1.1 	A bill for an act
1.2 	relating to capital investment; authorizing spending to acquire and better public 
1.3 	land and buildings and other improvements of a capital nature with certain 
1.4 	conditions; modifying previous appropriations; establishing new programs 
1.5 	and modifying existing programs; authorizing the sale and issuance of state 
1.6 	bonds; appropriating money;amending Minnesota Statutes 2014, sections 85.34, 
1.7 	subdivision 1; 116J.431, subdivisions 1, 2, 4, 6; 174.50, subdivision 7; 446A.072; 
1.8 	446A.073, as amended; 446A.081, subdivision 9; 446A.12, subdivision 1; 
1.9 	Minnesota Statutes 2015 Supplement, sections 16A.967, subdivisions 2, 7; 
1.10 	85.015, subdivision 6; Laws 2002, chapter 393, section 22, subdivision 6, as 
1.11 	amended; Laws 2010, chapter 189, section 7, subdivision 5; Laws 2012, chapter 
1.12 	293, sections 7, subdivision 3; 17, subdivision 4; Laws 2014, chapter 294, article 
1.13 	1, sections 7, subdivision 15; 17, subdivisions 6, 12; Laws 2015, First Special 
1.14 	Session chapter 5, article 1, sections 10, subdivision 3; 19; repealing Minnesota 
1.15 	Statutes 2014, section 123A.446.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	APPROPRIATIONS

1.19	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.20 	The sums shown in the column under "Appropriations" are appropriated from the 
1.21 	bond proceeds fund, or another named fund, to the state agencies or officials indicated, 
1.22 	to be spent for public purposes. Appropriations of bond proceeds must be spent as 
1.23 	authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 
1.24 	and better public land and buildings and other public improvements of a capital nature, or 
1.25 	as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), 
1.26 	or article XIV. Unless otherwise specified, money appropriated in this act for a capital 
1.27 	program or project may be used to pay state agency staff costs that are attributed directly 
1.28 	to the capital program or project in accordance with accounting policies adopted by the 
2.1 	commissioner of management and budget. Unless otherwise specified, the appropriations 
2.2 	in this act are available until the project is completed or abandoned subject to Minnesota 
2.3 	Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in 
2.4 	this act for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, 
2.5 	should not be used for projects that can be financed within a reasonable time frame under 
2.6 	Minnesota Statutes, section 16B.322 or 16C.144.

2.7						APPROPRIATIONS

2.8	Sec. 2. UNIVERSITY OF MINNESOTA

2.9	Subdivision 1.Total Appropriation
 			$
	65,167,000
	
2.10 	To the Board of Regents of the University 
2.11 	of Minnesota for the purposes specified in 
2.12 	this section.

2.13
2.14	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				38,000,000
	
2.15 	To be spent in accordance with Minnesota 
2.16 	Statutes, section 135A.046.

2.17
2.18	Subd. 3.Chemical Sciences and Advanced 
Materials Science Building
 				27,167,000
	
2.19 	To design, construct, furnish, and equip 
2.20 	a new laboratory building on the Duluth 
2.21 	campus, including classrooms and research 
2.22 	and undergraduate instructional laboratories.

2.23	Subd. 4.University Share
 					
2.24 	Except for the appropriation for HEAPR, the 
2.25 	appropriations in this section are intended to 
2.26 	cover approximately two-thirds of the cost of 
2.27 	each project. The remaining costs must be 
2.28 	paid from university sources.

2.29	Subd. 5.Unspent Appropriations
 					
2.30 	Upon substantial completion of a project 
2.31 	authorized in this section and after written 
2.32 	notice to the commissioner of management 
2.33 	and budget, the Board of Regents must use 
3.1 	any money remaining in the appropriation 
3.2 	for that project for HEAPR under Minnesota 
3.3 	Statutes, section 135A.046. The Board 
3.4 	of Regents must report by February 1 of 
3.5 	each even-numbered year to the chairs of 
3.6 	the house of representatives and senate 
3.7 	committees with jurisdiction over capital 
3.8 	investment and higher education finance, and 
3.9 	to the chairs of the house of representatives 
3.10 	Ways and Means Committee and the senate 
3.11 	Finance Committee, on how the remaining 
3.12 	money has been allocated or spent.

3.13
3.14	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

3.15	Subdivision 1.Total Appropriation
 			$
	72,723,000
	
3.16 	To the Board of Trustees of the Minnesota 
3.17 	State Colleges and Universities for the 
3.18 	purposes specified in this section.

3.193.20	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR) 				
35,500,000
	
3.21 	To be spent in accordance with Minnesota 
3.22 	Statutes, section 135A.046.

3.23
3.24	Subd. 3.Minnesota State Community and 
Technical College

3.25	(a) Fergus Falls campus
				978,000
	
3.26 	To design, renovate, furnish, and equip 
3.27 	a new Center for Student and Workforce 
3.28 	Success (CSWS) that integrates the Regional 
3.29 	Workforce Center. The board must enter into 
3.30 	a lease agreement with the commissioner of 
3.31 	employment and economic development, 
3.32 	or partners of the commissioner, for use of 
3.33 	the workforce center subject to Minnesota 
3.34 	Statutes, section 16A.695. The board must 
4.1 	use nonstate money for the remainder of the 
4.2 	cost of the renovation.

4.3	(b) Wadena campus
				820,000
	
4.4 	To design, renovate, furnish, and equip 
4.5 	the relocation of the current library to 
4.6 	underutilized space and converting the 
4.7 	vacated space into a centralized student 
4.8 	services center.

4.94.10
	Subd. 4.Northland Community and Technical 
College, East Grand Forks
 				826,000
	
4.11 	To design, renovate, furnish, and equip 
4.12 	science and radiological lab space on the 
4.13 	East Grand Forks campus.

4.14
4.15	Subd. 5.Riverland Community College, Albert 
Lea
 				7,427,000
	
4.16 	To design, construct, furnish, and equip the 
4.17 	renovation and expansion of the Trade and 
4.18 	Industrial Education Center on the Albert Lea 
4.19 	campus of Riverland Community College.

4.20
4.21	Subd. 6.South Central College, North 
Mankato
 				8,600,000
	
4.22 	To design, renovate, renew, furnish, and 
4.23 	equip laboratory, classroom and office spaces 
4.24 	on the North Mankato campus.

4.25	Subd. 7.St. Cloud State University
 				18,572,000
	
4.26 	To construct, renovate, furnish, and 
4.27 	equip Eastman Hall for the relocation of 
4.28 	consolidated student health services and 
4.29 	academic programs.

4.30	Subd. 8.Debt Service
 					
4.31 	(a) Except as provided in paragraph (b), the 
4.32 	Board of Trustees shall pay the debt service 
4.33 	on one-third of the principal amount of state 
4.34 	bonds sold to finance projects authorized 
5.1 	by this section. After each sale of general 
5.2 	obligation bonds, the commissioner of 
5.3 	management and budget shall notify the 
5.4 	board of the amounts assessed for each year 
5.5 	for the life of the bonds.
5.6 	(b) The board need not pay debt service 
5.7 	on bonds sold to finance HEAPR. Where a 
5.8 	nonstate match is required, the debt service is 
5.9 	due on a principal amount equal to one-third 
5.10 	of the total project cost, less the match 
5.11 	committed before the bonds are sold.
5.12 	(c) The commissioner of management and 
5.13 	budget shall reduce the board's assessment 
5.14 	each year by one-third of the net income 
5.15 	from investment of general obligation bond 
5.16 	proceeds in proportion to the amount of 
5.17 	principal and interest otherwise required to 
5.18 	be paid by the board. The board shall pay its 
5.19 	resulting net assessment to the commissioner 
5.20 	of management and budget by December 
5.21 	1 each year. If the board fails to make 
5.22 	a payment when due, the commissioner 
5.23 	of management and budget shall reduce 
5.24 	allotments for appropriations from the 
5.25 	general fund otherwise available to the board 
5.26 	and apply the amount of the reduction to 
5.27 	cover the missed debt service payment. The 
5.28 	commissioner of management and budget 
5.29 	shall credit the payments received from the 
5.30 	board to the bond debt service account in 
5.31 	the state bond fund each December 1 before 
5.32 	money is transferred from the general fund 
5.33 	under Minnesota Statutes, section 16A.641, 
5.34 	subdivision 10.

5.35	Subd. 9.Unspent Appropriations
 					
6.1 	(a) Upon substantial completion of a project 
6.2 	authorized in this section and after written 
6.3 	notice to the commissioner of management 
6.4 	and budget, the board must use any money 
6.5 	remaining in the appropriation for that 
6.6 	project for HEAPR under Minnesota 
6.7 	Statutes, section 135A.046. The Board 
6.8 	of Trustees must report by February 1 of 
6.9 	each even-numbered year to the chairs of 
6.10 	the house of representatives and senate 
6.11 	committees with jurisdiction over capital 
6.12 	investment and higher education finance, and 
6.13 	to the chairs of the house of representatives 
6.14 	Ways and Means Committee and the senate 
6.15 	Finance Committee, on how the remaining 
6.16 	money has been allocated or spent.
6.17 	(b) The unspent portion of an appropriation 
6.18 	for a project in this section that is complete is 
6.19 	available for HEAPR under this subdivision, 
6.20 	at the same campus as the project for which 
6.21 	the original appropriation was made and the 
6.22 	debt service requirement under subdivision 8 
6.23 	is reduced accordingly. Minnesota Statutes, 
6.24 	section 16A.642, applies from the date of the 
6.25 	original appropriation to the unspent amount 
6.26 	transferred.

6.27	Sec. 4. EDUCATION

6.28	Subdivision 1.Total Appropriation
 			$
	16,070,000
	
6.29 	To the commissioner of education for the 
6.30 	purposes specified in this section.

6.31	Subd. 2.Library Construction Grants
 				2,000,000
	
6.32 	For library construction grants under 
6.33 	Minnesota Statutes, section 134.45.

7.1
7.2	Subd. 3.Red Lake Independent School District 
No. 38 Facility Projects
 				14,070,000
	
7.3 	(a) This appropriation is from the maximum 
7.4 	effort school loan fund for a capital loan 
7.5 	to Independent School District No. 38, 
7.6 	Red Lake, as provided in Minnesota 
7.7 	Statutes, sections 126C.60 to 126C.72. 
7.8 	This appropriation is for the following 
7.9 	projects at the Red Lake Elementary School 
7.10 	and early childhood center: constructing, 
7.11 	furnishing, and equipping new classrooms 
7.12 	connecting the early childhood center and the 
7.13 	elementary school; renovating classrooms, 
7.14 	computer labs, cafeteria expansion, and 
7.15 	student support areas; updating mechanical 
7.16 	systems; and relocating the main entrance 
7.17 	and administrative office.
7.18 	(b) Before any capital loan contract is 
7.19 	approved under this subdivision, the district 
7.20 	must provide documentation acceptable 
7.21 	to the commissioner on how the capital 
7.22 	loan will be used. If any portion of the 
7.23 	appropriation remains after completion of 
7.24 	the identified project components, the district 
7.25 	may, with the commissioner's approval, use 
7.26 	the money for other items identified in the 
7.27 	review and comment submission.

7.28	Sec. 5. MINNESOTA STATE ACADEMIES

7.29	Subdivision 1.Total Appropriation
 			$
	2,050,000
	
7.30 	To the commissioner of administration for 
7.31 	the purposes specified in this section.

7.32	Subd. 2.Asset Preservation
 				2,000,000
	
7.33 	For capital asset preservation improvements 
7.34 	and betterments on both campuses of the 
8.1 	Minnesota State Academies, to be spent in 
8.2 	accordance with Minnesota Statutes, section 
8.3 	16B.307.

8.4
8.5	Subd. 3.Minnesota State Academies Security 
Corridor
 				50,000
	
8.6 	For predesign for a safety corridor on the 
8.7 	Minnesota State Academy for the Deaf 
8.8 	campus.

8.9	Sec. 6. NATURAL RESOURCES

8.10	Subdivision 1.Total Appropriation
 			$
	33,990,000
	
8.11 	(a) To the commissioner of natural resources 
8.12 	for the purposes specified in this section.
8.13 	(b) The appropriations in this section are 
8.14 	subject to the requirements of the natural 
8.15 	resources capital improvement program 
8.16 	under Minnesota Statutes, section 86A.12, 
8.17 	unless this section or the statutes referred 
8.18 	to in this section provide more specific 
8.19 	standards, criteria, or priorities for projects 
8.20 	than Minnesota Statutes, section 86A.12.

