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 and 
1.5 	modifying existing programs; authorizing the sale and issuance of state bonds; 
1.6 	appropriating money;amending Minnesota Statutes 2014, sections 219.166; 
1.7 	256E.37; 446A.072; 446A.073, as amended; 446A.081, subdivision 9; 446A.12, 
1.8 	subdivision 1; 462A.37, subdivisions 1, 2, by adding a subdivision; Minnesota 
1.9 	Statutes 2015 Supplement, sections 16A.967; 462A.37, subdivision 5; Laws 
1.10 	2015, chapter 75, article 1, section 3, subdivision 3; proposing coding for new 
1.11 	law in Minnesota Statutes, chapters 174; 219; repealing Minnesota Statutes 
1.12 	2014, section 123A.446.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	APPROPRIATIONS

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

2.5						APPROPRIATIONS

2.6	Sec. 2. UNIVERSITY OF MINNESOTA

2.7	Subdivision 1.Total Appropriation
 			$
	153,234,000
	
2.8 	To the Board of Regents of the University 
2.9 	of Minnesota for the purposes specified in 
2.10 	this section.

2.11
2.12	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				55,000,000
	
2.13 	To be spent in accordance with Minnesota 
2.14 	Statutes, section 135A.046.

2.15
2.16	Subd. 3.Chemical Sciences and Advanced 
Materials Science Building
 				27,167,000
	
2.17 	To design, construct, furnish, and equip 
2.18 	a new laboratory building on the Duluth 
2.19 	campus, including classrooms and research 
2.20 	and undergraduate instructional laboratories.

2.21	Subd. 4.Health Sciences Education Facility
 				66,667,000
	
2.22 	To demolish obsolete health sciences 
2.23 	facilities and to design, renovate, furnish, 
2.24 	equip, and construct a health science 
2.25 	education facility on the Twin Cities campus 
2.26 	to meet the needs of the Medical School and 
2.27 	the Academic Health Center.

2.28	Subd. 5.Plant Growth Research Facility
 				4,400,000
	
2.29 	To demolish the existing biological sciences 
2.30 	greenhouse and to predesign, design, 
2.31 	construct, furnish, and equip a greenhouse 
2.32 	to support learning and research on the St. 
2.33 	Paul campus.

3.1	Subd. 6.University Share
 					
3.2 	Except for the appropriation for HEAPR, the 
3.3 	appropriations in this section are intended to 
3.4 	cover approximately two-thirds of the cost of 
3.5 	each project. The remaining costs must be 
3.6 	paid from university sources.

3.7	Subd. 7.Unspent Appropriations
 					
3.8 	Upon substantial completion of a project 
3.9 	authorized in this section and after written 
3.10 	notice to the commissioner of management 
3.11 	and budget, the Board of Regents must use 
3.12 	any money remaining in the appropriation 
3.13 	for that project for HEAPR under Minnesota 
3.14 	Statutes, section 135A.046. The Board 
3.15 	of Regents must report by February 1 of 
3.16 	each even-numbered year to the chairs of 
3.17 	the house of representatives and senate 
3.18 	committees with jurisdiction over capital 
3.19 	investment and higher education finance, and 
3.20 	to the chairs of the house of representatives 
3.21 	Ways and Means Committee and the senate 
3.22 	Finance Committee, on how the remaining 
3.23 	money has been allocated or spent.

3.24
3.25	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

3.26	Subdivision 1.Total Appropriation
 			$
	190,067,000
	
3.27 	To the Board of Trustees of the Minnesota 
3.28 	State Colleges and Universities for the 
3.29 	purposes specified in this section.

3.30
3.31	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				80,000,000
	
3.32 	To be spent in accordance with Minnesota 
3.33 	Statutes, section 135A.046.

3.34	Subd. 3.Bemidji State University
 				18,097,000
	
4.1 	To demolish Hagg-Sauer Hall and construct, 
4.2 	furnish, and equip its replacement, the 
4.3 	Academic Learning Center; to renovate 
4.4 	and renew, furnish, and equip Bensen Hall, 
4.5 	Sattgast Hall, Bangsberg Hall, and A.C. 
4.6 	Clark Library.

4.7	Subd. 4.Hibbing Community College
 				9,958,000
	
4.8 	To demolish Building G and connecting 
4.9 	links or portions thereof, and to construct, 
4.10 	renovate, furnish, and equip buildings, links, 
4.11 	and entry spaces on the campus.

4.12
4.13	Subd. 5.Minnesota State Community and 
Technical College

4.14	(a) Fergus Falls campus
				978,000
	
4.15 	To design, renovate, furnish, and equip 
4.16 	a new Center for Student and Workforce 
4.17 	Success (CSWS) that integrates the Regional 
4.18 	Workforce Center. The board must enter into 
4.19 	a lease agreement with the commissioner of 
4.20 	employment and economic development, 
4.21 	or partners of the commissioner, for use of 
4.22 	the workforce center subject to Minnesota 
4.23 	Statutes, section 16A.695. The board must 
4.24 	use nonstate money for the remainder of the 
4.25 	cost of the renovation.

4.26	(b) Wadena campus
				820,000
	
4.27 	To design, renovate, furnish, and equip 
4.28 	the relocation of the current library to 
4.29 	underutilized space and converting the 
4.30 	vacated space into a centralized student 
4.31 	services center.

4.32	Subd. 6.Minnesota State University, Mankato
 				6,525,000
	
4.33 	To complete design, renovate, furnish, and 
4.34 	equip space in Armstrong, Morris, Wissink, 
5.1 	and Wiecking Halls to repurpose space being 
5.2 	vacated by programs moving into the new 
5.3 	Clinical Sciences building, and complete 
5.4 	installation of a solar array on the new 
5.5 	Clinical Sciences building (Phase 1).

5.6
5.7	Subd. 7.Northland Community and Technical 
College, East Grand Forks
 				826,000
	
5.8 	To design, renovate, furnish, and equip 
5.9 	science and radiological lab space on the 
5.10 	East Grand Forks campus.

5.11
5.12	Subd. 8.Rochester Community and Technical 
College
 				20,385,000
	
5.13 	To complete design, demolish Memorial and 
5.14 	Plaza Halls, construct, equip, and furnish an 
5.15 	academic building expansion, and renovate, 
5.16 	equip, and furnish replacement space for 
5.17 	classrooms, labs, and office spaces.

5.18
5.19	Subd. 9.South Central College, North 
Mankato
 				8,600,000
	
5.20 	To design, renovate, renew, furnish, and 
5.21 	equip laboratory, classroom and office spaces 
5.22 	on the North Mankato campus.

5.23	Subd. 10.St. Cloud State University
 				18,572,000
	
5.24 	To construct, renovate, furnish, and 
5.25 	equip Eastman Hall for the relocation of 
5.26 	consolidated student health services and 
5.27 	academic programs.

5.28
5.29	Subd. 11.Winona State University, Education 
Village, Phase 2
 				25,306,000
	
5.30 	To complete design, construct, renovate, 
5.31 	furnish, and equip Phase 2 of the Education 
5.32 	Village project, including the renovation 
5.33 	of Cathedral and Wabasha Halls and 
5.34 	Wabasha Rec, and remove obsolete portions 
6.1 	of Wabasha Rec and the Annex building 
6.2 	between Cathedral School and Wabasha Rec.

6.3	Subd. 12.Debt Service
 					
6.4 	(a) Except as provided in paragraph (b), the 
6.5 	Board of Trustees shall pay the debt service 
6.6 	on one-third of the principal amount of state 
6.7 	bonds sold to finance projects authorized 
6.8 	by this section. After each sale of general 
6.9 	obligation bonds, the commissioner of 
6.10 	management and budget shall notify the 
6.11 	board of the amounts assessed for each year 
6.12 	for the life of the bonds.
6.13 	(b) The board need not pay debt service 
6.14 	on bonds sold to finance HEAPR. Where a 
6.15 	nonstate match is required, the debt service is 
6.16 	due on a principal amount equal to one-third 
6.17 	of the total project cost, less the match 
6.18 	committed before the bonds are sold.
6.19 	(c) The commissioner of management and 
6.20 	budget shall reduce the board's assessment 
6.21 	each year by one-third of the net income 
6.22 	from investment of general obligation bond 
6.23 	proceeds in proportion to the amount of 
6.24 	principal and interest otherwise required to 
6.25 	be paid by the board. The board shall pay its 
6.26 	resulting net assessment to the commissioner 
6.27 	of management and budget by December 
6.28 	1 each year. If the board fails to make 
6.29 	a payment when due, the commissioner 
6.30 	of management and budget shall reduce 
6.31 	allotments for appropriations from the 
6.32 	general fund otherwise available to the board 
6.33 	and apply the amount of the reduction to 
6.34 	cover the missed debt service payment. The 
6.35 	commissioner of management and budget 
7.1 	shall credit the payments received from the 
7.2 	board to the bond debt service account in 
7.3 	the state bond fund each December 1 before 
7.4 	money is transferred from the general fund 
7.5 	under Minnesota Statutes, section 16A.641, 
7.6 	subdivision 10.

7.7	Subd. 13.Unspent Appropriations
 					
7.8 	(a) Upon substantial completion of a project 
7.9 	authorized in this section and after written 
7.10 	notice to the commissioner of management 
7.11 	and budget, the board must use any money 
7.12 	remaining in the appropriation for that 
7.13 	project for HEAPR under Minnesota 
7.14 	Statutes, section 135A.046. The Board 
7.15 	of Trustees must report by February 1 of 
7.16 	each even-numbered year to the chairs of 
7.17 	the house of representatives and senate 
7.18 	committees with jurisdiction over capital 
7.19 	investment and higher education finance, and 
7.20 	to the chairs of the house of representatives 
7.21 	Ways and Means Committee and the senate 
7.22 	Finance Committee, on how the remaining 
7.23 	money has been allocated or spent.
7.24 	(b) The unspent portion of an appropriation 
7.25 	for a project in this section that is complete is 
7.26 	available for HEAPR under this subdivision, 
7.27 	at the same campus as the project for which 
7.28 	the original appropriation was made and the 
7.29 	debt service requirement under subdivision 
7.30 	18 is reduced accordingly. Minnesota 
7.31 	Statutes, section 16A.642, applies from the 
7.32 	date of the original appropriation to the 
7.33 	unspent amount transferred.

7.34	Sec. 4. EDUCATION

8.1	Subdivision 1.Total Appropriation
 			$
	16,070,000
	
8.2 	To the commissioner of education for the 
8.3 	purposes specified in this section.

8.4
8.5	Subd. 2.Red Lake Independent School District 
No. 38 Facility Projects
 				14,070,000
	
8.6 	(a) This appropriation is from the maximum 
8.7 	effort school loan fund for a capital loan 
8.8 	to Independent School District No. 38, 
8.9 	Red Lake, as provided in Minnesota 
8.10 	Statutes, sections 126C.60 to 126C.72. 
8.11 	This appropriation is to complete design 
8.12 	and construction of a connection structure 
8.13 	between the Red Lake Early Learning 
8.14 	Childhood Center and Red Lake Elementary 
8.15 	School; renovations to various classrooms, 
8.16 	labs, and support rooms; updating of 
8.17 	mechanical systems; and expansion of the 
8.18 	cafeteria. Before any capital loan contract is 
8.19 	approved under this subdivision, the district 
8.20 	must provide documentation acceptable to 
8.21 	the commissioner of education on how the 
8.22 	capital loan will be used.
8.23 	(b) The commissioner of administration 
8.24 	may provide project management services 
8.25 	to assist the Department of Education with 
8.26 	oversight of the project. No money for 
8.27 	construction may be distributed by the 
8.28 	commissioner of education to the recipient 
8.29 	school district until bids have been received 
8.30 	on 100 percent of the construction documents 
8.31 	and satisfactory documentation has been 
8.32 	submitted to the commissioner of education 
8.33 	indicating the project can be fully completed 
8.34 	with money available for the project.

8.35	Subd. 3.Library Construction Grants
 				2,000,000
	
9.1 	For library construction grants under 
9.2 	Minnesota Statutes, section 134.45.

9.3	Sec. 5. MINNESOTA STATE ACADEMIES

9.4	Subdivision 1.Total Appropriation
 			$
	2,210,000
	
9.5 	To the commissioner of administration for 
9.6 	the purposes specified in this section.

9.7	Subd. 2.Asset Preservation
 				2,000,000
	
9.8 	For capital asset preservation improvements 
9.9 	and betterments on both campuses of the 
9.10 	Minnesota State Academies, to be spent in 
9.11 	accordance with Minnesota Statutes, section 
9.12 	16B.307.

9.13	Subd. 3.Minnesota State Academies Track
 				160,000
	
9.14 	For the construction of a track located on 
9.15 	the Minnesota State Academy for the Blind 
9.16 	campus, subject to Minnesota Statutes, 
9.17 	section 16A.695. This appropriation is 
9.18 	not available until the commissioner of 
9.19 	management and budget determines that an 
9.20 	amount sufficient to complete the project is 
9.21 	committed from nonstate sources.

9.22
9.23	Subd. 4.Minnesota State Academies Security 
Corridor
 				50,000
	
9.24 	For predesign for a safety corridor on the 
9.25 	Minnesota State Academy for the Deaf 
9.26 	campus.

9.27
9.28	Sec. 6. PERPICH CENTER FOR ARTS 
EDUCATION
 			$
	2,300,000
	
9.29 	To the commissioner of administration for 
9.30 	capital asset preservation improvements and 
9.31 	betterments at the Perpich Center for Arts 
9.32 	Education, to be spent in accordance with 
9.33 	Minnesota Statutes, section 16B.307.

10.1	Sec. 7. NATURAL RESOURCES

10.2	Subdivision 1.Total Appropriation
 			$
	73,263,000
	
10.3 	(a) To the commissioner of natural resources 
10.4 	for the purposes specified in this section.
10.5 	(b) The appropriations in this section are 
10.6 	subject to the requirements of the natural 
10.7 	resources capital improvement program 
10.8 	under Minnesota Statutes, section 86A.12, 
10.9 	unless this section or the statutes referred 
10.10 	to in this section provide more specific 
10.11 	standards, criteria, or priorities for projects 
10.12 	than Minnesota Statutes, section 86A.12.

10.13	Subd. 2.Natural Resources Asset Preservation
 				33,000,000
	
10.14 	For the renovation of state-owned facilities 
10.15 	and recreational assets operated by the 
10.16 	commissioner of natural resources to 
10.17 	be spent in accordance with Minnesota 
10.18 	Statutes, section 84.946. Notwithstanding 
10.19 	Minnesota Statutes, section 84.946: (1) the 
10.20 	commissioner may use this appropriation 
10.21 	to replace buildings if, considering the 
10.22 	embedded energy in the building, that is the 
10.23 	most energy-efficient and carbon-reducing 
10.24 	method of renovation; and (2) this 
10.25 	appropriation may be used for projects to 
10.26 	remove life safety hazards such as building 
10.27 	code violations or structural defects.

10.28	Subd. 3.Flood Hazard Mitigation
 				3,500,000
	
10.29 	(a) For the state share of flood hazard 
10.30 	mitigation grants for publicly owned capital 
10.31 	improvements to prevent or alleviate flood 
10.32 	damage under Minnesota Statutes, section 
10.33 	103F.161.
11.1 	(b) Levee projects, to the extent practical, 
11.2 	shall meet the state standard of three feet 
11.3 	above the 100-year flood elevation.
11.4 	(c) Project priorities shall be determined by 
11.5 	the commissioner as appropriate and based 
11.6 	on need.
11.7 	(d) This appropriation includes money for the 
11.8 	following municipal projects: Montevideo 
11.9 	and Halstad.
11.10 	(e) For any project listed in this subdivision 
11.11 	that the commissioner determines is not 
11.12 	ready to proceed or does not expend all the 
11.13 	money allocated to it, the commissioner may 
11.14 	allocate that project's money to a project on 
11.15 	the commissioner's priority list.
11.16 	(f) To the extent that the cost of a project 
11.17 	exceeds two percent of the median household 
11.18 	income in a municipality or township 
11.19 	multiplied by the number of households in the 
11.20 	municipality or township, this appropriation 
11.21 	is also for the local share of the project.

