28Subdivision 1.Total Appropriation$2,210,000

11.29To the commissioner of administration for 11.30the purposes specified in this section.

11.31Subd. 2.Asset Preservation2,000,000

11.32For capital asset preservation improvements 11.33and betterments on both campuses of the 11.34Minnesota State Academies, to be spent in 12.1accordance with Minnesota Statutes, section 12.216B.307.

12.3Subd. 3.Minnesota State Academies Track160,000

12.4For the construction of a track located on 12.5the Minnesota State Academy for the Blind 12.6campus, subject to Minnesota Statutes, 12.7section 16A.695. This appropriation is 12.8not available until the commissioner of 12.9management and budget determines that an 12.10amount sufficient to complete the project is 12.11committed from nonstate sources.

12.1212.13Subd. 4.Minnesota State Academies Security Corridor50,000

12.14For predesign for a safety corridor on the 12.15Minnesota State Academy for the Deaf 12.16campus.

12.1712.18Sec. 6. PERPICH CENTER FOR ARTS EDUCATION$2,300,000

12.19To the commissioner of administration for 12.20capital asset preservation improvements and 12.21betterments at the Perpich Center for Arts 12.22Education, to be spent in accordance with 12.23Minnesota Statutes, section 16B.307.

12.24Sec. 7. NATURAL RESOURCES

12.25Subdivision 1.Total Appropriation$126,635,000

12.26To the commissioner of natural resources 12.27for the purposes specified in this section. 12.28The appropriations in this section are 12.29subject to the requirements of the natural 12.30resources capital improvement program 12.31under Minnesota Statutes, section 86A.12, 12.32unless this section or the statutes referred 12.33to in this section provide more specific 13.1standards, criteria, or priorities for projects 13.2than Minnesota Statutes, section 86A.12.

13.3Subd. 2.Natural Resources Asset Preservation33,000,000

13.4For the renovation of state-owned facilities 13.5and recreational assets operated by the 13.6commissioner of natural resources to 13.7be spent in accordance with Minnesota 13.8Statutes, section 84.946. Notwithstanding 13.9Minnesota Statutes, section 84.946: (1) the 13.10commissioner may use this appropriation 13.11to replace buildings if, considering the 13.12embedded energy in the building, that is the 13.13most energy-efficient and carbon-reducing 13.14method of renovation; and (2) this 13.15appropriation may be used for projects to 13.16remove life safety hazards such as building 13.17code violations or structural defects.

13.18Subd. 3.Buildings and Facilities Development2,000,000

13.19To design and construct office and storage 13.20buildings, to replace buildings that are in 13.21poor condition, outdated, and no longer 13.22support the work of the department. This 13.23appropriation includes money to predesign a 13.24consolidated office in Bemidji.

13.25Subd. 4.Flood Hazard Mitigation20,000,000

13.26(a) For the state share of flood hazard 13.27mitigation grants for publicly owned capital 13.28improvements to prevent or alleviate flood 13.29damage under Minnesota Statutes, section 13.30103F.161.13.31(b) Levee projects, to the extent practical, 13.32shall meet the state standard of three feet 13.33above the 100-year flood elevation.14.1(c) Project priorities shall be determined by 14.2the commissioner as appropriate and based 14.3on need.14.4(d) This appropriation includes money for 14.5the following county and municipal projects: 14.6Afton, Austin, Bloomington, Browns 14.7Valley, Delano, Golden Valley, Halstad, 14.8Hawley, Hendrum, Inver Grove Heights, 14.9Maynard, Montevideo, Nielsville, Ortonville, 14.10Owatonna, Perley, Rushford, and St. Vincent.14.11(e) This appropriation includes money for 14.12projects in the following watersheds: Bois de 14.13Sioux Watershed District, Buffalo Red River 14.14Watershed District, Cedar River Watershed 14.15District, Lower Minnesota River Watershed 14.16District, Middle Snake Tamarac Rivers 14.17Watershed District, Upper Minnesota River 14.18Watershed District, Prior Lake-Spring Lake 14.19Watershed District, Red Lake Watershed 14.20District, Roseau River Watershed District, 14.21Sand Hill River Watershed District, Shell 14.22Rock River Watershed District, Two Rivers 14.23Watershed District, and Wild Rice River 14.24Watershed District.14.25(f) For any project listed in this subdivision 14.26that the commissioner determines is not 14.27ready to proceed or does not expend all the 14.28money allocated to it, the commissioner may 14.29allocate that project's money to a project on 14.30the commissioner's priority list.14.31(g) To the extent that the cost of a project 14.32exceeds two percent of the median household 14.33income in a municipality or township 14.34multiplied by the number of households in the 15.1municipality or township, this appropriation 15.2is also for the local share of the project.15.3(h) To the extent practicable and consistent 15.4with the project, recipients of appropriations 15.5for flood damage reduction projects in this 15.6subdivision shall create wetlands that are 15.7eligible for wetland replacement credit to 15.8replace wetlands drained or filled as a result 15.9of repair, reconstruction, replacement, or 15.10rehabilitation of an existing public road 15.11under Minnesota Statutes, section 103G.222, 15.12subdivision 1, paragraphs (l) and (m).15.13(i) Wetlands established by flood control 15.14projects funded in this subdivision that 15.15are not needed for replacement credit as 15.16part of a flood damage project funded in 15.17this subdivision, are eligible for wetland 15.18replacement credit under Minnesota Statutes, 15.19sections 103G.222 to 103G.2243.

15.20Subd. 5.Dam Renovation, Repair, Removal10,050,000

15.21To renovate or remove publicly owned dams. 15.22The commissioner shall determine project 15.23priorities as appropriate under Minnesota 15.24Statutes, sections 103G.511 and 103G.515. 15.25This appropriation does not require a nonstate 15.26match for the Lanesboro Dam project. 

15.27Subd. 6.RIM Critical Habitat1,500,000

15.28To provide the state match for the critical 15.29habitat private sector matching account under 15.30Minnesota Statutes, section 84.943.

15.31Subd. 7.Fish Hatchery Development1,000,000

15.32For improvements and system upgrades of a 15.33capital nature to hatchery facilities owned by 15.34the state and operated by the commissioner of 16.1natural resources under Minnesota Statutes, 16.2section 97A.045, subdivision 1, to prevent 16.3the spread of invasive species and pathogens.

16.416.5Subd. 8.Mille Lacs Lake - Fisheries Management Station3,500,000

16.6To design and construct a fishery 16.7management station near Mille Lacs Lake to 16.8provide office, hatchery, and storage space. 

16.9Subd. 9.Reforestation and Stand Improvement2,300,000

16.10To provide for reforestation and stand 16.11improvement on state forest lands to meet 16.12the reforestation requirements of Minnesota 16.13Statutes, section 89.002, subdivision 2, 16.14including purchasing native seeds and native 16.15seedlings, planting, seeding, site preparation, 16.16and protection on state lands administered 16.17by the commissioner.

16.18Subd. 10.State Park Campground Renovations1,000,000

16.19To rehabilitate and provide enhancements 16.20to campgrounds, including meeting code 16.21requirements and improving safety and 16.22accessibility. This appropriation is for the 16.23campground at Jay Cooke State Park and 16.24high-priority work at other campgrounds.

16.2516.26Subd. 11.Park, State Recreation Area, and Trail Development19,740,000

16.27(a) For acquisition, development, and 16.28renovation of state trails under Minnesota 16.29Statutes, section 85.015. Of this amount, 16.30$2,000,000 is for the Gitchi-Gami Trail at 16.31Tofte; $2,590,000 is for the Glacial Lakes 16.32Trail; $1,300,000 is for the Goodhue Pioneer 16.33Trail; $3,300,000 is for the Heartland Trail 16.34from Detroit Lakes to Frazee and spur 17.1from Park Rapids to Itasca State Park; and 17.2$650,000 is for the Mill Town Trail.17.3(b) $1,900,000 is for acquisition and 17.4development in the Cuyuna Country State 17.5Recreation Area, including the Cuyuna 17.6Mountain Bike System.17.7(c) $8,000,000 is for continued development 17.8of recreational opportunities at the Lake 17.9Vermilion-Soudan Underground Mine State 17.10Park.17.11(d) The commissioner may allocate money 17.12not needed to complete a project listed in 17.13this section to another project listed in this 17.14section that may need additional money 17.15to be completed.  For any project listed 17.16in this subdivision that the commissioner 17.17determines is not ready to proceed, the 17.18commissioner may reallocate that project's 17.19money to another state trail project 17.20described in this section or other state trail 17.21infrastructure.  The commissioner of natural 17.22resources must notify the chairs of the house 17.23of representatives and senate committees 17.24with jurisdiction over environment and 17.25natural resources and legislators from the 17.26affected legislative districts of any changes 17.27made under this paragraph.

17.28Subd. 12.Itasca State Park Renovations6,900,000

17.29To provide for the renovation of buildings 17.30and infrastructure and for natural 17.31resources restoration in Itasca State Park. 17.32Projects include safety and accessibility 17.33improvements, rehabilitation of the 17.34historic Nicollet Court building, and 18.1erosion protection at the headwaters of the 18.2Mississippi River.

18.3Subd. 13.Austin - Waterways Restoration600,000

18.4For a grant to the city of Austin to design, 18.5construct, and equip improvements at the 18.6site of the old 4th Avenue Mill and Dam, 18.7including the construction of bituminous 18.8trails, completion of landscaping work, 18.9and renovation of the existing mill; for 18.10stream bank stabilization throughout the 18.11city, including the removal of downed 18.12trees and debris, replacement of riprap, 18.13and establishment of native vegetation. 18.14This appropriation is not available until 18.15the commissioner of management and 18.16budget determines that an equal amount is 18.17committed from nonstate sources.

18.18Subd. 14.Champlin - Mill Pond Restoration3,300,000

18.19For a grant to the city of Champlin to 18.20dredge and remove sediment and for other 18.21capital improvements of the Champlin Mill 18.22Pond necessary to improve water quality, 18.23restore fish habitat, and provide other public 18.24benefits. This appropriation is not available 18.25until the commissioner of management and 18.26budget determines that an equal amount is 18.27committed from nonstate sources.

18.28Subd. 15.Dakota County - Byllesby Dam6,000,000

18.29For a grant to Dakota County to design 18.30and construct capital improvements to the 18.31hydro-electric generating facility, including 18.32replacement of obsolete turbines, at the 18.33Byllesby Dam, located on the Cannon 18.34River. This appropriation is not available 19.1until the commissioner of management and 19.2budget determines that an equal amount is 19.3committed from nonstate sources.

19.419.5Subd. 16.Dakota County - Minnesota River Regional Trail2,500,000

19.6For a grant to Dakota County under 19.7Minnesota Statutes, section 85.019, 19.8subdivision 4b, to design and construct 19.9a 3.2-mile multiuse segment, including 19.10upgrades to existing facilities and a new 19.11trailhead at Lone Oak Road, of the Minnesota 19.12River Regional Trail between Cedar Avenue 19.13and Lone Oak Road in the city of Eagan. 

19.1419.15Subd. 17.Golden Valley - Storm Water Infrastructure 8,400,000

19.16For a grant to the city of Golden Valley for 19.17storm water infrastructure within the DeCola 19.18Ponds and Medicine Lake Road watershed 19.19in the cities of Golden Valley, New Hope, 19.20and Crystal, including creation of floodwater 19.21storage, subwatershed diversion, and runoff 19.22rate control projects. This appropriation 19.23is not available until the commissioner of 19.24management and budget determines that an 19.25equal amount is committed from nonstate 19.26sources.

19.2719.28Subd. 18.Itasca County - Popple River Recreation Bridge385,000

19.29For a grant to Itasca County to design and 19.30construct a multiuse recreation bridge over 19.31the Popple River and a paved trail connection 19.32to Village Road in the city of Squaw Lake. 19.33This appropriation is not available until 19.34the commissioner of management and 19.35budget determines that an equal amount is 19.36committed from nonstate sources.

20.120.2Subd. 19.Lake County - Prospectors ATV Trail System1,000,000

20.3For a grant to Lake County for construction, 20.4including bridges, of the Prospectors ATV 20.5Trail System linking the communities of 20.6Ely, Babbitt, Embarrass, and Tower; Bear 20.7Head Lake and Lake Vermilion-Soudan 20.8Underground Mine State Parks; the Taconite 20.9State Trail; and the Lake County Regional 20.10ATV Trail System. This appropriation is 20.11not available until the commissioner of 20.12management and budget determines that an 20.13equal amount is committed from nonstate 20.14sources.

20.15Subd. 20.Rochester - Chester Woods Trail1,000,000

20.16To complete construction and paving of 20.17phase one of the Chester Woods State Trail 20.18from the city of Rochester to Chester Woods 20.19Park in Olmsted County.

20.2020.21Subd. 21.St. Louis and Lake Counties Regional Rail Authority - Mesabi Trail1,697,000

20.22For a grant to the St. Louis and Lake 20.23Counties Regional Railroad Authority to 20.24continue construction of the Mesabi Trail, 20.25starting near Whalston Road and going 20.26toward the city of Tower. This appropriation 20.27does not require a nonstate contribution.

20.2820.29Subd. 22.Two Harbors Small Craft Harbor Facility763,000

20.30For a grant to the City of Two Harbors to 20.31design and engineer a small craft harbor 20.32within the City of Two Harbors. This 20.33appropriation is not available until the 20.34commissioner of management and budget 20.35confirms that an amount sufficient to 21.1complete the project is committed from 21.2nonstate sources.

21.3Subd. 23.Unspent Appropriations

21.4The unspent portion of an appropriation for 21.5a project in this section that is complete, 21.6upon written notice to the commissioner 21.7of management and budget, is available 21.8for asset preservation under Minnesota 21.9Statutes, section 84.946. Minnesota Statutes, 21.10section 16A.642, applies from the date of the 21.11original appropriation to the unspent amount 21.12transferred.

21.13Sec. 8. POLLUTION CONTROL AGENCY

21.14Subdivision 1.Total Appropriation$31,655,000

21.15To the Pollution Control Agency for the 21.16purposes specified in this section.

21.17Subd. 2.Capital Assistance Program11,750,000

21.18(a) This appropriation is for the solid waste 21.19capital assistance grant program under 21.20Minnesota Statutes, section 115A.54.21.21(b) Of this appropriation, $9,250,000 is for a 21.22grant to Polk County to complete a regional 21.23integrated solid waste management system. 21.24An additional renewable energy component 21.25shall not be mandated as a requirement of 21.26this project to qualify for funding under this 21.27section.21.28(c) Of this appropriation, $2,500,000 is for 21.29a grant to McLeod County to complete an 21.30integrated solid waste system.

21.31Subd. 3.Variance Assistance Reimbursement300,000

21.32From the general fund for deposit in the 21.33variance assistance account under Minnesota 22.1Statutes, section 115.441, to reimburse 22.2municipalities for the cost of applying 22.3for a variance from certain permitting 22.4requirements.

22.5Subd. 4.St. Louis River Area of Concern12,705,000

22.6To design and implement contaminated 22.7sediment management actions identified in 22.8the St. Louis River remedial action plan to 22.9restore water quality in the St. Louis River 22.10Area of Concern.

22.1122.1222.13Subd. 5.Redwood-Cottonwood Rivers Joint Powers - Lake Redwood Reclamation and Enhancement Project6,900,000

22.14For a grant to the Redwood-Cottonwood 22.15Rivers control area, a joint powers entity, 22.16to predesign, design, construct, and equip 22.17the reservoir reclamation and enhancement 22.18of the 66-acre Lake Redwood Reservoir. 22.19This appropriation is available after the 22.20commissioner of management and budget 22.21determines that $870,000 is committed from 22.22nonstate sources.

22.2322.24Sec. 9. BOARD OF WATER AND SOIL RESOURCES

22.25Subdivision 1.Total Appropriation$4,500,000

22.26To the Board of Water and Soil Resources 22.27for the purposes specified in this section.

22.2822.29Subd. 2.Reinvest in Minnesota (RIM) Reserve Program1,500,000

22.30(a) To acquire conservation easements from 22.31landowners to preserve, restore, create, and 22.32enhance wetlands and associated uplands 22.33of prairie and grasslands, and restore and 22.34enhance rivers and streams, riparian lands, 22.35and associated uplands of prairie and 23.1grasslands in order to protect soil and water 23.2quality, support fish and wildlife habitat, 23.3reduce flood damage, and provide other 23.4public benefits. The provisions of Minnesota 23.5Statutes, section 103F.515, apply to this 23.6program.23.7(b) The board shall give priority to leveraging 23.8federal money by enrolling targeted new 23.9lands or enrolling environmentally sensitive 23.10lands that have expiring federal conservation 23.11agreements.23.12(c) The board is authorized to enter into 23.13new agreements and amend past agreements 23.14with landowners as required by Minnesota 23.15Statutes, section 103F.515, subdivision 5, to 23.16allow for restoration. Of this appropriation, 23.17up to five percent may be used for restoration 23.18and enhancement.

23.1923.20Subd. 3.Local Government Roads Wetland Replacement Program3,000,000

23.21To acquire land or permanent easements 23.22and to restore, create, enhance, and preserve 23.23wetlands to replace those wetlands drained or 23.24filled as a result of the repair, reconstruction, 23.25replacement, or rehabilitation of existing 23.26public roads as required by Minnesota 23.27Statutes, section 103G.222, subdivision 1, 23.28paragraphs (l) and (m). The board may vary 23.29the priority order of Minnesota Statutes, 23.30section 103G.222, subdivision 3, paragraph 23.31(a), to implement an in-lieu fee agreement 23.32approved by the U.S. Army Corps of 23.33Engineers under section 404 of the Clean 23.34Water Act. The purchase price paid for 23.35acquisition of land or perpetual easement 23.36must be a fair market value as determined 24.1by the board. The board may enter into 24.2agreements with the federal government, 24.3other state agencies, political subdivisions, 24.4nonprofit organizations, fee title owners, or 24.5other qualified private entities to acquire 24.6wetland replacement credits in accordance 24.7with Minnesota Rules, chapter 8420.

24.8Sec. 10. AGRICULTURE

24.9Subdivision 1.Total Appropriations$2,824,000

24.10To the commissioner of agriculture for the 24.11purposes specified in this section. 

24.12Subd. 2.Agriculture Lab2,218,000

24.13From the general fund for equipment and 24.14instruments for the agriculture laboratory. 24.15This appropriation is available until June 30, 24.162022.

24.17Subd. 3.AURI606,000

24.18From the general fund for a grant to 24.19Agricultural Utilization Research Institute 24.20(AURI) for construction of a development 24.21kitchen, sensory lab, and safety and security 24.22upgrades at AURI's Crookston facility 24.23and for communications and information 24.24technology upgrades at the Crookston, 24.25Marshall, and Waseca facilities.