8.21	Subd. 2.Natural Resources Asset Preservation
 				12,000,000
	
8.22 	For the renovation of state-owned facilities 
8.23 	and recreational assets operated by the 
8.24 	commissioner of natural resources to 
8.25 	be spent in accordance with Minnesota 
8.26 	Statutes, section 84.946. Notwithstanding 
8.27 	Minnesota Statutes, section 84.946: (1) the 
8.28 	commissioner may use this appropriation 
8.29 	to replace buildings if, considering the 
8.30 	embedded energy in the building, that is the 
8.31 	most energy-efficient and carbon-reducing 
8.32 	method of renovation; and (2) this 
8.33 	appropriation may be used for projects to 
9.1 	remove life safety hazards such as building 
9.2 	code violations or structural defects.

9.3	Subd. 3.Flood Hazard Mitigation
 				3,500,000
	
9.4 	(a) For the state share of flood hazard 
9.5 	mitigation grants for publicly owned capital 
9.6 	improvements to prevent or alleviate flood 
9.7 	damage under Minnesota Statutes, section 
9.8 	103F.161. 
9.9 	(b) Levee projects, to the extent practical, 
9.10 	shall meet the state standard of three feet 
9.11 	above the 100-year flood elevation.
9.12 	(c) Project priorities shall be determined by 
9.13 	the commissioner as appropriate and based 
9.14 	on need.
9.15 	(d) This appropriation includes $750,000 
9.16 	for the city of Browns Valley project and 
9.17 	$1,800,000 for the city of Ortonville project.
9.18 	(e) For any project listed in this subdivision 
9.19 	that the commissioner determines is not 
9.20 	ready to proceed or does not expend all the 
9.21 	money allocated to it, the commissioner may 
9.22 	allocate that project's money to a project on 
9.23 	the commissioner's priority list.
9.24 	(f) To the extent that the cost of a project 
9.25 	exceeds two percent of the median household 
9.26 	income in a municipality or township 
9.27 	multiplied by the number of households in the 
9.28 	municipality or township, this appropriation 
9.29 	is also for the local share of the project.

9.30	Subd. 4.Dam Renovation, Repair, Removal
 				9,000,000
	
9.31 	(a) To renovate or remove publicly owned 
9.32 	dams. The commissioner shall determine 
9.33 	project priorities as appropriate under 
10.1 	Minnesota Statutes, sections 103G.511 and 
10.2 	103G.515. Of this appropriation:
10.3 	$500,000 is for emergencies on state-owned 
10.4 	dams;
10.5 	$3,600,000 is for a grant to the city of 
10.6 	Lanesboro for repair of the Lanesboro dam 
10.7 	and notwithstanding the match requirements 
10.8 	in Minnesota Statutes, section 103G.511, 
10.9 	does not require a nonstate contribution. 
10.10 	This includes funding for repairs of the 
10.11 	hydropower system;
10.12 	$2,500,000 is for repairs of the Lake Bronson 
10.13 	dam;
10.14 	$500,000 is for a grant to the city of Pelican 
10.15 	Rapids for engineering work for the Pelican 
10.16 	Rapids dam;
10.17 	$200,000 is for a grant to the city of Norway 
10.18 	Lake for engineering work on the Norway 
10.19 	Lake dam;
10.20 	$200,000 is for a grant to Yellow Medicine 
10.21 	County for the Canby R-6 impoundment dam;
10.22 	$100,000 is for a grant to St. Louis County 
10.23 	for the Little Stone Lake dam; and
10.24 	$1,400,000 is for state dams at Brawner, 
10.25 	Collinwood, Grindstone River, and Sullivan.
10.26 	If the commissioner determines that a project 
10.27 	is not ready to proceed, this appropriation 
10.28 	may be used for other projects on the 
10.29 	commissioner's priority list.

10.30	Subd. 5.Trail Development
 				6,190,000
	
10.31 	$2,590,000 is for the Glacial Lakes Trail, 
10.32 	to complete an approximately six and 
10.33 	one-quarter mile trail connection between 
11.1 	New London and Sibley State Park, and 
11.2 	repair of the bicycle trail in Sibley State Park.
11.3 	$3,600,000 is for acquisition and 
11.4 	development in the Cuyuna Country State 
11.5 	Recreation Area, including the Cuyuna 
11.6 	Mountain Bike System.

11.7	Subd. 6.Champlin Mill Pond
 				3,300,000
	
11.8 	For a grant to the city of Champlin to dredge 
11.9 	and remove sediment and for other capital 
11.10 	improvements of the Champlin Mill Pond 
11.11 	necessary to improve water quality, restore 
11.12 	fish habitat, and provide other public benefits.

11.13	Subd. 7.Unspent Appropriations
 					
11.14 	The unspent portion of an appropriation for 
11.15 	a project in this section that is complete, 
11.16 	upon written notice to the commissioner 
11.17 	of management and budget, is available 
11.18 	for asset preservation under Minnesota 
11.19 	Statutes, section 84.946. Minnesota Statutes, 
11.20 	section 16A.642, applies from the date of the 
11.21 	original appropriation to the unspent amount 
11.22 	transferred.

11.23	Sec. 7. POLLUTION CONTROL AGENCY

11.24	Subdivision 1.Total Appropriation
 			$
	20,505,000
	
11.25 	To the commissioner of the Pollution Control 
11.26 	Agency for the purposes specified in this 
11.27 	section.

11.28	Subd. 2.St. Louis River Cleanup
 				12,705,000
	
11.29 	To design and implement contaminated 
11.30 	sediment management actions identified in 
11.31 	the St. Louis River remedial action plan to 
11.32 	restore water quality in the St. Louis River 
11.33 	Area of Concern.

12.1
12.2
12.3	Subd. 3.Redwood-Cottonwood Rivers Joint 
Powers - Lake Redwood Reclamation and 
Enhancement Project
 				7,800,000
	
12.4 	For a grant to the Redwood-Cottonwood 
12.5 	Rivers control area, a joint powers entity, 
12.6 	to predesign, design, construct, and equip 
12.7 	the reservoir reclamation and enhancement 
12.8 	of the 66-acre Lake Redwood Reservoir, to 
12.9 	remove approximately 650,000 cubic yards 
12.10 	of sediment and increase its depth from 
12.11 	approximately 2.8 feet to approximately 20 
12.12 	feet in order to secure renewable energy 
12.13 	capacity of the hydroelectric dam which is 
12.14 	impeded by lack of water capacity, reduce 
12.15 	the flow of pollutants  to the Minnesota 
12.16 	River, and increase fish habitat and enhance 
12.17 	recreational opportunities. 

12.18
12.19	Sec. 8. BOARD OF WATER AND SOIL 
RESOURCES

12.20	Subdivision 1.Total Appropriation
 			$
	7,000,000
	
12.21 	To the Board of Water and Soil Resources 
12.22 	for the purposes specified in this section.

12.23
12.24	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				6,000,000
	
12.25 	(a) To acquire conservation easements from 
12.26 	landowners to preserve, restore, create, and 
12.27 	enhance wetlands and associated uplands 
12.28 	of prairie and grasslands, and restore and 
12.29 	enhance rivers and streams, riparian lands, 
12.30 	and associated uplands of prairie and 
12.31 	grasslands in order to protect soil and water 
12.32 	quality, support fish and wildlife habitat, 
12.33 	reduce flood damage, and provide other 
12.34 	public benefits. The provisions of Minnesota 
13.1 	Statutes, section 103F.515, apply to this 
13.2 	program.
13.3 	(b) The board shall give priority to leveraging 
13.4 	federal money by enrolling targeted new 
13.5 	lands or enrolling environmentally sensitive 
13.6 	lands that have expiring federal conservation 
13.7 	agreements.
13.8 	(c) The board is authorized to enter into 
13.9 	new agreements and amend past agreements 
13.10 	with landowners as required by Minnesota 
13.11 	Statutes, section 103F.515, subdivision 5, to 
13.12 	allow for restoration. Of this appropriation, 
13.13 	up to five percent may be used for restoration 
13.14 	and enhancement.

13.15
13.16	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				1,000,000
	
13.17 	To acquire land or permanent easements 
13.18 	and to restore, create, enhance, and preserve 
13.19 	wetlands to replace those wetlands drained or 
13.20 	filled as a result of the repair, reconstruction, 
13.21 	replacement, or rehabilitation of existing 
13.22 	public roads as required by Minnesota 
13.23 	Statutes, section 103G.222, subdivision 1, 
13.24 	paragraphs (l) and (m). The board may vary 
13.25 	the priority order of Minnesota Statutes, 
13.26 	section 103G.222, subdivision 3, paragraph 
13.27 	(a), to implement an in-lieu fee agreement 
13.28 	approved by the U.S. Army Corps of 
13.29 	Engineers under section 404 of the Clean 
13.30 	Water Act. The purchase price paid for 
13.31 	acquisition of land or perpetual easement 
13.32 	must be a fair market value as determined 
13.33 	by the board. The board may enter into 
13.34 	agreements with the federal government, 
13.35 	other state agencies, political subdivisions, 
13.36 	nonprofit organizations, fee title owners, or 
14.1 	other qualified private entities to acquire 
14.2 	wetland replacement credits in accordance 
14.3 	with Minnesota Rules, chapter 8420.

14.4	Sec. 9. RURAL FINANCE AUTHORITY
 			$
	35,000,000
	
14.5 	For the purposes set forth in the Minnesota 
14.6 	Constitution, article XI, section 5, paragraph 
14.7 	(h), to the Rural Finance Authority to 
14.8 	purchase participation interests in or to 
14.9 	make direct agricultural loans to farmers 
14.10 	under Minnesota Statutes, chapter 41B. This 
14.11 	appropriation is from the bond proceeds 
14.12 	account in the rural finance administration 
14.13 	fund and is for the beginning farmer program 
14.14 	under Minnesota Statutes, section 41B.039; 
14.15 	the loan restructuring program under 
14.16 	Minnesota Statutes, section 41B.04; the 
14.17 	seller-sponsored program under Minnesota 
14.18 	Statutes, section 41B.042; the agricultural 
14.19 	improvement loan program under Minnesota 
14.20 	Statutes, section 41B.043; and the livestock 
14.21 	expansion loan program under Minnesota 
14.22 	Statutes, section 41B.045. All debt service 
14.23 	on bond proceeds used to finance this 
14.24 	appropriation must be repaid by the Rural 
14.25 	Finance Authority under Minnesota Statutes, 
14.26 	section 16A.643. Loan participations 
14.27 	must be priced to provide full interest 
14.28 	and principal coverage and a reserve for 
14.29 	potential losses. Priority for loans must be 
14.30 	given first to basic beginning farmer loans, 
14.31 	second to seller-sponsored loans, and third to 
14.32 	agricultural improvement loans.

14.33
14.34	Sec. 10. MINNESOTA ZOOLOGICAL 
GARDEN

14.35	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
15.1 	To the Minnesota Zoological Garden Board 
15.2 	for the purposes specified in this section.

15.3	Subd. 2.Asset Preservation
 				4,000,000
	
15.4 	For capital asset preservation improvements 
15.5 	and betterments to infrastructure and 
15.6 	exhibits at the Minnesota Zoo, to be spent in 
15.7 	accordance with Minnesota Statutes, section 
15.8 	16B.307. Notwithstanding the specified 
15.9 	uses of money under Minnesota Statutes, 
15.10 	section 16B.307, the board may use this 
15.11 	appropriation to replace buildings that are 
15.12 	poor in condition, outdated, and no longer 
15.13 	support the work of the Minnesota Zoo and 
15.14 	to construct and renovate trails and roads on 
15.15 	the Minnesota Zoo site.

15.16	Sec. 11. ADMINISTRATION

15.17	Subdivision 1.Total Appropriation
 			$
	9,850,000
	
15.18 	To the commissioner of administration for 
15.19 	the purposes specified in this section.

15.20	Subd. 2.Centennial Parking Ramp
 				7,000,000
	
15.21 	To complete design and for structural repairs 
15.22 	to the Centennial parking ramp, including 
15.23 	removal of the top deck green space to 
15.24 	provide additional parking capacity, repairing 
15.25 	damaged post-tension cables, and installation 
15.26 	of a deck surface protection coating.

15.27
15.28	Subd. 3.Capital Asset Preservation and 
Replacement Account
 				2,500,000
	
15.29 	To be spent in accordance with Minnesota 
15.30 	Statutes, section 16A.632.

15.31
15.32	Subd. 4.Capitol Complex Monuments and 
Memorials
 				350,000
	
16.1 	To design and complete critical repairs to the 
16.2 	Peace Officers and Roy Wilkins memorials 
16.3 	located on the Capitol complex.