11.22	Subd. 4.Buildings and Facilities Development
 				2,000,000
	
11.23 	To design and construct office and storage 
11.24 	buildings, to replace buildings that are in 
11.25 	poor condition, outdated, and no longer 
11.26 	support the work of the department. This 
11.27 	appropriation includes money to predesign a 
11.28 	consolidated office in Bemidji.

11.29	Subd. 5.Dam Renovation, Repair, Removal
 				7,000,000
	
11.30 	(a) To renovate or remove publicly owned 
11.31 	dams. The commissioner shall determine 
11.32 	project priorities as appropriate under 
11.33 	Minnesota Statutes, sections 103G.511 and 
11.34 	103G.515. 
12.1 	(b) This appropriation includes money for 
12.2 	the Bronson Dam in Lake Bronson State 
12.3 	Park. If the commissioner determines that 
12.4 	the Bronson project is not ready to proceed, 
12.5 	this appropriation may be used for other 
12.6 	projects on the commissioner's priority list.

12.7	Subd. 6.RIM Critical Habitat
 				2,000,000
	
12.8 	To provide the state match for the critical 
12.9 	habitat private sector matching account under 
12.10 	Minnesota Statutes, section 84.943.

12.11	Subd. 7.Fish Hatchery Development
 				1,000,000
	
12.12 	For improvements and system upgrades of a 
12.13 	capital nature to hatchery facilities owned by 
12.14 	the state and operated by the commissioner of 
12.15 	natural resources under Minnesota Statutes, 
12.16 	section 97A.045, subdivision 1, to prevent 
12.17 	the spread of invasive species and pathogens.

12.18
12.19	Subd. 8.Mille Lacs Lake Fisheries 
Management Station
 				3,500,000
	
12.20 	To design and construct a fishery 
12.21 	management station near Lake Mille Lacs to 
12.22 	provide office, hatchery, and storage space.

12.23	Subd. 9.Reforestation and Stand Improvement
 				2,000,000
	
12.24 	To provide for reforestation and stand 
12.25 	improvement on state forest lands to meet 
12.26 	the reforestation requirements of Minnesota 
12.27 	Statutes, section 89.002, subdivision 2, 
12.28 	including purchasing native seeds and native 
12.29 	seedlings, planting, seeding, site preparation, 
12.30 	and protection on state lands administered 
12.31 	by the commissioner.

12.32
12.33	Subd. 10.Native Prairie Bank Acquisition and 
Development
 				2,000,000
	
13.1 	To acquire native prairie bank easements 
13.2 	under Minnesota Statutes, section 84.96, and 
13.3 	to develop and restore prairie bank lands.

13.4	Subd. 11.Itasca State Park Renovations
 				3,000,000
	
13.5 	To provide for the renovation of buildings 
13.6 	and infrastructure and for natural 
13.7 	resources restoration in Itasca State Park. 
13.8 	Projects include safety and accessibility 
13.9 	improvements, rehabilitation of the historic 
13.10 	Nicollet Court building, and erosion 
13.11 	protection at the headwaters.

13.12
13.13
13.14	Subd. 12.Wildlife Management Areas/ 
Aquatic Management Areas Acquisition and 
Development
 				9,500,000
	
13.15 	To acquire wildlife management areas 
13.16 	and aquatic management areas and for 
13.17 	improvements to develop, protect, or 
13.18 	improve habitat under Minnesota Statutes, 
13.19 	section 86A.05, subdivisions 8 and 14.

13.20	Subd. 13.State Park Campground Renovations
 				1,000,000
	
13.21 	To rehabilitate and provide enhancements 
13.22 	to campgrounds, including meeting code 
13.23 	requirements and improving safety and 
13.24 	accessibility. This appropriation is for the 
13.25 	campground at Jay Cooke State Park and 
13.26 	high-priority work at other campgrounds.

13.27
13.28	Subd. 14.Park, State Recreation Area, and 
Trail Development
 				2,000,000
	
13.29 	For acquisition and development of 
13.30 	recreational features in state parks, state 
13.31 	recreation areas, and state trails. Priority 
13.32 	projects include Heartland Trail-Tower Hill, 
13.33 	Gitchi-Gami Trail at Tofte, Paul Bunyan 
13.34 	Trail at Bemidji, and design of the Lake 
13.35 	Vermilion visitor center.

14.1
14.2	Subd. 15.Scientific and Natural Area 
Acquisition and Development
 				1,000,000
	
14.3 	To acquire land for scientific and natural 
14.4 	areas and for improvements to develop, 
14.5 	protect, or improve scientific and natural 
14.6 	areas under Minnesota Statutes, sections 
14.7 	84.033 and 86A.05, subdivision 5.

14.8
14.9	Subd. 16.Two Harbors Small Craft Harbor 
Facility
 				763,000
	
14.10 	For a grant to the City of Two Harbors to 
14.11 	design and engineer a small craft harbor 
14.12 	within the City of Two Harbors. This 
14.13 	appropriation is not available until the 
14.14 	commissioner of management and budget 
14.15 	confirms that an amount sufficient to 
14.16 	complete the project is committed from 
14.17 	nonstate sources.

14.18	Subd. 17.Unspent Appropriations
 					
14.19 	The unspent portion of an appropriation for 
14.20 	a project in this section that is complete, 
14.21 	upon written notice to the commissioner 
14.22 	of management and budget, is available 
14.23 	for asset preservation under Minnesota 
14.24 	Statutes, section 84.946. Minnesota Statutes, 
14.25 	section 16A.642, applies from the date of the 
14.26 	original appropriation to the unspent amount 
14.27 	transferred.

14.28	Sec. 8. POLLUTION CONTROL AGENCY

14.29	Subdivision 1.Total Appropriation
 			$
	24,705,000
	
14.30 	To the Pollution Control Agency for the 
14.31 	purposes specified in this section.

14.32	Subd. 2.St. Louis River Cleanup
 				12,705,000
	
15.1 	To design and implement contaminated 
15.2 	sediment management actions identified in 
15.3 	the St. Louis River remedial action plan to 
15.4 	restore water quality in the St. Louis River 
15.5 	Area of Concern.

15.6	Subd. 3.Closed Landfill Cleanup
 				12,000,000
	
15.7 	To design and construct remedial systems and 
15.8 	acquire land at closed landfills throughout the 
15.9 	state in accordance with the closed landfill 
15.10 	program under Minnesota Statutes, sections 
15.11 	115B.39 to 115B.42. The agency must 
15.12 	follow the agency priorities, which includes 
15.13 	a construction project at the waste disposal 
15.14 	engineering (WDE) site in Anoka County.

15.15	Sec. 9. AGRICULTURE
 			$
	2,218,000
	
15.16 	From the general fund in fiscal year 
15.17 	2017 to the commissioner of agriculture for 
15.18 	equipment and instruments for the agriculture 
15.19 	laboratory. This appropriation is available 
15.20 	until June 30, 2022.

15.21	Sec. 10. RURAL FINANCE AUTHORITY
 			$
	35,000,000
	
15.22 	For the purposes set forth in the Minnesota 
15.23 	Constitution, article XI, section 5, paragraph 
15.24 	(h), to the Rural Finance Authority to 
15.25 	purchase participation interests in or to 
15.26 	make direct agricultural loans to farmers 
15.27 	under Minnesota Statutes, chapter 41B. This 
15.28 	appropriation is from the bond proceeds 
15.29 	account in the rural finance administration 
15.30 	fund and is for the beginning farmer program 
15.31 	under Minnesota Statutes, section 41B.039; 
15.32 	the loan restructuring program under 
15.33 	Minnesota Statutes, section 41B.04; the 
16.1 	seller-sponsored program under Minnesota 
16.2 	Statutes, section 41B.042; the agricultural 
16.3 	improvement loan program under Minnesota 
16.4 	Statutes, section 41B.043; and the livestock 
16.5 	expansion loan program under Minnesota 
16.6 	Statutes, section 41B.045. All debt service 
16.7 	on bond proceeds used to finance this 
16.8 	appropriation must be repaid by the Rural 
16.9 	Finance Authority under Minnesota Statutes, 
16.10 	section 16A.643. Loan participations 
16.11 	must be priced to provide full interest 
16.12 	and principal coverage and a reserve for 
16.13 	potential losses. Priority for loans must be 
16.14 	given first to basic beginning farmer loans, 
16.15 	second to seller-sponsored loans, and third to 
16.16 	agricultural improvement loans.

16.17
16.18	Sec. 11. BOARD OF WATER AND SOIL 
RESOURCES

16.19	Subdivision 1.Total Appropriation
 			$
	35,000,000
	
16.20 	To the Board of Water and Soil Resources 
16.21 	for the purposes specified in this section.

16.22
16.23	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				30,000,000
	
16.24 	(a) To acquire conservation easements from 
16.25 	landowners to preserve, restore, create, and 
16.26 	enhance wetlands and associated uplands 
16.27 	of prairie and grasslands, and restore and 
16.28 	enhance rivers and streams, riparian lands, 
16.29 	and associated uplands of prairie and 
16.30 	grasslands in order to protect soil and water 
16.31 	quality, support fish and wildlife habitat, 
16.32 	reduce flood damage, and provide other 
16.33 	public benefits. The provisions of Minnesota 
16.34 	Statutes, section 103F.515, apply to this 
16.35 	program.
17.1 	(b) The board shall give priority to leveraging 
17.2 	federal money by enrolling targeted new 
17.3 	lands or enrolling environmentally sensitive 
17.4 	lands that have expiring federal conservation 
17.5 	agreements.
17.6 	(c) The board is authorized to enter into 
17.7 	new agreements and amend past agreements 
17.8 	with landowners as required by Minnesota 
17.9 	Statutes, section 103F.515, subdivision 5, to 
17.10 	allow for restoration. Of this appropriation, 
17.11 	up to five percent may be used for restoration 
17.12 	and enhancement.

17.13
17.14	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				5,000,000
	
17.15 	To acquire land or permanent easements 
17.16 	and to restore, create, enhance, and preserve 
17.17 	wetlands to replace those wetlands drained or 
17.18 	filled as a result of the repair, reconstruction, 
17.19 	replacement, or rehabilitation of existing 
17.20 	public roads as required by Minnesota 
17.21 	Statutes, section 103G.222, subdivision 1, 
17.22 	paragraphs (l) and (m). The board may vary 
17.23 	the priority order of Minnesota Statutes, 
17.24 	section 103G.222, subdivision 3, paragraph 
17.25 	(a), to implement an in-lieu fee agreement 
17.26 	approved by the U.S. Army Corps of 
17.27 	Engineers under section 404 of the Clean 
17.28 	Water Act. The purchase price paid for 
17.29 	acquisition of land or perpetual easement 
17.30 	must be a fair market value as determined 
17.31 	by the board. The board may enter into 
17.32 	agreements with the federal government, 
17.33 	other state agencies, political subdivisions, 
17.34 	nonprofit organizations, fee title owners, or 
17.35 	other qualified private entities to acquire 
18.1 	wetland replacement credits in accordance 
18.2 	with Minnesota Rules, chapter 8420.

18.3
18.4	Sec. 12. MINNESOTA ZOOLOGICAL 
GARDEN

18.5	Subdivision 1.Total Appropriation
 			$
	21,780,000
	
18.6 	To the Minnesota Zoological Garden Board 
18.7 	for the purposes specified in this section.

18.8	Subd. 2.Asset Preservation
 				4,000,000
	
18.9 	For capital asset preservation improvements 
18.10 	and betterments to infrastructure and 
18.11 	exhibits at the Minnesota Zoo, to be spent in 
18.12 	accordance with Minnesota Statutes, section 
18.13 	16B.307.

18.14	Subd. 3.Heart of the Zoo II
 				17,780,000
	
18.15 	To complete the Heart of the Zoo II project, 
18.16 	including renovation of the snow monkey 
18.17 	exhibit and surrounding public spaces and 
18.18 	construction of a meerkat exhibit.

18.19	Sec. 13. ADMINISTRATION

18.20	Subdivision 1.Total Appropriation
 			$
	47,428,000
	
18.21 	To the commissioner of administration for 
18.22 	the purposes specified in this section.

18.23
18.24	Subd. 2.Capitol Complex - Physical Security 
Upgrades
 				18,500,000
	
18.25 	For the design, construction, and equipping 
18.26 	required to upgrade the physical security 
18.27 	elements and systems for the buildings 
18.28 	listed below, their attached tunnel systems, 
18.29 	and their surrounding grounds, and parking 
18.30 	facilities as identified in the 2014 Minnesota 
18.31 	State Capitol Complex Physical Security 
18.32 	Study conducted by Miller Dunwiddie 
18.33 	Architecture. Work includes but is not 
19.1 	limited to the installation of bollards, blast 
19.2 	protection, infrastructure security screen 
19.3 	walls, door access controls, emergency call 
19.4 	stations, security kiosks, locking devices, 
19.5 	and traffic control. This appropriation 
19.6 	includes money for work associated with 
19.7 	the following buildings: Administration, 
19.8 	Centennial, Judicial, Ag/Health Lab, 
19.9 	Minnesota History Center, Minnesota 
19.10 	History Center Loading Dock, Capitol 
19.11 	Complex Power Plant and Shops, Stassen, 
19.12 	State Office, and Veterans Service.

19.13
19.14	Subd. 3.Capitol Complex - Physical Security 
Upgrades
 				7,700,000
	
19.15 	From the general fund in fiscal year 2017, 
19.16 	for the design, construction, and equipping 
19.17 	required to upgrade the physical security 
19.18 	elements and systems for the buildings 
19.19 	listed below, their attached tunnel systems, 
19.20 	and their surrounding grounds and parking 
19.21 	facilities as identified in the 2014 Minnesota 
19.22 	State Capitol Complex Physical Security 
19.23 	Study conducted by Miller Dunwiddie 
19.24 	Architecture. Work includes but is not 
19.25 	limited to the installation of bollards, blast 
19.26 	protection, infrastructure security screen 
19.27 	walls, door access controls, emergency call 
19.28 	stations, security kiosks, locking devices, 
19.29 	and traffic control. This appropriation 
19.30 	includes money for work associated with the 
19.31 	following buildings: Andersen, Freeman, 
19.32 	Retirement Systems, and Transportation.

19.33	Subd. 4.Centennial Parking Ramp
 				10,878,000
	
19.34 	For structural repairs throughout the 
19.35 	Centennial parking ramp, including damaged 
20.1 	post-tension cables and the vapor barrier 
20.2 	under the top deck green space, and 
20.3 	installation of a deck surface protection 
20.4 	coating and a storm water retention basin.

20.5	Subd. 5.Visitor and Staff Parking Facilities
 				6,000,000
	
20.6 	To acquire property, prepare design 
20.7 	documents and demolish existing structures, 
20.8 	complete hazardous materials abatement and 
20.9 	cleanup, and design, construct, and equip 
20.10 	additional visitor and staff surface parking 
20.11 	in the Capitol Area.

20.12
20.13	Subd. 6.Capitol Complex Monuments and 
Memorials
 				350,000
	
20.14 	To design and complete critical repairs to the 
20.15 	Peace Officers and Roy Wilkins memorials 
20.16 	located on the Capitol complex.

20.17
20.18	Subd. 7.Capital Asset Preservation and 
Replacement Account
 				2,500,000
	
20.19 	To be spent in accordance with Minnesota 
20.20 	Statutes, section 16A.632.

20.21	Subd. 8.Agency Relocation
 				1,500,000
	
20.22 	From the general fund in fiscal year 2017 to 
20.23 	relocate boards, councils, state agencies, and 
20.24 	other state entities as needed for the efficient 
20.25 	and effective operation of state government. 
20.26 	This appropriation is available until June 30, 
20.27 	2022.

20.28	Sec. 14. MN.IT
 			$
	$1,432,000
	
20.29 	To the commissioner of administration 
20.30 	to predesign, design, construct, renovate, 
20.31 	furnish, and equip existing state data 
20.32 	center facilities at the Bureau of Criminal 
20.33 	Apprehension's Maryland Avenue office 
20.34 	building and at the Department of Revenue's 
21.1 	Stassen Office Building for the purpose 
21.2 	of decommissioning and repurposing into 
21.3 	usable office space.