24.26Sec. 11. RURAL FINANCE AUTHORITY$35,000,000

24.27For the purposes set forth in the Minnesota 24.28Constitution, article XI, section 5, paragraph 24.29(h), to the Rural Finance Authority to 24.30purchase participation interests in or to 24.31make direct agricultural loans to farmers 24.32under Minnesota Statutes, chapter 41B. This 24.33appropriation is from the bond proceeds 25.1account in the rural finance administration 25.2fund and is for the beginning farmer program 25.3under Minnesota Statutes, section 41B.039; 25.4the loan restructuring program under 25.5Minnesota Statutes, section 41B.04; the 25.6seller-sponsored program under Minnesota 25.7Statutes, section 41B.042; the agricultural 25.8improvement loan program under Minnesota 25.9Statutes, section 41B.043; and the livestock 25.10expansion loan program under Minnesota 25.11Statutes, section 41B.045. All debt service 25.12on bond proceeds used to finance this 25.13appropriation must be repaid by the Rural 25.14Finance Authority under Minnesota Statutes, 25.15section 16A.643. Loan participations 25.16must be priced to provide full interest 25.17and principal coverage and a reserve for 25.18potential losses. Priority for loans must be 25.19given first to basic beginning farmer loans, 25.20second to seller-sponsored loans, and third to 25.21agricultural improvement loans.

25.2225.23Sec. 12. MINNESOTA ZOOLOGICAL GARDEN

25.24Subdivision 1.Total Appropriation$21,780,000

25.25To the Minnesota Zoological Garden Board 25.26for the purposes specified in this section.

25.27Subd. 2.Asset Preservation4,000,000

25.28For capital asset preservation improvements 25.29and betterments to infrastructure and 25.30exhibits at the Minnesota Zoo, to be spent in 25.31accordance with Minnesota Statutes, section 25.3216B.307.

25.33Subd. 3.Heart of the Zoo II17,780,000

26.1To complete the Heart of the Zoo II project, 26.2including renovation of the snow monkey 26.3exhibit and surrounding public spaces 26.4and construction of a meerkat exhibit. 26.5This appropriation is in addition to the 26.6appropriation in Laws 2014, chapter 294, 26.7article 1, section 11, subdivision 3.

26.8Sec. 13. ADMINISTRATION

26.9Subdivision 1.Total Appropriation$40,203,000

26.10To the commissioner of administration for 26.11the purposes specified in this section.

26.1226.13Subd. 2.Capitol Complex - Physical Security Upgrades18,500,000

26.14For the design, construction, and equipping 26.15required to upgrade the physical security 26.16elements and systems for the buildings 26.17listed below, their attached tunnel systems, 26.18and their surrounding grounds, and parking 26.19facilities as identified in the 2014 Minnesota 26.20State Capitol Complex Physical Security 26.21Study conducted by Miller Dunwiddie 26.22Architecture. Work includes but is not 26.23limited to the installation of bollards, blast 26.24protection, infrastructure security screen 26.25walls, door access controls, emergency call 26.26stations, security kiosks, locking devices, 26.27and traffic control. This appropriation 26.28includes money for work associated with 26.29the following buildings: Administration, 26.30Centennial, Judicial, Ag/Health Lab, 26.31Minnesota History Center, Minnesota 26.32History Center Loading Dock, Capitol 26.33Complex Power Plant and Shops, Stassen, 26.34State Office, and Veterans Service.

27.127.2Subd. 3.Capitol Complex - Physical Security Upgrades3,400,000

27.3From the general fund in fiscal year 2017, 27.4for the design, construction, and equipping 27.5required to upgrade the physical security 27.6elements and systems for the buildings 27.7listed below, their attached tunnel systems, 27.8and their surrounding grounds and parking 27.9facilities as identified in the 2014 Minnesota 27.10State Capitol Complex Physical Security 27.11Study conducted by Miller Dunwiddie 27.12Architecture. Work includes but is not 27.13limited to the installation of bollards, blast 27.14protection, infrastructure security screen 27.15walls, door access controls, emergency call 27.16stations, security kiosks, locking devices, 27.17and traffic control. This appropriation 27.18includes money for work associated with the 27.19Andersen and Freeman Buildings.

27.20Subd. 4.Centennial Parking Ramp10,878,000

27.21(a) To complete design and for structural 27.22repairs to the Centennial parking ramp, 27.23including removal of the top deck green 27.24space to provide additional parking capacity, 27.25repairing damaged post-tension cables, and 27.26installation of a deck surface protection 27.27coating.27.28(b) Any unexpended amount of this 27.29appropriation after completing the project 27.30in paragraph (a) may be used to design and 27.31construct a storm water retention basin, 27.32adjacent to the Centennial parking ramp, 27.33if the commissioner of administration 27.34determines that the basin is feasible.

28.128.2Subd. 5.Capital Asset Preservation and Replacement Account2,500,000

28.3To be spent in accordance with Minnesota 28.4Statutes, section 16A.632.

28.5Subd. 6.Agency Relocation1,500,000

28.6From the general fund in fiscal year 2017 to 28.7relocate boards, councils, state agencies, and 28.8other state entities as needed for the efficient 28.9and effective operation of state government. 28.10This appropriation is available until June 30, 28.112022.

28.12Subd. 7.Strategic Plan for Enterprise Facilities1,475,000

28.13From the general fund to create a strategic 28.14facilities master plan for facilities used by 28.15state agencies.

28.1628.17Subd. 8.Granite Falls - Pioneer Public Television1,950,000

28.18From the general fund to provide an 28.19equipment grant to Pioneer Public Television 28.20as part of the station's construction of a 28.21new facility in Granite Falls, Minnesota. 28.22The money may be used to purchase and 28.23install equipment necessary to the station's 28.24operation. This appropriation does not 28.25require a nonstate contribution.

28.26Sec. 14. MN.IT$$1,432,000

28.27To the commissioner of administration 28.28to predesign, design, construct, renovate, 28.29furnish, and equip existing state data 28.30center facilities at the Bureau of Criminal 28.31Apprehension's Maryland Avenue office 28.32building and at the Department of Revenue's 28.33Stassen Office Building for the purpose 29.1of decommissioning and repurposing into 29.2usable office space.

29.329.4Sec. 15. MINNESOTA AMATEUR SPORTS COMMISSION

29.5Subdivision 1.Total Appropriation$5,932,000

29.6To the Minnesota Amateur Sports 29.7Commission for the purposes specified in 29.8this section.

29.9Subd. 2.Asset Preservation850,000

29.10For asset preservation improvements and 29.11betterments of a capital nature at the National 29.12Sports Center in Blaine, to be spent in 29.13accordance with Minnesota Statutes, section 29.1416B.307.

29.15Subd. 3.National Sports Center Expansion5,082,000

29.16To prepare a site for, including demolition, 29.17and to construct maintenance facilities, 29.18parking lots, roads, athletic fields, and other 29.19infrastructure necessary to complete the 29.20tournament field expansion at the National 29.21Sports Center in Blaine.

29.22Sec. 16. MILITARY AFFAIRS 

29.23Subdivision 1.Total Appropriation$10,500,000

29.24To the adjutant general for the purposes 29.25specified in this section.

29.26Subd. 2.Asset Preservation2,500,000

29.27For asset preservation improvements and 29.28betterments of a capital nature at military 29.29affairs facilities statewide, to be spent in 29.30accordance with Minnesota Statutes, section 29.3116B.307. Of this appropriation, $1,620,000 29.32is for asset preservation at the Rochester 30.1Readiness Center and $880,000 is for asset 30.2preservation at the Willmar Readiness Center.

30.3Subd. 3.St. Cloud Armory3,500,000

30.4To complete design, renovation, expansion, 30.5furnishing, and equipping of the St. Cloud 30.6Readiness Center. The renovation includes 30.7but is not limited to: installing HVAC 30.8systems, improving life/safety systems, 30.9increasing energy efficiency, and upgrading 30.10the facility to serve a dual gender force. 30.11This appropriation is not available until 30.12the commissioner of management and 30.13budget determines that an equal amount is 30.14committed from nonstate sources.

30.15Subd. 4.West St. Paul Armory4,500,000

30.16To predesign, design, construct, furnish, 30.17and equip a new National Guard Readiness 30.18Center in a metropolitan county as defined 30.19in Minnesota Statutes, section 473.121, 30.20subdivision 4. This appropriation is intended 30.21to support construction of a joint National 30.22Guard Readiness Center and city of West 30.23St. Paul municipal building located in the 30.24city of West St. Paul, provided that the city 30.25identifies suitable land to meet federal rules 30.26for armory construction and agrees by the 30.27end of 2016 to commit sufficient nonstate 30.28funds to complete the project. 30.29This appropriation is not available until the 30.30commissioner of management and budget 30.31determines that an amount sufficient to 30.32complete the project is committed from 30.33nonstate sources.

30.34Subd. 5.Unspent Appropriations

31.1The unspent portion of an appropriation for 31.2a project in this section that is complete, 31.3upon written notice to the commissioner of 31.4management and budget, is available for 31.5statewide asset preservation under Minnesota 31.6Statutes, section 16B.307. Minnesota 31.7Statutes, section 16A.642, applies from the 31.8date of the original appropriation to the 31.9unspent amount transferred.

31.10Sec. 17. PUBLIC SAFETY

31.11Subdivision 1.Total Appropriation$42,988,000

31.12To the commissioner of administration for 31.13the purposes specified in this section.

31.1431.15Subd. 2.Arden Hills - State Emergency Operations Center 33,302,000

31.16For the design, site development, 31.17construction, and equipping of a new 31.18state emergency operations center (SEOC) 31.19for the Department of Public Safety at 31.20Arden Hills. The facility will serve as the 31.21location for coordinating state support to 31.22local governments during emergencies and 31.23disasters. It will also be a critical continuity 31.24of government (COG) facility for state 31.25government leaders during an incident at the 31.26Capitol complex.

31.2731.28Subd. 3.Camp Ripley - Railroad and Pipeline Incident Training Facility3,521,000

31.29To design and construct a joint emergency 31.30railroad and pipeline emergency response 31.31training facility at Camp Ripley, including 31.32the construction of stations and capital 31.33infrastructure needed for mock disaster 31.34training.

32.132.2Subd. 4.Glenwood - Police and Fire Departments300,000

32.3For a grant to the city of Glenwood to 32.4design, renovate, construct, furnish, and 32.5equip a facility for the municipal police 32.6and fire departments. This appropriation 32.7is not available until the commissioner of 32.8management and budget determines that an 32.9equal amount is committed from nonstate 32.10sources.

32.11Subd. 5.Hallock - Fire Hall290,000

32.12For a grant to the city of Hallock to construct, 32.13furnish, and equip a fire hall facility. 32.14Notwithstanding Minnesota Statutes, section 32.1516A.86, subdivision 4, this appropriation 32.16is available after the commissioner of 32.17management and budget determines that at 32.18least $70,000 is committed from nonstate 32.19sources.

32.20Subd. 6.Mahnomen - Public Safety Facility175,000

32.21For a grant to the city of Mahnomen for 32.22predesign of a public safety facility in the 32.23city of Mahnomen to serve the counties of 32.24Mahnomen, Clearwater, and Becker.  This 32.25appropriation is not available until at least 32.26an equal amount is committed from nonstate 32.27sources.

32.2832.29Subd. 7.Minneapolis Emergency Operations Training Facility (EOTF) Enhancement2,500,000

32.30For a grant to the city of Minneapolis 32.31for the predesign, design, engineering, 32.32and construction of the expansion of the 32.33Emergency Operation Center and Fire 32.34Training Facility. This appropriation is 32.35not available until the commissioner of 33.1management and budget determines that an 33.2equal amount is committed to the project 33.3from nonstate sources.

33.4Subd. 8.Roseau - Fire Station Expansion700,000

33.5For a grant to the city of Roseau to design, 33.6construct, furnish, and equip an addition to 33.7the Roseau Fire Station. This appropriation 33.8is not available until the commissioner of 33.9management and budget determines that an 33.10equal amount is committed from nonstate 33.11sources.

33.1233.13Subd. 9.Windom - Regional Emergency Services Facility2,200,000

33.14For a grant to the city of Windom to 33.15predesign, design, construct, furnish, and 33.16equip a regional emergency services (fire 33.17and ambulance) facility. Notwithstanding 33.18Minnesota Statutes, section 16A.86, 33.19subdivision 4, this appropriation is available 33.20after the commissioner of management and 33.21budget determines that at least $1,000,000 33.22is committed to the project from nonstate 33.23sources. 

33.24Sec. 18. TRANSPORTATION

33.25Subdivision 1.Total Appropriation$365,590,000

33.26To the commissioner of transportation for the 33.27purposes specified in this section.

33.2833.29Subd. 2.Local Road Improvement Fund Grants70,000,000

33.30From the bond proceeds account in the state 33.31transportation fund as provided in Minnesota 33.32Statutes, section 174.50, for construction and 33.33reconstruction of local roads with statewide 33.34or regional significance under Minnesota 34.1Statutes, section 174.52, subdivision 4, for 34.2grants under Minnesota Statutes, section 34.3174.52, subdivision 2, or for grants to 34.4counties to assist in paying the costs of rural 34.5road safety capital improvement projects on 34.6county state-aid highways under Minnesota 34.7Statutes, section 174.52, subdivision 4a.

34.834.9Subd. 3.Local Bridge Replacement and Rehabilitation80,000,000

34.10This appropriation is from the bond proceeds 34.11account in the state transportation fund 34.12to match federal money and to replace 34.13or rehabilitate local deficient bridges as 34.14provided in Minnesota Statutes, section 34.15174.50.

34.16Subd. 4.Safe Routes to School3,000,000

34.17For grants under Minnesota Statutes, section 34.18174.40.

34.1934.20Subd. 5.Golden Valley - Douglas Drive and Highway 553,000,000

34.21For a grant to the city of Golden Valley 34.22to reconstruct approximately one and 34.23three-quarters miles of Douglas Drive north 34.24of Highway 55, including on-street bicycle 34.25lanes and off-street trails and sidewalks, and 34.26to design, engineer, and construct public 34.27safety improvements at the intersection of 34.28Douglas Drive and Highway 55, including 34.29a box culvert underpass across Highway 34.3055, a roundabout and extended frontage 34.31road south of Highway 55, retaining wall 34.32construction, underground utility relocation, 34.33sidewalk and trail connections to existing 34.34facilities, Americans with Disabilities 34.35Act-compliant facilities, and landscaping. 35.1This appropriation does not require a 35.2nonstate contribution.

35.3Subd. 6.St. Joseph - Pedestrian Bridge1,404,000

35.4For a grant to the city of St. Joseph to 35.5construct a pedestrian bridge over County 35.6Road 75 in Stearns County.

35.7Subd. 7.Port Development Assistance10,000,000

35.8For grants under Minnesota Statutes, chapter 35.9457A. Any improvements made with the 35.10proceeds of these grants must be publicly 35.11owned. Wabasha shall be a priority project 35.12for a grant under this appropriation.

35.1335.14Subd. 8.Rail Grade Separation on Crude Oil Rail Corridors65,478,000

35.15(a) To design and construct rail safety 35.16projects at highway railroad grade crossings 35.17in accordance with Minnesota Statutes, 35.18section 219.016. Of this appropriation:35.19(1) $39,729,000 is for a grant to the city 35.20of Moorhead for environmental analysis, 35.21design, engineering, removal of an existing 35.22structure, and construction of a rail grade 35.23crossing separation in the vicinity of 21st 35.24Street South;35.25(2) $13,762,000 is for a grant to the city of 35.26Red Wing for environmental analysis, design, 35.27engineering, removal of an existing structure, 35.28and construction of a rail grade crossing 35.29separation at Sturgeon Lake Road; and35.30(3) $11,987,000 is for a grant to Anoka 35.31County for environmental analysis, design, 35.32engineering, removal of an existing structure, 35.33and construction of a rail grade crossing 35.34separation at Anoka County State-Aid 36.1Highway 78, known as Hanson Boulevard, 36.2in Coon Rapids.36.3(b) Any unspent portion of this appropriation 36.4after completion of any project in this 36.5subdivision may be used for additional grants 36.6in accordance with Minnesota Statutes, 36.7section 219.016.

36.8Subd. 9.Railroad Warning Devices5,000,000

36.9To design, construct, and equip replacement 36.10of active highway-rail grade warning devices 36.11that have reached the end of their useful life.

36.12Subd. 10.Rail Service Improvement2,000,000

36.13For the rail service improvement program 36.14to be spent for the purposes set forth 36.15in Minnesota Statutes, section 222.50, 36.16subdivision 7.

36.1736.18Subd. 11.Goodview and Minnesota City - Rail Quiet Zone301,000

36.19For a grant to the city of Goodview for 36.20construction of a railroad crossing quiet zone 36.21that consists of construction and installation 36.22of concrete median barriers and associated 36.23road improvements at five Canadian Pacific 36.24railroad crossings in the cities of Goodview 36.25and Minnesota City. This appropriation does 36.26not require a local match.

36.27Subd. 12.St. Louis Park - Quiet Zone105,000

36.28For a grant to the city of St. Louis Park to 36.29install safety improvements that reduce or 36.30eliminate the need for rail horns and whistles 36.31in St. Louis Park. This appropriation is 36.32not available until the commissioner of 36.33management and budget determines that an 37.1equal amount is committed from nonstate 37.2sources.

37.3Subd. 13.Blaine - 105th Avenue Reconstruction 3,246,000

37.4For a grant to the city of Blaine to predesign, 37.5design, and reconstruct 105th Avenue in 37.6the vicinity of the National Sports Center 37.7in Blaine. The reconstruction will include 37.8changing the street from five lanes to four 37.9lanes with median, turn lanes, sidewalk, 37.10trail, landscaping, lighting, and consolidation 37.11of access driveways. This appropriation 37.12is not available until the commissioner of 37.13management and budget determines that at 37.14least $3,000,000 is committed to the project 37.15from sources available to the city, including 37.16municipal state aid and county turnback 37.17funds.

37.1837.19Subd. 14.Chaska - Trunk Highway 212 Interchange28,000,000

37.20From the bond proceeds account in the trunk 37.21highway fund for right-of-way acquisition 37.22and construction of an interchange at marked 37.23Trunk Highway 212 and Carver County 37.24Road 140 in the city of Chaska, to support 37.25the development of approximately 400 37.26acres of property in the city of Chaska's 37.27comprehensive plan. Notwithstanding 37.28Minnesota Statutes, section 16A.28, this 37.29appropriation is available for five years after 37.30the effective date of this act.