16.4	Sec. 12. MN.IT
 			$
	$1,432,000
	
16.5 	To the commissioner of administration 
16.6 	to predesign, design, construct, renovate, 
16.7 	furnish, and equip existing state data 
16.8 	center facilities at the Bureau of Criminal 
16.9 	Apprehension's Maryland Avenue office 
16.10 	building and at the Department of Revenue's 
16.11 	Stassen Office Building for the purpose 
16.12 	of decommissioning and repurposing into 
16.13 	usable office space.

16.14	Sec. 13. MILITARY AFFAIRS 
 			$
	2,500,000
	
16.15 	To the adjutant general for asset preservation 
16.16 	improvements and betterments of a capital 
16.17 	nature at military affairs facilities statewide, 
16.18 	to be spent in accordance with Minnesota 
16.19 	Statutes, section 16B.307.

16.20	Sec. 14. PUBLIC SAFETY
 			$
	3,521,000
	
16.21 	To the commissioner of administration to 
16.22 	design and construct a joint emergency 
16.23 	railroad and pipeline emergency response 
16.24 	training facility at Camp Ripley, including 
16.25 	the construction of stations and capital 
16.26 	infrastructure needed for mock disaster 
16.27 	training.

16.28	Sec. 15. TRANSPORTATION

16.29	Subdivision 1.Total Appropriation
 			$	
334,782,000
	
16.30 	To the commissioner of transportation for the 
16.31 	purposes specified in this section.

17.1
17.2	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				90,000,000
	
17.3 	From the bond proceeds account in the state 
17.4 	transportation fund to match federal money 
17.5 	and to replace or rehabilitate local deficient 
17.6 	bridges as provided in Minnesota Statutes, 
17.7 	section 174.50.

17.8
17.9	Subd. 3.Local Road Improvement Fund 
Grants
 				137,200,000
	
17.10 	(a) From the bond proceeds account in 
17.11 	the state transportation fund as provided 
17.12 	in Minnesota Statutes, section 174.50, for 
17.13 	construction and reconstruction of local 
17.14 	roads with statewide or regional significance 
17.15 	under Minnesota Statutes, section 174.52, 
17.16 	subdivision 4, or for grants to counties to 
17.17 	assist in paying the costs of rural road safety 
17.18 	capital improvement projects on county 
17.19 	state-aid highways under Minnesota Statutes, 
17.20 	section 174.52, subdivision 4a.
17.21 	(b) This appropriation includes money 
17.22 	for a grant to the city of Baxter for 
17.23 	acquisition of land or interests in land, 
17.24 	environmental analysis and environmental 
17.25 	cleanup, predesign, design, engineering, and 
17.26 	construction of improvements to Cypress 
17.27 	Drive, including expansion to a four-lane 
17.28 	divided urban roadway, between Excelsior 
17.29 	Road and College Road.
17.30 	(c) Of this amount, $1,000,000 is for a grant 
17.31 	to the town of Appleton in Swift County 
17.32 	for upgrades to an existing township road 
17.33 	to provide for a paved, ten-ton capacity 
17.34 	township road extending between marked 
17.35 	Trunk Highways 7 and 119.
18.1 	(d) Of this amount, $25,000,000 is for a grant 
18.2 	to Hennepin County for design, right-of-way 
18.3 	acquisition, engineering, and construction 
18.4 	of public improvements related to the 
18.5 	Interstate Highway 35W and Lake Street 
18.6 	access project and related improvements 
18.7 	within the Interstate Highway 35W corridor. 
18.8 	This appropriation is not available until the 
18.9 	commissioner of management and budget 
18.10 	determines that an amount sufficient to 
18.11 	complete the project has been committed to 
18.12 	the project.
18.13 	(e) Of this amount, $20,500,000 is for a grant 
18.14 	to Ramsey County for preliminary and final 
18.15 	design, environmental documentation, and 
18.16 	construction of the interchange of marked 
18.17 	Interstate Highway 694 and Rice Street in 
18.18 	Ramsey County.
18.19 	(f) Of this amount, $700,000 is for a grant to 
18.20 	Redwood County for paving Nobles Avenue 
18.21 	as the main access road to a new State 
18.22 	Veterans Cemetery to be located in Paxton 
18.23 	Township.

18.24	Subd. 4.Rail Grade Separations
 				26,749,000
	
18.25 	(a) $14,762,000 is for a grant to the city 
18.26 	of Red Wing for environmental analysis, 
18.27 	design, engineering, removal of an existing 
18.28 	structure, and construction of a rail grade 
18.29 	crossing separation at Sturgeon Lake Road.
18.30 	(b) $11,987,000 is for a grant to Anoka 
18.31 	County for environmental analysis, design, 
18.32 	engineering, removal of an existing structure, 
18.33 	and construction of a rail grade crossing 
18.34 	separation at Anoka County State-Aid 
19.1 	Highway 78, known as Hanson Boulevard, 
19.2 	in Coon Rapids.

19.3	Subd. 5.Railroad Warning Devices 				
1,000,000
	
19.4 	To design, construct, and equip new rail 
19.5 	grade crossing warning safety devices at 
19.6 	active highway-rail grade crossings, or to 
19.7 	replace active highway-rail grade warning 
19.8 	safety devices that have reached the end of 
19.9 	their useful life.

19.10
19.11	Subd. 6.Minnesota Valley Regional Rail 
Authority
 				4,000,000
	
19.12 	For a grant to the Minnesota Valley Regional 
19.13 	Rail Authority for the rehabilitation of 
19.14 	a portion of the railroad track between 
19.15 	Winthrop and Hanley Falls. The grant 
19.16 	under this subdivision may also be used for 
19.17 	any required environmental documentation 
19.18 	and remediation, predesign, design, and 
19.19 	rehabilitation or replacement of bridges with 
19.20 	new bridges or culverts between Winthrop 
19.21 	and Hanley Falls. A grant under this section 
19.22 	is in addition to any grant, loan, or loan 
19.23 	guarantee for this project made by the 
19.24 	commissioner under Minnesota Statutes, 
19.25 	sections 222.46 to 222.62. This appropriation 
19.26 	is in addition to the appropriations in Laws 
19.27 	2006, chapter 258, section 16, subdivision 
19.28 	6; Laws 2008, chapter 179, section 16, 
19.29 	subdivision 5; Laws 2009, chapter 93, article 
19.30 	1, section 11, subdivision 4; Laws 2010, 
19.31 	chapter 189, section 15, subdivision 5; and 
19.32 	Laws 2015, First Special Session chapter 5, 
19.33 	article 1, section 10, subdivision 4.

19.34	Subd. 7.Hennepin County - U.S. Highway 12
 				15,000,000
	
20.1 	From the bond proceeds account in the 
20.2 	trunk highway fund for projects, including 
20.3 	preliminary and final design, engineering, 
20.4 	environmental analysis, right-of-way 
20.5 	acquisition, construction, and reconstruction 
20.6 	on marked U.S. Highway 12 as follows:
20.7 	(1) realignment at the intersections with 
20.8 	Hennepin County State-Aid Highway 92;
20.9 	(2) realignment and safety improvements 
20.10 	at the intersection with Hennepin County 
20.11 	State-Aid Highway 90; and
20.12 	(3) safety median improvements from the 
20.13 	interchange with Wayzata Boulevard in 
20.14 	Wayzata to approximately one-half mile east 
20.15 	of the interchange with Hennepin County 
20.16 	State-Aid Highway 6.

20.17
20.18	Subd. 8.Chaska - Trunk Highway 212 
Interchange
 				8,000,000
	
20.19 	From the bond proceeds account in the trunk 
20.20 	highway fund for right-of-way acquisition 
20.21 	and construction of an interchange at marked 
20.22 	Trunk Highway 212 and Carver County 
20.23 	Road 140 in the city of Chaska, to support 
20.24 	the development of approximately 400 
20.25 	acres of property in the city of Chaska's 
20.26 	comprehensive plan.

20.27
20.28	Subd. 9.Anoka County - I-35W Interchange 
in Columbus
 				13,000,000
	
20.29 	From the bond proceeds account in the 
20.30 	trunk highway fund for a grant to Anoka 
20.31 	County to: (1) complete the design, land 
20.32 	acquisition, engineering, and construction of 
20.33 	an interchange at the intersection of marked 
20.34 	Interstate Highway 35W, marked Trunk 
20.35 	Highway 97, and County State-Aid Highway 
21.1 	23, and (2) realign and make associated 
21.2 	improvements to County State-Aid Highway 
21.3 	54, known as West Freeway Drive, in the 
21.4 	city of Columbus. 

21.5
21.6	Subdivision 10.I-94/Brockton Lane 
Interchange
 				34,000,000
	
21.7 	From the bond proceeds account in the 
21.8 	trunk highway fund for the I-94/Brockton 
21.9 	Lane Interchange Project to construct an 
21.10 	interchange and auxiliary lanes on marked 
21.11 	Interstate Highway 94 east of the Hennepin 
21.12 	County State-Aid Highway 101 (Brockton 
21.13 	Lane) overpass in the city of Dayton.

21.14
21.15	Subd. 11.Trunk Highway Bonds - Debt Service 
2017
 				618,000
	
21.16 	From the trunk highway fund in fiscal year 
21.17 	2017 for transfer to the state bond fund. If 
21.18 	this appropriation is insufficient to make all 
21.19 	transfers required in the year for which it is 
21.20 	made, the commissioner of management and 
21.21 	budget shall transfer the deficiency amount 
21.22 	under the statutory open appropriation, 
21.23 	and notify the chairs and ranking minority 
21.24 	members of the legislative committees with 
21.25 	jurisdiction over transportation finance and 
21.26 	the chairs of the senate Committee on Finance 
21.27 	and the house of representatives Committee 
21.28 	on Ways and Means of the amount of the 
21.29 	deficiency. Any excess appropriation cancels 
21.30 	to the trunk highway fund.

21.31
21.32	Subd. 12.Red Wing - Highway 61 
Reconstruction
 				833,000
	
21.33 	From the trunk highway fund in fiscal 
21.34 	year 2017 for State Project No. 2514-122, 
21.35 	consisting of engineering and reconstruction 
21.36 	of the segment of marked U.S. Highway 
22.1 	61 in Red Wing from westerly of Old West 
22.2 	Main Street to easterly of Potter Street and 
22.3 	is for trunk highway costs in excess of the 
22.4 	engineer's estimate and associated program 
22.5 	delivery.

22.6	Subd. 13.Port Development Assistance
 				5,000,000
	
22.7 	For grants under Minnesota Statutes, chapter 
22.8 	457A. Any improvements made with the 
22.9 	proceeds of these grants must be publicly 
22.10 	owned.

22.11	Sec. 16. METROPOLITAN COUNCIL

22.12	Subdivision 1.Total Appropriation
 			$	
23,350,000
	
22.13 	To the Metropolitan Council for the purposes 
22.14 	specified in this section.

22.15	Subd. 2.Metro Orange Line BRT
 				12,100,000
	
22.16 	Up to $12,100,000, but an amount that is no 
22.17 	more than ten percent of the total project 
22.18 	cost, is for the Metropolitan Council, or for 
22.19 	the Metropolitan Council to make grants to 
22.20 	political subdivisions, to construct capital 
22.21 	improvements along the I-35W corridor for 
22.22 	completion of the Metro Orange Bus Rapid 
22.23 	Transit (BRT) Line. 
22.24 	The Metro Orange BRT Line must not follow 
22.25 	a route that requires an underpass or tunnel 
22.26 	to be built under I-494 at Knox Avenue, but 
22.27 	must follow the Penn Avenue route after 
22.28 	coming down into the circle on the bottom of 
22.29 	Knox Avenue on the north side of I-494.

22.30	Subd. 3.Mall of America Station
 				8,750,000 
	
22.31 	For design and construction of improvements 
22.32 	to the Mall of America Station on the 
22.33 	Hiawatha Corridor light rail transit line, 
23.1 	subject to Minnesota Statutes, section 
23.2 	16A.695. The Metropolitan Council must 
23.3 	consult with the city of Bloomington 
23.4 	throughout the design and construction 
23.5 	process.

23.6
23.7	Subd. 4.Metropolitan Cities Inflow and 
Infiltration Grants
 				2,500,000
	
23.8 	For grants to cities within the metropolitan 
23.9 	area, as defined in Minnesota Statutes, 
23.10 	section 473.121, subdivision 2, for capital 
23.11 	improvements in municipal wastewater 
23.12 	collection systems to reduce the amount of 
23.13 	inflow and infiltration to the Metropolitan 
23.14 	Council's metropolitan sanitary sewer 
23.15 	disposal system. Grants from this 
23.16 	appropriation are for up to 50 percent of the 
23.17 	cost to mitigate inflow and infiltration in 
23.18 	the publicly owned municipal wastewater 
23.19 	collection systems. To be eligible for a grant, 
23.20 	a city must be identified by the council 
23.21 	as a contributor of excessive inflow and 
23.22 	infiltration in the metropolitan disposal 
23.23 	system or have a measured flow rate within 20 
23.24 	percent of its allowable council-determined 
23.25 	inflow and infiltration limits. The council 
23.26 	must award grants based on applications 
23.27 	from cities that identify eligible capital 
23.28 	costs and include a timeline for inflow and 
23.29 	infiltration mitigation construction, pursuant 
23.30 	to guidelines established by the council.