21.4
21.5	Sec. 15. MINNESOTA AMATEUR SPORTS 
COMMISSION

21.6	Subdivision 1.Total Appropriation
 			$
	5,582,000
	
21.7 	To the Minnesota Amateur Sports 
21.8 	Commission for the purposes specified in 
21.9 	this section.

21.10	Subd. 2.National Sports Center Expansion
 				5,082,000
	
21.11 	To prepare a site for, including demolition, 
21.12 	and to construct maintenance facilities, 
21.13 	parking lots, roads, athletic fields, and other 
21.14 	infrastructure necessary to complete the 
21.15 	tournament field expansion at the National 
21.16 	Sports Center in Blaine.

21.17	Subd. 3.Asset Preservation
 				500,000
	
21.18 	For asset preservation improvements and 
21.19 	betterments of a capital nature at the National 
21.20 	Sports Center in Blaine, to be spent in 
21.21 	accordance with Minnesota Statutes, section 
21.22 	16B.307.

21.23	Sec. 16. MILITARY AFFAIRS 

21.24	Subdivision 1.Total Appropriation
 			$
	10,500,000
	
21.25 	To the adjutant general for the purposes 
21.26 	specified in this section.

21.27	Subd. 2.Asset Preservation
 				2,500,000
	
21.28 	For asset preservation improvements and 
21.29 	betterments of a capital nature at military 
21.30 	affairs facilities statewide, to be spent in 
21.31 	accordance with Minnesota Statutes, section 
21.32 	16B.307.

22.1	Subd. 3.Metropolitan Area Armory
 				4,500,000
	
22.2 	To predesign, design, construct, furnish, 
22.3 	and equip a new National Guard Readiness 
22.4 	Center in a metropolitan county as defined 
22.5 	in Minnesota Statutes, section 473.121, 
22.6 	subdivision 4. This appropriation is intended 
22.7 	to support construction of a joint National 
22.8 	Guard Readiness Center and city of West St. 
22.9 	Paul municipal building located in the city of 
22.10 	West St. Paul, provided that the city identifies 
22.11 	suitable land to meet federal rules for armory 
22.12 	construction and agrees by the end of 2016 
22.13 	to commit sufficient local funds to complete 
22.14 	the project. In the event that the city is 
22.15 	unable to identify suitable land and commit 
22.16 	sufficient local funds within this time frame, 
22.17 	the adjutant general may select the next 
22.18 	preferred metropolitan location for a new 
22.19 	National Guard Readiness Center based on 
22.20 	the following conditions: (1) land availability 
22.21 	in accordance with federal requirements 
22.22 	for armory construction; and (2) local 
22.23 	community ability to provide sufficient funds 
22.24 	to meet federal rules for armory construction.
22.25 	This appropriation is not available until the 
22.26 	commissioner of management and budget 
22.27 	determines that an amount sufficient to 
22.28 	complete the project is committed from 
22.29 	nonstate sources.

22.30	Subd. 4.St. Cloud Armory
 				3,500,000
	
22.31 	To complete design, renovation, expansion, 
22.32 	furnishing, and equipping of the St. Cloud 
22.33 	Readiness Center. The renovation includes 
22.34 	but is not limited to: installing HVAC 
22.35 	systems, improving life/safety systems, 
23.1 	increasing energy efficiency, and upgrading 
23.2 	the facility to serve a dual gender force.

23.3	Subd. 5.Unspent Appropriations
 					
23.4 	The unspent portion of an appropriation for 
23.5 	a project in this section that is complete, 
23.6 	upon written notice to the commissioner of 
23.7 	management and budget, is available for 
23.8 	statewide asset preservation under Minnesota 
23.9 	Statutes, section 16B.307. Minnesota 
23.10 	Statutes, section 16A.642, applies from the 
23.11 	date of the original appropriation to the 
23.12 	unspent amount transferred.

23.13	Sec. 17. PUBLIC SAFETY

23.14	Subdivision 1.Total Appropriation
 			$
	39,323,000
	
23.15 	To the commissioner of public safety for the 
23.16 	purposes specified in this section.

23.17	Subd. 2.State Emergency Operations Center 
 				33,302,000
	
23.18 	For the design, site development, 
23.19 	construction, and equipping of a new 
23.20 	state emergency operations center (SEOC) 
23.21 	for the Department of Public Safety at 
23.22 	Arden Hills. The facility will serve as the 
23.23 	location for coordinating state support to 
23.24 	local governments during emergencies and 
23.25 	disasters. It will also be a critical continuity 
23.26 	of government (COG) facility for state 
23.27 	government leaders during an incident at the 
23.28 	Capitol complex.

23.29	Subd. 3.Camp Ripley Training Facility
 				3,521,000
	
23.30 	To design and construct a joint emergency 
23.31 	railroad and pipeline emergency response 
23.32 	training facility at Camp Ripley, including 
23.33 	the construction of stations and capital 
24.1 	infrastructure needed for mock disaster 
24.2 	training.

24.3
24.4	Subd. 4.Minneapolis Emergency Operations 
Training Facility (EOTF) Enhancement
 				2,500,000
	
24.5 	For a grant to the city of Minneapolis 
24.6 	for the predesign, design, engineering, 
24.7 	and construction of the expansion of the 
24.8 	Emergency Operation Center and Fire 
24.9 	Training Facility. This appropriation is 
24.10 	not available until the commissioner of 
24.11 	management and budget determines that an 
24.12 	equal amount is committed to the project 
24.13 	from nonstate sources.

24.14	Sec. 18. TRANSPORTATION

24.15	Subdivision 1.Total Appropriation
 			$
	232,178,000
	
24.16 	To the commissioner of transportation for the 
24.17 	purposes specified in this section.

24.18
24.19	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				74,795,000
	
24.20 	This appropriation is from the bond proceeds 
24.21 	account in the state transportation fund 
24.22 	to match federal money and to replace 
24.23 	or rehabilitate local deficient bridges as 
24.24 	provided in Minnesota Statutes, section 
24.25 	174.50. Of this amount:
24.26 	(1) $31,875,000 is for a grant to the city of 
24.27 	Minneapolis to design and construct a major 
24.28 	rehabilitation of the 10th Avenue SE bridge 
24.29 	over the Mississippi River; and 
24.30 	(2) $42,920,000 is for a grant to the city of 
24.31 	Saint Paul to remove the existing Kellogg 
24.32 	Boulevard bridge over the BNSF Railroad 
24.33 	and Interstate 94, acquire right-of-way, 
24.34 	design, and construct a replacement bridge 
25.1 	that includes multimodal elements for 
25.2 	bicycles, pedestrians, and transit. In addition, 
25.3 	any roadway approach reconstruction work 
25.4 	identified within the project limits, including 
25.5 	right-of-way acquisition and design, is 
25.6 	eligible for funding.

25.7
25.8	Subd. 3.Rail Grade Separation on Crude Oil 
Rail Corridors
 				69,624,000
	
25.9 	(a) To design and construct rail safety 
25.10 	projects at highway railroad grade crossings 
25.11 	in accordance with Minnesota Statutes, 
25.12 	section 219.016. Of this appropriation:
25.13 	(1) $42,262,000 is for a grant to the city 
25.14 	of Moorhead for environmental analysis, 
25.15 	design, engineering, removal of an existing 
25.16 	structure, and construction of a rail grade 
25.17 	crossing separation in the vicinity of 21st 
25.18 	Street South;
25.19 	(2) $14,762,000 is for a grant to the city of 
25.20 	Red Wing for environmental analysis, design, 
25.21 	engineering, removal of an existing structure, 
25.22 	and construction of a rail grade crossing 
25.23 	separation at Sturgeon Lake Road; and
25.24 	(3) $12,600,000 is for a grant to Anoka 
25.25 	County for environmental analysis, design, 
25.26 	engineering, removal of an existing structure, 
25.27 	and construction of a rail grade crossing 
25.28 	separation at Anoka County State-Aid 
25.29 	Highway 78, known as Hanson Boulevard, 
25.30 	in Coon Rapids.
25.31 	(b) Any unspent portion of this appropriation 
25.32 	after completion of any project in this 
25.33 	subdivision may be used for additional grants 
25.34 	in accordance with Minnesota Statutes, 
25.35 	section 219.016.

26.1	Subd. 4.Railroad Warning Devices 				
5,000,000
	
26.2 	To design, construct, and equip replacement 
26.3 	of active highway-rail grade warning devices 
26.4 	that have reached the end of their useful life.

26.5	Subd. 5.Facilities Capital Program
 				40,000,000
	
26.6 	From the bond proceeds account in the trunk 
26.7 	highway fund for the transportation facilities 
26.8 	capital program under Minnesota Statutes, 
26.9 	section 174.13, which supports the agency's 
26.10 	building infrastructure needs.

26.11	Subd. 6.Passenger Rail Program
 				1,000,000
	
26.12 	To implement capital improvements and 
26.13 	betterments for intercity passenger rail 
26.14 	projects as identified in the statewide freight 
26.15 	and passenger rail plan under Minnesota 
26.16 	Statutes, section 174.03, subdivision 1b, 
26.17 	that are determined to be eligible for United 
26.18 	States Department of Transportation funding. 
26.19 	Notwithstanding any law to the contrary, a 
26.20 	portion or phase of an intercity passenger 
26.21 	rail project may be accomplished with 
26.22 	one or more state appropriations and an 
26.23 	intercity passenger rail project need not 
26.24 	be completed with any one appropriation. 
26.25 	Capital improvements and betterments 
26.26 	include preliminary engineering, project 
26.27 	administration, design, engineering, 
26.28 	environmental analysis, and mitigation, 
26.29 	acquisition of land and right-of-way, and 
26.30 	construction.

26.31	Subd. 7.Rail Quiet Zones
 				10,000,000
	
26.32 	For grants under Minnesota Statutes, 
26.33 	section 219.166. Up to ten percent 
26.34 	of this appropriation may be used for 
27.1 	eligible activities necessary to support the 
27.2 	implementation and delivery of the program.

27.3	Subd. 8.Port Development Assistance
 				10,000,000
	
27.4 	For grants under Minnesota Statutes, chapter 
27.5 	457A. Any improvements made with the 
27.6 	proceeds of these grants must be publicly 
27.7 	owned.

27.8	Subd. 9.Duluth Airport Authority
 				5,274,000
	
27.9 	This appropriation is from the state airports 
27.10 	fund in fiscal year 2017 to provide the 
27.11 	federal match to design and construct runway 
27.12 	infrastructure at the Duluth International 
27.13 	and Sky Harbor Airports in accordance 
27.14 	with Minnesota Statutes, section 360.017. 
27.15 	For the purposes of this appropriation, the 
27.16 	commissioner may waive the requirements 
27.17 	of Minnesota Statutes, section 360.305, 
27.18 	subdivision 4, paragraph (b). This 
27.19 	appropriation is available until and must be 
27.20 	encumbered by June 30, 2017.

27.21	Subd. 10.Rochester International Airport
 				4,985,000
	
27.22 	This appropriation is from the state airports 
27.23 	fund in fiscal year 2017 to design, construct, 
27.24 	renovate, and improve the Rochester 
27.25 	International Airport, in accordance with 
27.26 	Minnesota Statutes, section 360.017. For 
27.27 	the purposes of this appropriation, the 
27.28 	commissioner may waive the requirements 
27.29 	of Minnesota Statutes, section 360.305, 
27.30 	subdivision 4, paragraph (b). This 
27.31 	appropriation is available until and must be 
27.32 	encumbered by June 30, 2017.

27.33
27.34	Subd. 11.International Falls-Koochiching 
County Airport Commission
 				3,000,000
	
28.1 	For a grant to the International 
28.2 	Falls-Koochiching County Airport 
28.3 	Commission to demolish the remainder 
28.4 	of the existing terminal building, for site 
28.5 	preparation, and to design, construct, furnish, 
28.6 	and equip Phase II of a new terminal 
28.7 	building. This appropriation is not available 
28.8 	until at least $1,500,000 is committed to the 
28.9 	project from nonstate sources.

28.10
28.11	Subd. 12.Ramsey County Rail Grade 
Separation
 				1,000,000
	
28.12 	For a grant to the Ramsey County Regional 
28.13 	Railroad Authority for environmental 
28.14 	analysis and design of rail grade separation 
28.15 	of Union Pacific and Burlington Northern 
28.16 	Santa Fe track between Westminster Junction 
28.17 	and Division Street/Hoffman Interlocking in 
28.18 	St. Paul. This appropriation is not available 
28.19 	until the commissioner determines that an 
28.20 	equal amount has been committed to the 
28.21 	project from nonstate sources.

28.22	Subd. 13.Grand Rapids Pedestrian Bridge
 				750,000
	
28.23 	For a grant to the city of Grand Rapids to 
28.24 	design the construction of a bridge over the 
28.25 	Mississippi River for pedestrian and bicycle 
28.26 	use to provide a safe alternative route to 
28.27 	the existing marked Trunk Highway 169 
28.28 	vehicle bridge, and to serve as a connection 
28.29 	to existing trail systems on each side of the 
28.30 	river. This appropriation is not available until 
28.31 	the commissioner determines that an equal 
28.32 	amount has been committed to the project 
28.33 	from nonstate sources.

28.34	Sec. 19. METROPOLITAN COUNCIL

28.35	Subdivision 1.Total Appropriation
 			$
	31,500,000
	
29.1 	To the Metropolitan Council for the purposes 
29.2 	specified in this section.

29.3
29.4	Subd. 2.Metropolitan Regional Parks and 
Trails Capital Improvements
 				10,000,000 
	
29.5 	For the cost of improvements and betterments 
29.6 	of a capital nature and acquisition by the 
29.7 	council and local government units of 
29.8 	regional recreational open-space lands in 
29.9 	accordance with the council's policy plan 
29.10 	as provided in Minnesota Statutes, section 
29.11 	473.147. This appropriation must not be 
29.12 	used to purchase easements.

29.13
29.14	Subd. 3.Metropolitan Cities Inflow and 
Infiltration Grants
 				5,000,000
	
29.15 	For grants to cities within the metropolitan 
29.16 	area, as defined in Minnesota Statutes, 
29.17 	section 473.121, subdivision 2, for capital 
29.18 	improvements in municipal wastewater 
29.19 	collection systems to reduce the amount of 
29.20 	inflow and infiltration to the Metropolitan 
29.21 	Council's metropolitan sanitary sewer 
29.22 	disposal system. Grants from this 
29.23 	appropriation are for up to 50 percent of the 
29.24 	cost to mitigate inflow and infiltration in 
29.25 	the publicly owned municipal wastewater 
29.26 	collection systems. To be eligible for a grant, 
29.27 	a city must be identified by the council 
29.28 	as a contributor of excessive inflow and 
29.29 	infiltration in the metropolitan disposal 
29.30 	system or have a measured flow rate within 20 
29.31 	percent of its allowable council-determined 
29.32 	inflow and infiltration limits. The council 
29.33 	must award grants based on applications 
29.34 	from cities that identify eligible capital 
29.35 	costs and include a timeline for inflow and 
30.1 	infiltration mitigation construction, pursuant 
30.2 	to guidelines established by the council.

30.3	Subd. 4.City of St. Paul Como Zoo Project
 				14,500,000
	
30.4 	For a grant to the city of St. Paul for 
30.5 	predesign, design, and engineering of Phase I 
30.6 	of the renovation of seal and sea lion habitat 
30.7 	at the Como Zoo. The renovated habitat 
30.8 	will support the zoo education programs. 
30.9 	This appropriation is not available until 
30.10 	the commissioner of management and 
30.11 	budget determines that at least $1,100,000 
30.12 	is committed to the project from nonstate 
30.13 	sources.

30.14	Subd. 5.Battle Creek Winter Recreation Area
 				2,135,000
	
30.15 	For a grant to Ramsey County for design 
30.16 	and construction of a winter recreation area 
30.17 	in Battle Creek Regional Park, including 
30.18 	installation of a permanent snowmaking 
30.19 	system and rope tow and construction of 
30.20 	a seasonal building. This appropriation 
30.21 	is not available until the commissioner of 
30.22 	management and budget determines that an 
30.23 	equal amount has been committed to the 
30.24 	project from nonstate sources.