37.31Subd. 15.Duluth Airport Authority5,900,000

37.32From the state airports fund in fiscal year 37.332017 to provide the federal match to design 37.34and construct runway infrastructure at 37.35the Duluth International and Sky Harbor 38.1Airports in accordance with Minnesota 38.2Statutes, section 360.017. For the purposes 38.3of this appropriation, the commissioner 38.4may waive the requirements of Minnesota 38.5Statutes, section 360.305, subdivision 4, 38.6paragraph (b). This appropriation is for costs 38.7incurred after March 1, 2016, and is available 38.8until and must be encumbered by June 30, 38.92017. This appropriation is not available 38.10until the commissioner of management and 38.11budget determines that an equal amount is 38.12committed from nonstate sources.

38.13Subd. 16.Grand Rapids Pedestrian Bridge750,000

38.14For a grant to the city of Grand Rapids to 38.15design the construction of a bridge over the 38.16Mississippi River for pedestrian and bicycle 38.17use to provide a safe alternative route to 38.18the existing marked Trunk Highway 169 38.19vehicle bridge, and to serve as a connection 38.20to existing trail systems on each side of the 38.21river. This appropriation is not available until 38.22the commissioner determines that an equal 38.23amount has been committed to the project 38.24from nonstate sources.

38.25Subd. 17.Hennepin County - U.S. Highway 1215,000,000

38.26From the bond proceeds account in the 38.27trunk highway fund for projects, including 38.28preliminary and final design, engineering, 38.29environmental analysis, right-of-way 38.30acquisition, construction, and reconstruction 38.31on marked U.S. Highway 12 as follows:38.32(1) realignment at the intersections with 38.33Hennepin County State-Aid Highway 92;39.1(2) realignment and safety improvements 39.2at the intersection with Hennepin County 39.3State-Aid Highway 90; and39.4(3) safety median improvements from the 39.5interchange with Wayzata Boulevard in 39.6Wayzata to approximately one-half mile east 39.7of the interchange with Hennepin County 39.8State-Aid Highway 6.

39.939.10Subd. 18.Hennepin County - Interstate Highway 35W and Lake Street Access Project25,000,000

39.11From the bond proceeds account in the 39.12state transportation fund for a grant to 39.13Hennepin County for design, right-of-way 39.14acquisition, engineering, and construction 39.15of public improvements related to the 39.16Interstate Highway 35W and Lake Street 39.17access project and related improvements 39.18within the Interstate Highway 35W corridor. 39.19This appropriation is not available until the 39.20commissioner of management and budget 39.21determines that an amount sufficient to 39.22complete the project has been committed to 39.23the project.

39.24Subd. 19.Hugo - Short Line Railway1,100,000

39.25For a grant to Minnesota Commercial 39.26Railway for construction of repairs and 39.27other capital improvements to approximately 39.286.5 miles of railroad track described as 39.29that portion of the Minnesota Commercial 39.30Railway main running lead, between M & 39.31D Junction in White Bear Lake and the end 39.32of the track in Hugo. This appropriation 39.33must be used for the purposes set forth in the 39.34Minnesota Constitution, article XI, section 39.355, clause (i), to improve and rehabilitate 40.1railroad rights-of-way and other rail facilities, 40.2whether public or private. This appropriation 40.3does not require a nonstate match.

40.440.5Subd. 20.International Falls-Koochiching County Airport Commission3,000,000

40.6(a) From the state airports fund for a grant to 40.7the International Falls-Koochiching County 40.8Airport Commission for the following 40.9improvements to the Falls International 40.10Airport:40.11(1) demolition of the existing terminal 40.12building; 40.13(2) rehabilitation;40.14(3) site preparation, including utilities and 40.15civil work;40.16(4) design, construction, furnishing, and 40.17equipping Phase II of the new terminal 40.18building, including a Transportation Safety 40.19Administration office, weather office, 40.20conference room, circulation corridor, airport 40.21administration offices, U.S. Customs and 40.22Border Protection storage rooms, offices, 40.23restrooms, passenger-processing area, 40.24wet-hold room, interview room, search room, 40.25precustoms and postcustoms passenger 40.26waiting areas, and vestibule; and 40.27(5) associated appurtenances of a capital 40.28nature.40.29(b) After completion of the improvements 40.30under paragraph (a), any unspent money 40.31from this appropriation may be used by the 40.32International Falls-Koochiching County 40.33Airport Commission for a commercial 40.34airline apron expansion project at the Falls 40.35International Airport.41.1(c) This appropriation does not require a 41.2nonstate contribution or match.

41.341.4Subd. 21.Minnesota Valley Regional Rail Authority3,000,000

41.5For a grant to the Minnesota Valley Regional 41.6Rail Authority for the rehabilitation of 41.7railroad track from Winthrop to Hanley 41.8Falls. The grant under this subdivision may 41.9also be used for any required environmental 41.10documentation and remediation, predesign, 41.11design, and rehabilitation or replacement of 41.12bridges with new bridges or culverts between 41.13Winthrop and Hanley Falls. A grant under 41.14this section is in addition to any grant, loan, 41.15or loan guarantee for this project made by 41.16the commissioner under Minnesota Statutes, 41.17sections 222.46 to 222.62. This appropriation 41.18is in addition to the appropriations in Laws 41.192006, chapter 258, section 16, subdivision 41.206; Laws 2008, chapter 179, section 16, 41.21subdivision 5; Laws 2009, chapter 93, article 41.221, section 11, subdivision 4; Laws 2010, 41.23chapter 189, section 15, subdivision 5; and 41.24Laws 2015, First Special Session chapter 5, 41.25article 1, section 10, subdivision 4.

41.2641.27Subd. 22.Ramsey - Rail Grade Separation at County Road 561,500,000

41.28For a grant to the city of Ramsey for predesign 41.29and design of a highway-rail grade separation 41.30at the intersection of Anoka County Road 41.3156, also known as Ramsey Boulevard, with 41.32the Burlington Northern Santa Fe mainline. 41.33This appropriation is not available until 41.34the commissioner of management and 41.35budget determines that an equal amount is 41.36committed from nonstate sources.

42.142.2Subd. 23.Ramsey County - I-694 Rice Street Interchange15,421,000

42.3For a grant to Ramsey County for 42.4preliminary and final design, environmental 42.5documentation, and construction of the 42.6interchange of marked Interstate Highway 42.7694 and Rice Street in Ramsey County. 42.8The $6,600,000 previously expended from 42.9nonstate sources to acquire property for this 42.10project shall count toward the nonstate match 42.11and no further nonstate match is required. 

42.12Subd. 24.Rochester International Airport4,985,000

42.13From the general fund to design, construct, 42.14renovate, and improve the Rochester 42.15International Airport, in accordance with 42.16Minnesota Statutes, section 360.017. For 42.17the purposes of this appropriation, the 42.18commissioner may waive the requirements 42.19of Minnesota Statutes, section 360.305, 42.20subdivision 4, paragraph (b). This 42.21appropriation is available until and must 42.22be encumbered by June 30, 2017. This 42.23appropriation is not available until the 42.24commissioner of management and budget 42.25determines that an equal amount is committed 42.26from nonstate sources.

42.2742.28Subd. 25.Rosemount - County Road 42 and Marked Trunk Highway 52 Interchange2,000,000

42.29From the bond proceeds account in the 42.30state transportation fund for the city of 42.31Rosemount local share of the project that 42.32reconstructs the interchange of County Road 42.3342 at marked Trunk Highway 52 in Dakota 42.34County. This appropriation is not available 42.35until the commissioner of management and 43.1budget determines that an equal amount is 43.2committed from nonstate sources.

43.343.4Subd. 26.St. Paul - Rail Grade Separation at Westminster Junction and Division Street1,000,000

43.5For a grant to the Ramsey County Regional 43.6Railroad Authority for environmental 43.7analysis and design of rail grade separation 43.8of Union Pacific and Burlington Northern 43.9Santa Fe between Westminster Junction and 43.10Division Street/Hoffman Interlocking in St. 43.11Paul. This appropriation is not available until 43.12the commissioner determines that an equal 43.13amount has been committed to the project 43.14from nonstate sources.

43.15Subd. 27.Virginia - Highway 53 Relocation3,400,000

43.16From the bond proceeds account in the state 43.17transportation fund for grants to the city of 43.18Virginia and the Virginia Public Utilities 43.19Commission to acquire land for and to 43.20predesign, design, construct, furnish, and 43.21equip relocated public utilities, including 43.22sanitary and storm water sewers and water, 43.23electrical, and gas utilities; and to demolish 43.24and remove old utility infrastructure, all 43.25associated with the relocation of Highway 43.2653. This appropriation does not require a 43.27nonstate contribution.

43.2843.29Subd. 28.West St. Paul - Robert Street Reconstruction12,000,000

43.30From the trunk highway fund for a grant 43.31to the city of West St. Paul to complete 43.32the reconstruction of South Robert 43.33Street, marked as Trunk Highway 952. 43.34This appropriation is available after the 43.35commissioner of management and budget 44.1determines that $7,363,000 is committed 44.2from nonstate sources.

44.3Sec. 19. METROPOLITAN COUNCIL

44.4Subdivision 1.Total Appropriation$42,750,000

44.5To the Metropolitan Council for the purposes 44.6specified in this section.

44.744.8Subd. 2.Metropolitan Regional Parks and Trails Capital Improvements10,000,000 

44.9For the cost of improvements and betterments 44.10of a capital nature and acquisition by the 44.11council and local government units of 44.12regional recreational open-space lands in 44.13accordance with the council's policy plan 44.14as provided in Minnesota Statutes, section 44.15473.147. This appropriation must not be 44.16used to purchase easements.

44.1744.18Subd. 3.Metropolitan Cities Inflow and Infiltration Grants5,000,000

44.19For grants to cities within the metropolitan 44.20area, as defined in Minnesota Statutes, 44.21section 473.121, subdivision 2, for capital 44.22improvements in municipal wastewater 44.23collection systems to reduce the amount of 44.24inflow and infiltration to the Metropolitan 44.25Council's metropolitan sanitary sewer 44.26disposal system. Grants from this 44.27appropriation are for up to 50 percent of the 44.28cost to mitigate inflow and infiltration in 44.29the publicly owned municipal wastewater 44.30collection systems. To be eligible for a grant, 44.31a city must be identified by the council 44.32as a contributor of excessive inflow and 44.33infiltration in the metropolitan disposal 44.34system or have a measured flow rate within 20 44.35percent of its allowable council-determined 45.1inflow and infiltration limits. The council 45.2must award grants based on applications 45.3from cities that identify eligible capital 45.4costs and include a timeline for inflow and 45.5infiltration mitigation construction, pursuant 45.6to guidelines established by the council.

45.745.8Subd. 4.Bloomington - Mall of America Transit Station8,750,000

45.9For design and construction of improvements 45.10to the Mall of America Station on the 45.11Hiawatha Corridor light rail transit line. The 45.12Metropolitan Council must consult with the 45.13city of Bloomington throughout the design 45.14and construction process.

45.15Subd. 5.Minneapolis - Sculpture Garden500,000

45.16From the general fund for a grant to the 45.17Minneapolis Parks and Recreation Board 45.18for noncapital expenses relating to the 45.19renovation of the Minneapolis Sculpture 45.20Garden. This appropriation is available 45.21until June 30, 2019. This appropriation is in 45.22addition to the appropriation in Laws 2014, 45.23chapter 194, article 1, section 17, subdivision 45.248. This appropriation does not require a 45.25nonstate match.

45.26Subd. 6.St. Paul - Como Zoo14,500,000

45.27For a grant to the city of St. Paul for 45.28predesign, design, and engineering of Phase I 45.29of the renovation of seal and sea lion habitat 45.30at the Como Zoo. The renovated habitat 45.31will support the zoo education programs. 45.32This appropriation is not available until 45.33the commissioner of management and 45.34budget determines that at least $1,100,000 46.1is committed to the project from nonstate 46.2sources.

46.346.4Subd. 7.Washington County - Gateway Corridor Transitway3,000,000

46.5For a grant to Washington County for 46.6environmental analysis, design, and 46.7engineering for the Gateway Corridor 46.8Transitway, also known as the Metro Gold 46.9Line. This appropriation is not available 46.10until the commissioner of management and 46.11budget determines that an equal amount is 46.12committed from nonstate sources.

46.1346.14Subd. 8.Washington County - Red Rock Corridor Transitway1,000,000

46.15For a grant to the Washington County 46.16Regional Railroad Authority for engineering 46.17and environmental analysis for the Red Rock 46.18Corridor transitway. This appropriation 46.19is not available until the commissioner of 46.20management and budget determines that an 46.21equal amount is committed from nonstate 46.22sources.

46.23Sec. 20. HEALTH$2,335,000

46.24From the general fund in fiscal year 2017 to 46.25the commissioner of health for equipment 46.26and instruments for the public health 46.27laboratory. Notwithstanding Minnesota 46.28Statutes, section 16A.642, this appropriation 46.29is available until June 30, 2022.

46.30Sec. 21. HUMAN SERVICES

46.31Subdivision 1.Total Appropriation$135,135,000

46.32To the commissioner of administration, or 46.33another named agency, for the purposes 46.34specified in this section.

47.1Subd. 2.Asset Preservation5,000,000

47.2For asset preservation improvements and 47.3betterments of a capital nature at Department 47.4of Human Services facilities statewide, to be 47.5spent in accordance with Minnesota Statutes, 47.6section 16B.307.

47.747.8Subd. 3.Minnesota Security Hospital - St. Peter70,255,000

47.9To complete design, remodel, construct, 47.10furnish, and equip the second phase of the 47.11two-phase project to remodel existing and to 47.12develop new residential, program, activity, 47.13and ancillary facilities for the Minnesota 47.14Security Hospital on the upper campus of the 47.15St. Peter Regional Treatment Center. This 47.16appropriation includes money to: demolish, 47.17renovate, and remodel existing space; 47.18construct new space; address fire and life 47.19safety, and other building code deficiencies; 47.20replace or renovate interior finishes; purchase 47.21furnishings, fixtures, and equipment; replace 47.22or renovate the Minnesota Security Hospital 47.23building's HVAC, plumbing, electrical, 47.24security, and life safety systems; tuck-point; 47.25replace windows and doors; design and 47.26abate asbestos and hazardous materials; and 47.27complete site work necessary to support 47.28the programmed use of the facilities on the 47.29St. Peter Regional Treatment Center upper 47.30campus. 

47.3147.32Subd. 4.Minnesota Sex Offender Program – St. Peter14,500,000

47.33To complete design, construct, renovate, 47.34furnish, and equip the second phase of a 47.35multiphase project to develop additional 48.1residential, program, activity, and ancillary 48.2facilities for the Minnesota Sex Offender 48.3Program on the lower campus of the St. 48.4Peter Regional Treatment Center. This 48.5appropriation includes money to complete 48.6design, renovate, construct, furnish, and 48.7equip the north wing of Green Acres; the 48.8west, south, and north wings of Sunrise; and 48.9the Tomlinson building. This appropriation 48.10also includes money to: replace or renovate 48.11HVAC, plumbing, electrical, security, and life 48.12safety systems; address fire and life safety, 48.13and other building code deficiencies; replace 48.14windows and doors; tuck-point exterior 48.15building envelopes; reconfigure and remodel 48.16space; design and abate asbestos and other 48.17hazardous materials; remove or demolish 48.18nonfunctioning building components; and 48.19complete site work necessary to support the 48.20programmed use of facilities.

48.2148.22Subd. 5.Anoka Metro Regional Treatment Center Safety and Security Renovations2,250,000

48.23To provide security upgrades of a capital 48.24nature at the Anoka Metro Regional 48.25Treatment Center campus, including but 48.26not limited to control centers, electronic 48.27monitoring and perimeter security 48.28equipment, new or updated security fencing, 48.29and other building security renovations. This 48.30appropriation includes money for: predesign, 48.31design, furnishing, fixtures, and equipment; 48.32construction of safety and security 48.33improvements to courtyards on residential 48.34treatment units; securely enclosing the 48.35nursing station on Unit G; and installing a 48.36campus-wide closed-circuit television video 49.1security system, a facility-wide personal 49.2duress alarm system, a key control system, 49.3and an electronic access control system.

49.4Subd. 6.Early Childhood Learning Facilities5,000,000

49.5To the commissioner of human services for 49.6grants under Minnesota Statutes, section 49.7256E.37, to construct and rehabilitate early 49.8childhood learning facilities.

49.949.10Subd. 7.Hennepin County - Perspectives Family Center600,000

49.11From the general fund to the commissioner 49.12of human services in fiscal year 2017 for a 49.13grant to Hennepin County to predesign and 49.14design the expansion and renovation of the 49.15existing Perspectives Family Center facility 49.16in St. Louis Park, subject to Minnesota 49.17Statutes, section 16A.695. The expanded 49.18and renovated facility must be used to 49.19promote the public welfare by providing 49.20any or all of the following programs and 49.21services: (1) supportive housing programs 49.22for homeless women and their children; 49.23(2) mental and chemical health programs; 49.24(3) employment services; (4) academic, 49.25social skills, and nutritional programs for 49.26homeless and at-risk children; (5) an all-day 49.27therapeutic early childhood development 49.28program for homeless and at-risk children; 49.29and (6) a culturally sensitive safe and 49.30nurturing environment for at-risk children 49.31to meet with their nonresidential parents. 49.32This appropriation is not available until the 49.33commissioner of management and budget 49.34has determined that at least an equal amount 49.35has been expended or committed to the 50.1project from nonstate sources. Nonstate 50.2money spent on the project since May 1, 50.32015, shall be included in the determination 50.4of nonstate commitments to the project.

50.5Subd. 8.Minneapolis - The Family Partnership1,000,000

50.6From the general fund for a grant to the 50.7Family Partnership in Minneapolis to 50.8predesign and design a facility to provide 50.9mental health, early childhood education, 50.10and other services to support children and 50.11families. This appropriation is not available 50.12until at least an equal amount of money is 50.13committed from nonstate resources. This 50.14appropriation is available until the project 50.15is completed or abandoned, subject to 50.16Minnesota Statutes, section 16A.642.

50.1750.1850.1950.20Subd. 9.Red Lake Indian Reservation - Social Service Building Construction and Whitefeather/Moe Education Technology Center Remodel17,000,000

50.21(a) From the general fund for a grant to the 50.22Red Lake Indian Reservation to:50.23(1) construct a building to house the social 50.24services of Oshkiimaajitahdah in Redby; and50.25(2) remodel the Whitefeather/Moe Education 50.26Technology Center to return space to 50.27classrooms and laboratories for educational 50.28purposes.50.29(b) This appropriation is available until the 50.30project is completed or abandoned, subject to 50.31Minnesota Statutes, section 16A.642.50.32(c) This appropriation is available after the 50.33commissioner of management and budget 50.34determines that $200,000 is committed or has 50.35been expended by nonstate sources. Money 51.1spent for site preparation shall count toward 51.2the $200,000 nonstate contribution.