23.31	Sec. 17. HUMAN SERVICES

23.32	Subdivision 1.Total Appropriation
 			$
	70,071,000
	
23.33 	To the commissioner of administration, or 
23.34 	another named agency, for the purposes 
23.35 	specified in this section.

24.1
24.2	Subd. 2.Minnesota Security Hospital - St. 
Peter
 				57,611,000
	
24.3 	To complete design, remodel, construct, 
24.4 	furnish, and equip the second phase of the 
24.5 	two-phase project to remodel existing and to 
24.6 	develop new residential, program, activity, 
24.7 	and ancillary facilities for the Minnesota 
24.8 	Security Hospital on the upper campus of the 
24.9 	St. Peter Regional Treatment Center. This 
24.10 	does not include construction of a new 48-bed 
24.11 	transitional housing unit. This appropriation 
24.12 	includes money to: demolish, renovate, and 
24.13 	remodel existing space; construct new space; 
24.14 	address fire and life safety, and other building 
24.15 	code deficiencies; replace or renovate 
24.16 	interior finishes; purchase furnishings, 
24.17 	fixtures, and equipment; replace or renovate 
24.18 	the Minnesota Security Hospital building's 
24.19 	HVAC, plumbing, electrical, security, and life 
24.20 	safety systems; tuck-point; replace windows 
24.21 	and doors; design and abate asbestos and 
24.22 	hazardous materials; and complete site work 
24.23 	necessary to support the programmed use 
24.24 	of the facilities on the St. Peter Regional 
24.25 	Treatment Center upper campus. 

24.26
24.27	Subd. 3.Child and Adolescent Behavioral 
Health Services
 				7,530,000
	
24.28 	To purchase land in or near the city of 
24.29 	Willmar for, and to predesign, design, 
24.30 	construct, furnish, and equip, a 16-bed 
24.31 	psychiatric hospital facility of approximately 
24.32 	17,500 to 18,000 square feet that will house 
24.33 	the Child and Adolescent Behavioral Health 
24.34 	Services (CABHS) program. The facility 
24.35 	shall include space for single bedrooms, 
24.36 	bathing and toilets, dining, living, group and 
25.1 	treatment rooms, education space, visitation, 
25.2 	clinic/professional staff, operations staff, 
25.3 	patient storage, operations storage, food 
25.4 	preparation, HVAC/telecommunications/data 
25.5 	equipment, a small area for indoor recreation, 
25.6 	and a secure outdoor activity space. The 
25.7 	property for the facility will provide for staff 
25.8 	and visitor parking, outdoor activities, and 
25.9 	appropriate side, front, and rear setbacks.

25.10
25.11	Subd. 4.Anoka Metro Regional Treatment 
Center Safety and Security Renovations
 				2,250,000
	
25.12 	To provide security upgrades of a capital 
25.13 	nature at the Anoka Metro Regional 
25.14 	Treatment Center campus, including but 
25.15 	not limited to control centers, electronic 
25.16 	monitoring and perimeter security 
25.17 	equipment, new or updated security fencing, 
25.18 	and other building security renovations. This 
25.19 	appropriation includes money for: predesign, 
25.20 	design, furnishing, fixtures, and equipment; 
25.21 	construction of safety and security 
25.22 	improvements to courtyards on residential 
25.23 	treatment units; securely enclosing the 
25.24 	nursing station on Unit G; and installing a 
25.25 	campus-wide closed-circuit television video 
25.26 	security system, a facility-wide personal 
25.27 	duress alarm system, a key control system, 
25.28 	and an electronic access control system.

25.29	Subd. 5.Regional Medical Examiner's Facility
 				2,680,000
	
25.30 	For a grant to Hennepin County to design an 
25.31 	approximately 67,000 square foot regional, 
25.32 	state-of-the-art medical examiner's facility. 
25.33 	The facility shall: (1) provide forensic 
25.34 	death investigation and autopsy services 
25.35 	for Dakota, Hennepin, and Scott Counties 
26.1 	with the flexibility to accommodate future 
26.2 	partner counties and agencies; (2) serve as a 
26.3 	teaching facility for the state, on the science 
26.4 	of forensic pathology; and (3) be located in 
26.5 	the city of Bloomington as a site that best 
26.6 	supports access needs for the three founding 
26.7 	counties and reasonable scene response times 
26.8 	for the geographic service area.

26.9	Sec. 18. VETERANS AFFAIRS
 			$
	4,000,000
	
26.10 	To the commissioner of administration 
26.11 	for asset preservation improvements and 
26.12 	betterments of a capital nature at the veterans 
26.13 	homes in Minneapolis, Hastings, Fergus 
26.14 	Falls, Silver Bay, and Luverne, to be spent in 
26.15 	accordance with Minnesota Statutes, section 
26.16 	16B.307.

26.17	Sec. 19. CORRECTIONS

26.18	Subdivision 1.Total Appropriation
 			$
	28,900,000
	
26.19 	To the commissioner of administration for 
26.20 	the purposes specified in this section.

26.21	Subd. 2.Asset Preservation
 				8,000,000
	
26.22 	For asset preservation improvements and 
26.23 	betterments of a capital nature at Minnesota 
26.24 	correctional facilities statewide, to be spent 
26.25 	in accordance with Minnesota Statutes, 
26.26 	section 16B.307.

26.27
26.28	Subd. 3.Minnesota Correctional Facility - St. 
Cloud
 				19,000,000
	
26.29 	To construct and equip a new intake unit and 
26.30 	a loading dock with a secure connection to 
26.31 	a new central warehouse at the Minnesota 
26.32 	Correctional Facility â€“ St. Cloud.

27.1
27.2	Subd. 4.Minnesota Correctional Facility - 
Moose Lake
 				1,900,000
	
27.3 	To expand and renovate the outdated master 
27.4 	control center to improve security and 
27.5 	efficiency at the Minnesota Correctional 
27.6 	Facility - Moose Lake. The renovation 
27.7 	includes updating fire alarm panels and 
27.8 	mechanical and electrical systems and 
27.9 	improving visibility of the visiting area.

27.10	Subd. 5.Unspent Appropriations
 					
27.11 	The unspent portion of an appropriation for 
27.12 	a Department of Corrections project in this 
27.13 	section that is complete, upon written notice 
27.14 	to the commissioner of management and 
27.15 	budget, is available for asset preservation 
27.16 	under Minnesota Statutes, section 16B.307. 
27.17 	Minnesota Statutes, section 16A.642, applies 
27.18 	from the date of the original appropriation to 
27.19 	the unspent amount transferred.

27.20
27.21	Sec. 20. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

27.22	Subdivision 1.Total Appropriation
 			$
	58,541,000
	
27.23 	To the commissioner of employment and 
27.24 	economic development for the purposes 
27.25 	specified in this section.

27.26
27.27	Subd. 2.Transportation Economic 
Development 
 				6,000,000
	
27.28 	For grants under Minnesota Statutes, section 
27.29 	116J.436.

27.30
27.31	Subd. 3.Greater Minnesota Business 
Development Public Infrastructure Grants
 				10,000,000
	
27.32 	For grants under Minnesota Statutes, section 
27.33 	116J.431.

28.128.2	Subd. 4.Innovative Business Development 
Public Infrastructure Grants  				
2,000,000
	
28.3 	For grants under Minnesota Statutes, section 
28.4 	116J.435.

28.5	Subd. 5.Duluth - Steam Plant
 				21,000,000
	
28.6 	For a grant to the city of Duluth to 
28.7 	complete the design of and to renovate, 
28.8 	construct, furnish, and equip an upgrade 
28.9 	to the municipal district heating facility 
28.10 	and systems, including conversion of the 
28.11 	distribution system along Superior Street 
28.12 	from steam, with no condensate return, to 
28.13 	closed-loop hot water, subject to Minnesota 
28.14 	Statutes, section 16A.695. This appropriation 
28.15 	is not available until the commissioner of 
28.16 	management and budget determines that an 
28.17 	amount sufficient to complete the project is 
28.18 	committed from nonstate sources.

28.19
28.20	Subd. 6.Litchfield - Phase 2 Power Generation 
Improvements
 				3,000,000
	
28.21 	For a grant to the city of Litchfield to 
28.22 	design and construct electrical generation 
28.23 	improvements in the city of Litchfield 
28.24 	to expand the current standby capacity, 
28.25 	including replacement of two old generators. 
28.26 	This appropriation is not available until the 
28.27 	commissioner of management and budget 
28.28 	determines that at least an equal amount 
28.29 	is committed to the project from nonstate 
28.30 	sources.

28.31	Subd. 7.Madelia
 				98,000
	
28.32 	For a grant to the city of Madelia for repair 
28.33 	and replacement of a capital nature of public 
28.34 	infrastructure damaged by a fire in Madelia 
29.1 	in February 2016. This appropriation does 
29.2 	not require a nonstate contribution.

29.3	Subd. 8.St. James - Public Infrastructure
 				3,443,000
	
29.4 	For a grant to the city of St. James. Of 
29.5 	this amount, $2,193,000 is for engineering, 
29.6 	right-of-way acquisition, and reconstruction 
29.7 	of streets, sidewalks, storm water and 
29.8 	sanitary sewer, water mains, lighting, 
29.9 	utilities, and other capital improvements of 
29.10 	publicly owned infrastructure required for 
29.11 	the reconstruction of marked Trunk Highway 
29.12 	4 in the city of St. James, and $1,250,000 
29.13 	is to replace the storm sewer drain which 
29.14 	serves St. James Lake and the entire southern 
29.15 	section of the City of St. James.

29.16
29.17	Subd. 9.St. Paul - Science Museum of 
Minnesota Building Preservation
 				13,000,000
	
29.18 	For a grant to the city of St. Paul for 
29.19 	predesign, design, and construction work 
29.20 	to replace water-damaged elements of the 
29.21 	Science Museum of Minnesota's exterior 
29.22 	envelope and some resultant interior damage 
29.23 	caused by latent design and construction 
29.24 	defects, subject to Minnesota Statutes, section 
29.25 	16A.695. This appropriation is not available 
29.26 	until the commissioner of management and 
29.27 	budget determines that an equal amount has 
29.28 	been committed to the project from nonstate 
29.29 	sources. Capital costs paid by the Science 
29.30 	Museum of Minnesota since January 1, 2014, 
29.31 	relating to the water intrusion damage, shall 
29.32 	count towards the match requirement.

29.33	Sec. 21. PUBLIC FACILITIES AUTHORITY

29.34	Subdivision 1.Total Appropriation
 			$
	150,300,000
	
30.1 	To the Public Facilities Authority for the 
30.2 	purposes specified in this section.

30.3	Subd. 2.State Match for Federal Grants
 				17,000,000
	
30.4 	To match federal grants for the clean water 
30.5 	revolving fund under Minnesota Statutes, 
30.6 	section 446A.07, and the drinking water 
30.7 	revolving fund under Minnesota Statutes, 
30.8 	section 446A.081. This appropriation must 
30.9 	be used for qualified capital projects.

30.10
30.11	Subd. 3.Water Infrastructure Funding 
Program
 				70,000,000
	
30.12 	(a) For grants to eligible municipalities under 
30.13 	the water infrastructure funding program 
30.14 	under Minnesota Statutes, section 446A.072.
30.15 	(b) $51,500,000 is for wastewater projects 
30.16 	listed on the Pollution Control Agency's 
30.17 	project priority list in the fundable range 
30.18 	under the clean water revolving fund 
30.19 	program.
30.20 	(c) $18,500,000 is for drinking water projects 
30.21 	listed on the commissioner of health's project 
30.22 	priority list in the fundable range under the 
30.23 	drinking water revolving fund program.
30.24 	(d) After all eligible projects under 
30.25 	paragraph (b) or (c) have been funded, the 
30.26 	Public Facilities Authority may transfer 
30.27 	any remaining, uncommitted money to 
30.28 	eligible projects under a program defined in 
30.29 	paragraph (b) or (c) based on that program's 
30.30 	project priority list.

30.31
30.32	Subd. 4.Point Source Implementation Grants 
Program
 				46,500,000
	
30.33 	For grants to eligible municipalities under the 
30.34 	point source implementation grants program 
30.35 	under Minnesota Statutes, section 446A.073. 
31.1 	This appropriation must be used for qualified 
31.2 	capital projects.