30.25	Sec. 20. HEALTH
 			$
	2,335,000
	
30.26 	From the general fund in fiscal year 2017 to 
30.27 	the commissioner of health for equipment 
30.28 	and instruments for the public health 
30.29 	laboratory. This appropriation is available 
30.30 	until June 30, 2022.

30.31	Sec. 21. HUMAN SERVICES

30.32	Subdivision 1.Total Appropriation
 			$
	134,925,000
	
31.1 	To the commissioner of administration, or 
31.2 	another named agency, for the purposes 
31.3 	specified in this section.

31.4
31.5	Subd. 2.Minnesota Security Hospital - St. 
Peter
 				70,255,000
	
31.6 	To complete design, remodel, construct, 
31.7 	furnish, and equip the second phase of the 
31.8 	two-phase project to remodel existing and to 
31.9 	develop new residential, program, activity, 
31.10 	and ancillary facilities for the Minnesota 
31.11 	Security Hospital on the upper campus of the 
31.12 	St. Peter Regional Treatment Center. This 
31.13 	appropriation includes money to: demolish, 
31.14 	renovate, and remodel existing space; 
31.15 	construct new space; address fire and life 
31.16 	safety, and other building code deficiencies; 
31.17 	replace or renovate interior finishes; purchase 
31.18 	furnishings, fixtures, and equipment; replace 
31.19 	or renovate the Minnesota Security Hospital 
31.20 	building's HVAC, plumbing, electrical, 
31.21 	security, and life safety systems; tuck-point; 
31.22 	replace windows and doors; design and 
31.23 	abate asbestos and hazardous materials; and 
31.24 	complete site work necessary to support 
31.25 	the programmed use of the facilities on the 
31.26 	St. Peter Regional Treatment Center upper 
31.27 	campus. 

31.28
31.29	Subd. 3.Anoka Metro Regional Treatment 
Center Safety and Security Renovations
 				2,250,000
	
31.30 	To provide security upgrades of a capital 
31.31 	nature at the Anoka Metro Regional 
31.32 	Treatment Center campus, including but 
31.33 	not limited to control centers, electronic 
31.34 	monitoring and perimeter security 
31.35 	equipment, new or updated security fencing, 
31.36 	and other building security renovations. This 
32.1 	appropriation includes money for: predesign, 
32.2 	design, furnishing, fixtures, and equipment; 
32.3 	construction of safety and security 
32.4 	improvements to courtyards on residential 
32.5 	treatment units; securely enclosing the 
32.6 	nursing station on Unit G; and installing a 
32.7 	campus-wide closed-circuit television video 
32.8 	security system, a facility-wide personal 
32.9 	duress alarm system, a key control system, 
32.10 	and an electronic access control system.

32.11
32.12	Subd. 4.Minnesota Sex Offender Program – 
St. Peter
 				14,500,000
	
32.13 	To complete design, construct, renovate, 
32.14 	furnish, and equip the second phase of a 
32.15 	multiphase project to develop additional 
32.16 	residential, program, activity, and ancillary 
32.17 	facilities for the Minnesota Sex Offender 
32.18 	Program on the lower campus of the St. 
32.19 	Peter Regional Treatment Center. This 
32.20 	appropriation includes money to complete 
32.21 	design, renovate, construct, furnish, and 
32.22 	equip the north wing of Green Acres; the 
32.23 	west, south, and north wings of Sunrise; and 
32.24 	the Tomlinson building. This appropriation 
32.25 	also includes money to: replace or renovate 
32.26 	HVAC, plumbing, electrical, security, and life 
32.27 	safety systems; address fire and life safety, 
32.28 	and other building code deficiencies; replace 
32.29 	windows and doors; tuck-point exterior 
32.30 	building envelopes; reconfigure and remodel 
32.31 	space; design and abate asbestos and other 
32.32 	hazardous materials; remove or demolish 
32.33 	nonfunctioning building components; and 
32.34 	complete site work necessary to support the 
32.35 	programmed use of facilities.

33.1
33.2	Subd. 5.Minnesota Sex Offender Program – 
Less Restrictive Alternatives
 				12,420,000
	
33.3 	To acquire land for, and to predesign, 
33.4 	design, construct, furnish, and equip two 
33.5 	new community-based residential treatment 
33.6 	facilities, including any necessary site work, 
33.7 	for the Minnesota Sex Offender Program as 
33.8 	less restrictive alternatives to the program's 
33.9 	existing secure facilities.

33.10
33.11	Subd. 6.St. Paul - Dorothy Day Opportunity 
Center
 				12,000,000
	
33.12 	To the commissioner of human services for 
33.13 	a grant to the city of St. Paul to predesign, 
33.14 	design, construct, furnish, and equip an 
33.15 	opportunity center to serve as an integrated 
33.16 	one-stop delivery system connecting persons 
33.17 	at risk of becoming homeless, and persons 
33.18 	working to move up and out of homelessness, 
33.19 	and to provide services that improve 
33.20 	their health, income, housing stability, or 
33.21 	well-being, subject to Minnesota Statutes, 
33.22 	section 16A.695. This appropriation may be 
33.23 	used to acquire property for these purposes. 
33.24 	This appropriation is not available until the 
33.25 	commissioner of management and budget 
33.26 	has determined that at least an equal amount 
33.27 	has been committed to the project from 
33.28 	nonstate sources.

33.29
33.30	Subd. 7.Early Childhood Learning Child 
Facilities
 				20,000,000
	
33.31 	To the commissioner of human services for 
33.32 	grants under Minnesota Statutes, section 
33.33 	256E.37, to construct and rehabilitate early 
33.34 	childhood learning facilities. $5,000,000 of 
33.35 	this appropriation is from the general fund in 
33.36 	fiscal year 2017.

34.1	Subd. 8.Perspectives Family Center
 				2,000,000
	
34.2 	From the general fund to the commissioner of 
34.3 	human services in fiscal year 2017 for a grant 
34.4 	to Hennepin County to predesign, design, 
34.5 	construct, furnish, and equip the expansion 
34.6 	and renovation of the existing Perspectives 
34.7 	Family Center facility in St. Louis Park. 
34.8 	The expanded and renovated facility must 
34.9 	be used to promote the public welfare 
34.10 	by providing any or all of the following 
34.11 	programs and services: (1) supportive 
34.12 	housing programs for homeless women 
34.13 	and their children; (2) mental and chemical 
34.14 	health programs; (3) employment services; 
34.15 	(4) academic, social skills, and nutritional 
34.16 	programs for homeless and at-risk children; 
34.17 	(5) an all-day therapeutic early childhood 
34.18 	development program for homeless and 
34.19 	at-risk children; and (6) a culturally sensitive 
34.20 	safe and nurturing environment for at-risk 
34.21 	children to meet with their nonresidential 
34.22 	parents. This appropriation is not available 
34.23 	until the commissioner of management and 
34.24 	budget has determined that at least an equal 
34.25 	amount has been expended or committed to 
34.26 	the project from nonstate sources. Nonstate 
34.27 	money spent on the project since May 1, 
34.28 	2015, shall be included in the determination 
34.29 	of nonstate commitments to the project.

34.30	Subd. 9.Asset Preservation
 				1,500,000
	
34.31 	For asset preservation improvements and 
34.32 	betterments of a capital nature at Department 
34.33 	of Human Services facilities statewide, to be 
34.34 	spent in accordance with Minnesota Statutes, 
34.35 	section 16B.307.

35.1	Sec. 22. VETERANS AFFAIRS

35.2	Subdivision 1.Total Appropriation
 			$
	12,851,000
	
35.3 	To the commissioner of administration for 
35.4 	the purposes specified in this section.

35.5	Subd. 2.Asset Preservation
 				5,000,000
	
35.6 	For asset preservation improvements and 
35.7 	betterments of a capital nature at the veterans 
35.8 	homes in Minneapolis, Hastings, Fergus 
35.9 	Falls, Silver Bay, and Luverne, to be spent in 
35.10 	accordance with Minnesota Statutes, section 
35.11 	16B.307.

35.12
35.13	Subd. 3.Minneapolis Veterans Home Truss 
Bridge Project
 				7,851,000
	
35.14 	To design, construct, renovate, and equip 
35.15 	the historic truss bridge on the Minneapolis 
35.16 	Veterans Home campus, including asbestos 
35.17 	and hazardous materials abatement and 
35.18 	associated site work.

35.19	Sec. 23. CORRECTIONS

35.20	Subdivision 1.Total Appropriation
 			$
	56,653,000
	
35.21 	To the commissioner of administration for 
35.22 	the purposes specified in this section.

35.23	Subd. 2.Asset Preservation
 				20,000,000
	
35.24 	For asset preservation improvements and 
35.25 	betterments of a capital nature at Minnesota 
35.26 	correctional facilities statewide, to be spent 
35.27 	in accordance with Minnesota Statutes, 
35.28 	section 16B.307.

35.29
35.30	Subd. 3.Minnesota Correctional Facility - St. 
Cloud
 				23,400,000
	
35.31 	(a) $19,000,000 of this appropriation is to 
35.32 	construct and equip a new intake unit and 
35.33 	a loading dock with a secure connection to 
36.1 	a new central warehouse at the Minnesota 
36.2 	Correctional Facility – St. Cloud.
36.3 	(b) $4,400,000 of this appropriation is to 
36.4 	remove and replace deteriorated mortar with 
36.5 	new mortar on the granite perimeter wall 
36.6 	surrounding the Minnesota Correctional 
36.7 	Facility – St. Cloud.

36.8
36.9	Subd. 4.Minnesota Correctional Facility - 
Willow River
 				1,500,000
	
36.10 	To design, construct, renovate, furnish, and 
36.11 	equip new and existing buildings to increase 
36.12 	living unit and programming capacity for 
36.13 	the challenge incarceration program by at 
36.14 	least 45 beds at the Minnesota Correctional 
36.15 	Facility – Willow River.

36.16	Subd. 5.Minnesota Correctional Facility - Togo
 				2,000,000
	
36.17 	To design, construct, renovate, furnish, 
36.18 	and equip existing buildings, including 
36.19 	improvements to the wastewater and septic 
36.20 	systems, and to increase the program capacity 
36.21 	for the challenge incarceration program by at 
36.22 	least 30 beds at the Minnesota Correctional 
36.23 	Facility – Togo.

36.24
36.25	Subd. 6.Minnesota Correctional Facility - 
Lino Lakes
 				5,000,000
	
36.26 	To design, renovate, and equip an existing 
36.27 	vacant building into an offender living unit 
36.28 	that will add at least 60 beds to the capacity 
36.29 	at the Minnesota Correctional Facility – Lino 
36.30 	Lakes. The renovation includes removal of 
36.31 	hazardous materials, upgrades to comply 
36.32 	with current building codes, and construction 
36.33 	of functional living and program space.

36.34
36.35	Subd. 7.Minnesota Correctional Facility - 
Moose Lake
 				1,900,000
	
37.1 	To expand and renovate the outdated master 
37.2 	control center to improve security and 
37.3 	efficiency at the Minnesota Correctional 
37.4 	Facility – Moose Lake. The renovation 
37.5 	includes updating fire alarm panels and 
37.6 	mechanical and electrical systems and 
37.7 	improving visibility of the visiting area.

37.8
37.9	Subd. 8.Northeast Regional Corrections 
Center
 				2,853,000
	
37.10 	For a grant to the Arrowhead Regional 
37.11 	Corrections Joint Powers Board to demolish 
37.12 	an existing facility and update, renovate, and 
37.13 	expand buildings used for vocational and 
37.14 	educational programming at the Northeast 
37.15 	Regional Corrections Center. This project 
37.16 	will expand the processing facility, add 
37.17 	a packaging facility, and improve farm 
37.18 	operations and vocational buildings, 
37.19 	including the replacement or repair of 
37.20 	roofs and air handling systems. Nonstate 
37.21 	contributions to improvements at the center 
37.22 	made before or after the enactment of this 
37.23 	subdivision are considered to be a sufficient 
37.24 	match, and no further nonstate match is 
37.25 	required.

37.26	Subd. 9.Unspent Appropriations
 					
37.27 	The unspent portion of an appropriation for 
37.28 	a Department of Corrections project in this 
37.29 	section that is complete, upon written notice 
37.30 	to the commissioner of management and 
37.31 	budget, is available for asset preservation 
37.32 	under Minnesota Statutes, section 16B.307. 
37.33 	Minnesota Statutes, section 16A.642, applies 
37.34 	from the date of the original appropriation to 
37.35 	the unspent amount transferred.

38.1
38.2	Sec. 24. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

38.3	Subdivision 1.Total Appropriation
 			$
	110,274,000
	
38.4 	To the commissioner of employment and 
38.5 	economic development for the purposes 
38.6 	specified in this section.

38.7	Subd. 2.Asset Preservation
 				1,342,000
	
38.8 	For asset preservation improvements and 
38.9 	betterments of a capital nature at the South 
38.10 	Minneapolis WorkForce Center, to be spent 
38.11 	in accordance with Minnesota Statutes, 
38.12 	section 16B.307. 

38.13
38.14	Subd. 3.Transportation Economic 
Development 
 				10,000,000
	
38.15 	For grants under Minnesota Statutes, section 
38.16 	116J.436.

38.17
38.18	Subd. 4.Innovative Business Development 
Public Infrastructure Grants 
 				5,000,000
	
38.19 	For grants under Minnesota Statutes, section 
38.20 	116J.435.

38.21
38.22	Subd. 5.Greater Minnesota Business 
Development Public Infrastructure Grants
 				21,000,000
	
38.23 	For grants under Minnesota Statutes, section 
38.24 	116J.431.

38.25	Subd. 6.Bemidji - Regional Dental Facility
 				6,000,000
	
38.26 	For a grant to the city of Bemidji to acquire 
38.27 	land for and to predesign, design, construct, 
38.28 	renovate, furnish, and equip a regional dental 
38.29 	facility in Bemidji, subject to Minnesota 
38.30 	Statutes, section 16A.695. This appropriation 
38.31 	is not available until the commissioner of 
38.32 	management and budget has determined that 
38.33 	at least $3,000,000 has been committed to 
38.34 	the project from nonstate sources. The value 
39.1 	of the land purchased or acquired by the city 
39.2 	after January 1, 2016, for this facility shall 
39.3 	count toward the nonstate match.

39.4	Subd. 7.Duluth - Steam Plant
 				21,000,000
	
39.5 	For a grant to the city of Duluth to 
39.6 	complete the design of and to renovate, 
39.7 	construct, furnish, and equip an upgrade 
39.8 	to the municipal district heating facility 
39.9 	and systems, including conversion of the 
39.10 	distribution system along Superior Street 
39.11 	from steam, with no condensate return, to 
39.12 	closed-loop hot water, subject to Minnesota 
39.13 	Statutes, section 16A.695. This appropriation 
39.14 	is not available until the commissioner of 
39.15 	management and budget determines that an 
39.16 	amount sufficient to complete the project is 
39.17 	committed from nonstate sources.

39.18
39.19	Subd. 8.Hennepin County - Regional Medical 
Examiner's Facility
 				25,932,000
	
39.20 	For a grant to Hennepin County to design, 
39.21 	construct, furnish, and equip a 67,000 
39.22 	square foot regional, state-of-the-art medical 
39.23 	examiner's facility. The facility shall: (1) 
39.24 	provide forensic death investigation and 
39.25 	autopsy services for Dakota, Hennepin, 
39.26 	and Scott Counties with the flexibility to 
39.27 	accommodate future partner counties and 
39.28 	agencies; (2) serve as a teaching facility 
39.29 	for the state, on the science of forensic 
39.30 	pathology; and (3) be located in southern 
39.31 	Hennepin County at a site that best supports 
39.32 	access needs for the three founding counties 
39.33 	and reasonable scene response times for the 
39.34 	geographic service area. This appropriation 
39.35 	is not available until the commissioner of 
40.1 	management and budget determines that an 
40.2 	amount sufficient to complete the project has 
40.3 	been committed from nonstate sources.