51.351.4Subd. 10.St. Paul - Dorothy Day Opportunity Center12,000,000

51.5For a grant to the city of St. Paul to predesign, 51.6design, construct, furnish, and equip an 51.7opportunity center to serve as an integrated 51.8one-stop delivery system connecting persons 51.9at risk of becoming homeless, and persons 51.10working to move up and out of homelessness, 51.11and to provide services that improve 51.12their health, income, housing stability, or 51.13well-being, subject to Minnesota Statutes, 51.14section 16A.695. This appropriation may be 51.15used to acquire property for these purposes. 51.16This appropriation is not available until the 51.17commissioner of management and budget has 51.18determined that at least an equal amount has 51.19been committed to the project from nonstate 51.20sources. This appropriation is in addition to 51.21the appropriation in Laws 2014, chapter 294, 51.22article 1, section 18, subdivision 9.

51.2351.24Subd. 11.Willmar - Child and Adolescent Behavioral Health Services (CABHS)7,530,000

51.25For a grant to the city of Willmar to 51.26purchase land in or near the city of Willmar 51.27for, and to predesign, design, construct, 51.28furnish, and equip, a 16-bed psychiatric 51.29hospital facility of approximately 17,500 51.30to 18,000 square feet that will house the 51.31Child and Adolescent Behavioral Health 51.32Services (CABHS) program. The facility 51.33shall include space for single bedrooms, 51.34bathing and toilets, dining, living, group and 51.35treatment rooms, education space, visitation, 51.36clinic/professional staff, operations staff, 52.1patient storage, operations storage, food 52.2preparation, HVAC/telecommunications/data 52.3equipment, a small area for indoor recreation, 52.4and a secure outdoor activity space. The 52.5property for the facility will provide for staff 52.6and visitor parking, outdoor activities, and 52.7appropriate side, front, and rear setbacks. 52.8This appropriation does not require a 52.9nonstate match.

52.10Sec. 22. VETERANS AFFAIRS

52.11Subdivision 1.Total Appropriation$22,851,000

52.12To the commissioner of administration for 52.13the purposes specified in this section.

52.14Subd. 2.Asset Preservation5,000,000

52.15For asset preservation improvements and 52.16betterments of a capital nature at the veterans 52.17homes in Minneapolis, Hastings, Fergus 52.18Falls, Silver Bay, and Luverne, to be spent in 52.19accordance with Minnesota Statutes, section 52.2016B.307.

52.2152.22Subd. 3.Minneapolis Veterans Home Truss Bridge Project7,851,000

52.23To design, construct, renovate, and equip 52.24the historic truss bridge on the Minneapolis 52.25Veterans Home campus, including asbestos 52.26and hazardous materials abatement and 52.27associated site work.

52.2852.29Subd. 4.Bemidji and Montevideo Veterans Homes10,000,000

52.30(a) $5,000,000 of this appropriation is to 52.31design, construct, furnish, and equip a 52.32veterans home in Montevideo to provide a 52.33continuum of care, including skilled nursing 52.34care, to veterans.53.1(b) $5,000,000 of this appropriation is to 53.2design, construct, furnish, and equip a new 53.3veterans home in Bemidji to provide a 53.4continuum of care, including skilled nursing 53.5care, to veterans.53.6(c) The commissioner of administration 53.7may accept contributions of land or money 53.8from private individuals, businesses, local 53.9governments, veterans service organizations, 53.10and other nonstate sources for the purpose of 53.11providing matching funding when soliciting 53.12federal funding for the development of the 53.13homes.

53.14Sec. 23. CORRECTIONS

53.15Subdivision 1.Total Appropriation$52,253,000

53.16To the commissioner of administration for 53.17the purposes specified in this section.

53.18Subd. 2.Asset Preservation20,000,000

53.19For asset preservation improvements and 53.20betterments of a capital nature at Minnesota 53.21correctional facilities statewide, to be spent 53.22in accordance with Minnesota Statutes, 53.23section 16B.307.

53.2453.25Subd. 3.Lino Lakes - Minnesota Correctional Facility5,000,000

53.26To design, renovate, and equip an existing 53.27vacant building into an offender living unit 53.28that will add at least 60 beds to the capacity 53.29at the Minnesota Correctional Facility – Lino 53.30Lakes. The renovation includes removal of 53.31hazardous materials, upgrades to comply 53.32with current building codes, and construction 53.33of functional living and program space.

54.154.2Subd. 4.Moose Lake - Minnesota Correctional Facility1,900,000

54.3To expand and renovate the outdated master 54.4control center to improve security and 54.5efficiency at the Minnesota Correctional 54.6Facility – Moose Lake. The renovation 54.7includes updating fire alarm panels and 54.8mechanical and electrical systems and 54.9improving visibility of the visiting area.

54.1054.11Subd. 5.St. Cloud - Minnesota Correctional Facility19,000,000

54.12To construct and equip a new intake unit and 54.13a loading dock with a secure connection to 54.14a new central warehouse at the Minnesota 54.15Correctional Facility  – St. Cloud.

54.16Subd. 6.Togo - Minnesota Correctional Facility2,000,000

54.17To design, construct, renovate, furnish, 54.18and equip existing buildings, including 54.19improvements to the wastewater and septic 54.20systems, and to increase the program capacity 54.21for the challenge incarceration program by at 54.22least 30 beds at the Minnesota Correctional 54.23Facility  – Togo.

54.2454.25Subd. 7.Willow River - Minnesota Correctional Facility1,500,000

54.26To design, construct, renovate, furnish, and 54.27equip new and existing buildings to increase 54.28living unit and programming capacity for 54.29the challenge incarceration program by at 54.30least 45 beds at the Minnesota Correctional 54.31Facility  – Willow River.

54.3254.33Subd. 8.Northeast Regional Corrections Center2,853,000

54.34For a grant to the Arrowhead Regional 54.35Corrections Joint Powers Board to demolish 55.1an existing facility and update, renovate, and 55.2expand buildings used for vocational and 55.3educational programming at the Northeast 55.4Regional Corrections Center. This project 55.5will expand the processing facility, add 55.6a packaging facility, and improve farm 55.7operations and vocational buildings, 55.8including the replacement or repair of 55.9roofs and air handling systems. Nonstate 55.10contributions to improvements at the center 55.11made before or after the enactment of this 55.12subdivision are considered to be a sufficient 55.13match, and no further nonstate match is 55.14required.

55.15Subd. 9.Unspent Appropriations

55.16The unspent portion of an appropriation for 55.17a Department of Corrections project in this 55.18section that is complete, upon written notice 55.19to the commissioner of management and 55.20budget, is available for asset preservation 55.21under Minnesota Statutes, section 16B.307. 55.22Minnesota Statutes, section 16A.642, applies 55.23from the date of the original appropriation to 55.24the unspent amount transferred.

55.2555.26Sec. 24. EMPLOYMENT AND ECONOMIC DEVELOPMENT

55.27Subdivision 1.Total Appropriation$159,304,000

55.28To the commissioner of employment and 55.29economic development for the purposes 55.30specified in this section.

55.31Subd. 2.Asset Preservation1,342,000

55.32For asset preservation improvements and 55.33betterments of a capital nature at the South 55.34Minneapolis WorkForce Center, to be spent 56.1in accordance with Minnesota Statutes, 56.2section 16B.307. 

56.356.4Subd. 3.Transportation Economic Development 20,000,000

56.5For grants under Minnesota Statutes, section 56.6116J.436.

56.756.8Subd. 4.Greater Minnesota Business Development Public Infrastructure Grants15,000,000

56.9For grants under Minnesota Statutes, section 56.10116J.431.

56.1156.12Subd. 5.Innovative Business Development Public Infrastructure Grants 5,000,000

56.13For grants under Minnesota Statutes, section 56.14116J.435.

56.15Subd. 6.Redevelopment Grant Program4,328,000

56.16(a) From the general fund for purposes of 56.17the redevelopment account under Minnesota 56.18Statutes, sections 116J.571 to 116J.575.56.19(b) Of this appropriation, $3,500,000 is for a 56.20grant to the city of Albert Lea for predesign, 56.21design, site work, and construction, including 56.22the relocation of Front Street, for Phase I of 56.23the Blazing Star Landing project to redevelop 56.24the former Farmland Foods property along 56.25Albert Lea Lake. This appropriation is 56.26not available until the commissioner of 56.27management and budget determines that an 56.28equal amount is committed from nonstate 56.29sources.

56.30Subd. 7.Bemidji - Regional Dental Facility6,000,000

56.31For a grant to the city of Bemidji to acquire 56.32land for and to predesign, design, construct, 56.33renovate, furnish, and equip a regional dental 56.34facility in Bemidji, subject to Minnesota 57.1Statutes, section 16A.695. This appropriation 57.2is not available until the commissioner of 57.3management and budget has determined that 57.4at least $3,000,000 has been committed to 57.5the project from nonstate sources. The value 57.6of the land purchased or acquired by the city 57.7after January 1, 2016, for this facility shall 57.8count toward the nonstate match.

57.9Subd. 8.Duluth - Lake Superior Zoo1,909,000

57.10For a grant to the city of Duluth to design, 57.11construct, furnish, and equip an outdoor 57.12amphitheater at the Lake Superior Zoo. 57.13This appropriation is not available until the 57.14commissioner determines that at least an 57.15equal amount is committed to the project 57.16from nonstate sources.

57.17Subd. 9.Hastings - Riverfront Renaissance1,500,000

57.18For a grant to the city of Hastings for 57.19the design, engineering, constructing, 57.20and equipping of improvements to 57.21the city's sewer, electrical, utility, and 57.22street infrastructure; for renovations and 57.23improvements to Oliver's Grove Park; and 57.24screening of an electrical substation. These 57.25projects are part of the rehabilitation of 57.26Hastings' historic downtown and Levee 57.27Park along the Mississippi River.  This 57.28appropriation is not available until the 57.29commissioner of management and budget 57.30determines that an equal amount is committed 57.31from nonstate sources. Expenditures made 57.32for Phases 1 and 2 of this project shall count 57.33towards the nonstate match.

57.3457.35Subd. 10.Hennepin County - Cedar Cultural Center3,000,000

58.1From the general fund for a grant to the 58.2Cedar Cultural Center to predesign, design, 58.3construct, furnish, and equip the renovation 58.4of the historic Cedar Cultural Center.

58.558.6Subd. 11.Hennepin County - Hennepin Center for the Arts6,000,000

58.7For a grant to Hennepin County for 58.8improvements and betterments of a capital 58.9nature to renovate the historic Hennepin 58.10Center for the Arts, subject to Minnesota 58.11Statutes, section 16A.695. Notwithstanding 58.12Minnesota Statutes, section 16A.86, 58.13subdivision 4, this appropriation is available 58.14after the commissioner of management and 58.15budget determines that $3,000,000 has been 58.16committed to complete the project from 58.17nonstate sources.

58.1858.19Subd. 12.Hermantown - Arrowhead Regional Health and Wellness Center8,000,000

58.20For a grant to the city of Hermantown 58.21to prepare the middle school site on the 58.22Hermantown School District campus, 58.23including demolition of a portion of the 58.24middle school, and to design, construct a 58.25new addition to the middle school building 58.26and renovate the remaining existing building, 58.27furnish, and equip the facility as the 58.28Arrowhead Regional Health and Wellness 58.29Center. The city may enter into lease or 58.30management agreements under Minnesota 58.31Statutes, section 16A.695, for operation of 58.32the center. This appropriation is not available 58.33until at least an equal amount is committed 58.34to the project from nonstate sources.

58.3558.36Subd. 13.Jackson - Memorial Park Redevelopment Phase I282,000

59.1For a grant to the city of Jackson to complete 59.2Phase I of the redevelopment of Memorial 59.3Park, including trails, landscaping, a 59.4canoe launch, and other amenities. This 59.5appropriation is not available until the 59.6commissioner of management and budget 59.7determines that at least an equal amount 59.8is committed to the project from nonstate 59.9sources. This appropriation does not require 59.10a nonstate match.

59.1159.12Subd. 14.Litchfield - Power Generation Improvements5,000,000

59.13For a grant to the city of Litchfield to 59.14design and construct electrical generation 59.15improvements in the city of Litchfield 59.16to expand the current standby capacity, 59.17including replacement of two old generators. 59.18This appropriation is not available until the 59.19commissioner of management and budget 59.20determines that at least an equal amount 59.21is committed to the project from nonstate 59.22sources.

59.23Subd. 15.Madelia - Public Infrastructure98,000

59.24For a grant to the city of Madelia for repair 59.25and replacement of a capital nature of public 59.26infrastructure damaged by a fire in Madelia 59.27in February 2016. This appropriation does 59.28not require a nonstate match.

59.29Subd. 16.Medford - Municipal Complex2,940,000

59.30For a grant to the city of Medford to 59.31predesign, design, construct, furnish, and 59.32equip a municipal complex that includes an 59.33emergency operations center/storm shelter or 59.34safe area for use during a public emergency, 59.35public meeting and community room, fire 60.1department offices and facilities, and city 60.2hall offices. Money spent by the city for this 60.3project before the effective date of this section 60.4is the nonstate contribution to the project and 60.5no further nonstate contribution is required.

60.6Subd. 17.Minneapolis - Arts Incubator900,000

60.7From the general fund for a grant to the city 60.8of Minneapolis for planning and predesign of 60.9an arts incubator and manufacturing center 60.10consisting of artist studios, maker spaces, and 60.11small arts commercial enterprises, subject to 60.12Minnesota Statutes, section 16A.695. The 60.13project shall be located in North Minneapolis.

60.14Subd. 18.Minneapolis - Northern Metals4,100,000

60.15From the general fund for a grant to Northern 60.16Metals, Inc., for costs of relocation due to 60.17the closure of St. Anthony Falls Lock on 60.18the Mississippi River. This appropriation 60.19does not require a nonstate match. This 60.20appropriation is not available until the 60.21commissioner of employment and economic 60.22development determines that Northern Metals 60.23has met and is current on all permitting 60.24requirements and is vacating the entirety of 60.25its current premises in Minneapolis.

60.26Subd. 19.Minneapolis - Norway House5,000,000

60.27From the general fund for a grant to 60.28the Norway House to acquire land and 60.29predesign, design, construct, furnish, and 60.30equip a conference and event center at 913 60.31East Franklin Avenue and adjacent property 60.32in Minneapolis to celebrate the culture of 60.33Norway and American Norwegians. This 60.34appropriation is not available until at least 61.1an equal amount is committed from nonstate 61.2sources. Land purchased for this expansion 61.3project shall count toward the nonstate match.

61.461.5Subd. 20.Minneapolis - Pioneers and Soldiers Cemetery Restoration1,029,000

61.6For a grant to the city of Minneapolis to 61.7restore the historic steel and limestone pillar 61.8fence along Cedar Avenue and Lake Street, 61.9install a new steel fence and pillars along 21st 61.10Avenue South, and install a waterproofing 61.11system for preservation of the fence and 61.12pillars, at the Pioneer and Soldiers Cemetery. 61.13This appropriation is available after the 61.14commissioner of management and budget 61.15determines that $394,000 is committed from 61.16nonstate sources.

61.17Subd. 21.Moose Lake - Riverside Center600,000

61.18For a grant to the city of Moose Lake to 61.19design, construct, and equip an addition of 61.205,000 square feet to include public restrooms, 61.21a concessions area, changing rooms, meeting 61.22space, accessibility improvements for 61.23Americans with Disabilities Act (ADA) 61.24compliance, and other improvements of 61.25a capital nature to the Riverside Center. 61.26This appropriation is not available until 61.27the commissioner of management and 61.28budget determines that an equal amount is 61.29committed from nonstate sources.

61.30Subd. 22.Parkers Prairie - Community Pool250,000

61.31For a grant to the city of Parkers Prairie 61.32to renovate the city swimming pool, 61.33including accessibility improvements. 61.34This appropriation is not available until 61.35the commissioner of management and 62.1budget determines that an equal amount is 62.2committed from nonstate sources.

62.3Subd. 23.Plymouth - Ice Center Renovation2,203,000

62.4For a grant to the city of Plymouth to 62.5predesign, design, construct, furnish, and 62.6equip the renovation of the Plymouth Ice 62.7Center, and to complete related work for the 62.8state-mandated transition of R-22 refrigerant 62.9to an ammonia-based system. The project 62.10also includes resizing an existing ice sheet for 62.11energy efficiencies, roof repairs, and parking 62.12lot enhancements. This appropriation is 62.13not available until the commissioner of 62.14management and budget determines that at 62.15least $2,119,000 is committed to the project 62.16from nonstate sources.

62.1762.18Subd. 24.Polk County - North Country Food Bank in Crookston3,000,000

62.19For a grant to Polk County to predesign, 62.20design, construct, renovate, furnish, and 62.21equip a regional charitable food warehouse, 62.22distribution, and office facility in the city of 62.23Crookston, subject to Minnesota Statutes, 62.24section 16A.695. This appropriation is 62.25not available until the commissioner of 62.26management and budget determines that an 62.27equal amount has been committed to the 62.28project from nonstate sources. The value of 62.29the land purchased or acquired by the county 62.30after January 1, 2013, for this facility shall 62.31count toward the nonstate match.

62.32Subd. 25.Red Wing - River Town Renaissance4,480,000

62.33For a grant to the city of Red Wing to 62.34complete removal and replacement of 62.35approximately 250 lineal feet of the harbor 63.1retaining wall; to design, construct, furnish, 63.2and equip the renovation of the historic 63.3T.B. Sheldon Performing Arts Theater; and 63.4to design and construct transient riverboat 63.5docking facilities, levee wall extension, and 63.6levee promenade improvements at Levee 63.7Park. This appropriation is not available 63.8until the commissioner of management and 63.9budget determines that an amount sufficient 63.10to complete the project has been committed 63.11from nonstate sources.

63.1263.13Subd. 26.Roseau County - Transportation Facility3,900,000

63.14For a grant to Roseau County to construct, 63.15furnish, and equip a multipurpose 63.16transportation facility adjacent to an existing 63.17transportation facility in Roseau. This 63.18appropriation is not available until at least 63.19an equal amount is committed from nonstate 63.20sources.

63.21Subd. 27.St. Cloud - Friedrich Regional Park1,505,000

63.22For a grant to the city of St. Cloud to 63.23acquire land for and to predesign and 63.24design site improvements including trails, 63.25picnic and parking areas, restrooms, and 63.26other public facilities and amenities for the 63.27development of Friedrich Regional Park. 63.28This appropriation is available after the 63.29commissioner of management and budget 63.30determines that $300,000 is committed from 63.31nonstate sources.

63.3263.3363.34Subd. 28.St. Louis County - Arrowhead Economic Development Center and Mental Health Facility12,975,000

63.35For a grant to St. Louis County to design, 63.36construct, furnish, and equip a new building 64.1at 701 4th Street N in Virginia, to house a 64.2jobs and economic development center and a 64.3mental health facility. St. Louis County may 64.4enter into one or more lease or management 64.5agreements for the facility, subject to 64.6Minnesota Statutes, section 16A.695. This 64.7appropriation is not available until the 64.8commissioner has determined that an amount 64.9sufficient to complete the project has been 64.10committed from nonstate sources.