31.3
31.4	Subd. 5.Lewis and Clark Regional Water 
System
 				11,500,000
	
31.5 	This appropriation is from the general fund in 
31.6 	fiscal year 2017 for a grant to the Lewis and 
31.7 	Clark Joint Powers Board to acquire land, 
31.8 	design, engineer, and construct facilities 
31.9 	and infrastructure necessary to complete 
31.10 	Phase 3 of the Lewis and Clark Regional 
31.11 	Water System project, including extension 
31.12 	of the project from the Lincoln-Pipestone 
31.13 	Rural Water System connection near 
31.14 	Adrian to Worthington, construction of a 
31.15 	reservoir in Nobles County and a meter 
31.16 	building in Worthington, and acquiring and 
31.17 	installing a supervisory control and data 
31.18 	acquisition (SCADA) system. This is a 
31.19 	onetime appropriation and is not available 
31.20 	until the commissioner of management and 
31.21 	budget determines that at least $9,000,000 
31.22 	is committed to the Phase 3 of the project 
31.23 	from nonstate sources. This appropriation 
31.24 	is available until the project is completed or 
31.25 	abandoned, subject to Minnesota Statutes, 
31.26 	section 16A.642.

31.27	Subd. 6.East Grand Forks
 				5,300,000
	
31.28 	For a grant to the city of East Grand 
31.29 	Forks to design and construct wastewater 
31.30 	infrastructure improvements interconnecting 
31.31 	the wastewater system of East Grand Forks 
31.32 	to the wastewater treatment system in Grand 
31.33 	Forks, North Dakota. This appropriation 
31.34 	may not be used for improvements outside 
31.35 	the state. This appropriation is in addition 
32.1 	to grants under Minnesota Statutes, section 
32.2 	446A.072. A nonstate match is not required.

32.3
32.4	Sec. 22. MINNESOTA HISTORICAL 
SOCIETY
 			$
	2,500,000
	
32.5 	To the Minnesota Historical Society for 
32.6 	capital improvements and betterments at 
32.7 	state historic sites, buildings, landscaping 
32.8 	at historic buildings, exhibits, markers, and 
32.9 	monuments, to be spent in accordance with 
32.10 	Minnesota Statutes, section 16B.307. The 
32.11 	society shall determine project priorities as 
32.12 	appropriate based on need.

32.13	Sec. 23. BOND SALE EXPENSES

32.14	Subdivision 1.Total Appropriation
 			$
	935,000
	
32.15 	To the commissioner of management and 
32.16 	budget for the purposes specified in this 
32.17 	section.

32.18	Subd. 2.Bond Proceeds Fund
 				865,000
	
32.19 	From the bond proceeds fund for bond sale 
32.20 	expenses under Minnesota Statutes, section 
32.21 	16A.641, subdivision 8.

32.22	Subd. 3.Trunk Highway Fund
 				70,000
	
32.23 	From the bond proceeds account in the 
32.24 	trunk highway fund for bond sale expenses 
32.25 	under Minnesota Statutes, sections 16A.641, 
32.26 	subdivision 8, and 167.50, subdivision 4.

32.27 	Sec. 24. BOND SALE AUTHORIZATIONS.
 32.28 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
32.29 	from the bond proceeds fund, the commissioner of management and budget shall sell and 
32.30 	issue bonds of the state in an amount up to $623,514,000 in the manner, upon the terms, 
32.31 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 
32.32 	by the Minnesota Constitution, article XI, sections 4 to 7.
33.1 		Subd. 2.Transportation fund. To provide the money appropriated in this act 
33.2 	from the bond proceeds account in the state transportation fund, the commissioner 
33.3 	of management and budget shall sell and issue bonds of the state in an amount up to 
33.4 	$227,200,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 
33.5 	Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, 
33.6 	sections 4 to 7.
33.7 		Subd. 3.Maximum effort school loan fund. To provide the money appropriated 
33.8 	in this act from the maximum effort school loan fund, the commissioner of management 
33.9 	and budget shall sell and issue bonds of the state in an amount up to $14,070,000 in the 
33.10 	manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 
33.11 	16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.
33.12 		Subd. 4.Trunk highway bonds. To provide the money appropriated in subdivision 
33.13 	1 from the bond proceeds account in the trunk highway fund, the commissioner of 
33.14 	management and budget shall sell and issue bonds of the state in an amount up to 
33.15 	$70,070,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 
33.16 	Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 
33.17 	11, at the times and in the amounts requested by the commissioner of transportation. The 
33.18 	proceeds of the bonds, except accrued interest and any premium received from the sale of 
33.19 	the bonds, must be deposited in the bond proceeds account in the trunk highway fund.

33.20 	Sec. 25. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 33.21 	(a) The bond sale authorization in Laws 1990, chapter 610, article 1, section 30, 
33.22 	subdivision 1, as amended, is reduced by $3,129.
33.23 	(b) The bond sale authorization in Laws 1994, chapter 643, section 31, subdivision 
33.24 	1, as amended, is reduced by $24,480.
33.25 	(c) The bond sale authorization in Laws 1997, Second Special Session chapter 2, 
33.26 	section 12, as amended, is reduced by $96,992.
33.27 	(d) The bond sale authorization in Laws 1999, chapter 240, article 1, section 13, 
33.28 	subdivision 1, as amended, is reduced by $212,472.
33.29 	(e) The bond sale authorization in Laws 2000, chapter 492, article 1, section 26, 
33.30 	subdivision 1, as amended, is reduced by $7,933,538.
33.31 	(f) The bond sale authorization in Laws 2002, chapter 393, section 30, subdivision 
33.32 	1, as amended, is reduced by $188,471.
33.33 	(g) The bond sale authorization in Laws 2002, First Special Session chapter 1, 
33.34 	section 9, subdivision 1, s reduced by $217,959.
34.1 	(h) The bond sale authorization in Laws 2003, First Special Session chapter 19, 
34.2 	article 3, section 2, is reduced by $201,530.
34.3 	(i) The bond sale authorization in Laws 2003, First Special Session chapter 19, 
34.4 	article 4, section 4, is reduced by $326,534.
34.5 	(j) The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 
34.6 	subdivision 1, as amended, is reduced by $3,366,628.
34.7 	(k) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012, 
34.8 	First Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner 
34.9 	of public safety for disaster relief, is canceled and the bond sale authorization in Laws 
34.10 	2012, First Special Session chapter 1, article 1, section 16, subdivision 1, is reduced 
34.11 	by the same amount.
34.12 	(l) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
34.13 	Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster 
34.14 	relief, is canceled and the bond sale authorization in Laws 2012, First Special Session 
34.15 	chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
34.16 	(m) $2,335,000 of the appropriation from the bond proceeds fund in Laws 2012, 
34.17 	First Special Session chapter 1, article 1, section 9, subdivision 2, to the commissioner of 
34.18 	natural resources for disaster relief, is canceled, and the bond sale authorization in Laws 
34.19 	2012, First Special Session chapter 1, article 1, section 16, subdivision 1, is reduced 
34.20 	by the same amount.

34.21 	Sec. 26. Laws 2015, First Special Session chapter 5, article 1, section 19, is amended 
34.22 	to read:
34.23 	Sec. 19. BOND SALE SCHEDULE.
 34.24 	The commissioner of management and budget shall schedule the sale of state 
34.25 	general obligation bonds so that, during the biennium ending June 30, 2017, no more 
34.26 	than $1,267,459,000$1,239,580,000 will need to be transferred from the general fund to 
34.27 	the state bond fund to pay principal and interest due and to become due on outstanding 
34.28 	state general obligation bonds. During the biennium, before each sale of state general 
34.29 	obligation bonds, the commissioner of management and budget shall calculate the amount 
34.30 	of debt service payments needed on bonds previously issued and shall estimate the amount 
34.31 	of debt service payments that will be needed on the bonds scheduled to be sold. The 
34.32 	commissioner shall adjust the amount of bonds scheduled to be sold so as to remain within 
34.33 	the limit set by this section. The amount needed to make the debt service payments is 
34.34 	appropriated from the general fund as provided in Minnesota Statutes, section 16A.641.

35.1 	Sec. 27. APPROPRIATIONS GIVEN EFFECT ONLY ONCE.
 35.2 	Except for appropriations for ......., if an appropriation in this act is enacted more 
35.3 	than once in the 2016 legislative session for the same purpose, the appropriation must 
35.4 	be given effect only once. If the appropriations for the same purpose are for different 
35.5 	amounts, the lowest of the amounts is to be given effect.

35.6 	Sec. 28. EFFECTIVE DATE.
 35.7 	Except as otherwise provided, this article is effective the day following final 
35.8 	enactment.

35.9 	ARTICLE 2
35.10 	MISCELLANEOUS

35.11 	Section 1. Minnesota Statutes 2015 Supplement, section 16A.967, subdivision 2, 
35.12 	is amended to read:
35.13 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations 
35.14 	of this subdivision, the commissioner may sell and issue appropriation bonds of the state 
35.15 	under this section for public purposes as provided by law, including, in particular, the 
35.16 	financing of the land acquisition, design, engineering, and construction of facilities and 
35.17 	infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water 
35.18 	System project, including completion of the pipeline to Magnolia, extension of the project 
35.19 	to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, 
35.20 	design, and easement acquisition for the final phase of the project to Worthington. No 
35.21 	bonds shall be sold until the commissioner determines that a nonstate match of at least 
35.22 	$9,000,000 is committed to this project phase. Grant agreements entered into under this 
35.23 	section must provide for reimbursement to the state from any federal money provided for 
35.24 	the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.
35.25 	(b) The appropriation bonds may be issued and sold only after the commissioner 
35.26 	determines that the construction and administration for work done on the project will 
35.27 	comply with (1) all federal requirements and regulations associated with the Lewis and 
35.28 	Clark Rural Water System Act of 2000, and (2) the cooperative agreement between the 
35.29 	United States Department of the Interior and the Lewis and Clark Regional Water System, 
35.30 	Inc. Proceeds of the appropriation bonds must be credited to a special appropriation Lewis 
35.31 	and Clark bond proceeds fund in the state treasury. All income from investment of the 
35.32 	bond proceeds, as estimated by the commissioner, is appropriated to the commissioner for 
35.33 	the payment of principal and interest on the appropriation bonds.
36.1 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
36.2 	commissioner, are necessary to provide sufficient money to the Public Facilities Authority 
36.3 	under subdivision 7, not to exceed $19,000,000 net of costs of issuance, for the purposes as 
36.4 	provided under this paragraph (a), and pay debt service including capitalized interest, costs 
36.5 	of issuance, costs of credit enhancement, or make payments under other agreements entered 
36.6 	into under paragraph (e). The bonds authorized by this paragraph are for the purposes 
36.7 	of financing the land acquisition, design, engineering, and construction of facilities and 
36.8 	infrastructure necessary to complete Phase 2 of the Lewis and Clark Regional Water 
36.9 	System project, including completion of the pipeline to Magnolia; extension of the project 
36.10 	to the Lincoln-Pipestone Rural Water System connection near Adrian; and engineering, 
36.11 	design, and easement acquisition for the final phase of the project to Worthington. No 
36.12 	bonds shall be sold under this subdivision until the commissioner determines that a 
36.13 	nonstate match of at least $9,000,000 is committed to this project phase. Upon completion 
36.14 	of Phase 2, the unspent, unencumbered portion of the appropriation in this subdivision 
36.15 	is available for the purposes of Phase 3, which includes extension of the project from 
36.16 	the Lincoln-Pipestone Rural Water System connection near Adrian to Worthington, 
36.17 	construction of a reservoir in Nobles County and a meter building in Worthington, and 
36.18 	acquiring and installing a supervisory control and data acquisition (SCADA) system.
36.19 	(d) Appropriation bonds may be issued in one or more issues or series on the terms and 
36.20 	conditions the commissioner determines to be in the best interests of the state, but the term 
36.21 	on any series of appropriation bonds may not exceed 25 years. The appropriation bonds of 
36.22 	each issue and series thereof shall be dated and bear interest, and may be includable in or 
36.23 	excludable from the gross income of the owners for federal income tax purposes.
36.24 	(e) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
36.25 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 
36.26 	enter into agreements and ancillary arrangements relating to the appropriation bonds, 
36.27 	including but not limited to trust indentures, grant agreements, lease or use agreements, 
36.28 	operating agreements, management agreements, liquidity facilities, remarketing or 
36.29 	dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 
36.30 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
36.31 	payments made or received according to the agreement or ancillary arrangement shall be 
36.32 	made from or deposited as provided in the agreement or ancillary arrangement. The 
36.33 	determination of the commissioner included in an interest exchange agreement that the 
36.34 	agreement relates to an appropriation bond shall be conclusive.
36.35 	(f) The commissioner may enter into written agreements or contracts relating to the 
36.36 	continuing disclosure of information necessary to comply with or facilitate the issuance 
37.1 	of appropriation bonds in accordance with federal securities laws, rules, and regulations, 
37.2 	including Securities and Exchange Commission rules and regulations in Code of Federal 
37.3 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
37.4 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
37.5 	authorizing the issuance of the appropriation bonds, or a separate document authorized 
37.6 	by the order or resolution.
37.7 	(g) The appropriation bonds are not subject to chapter 16C.