40.4
40.5	Subd. 9.Polk County - North Country Food 
Bank in Crookston
 				3,000,000
	
40.6 	For a grant to Polk County to predesign, 
40.7 	design, construct, renovate, furnish, and 
40.8 	equip a regional charitable food warehouse, 
40.9 	distribution, and office facility in the city of 
40.10 	Crookston, subject to Minnesota Statutes, 
40.11 	section 16A.695. This appropriation is 
40.12 	not available until the commissioner of 
40.13 	management and budget determines that an 
40.14 	equal amount has been committed to the 
40.15 	project from nonstate sources. The value of 
40.16 	the land purchased or acquired by the county 
40.17 	after January 1, 2013, for this facility shall 
40.18 	count toward the nonstate match.

40.19	Subd. 10.Red Wing - River Town Renaissance
 				4,000,000
	
40.20 	For a grant to the city of Red Wing to 
40.21 	complete removal and replacement of 250 
40.22 	lineal feet of the harbor retaining wall; to 
40.23 	design, construct, furnish, and equip the 
40.24 	renovation of the historic T.B. Sheldon 
40.25 	Performing Arts Theater; and to design 
40.26 	and construct transient riverboat docking 
40.27 	facilities, levee wall extension, and levee 
40.28 	promenade improvements at Levee Park. 
40.29 	This appropriation is not available until the 
40.30 	commissioner of management and budget 
40.31 	determines that an amount sufficient to 
40.32 	complete the project has been committed 
40.33 	from nonstate sources.

40.34
40.35	Subd. 11.St. Paul - Science Museum of 
Minnesota Building Preservation
 				13,000,000
	
41.1 	For a grant to the city of St. Paul for 
41.2 	predesign, design, and construction work 
41.3 	to replace water-damaged elements of the 
41.4 	Science Museum of Minnesota's exterior 
41.5 	envelope and some resultant interior damage 
41.6 	caused by latent design and construction 
41.7 	defects, subject to Minnesota Statutes, section 
41.8 	16A.695. This appropriation is not available 
41.9 	until the commissioner of management and 
41.10 	budget determines that an equal amount has 
41.11 	been committed to the project from nonstate 
41.12 	sources. Capital costs paid by the Science 
41.13 	Museum of Minnesota since January 1, 2014, 
41.14 	relating to the water intrusion damage, shall 
41.15 	count towards the match requirement.

41.16
41.17	Sec. 25. IRON RANGE RESOURCES AND 
REHABILITATION BOARD
 			$
	5,000,000
	
41.18 	To the Iron Range Resources and 
41.19 	Rehabilitation Board to design, acquire, 
41.20 	construct, and equip new high-speed aerial 
41.21 	lifts at Giants Ridge.

41.22	Sec. 26. PUBLIC FACILITIES AUTHORITY

41.23	Subdivision 1.Total Appropriation
 			$
	167,000,000
	
41.24 	To the Public Facilities Authority for the 
41.25 	purposes specified in this section.

41.26	Subd. 2.State Match for Federal Grants
 				25,000,000
	
41.27 	To match federal grants for the clean water 
41.28 	revolving fund under Minnesota Statutes, 
41.29 	section 446A.07, and the drinking water 
41.30 	revolving fund under Minnesota Statutes, 
41.31 	section 446A.081. This appropriation must 
41.32 	be used for qualified capital projects.

41.33
41.34	Subd. 3.Water Infrastructure Funding 
Program
 				80,000,000
	
42.1 	(a) For grants to eligible municipalities under 
42.2 	the water infrastructure funding program 
42.3 	under Minnesota Statutes, section 446A.072.
42.4 	(b) $55,000,000 is for wastewater projects 
42.5 	listed on the Pollution Control Agency's 
42.6 	project priority list in the fundable range 
42.7 	under the clean water revolving fund 
42.8 	program.
42.9 	(c) $25,000,000 is for drinking water projects 
42.10 	listed on the Department of Health's project 
42.11 	priority list in the fundable range under the 
42.12 	drinking water revolving fund program.
42.13 	(d) After all eligible projects under 
42.14 	paragraph (b) or (c) have been funded, the 
42.15 	Public Facilities Authority may transfer 
42.16 	any remaining, uncommitted money to 
42.17 	eligible projects under a program defined in 
42.18 	paragraph (b) or (c) based on that program's 
42.19 	project priority list.

42.20
42.21	Subd. 4.Point Source Implementation Grants 
Program
 				62,000,000
	
42.22 	For grants to eligible municipalities under the 
42.23 	point source implementation grants program 
42.24 	under Minnesota Statutes, section 446A.073. 
42.25 	This appropriation must be used for qualified 
42.26 	capital projects.

42.27
42.28	Sec. 27. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	20,000,000
	
42.29 	For transfer to the housing development 
42.30 	fund to finance the costs of rehabilitation to 
42.31 	preserve public housing under Minnesota 
42.32 	Statutes, section 462A.202, subdivision 
42.33 	3a. For purposes of this section, "public 
42.34 	housing" means housing for low-income 
42.35 	persons and households financed by the 
43.1 	federal government and owned and operated 
43.2 	by the public housing authorities and 
43.3 	agencies formed by cities and counties. 
43.4 	Public housing authorities receiving a public 
43.5 	housing assessment composite score of 80 
43.6 	or above or an equivalent designation are 
43.7 	eligible to receive funding. Priority must be 
43.8 	given to proposals that maximize federal or 
43.9 	local resources to finance the capital costs. 
43.10 	The priority in Minnesota Statutes, section 
43.11 	462A.202, subdivision 3a, for projects to 
43.12 	increase the supply of affordable housing and 
43.13 	the restrictions of Minnesota Statutes, section 
43.14 	462A.202, subdivision 7, do not apply to this 
43.15 	appropriation.

43.16
43.17	Sec. 28. MINNESOTA HISTORICAL 
SOCIETY

43.18	Subdivision 1.Total Appropriation
 			$
	36,500,000
	
43.19 	To the Minnesota Historical Society for the 
43.20 	purposes specified in this section.

43.21	Subd. 2.Historic Fort Snelling
 				34,000,000
	
43.22 	(a) To design, renovate, construct, furnish, 
43.23 	and equip facilities to support visitor services 
43.24 	and history programs at Historic Fort 
43.25 	Snelling.
43.26 	(b) This appropriation includes up to 
43.27 	$4,000,000 to design facilities to support 
43.28 	visitor services and history programs at 
43.29 	Historic Fort Snelling. Money for design is 
43.30 	available the day following final enactment 
43.31 	and is not contingent on demonstrating a 
43.32 	nonstate contribution to the project. Upon 
43.33 	completion of the design, the unspent portion 
43.34 	of the amount specified in this paragraph is 
43.35 	available for the purposes of paragraph (c).
44.1 	(c) The balance of this appropriation is to 
44.2 	demolish the existing visitor center, renovate, 
44.3 	construct, furnish, and equip facilities, 
44.4 	including landscaping and wayfinding, at 
44.5 	Historic Fort Snelling. This appropriation 
44.6 	is not available until the commissioner of 
44.7 	management and budget determines that an 
44.8 	amount sufficient to complete the project has 
44.9 	been committed from nonstate sources.

44.10	Subd. 3.Historic Sites Asset Preservation
 				2,500,000
	
44.11 	For capital improvements and betterments 
44.12 	at state historic sites, buildings, landscaping 
44.13 	at historic buildings, exhibits, markers, and 
44.14 	monuments, to be spent in accordance with 
44.15 	Minnesota Statutes, section 16B.307. The 
44.16 	society shall determine project priorities as 
44.17 	appropriate based on need.

44.18	Sec. 29. BOND SALE EXPENSES

44.19	Subdivision 1.Total Appropriation
 			$
	1,414,000
	
44.20 	To the commissioner of management and 
44.21 	budget for the purposes specified in this 
44.22 	section.

44.23	Subd. 2.Bond Proceeds Fund
 				1,374,000
	
44.24 	From the bond proceeds fund for bond sale 
44.25 	expenses under Minnesota Statutes, section 
44.26 	16A.641, subdivision 8.

44.27	Subd. 3.Trunk Highway Fund
 				40,000
	
44.28 	From the bond proceeds account in the 
44.29 	trunk highway fund for bond sale expenses 
44.30 	under Minnesota Statutes, sections 16A.641, 
44.31 	subdivision 8, and 167.50, subdivision 4.

44.32 	Sec. 30. BOND SALE AUTHORIZATION.
 45.1 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
45.2 	from the bond proceeds fund, the commissioner of management and budget shall sell and 
45.3 	issue bonds of the state in an amount up to $1,305,210,000 in the manner, upon the terms, 
45.4 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 
45.5 	by the Minnesota Constitution, article XI, sections 4 to 7.
45.6 		Subd. 2.Transportation fund. To provide the money appropriated in this act from 
45.7 	the state transportation fund, the commissioner of management and budget shall sell and 
45.8 	issue bonds of the state in an amount up to $74,795,000 in the manner, upon the terms, 
45.9 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 
45.10 	by the Minnesota Constitution, article XI, sections 4 to 7.
45.11 		Subd. 3.Trunk highway fund. To provide the money appropriated in this act from 
45.12 	the bond proceeds account in the trunk highway fund, the commissioner of management 
45.13 	and budget shall sell and issue bonds of the state in an amount up to $40,040,000 in the 
45.14 	manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 
45.15 	167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times 
45.16 	and in the amounts requested by the commissioner of transportation. The proceeds of the 
45.17 	bonds, except accrued interest and any premium received from the sale of the bonds, must 
45.18 	be deposited in the bond proceeds account in the trunk highway fund.
45.19 		Subd. 4.Maximum effort school loan fund. To provide the money appropriated 
45.20 	in this act from the maximum effort school loan fund, the commissioner of management 
45.21 	and budget shall sell and issue bonds of the state in an amount up to $14,070,000 in the 
45.22 	manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 
45.23 	16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.

45.24 	Sec. 31. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 45.25 	(a) The bond sale authorization in Laws 1990, chapter 610, article 1, section 30, 
45.26 	subdivision 1, as amended, is reduced by $3,129.
45.27 	(b) The bond sale authorization in Laws 1994, chapter 643, section 31, subdivision 
45.28 	1, as amended, is reduced by $24,480.
45.29 	(c) The bond sale authorization in Laws 1997, Second Special Session chapter 2, 
45.30 	section 12, as amended, is reduced by $96,992.
45.31 	(d) The bond sale authorization in Laws 1999, chapter 240, article 1, section 13, 
45.32 	subdivision 1, as amended, is reduced by $212,472.
45.33 	(e) The bond sale authorization in Laws 2000, chapter 492, article 1, section 26, 
45.34 	subdivision 1, as amended, is reduced by $7,933,538.
46.1 	(f) The bond sale authorization in Laws 2002, chapter 393, section 30, subdivision 
46.2 	1, as amended, is reduced by $188,471.
46.3 	(g) The bond sale authorization in Laws 2002, First Special Session chapter 1, 
46.4 	section 9, subdivision 1, s reduced by $217,959.
46.5 	(h) The bond sale authorization in Laws 2003, First Special Session chapter 19, 
46.6 	article 3, section 2, is reduced by $201,530.
46.7 	(i) The bond sale authorization in Laws 2003, First Special Session chapter 19, 
46.8 	article 4, section 4, is reduced by $326,534.
46.9 	(j) The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 
46.10 	subdivision 1, as amended, is reduced by $3,366,628.

46.11 	Sec. 32. BOND SALE SCHEDULE.
 46.12 	The commissioner of management and budget shall schedule the sale of state 
46.13 	general obligation bonds so that, during the biennium ending June 30, 2017, no more 
46.14 	than $1,247,752,000 will need to be transferred from the general fund to the state bond 
46.15 	fund to pay principal and interest due and to become due on outstanding state general 
46.16 	obligation bonds. During the biennium, before each sale of state general obligation bonds, 
46.17 	the commissioner of management and budget shall calculate the amount of debt service 
46.18 	payments needed on bonds previously issued and shall estimate the amount of debt service 
46.19 	payments that will be needed on the bonds scheduled to be sold. The commissioner shall 
46.20 	adjust the amount of bonds scheduled to be sold so as to remain within the limit set by this 
46.21 	section. The amount needed to make the debt service payments is appropriated from the 
46.22 	general fund as provided in Minnesota Statutes, section 16A.641.

46.23 	Sec. 33. EFFECTIVE DATE.
 46.24 	Except as otherwise provided, this article is effective the day following final 
46.25 	enactment.