64.1164.12Subd. 29.St. Paul - Bruce Vento Nature Sanctuary3,000,000

64.13For a grant to the city of St. Paul to predesign, 64.14design, furnish, and equip a center in the 64.15Bruce Vento Nature Sanctuary in St. Paul 64.16that will be used for uses and programs that 64.17the city determines meet regional and city 64.18park purpose requirements. The city may 64.19enter into a lease or management agreement 64.20under Minnesota Statutes, section 16A.695, 64.21to operate the programs in the center. This 64.22appropriation is not available until the 64.23commissioner of management and budget 64.24determines that at least an equal amount 64.25is committed to the project from nonstate 64.26sources.

64.27Subd. 30.St. Paul - East Side Freedom Library500,000

64.28From the general fund for a grant to the city 64.29of St. Paul to complete the design and to 64.30renovate, restore, construct, furnish, and 64.31equip capital improvements to the Carnegie 64.32Library formerly known as the Arlington 64.33Hills Public Library. This appropriation does 64.34not require a nonstate match.

64.3564.36Subd. 31.St. Paul - Science Museum of Minnesota Building Preservation13,000,000

65.1For a grant to the city of St. Paul for 65.2predesign, design, and construction work 65.3to replace water-damaged elements of the 65.4Science Museum of Minnesota's exterior 65.5envelope and some resultant interior damage 65.6caused by latent design and construction 65.7defects, subject to Minnesota Statutes, section 65.816A.695. This appropriation is not available 65.9until the commissioner of management and 65.10budget determines that an equal amount has 65.11been committed to the project from nonstate 65.12sources. Capital costs paid by the Science 65.13Museum of Minnesota since January 1, 2014, 65.14relating to the water intrusion damage, shall 65.15count towards the match requirement.

65.1665.17Subd. 32.St. Paul Port Authority - Minnesota Museum of American Art6,000,000

65.18From the general fund for a grant to the St. 65.19Paul Port Authority to design, construct, 65.20furnish, and equip improvements for the 65.21Minnesota Museum of American Art for 65.22the historic Pioneer Endicott Building 65.23renovation. The project shall include 65.24galleries and education facilities, art storage, 65.25access to the St. Paul skyway, museum 65.26loading, and other capital improvements 65.27required for a museum and related education 65.28facility. The appropriation shall be available 65.29upon a determination by the commissioner 65.30that at least $8,500,000 of nonstate funds 65.31have been raised for the project and there 65.32are sufficient funds to complete the overall 65.33project.

65.3465.35Subd. 33.St. Paul - Roy Wilkins Auditorium; RiverCentre Parking1,900,000

66.1For a grant to the city of St. Paul to complete 66.2predesign for and to design a new Roy 66.3Wilkins Center to replace the existing Roy 66.4Wilkins Auditorium and RiverCentre parking 66.5ramp. This appropriation does not require a 66.6nonstate contribution.

66.766.8Subd. 34.St. Peter - Minnesota Square Park Pavilion855,000

66.9For a grant to the city of St. Peter to demolish 66.10the existing pavilion and to predesign, 66.11design, construct, furnish, and equip a new 66.12park pavilion in Minnesota Square Park, and  66.13to design and construct a veterans memorial 66.14to be located at the corner of Highway 66.15169 and West College Avenue in St. Peter. 66.16This appropriation is not available until the 66.17commissioner of management and budget 66.18determines that at least an equal amount 66.19is committed to the project from nonstate 66.20sources.

66.2166.22Subd. 35.Silver Bay - Black Beach Municipal Campground1,708,000

66.23For a grant to the city of Silver Bay to 66.24predesign, design, construct, furnish, and 66.25equip a campground adjacent to the Black 66.26Beach recreational beach in Silver Bay, 66.27including: camping sites; electrical, water, 66.28and sewer infrastructure; a playground; 66.29a pavilion; lavatory vaults; a shower 66.30and lavatory building; and a main office 66.31building. This appropriation may also be 66.32used to design, construct, furnish, and equip 66.33a walking trail from the campground to 66.34the Black Beach recreational site. This 66.35appropriation is not available until $548,000 66.36is committed from nonstate sources. The 67.1nonstate contribution may be in kind. In-kind 67.2contributions may include the value of site 67.3preparation.

67.4Subd. 36.Thief River Falls - Wellness Center7,000,000

67.5From the general fund in fiscal year 2017 67.6for a grant to the city of Thief River Falls 67.7to predesign, design, construct, furnish, and 67.8equip a wellness center. This appropriation 67.9is available after the commissioner of 67.10management and budget determines that 67.11$18,000,000 is committed from nonstate 67.12sources.

67.1367.14Subd. 37.Virginia - Miner's Memorial Building Renovation Phase I4,000,000

67.15For a grant to the city of Virginia for Phase 67.16I of the renovation and reconstruction of the 67.17Miner's Memorial Building in Virginia. This 67.18appropriation is not available until at least 67.19an equal amount is committed from nonstate 67.20sources.

67.21Subd. 38.Wabasha - Seawall1,000,000

67.22For a grant to the city of Wabasha for 67.23development of a riverboat landing and dock.

67.24Sec. 25. PUBLIC FACILITIES AUTHORITY

67.25Subdivision 1.Total Appropriation$197,831,000

67.26To the Public Facilities Authority for the 67.27purposes specified in this section.

67.28Subd. 2.State Match for Federal Grants25,000,000

67.29To match federal grants for the clean water 67.30revolving fund under Minnesota Statutes, 67.31section 446A.07, and the drinking water 67.32revolving fund under Minnesota Statutes, 68.1section 446A.081. This appropriation must 68.2be used for qualified capital projects.

68.368.4Subd. 3.Water Infrastructure Funding Program80,000,000

68.5(a) For grants to eligible municipalities under 68.6the water infrastructure funding program 68.7under Minnesota Statutes, section 446A.072.68.8(b) $55,000,000 is for wastewater projects 68.9listed on the Pollution Control Agency's 68.10project priority list in the fundable range 68.11under the clean water revolving fund 68.12program.68.13(c) $25,000,000 is for drinking water projects 68.14listed on the Department of Health's project 68.15priority list in the fundable range under the 68.16drinking water revolving fund program.68.17(d) After all eligible projects under 68.18paragraph (b) or (c) have been funded, the 68.19Public Facilities Authority may transfer 68.20any remaining, uncommitted money to 68.21eligible projects under a program defined in 68.22paragraph (b) or (c) based on that program's 68.23project priority list.

68.2468.25Subd. 4.Point Source Implementation Grants Program62,000,000

68.26For grants to eligible municipalities under the 68.27point source implementation grants program 68.28under Minnesota Statutes, section 446A.073. 68.29This appropriation must be used for qualified 68.30capital projects.

68.3168.32Subd. 5.Big Lake Area Sanitary District - Sewer System and Force Main1,200,000

68.33For a grant to the Big Lake Area Sanitary 68.34District to construct a pressure sewer system 68.35and force main to convey sewage to the 69.1Western Lake Superior Sanitary District 69.2connection in the city of Cloquet. This 69.3appropriation is not available until the 69.4commissioner of management and budget 69.5determines that an equal amount is committed 69.6from nonstate sources. This appropriation 69.7is in addition to the appropriation in Laws 69.82014, chapter 294, article 1, section 22, 69.9subdivision 4.

69.10Subd. 6.Brainerd - Airport Water and Sewer6,000,000

69.11For a grant to the city of Brainerd to 69.12design, construct, and equip publicly owned 69.13infrastructure to increase the water supply 69.14and expand sewer and water service to the 69.15Brainerd Lakes Regional Airport.

69.1669.17Subd. 7.Clear Lake and Clearwater - Wastewater Treatment Facility1,400,000

69.18For a grant to the Clear Lake-Clearwater 69.19Sewer Authority for predesign, design, 69.20and construction of wastewater facility 69.21improvements. This appropriation is 69.22not available until the commissioner of 69.23management and budget determines that at 69.24least $200,000 is committed to the project 69.25from nonstate sources and the authority has 69.26applied for at least two grants to offset the 69.27cost. Any money received by the authority 69.28from grants will be returned to the general 69.29fund.

69.3069.31Subd. 8.Dennison - Sewage Treatment System Improvements726,000

69.32For a grant to the city of Dennison 69.33to predesign, design, and construct a 69.34new lift station and make sewage pond 70.1improvements. This appropriation does not 70.2require a nonstate contribution.

70.370.4Subd. 9.East Grand Forks - Wastewater Infrastructure5,275,000

70.5For a grant to East Grand Forks to design 70.6and construct wastewater infrastructure 70.7improvements interconnecting the 70.8wastewater system of East Grand Forks to 70.9the wastewater treatment system in Grand 70.10Forks, North Dakota. This appropriation 70.11may not be used for improvements outside 70.12the state. This appropriation is in addition 70.13to grants under Minnesota Statutes, section 70.14446A.072. This appropriation is not available 70.15until the commissioner of management and 70.16budget determines that an equal amount is 70.17committed from nonstate sources.

70.1870.19Subd. 10.Koochiching County - Voyageurs National Park Clean Water Project6,240,000

70.20(a) For a grant to Koochiching County to 70.21acquire land or interests in land, and to design, 70.22engineer, construct, and equip sanitary 70.23sewage systems and facilities to implement a 70.24portion or portions of the Voyageurs National 70.25Park clean water project comprehensive 70.26plan. This appropriation is available after the 70.27commissioner of management and budget 70.28determines that $4,500,000 is committed 70.29from nonstate sources.70.30(b) This appropriation is in addition to 70.31the appropriation in Laws 2014, chapter 70.32294, article 1, section 22, subdivision 7. 70.33Notwithstanding the match requirement in 70.34Laws 2014, chapter 294, article 1, section 70.3522, subdivision 7, the nonstate match 70.36required for this appropriation and the 2014 71.1appropriation for a grant to Koochiching 71.2County is 25 percent of the state grant 71.3amounts. Any money remaining from this 71.4appropriation after completion of the projects 71.5in paragraph (a) is available for grants to 71.6Koochiching County or St. Louis County to 71.7be used for other projects described in the 71.8comprehensive plan.

71.971.10Subd. 11.Lilydale - Highway 13 Storm Water Conveyance140,000

71.11From the general fund for a grant to the city 71.12of Lilydale to design, acquire, construct, and 71.13install a storm water sewer and drop structure 71.14along Trunk Highway 13 in Lilydale that 71.15will be large enough to effectively collect 71.16water from springs and storm water runoff 71.17from above the road and safely convey the 71.18water to below the bluff. The city must 71.19coordinate this project with the Department 71.20of Transportation's Trunk Highway 13 71.21project. The appropriation and project also 71.22include capital repairs and improvements 71.23to existing drainage structures along the 71.24Big Rivers Regional Trail at the base of the 71.25bluff. This appropriation does not require a 71.26nonstate contribution.

71.2771.28Subd. 12.Oronoco - Wastewater Collection and Treatment Facilities500,000

71.29From the general fund for a grant to the 71.30city of Oronoco to commission a study to 71.31evaluate options for solving the wastewater 71.32infrastructure needs for the region including 71.33the city of Oronoco, the city of Pine Island, 71.34or the city of Rochester. This appropriation 71.35does not require a nonstate match.

72.172.2Subd. 13.St. James - Storm Sewer Line Replacement1,250,000

72.3For a grant to the city of St. James to 72.4replace a storm sewer line in St. James. This 72.5appropriation is not available until at least 72.6an equal amount is committed from nonstate 72.7sources.

72.872.9Subd. 14.Western Lake Superior Sanitary District - Combined Heat and Power System8,100,000

72.10For a grant to the Sanitary Board of the 72.11Western Lake Superior Sanitary District 72.12for Phase I and II of a project to design, 72.13construct, furnish, and equip a combined heat 72.14and power system to capture process heat 72.15and generate electricity for use at the Western 72.16Lake Superior Sanitary District wastewater 72.17treatment facilities. This appropriation is not 72.18available until the commissioner determines 72.19that at least an equal amount is committed to 72.20the project from state and nonstate sources. 72.21Loans obtained from the Public Facilities 72.22Authority shall count toward the match 72.23requirement.

72.2472.25Sec. 26. MINNESOTA HOUSING FINANCE AGENCY$20,000,000

72.26For transfer to the housing development 72.27fund to finance the costs of rehabilitation to 72.28preserve public housing under Minnesota 72.29Statutes, section 462A.202, subdivision 72.303a. For purposes of this section, "public 72.31housing" means housing for low-income 72.32persons and households financed by the 72.33federal government and owned and operated 72.34by the public housing authorities and 72.35agencies formed by cities and counties. 73.1Public housing authorities receiving a public 73.2housing assessment composite score of 80 73.3or above or an equivalent designation are 73.4eligible to receive funding. Priority must be 73.5given to proposals that maximize federal or 73.6local resources to finance the capital costs. 73.7The priority in Minnesota Statutes, section 73.8462A.202, subdivision 3a, for projects to 73.9increase the supply of affordable housing and 73.10the restrictions of Minnesota Statutes, section 73.11462A.202, subdivision 7, do not apply to this 73.12appropriation.

73.1373.14Sec. 27. MINNESOTA HISTORICAL SOCIETY

73.15Subdivision 1.Total Appropriation$38,000,000

73.16To the Minnesota Historical Society for the 73.17purposes specified in this section.

73.18Subd. 2.Historic Sites Asset Preservation2,500,000

73.19For capital improvements and betterments 73.20at state historic sites, buildings, landscaping 73.21at historic buildings, exhibits, markers, and 73.22monuments, to be spent in accordance with 73.23Minnesota Statutes, section 16B.307. The 73.24society shall determine project priorities as 73.25appropriate based on need.

73.26Subd. 3.Historic Fort Snelling34,000,000

73.27(a) To design, renovate, construct, furnish, 73.28and equip facilities to support visitor services 73.29and history programs at Historic Fort 73.30Snelling.73.31(b) This appropriation includes up to 73.32$4,000,000 to design facilities to support 73.33visitor services and history programs at 73.34Historic Fort Snelling. Money for design is 74.1available the day following final enactment 74.2and is not contingent on demonstrating a 74.3nonstate contribution to the project. Upon 74.4completion of the design, the unspent portion 74.5of the amount specified in this paragraph is 74.6available for the purposes of paragraph (c).74.7(c) The balance of this appropriation is to 74.8demolish the existing visitor center, renovate, 74.9construct, furnish, and equip facilities, 74.10including landscaping and wayfinding, at 74.11Historic Fort Snelling. This appropriation 74.12is not available until the commissioner of 74.13management and budget determines that an 74.14amount sufficient to complete the project has 74.15been committed from nonstate sources.

74.16Subd. 4.County and Local Preservation Grants1,500,000

74.17To be allocated to county and local 74.18jurisdictions as matching money for historic 74.19preservation projects of a capital nature, 74.20as provided in Minnesota Statutes, section 74.21138.0525.

74.2274.2374.24Sec. 28. OFFICE OF THE LEGISLATIVE AUDITOR - ASSET PRESERVATION FUNDING REPORT$50,000

74.25From the general fund to the Office of the 74.26Legislative Auditor for the report on options 74.27for funding asset preservation, as described 74.28in article 2, section 19.

74.29Sec. 29. MINNESOTA SUPREME COURT$6,000,000

74.30From the general fund to the chief justice of 74.31the Supreme Court for a competitive grant 74.32program established by the chief justice for 74.33the distribution of grants to government 74.34entities for capital improvements to make 75.1courthouses or other facilities where court 75.2proceedings are held safe and secure. Grant 75.3recipients must provide a 50 percent nonstate 75.4match.

75.5Sec. 30. BOND SALE EXPENSES

75.6Subdivision 1.Total Appropriation$1,640,000

75.7To the commissioner of management and 75.8budget for the purposes specified in this 75.9section.

75.10Subd. 2.Bond Proceeds Fund1,595,000

75.11From the bond proceeds fund for bond sale 75.12expenses under Minnesota Statutes, section 75.1316A.641, subdivision 8.