37.8 	Sec. 2. Minnesota Statutes 2015 Supplement, section 16A.967, subdivision 7, is 
37.9 	amended to read:
37.10 		Subd. 7.Appropriation of proceeds. The proceeds of appropriation bonds issued 
37.11 	under this section and interest credited to the special appropriation Lewis and Clark bond 
37.12 	proceeds fund are appropriated to the commissioner:
37.13 	(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 
37.14 	Board for payment of capital expenses for the purposes provided by as specified in
37.15 	subdivision 2, paragraph (a),; and
37.16 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
37.17 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 
37.18 	payments under any agreements entered into under subdivision 2, paragraph (e), each as 
37.19 	permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise 
37.20 	provided for the public purposes provided by subdivision 2, paragraph (a).

37.21 	Sec. 3. Minnesota Statutes 2015 Supplement, section 85.015, subdivision 6, is 
37.22 	amended to read:
37.23 		Subd. 6.Minnesota Valley Trail, Hennepin, Dakota, Scott, Carver, Sibley and 
37.24 	Le Sueur Counties. (a) The trail shall originate at Fort Snelling State Park and thence 
37.25 	extend generally southwesterly along the Minnesota River Valley through Hennepin, 
37.26 	Dakota, Scott, Carver, Sibley, and Le Sueur Counties to the city of Le Sueur, and there 
37.27 	terminate. The trail shall include the following state waysides: (a) Rice Lake Wayside, 
37.28 	in Scott County; (b) Carver Rapids Wayside, in Scott County; (c) Lawrence wayside, in 
37.29 	Scott county; (d) Belle Plaine Wayside, in Carver, Scott, and Sibley Counties; (e) Blakeley 
37.30 	Wayside, in Scott County; and (f) Rush River Wayside, in Sibley County.
37.31 	(b) The trail shall be developed primarily for riding and hiking. Motorized vehicles 
37.32 	are prohibited from that portion of the trail on the north side of the Minnesota River, 
37.33 	lying between Fort Snelling State Park and Rice Lake Wayside. That portion of the 
37.34 	trail on the north side of the Minnesota River, lying between the Bloomington Ferry 
38.1 	Bridge pedestrian crossing and the Cedar Avenue Bridge, must be a paved trail developed 
38.2 	primarily for hiking and bicycling.
38.3 	(c) In establishing, developing, maintaining, and operating the trail the commissioner 
38.4 	shall cooperate with local units of government and private individuals and groups 
38.5 	whenever feasible.

38.6 	Sec. 4. Minnesota Statutes 2014, section 85.34, subdivision 1, is amended to read:
38.7 		Subdivision 1.Upper bluff; lease terms. The commissioner of natural resources 
38.8 	with the approval of the Executive Council may lease for purposes of restoration, 
38.9 	preservation, historical, recreational, educational, and commercial use and development, 
38.10 	that portion of Fort Snelling State Park known as the upper bluff consisting of officer's 
38.11 	row, area J, the polo grounds, the adjacent golf course, and all buildings and improvements 
38.12 	located thereon, all lying within an area bounded by Minneapolis-St. Paul International 
38.13 	Airport, Trunk Highways numbered 5 and 55, and Bloomington Road. The lease or leases 
38.14 	shall be in a form approved by the attorney general and for a term of not to exceed 99 
38.15 	years. The lease or leases may provide for the provision of capital improvements or other 
38.16 	performance by the tenant or tenants in lieu of all or some of the payments of rent that 
38.17 	would otherwise be required. Notwithstanding the continuing ownership of the upper bluff 
38.18 	by the state, any lease of one or more buildings improved with state general obligation 
38.19 	bond proceeds that exceeds 50 years shall be treated as a sale of the buildings for purposes 
38.20 	of section 16A.695, subdivision 3. Any disposition proceeds payable to the commissioner 
38.21 	upon execution of any lease relating to state bond financed buildings at the upper bluff 
38.22 	shall be applied in accordance with the requirements of section 16A.695, subdivision 3, 
38.23 	and used to pay, redeem, or defease state general obligation bonds issued for purposes of 
38.24 	improving those buildings. Any lease revenues paid to the commissioner subsequent to 
38.25 	the payment, redemption, or defeasance of state general obligation bonds shall be used 
38.26 	by the commissioner as further described in this section.

38.27 	Sec. 5. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
38.28 		Subdivision 1.Grant program established; purpose. (a) The commissioner shall 
38.29 	make grants to counties or cities to provide up to 50 percent of the capital costs of public 
38.30 	infrastructure necessary for an eligible economic development project. The county or city 
38.31 	receiving a grant must provide for the remainder of the costs of the project, either in cash 
38.32 	or in kind. In-kind contributions may include the value of site preparation other than the 
38.33 	public infrastructure needed for the project.
39.1 	(b) The purpose of the grants made under this section is to keep or enhance jobs in 
39.2 	the area, increase the tax base, or to expand or create new economic development.
39.3 	(c) In awarding grants under this section, the commissioner must adhere to the 
39.4 	criteria under subdivision 4.
39.5 	(d) If the commissioner awards a grant for less than 50 percent of the project, the 
39.6 	commissioner shall provide the applicant and the chairs and ranking minority members 
39.7 	of the senate and house of representatives committees with jurisdiction over economic 
39.8 	development finance a written explanation of the reason less than 50 percent of the capital 
39.9 	costs were awarded in the grant.

39.10 	Sec. 6. Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:
39.11 		Subd. 2.Eligible projects. An economic development project for which a county or 
39.12 	city may be eligible to receive a grant under this section includes:
39.13 	(1) manufacturing;
39.14 	(2) technology;
39.15 	(3) warehousing and distribution;
39.16 	(4) research and development;
39.17 	(5) agricultural processing, defined as transforming, packaging, sorting, or grading 
39.18 	livestock or livestock products into goods that are used for intermediate or final 
39.19 	consumption, including goods for nonfood use; or
39.20 	(6) industrial park development that would be used by any other business listed in 
39.21 	this subdivision even if no business has committed to locate in the industrial park at the 
39.22 	time the grant application is made.

39.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

39.24 	Sec. 7. Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:
39.25 		Subd. 4.Application. (a) The commissioner must develop forms and procedures 
39.26 	for soliciting and reviewing applications for grants under this section. At a minimum, a 
39.27 	county or city must include in its application a resolution of the county or city council 
39.28 	certifying that the required local match is available. The commissioner must evaluate 
39.29 	complete applications for eligible projects using the following criteria:
39.30 	(1) the project is an eligible project as defined under subdivision 2;
39.31 	(2) the project will is expected to result in or will attract substantial public and 
39.32 	private capital investment and provide substantial economic benefit to the county or city in 
39.33 	which the project would be located;
40.1 	(3) the project is not relocating substantially the same operation from another 
40.2 	location in the state, unless the commissioner determines the project cannot be reasonably 
40.3 	accommodated within the county or city in which the business is currently located, or the 
40.4 	business would otherwise relocate to another state; and
40.5 	(4) the project is expected to or will create or maintain retain full-time jobs.
40.6 	(b) The determination of whether to make a grant for a site is within the discretion of 
40.7 	the commissioner, subject to this section. The commissioner's decisions and application of 
40.8 	the priorities criteria are not subject to judicial review, except for abuse of discretion.

40.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.10 	Sec. 8. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
40.11 		Subd. 6.Maximum grant amount. A county or city may receive no more than 
40.12 	$1,000,000 $2,000,000 in two years for one or more projects.

40.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

40.14 	Sec. 9. Minnesota Statutes 2014, section 174.50, subdivision 7, is amended to read:
40.15 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of 
40.16 	transportation shall develop rules, procedures for application for grants, conditions of 
40.17 	grant administration, standards, and criteria as provided under subdivision 6, including 
40.18 	bridge specifications, in cooperation with road authorities of political subdivisions, for use 
40.19 	in the administration of funds appropriated to the commissioner and for the administration 
40.20 	of grants to subdivisions.
40.21 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size 
40.22 	of the existing bridge, a bridge or replacement bridge is eligible for assistance from the 
40.23 	state transportation fund if a hydrological survey indicates that the bridge or replacement 
40.24 	bridge must be ten feet or more in length.
40.25 	(c) As part of the standards or rules, the commissioner shall, in consultation with 
40.26 	local road authorities, establish a minimum distance between any two bridges that cross 
40.27 	over the same river, stream, or waterway, so that only one of the bridges is eligible for a 
40.28 	grant under this section. As appropriate, the commissioner may establish exceptions from 
40.29 	the minimum distance requirement or procedures for obtaining a variance.
40.30 	(d) Political subdivisions may use grants made under this section to construct or 
40.31 	reconstruct bridges, including but not limited to:
40.32 	(1) matching federal aid grants to construct or reconstruct key bridges;
41.1 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
41.2 	replacement but where no replacement will be made; and
41.3 	(3) paying the costs to construct a road or street to facilitate the abandonment of 
41.4 	an existing bridge if the commissioner determines that the bridge is deficient, and that 
41.5 	construction of the road or street is more economical than replacement of the existing 
41.6 	bridge.
41.7 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
41.8 	fund shall be segregated from the highway tax user distribution fund and other funds 
41.9 	created by article XIV of the Minnesota Constitution.
41.10 	(f) The maximum grant amount for a local bridge replacement or rehabilitation 
41.11 	project under this section is $5,000,000.