46.26 	ARTICLE 2
46.27 	MISCELLANEOUS

46.28 	Section 1. Minnesota Statutes 2015 Supplement, section 16A.967, is amended to read:
46.29 	16A.967 LEWIS AND CLARK APPROPRIATION BONDS.
46.30 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
46.31 	section.
47.1 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument 
47.2 	of the state payable during a biennium from one or more of the following sources:
47.3 	(1) money appropriated by law from the general fund in any biennium for debt 
47.4 	service due with respect to obligations described in subdivision 2, paragraph (c) 
47.5 	subdivisions 2a and 2b;
47.6 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c) 
47.7 	subdivisions 2a and 2b;
47.8 	(3) payments received for that purpose under agreements and ancillary arrangements 
47.9 	described in subdivision 2, paragraph (e) (d); and
47.10 	(4) investment earnings on amounts in clauses (1) to (3).
47.11 	(c) "Debt service" means the amount payable in any biennium of principal, premium, 
47.12 	if any, and interest on appropriation bonds.
47.13 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations 
47.14 	of this subdivision, the commissioner may sell and issue appropriation bonds of the state 
47.15 	under this section for public purposes as provided by law, including, in particular, the 
47.16 	financing of the land acquisition, design, engineering, and construction of facilities and 
47.17 	infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water 
47.18 	System project, including completion of the pipeline to Magnolia, extension of the project 
47.19 	to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, 
47.20 	design, and easement acquisition for the final phase of the project to Worthington. No 
47.21 	bonds shall be sold until the commissioner determines that a nonstate match of at least 
47.22 	$9,000,000 is committed to this project phase. Grant agreements entered into under this 
47.23 	section must provide for reimbursement to the state from any federal money provided for 
47.24 	the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.
47.25 	(b) The appropriation bonds may be issued and sold only after the commissioner 
47.26 	determines that the construction and administration for work done on the project will 
47.27 	comply with (1) all federal requirements and regulations associated with the Lewis and 
47.28 	Clark Rural Water System Act of 2000, and (2) the cooperative agreement between the 
47.29 	United States Department of the Interior and the Lewis and Clark Regional Water System, 
47.30 	Inc. Proceeds of the appropriation bonds must be credited to a special appropriation Lewis 
47.31 	and Clark bond proceeds fund in the state treasury. All income from investment of the 
47.32 	bond proceeds, as estimated by the commissioner, is appropriated to the commissioner for 
47.33 	the payment of principal and interest on the appropriation bonds.
47.34 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of 
47.35 	the commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 
47.36 	net of costs of issuance, for the purposes as provided under paragraph (a), and pay debt 
48.1 	service including capitalized interest, costs of issuance, costs of credit enhancement, or 
48.2 	make payments under other agreements entered into under paragraph (e).
48.3 	(d) (c) Appropriation bonds may be issued in one or more issues or series on the 
48.4 	terms and conditions the commissioner determines to be in the best interests of the 
48.5 	state, but the term on any series of appropriation bonds may not exceed 25 years. The 
48.6 	appropriation bonds of each issue and series thereof shall be dated and bear interest, 
48.7 	and may be includable in or excludable from the gross income of the owners for federal 
48.8 	income tax purposes.
48.9 	(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at 
48.10 	any time thereafter, so long as the appropriation bonds are outstanding, the commissioner 
48.11 	may enter into agreements and ancillary arrangements relating to the appropriation bonds, 
48.12 	including but not limited to trust indentures, grant agreements, lease or use agreements, 
48.13 	operating agreements, management agreements, liquidity facilities, remarketing or 
48.14 	dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 
48.15 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
48.16 	payments made or received according to the agreement or ancillary arrangement shall be 
48.17 	made from or deposited as provided in the agreement or ancillary arrangement. The 
48.18 	determination of the commissioner included in an interest exchange agreement that the 
48.19 	agreement relates to an appropriation bond shall be conclusive.
48.20 	(f) (e) The commissioner may enter into written agreements or contracts relating 
48.21 	to the continuing disclosure of information necessary to comply with or facilitate the 
48.22 	issuance of appropriation bonds in accordance with federal securities laws, rules, and 
48.23 	regulations, including Securities and Exchange Commission rules and regulations in Code 
48.24 	of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form 
48.25 	of covenants with purchasers and holders of appropriation bonds set forth in the order or 
48.26 	resolution authorizing the issuance of the appropriation bonds, or a separate document 
48.27 	authorized by the order or resolution.
48.28 	(g) (f) The appropriation bonds are not subject to chapter 16C.
48.29 		Subd. 2a.Project authorization. Appropriation bonds may be sold and issued in 
48.30 	amounts that, in the opinion of the commissioner, are necessary to provide sufficient 
48.31 	money to the Public Facilities Authority under subdivision 7, paragraph (a), not to exceed 
48.32 	$19,000,000 net of costs of issuance, for the purposes as provided under this subdivision, 
48.33 	and pay debt service including capitalized interest, costs of issuance, costs of credit 
48.34 	enhancement, or make payments under other agreements entered into under subdivision 2, 
48.35 	paragraph (d). The bonds authorized by this subdivision are for the purposes of financing 
48.36 	the land acquisition, design, engineering, and construction of facilities and infrastructure 
49.1 	necessary to complete Phase 2 of the Lewis and Clark Regional Water System project, 
49.2 	including completion of the pipeline to Magnolia; extension of the project to the 
49.3 	Lincoln-Pipestone Rural Water System connection near Adrian; and engineering, design, 
49.4 	and easement acquisition for the final phase of the project to Worthington. No bonds shall 
49.5 	be sold under this subdivision until the commissioner determines that a nonstate match 
49.6 	of at least $9,000,000 is committed to this project phase.
49.7 		Subd. 2b.Additional project authorization. Appropriation bonds may be sold 
49.8 	and issued in amounts that, in the opinion of the commissioner, are necessary to provide 
49.9 	sufficient money to the Public Facilities Authority under subdivision 7, paragraph (b), 
49.10 	not to exceed $11,500,000 net of costs of issuance, for the purposes as provided under 
49.11 	this subdivision, and pay debt service including capitalized interest, costs of issuance, 
49.12 	costs of credit enhancement, or make payments under other agreements entered into 
49.13 	under subdivision 2, paragraph (d). The bonds authorized by this subdivision are for 
49.14 	the purposes of financing the land acquisition, design, engineering, and construction of 
49.15 	facilities and infrastructure necessary to complete Phase 3 of the Lewis and Clark Regional 
49.16 	Water System project, including extension of the project from the Lincoln-Pipestone 
49.17 	Rural Water System connection near Adrian to Worthington, construction of a reservoir 
49.18 	in Nobles County and a meter building in Worthington, and acquisition and installation 
49.19 	of a supervisory control and data acquisition (SCADA) system. No bonds shall be sold 
49.20 	under this subdivision until the commissioner determines that a nonstate match of at least 
49.21 	$9,000,000 is committed to the final phase of the project.
49.22 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form 
49.23 	of bonds, notes, or other similar instruments, and in the manner provided in section 
49.24 	16A.672. In the event that any provision of section 16A.672 conflicts with this section, 
49.25 	this section shall control.
49.26 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
49.27 	established in subdivision 6.
49.28 	(c) Appropriation bonds may be sold at either public or private sale upon such terms 
49.29 	as the commissioner shall determine are not inconsistent with this section and may be sold 
49.30 	at any price or percentage of par value. Any bid received may be rejected.
49.31 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
49.32 	(e) Notwithstanding any other law, appropriation bonds issued under this section 
49.33 	shall be fully negotiable.
49.34 		Subd. 4.Refunding bonds. The commissioner may issue appropriation bonds 
49.35 	for the purpose of refunding any appropriation bonds then outstanding, including the 
49.36 	payment of any redemption premiums on the bonds, any interest accrued or to accrue to 
50.1 	the redemption date, and costs related to the issuance and sale of the refunding bonds. The 
50.2 	proceeds of any refunding bonds may, in the discretion of the commissioner, be applied 
50.3 	to the purchase or payment at maturity of the appropriation bonds to be refunded, to the 
50.4 	redemption of the outstanding appropriation bonds on any redemption date, or to pay 
50.5 	interest on the refunding bonds and may, pending application, be placed in escrow to be 
50.6 	applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds, 
50.7 	pending such use, may be invested and reinvested in obligations that are authorized 
50.8 	investments under section 11A.24. The income earned or realized on the investment may 
50.9 	also be applied to the payment of the appropriation bonds to be refunded or interest or 
50.10 	premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds. 
50.11 	After the terms of the escrow have been fully satisfied, any balance of the proceeds and 
50.12 	any investment income may be returned to the general fund or, if applicable, the special 
50.13 	appropriation Lewis and Clark bond proceeds fund for use in any lawful manner. All 
50.14 	refunding bonds issued under this subdivision must be prepared, executed, delivered, and 
50.15 	secured by appropriations in the same manner as the appropriation bonds to be refunded.
50.16 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities 
50.17 	may legally invest any sinking funds, money, or other funds belonging to them or under 
50.18 	their control in any appropriation bonds issued under this section:
50.19 	(1) the state, the investment board, public officers, municipal corporations, political 
50.20 	subdivisions, and public bodies;
50.21 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
50.22 	savings banks and institutions, investment companies, insurance companies, insurance 
50.23 	associations, and other persons carrying on a banking or insurance business; and
50.24 	(3) personal representatives, guardians, trustees, and other fiduciaries.
50.25 		Subd. 6.No full faith and credit; state not required to make appropriations. The 
50.26 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
50.27 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
50.28 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
50.29 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
50.30 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
50.31 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
50.32 	for any fiscal year, provided that nothing in this section shall be construed to require the 
50.33 	state to appropriate money sufficient to make debt service payments with respect to the 
50.34 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall 
50.35 	no longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
51.1 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
51.2 	of final payment of the principal of and interest on the appropriation bonds.
51.3 		Subd. 7.Appropriation of proceeds. (a) The proceeds of appropriation bonds 
51.4 	issued under subdivision 2a and interest credited to the special appropriation Lewis and 
51.5 	Clark bond proceeds fund are appropriated as follows:
51.6 	(1) to the commissioner Public Facilities Authority for a grant to the Lewis and 
51.7 	Clark Joint Powers Board for payment of capital expenses for the purposes provided by as 
51.8 	specified in subdivision 2, paragraph (a), 2a; and
51.9 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
51.10 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 
51.11 	payments under any agreements entered into under subdivision 2, paragraph (e) (d), each 
51.12 	as permitted by state and federal law, and such proceeds may be granted, loaned, or 
51.13 	otherwise provided for the public purposes provided by subdivision 2, paragraph (a).
51.14 	(b) The proceeds of appropriation bonds issued under subdivision 2b and interest 
51.15 	credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated 
51.16 	as follows:
51.17 	(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 
51.18 	Board for payment of capital expenses as specified in subdivision 2b; and
51.19 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
51.20 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 
51.21 	payments under any agreements entered into under subdivision 2, paragraph (d), each as 
51.22 	permitted by state and federal law.
51.23 		Subd. 8.Appropriation for debt service and other purposes. (a) An amount, up 
51.24 	to $1,351,000 needed to pay principal and interest on appropriation bonds issued under 
51.25 	this section subdivision 2a is appropriated each fiscal year from the general fund to the 
51.26 	commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
51.27 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
51.28 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
51.29 	appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.
51.30 	(b) An amount up to $855,000 needed to pay principal and interest on appropriation 
51.31 	bonds issued under subdivision 2b is appropriated each fiscal year from the general fund to 
51.32 	the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
51.33 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
51.34 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
51.35 	appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.
52.1 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for 
52.2 	by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any 
52.3 	ancillary contracts to which the commissioner is a party.

52.4 	Sec. 2. [174.13] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
52.5 		Subdivision 1.Establishment; accounts. (a) A transportation facilities capital 
52.6 	program is established to prioritize among eligible projects that:
52.7 	(1) support the programmatic mission of the department;
52.8 	(2) extend the useful life of existing buildings; or
52.9 	(3) renovate or construct facilities to meet the department's current and future 
52.10 	operational needs.
52.11 	Projects under the transportation facilities capital program are funded by proceeds from 
52.12 	the sale of trunk highway bonds or from other funds appropriated for the purposes of 
52.13 	this section.
52.14 	(b) A transportation facilities capital account is established in the trunk highway 
52.15 	fund. The account consists of all money appropriated from the trunk highway fund 
52.16 	for the purposes of this section and any other money donated, allotted, transferred, or 
52.17 	otherwise provided to the account by law. Money in the account is appropriated to the 
52.18 	commissioner for the purposes specified and consistent with the standards and criteria 
52.19 	set forth in this section.
52.20 	(c) A transportation facilities capital account is established in the bond proceeds 
52.21 	account of the trunk highway fund. The account consists of trunk highway bond proceeds 
52.22 	appropriated to the commissioner. Money in the account may only be expended on trunk 
52.23 	highway purposes, which includes the purposes in this section.
52.24 		Subd. 2.Standards. (a) Article XIV, section 11, of the Minnesota Constitution 
52.25 	states that trunk highway bonds may be issued to finance the construction, improvement, 
52.26 	and maintenance of the public highway system in the state. The legislature assumes that 
52.27 	many projects for preservation and replacement of portions of existing capital assets 
52.28 	constitute the construction, improvement, and maintenance of the public highway system 
52.29 	within the meaning of the Minnesota Constitution and capital expenditures under generally 
52.30 	accepted accounting principles, and shall be financed more efficiently and economically 
52.31 	under the program than by direct appropriations for specific projects.
52.32 	(b) When allocating funding under this section, the commissioner must review the 
52.33 	projects deemed eligible under subdivision 3 and prioritize allocations using the criteria in 
52.34 	subdivision 4. Money allocated to a specific project in an act of appropriation or other law 
52.35 	must be allocated as provided by the law.
53.1 		Subd. 3.Eligible expenditures; limitations. (a) A project is eligible under this 
53.2 	section only if it is a capital expenditure on a capital building asset owned or to be owned 
53.3 	by the state within the meaning of accepted accounting principles as applied to public 
53.4 	expenditures.
53.5 	(b) Capital budget expenditures that are eligible under this section include, but 
53.6 	are not limited to: acquisition of land and buildings, and the predesign, engineering, 
53.7 	construction, furnishing and equipping of district headquarter buildings, truck stations, 
53.8 	salt storage or other unheated storage buildings, deicing and anti-icing facilities, fuel 
53.9 	dispensing facilities, highway rest areas, and vehicle weigh and inspection stations.
53.10 		Subd. 4.Criteria for priorities. When prioritizing funding allocation among 
53.11 	projects eligible under subdivision 3, the commissioner must consider:
53.12 	(1) whether a project ensures the effective and efficient condition and operation 
53.13 	of the facility;
53.14 	(2) the urgency in ensuring the safe use of existing buildings;
53.15 	(3) the project's total life-cycle cost;
53.16 	(4) additional criteria for priorities otherwise specified in state law, statute, or rule 
53.17 	that applies to a category listed in the act making an appropriation for the program; and
53.18 	(5) any other criteria the commissioner deems necessary

53.19 	Sec. 3. [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY 
53.20 	ACCOUNT.
53.21 		Subdivision 1.Purpose. A hazardous materials rail safety program is established 
53.22 	for the purpose of reducing the risks associated with the transportation of hazardous 
53.23 	material by rail.
53.24 		Subd. 2.Creation of account. A hazardous materials rail safety program account is 
53.25 	established in the bond proceeds fund. Money in the account may only be used for capital 
53.26 	costs associated with planning, engineering, administration, and construction of public 
53.27 	highway-rail grade crossing improvements on rail corridors transporting crude oil and 
53.28 	other hazardous materials. Improvements may include upgrades to existing protection 
53.29 	systems, the closing of crossings and necessary roadwork, and reconstruction of at-grade 
53.30 	crossings to full grade separations.
53.31 		Subd. 3.Grants. The commissioner may approve grants for financial assistance to 
53.32 	eligible applicants for capital costs associated with hazardous materials rail safety projects 
53.33 	on public highway-rail grade crossings. Qualifying capital costs include, but are not 
53.34 	limited to, upgrades to existing protection systems, the closing of crossings and necessary 
53.35 	roadwork, and reconstruction of at-grade crossings to full grade separations.
54.1 		Subd. 4.Eligible applicants. Counties, statutory or home rule charter cities, or 
54.2 	towns that are responsible for establishing and maintaining public highway-rail grade 
54.3 	crossings on rail corridors transporting crude oil and other hazardous materials may apply 
54.4 	to the commissioner for financial assistance for the purposes in this section.
54.5 		Subd. 5.Criteria for grant award. The commissioner shall consider the following 
54.6 	criteria to evaluate applications for a grant award for a hazardous materials rail safety 
54.7 	project:
54.8 	(1) whether the crossing was identified as a potential candidate for grade separation 
54.9 	in MnDOT's crude by rail grade crossing study (Improvements to Highway Grade 
54.10 	Crossings and Rail Safety, December 2014);
54.11 	(2) roadway traffic volumes and speeds;
54.12 	(3) train volumes and speeds;
54.13 	(4) adjacent land use;
54.14 	(5) crash history;
54.15 	(6) use of the crossing by emergency vehicles;
54.16 	(7) use of the crossing by vehicles carrying hazardous materials; and
54.17 	(8) local financial contributions to the project.

54.18 	Sec. 4. Minnesota Statutes 2014, section 219.166, is amended to read:
54.19 	219.166 ESTABLISHMENT OF QUIET ZONES.
54.20 		Subdivision 1.Eligible applicants. A county, statutory or home rule charter city, 
54.21 	or town may apply to the Federal Railroad Administration for the establishment of a 
54.22 	"quiet zone" at a public highway-rail grade crossing in which the sounding of horns, 
54.23 	whistles, or other audible warnings by locomotives is regulated or prohibited. All quiet 
54.24 	zones, regulations, and ordinances adopted under this section must conform to federal law 
54.25 	and the regulations of the Federal Railroad Administration under United States Code of 
54.26 	Federal Regulations, title 49, section 20153 parts 222 and 229.
54.27 		Subd. 2.Purpose of program. A public highway-rail grade crossing quiet 
54.28 	zone program is established for the purpose of improving and rehabilitating railroad 
54.29 	rights-of-way and other public and private rail facilities, including necessary safety-related 
54.30 	capital improvements at public highway-rail grade crossings where quiet zones are 
54.31 	established.
54.32 		Subd. 3.Creation of account. A public highway-rail grade crossing quiet zone 
54.33 	account is established in the bond proceeds fund. Money in the account may only be used 
54.34 	for capital costs associated with the establishment of a quiet zone at a public highway-rail 
54.35 	grade crossing.
55.1 		Subd. 4.Eligible applicants for state assistance. Counties, statutory or home 
55.2 	rule charter cities, or towns that are responsible for traffic control or law enforcement 
55.3 	at a public highway-rail grade crossing qualify as eligible applicants to the Federal 
55.4 	Railroad Administration (FRA) for the establishment of a quiet zone may apply to the 
55.5 	commissioner for financial assistance for establishment of a quiet zone.
55.6 		Subd. 5.Grants. The commissioner may approve grants for financial assistance to 
55.7 	eligible applicants for capital costs associated with the establishment of a quiet zone at a 
55.8 	public highway-rail grade crossing. Qualifying capital costs include, but are not limited to, 
55.9 	the installation of grade crossing active warning devices and other traffic control devices 
55.10 	and associated roadwork necessary to meet the FRA criteria for approval of the quiet zone.
55.11 		Subd. 6.Criteria for grant award. The commissioner shall consider the following 
55.12 	criteria to evaluate applications for a grant award for a quiet zone project:
55.13 	(1) the number of residents that will benefit from the establishment of the quiet 
55.14 	zone through a reduction in train horn noise;
55.15 	(2) the number of existing grade crossings that will be closed, thereby improving 
55.16 	public safety;
55.17 	(3) evidence that the project meets FRA qualifications and requirements for a 
55.18 	quiet zone, without the need for additional annual review by FRA per federal quiet zone 
55.19 	regulations;
55.20 	(4) nonstate financial participation as a percentage of total project cost; and
55.21 	(5) the amount of state financial participation per resident benefiting from the project.