75.14Subd. 3.Trunk Highway Fund45,000

75.15From the bond proceeds account in the 75.16trunk highway fund for bond sale expenses 75.17under Minnesota Statutes, sections 16A.641, 75.18subdivision 8, and 167.50, subdivision 4.75.19    Sec. 31. Laws 2015, First Special Session chapter 5, article 1, section 19, is amended 75.20to read:75.21    Sec. 19. BOND SALE SCHEDULE.75.22    The commissioner of management and budget shall schedule the sale of state 75.23general obligation bonds so that, during the biennium ending June 30, 2017, no more 75.24than $1,267,459,000$1,250,584,000 will need to be transferred from the general fund to 75.25the state bond fund to pay principal and interest due and to become due on outstanding 75.26state general obligation bonds. During the biennium, before each sale of state general 75.27obligation bonds, the commissioner of management and budget shall calculate the amount 75.28of debt service payments needed on bonds previously issued and shall estimate the amount 75.29of debt service payments that will be needed on the bonds scheduled to be sold. The 75.30commissioner shall adjust the amount of bonds scheduled to be sold so as to remain within 75.31the limit set by this section. The amount needed to make the debt service payments is 75.32appropriated from the general fund as provided in Minnesota Statutes, section 
         16A.641.76.1    Sec. 32. BOND SALE AUTHORIZATION.76.2    Subdivision 1.Bond proceeds fund.To provide the money appropriated in this act 76.3from the bond proceeds fund, the commissioner of management and budget shall sell and 76.4issue bonds of the state in an amount up to $1,406,551,000 in the manner, upon the terms, 76.5and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 76.6by the Minnesota Constitution, article XI, sections 4 to 7.76.7    Subd. 2.Transportation fund.To provide the money appropriated in this act from 76.8the state transportation fund, the commissioner of management and budget shall sell and 76.9issue bonds of the state in an amount up to $180,400,000 in the manner, upon the terms, 76.10and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 76.11by the Minnesota Constitution, article XI, sections 4 to 7.76.12    Subd. 3.Trunk highway fund.To provide the money appropriated in this act from 76.13the bond proceeds account in the trunk highway fund, the commissioner of management 76.14and budget shall sell and issue bonds of the state in an amount up to $43,045,000 in the 76.15manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 76.16167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times 76.17and in the amounts requested by the commissioner of transportation. The proceeds of the 76.18bonds, except accrued interest and any premium received from the sale of the bonds, must 76.19be deposited in the bond proceeds account in the trunk highway fund.76.20    Subd. 4.Maximum effort school loan fund.To provide the money appropriated in 76.21this act from the maximum effort school loan fund, the commissioner of management and 76.22budget shall sell and issue bonds of the state in an amount up to $9,735,000 in the manner, 76.23upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 76.2416A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.76.25    Sec. 33. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.76.26(a) The bond sale authorization in Laws 1990, chapter 610, article 1, section 30, 76.27subdivision 1, as amended, is reduced by $3,129.76.28(b) The bond sale authorization in Laws 1994, chapter 643, section 31, subdivision 76.291, as amended, is reduced by $24,480.76.30(c) The bond sale authorization in Laws 1997, Second Special Session chapter 2, 76.31section 12, as amended, is reduced by $96,992.76.32(d) The bond sale authorization in Laws 1999, chapter 240, article 1, section 13, 76.33subdivision 1, as amended, is reduced by $212,472.76.34(e) The bond sale authorization in Laws 2000, chapter 492, article 1, section 26, 76.35subdivision 1, as amended, is reduced by $7,933,538.77.1(f) The bond sale authorization in Laws 2002, chapter 393, section 30, subdivision 77.21, as amended, is reduced by $188,471.77.3(g) The bond sale authorization in Laws 2002, First Special Session chapter 1, 77.4section 9, subdivision 1, s reduced by $217,959.77.5(h) The bond sale authorization in Laws 2003, First Special Session chapter 19, 77.6article 3, section 2, is reduced by $201,530.77.7(i) The bond sale authorization in Laws 2003, First Special Session chapter 19, 77.8article 4, section 4, is reduced by $326,534.77.9(j) The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 77.10subdivision 1, as amended, is reduced by $3,366,628.77.11    Sec. 34. EFFECTIVE DATE.77.12    Except as otherwise provided, this article is effective the day following final 77.13enactment.77.14ARTICLE 277.15MISCELLANEOUS77.16    Section 1. Minnesota Statutes 2015 Supplement, section 16A.967, is amended to read:77.1716A.967 LEWIS AND CLARK APPROPRIATION BONDS.77.18    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this 77.19section.77.20(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument 77.21of the state payable during a biennium from one or more of the following sources:77.22(1) money appropriated by law from the general fund in any biennium for debt 77.23service due with respect to obligations described in subdivision 2, paragraph (c) 77.24subdivisions 2a and 2b;77.25(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c) 77.26subdivisions 2a and 2b;77.27(3) payments received for that purpose under agreements and ancillary arrangements 77.28described in subdivision 2, paragraph (e) (d); and77.29(4) investment earnings on amounts in clauses (1) to (3).77.30(c) "Debt service" means the amount payable in any biennium of principal, premium, 77.31if any, and interest on appropriation bonds.77.32    Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the limitations 77.33of this subdivision, the commissioner may sell and issue appropriation bonds of the state 78.1under this section for public purposes as provided by law, including, in particular, the 78.2financing of the land acquisition, design, engineering, and construction of facilities and 78.3infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water 78.4System project, including completion of the pipeline to Magnolia, extension of the project 78.5to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, 78.6design, and easement acquisition for the final phase of the project to Worthington. No 78.7bonds shall be sold until the commissioner determines that a nonstate match of at least 78.8$9,000,000 is committed to this project phase. Grant agreements entered into under this 78.9section must provide for reimbursement to the state from any federal money provided for 78.10the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.78.11(b) The appropriation bonds may be issued and sold only after the commissioner 78.12determines that the construction and administration for work done on the project will 78.13comply with (1) all federal requirements and regulations associated with the Lewis and 78.14Clark Rural Water System Act of 2000, and (2) the cooperative agreement between the 78.15United States Department of the Interior and the Lewis and Clark Regional Water System, 78.16Inc. Proceeds of the appropriation bonds must be credited to a special appropriation Lewis 78.17and Clark bond proceeds fund in the state treasury. All income from investment of the 78.18bond proceeds, as estimated by the commissioner, is appropriated to the commissioner for 78.19the payment of principal and interest on the appropriation bonds.78.20(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of 78.21the commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 78.22net of costs of issuance, for the purposes as provided under paragraph (a), and pay debt 78.23service including capitalized interest, costs of issuance, costs of credit enhancement, or 78.24make payments under other agreements entered into under paragraph (e).78.25(d) (c) Appropriation bonds may be issued in one or more issues or series on the 78.26terms and conditions the commissioner determines to be in the best interests of the 78.27state, but the term on any series of appropriation bonds may not exceed 25 years. The 78.28appropriation bonds of each issue and series thereof shall be dated and bear interest, 78.29and may be includable in or excludable from the gross income of the owners for federal 78.30income tax purposes.78.31(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at 78.32any time thereafter, so long as the appropriation bonds are outstanding, the commissioner 78.33may enter into agreements and ancillary arrangements relating to the appropriation bonds, 78.34including but not limited to trust indentures, grant agreements, lease or use agreements, 78.35operating agreements, management agreements, liquidity facilities, remarketing or 78.36dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 79.1reimbursement agreements, indexing agreements, or interest exchange agreements. Any 79.2payments made or received according to the agreement or ancillary arrangement shall be 79.3made from or deposited as provided in the agreement or ancillary arrangement. The 79.4determination of the commissioner included in an interest exchange agreement that the 79.5agreement relates to an appropriation bond shall be conclusive.79.6(f) (e) The commissioner may enter into written agreements or contracts relating 79.7to the continuing disclosure of information necessary to comply with or facilitate the 79.8issuance of appropriation bonds in accordance with federal securities laws, rules, and 79.9regulations, including Securities and Exchange Commission rules and regulations in Code 79.10of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form 79.11of covenants with purchasers and holders of appropriation bonds set forth in the order or 79.12resolution authorizing the issuance of the appropriation bonds, or a separate document 79.13authorized by the order or resolution.79.14(g) (f) The appropriation bonds are not subject to chapter 16C.79.15    Subd. 2a.Project authorization.Appropriation bonds may be sold and issued in 79.16amounts that, in the opinion of the commissioner, are necessary to provide sufficient 79.17money to the Public Facilities Authority under subdivision 7, paragraph (a), not to exceed 79.18$19,000,000 net of costs of issuance, for the purposes as provided under this subdivision, 79.19and pay debt service including capitalized interest, costs of issuance, costs of credit 79.20enhancement, or make payments under other agreements entered into under subdivision 2, 79.21paragraph (d). The bonds authorized by this subdivision are for the purposes of financing 79.22the land acquisition, design, engineering, and construction of facilities and infrastructure 79.23necessary to complete Phase 2 of the Lewis and Clark Regional Water System project, 79.24including completion of the pipeline to Magnolia; extension of the project to the 79.25Lincoln-Pipestone Rural Water System connection near Adrian; and engineering, design, 79.26and easement acquisition for the final phase of the project to Worthington. No bonds shall 79.27be sold under this subdivision until the commissioner determines that a nonstate match 79.28of at least $9,000,000 is committed to this project phase.79.29    Subd. 2b.Additional project authorization.Appropriation bonds may be sold 79.30and issued in amounts that, in the opinion of the commissioner, are necessary to provide 79.31sufficient money to the Public Facilities Authority under subdivision 7, paragraph (b), 79.32not to exceed $11,500,000 net of costs of issuance, for the purposes as provided under 79.33this subdivision, and pay debt service including capitalized interest, costs of issuance, 79.34costs of credit enhancement, or make payments under other agreements entered into 79.35under subdivision 2, paragraph (d). The bonds authorized by this subdivision are for 79.36the purposes of financing the land acquisition, design, engineering, and construction of 80.1facilities and infrastructure necessary to complete Phase 3 of the Lewis and Clark Regional 80.2Water System project, including extension of the project from the Lincoln-Pipestone 80.3Rural Water System connection near Adrian to Worthington, construction of a reservoir 80.4in Nobles County and a meter building in Worthington, and acquisition and installation 80.5of a supervisory control and data acquisition (SCADA) system. No bonds shall be sold 80.6under this subdivision until the commissioner determines that a nonstate match of at least 80.7$9,000,000 is committed to the final phase of the project.80.8    Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form 80.9of bonds, notes, or other similar instruments, and in the manner provided in section 80.1016A.672
         . In the event that any provision of section 
         16A.672 conflicts with this section, 80.11this section shall control.80.12(b) Every appropriation bond shall include a conspicuous statement of the limitation 80.13established in subdivision 6.80.14(c) Appropriation bonds may be sold at either public or private sale upon such terms 80.15as the commissioner shall determine are not inconsistent with this section and may be sold 80.16at any price or percentage of par value. Any bid received may be rejected.80.17(d) Appropriation bonds must bear interest at a fixed or variable rate.80.18(e) Notwithstanding any other law, appropriation bonds issued under this section 80.19shall be fully negotiable.80.20    Subd. 4. Refunding bonds. The commissioner may issue appropriation bonds 80.21for the purpose of refunding any appropriation bonds then outstanding, including the 80.22payment of any redemption premiums on the bonds, any interest accrued or to accrue to 80.23the redemption date, and costs related to the issuance and sale of the refunding bonds. The 80.24proceeds of any refunding bonds may, in the discretion of the commissioner, be applied 80.25to the purchase or payment at maturity of the appropriation bonds to be refunded, to the 80.26redemption of the outstanding appropriation bonds on any redemption date, or to pay 80.27interest on the refunding bonds and may, pending application, be placed in escrow to be 80.28applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds, 80.29pending such use, may be invested and reinvested in obligations that are authorized 80.30investments under section 
         11A.24. The income earned or realized on the investment may 80.31also be applied to the payment of the appropriation bonds to be refunded or interest or 80.32premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds. 80.33After the terms of the escrow have been fully satisfied, any balance of the proceeds and 80.34any investment income may be returned to the general fund or, if applicable, the special 80.35appropriation Lewis and Clark bond proceeds fund for use in any lawful manner. All 81.1refunding bonds issued under this subdivision must be prepared, executed, delivered, and 81.2secured by appropriations in the same manner as the appropriation bonds to be refunded.81.3    Subd. 5. Appropriation bonds as legal investments. Any of the following entities 81.4may legally invest any sinking funds, money, or other funds belonging to them or under 81.5their control in any appropriation bonds issued under this section:81.6(1) the state, the investment board, public officers, municipal corporations, political 81.7subdivisions, and public bodies;81.8(2) banks and bankers, savings and loan associations, credit unions, trust companies, 81.9savings banks and institutions, investment companies, insurance companies, insurance 81.10associations, and other persons carrying on a banking or insurance business; and81.11(3) personal representatives, guardians, trustees, and other fiduciaries.81.12    Subd. 6. No full faith and credit; state not required to make appropriations. The 81.13appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 81.14powers of the state are not pledged to the payment of the appropriation bonds or to any 81.15payment that the state agrees to make under this section. Appropriation bonds shall not be 81.16obligations paid directly, in whole or in part, from a tax of statewide application on any 81.17class of property, income, transaction, or privilege. Appropriation bonds shall be payable 81.18in each fiscal year only from amounts that the legislature may appropriate for debt service 81.19for any fiscal year, provided that nothing in this section shall be construed to require the 81.20state to appropriate money sufficient to make debt service payments with respect to the 81.21appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall 81.22no longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 81.23legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 81.24of final payment of the principal of and interest on the appropriation bonds.81.25    Subd. 7. Appropriation of proceeds.(a) The proceeds of appropriation bonds 81.26issued under subdivision 2a and interest credited to the special appropriation Lewis and 81.27Clark bond proceeds fund are appropriated as follows:81.28(1) to the commissioner Public Facilities Authority for a grant to the Lewis and 81.29Clark Joint Powers Board for payment of capital expenses for the purposes provided by as 81.30specified in subdivision 2, paragraph (a), 2a; and81.31(2) to the commissioner for debt service on the bonds including capitalized interest, 81.32nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 81.33payments under any agreements entered into under subdivision 2, paragraph (e) (d), each 81.34as permitted by state and federal law, and such proceeds may be granted, loaned, or 81.35otherwise provided for the public purposes provided by subdivision 2, paragraph (a).82.1(b) The proceeds of appropriation bonds issued under subdivision 2b and interest 82.2credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated 82.3as follows:82.4(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 82.5Board for payment of capital expenses as specified in subdivision 2b; and82.6(2) to the commissioner for debt service on the bonds including capitalized interest, 82.7nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 82.8payments under any agreements entered into under subdivision 2, paragraph (d), each as 82.9permitted by state and federal law.82.10    Subd. 8. Appropriation for debt service and other purposes.(a) An amount, up 82.11to $1,351,000 needed to pay principal and interest on appropriation bonds issued under 82.12this section subdivision 2a is appropriated each fiscal year from the general fund to the 82.13commissioner, subject to repeal, unallotment under section 
         16A.152, or cancellation, 82.14otherwise pursuant to subdivision 6, for deposit into the bond payments account established 82.15for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 82.16appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.82.17(b) An amount up to $855,000 needed to pay principal and interest on appropriation 82.18bonds issued under subdivision 2b is appropriated each fiscal year from the general fund to 82.19the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 82.20otherwise pursuant to subdivision 6, for deposit into the bond payments account established 82.21for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 82.22appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.82.23    Subd. 9. Waiver of immunity. The waiver of immunity by the state provided for 82.24by section 
         3.751, subdivision 1, shall be applicable to the appropriation bonds and any 82.25ancillary contracts to which the commissioner is a party.82.26    Sec. 2. [16C.053] ACCOMMODATION FOR HARD-OF-HEARING IN 82.27STATE-FUNDED CAPITAL PROJECTS.82.28    Subdivision 1.Definition.For purposes of this section, "public gathering space" 82.29means a space that is constructed or renovated as part of the project and (1) that 82.30accommodates and is intended to be used for gatherings of 15 or more people; and (2) in 82.31which audible communications are integral to a use of the space.82.32    Subd. 2.Accommodation for hard-of-hearing in state-funded capital projects.82.33No commissioner or agency head may approve a contract for, or grant state funds for, a 82.34capital improvement project to construct or renovate a public gathering space in a building 82.35unless:83.1(1) the project includes equipping the public gathering space, if the public gathering 83.2space has or will have a permanent audio-amplification system, with audio-induction 83.3loops to provide an electromagnetic signal for hearing aids and cochlear implants; and83.4(2) the project includes meeting the American National Standards Institute 83.5Acoustical Performance Criteria, Design Requirements and Guidelines for Schools on 83.6maximum background noise level and reverberation times in the public gathering space. 83.7    Subd. 3.Exemption.A commissioner or agency head may approve a contract for, 83.8or grant state funds for, a capital improvement project to construct or renovate a building 83.9that does not meet a requirement of subdivision 2, when the commissioner or agency 83.10head determines that meeting that requirement is not feasible, is in conflict with other 83.11requirements in law, is in conflict with other project requirements, or that costs outweigh 83.12the benefits. The commissioner must consult with the Commission of Deaf, Deafblind, 83.13and Hard-of-Hearing Minnesotans before making the determination.83.14    Subd. 4.Exemption reports.A commissioner or agency head who determines a 83.15contract is exempt under subdivision 3 must report the exemption to the Commission of 83.16Deaf, Deafblind, and Hard-of-Hearing Minnesotans within three months of making the 83.17determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing 83.18Minnesotans shall submit a report to the chairs and ranking minority members of 83.19the committees in the house of representatives and senate with jurisdiction over state 83.20contracting by January 30 of even-numbered years beginning in 2020 identifying each 83.21exemption reported in the previous two calendar years.83.22EFFECTIVE DATE.This act is effective August 1, 2016, and applies to all projects 83.23funded with an appropriation enacted after August 1, 2016, for which requests for bids 83.24or proposals are issued after January 1, 2018. For projects for which requests for bids or 83.25proposals are issued before January 1, 2018, the commissioners and agency heads are 83.26encouraged to comply with this section.83.27    Sec. 3. Minnesota Statutes 2014, section 85.34, subdivision 1, is amended to read:83.28    Subdivision 1. Upper bluff; lease terms. The commissioner of natural resources 83.29with the approval of the Executive Council may lease for purposes of restoration, 83.30preservation, historical, recreational, educational, and commercial use and development, 83.31that portion of Fort Snelling State Park known as the upper bluff consisting of officer's 83.32row, area J, the polo grounds, the adjacent golf course, and all buildings and improvements 83.33located thereon, all lying within an area bounded by Minneapolis-St. Paul International 83.34Airport, Trunk Highways numbered 5 and 55, and Bloomington Road. The lease or leases 83.35shall be in a form approved by the attorney general and for a term of not to exceed 99 84.1years. The lease or leases may provide for the provision of capital improvements or other 84.2performance by the tenant or tenants in lieu of all or some of the payments of rent that 84.3would otherwise be required. Notwithstanding the continuing ownership of the upper bluff 84.4by the state, any lease of one or more buildings improved with state general obligation 84.5bond proceeds that exceeds 50 years shall be treated as a sale of the buildings for purposes 84.6of section 16A.695, subdivision 3. Any disposition proceeds payable to the commissioner 84.7upon execution of any lease relating to state bond financed buildings at the upper bluff 84.8shall be applied in accordance with the requirements of section 16A.695, subdivision 3, 84.9and used to pay, redeem, or defease state general obligation bonds issued for purposes of 84.10improving those buildings. Any lease revenues paid to the commissioner subsequent to 84.11the payment, redemption, or defeasance of state general obligation bonds shall be used 84.12by the commissioner as further described in this section.84.13    Sec. 4. [115.441] VARIANCE ASSISTANCE FOR MUNICIPALITIES.84.14    Subdivision 1.Reimbursement account.A variance assistance account is 84.15established as an account in the special revenue fund.84.16    Subd. 2.Eligible expenditures.Money in the variance assistance account may be 84.17used to reimburse an eligible municipality for up to 95 percent of the fee charged under 84.18Minnesota Rules, part 7002.0253, for an application for a variance under section 116.07, 84.19subdivision 5.84.20    Subd. 3.Eligible municipality.To be eligible for a reimbursement from the 84.21account established in this section, a municipality must demonstrate need for financial 84.22assistance in one of the following ways:84.23(1) a score of 2.0 or less on the Minnesota Pollution Control Agency's multifactor 84.24index of financial hardship; 84.25(2) a score greater than 2.0 and up to 2.5 on the financial hardship index and a 84.26description of unique extenuating financial circumstances that exist for the municipality 84.27resulting in an inability to afford the variance application fee; or84.28(3) a municipality with a population under 1,000.84.29    Sec. 5. Minnesota Statutes 2014, section 161.14, is amended by adding a subdivision 84.30to read:84.31    Subd. 82.James Metzen Street.Notwithstanding section 10.49, that segment 84.32of marked Trunk Highway 952 located within Dakota County is designated as "James 84.33Metzen Street." Notwithstanding section 161.139, the commissioner shall adopt a suitable 84.34design to mark this highway and erect appropriate signs.85.1EFFECTIVE DATE.This section is effective the day following final enactment.85.2    Sec. 6. Minnesota Statutes 2014, section 174.52, subdivision 2, is amended to read:85.3    Subd. 2. Trunk highway corridor projects Local cost-share assistance  account.85.4A trunk highway corridor projectslocal cost-share assistance account is established in 85.5the local road improvement fund. Money in the account is annually appropriated to the 85.6commissioner of transportation for expenditure as specified in this section. Money in the 85.7account must be used as grants or loans to statutory or home rule charter cities, towns, and 85.8counties to assist in paying the local share of trunk highway projects that have local costs 85.9that are directly or partially related to the trunk highway improvement and that are not 85.10funded or are only partially funded with other state and federal funds. The commissioner 85.11shall determine the amount of the local share of costs eligible for assistance from the 85.12account.85.13    Sec. 7. [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY 85.14ACCOUNT AND GRANT PROGRAM.85.15    Subdivision 1.Purpose.A hazardous materials rail safety program is established for 85.16the purpose of reducing the risks associated