41.12 	Sec. 10. Minnesota Statutes 2014, section 446A.072, is amended to read:
41.13 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING 
41.14 	PROGRAM.
41.15 		Subdivision 1.Establishment of program. The authority will establish a 
41.16 	wastewater water infrastructure funding program to provide supplemental assistance to 
41.17 	governmental units receiving funding through the clean water revolving fund program, the 
41.18 	drinking water revolving fund program, or the United States Department of Agriculture 
41.19 	Rural Economic and Community Development's (USDA/RECD) Water and Waste 
41.20 	Disposal Loans and Grants program for the predesign, design, and construction of 
41.21 	municipal wastewater treatment and drinking water systems, including purchase of land 
41.22 	and easements. The purpose of the program is to assist governmental units demonstrating 
41.23 	financial need to build cost-effective projects to address existing environmental or public 
41.24 	health problems. To implement the program, the authority shall establish a wastewater 
41.25 	water infrastructure fund to provide grants and loans for the purposes authorized under 
41.26 	title VI of the Federal Water Pollution Control Act and the federal Safe Drinking Water 
41.27 	Act. The fund shall be credited with all investment income from the fund and all 
41.28 	repayments of loans, grants, and penalties.
41.29 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
41.30 	assistance, as provided in subdivision 5a to governmental units:
41.31 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
41.32 	the commissioner of health's project priority list;
41.33 	(2) that demonstrate their projects are a cost-effective solution to an existing 
41.34 	environmental or public health problem; and
42.1 	(3) whose projects are approved by the USDA/RECD or certified by the 
42.2 	commissioner of the Pollution Control Agency or the commissioner of health.
42.3 	(b) For a governmental unit receiving grant funding from the USDA/RECD, 
42.4 	applications must be made to the USDA/RECD with additional information submitted to 
42.5 	the authority as required by the authority. Eligible project costs and affordability criteria 
42.6 	shall be determined by the USDA/RECD.
42.7 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
42.8 	application must be made to the authority on forms prescribed by the authority for the 
42.9 	clean water revolving fund program or the drinking water revolving fund program with 
42.10 	additional information as required by the authority. In accordance with section 116.182, 
42.11 	the Pollution Control Agency or the commissioner of health shall:
42.12 	(1) calculate the essential project component percentage based on the portion of 
42.13 	project costs necessary to convey or treat the existing wastewater flows and loadings or, 
42.14 	for drinking water projects, to provide safe drinking water to meet existing needs, which 
42.15 	must be multiplied by the total project cost to determine the eligible project cost for the 
42.16 	program under this section; and
42.17 	(2) review and certify approved projects to the authority.
42.18 	(d) Each fiscal year the authority shall make funds available for projects based on 
42.19 	their ranking on the Pollution Control Agency's project priority list or the commissioner 
42.20 	of health's project priority list. The authority shall reserve funds for a project when 
42.21 	the applicant receives a funding commitment from the United States Department of 
42.22 	Agriculture Rural Development (USDA/RECD) or submits plans and specifications to
42.23 	the project is certified by the Pollution Control Agency or the commissioner of health. 
42.24 	Funds must be reserved in an amount based on the project cost estimate submitted to the 
42.25 	authority prior to the appropriation of the funds and awarded based on the lesser of that 
42.26 	amount or the as-bid cost when the project is certified or the as-bid cost, whichever is less.
42.27 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving 
42.28 	grant funding from the USDA/RECD, the authority may provide assistance in the form 
42.29 	of a grant of up to 65 percent of the eligible grant need determined by USDA/RECD. A 
42.30 	governmental unit may not receive a grant under this paragraph for more than $4,000,000 
42.31 	$5,000,000 per project or $15,000 $20,000 per existing connection, whichever is less, 
42.32 	unless specifically approved by law.
42.33 	(b) For a governmental unit receiving a loan from the clean water revolving fund 
42.34 	under section 446A.07, the authority may provide assistance under this section in the form 
42.35 	of a grant if the average annual residential wastewater system cost after completion of the 
42.36 	project would otherwise exceed 1.4 percent of the median household income of the project 
43.1 	service area. In determining whether the average annual residential wastewater system 
43.2 	cost would exceed 1.4 percent, the authority must consider the total costs associated with 
43.3 	building, operating, and maintaining the wastewater system, including existing wastewater 
43.4 	debt service, debt service on the eligible project cost, and operation and maintenance 
43.5 	costs. Debt service costs for the proposed project are calculated based on the maximum 
43.6 	loan term permitted for the clean water revolving fund loan under section 446A.07, 
43.7 	subdivision 7. The amount of the grant is equal to 80 percent of the amount needed to 
43.8 	reduce the average annual residential wastewater system cost to 1.4 percent of median 
43.9 	household income in the project service area, to a maximum of $4,000,000 $5,000,000 per 
43.10 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
43.11 	approved by law. The eligible project cost is determined by multiplying the total project 
43.12 	costs minus any other grants by the essential project component percentage calculated 
43.13 	under subdivision 3, paragraph (c), clause (1). In no case may the amount of the grant 
43.14 	exceed 80 percent of the eligible project cost.
43.15 	(c) For a governmental unit receiving a loan from the drinking water revolving 
43.16 	fund under section 446A.081, the authority may provide assistance under this section in 
43.17 	the form of a grant if the average annual residential drinking water system cost after 
43.18 	completion of the project would otherwise exceed 1.2 percent of the median household 
43.19 	income of the project service area. In determining whether the average annual residential 
43.20 	drinking water system cost would exceed 1.2 percent, the authority must consider the total 
43.21 	costs associated with building, operating, and maintaining the drinking water system, 
43.22 	including existing drinking water debt service, debt service on the eligible project cost, 
43.23 	and operation and maintenance costs. Debt service costs for the proposed project are 
43.24 	calculated based on the maximum loan term permitted for the drinking water revolving 
43.25 	fund loan under section 446A.081, subdivision 8, paragraph (c). The amount of the grant 
43.26 	is equal to 80 percent of the amount needed to reduce the average annual residential 
43.27 	drinking water system cost to 1.2 percent of median household income in the project 
43.28 	service area, to a maximum of $5,000,000 per project or $20,000 per existing connection, 
43.29 	whichever is less, unless specifically approved by law. The eligible project cost is 
43.30 	determined by multiplying the total project costs minus any other grants by the essential 
43.31 	project component percentage calculated under subdivision 3, paragraph (c), clause (1). In 
43.32 	no case may the amount of the grant exceed 80 percent of the eligible project cost.
43.33 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a 
43.34 	governmental unit receiving supplemental assistance under this section after January 1, 
43.35 	2002, if the authority determines that the governmental unit's construction and installation 
43.36 	costs are significantly increased due to geological conditions of crystalline bedrock or karst 
44.1 	areas and discharge limits that are more stringent than secondary treatment, the maximum 
44.2 	award under this section shall not be more than $25,000 per existing connection.
44.3 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan 
44.4 	under subdivision 5a that levies special assessments to repay the loan under subdivision 
44.5 	5a or section 446A.07 may defer payment of such assessments under the provisions of 
44.6 	sections 435.193 to 435.195.
44.7 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this 
44.8 	section by the authority to recipients must be made for eligible project costs as incurred by 
44.9 	the recipients, and must be made by the authority in accordance with the project financing 
44.10 	agreement and applicable state and federal laws and rules governing the payments.
44.11 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 
44.12 	475.54, subdivision 1, this subdivision shall govern the maturities and mandatory sinking 
44.13 	fund redemptions of the loans under this section. A governmental unit receiving a loan 
44.14 	under this section shall repay the loan in semiannual payment amounts determined by 
44.15 	the authority. The payment amount must be based on the average payments on the 
44.16 	governmental unit's clean water revolving fund loan or, if greater, the minimum amount 
44.17 	required to fully repay the loan by the maturity date. Payments must begin within one year 
44.18 	of the date of the governmental unit's final payment on the clean water revolving fund 
44.19 	loan. The final maturity date of the loan under this section must be no later than 20 years 
44.20 	from the date of the first payment on the loan under this section and no later than 40 years 
44.21 	from the date of the first payment on the clean water revolving fund loan.
44.22 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
44.23 	only after applying for grant funding from other sources and funding has been obtained, 
44.24 	rejected, or the authority has determined that the potential funding is unlikely.
44.25 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce 
44.26 	the sewer service charges of a significant wastewater contributor industrial user that has a 
44.27 	separate service charge agreement with the recipient, or a single user that has caused the 
44.28 	need for the project or whose current or projected flow and load exceed usage exceeds 
44.29 	one-half of the current wastewater treatment plant's or drinking water system capacity.
44.30 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the 
44.31 	authority, in conjunction with the Pollution Control Agency and the commissioner of 
44.32 	health, shall prepare a report to the Finance Division of the senate Environment and 
44.33 	Natural Resources Committee and the house of representatives Environment and Natural 
44.34 	Resources Finance Committee on wastewater and drinking water funding assistance needs 
44.35 	of governmental units under this section.
45.1 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or 
45.2 	grant under this section shall establish a system replacement fund and shall annually 
45.3 	deposit a minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, 
45.4 	or replacement of the treatment wastewater or drinking water system, or replacement of 
45.5 	the treatment system at the end of its useful life. Money must remain in the account for the 
45.6 	life of the corresponding project loan from the authority or USDA/RECD, unless use of 
45.7 	the fund is approved in writing by the authority for major rehabilitation, expansion, or 
45.8 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
45.9 	during the life of the loan, each recipient shall submit a report to the authority regarding 
45.10 	the amount deposited and the fund balance for the prior calendar year. A recipient is not 
45.11 	required to maintain a fund balance greater than the amount of the grant received. Failure 
45.12 	to comply with the requirements of this subdivision shall result in the authority assessing a 
45.13 	penalty fee to the recipient equal to one percent of the supplemental assistance amount for 
45.14 	each year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
45.15 	required constitutes a default on the loan.
45.16 		Subd. 14.Consistency with land use plans. A governmental unit applying for a 
45.17 	project in an unsewered area shall include in its application to the authority a certification 
45.18 	from the county in which the project is located that:
45.19 	(1) the project is consistent with the county comprehensive land use plan, if the 
45.20 	county has adopted one;
45.21 	(2) the project is consistent with the county water plan, if the county has adopted 
45.22 	one; and
45.23 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
45.24 	exceed the requirements of Minnesota Rules, part 7080.0305.

45.25 	Sec. 11. Minnesota Statutes 2014, section 446A.073, as amended by Laws 2015, First 
45.26 	Special Session chapter 4, article 4, sections 127, 128, and 129, is amended to read:
45.27 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
45.28 		Subdivision 1.Program established. When money is appropriated for grants 
45.29 	under this program, the authority shall award grants up to a maximum of $3,000,000 
45.30 	$7,000,000 to governmental units to cover up to one-half 80 percent of the cost of water 
45.31 	infrastructure projects made necessary by:
45.32 	(1) a wasteload reduction prescribed under a total maximum daily load plan required 
45.33 	by section 303(d) of the federal Clean Water Act, United States Code, title 33, section 
45.34 	1313(d);
46.1 	(2) a phosphorus concentration or mass limit which requires discharging one 
46.2 	milligram per liter or less at permitted design flow which is incorporated into a permit 
46.3 	issued by the Pollution Control Agency;
46.4 	(3) any other water quality-based effluent limit established under section 115.03, 
46.5 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the 
46.6 	Pollution Control Agency that exceeds secondary treatment limits; or
46.7 	(4) a total nitrogen concentration or mass limit of that requires discharging ten 
46.8 	milligrams per liter or less for a land-based treatment system at permitted design flow.
46.9 		Subd. 2.Grant application. Application for a grant must be made to the authority 
46.10 	on forms prescribed by the authority for the total maximum daily load grant program, with 
46.11 	additional information as required by the authority, including a project schedule and cost 
46.12 	estimate for the work necessary to comply with the point source wasteload allocation 
46.13 	requirements listed in subdivision 1. The Pollution Control Agency shall:
46.14 	(1) in accordance with section 116.182, calculate the essential project component 
46.15 	percentage, which must be multiplied by the total project cost to determine the eligible 
46.16 	project cost; and
46.17 	(2) review and certify to the authority those projects that have plans and 
46.18 	specifications approved under section 115.03, subdivision 1, paragraph (f).
46.19 		Subd. 3.Project priorities. When money is appropriated for grants under this 
46.20 	program, The authority shall accept applications under this program during the month of 
46.21 	July and reserve money for projects expected to proceed with construction by the end of 
46.22 	the fiscal year in the order listed on the Pollution Control Agency's project priority list and 
46.23 	in an amount based on the cost estimate submitted to the authority in the grant application 
46.24 	or the as-bid costs, whichever is less. Notwithstanding Minnesota Rules, chapter 7077, 
46.25 	the Pollution Control Agency may rank a drinking water infrastructure project on the 
46.26 	agency's project priority list if the project is necessary to meet an applicable requirement 
46.27 	in subdivision 1.
46.28 		Subd. 4.Grant approval. The authority must make a grant for an eligible project 
46.29 	only after:
46.30 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
46.31 	(2) the Pollution Control Agency has approved the as-bid costs and certified the 
46.32 	grant eligible portion of the project; and
46.33 	(3) the authority has determined that the additional financing necessary to complete 
46.34 	the project has been committed from other sources.
46.35 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible 
46.36 	project costs as incurred by the governmental unit and in accordance with a project 
47.1 	financing agreement and applicable state and federal laws and rules governing the 
47.2 	payments.

47.3 	Sec. 12. Minnesota Statutes 2014, section 446A.081, subdivision 9, is amended to read:
47.4 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be 
47.5 	used as provided in the act, including the following uses:
47.6 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
47.7 	systems for drinking water systems, where the debt was incurred after the date of enactment 
47.8 	of the act, for the purposes of construction of the necessary improvements to comply with 
47.9 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
47.10 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
47.11 	access or reduce interest rates;
47.12 	(3) to provide a source of revenue or security for the payment of principal and 
47.13 	interest on revenue or general obligation bonds issued by the authority if the bond 
47.14 	proceeds are deposited in the fund;
47.15 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
47.16 	governmental unit or state agency;
47.17 	(5) to earn interest on fund accounts;
47.18 	(6) to pay the reasonable costs incurred by the authority, the Department of 
47.19 	Employment and Economic Development, and the Department of Health for conducting 
47.20 	activities as authorized and required under the act up to the limits authorized under the act;
47.21 	(7) to develop and administer programs for water system supervision, source water 
47.22 	protection, and related programs required under the act;
47.23 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal 
47.24 	forgiveness or grants to the extent permitted under the federal Safe Drinking Water Act 
47.25 	and other federal law, based on the criteria and requirements established for drinking 
47.26 	water projects under the water infrastructure funding program under section 446A.072;
47.27 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
47.28 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
47.29 	or energy efficiency improvements, or other environmentally innovative activities; and
47.30 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up 
47.31 	to a maximum of $10,000 for projects needed to comply with national primary drinking 
47.32 	water standards for an existing community or noncommunity public water system.
47.33 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be 
47.34 	provided if the average annual residential drinking water system cost after completion of 
47.35 	the project would otherwise exceed 1.2 percent of the median household income in the 
48.1 	project service area. In determining whether the average annual residential drinking 
48.2 	water system cost would exceed 1.2 percent, the authority must consider the total costs 
48.3 	associated with building, operating, and maintaining the drinking water system, including 
48.4 	debt service and operation and maintenance costs. Debt service costs for the proposed 
48.5 	project must be calculated based on the maximum loan term permitted for the drinking 
48.6 	water revolving fund loan under this section. The amount of the principal forgiveness or 
48.7 	grant must be equal to 80 percent of the amount needed to reduce the average annual 
48.8 	residential drinking water system cost to 1.2 percent of median household income in the 
48.9 	project service area, to a maximum of $4,000,000 or $15,000 per connection, whichever is 
48.10 	less, and not to exceed 80 percent of the total project cost.
48.11 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may 
48.12 	not exceed 25 percent of the eligible project costs as determined by the Department of 
48.13 	Health for project components directly related to green infrastructure, water or energy 
48.14 	efficiency improvements, or other environmentally innovative activities, up to a maximum 
48.15 	of $1,000,000.
48.16 	(d) The authority may reduce the percentage of median household income at which a 
48.17 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which 
48.18 	principal forgiveness or grants could be provided under paragraph (b) if it determines that 
48.19 	the federal money allotted to the state cannot be fully utilized without the reduction. If it 
48.20 	determines that the reduction is necessary to fully utilize the federal money, the authority 
48.21 	must effect the change through its approval of the annual intended use plan.