55.22 	Sec. 5. Minnesota Statutes 2014, section 256E.37, is amended to read:
55.23 	256E.37 EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
55.24 	FACILITIES.
55.25 		Subdivision 1.Grant authority. The commissioner may make grants to state 
55.26 	agencies and political subdivisions to construct or rehabilitate facilities for early childhood 
55.27 	programs, crisis nurseries, or parenting time centers. The following requirements apply:
55.28 	(1) The facilities must be owned by the state or a political subdivision, but may 
55.29 	be leased under section 16A.695 to organizations that operate the programs. The 
55.30 	commissioner must prescribe the terms and conditions of the leases.
55.31 	(2) A grant for an individual facility must not exceed $500,000 for each program 
55.32 	that is housed in the facility, up to a maximum of $2,000,000 for a facility that houses 
55.33 	three programs or more. Programs include Head Start, School Readiness, Early Childhood 
55.34 	Family Education, licensed child care, and other early childhood intervention programs.
56.1 	(3) State appropriations must be matched on a 50 percent basis with nonstate funds. 
56.2 	The matching requirement must apply program wide and not to individual grants.
56.3 	(4) At least 80 percent of grant funds must be distributed to facilities located in 
56.4 	counties not included in the definition under section 473.121, subdivision 4.
56.5 		Subd. 1a.Special authority for grant funded with general fund appropriation.
 56.6 	(a) Notwithstanding subdivision 1, clause (1), the commissioner may make a grant that is 
56.7 	funded with general fund appropriations to a federally recognized tribal government in 
56.8 	Minnesota or to a private nonprofit organization. A facility financed with a grant under 
56.9 	this subdivision may be owned by private nonprofit organizations or federally recognized 
56.10 	tribal governments in Minnesota.
56.11 	(b) Section 16A.642 applies to a general fund appropriation under this section.
56.12 	(c) The treatment of appropriations under section 16A.28, subdivision 5, apply to 
56.13 	appropriations from the general fund for the purposes of this section.
56.14 		Subd. 2.Grant priority. (a) The commissioner must give priority to:
56.15 	(1) projects located in counties not included in the definition under section 473.121, 
56.16 	subdivision 4;
56.17 	(2) projects in counties or municipalities with the highest percentage of children 
56.18 	living in poverty;
56.19 	(2) (3) grants that involve collaboration among sponsors of programs under this 
56.20 	section; and
56.21 	(3) (4) where feasible, grants for programs that utilize Youthbuild under sections 
56.22 	116L.361 to 116L.366 for at least 25 percent of each grant awarded or $50,000 of the labor 
56.23 	portion of the construction, whichever is less, if:.
56.24 	(i) the work is appropriate for Youthbuild, as mutually agreed upon by the grantee 
56.25 	and the local Youthbuild program, considering safety and skills needed;
56.26 	(ii) it is demonstrated by Youthbuild that using Youthbuild will not increase the 
56.27 	overall cost of the project; and
56.28 	(iii) eligible programs consult with appropriate labor organizations to deliver 
56.29 	education and training.
56.30 	(b) The commissioner may give priority to:
56.31 	(1) projects that collaborate with child care providers, including all-day and 
56.32 	school-age child care programs, special needs care, sick child care, nontraditional hour 
56.33 	care, and programs that include services to refugee and immigrant families; and
56.34 	(2) grants for programs that will increase their child care workers' wages as a result 
56.35 	of the grant; and
56.36 	(3) (2) projects that will improve the quality of early childhood programs.

57.1 	Sec. 6. Minnesota Statutes 2014, section 446A.072, is amended to read:
57.2 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING 
57.3 	PROGRAM.
57.4 		Subdivision 1.Establishment of program. The authority will establish a 
57.5 	wastewater water infrastructure funding program to provide supplemental assistance to 
57.6 	governmental units receiving funding through the clean water revolving fund program, the 
57.7 	drinking water revolving fund program, or the United States Department of Agriculture 
57.8 	Rural Economic and Community Development's (USDA/RECD) Water and Waste 
57.9 	Disposal Loans and Grants program for the predesign, design, and construction of 
57.10 	municipal wastewater treatment and drinking water systems, including purchase of land 
57.11 	and easements. The purpose of the program is to assist governmental units demonstrating 
57.12 	financial need to build cost-effective projects to address existing environmental or public 
57.13 	health problems. To implement the program, the authority shall establish a wastewater 
57.14 	water infrastructure fund to provide grants and loans for the purposes authorized under 
57.15 	title VI of the Federal Water Pollution Control Act and the federal Safe Drinking Water 
57.16 	Act. The fund shall be credited with all investment income from the fund and all 
57.17 	repayments of loans, grants, and penalties.
57.18 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
57.19 	assistance, as provided in subdivision 5a to governmental units:
57.20 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
57.21 	the Department of Health's project priority list;
57.22 	(2) that demonstrate their projects are a cost-effective solution to an existing 
57.23 	environmental or public health problem; and
57.24 	(3) whose projects are approved by the USDA/RECD or certified by the 
57.25 	commissioner of the Pollution Control Agency or the Department of Health.
57.26 	(b) For a governmental unit receiving grant funding from the USDA/RECD, 
57.27 	applications must be made to the USDA/RECD with additional information submitted to 
57.28 	the authority as required by the authority. Eligible project costs and affordability criteria 
57.29 	shall be determined by the USDA/RECD.
57.30 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
57.31 	application must be made to the authority on forms prescribed by the authority for the 
57.32 	clean water revolving fund program or the drinking water revolving fund program with 
57.33 	additional information as required by the authority. In accordance with section 116.182, 
57.34 	the Pollution Control Agency or Department of Health shall:
57.35 	(1) calculate the essential project component percentage based on the portion of 
57.36 	project costs necessary to convey or treat the existing wastewater flows and loadings or, 
58.1 	for drinking water projects, to provide safe drinking water to meet existing needs, which 
58.2 	must be multiplied by the total project cost to determine the eligible project cost for the 
58.3 	program under this section; and
58.4 	(2) review and certify approved projects to the authority.
58.5 	(d) Each fiscal year the authority shall make funds available for projects based on 
58.6 	their ranking on the Pollution Control Agency's project priority list or the Department 
58.7 	of Health's project priority list. The authority shall reserve funds for a project when 
58.8 	the applicant receives a funding commitment from the United States Department of 
58.9 	Agriculture Rural Development (USDA/RECD) or submits plans and specifications to the 
58.10 	project is certified by the Pollution Control Agency or Department of Health. Funds must 
58.11 	be reserved in an amount based on the project cost estimate submitted to the authority 
58.12 	prior to the appropriation of the funds and awarded based on the lesser of that amount or 
58.13 	the as-bid cost when the project is certified or the as-bid cost, whichever is less.
58.14 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving 
58.15 	grant funding from the USDA/RECD, the authority may provide assistance in the form 
58.16 	of a grant of up to 65 percent of the eligible grant need determined by USDA/RECD. A 
58.17 	governmental unit may not receive a grant under this paragraph for more than $4,000,000 
58.18 	$5,000,000 per project or $15,000 $20,000 per existing connection, whichever is less, 
58.19 	unless specifically approved by law.
58.20 	(b) For a governmental unit receiving a loan from the clean water revolving fund 
58.21 	under section 446A.07, the authority may provide assistance under this section in the form 
58.22 	of a grant if the average annual residential wastewater system cost after completion of the 
58.23 	project would otherwise exceed 1.4 percent of the median household income of the project 
58.24 	service area. In determining whether the average annual residential wastewater system 
58.25 	cost would exceed 1.4 percent, the authority must consider the total costs associated with 
58.26 	building, operating, and maintaining the wastewater system, including existing wastewater 
58.27 	debt service, debt service on the eligible project cost, and operation and maintenance 
58.28 	costs. Debt service costs for the proposed project are calculated based on the maximum 
58.29 	loan term permitted for the clean water revolving fund loan under section 446A.07, 
58.30 	subdivision 7. The amount of the grant is equal to 80 percent of the amount needed to 
58.31 	reduce the average annual residential wastewater system cost to 1.4 percent of median 
58.32 	household income in the project service area, to a maximum of $4,000,000 $5,000,000 per 
58.33 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
58.34 	approved by law. The eligible project cost is determined by multiplying the total project 
58.35 	costs minus any other grants by the essential project component percentage calculated 
59.1 	under subdivision 3, paragraph (c), clause (1). In no case may the amount of the grant 
59.2 	exceed 80 percent of the eligible project cost.
59.3 	(c) For a governmental unit receiving a loan from the drinking water revolving 
59.4 	fund under section 446A.081, the authority may provide assistance under this section in 
59.5 	the form of a grant if the average annual residential drinking water system cost after 
59.6 	completion of the project would otherwise exceed 1.2 percent of the median household 
59.7 	income of the project service area. In determining whether the average annual residential 
59.8 	drinking water system cost would exceed 1.2 percent, the authority must consider the total 
59.9 	costs associated with building, operating, and maintaining the drinking water system, 
59.10 	including existing drinking water debt service, debt service on the eligible project cost, 
59.11 	and operation and maintenance costs. Debt service costs for the proposed project are 
59.12 	calculated based on the maximum loan term permitted for the drinking water revolving 
59.13 	fund loan under section 446A.081, subdivision 8, paragraph (c). The amount of the grant 
59.14 	is equal to 80 percent of the amount needed to reduce the average annual residential 
59.15 	drinking water system cost to 1.2 percent of median household income in the project 
59.16 	service area, to a maximum of $5,000,000 per project or $20,000 per existing connection, 
59.17 	whichever is less, unless specifically approved by law. The eligible project cost is 
59.18 	determined by multiplying the total project costs minus any other grants by the essential 
59.19 	project component percentage calculated under subdivision 3, paragraph (c), clause (1). In 
59.20 	no case may the amount of the grant exceed 80 percent of the eligible project cost.
59.21 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a 
59.22 	governmental unit receiving supplemental assistance under this section after January 1, 
59.23 	2002, if the authority determines that the governmental unit's construction and installation 
59.24 	costs are significantly increased due to geological conditions of crystalline bedrock or karst 
59.25 	areas and discharge limits that are more stringent than secondary treatment, the maximum 
59.26 	award under this section shall not be more than $25,000 per existing connection.
59.27 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan 
59.28 	under subdivision 5a that levies special assessments to repay the loan under subdivision 
59.29 	5a or section 446A.07 may defer payment of such assessments under the provisions of 
59.30 	sections 435.193 to 435.195.
59.31 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this 
59.32 	section by the authority to recipients must be made for eligible project costs as incurred by 
59.33 	the recipients, and must be made by the authority in accordance with the project financing 
59.34 	agreement and applicable state and federal laws and rules governing the payments.
59.35 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 
59.36 	475.54, subdivision 1, this subdivision shall govern the maturities and mandatory sinking 
60.1 	fund redemptions of the loans under this section. A governmental unit receiving a loan 
60.2 	under this section shall repay the loan in semiannual payment amounts determined by 
60.3 	the authority. The payment amount must be based on the average payments on the 
60.4 	governmental unit's clean water revolving fund loan or, if greater, the minimum amount 
60.5 	required to fully repay the loan by the maturity date. Payments must begin within one year 
60.6 	of the date of the governmental unit's final payment on the clean water revolving fund 
60.7 	loan. The final maturity date of the loan under this section must be no later than 20 years 
60.8 	from the date of the first payment on the loan under this section and no later than 40 years 
60.9 	from the date of the first payment on the clean water revolving fund loan.
60.10 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
60.11 	only after applying for grant funding from other sources and funding has been obtained, 
60.12 	rejected, or the authority has determined that the potential funding is unlikely.
60.13 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce 
60.14 	the sewer service charges of a significant wastewater contributor industrial user that has a 
60.15 	separate service charge agreement with the recipient, or a single user that has caused the 
60.16 	need for the project or whose current or projected flow and load exceed usage exceeds 
60.17 	one-half of the current wastewater treatment plant's or drinking water system capacity.
60.18 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the 
60.19 	authority, in conjunction with the Pollution Control Agency and Department of Health, 
60.20 	shall prepare a report to the Finance Division of the senate Environment and Natural 
60.21 	Resources Committee and the house of representatives Environment and Natural 
60.22 	Resources Finance Committee on wastewater and drinking water funding assistance needs 
60.23 	of governmental units under this section.
60.24 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or 
60.25 	grant under this section shall establish a system replacement fund and shall annually 
60.26 	deposit a minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, 
60.27 	or replacement of the treatment wastewater or drinking water system, or replacement of 
60.28 	the treatment system at the end of its useful life. Money must remain in the account for the 
60.29 	life of the corresponding project loan from the authority or USDA/RECD, unless use of 
60.30 	the fund is approved in writing by the authority for major rehabilitation, expansion, or 
60.31 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
60.32 	during the life of the loan, each recipient shall submit a report to the authority regarding 
60.33 	the amount deposited and the fund balance for the prior calendar year. A recipient is not 
60.34 	required to maintain a fund balance greater than the amount of the grant received. Failure 
60.35 	to comply with the requirements of this subdivision shall result in the authority assessing a 
60.36 	penalty fee to the recipient equal to one percent of the supplemental assistance amount for 
61.1 	each year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
61.2 	required constitutes a default on the loan.
61.3 		Subd. 14.Consistency with land use plans. A governmental unit applying for a 
61.4 	project in an unsewered area shall include in its application to the authority a certification 
61.5 	from the county in which the project is located that:
61.6 	(1) the project is consistent with the county comprehensive land use plan, if the 
61.7 	county has adopted one;
61.8 	(2) the project is consistent with the county water plan, if the county has adopted 
61.9 	one; and
61.10 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
61.11 	exceed the requirements of Minnesota Rules, part 7080.0305.

61.12 	Sec. 7. Minnesota Statutes 2014, section 446A.073, as amended by Laws 2015, First 
61.13 	Special Session chapter 4, article 4, sections 127, 128, and 129, is amended to read:
61.14 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
61.15 		Subdivision 1.Program established. When money is appropriated for grants 
61.16 	under this program, the authority shall award grants up to a maximum of $3,000,000 
61.17 	$7,000,000 to governmental units to cover up to one-half 80 percent of the cost of water 
61.18 	infrastructure projects made necessary by:
61.19 	(1) a wasteload reduction prescribed under a total maximum daily load plan required 
61.20 	by section 303(d) of the federal Clean Water Act, United States Code, title 33, section 
61.21 	1313(d);
61.22 	(2) a phosphorus concentration or mass limit which requires discharging one 
61.23 	milligram per liter or less at permitted design flow which is incorporated into a permit 
61.24 	issued by the Pollution Control Agency;
61.25 	(3) any other water quality-based effluent limit established under section 115.03, 
61.26 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the 
61.27 	Pollution Control Agency that exceeds secondary treatment limits; or
61.28 	(4) a total nitrogen concentration or mass limit of that requires discharging ten 
61.29 	milligrams per liter or less for a land-based treatment system at permitted design flow.
61.30 		Subd. 2.Grant application. Application for a grant must be made to the authority 
61.31 	on forms prescribed by the authority for the total maximum daily load grant program, with 
61.32 	additional information as required by the authority, including a project schedule and cost 
61.33 	estimate for the work necessary to comply with the point source wasteload allocation 
61.34 	requirements listed in subdivision 1. The Pollution Control Agency shall:
62.1 	(1) in accordance with section 116.182, calculate the essential project component 
62.2 	percentage, which must be multiplied by the total project cost to determine the eligible 
62.3 	project cost; and
62.4 	(2) review and certify to the authority those projects that have plans and 
62.5 	specifications approved under section 115.03, subdivision 1, paragraph (f).
62.6 		Subd. 3.Project priorities. When money is appropriated for grants under this 
62.7 	program, The authority shall accept applications under this program during the month of 
62.8 	July and reserve money for projects expected to proceed with construction by the end of 
62.9 	the fiscal year in the order listed on the Pollution Control Agency's project priority list and 
62.10 	in an amount based on the cost estimate submitted to the authority in the grant application 
62.11 	or the as-bid costs, whichever is less. Notwithstanding Minnesota Rules, chapter 7077, 
62.12 	the Pollution Control Agency may rank a drinking water infrastructure project on the 
62.13 	agency's project priority list if the project is necessary to meet an applicable requirement 
62.14 	in subdivision 1.
62.15 		Subd. 4.Grant approval. The authority must make a grant for an eligible project 
62.16 	only after:
62.17 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
62.18 	(2) the Pollution Control Agency has approved the as-bid costs and certified the 
62.19 	grant eligible portion of the project; and
62.20 	(3) the authority has determined that the additional financing necessary to complete 
62.21 	the project has been committed from other sources.
62.22 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible 
62.23 	project costs as incurred by the governmental unit and in accordance with a project 
62.24 	financing agreement and applicable state and federal laws and rules governing the 
62.25 	payments.