with transporting hazardous material by rail.85.17    Subd. 2.Creation of account.A hazardous materials rail safety program account is 85.18established in the bond proceeds fund. Money in the account may only be used for capital 85.19costs associated with planning, engineering, administration, and construction of public 85.20highway-rail grade crossing improvements on rail corridors transporting crude oil and 85.21other hazardous materials. Improvements may include upgrades to existing protection 85.22systems, the closing of crossings and necessary roadwork, and reconstruction of at-grade 85.23crossings to full grade separations.85.24    Subd. 3.Grants.The commissioner may approve grants for financial assistance to 85.25eligible applicants for capital costs associated with hazardous materials rail safety projects 85.26on public highway-rail grade crossings. Qualifying capital costs include, but are not 85.27limited to, upgrades to existing protection systems, the closing of crossings and necessary 85.28roadwork, and reconstruction of at-grade crossings to full grade separations.85.29    Subd. 4.Eligible applicants.Counties, statutory or home rule charter cities, or 85.30towns that are responsible for establishing and maintaining public highway-rail grade 85.31crossings on rail corridors transporting crude oil and other hazardous materials may apply 85.32to the commissioner for financial assistance for the purposes in this section.86.1    Subd. 5.Criteria for grant award.The commissioner shall consider the following 86.2criteria to evaluate applications for a grant award for a hazardous materials rail safety 86.3project:86.4    (1) whether the crossing was identified as a potential candidate for grade separation 86.5in MnDOT's crude by rail grade crossing study (Improvements to Highway Grade 86.6Crossings and Rail Safety, December 2014);86.7    (2) roadway traffic volumes and speeds;86.8    (3) train volumes and speeds;86.9    (4) adjacent land use;86.10    (5) crash history;86.11    (6) use of the crossing by emergency vehicles;86.12    (7) use of the crossing by vehicles carrying hazardous materials;86.13    (8) local financial contributions to the project; and86.14(9) private financial contributions to the project.86.15    Sec. 8. Minnesota Statutes 2014, section 446A.072, is amended to read:86.16446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING 86.17PROGRAM.86.18    Subdivision 1. Establishment of program. The authority will establish a 86.19wastewater water infrastructure funding program to provide supplemental assistance to 86.20governmental units receiving funding through the clean water revolving fund program, the 86.21drinking water revolving fund program, or the United States Department of Agriculture 86.22Rural Economic and Community Development's (USDA/RECD) Water and Waste 86.23Disposal Loans and Grants program for the predesign, design, and construction of 86.24municipal wastewater treatment and drinking water systems, including purchase of land 86.25and easements. The purpose of the program is to assist governmental units demonstrating 86.26financial need to build cost-effective projects to address existing environmental or public 86.27health problems. To implement the program, the authority shall establish a wastewater 86.28water infrastructure fund to provide grants and loans for the purposes authorized under 86.29title VI of the Federal Water Pollution Control Act and the federal Safe Drinking Water 86.30Act. The fund shall be credited with all investment income from the fund and all 86.31repayments of loans, grants, and penalties.86.32    Subd. 3. Program administration. (a) The authority shall provide supplemental 86.33assistance, as provided in subdivision 5a to governmental units:86.34    (1) whose projects are listed on the Pollution Control Agency's project priority list or 86.35the commissioner of health's project priority list;87.1    (2) that demonstrate their projects are a cost-effective solution to an existing 87.2environmental or public health problem; and87.3    (3) whose projects are approved by the USDA/RECD or certified by the 87.4commissioner of the Pollution Control Agency or the commissioner of health.87.5    (b) For a governmental unit receiving grant funding from the USDA/RECD, 87.6applications must be made to the USDA/RECD with additional information submitted to 87.7the authority as required by the authority. Eligible project costs and affordability criteria 87.8shall be determined by the USDA/RECD.87.9    (c) For a governmental unit not receiving grant funding from the USDA/RECD, 87.10application must be made to the authority on forms prescribed by the authority for the 87.11clean water revolving fund program or the drinking water revolving fund program with 87.12additional information as required by the authority. In accordance with section 
         116.182, 87.13the Pollution Control Agency or the commissioner of health shall:87.14    (1) calculate the essential project component percentage based on the portion of 87.15project costs necessary to convey or treat the existing wastewater flows and loadings or, 87.16for drinking water projects, to provide safe drinking water to meet existing needs, which 87.17must be multiplied by the total project cost to determine the eligible project cost for the 87.18program under this section; and87.19    (2) review and certify approved projects to the authority.87.20    (d) Each fiscal year the authority shall make funds available for projects based on 87.21their ranking on the Pollution Control Agency's project priority list or the commissioner 87.22of health's project priority list. The authority shall reserve funds for a project when 87.23the applicant receives a funding commitment from the United States Department of 87.24Agriculture Rural Development (USDA/RECD) or submits plans and specifications to87.25the project is certified by the Pollution Control Agency or the commissioner of health. 87.26Funds must be reserved in an amount based on the project cost estimate submitted to the 87.27authority prior to the appropriation of the funds and awarded based on the lesser of that 87.28amount or the as-bid cost when the project is certified or the as-bid cost, whichever is less.87.29    Subd. 5a. Type and amount of assistance. (a) For a governmental unit receiving 87.30grant funding from the USDA/RECD, the authority may provide assistance in the form 87.31of a grant of up to 65 percent of the eligible grant need determined by USDA/RECD. A 87.32governmental unit may not receive a grant under this paragraph for more than $4,000,000 87.33$5,000,000 per project or $15,000 $20,000 per existing connection, whichever is less, 87.34unless specifically approved by law.87.35    (b) For a governmental unit receiving a loan from the clean water revolving fund 87.36under section 
         446A.07, the authority may provide assistance under this section in the form 88.1of a grant if the average annual residential wastewater system cost after completion of the 88.2project would otherwise exceed 1.4 percent of the median household income of the project 88.3service area. In determining whether the average annual residential wastewater system 88.4cost would exceed 1.4 percent, the authority must consider the total costs associated with 88.5building, operating, and maintaining the wastewater system, including existing wastewater 88.6debt service, debt service on the eligible project cost, and operation and maintenance 88.7costs. Debt service costs for the proposed project are calculated based on the maximum 88.8loan term permitted for the clean water revolving fund loan under section 
         446A.07, 88.9subdivision 7
         . The amount of the grant is equal to 80 percent of the amount needed to 88.10reduce the average annual residential wastewater system cost to 1.4 percent of median 88.11household income in the project service area, to a maximum of $4,000,000 $5,000,000 per 88.12project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 88.13approved by law. The eligible project cost is determined by multiplying the total project 88.14costs minus any other grants by the essential project component percentage calculated 88.15under subdivision 3, paragraph (c), clause (1). In no case may the amount of the grant 88.16exceed 80 percent of the eligible project cost.88.17(c) For a governmental unit receiving a loan from the drinking water revolving 88.18fund under section 446A.081, the authority may provide assistance under this section in 88.19the form of a grant if the average annual residential drinking water system cost after 88.20completion of the project would otherwise exceed 1.2 percent of the median household 88.21income of the project service area. In determining whether the average annual residential 88.22drinking water system cost would exceed 1.2 percent, the authority must consider the total 88.23costs associated with building, operating, and maintaining the drinking water system, 88.24including existing drinking water debt service, debt service on the eligible project cost, 88.25and operation and maintenance costs. Debt service costs for the proposed project are 88.26calculated based on the maximum loan term permitted for the drinking water revolving 88.27fund loan under section 446A.081, subdivision 8, paragraph (c). The amount of the grant 88.28is equal to 80 percent of the amount needed to reduce the average annual residential 88.29drinking water system cost to 1.2 percent of median household income in the project 88.30service area, to a maximum of $5,000,000 per project or $20,000 per existing connection, 88.31whichever is less, unless specifically approved by law. The eligible project cost is 88.32determined by multiplying the total project costs minus any other grants by the essential 88.33project component percentage calculated under subdivision 3, paragraph (c), clause (1). In 88.34no case may the amount of the grant exceed 80 percent of the eligible project cost.88.35    (c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a 88.36governmental unit receiving supplemental assistance under this section after January 1, 89.12002, if the authority determines that the governmental unit's construction and installation 89.2costs are significantly increased due to geological conditions of crystalline bedrock or karst 89.3areas and discharge limits that are more stringent than secondary treatment, the maximum 89.4award under this section shall not be more than $25,000 per existing connection.89.5    Subd. 5b.Special assessment deferral.A governmental unit receiving a loan 89.6under subdivision 5a that levies special assessments to repay the loan under subdivision 89.75a or section 446A.07 may defer payment of such assessments under the provisions of 89.8sections 435.193 to 435.195.89.9    Subd. 6. Disbursements. Disbursements of grants or loans awarded under this 89.10section by the authority to recipients must be made for eligible project costs as incurred by 89.11the recipients, and must be made by the authority in accordance with the project financing 89.12agreement and applicable state and federal laws and rules governing the payments.89.13    Subd. 7.Loan repayments.Notwithstanding the limitations set forth in section 89.14475.54, subdivision 1, this subdivision shall govern the maturities and mandatory sinking 89.15fund redemptions of the loans under this section. A governmental unit receiving a loan 89.16under this section shall repay the loan in semiannual payment amounts determined by 89.17the authority. The payment amount must be based on the average payments on the 89.18governmental unit's clean water revolving fund loan or, if greater, the minimum amount 89.19required to fully repay the loan by the maturity date. Payments must begin within one year 89.20of the date of the governmental unit's final payment on the clean water revolving fund 89.21loan. The final maturity date of the loan under this section must be no later than 20 years 89.22from the date of the first payment on the loan under this section and no later than 40 years 89.23from the date of the first payment on the clean water revolving fund loan.89.24    Subd. 8. Eligibility. A governmental unit is eligible for assistance under this section 89.25only after applying for grant funding from other sources and funding has been obtained, 89.26rejected, or the authority has determined that the potential funding is unlikely.89.27    Subd. 9. Funding limitation. Supplemental assistance may not be used to reduce 89.28the sewer service charges of a significant wastewater contributor industrial user that has a 89.29separate service charge agreement with the recipient, or a single user that has caused the 89.30need for the project or whose current or projected flow and load exceed usage exceeds 89.31one-half of the current wastewater treatment plant's or drinking water system capacity.89.32    Subd. 11. Report on needs. By February 1 of each even-numbered year, the 89.33authority, in conjunction with the Pollution Control Agency and the commissioner of 89.34health, shall prepare a report to the Finance Division of the senate Environment and 89.35Natural Resources Committee and the house of representatives Environment and Natural 90.1Resources Finance Committee on wastewater and drinking water funding assistance needs 90.2of governmental units under this section.90.3    Subd. 12. System replacement fund. Each governmental unit receiving a loan or 90.4grant under this section shall establish a system replacement fund and shall annually 90.5deposit a minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, 90.6or replacement of the treatment wastewater or drinking water system, or replacement of 90.7the treatment system at the end of its useful life. Money must remain in the account for the 90.8life of the corresponding project loan from the authority or USDA/RECD, unless use of 90.9the fund is approved in writing by the authority for major rehabilitation, expansion, or 90.10replacement of the treatment wastewater or drinking water system. By March 1 each year 90.11during the life of the loan, each recipient shall submit a report to the authority regarding 90.12the amount deposited and the fund balance for the prior calendar year. A recipient is not 90.13required to maintain a fund balance greater than the amount of the grant received. Failure 90.14to comply with the requirements of this subdivision shall result in the authority assessing a 90.15penalty fee to the recipient equal to one percent of the supplemental assistance amount for 90.16each year of noncompliance. Failure to make the required deposit or pay the penalty fee as 90.17required constitutes a default on the loan.90.18    Subd. 14. Consistency with land use plans. A governmental unit applying for a 90.19project in an unsewered area shall include in its application to the authority a certification 90.20from the county in which the project is located that:90.21(1) the project is consistent with the county comprehensive land use plan, if the 90.22county has adopted one;90.23(2) the project is consistent with the county water plan, if the county has adopted 90.24one; and90.25(3) the county has adopted specific land use ordinances or controls so as to meet or 90.26exceed the requirements of Minnesota Rules, part 7080.0305.90.27    Sec. 9. Minnesota Statutes 2014, section 446A.073, as amended by Laws 2015, First 90.28Special Session chapter 4, article 4, sections 127, 128, and 129, is amended to read:90.29446A.073 POINT SOURCE IMPLEMENTATION GRANTS.90.30    Subdivision 1. Program established. When money is appropriated for grants 90.31under this program, the authority shall award grants up to a maximum of $3,000,000 90.32$7,000,000 to governmental units to cover up to one-half 80 percent of the cost of water 90.33infrastructure projects made necessary by:91.1(1) a wasteload reduction prescribed under a total maximum daily load plan required 91.2by section 303(d) of the federal Clean Water Act, United States Code, title 33, section 91.31313(d);91.4(2) a phosphorus concentration or mass limit which requires discharging one 91.5milligram per liter or less at permitted design flow which is incorporated into a permit 91.6issued by the Pollution Control Agency;91.7(3) any other water quality-based effluent limit established under section 
         115.03, 91.8subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the 91.9Pollution Control Agency that exceeds secondary treatment limits; or91.10(4) a total nitrogen concentration or mass limit of that requires discharging ten 91.11milligrams per liter or less for a land-based treatment system at permitted design flow.91.12    Subd. 2. Grant application. Application for a grant must be made to the authority 91.13on forms prescribed by the authority for the total maximum daily load grant program, with 91.14additional information as required by the authority, including a project schedule and cost 91.15estimate for the work necessary to comply with the point source wasteload allocation 91.16requirements listed in subdivision 1. The Pollution Control Agency shall:91.17(1) in accordance with section 116.182, calculate the essential project component 91.18percentage, which must be multiplied by the total project cost to determine the eligible 91.19project cost; and91.20(2) review and certify to the authority those projects that have plans and 91.21specifications approved under section 
         115.03, subdivision 1, paragraph (f).91.22    Subd. 3. Project priorities.When money is appropriated for grants under this 91.23program, The authority shall accept applications under this program during the month of 91.24July and reserve money for projects expected to proceed with construction by the end of 91.25the fiscal year in the order listed on the Pollution Control Agency's project priority list and 91.26in an amount based on the cost estimate submitted to the authority in the grant application 91.27or the as-bid costs, whichever is less. Notwithstanding Minnesota Rules, chapter 7077, 91.28the Pollution Control Agency may rank a drinking water infrastructure project on the 91.29agency's project priority list if the project is necessary to meet an applicable requirement 91.30in subdivision 1.91.31    Subd. 4. Grant approval. The authority must make a grant for an eligible project 91.32only after:91.33(1) the applicant has submitted the as-bid cost for the water infrastructure project;91.34(2) the Pollution Control Agency has approved the as-bid costs and certified the 91.35grant eligible portion of the project; and92.1(3) the authority has determined that the additional financing necessary to complete 92.2the project has been committed from other sources.92.3    Subd. 5. Grant disbursement. Disbursement of a grant must be made for eligible 92.4project costs as incurred by the governmental unit and in accordance with a project 92.5financing agreement and applicable state and federal laws and rules governing the 92.6payments.92.7    Sec. 10. Minnesota Statutes 2014, section 446A.081, subdivision 9, is amended to read:92.8    Subd. 9. Other uses of fund. (a) The drinking water revolving loan fund may be 92.9used as provided in the act, including the following uses:92.10(1) to buy or refinance the debt obligations, at or below market rates, of public water 92.11systems for drinking water systems, where the debt was incurred after the date of enactment 92.12of the act, for the purposes of construction of the necessary improvements to comply with 92.13the national primary drinking water regulations under the federal Safe Drinking Water Act;92.14(2) to purchase or guarantee insurance for local obligations to improve credit market 92.15access or reduce interest rates;92.16(3) to provide a source of revenue or security for the payment of principal and 92.17interest on revenue or general obligation bonds issued by the authority if the bond 92.18proceeds are deposited in the fund;92.19(4) to provide loans or loan guarantees for similar revolving funds established by a 92.20governmental unit or state agency;92.21(5) to earn interest on fund accounts;92.22(6) to pay the reasonable costs incurred by the authority, the Department of 92.23Employment and Economic Development, and the Department of Health for conducting 92.24activities as authorized and required under the act up to the limits authorized under the act;92.25(7) to develop and administer programs for water system supervision, source water 92.26protection, and related programs required under the act;92.27(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal 92.28forgiveness or grants to the extent permitted under the federal Safe Drinking Water Act 92.29and other federal law, based on the criteria and requirements established for drinking 92.30water projects under the water infrastructure funding program under section 446A.072;92.31(9) to provide loans, principal forgiveness or grants to the extent permitted under the 92.32federal Safe Drinking Water Act and other federal law to address green infrastructure, water 92.33or energy efficiency improvements, or other environmentally innovative activities; and93.1(10) to provide principal forgiveness, or grants for 50 percent of the project cost up 93.2to a maximum of $10,000 for projects needed to comply with national primary drinking 93.3water standards for an existing community or noncommunity public water system.93.4(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be 93.5provided if the average annual residential drinking water system cost after completion of 93.6the project would otherwise exceed 1.2 percent of the median household income in the 93.7project service area. In determining whether the average annual residential drinking 93.8water system cost would exceed 1.2 percent, the authority must consider the total costs 93.9associated with building, operating, and maintaining the drinking water system, including 93.10debt service and operation and maintenance costs. Debt service costs for the proposed 93.11project must be calculated based on the maximum loan term permitted for the drinking 93.12water revolving fund loan under this section. The amount of the principal forgiveness or 93.13grant must be equal to 80 percent of the amount needed to reduce the average annual 93.14residential drinking water system cost to 1.2 percent of median household income in the 93.15project service area, to a maximum of $4,000,000 or $15,000 per connection, whichever is 93.16less, and not to exceed 80 percent of the total project cost.93.17(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may 93.18not exceed 25 percent of the eligible project costs as determined by the Department of 93.19Health for project components directly related to green infrastructure, water or energy 93.20efficiency improvements, or other environmentally innovative activities, up to a maximum 93.21of $1,000,000.93.22(d) The authority may reduce the percentage of median household income at which a 93.23loan term could extend to 30 years under subdivision 8, paragraph (c), and at which 93.24principal forgiveness or grants could be provided under paragraph (b) if it determines that 93.25the federal money allotted to the state cannot be fully utilized without the reduction. If it 93.26determines that the reduction is necessary to fully utilize the federal money, the authority 93.27must effect the change through its approval of the annual intended use plan.93.28    Sec. 11. Minnesota Statutes 2014, section 446A.12, subdivision 1, is amended to read:93.29    Subdivision 1. Bonding authority. The authority may issue negotiable bonds in a 93.30principal amount that the authority determines necessary to provide sufficient funds for 93.31achieving its purposes, including the making of loans and purchase of securities, the 93.32payment of interest on bonds of the authority, the establishment of reserves to secure its 93.33bonds, the payment of fees to a third party providing credit enhancement, and the payment 93.34of all other expenditures of the authority incident to and necessary or convenient to carry 93.35out its corporate purposes and powers, but not including the making of grants. Bonds of 94.1the authority may be issued as bonds or notes or in any other form authorized by law. 94.2The principal amount of bonds issued and outstanding under this section at any time 94.3may not exceed $1,500,000,000 $2,000,000,000, excluding bonds for which refunding 94.4bonds or crossover refunding bonds have been issued, and excluding any bonds issued 94.5for the credit enhanced bond program or refunding or crossover refunding bonds issued 94.6under the program. The principal amount of bonds issued and outstanding under section 94.7446A.087
         , may not exceed $500,000,000, excluding bonds for which refunding bonds or 94.8crossover refunding bonds have been issued.94.9    Sec. 12. Minnesota Statutes 2014, section 462A.37, is amended by adding a 94.10subdivision to read:94.11    Subd. 2c.Additional authorization.In addition to the amount authorized in 94.12subdivisions 2, 2a, and 2b, the agency may issue up to $70,000,000 in housing infrastructure 94.13bonds in one or more series to which the payments under this section may be pledged.94.14    Sec. 13. Minnesota Statutes 2015 Supplement, section 462A.37, subdivision 5, is 94.15amended to read:94.16    Subd. 5. Additional appropriation. (a) The agency must certify annually to the 94.17commissioner of management and budget the actual amount of annual debt service on 94.18each series of bonds issued under subdivisions 2a and, 2b, and 2c.94.19(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 94.20bonds issued under subdivision 2a remain outstanding, the commissioner of management 94.21and budget must transfer to the housing infrastructure bond account established under 94.22section 
         462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 94.23$6,400,000 annually. The amounts necessary to make the transfers are appropriated from 94.24the general fund to the commissioner of management and budget.94.25(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 94.26bonds issued under subdivision 2b remain outstanding, the commissioner of management 94.27and budget must transfer to the housing infrastructure bond account established under 94.28section 
         462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 94.29$800,000 annually. The amounts necessary to make the transfers are appropriated from 94.30the general fund to the commissioner of management and budget.94.31(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure 94.32bonds issued under subdivision 2c remain outstanding, the commissioner of management 94.33and budget must transfer to the housing infrastructure bond account established under 94.34section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 95.1$5,600,000 annually. The amounts necessary to make the transfers are appropriated from 95.2the general fund to the commissioner of management and budget.95.3(d) (e) The agency may pledge to the payment of the housing infrastructure bonds 95.4the payments to be made by the state under this section.95.5    Sec. 14. Laws 2002, chapter 393, section 22, subdivision 6, as amended by Laws 2005, 95.6chapter 20, article 1, section 43, and Laws 2013, chapter 136, section 10, is amended to 95.7read:

95.895.9Subd. 6.Fergus Falls Regional Treatment Center3,000,000

95.10To design, renovate, construct, furnish, 95.11and equip ancillary support and program 95.12facilities, including improvements to basic 95.13infrastructure, such as sanitary and storm 95.14sewer and water lines, public streets, 95.15curb, gutter, street lights, or sidewalks, to 95.16make improvements for building envelope 95.17and structural integrity for the purposes 95.18of stabilizing the buildings for sale, for 95.19hazardous materials abatement, and for 95.20demolition of all or portions of surplus, 95.21nonfunctional, or deteriorated facilities 95.22and infrastructure or to renovate surplus, 95.23nonfunctional, or deteriorated facilities and 95.24infrastructure to facilitate the redevelopment 95.25of the Fergus Falls Regional Treatment 95.26Center campus. If the property is sold or 95.27transferred to a local unit of government, the 95.28unspent portion of this appropriation may be 95.29granted to the local unit of government that 95.30acquires the campus for the purposes stated 95.31in this subdivision.95.32Notwithstanding Minnesota Statutes, section 95.3316A.642
         , the bond sale authorization and 95.34appropriation of bond proceeds in this 96.1subdivision are available until December 31, 96.22016 2018.96.3EFFECTIVE DATE.This section is effective the day following final enactment.96.4    Sec. 15. Laws 2008, chapter 179, section 7, subdivision 27, as amended by Laws 2010, 96.5chapter 189, section 56, Laws 2010, chapter 399, section 4, Laws 2012, chapter 293, 96.6section 39, and Laws 2014, chapter 294, article 2, section 9, is amended to read:

96.796.8Subd. 27.State Trail Acquisition, Rehabilitation, and Development15,320,000

96.9To acquire land for and to construct and 96.10renovate state trails under Minnesota 96.11Statutes, section 
         85.015.96.12$970,000 is for the Chester Woods Trail 96.13from Rochester to Dover. Notwithstanding 96.14Minnesota Statutes, section 
         16A.642, the 96.15bond authorization and appropriation of bond 96.16proceeds for this project are available until 96.17June 30, 2016.96.18$700,000 is for the Casey Jones Trail.96.19$750,000 is for the Gateway Trail, to replace 96.20an at-grade crossing of the Gateway Trail 96.21at Highway 120 with a grade-separated 96.22crossing. Notwithstanding Minnesota 96.23Statutes, section 16A.642, the bond 96.24authorization and appropriation of bond 96.25proceeds for this project are available until 96.26December 31, 2017.96.27$1,600,000 is for the Gitchi-Gami Trail 96.28between Silver Bay and Tettegouche State 96.29Park.96.30$1,500,000 is for the Great River Ridge Trail 96.31from Plainview to Elgin to Eyota.96.32$1,500,000 is for the Heartland Trail.97.1$500,000 is for the Mill Towns Trail from 97.2Lake Byllesby Park to Cannon Falls. 97.3Notwithstanding Minnesota Statutes, 97.4section 
         16A.642, the bond authorization 97.5and appropriation of bond proceeds for this 97.6project are available until December 30, 97.72014.97.8$150,000 is for the Mill Towns Trail within 97.9the city of Faribault.97.10$1,500,000 is for the Minnesota River Trail 97.11from Appleton to Milan and to the Marsh 97.12Lake Dam. Notwithstanding Minnesota 97.13Statutes, section 
         16A.642, the bond 97.14authorization and appropriation of bond 97.15proceeds for this project are available until 97.16December 30, 2014.97.17$2,000,000 is for the Paul Bunyan Trail from 97.18Walker to Guthrie.97.19$250,000 is for the Root River Trail from 97.20Preston to Forestville State Park.97.21$100,000 is for the Root River Trail, the 97.22eastern extension.97.23$250,000 is for the Root River Trail, the 97.24eastern extension Wagon Wheel.97.25$550,000 is to connect the Stagecoach Trail 97.26with the Douglas Trail in Olmsted County. 97.27Notwithstanding Minnesota Statutes, 97.28section 
         16A.642, the bond authorization 97.29and appropriation of bond proceeds for this 97.30project are available until December 31, 97.312016.97.32$3,000,000 is to rehabilitate state trails.97.33For any project listed in this subdivision that 97.34the commissioner determines is not ready to 98.1proceed, the commissioner may allocate that 98.2project's money to another state trail project 98.3in this subdivision. The chairs of the house 98.4and senate committees with jurisdiction 98.5over environment and natural resources 98.6and legislators from the affected legislative 98.7districts must be notified of any changes.98.8    Sec. 16. Laws 2011, First Special Session chapter 12, section 13, subdivision 8, 98.9is amended to read:

98.1098.11Subd. 8.Rail Service Improvement - St. Louis Park Noise Barrier700,000

98.12For a grant to the city of St. Louis Park to 98.13predesign, design, construct, and install noise 98.14mitigation barriers associated with route 98.15changes for freight rail. This appropriation 98.16may be used to design and construct trail 98.17safety improvements for the Beltline trail 98.18bridge, the Wooddale trail underpass, and the 98.19Louisiana trail underpass. Notwithstanding 98.20Minnesota Statutes, section 16A.642, this 98.21appropriation is available until January 1, 98.222018.98.23    Sec. 17. Laws 2012, chapter 293, section 7, subdivision 8, is amended to read:

98.24Subd. 8.Lake Zumbro3,000,000

98.25For a grant to Olmsted County for the 98.26removal of sedimentation in Lake Zumbro, 98.27including final engineering, dredging, 98.28and dredged soil disposal from the sites 98.29identified in the Preliminary Engineering 98.30Report for Dredging Lake Zumbro. 98.31This project is designed to improve the 98.32recreational economy, water quality, and 98.33habitat, and increase water storage capacity 99.1within the lake to achieve renewable 99.2energy goals by optimizing long-term 99.3hydroelectric operations. This appropriation 99.4is not available until the commissioner 99.5has determined that at least an equal 99.6amount has been committed to the project 99.7from nonstate sources. Notwithstanding 99.8Minnesota Statutes, section 16A.642, the 99.9bond authorization and appropriation of bond 99.10proceeds for this project are available until 99.11December 31, 2018.99.12    Sec. 18. Laws 2012, chapter 293, section 17, subdivision 4, is amended to read:

99.13Subd. 4.Phillips Community Center1,750,000

99.14For a grant to the Minneapolis Park and 99.15Recreation Board to predesign, design, 99.16engineer, reconstruct, renovate, furnish, 99.17and equip the Phillips Community Center 99.18indoor competitive swimming pool and to 99.19predesign, design, engineer, and construct 99.20an additional indoor multipurpose family 99.21pool and facilities associated with an aquatic 99.22center in the community center, subject to 99.23Minnesota Statutes, section 
         16A.695.99.24This appropriation is not available until 99.25the commissioner determines that at least 99.26$350,000 is committed from nonstate 99.27sources. Notwithstanding Minnesota 99.28Statutes, section 16A.642, the bond 99.29authorization and appropriation of bond 99.30proceeds for this project are available until 99.31December 31, 2018.99.32    Sec. 19. Laws 2014, chapter 294, article 1, section 7, subdivision 15, is amended to read:

99.33Subd. 15.Grant County Trail Grant100,000

100.1For a grant to Grant County for predesign, 100.2acquisition, and or improvements for a trail 100.3from the city of Elbow Lake to Pomme de 100.4Terre Lake. The commissioner of natural 100.5resources may allocate any amount not 100.6needed to complete this project to state 100.7trail acquisition and improvements under 100.8Minnesota Statutes, section 
         85.015.100.9    Sec. 20. Laws 2014, chapter 294, article 1, section 17, subdivision 6, is amended to read:

100.10100.11Subd. 6.Inver Grove Heights - Heritage Village Park2,000,000

100.12$1,500,000 of this appropriation is for a 100.13grant to the city of Inver Grove Heights 100.14and $500,000 of this appropriation is for a 100.15grant to Dakota County. This appropriation 100.16is for public infrastructure improvements 100.17and land acquisition in and adjacent to the 100.18Heritage Village Park, the Mississippi River 100.19Trail, and the Rock Island Swing Bridge. 100.20These improvements will include but are 100.21not limited to motor vehicle access, utility 100.22service, stormwater treatment, and trail and 100.23sidewalk connections. This appropriation 100.24is not available until the commissioner of 100.25management and budget has determined that 100.26at least an equal amount has been committed 100.27to the project from nonstate sources.100.28    Sec. 21. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to 100.29read:

100.30100.31100.32Subd. 12.West St. Paul - North Urban Regional Trail Bridge River-to-River Greenway Crossing2,000,000

100.33For a grant to the city of West St. Paul to 100.34predesign, design, and construct a pedestrian 101.1bridge grade-separated crossing  for the 101.2North Urban Regional Trail as an overpass101.3River-to-River Greenway  of Robert Street in 101.4the area near Wentworth Avenue in West St. 101.5Paul. This appropriation may also be used to 101.6acquire property or purchase rights-of-way 101.7needed for bridge construction. A nonstate 101.8match is not required.101.9    Sec. 22. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 101.103, is amended to read:

101.11101.12Subd. 3.Local Road Improvement Fund Grants8,910,000

101.13(a) From the bond proceeds account in 101.14the state transportation fund as provided 101.15in Minnesota Statutes, section 
         174.50, for 101.16construction and reconstruction of local 101.17roads with statewide or regional significance 101.18under Minnesota Statutes, section 
         174.52, 101.19subdivision 4
         , or for grants to counties to 101.20assist in paying the costs of rural road safety 101.21capital improvement projects on county 101.22state-aid highways under Minnesota Statutes, 101.23section 
         174.52, subdivision 4a.101.24(b) This appropriation includes $850,000 for 101.25a grant to the city of Sandstone for predesign, 101.26design, engineering, and construction of a 101.27road extending south off of marked Trunk 101.28Highway 23 across from Lundorff Drive 101.29to the airport area, and including a bridge 101.30over Skunk Creek in Sandstone, in order to 101.31facilitate repurposing of an area of the airport 101.32into a business park. This appropriation 101.33is not available until the commissioner of 101.34management and budget determines that 101.35sufficient resources to complete the project 102.1are committed to it from other sources, 102.2including any funds made available from the 102.3commissioner of transportation.102.4(c) This appropriation includes $3,770,000 102.5for a grant to Kandiyohi County for 102.6construction and reconstruction of local 102.7roads to facilitate the construction of 102.8highway-rail grade separations at U.S. 102.9Highway 12 and,  Minnesota Highway 40, or 102.10County State-Aid Highway 55  as part of the 102.11Willmar Wye project.102.12    Sec. 23. OFFICE OF LEGISLATIVE AUDITOR REPORT - FUNDING FOR 102.13ASSET PRESERVATION.102.14    Subdivision 1.Report.By November 15, 2016, the legislative auditor shall report to 102.15the chairs and ranking minority members of the committees in the senate with jurisdiction 102.16over finance and capital investment and in the house of representatives with jurisdiction 102.17over ways and means and capital investment, with recommendations for sustainable, 102.18reliable, predictable funding for preservation of capital assets owned by agencies.102.19    Subd. 2.Funding options and approaches.The report shall assess the feasibility of 102.20implementing the following options and may include evaluation of other feasible options:102.21(1) establishing a standing appropriation from the general fund to pay a portion of 102.22certified asset preservation needs;102.23(2) establishing a standing appropriation from the bond proceeds fund, and 102.24authorizing the sale of general obligation bonds, to pay a portion of certified asset 102.25preservation needs;102.26(3) dedicating a specified portion of fees collected by agencies to use for asset 102.27preservation; and102.28(4) shifting asset preservation from the capital budget to the operating budget so that 102.29asset preservation is built into the base budget.102.30Evaluations should include a comparison to current law and practice.102.31    Subd. 3.Real property portfolio management system.The commissioner 102.32of administration shall provide assistance, as requested by the legislative auditor, for 102.33preparing the report, including providing data from the ARCHIBUS real property portfolio 102.34management system.103.1    Subd. 4.Demolition.The report shall evaluate whether the metrics and process 103.2used by each agency to recommend demolition of capital assets are comprehensive enough 103.3to reflect what is in the best interest of the state.103.4    Subd. 5.Definition."Agencies" as used in this section means all executive branch 103.5agencies, the Board of Regents of the University of Minnesota, and the Board of Trustees 103.6of Minnesota State Colleges and Universities.103.7    Sec. 24. VETERANS HOMES; MONTEVIDEO AND BEMIDJI.103.8The fiscal year 2018 and fiscal year 2019 general fund base appropriation for 103.9veterans homes is increased by $10,000,000 each fiscal year. This increase is for the 103.10operating costs of 143 skilled nursing beds added after July 1, 2016, in one or more 103.11veteran homes, including Montevideo and Bemidji. None of this increased amount may 103.12be used for operating costs at a veterans home in Minneapolis.103.13    Sec. 25. APPROPRIATION; WATER SUPPLY SUSTAINABILITY STUDY.103.14(a) $1,780,000 is appropriated in fiscal year 2017 from the general fund to the 103.15commissioner of natural resources.103.16(b) Of this amount:103.17(1) $1,500,000 is for a study to evaluate long-term water supply sustainability in the 103.18north and east metro, identify options to address any challenges identified to the north 103.19and east metro's long-term water supply sustainability, and assess the feasibility and costs 103.20of those options. The study must consider available information concerning interactions 103.21between the region's surface water and groundwater systems, including White Bear 103.22Lake. The commissioner must conduct this study in consultation and coordination with 103.23affected communities, the Metropolitan Council and other state and regional agencies, 103.24water utilities, watershed districts, counties, industrial water permit holders, and other 103.25entities with a demonstrated interest in the water supply challenges facing the north 103.26and east metro. The commissioner must complete a report summarizing study findings 103.27regarding long-term water supply sustainability challenges in the north and east metro 103.28and the feasibility of various options for addressing those challenges. Efficient water use 103.29and water reuse options must be included in the report. The commissioner's report must 103.30consider sufficient detail regarding preliminary design considerations, including supply 103.31source, treatment, distribution, operation, and financing, of all feasible options evaluated. 103.32The report must be provided no later than January 15, 2018, to the chairs and ranking 103.33minority members of the house of representatives and senate committees and divisions 103.34with jurisdiction over environment and natural resources finance and policy and the clean 104.1water fund. No detailed design may be undertaken by the commissioner without legislative 104.2approval. A copy of the draft report will be provided to all affected local agencies for 104.3review and comment prior to finalization and presentation by the commissioner to the 104.4legislature. The appropriation in this clause is available until June 30, 2018; and104.5(2) $280,000 is for water quality monitoring, modeling, and data analysis to 104.6establish baseline water quality conditions and to assess the water quality impacts and 104.7other potential ecological effects of augmenting White Bear Lake with water from Vadnais 104.8Lake on both White Bear Lake and Vadnais Lake. The appropriation in this clause 104.9is available until June 30, 2018.104.10    Sec. 26.  REPEALER.104.11Minnesota Statutes 2014, section 123A.446, is repealed.104.12    Sec. 27. EFFECTIVE DATE.104.13Except as otherwise provided, this act is effective the day following final enactment.