48.22 	Sec. 13. Minnesota Statutes 2014, section 446A.12, subdivision 1, is amended to read:
48.23 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
48.24 	principal amount that the authority determines necessary to provide sufficient funds for 
48.25 	achieving its purposes, including the making of loans and purchase of securities, the 
48.26 	payment of interest on bonds of the authority, the establishment of reserves to secure its 
48.27 	bonds, the payment of fees to a third party providing credit enhancement, and the payment 
48.28 	of all other expenditures of the authority incident to and necessary or convenient to carry 
48.29 	out its corporate purposes and powers, but not including the making of grants. Bonds of 
48.30 	the authority may be issued as bonds or notes or in any other form authorized by law. 
48.31 	The principal amount of bonds issued and outstanding under this section at any time 
48.32 	may not exceed $1,500,000,000 $2,000,000,000, excluding bonds for which refunding 
48.33 	bonds or crossover refunding bonds have been issued, and excluding any bonds issued 
48.34 	for the credit enhanced bond program or refunding or crossover refunding bonds issued 
48.35 	under the program. The principal amount of bonds issued and outstanding under section 
49.1 	446A.087, may not exceed $500,000,000, excluding bonds for which refunding bonds or 
49.2 	crossover refunding bonds have been issued.

49.3 	Sec. 14. Laws 2002, chapter 393, section 22, subdivision 6, as amended by Laws 2005, 
49.4 	chapter 20, article 1, section 43, and Laws 2013, chapter 136, section 10, is amended to 
49.5 	read:

49.6
49.7	Subd. 6.Fergus Falls Regional Treatment 
Center
 				3,000,000
	
49.8 	To design, renovate, construct, furnish, 
49.9 	and equip ancillary support and program 
49.10 	facilities, including improvements to basic 
49.11 	infrastructure, such as sanitary and storm 
49.12 	sewer and water lines, public streets, 
49.13 	curb, gutter, street lights, or sidewalks, to 
49.14 	make improvements for building envelope 
49.15 	and structural integrity for the purposes 
49.16 	of stabilizing the buildings for sale, for 
49.17 	hazardous materials abatement, and for 
49.18 	demolition of all or portions of surplus, 
49.19 	nonfunctional, or deteriorated facilities 
49.20 	and infrastructure or to renovate surplus, 
49.21 	nonfunctional, or deteriorated facilities and 
49.22 	infrastructure to facilitate the redevelopment 
49.23 	of the Fergus Falls Regional Treatment 
49.24 	Center campus. If the property is sold or 
49.25 	transferred to a local unit of government, the 
49.26 	unspent portion of this appropriation may be 
49.27 	granted to the local unit of government that 
49.28 	acquires the campus for the purposes stated 
49.29 	in this subdivision.
49.30 	Notwithstanding Minnesota Statutes, section 
49.31 	16A.642, the bond sale authorization and 
49.32 	appropriation of bond proceeds in this 
49.33 	subdivision are available until December 31, 
49.34 	2016 2018.

50.1 	Sec. 15. Laws 2010, chapter 189, section 7, subdivision 5, is amended to read:

50.2	Subd. 5.Dam Renovation and Removal
 				4,750,000
	
50.3 	To renovate or remove publicly owned dams. 
50.4 	The commissioner shall determine project 
50.5 	priorities as appropriate under Minnesota 
50.6 	Statutes, sections 103G.511 and 103G.515.
50.7 	This appropriation includes money for the 
50.8 	following projects:
50.9 	(a) Byllesby Dam, Dakota and Goodhue 
50.10 	Counties
50.11 	(b) Champlin Mill Pond Dam, Hennepin 
50.12 	County
50.13 	(c) Clayton Lake Dam, Pine County
50.14 	(d) Drayton Dam, Kittson County
50.15 	(e) Hallock Dam, Kittson County
50.16 	(f) Lake Bronson Dam, Kittson County
50.17 	(g) Lanesboro Dam, Fillmore County
50.18 	(h) Milaca Dam, Mille Lacs County
50.19 	(i) Montevideo Dam, Chippewa County
50.20 	(j) Pike River Dam, St. Louis County
50.21 	Notwithstanding Minnesota Statutes, section 
50.22 	16A.69, subdivision 2, upon the award of 
50.23 	final contracts for the completion of a project 
50.24 	listed in this subdivision, the commissioner 
50.25 	may transfer the unencumbered balance in the 
50.26 	project account to any other dam renovation 
50.27 	or removal project on the commissioner's 
50.28 	priority list. Notwithstanding the match 
50.29 	requirements in Minnesota Statutes, section 
50.30 	103G.511, a grant to the city of Lanesboro 
50.31 	does not require any nonstate match.

50.32 	Sec. 16. Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:

51.1
51.2	Subd. 3.Dam Repair, Reconstruction, and 
Removal
 				3,000,000
	
51.3 	To renovate or remove publicly owned dams. 
51.4 	The commissioner shall determine project 
51.5 	priorities as appropriate under Minnesota 
51.6 	Statutes, sections 103G.511 and 103G.515.
51.7 	Notwithstanding the match requirements 
51.8 	in Minnesota Statutes, section 103G.511, 
51.9 	a grant to the city of Lanesboro does not 
51.10 	require any nonstate match.

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

51.12	Subd. 4.Phillips Community Center
 				1,750,000
	
51.13 	For a grant to the Minneapolis Park and 
51.14 	Recreation Board to predesign, design, 
51.15 	engineer, reconstruct, renovate, furnish, 
51.16 	and equip the Phillips Community Center 
51.17 	indoor competitive swimming pool and to 
51.18 	predesign, design, engineer, and construct 
51.19 	an additional indoor multipurpose family 
51.20 	pool and facilities associated with an aquatic 
51.21 	center in the community center, subject to 
51.22 	Minnesota Statutes, section 16A.695.
51.23 	This appropriation is not available until 
51.24 	the commissioner determines that at least 
51.25 	$350,000 is committed from nonstate 
51.26 	sources. Notwithstanding Minnesota 
51.27 	Statutes, section 16A.642, the bond 
51.28 	authorization and appropriation of bond 
51.29 	proceeds for this project are available until 
51.30 	December 31, 2018.

51.31 	Sec. 18. Laws 2014, chapter 294, article 1, section 7, subdivision 15, is amended to read:

51.32	Subd. 15.Grant County Trail Grant
 				100,000
	
52.1 	For a grant to Grant County for predesign, 
52.2 	acquisition, and or improvements for a trail 
52.3 	from the city of Elbow Lake to Pomme de 
52.4 	Terre Lake. The commissioner of natural 
52.5 	resources may allocate any amount not 
52.6 	needed to complete this project to state 
52.7 	trail acquisition and improvements under 
52.8 	Minnesota Statutes, section 85.015.

52.9 	Sec. 19. Laws 2014, chapter 294, article 1, section 17, subdivision 6, is amended to read:

52.10
52.11	Subd. 6.Inver Grove Heights - Heritage 
Village Park
 				2,000,000
	
52.12 	$1,500,000 of this appropriation is for a 
52.13 	grant to the city of Inver Grove Heights 
52.14 	and $500,000 of this appropriation is for a 
52.15 	grant to Dakota County. This appropriation 
52.16 	is for public infrastructure improvements 
52.17 	and land acquisition in and adjacent to the 
52.18 	Heritage Village Park, the Mississippi River 
52.19 	Trail, and the Rock Island Swing Bridge. 
52.20 	These improvements will include but are 
52.21 	not limited to motor vehicle access, utility 
52.22 	service, stormwater treatment, and trail and 
52.23 	sidewalk connections. This appropriation 
52.24 	is not available until the commissioner of 
52.25 	management and budget has determined that 
52.26 	at least an equal amount has been committed 
52.27 	to the project from nonstate sources.

52.28 	Sec. 20. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to 
52.29 	read:

52.30
52.31	Subd. 12.West St. Paul - North UrbanRiver 
to River Regional Trail Bridge Greenway
 				2,000,000
	
52.32 	For a grant to the city of West St. Paul to 
52.33 	predesign, design, and construct a pedestrian 
52.34 	bridge for the North Urban Regional Trail 
53.1 	as an overpassgrade separated crossing of 
53.2 	Robert Street in the area near Wentworth 
53.3 	Avenue in West St. Paul for the River to River 
53.4 	Regional Greenway. This appropriation may 
53.5 	also be used to acquire property or purchase 
53.6 	rights-of-way needed for bridge construction. 
53.7 	A nonstate match is not required.

53.8 	Sec. 21. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 
53.9 	3, is amended to read:

53.10
53.11	Subd. 3.Local Road Improvement Fund 
Grants
 				8,910,000
	
53.12 	(a) From the bond proceeds account in 
53.13 	the state transportation fund as provided 
53.14 	in Minnesota Statutes, section 174.50, for 
53.15 	construction and reconstruction of local 
53.16 	roads with statewide or regional significance 
53.17 	under Minnesota Statutes, section 174.52, 
53.18 	subdivision 4, or for grants to counties to 
53.19 	assist in paying the costs of rural road safety 
53.20 	capital improvement projects on county 
53.21 	state-aid highways under Minnesota Statutes, 
53.22 	section 174.52, subdivision 4a.
53.23 	(b) This appropriation includes $850,000 for 
53.24 	a grant to the city of Sandstone for predesign, 
53.25 	design, engineering, and construction of a 
53.26 	road extending south off of marked Trunk 
53.27 	Highway 23 across from Lundorff Drive 
53.28 	to the airport area, and including a bridge 
53.29 	over Skunk Creek in Sandstone, in order to 
53.30 	facilitate repurposing of an area of the airport 
53.31 	into a business park. This appropriation 
53.32 	is not available until the commissioner of 
53.33 	management and budget determines that 
53.34 	sufficient resources to complete the project 
53.35 	are committed to it from other sources, 
54.1 	including any funds made available from the 
54.2 	commissioner of transportation.
54.3 	(c) This appropriation includes $3,770,000 
54.4 	for a grant to Kandiyohi County for 
54.5 	construction and reconstruction of local 
54.6 	roads to facilitate the construction of 
54.7 	highway-rail grade separations at U.S. 
54.8 	Highway 12 and Minnesota Highway 40 
54.9 	as part ofone or more of the following 
54.10 	highway-rail intersections associated with 
54.11 	the Willmar Wye project: U.S. Highway 12, 
54.12 	marked Trunk Highway 40, and Kandiyohi 
54.13 	County State-Aid Highway 55.

54.14 	Sec. 22. REPORT ON FUTURE OF GLENSHEEN.
 54.15 	The Board of Regents of the University of Minnesota must develop a plan for the 
54.16 	future of Glensheen, the historic Congdon estate in Duluth, in cooperation and consultation 
54.17 	with the city of Duluth, the Minnesota Historical Society, and other interested parties. The 
54.18 	plan must address facility ownership, a multiphased asset renewal plan, programmatic 
54.19 	operations, and cultural interpretation. The plan must be submitted by January 16, 2017, 
54.20 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
54.21 	over higher education policy and finance, and capital investment, and as provided in 
54.22 	Minnesota Statutes, section 3.195.

54.23 	Sec. 23.  REPEALER.
 54.24 	Minnesota Statutes 2014, section 123A.446, is repealed.

54.25 	Sec. 24. EFFECTIVE DATE.
 54.26 	Except as otherwise provided, this article is effective the day following final 
54.27 	enactment.