62.26 	Sec. 8. Minnesota Statutes 2014, section 446A.081, subdivision 9, is amended to read:
62.27 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be 
62.28 	used as provided in the act, including the following uses:
62.29 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
62.30 	systems for drinking water systems, where the debt was incurred after the date of enactment 
62.31 	of the act, for the purposes of construction of the necessary improvements to comply with 
62.32 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
62.33 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
62.34 	access or reduce interest rates;
63.1 	(3) to provide a source of revenue or security for the payment of principal and 
63.2 	interest on revenue or general obligation bonds issued by the authority if the bond 
63.3 	proceeds are deposited in the fund;
63.4 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
63.5 	governmental unit or state agency;
63.6 	(5) to earn interest on fund accounts;
63.7 	(6) to pay the reasonable costs incurred by the authority, the Department of 
63.8 	Employment and Economic Development, and the Department of Health for conducting 
63.9 	activities as authorized and required under the act up to the limits authorized under the act;
63.10 	(7) to develop and administer programs for water system supervision, source water 
63.11 	protection, and related programs required under the act;
63.12 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal 
63.13 	forgiveness or grants to the extent permitted under the federal Safe Drinking Water Act 
63.14 	and other federal law, based on the criteria and requirements established for drinking 
63.15 	water projects under the water infrastructure funding program under section 446A.072;
63.16 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
63.17 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
63.18 	or energy efficiency improvements, or other environmentally innovative activities; and
63.19 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up 
63.20 	to a maximum of $10,000 for projects needed to comply with national primary drinking 
63.21 	water standards for an existing community or noncommunity public water system.
63.22 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be 
63.23 	provided if the average annual residential drinking water system cost after completion of 
63.24 	the project would otherwise exceed 1.2 percent of the median household income in the 
63.25 	project service area. In determining whether the average annual residential drinking 
63.26 	water system cost would exceed 1.2 percent, the authority must consider the total costs 
63.27 	associated with building, operating, and maintaining the drinking water system, including 
63.28 	debt service and operation and maintenance costs. Debt service costs for the proposed 
63.29 	project must be calculated based on the maximum loan term permitted for the drinking 
63.30 	water revolving fund loan under this section. The amount of the principal forgiveness or 
63.31 	grant must be equal to 80 percent of the amount needed to reduce the average annual 
63.32 	residential drinking water system cost to 1.2 percent of median household income in the 
63.33 	project service area, to a maximum of $4,000,000 or $15,000 per connection, whichever is 
63.34 	less, and not to exceed 80 percent of the total project cost.
63.35 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may 
63.36 	not exceed 25 percent of the eligible project costs as determined by the Department of 
64.1 	Health for project components directly related to green infrastructure, water or energy 
64.2 	efficiency improvements, or other environmentally innovative activities, up to a maximum 
64.3 	of $1,000,000.
64.4 	(d) The authority may reduce the percentage of median household income at which a 
64.5 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which 
64.6 	principal forgiveness or grants could be provided under paragraph (b) if it determines that 
64.7 	the federal money allotted to the state cannot be fully utilized without the reduction. If it 
64.8 	determines that the reduction is necessary to fully utilize the federal money, the authority 
64.9 	must effect the change through its approval of the annual intended use plan.

64.10 	Sec. 9. Minnesota Statutes 2014, section 446A.12, subdivision 1, is amended to read:
64.11 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
64.12 	principal amount that the authority determines necessary to provide sufficient funds for 
64.13 	achieving its purposes, including the making of loans and purchase of securities, the 
64.14 	payment of interest on bonds of the authority, the establishment of reserves to secure its 
64.15 	bonds, the payment of fees to a third party providing credit enhancement, and the payment 
64.16 	of all other expenditures of the authority incident to and necessary or convenient to carry 
64.17 	out its corporate purposes and powers, but not including the making of grants. Bonds of 
64.18 	the authority may be issued as bonds or notes or in any other form authorized by law. 
64.19 	The principal amount of bonds issued and outstanding under this section at any time 
64.20 	may not exceed $1,500,000,000 $2,000,000,000, excluding bonds for which refunding 
64.21 	bonds or crossover refunding bonds have been issued, and excluding any bonds issued 
64.22 	for the credit enhanced bond program or refunding or crossover refunding bonds issued 
64.23 	under the program. The principal amount of bonds issued and outstanding under section 
64.24 	446A.087, may not exceed $500,000,000, excluding bonds for which refunding bonds or 
64.25 	crossover refunding bonds have been issued.

64.26 	Sec. 10. Minnesota Statutes 2014, section 462A.37, subdivision 1, is amended to read:
64.27 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
64.28 	have the meanings given.
64.29 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
64.30 	(c) (b) "Community land trust" means an entity that meets the requirements of 
64.31 	section 462A.31, subdivisions 1 and 2.
64.32 	(d) (c) "Debt service" means the amount payable in any fiscal year of principal, 
64.33 	premium, if any, and interest on housing infrastructure bonds and the fees, charges, and 
64.34 	expenses related to the bonds.
65.1 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
65.2 	have been initiated or have been completed and title transferred or where title is transferred 
65.3 	in lieu of foreclosure.
65.4 	(f) (d) "Housing infrastructure bonds" means bonds issued by the agency under this 
65.5 	chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the 
65.6 	Internal Revenue Code, finance qualified residential rental projects within the meaning of 
65.7 	Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private 
65.8 	activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the 
65.9 	purpose of financing or refinancing affordable housing authorized under this chapter.
65.10 	(g) (e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as 
65.11 	amended.
65.12 	(h) (f) "Supportive housing" means housing that is not time-limited and provides or 
65.13 	coordinates with linkages to services necessary for residents to maintain housing stability 
65.14 	and maximize opportunities for education and employment.

65.15 	EFFECTIVE DATE. This section is effective the day following final enactment for 
65.16 	bonds authorized in 2016 and thereafter.

65.17 	Sec. 11. Minnesota Statutes 2014, section 462A.37, subdivision 2, is amended to read:
65.18 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
65.19 	principal amount of housing infrastructure bonds in one or more series to which the 
65.20 	payment made under this section may be pledged. The housing infrastructure bonds 
65.21 	authorized in this subdivision may be issued to fund loans, on terms and conditions the 
65.22 	agency deems appropriate, made for one or more of the following purposes:
65.23 	(1) to finance the costs of the construction, acquisition, and rehabilitation of 
65.24 	supportive housing for individuals and families who are without a permanent residence;
65.25 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or 
65.26 	abandoned housing to be used for affordable rental housing and the costs of new 
65.27 	construction of rental housing on abandoned or foreclosed property where the existing 
65.28 	structures will be demolished or removed;
65.29 	(3) (2) to finance that portion of the costs of acquisition of property that is 
65.30 	attributable to the land to be leased by community land trusts to low- and moderate-income 
65.31 	homebuyers; and
65.32 	(4) (3) to finance the costs of acquisition and rehabilitation of federally assisted rental 
65.33 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
65.34 	of federally assisted rental housing, including providing funds to refund, in whole or in 
66.1 	part, outstanding bonds previously issued by the agency or another government unit to 
66.2 	finance or refinance such costs.
66.3 	(b) Among comparable proposals for permanent supportive housing, preference 
66.4 	shall be given to permanent supportive housing for veterans and other individuals or 
66.5 	families who:
66.6 	(1) either have been without a permanent residence for at least 12 months or at 
66.7 	least four times in the last three years; or
66.8 	(2) are at significant risk of lacking a permanent residence for 12 months or at least 
66.9 	four times in the last three years.

66.10 	EFFECTIVE DATE. This section is effective the day following final enactment for 
66.11 	bonds authorized in 2016 and thereafter.

66.12 	Sec. 12. Minnesota Statutes 2014, section 462A.37, is amended by adding a 
66.13 	subdivision to read:
66.14 		Subd. 2c.Additional authorization. In addition to the amount authorized in 
66.15 	subdivisions 2, 2a, and 2b, the agency may issue up to $70,000,000 in housing infrastructure 
66.16 	bonds in one or more series to which the payments under this section may be pledged.

66.17 	Sec. 13. Minnesota Statutes 2015 Supplement, section 462A.37, subdivision 5, is 
66.18 	amended to read:
66.19 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
66.20 	commissioner of management and budget the actual amount of annual debt service on 
66.21 	each series of bonds issued under subdivisions 2a and, 2b, and 2c.
66.22 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
66.23 	bonds issued under subdivision 2a remain outstanding, the commissioner of management 
66.24 	and budget must transfer to the housing infrastructure bond account established under 
66.25 	section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 
66.26 	$6,400,000 annually. The amounts necessary to make the transfers are appropriated from 
66.27 	the general fund to the commissioner of management and budget.
66.28 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
66.29 	bonds issued under subdivision 2b remain outstanding, the commissioner of management 
66.30 	and budget must transfer to the housing infrastructure bond account established under 
66.31 	section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 
66.32 	$800,000 annually. The amounts necessary to make the transfers are appropriated from 
66.33 	the general fund to the commissioner of management and budget.
67.1 	(d) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
67.2 	bonds issued under subdivision 2c remain outstanding, the commissioner of management 
67.3 	and budget must transfer to the housing infrastructure bond account established under 
67.4 	section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 
67.5 	$5,600,000 annually. The amounts necessary to make the transfers are appropriated from 
67.6 	the general fund to the commissioner of management and budget.
67.7 	(d) (e) The agency may pledge to the payment of the housing infrastructure bonds 
67.8 	the payments to be made by the state under this section.

67.9 	Sec. 14. Laws 2015, chapter 75, article 1, section 3, subdivision 3, is amended to read:

67.10	Subd. 3.State Roads

67.11	(a) Operations and Maintenance
		288,405,000
		290,916,000
	
67.12 	The base appropriation in fiscal year 2018 
67.13 	is $292,140,000 and in fiscal year 2019 is 
67.14 	$301,545,000.

67.15	(b) Program Planning and Delivery
		237,529,000
		231,252,000
	
67.16 	$130,000 in each year is available for 
67.17 	administrative costs of the targeted group 
67.18 	business program.
67.19 	$266,000 in each year is available for grants 
67.20 	to metropolitan planning organizations 
67.21 	outside the seven-county metropolitan area.
67.22 	$900,000 in each year is available for 
67.23 	grants for transportation studies outside 
67.24 	the metropolitan area to identify critical 
67.25 	concerns, problems, and issues. These 
67.26 	grants are available: (1) to regional 
67.27 	development commissions; (2) in regions 
67.28 	where no regional development commission 
67.29 	is functioning, to joint powers boards 
67.30 	established under agreement of two or 
67.31 	more political subdivisions in the region to 
67.32 	exercise the planning functions of a regional 
67.33 	development commission; and (3) in regions 
68.1 	where no regional development commission 
68.2 	or joint powers board is functioning, to the 
68.3 	department's district office for that region.
68.4 	$1,000,000 in each year is available 
68.5 	for management of contaminated and 
68.6 	regulated material on property owned by 
68.7 	the Department of Transportation, including 
68.8 	mitigation of property conveyances, facility 
68.9 	acquisition or expansion, chemical release at 
68.10 	maintenance facilities, and spills on the trunk 
68.11 	highway system where there is no known 
68.12 	responsible party. If the appropriation for 
68.13 	either year is insufficient, the appropriation 
68.14 	for the other year is available for it.
68.15 	$6,804,000 in the first year and $1,000,000 in 
68.16 	the second year are available for the purposes 
68.17 	stated in Minnesota Statutes, section 12A.16, 
68.18 	subdivision 2.
68.19 	The base appropriation for program 
68.20 	planning and delivery in fiscal year 2018 
68.21 	is $227,004,000 and in fiscal year 2019 is 
68.22 	$234,331,000.

68.23	(c) State Road Construction
		779,664,000
		744,166,000
	
68.24 	This appropriation is for the actual 
68.25 	construction, reconstruction, and 
68.26 	improvement of trunk highways, including 
68.27 	design-build contracts, internal department 
68.28 	costs associated with delivering the 
68.29 	construction program, and consultant usage 
68.30 	to support these activities. This includes the 
68.31 	cost of actual payment to landowners for 
68.32 	lands acquired for highway rights-of-way, 
68.33 	payment to lessees, interest subsidies, and 
68.34 	relocation expenses.
69.1 	$1,000,000 in the first year is to complete 
69.2 	projects using funds made available to 
69.3 	the commissioner of transportation under 
69.4 	title XII of the American Recovery and 
69.5 	Reinvestment Act of 2009, Public Law 
69.6 	111-5, and implemented under Minnesota 
69.7 	Statutes, section 161.36, subdivision 7.
69.8 	$10,000,000 in each year is for the 
69.9 	transportation economic development 
69.10 	program under Minnesota Statutes, section 
69.11 	174.12.
69.12 	The commissioner may expend up to one-half 
69.13 	of one percent of the federal appropriations 
69.14 	under this paragraph as grants to opportunity 
69.15 	industrialization centers and other nonprofit 
69.16 	job training centers for job training programs 
69.17 	related to highway construction.
69.18 	The commissioner may transfer up to 
69.19 	$15,000,000 each year to the transportation 
69.20 	revolving loan fund.
69.21 	The commissioner may receive money 
69.22 	covering other shares of the cost of 
69.23 	partnership projects. These receipts are 
69.24 	appropriated to the commissioner for these 
69.25 	projects.
69.26 	The base appropriation for state road 
69.27 	construction in each of fiscal years 2018 and 
69.28 	2019 is $695,800,000.

69.29
69.30	(d) Highway Debt Service
		197,381,000
		231,199,000
234,386,000
	
69.31 	$187,881,000 the first year and $221,699,000
69.32 	$224,886,000 the second year are for transfer 
69.33 	to the state bond fund. If this appropriation 
69.34 	is insufficient to make all transfers required 
69.35 	in the year for which it is made, the 
70.1 	commissioner of management and budget 
70.2 	shall transfer the deficiency amount under 
70.3 	the statutory open appropriation, and notify 
70.4 	the chairs and ranking minority members of 
70.5 	the legislative committees with jurisdiction 
70.6 	over transportation finance and the chairs of 
70.7 	the senate Committee on Finance and the 
70.8 	house of representatives Committee on Ways 
70.9 	and Means of the amount of the deficiency. 
70.10 	Any excess appropriation cancels to the 
70.11 	trunk highway fund.

70.12	(e) Statewide Radio Communications
		5,358,000
		5,486,000

70.13	Appropriations by Fund
	
70.14		2016
	2017
	
70.15	General
	35,000
	3,000
	
70.16	Trunk Highway
	5,323,000
	5,483,000
	
70.17 	$3,000 in each year is from the general fund to 
70.18 	equip and operate the Roosevelt signal tower 
70.19 	for Lake of the Woods weather broadcasting.
70.20 	$32,000 in the first year is from the general 
70.21 	fund for a weather transmitter in Lake of the 
70.22 	Woods County.
70.23 	The base appropriation from the trunk 
70.24 	highway fund in fiscal year 2018 is 
70.25 	$5,645,000 and in fiscal year 2019 is 
70.26 	$5,826,000.

70.27 	Sec. 15.  REPEALER.
 70.28 	Minnesota Statutes 2014, section 123A.446, is repealed.

70.29 	Sec. 16. EFFECTIVE DATE.
 70.30 	Except as otherwise provided, this act is effective the day following final enactment.