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 2016, sections 16A.967, 
1.7 	subdivisions 2, 7; 84.946, subdivision 2; 85.34, subdivision 1; 174.50, subdivisions 
1.8 	5, 6b, 6c, 7; 446A.072; 446A.073; 446A.081, subdivision 9; 446A.12, subdivision 
1.9 	1; 462A.37, subdivisions 2a, 2b; Laws 2006, chapter 258, section 18, subdivision 
1.10 	6, as amended; Laws 2012, chapter 293, section 7, subdivision 3; Laws 2014, 
1.11 	chapter 294, article 1, section 17, subdivision 12; Laws 2015, First Special Session 
1.12 	chapter 5, article 1, section 10, subdivisions 3, 7; proposing coding for new law 
1.13 	in Minnesota Statutes, chapters 16C; 219; repealing Minnesota Statutes 2016, 
1.14 	section 123A.446.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	APPROPRIATIONS

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

2.7						APPROPRIATIONS

2.8	Sec. 2. UNIVERSITY OF MINNESOTA

2.9	Subdivision 1.Total Appropriation
 			$
	30,000,000
	
2.10 	To the Board of Regents of the University of 
2.11 	Minnesota for the purposes specified in this 
2.12 	section.

2.13
2.14	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				30,000,000
	
2.15 	To be spent in accordance with Minnesota 
2.16 	Statutes, section 135A.046.

2.17
2.18	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

2.19	Subdivision 1.Total Appropriation
 			$
	36,244,000
	
2.20 	To the Board of Trustees of the Minnesota 
2.21 	State Colleges and Universities for the 
2.22 	purposes specified in this section.

2.23
2.24	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				25,000,000
	
2.25 	To be spent in accordance with Minnesota 
2.26 	Statutes, section 135A.046.

2.27
2.28	Subd. 3.Minnesota State Community and 
Technical College

2.29	(a) Fergus Falls Campus
				978,000
	
2.30 	To design, renovate, furnish, and equip a new 
2.31 	Center for Student and Workforce Success 
2.32 	(CSWS) that integrates the Regional 
2.33 	Workforce Center. The board must enter into 
3.1 	a lease agreement with the commissioner of 
3.2 	employment and economic development, or 
3.3 	partners of the commissioner, for use of the 
3.4 	workforce center subject to Minnesota 
3.5 	Statutes, section 16A.695. The board must use 
3.6 	nonstate money for the remainder of the cost 
3.7 	of the renovation.

3.8	(b) Wadena Campus
				820,000
	
3.9 	To design, renovate, furnish, and equip the 
3.10 	relocation of the current library to 
3.11 	underutilized space and convert the vacated 
3.12 	space into a centralized student services center.

3.13
3.14	Subd. 4.Northland Community and Technical 
College, East Grand Forks
 				826,000
	
3.15 	To design, renovate, furnish, and equip science 
3.16 	and radiological lab space on the East Grand 
3.17 	Forks campus.

3.18	Subd. 5.South Central College, North Mankato
 				8,600,000
	
3.19 	To design, renovate, renew, furnish, and equip 
3.20 	laboratory, classroom, and office spaces on 
3.21 	the North Mankato campus.

3.22	Subd. 6.Debt Service
 					
3.23 	(a) Except as provided in paragraph (b), the 
3.24 	Board of Trustees shall pay the debt service 
3.25 	on one-third of the principal amount of state 
3.26 	bonds sold to finance projects authorized by 
3.27 	this section. After each sale of general 
3.28 	obligation bonds, the commissioner of 
3.29 	management and budget shall notify the board 
3.30 	of the amounts assessed for each year for the 
3.31 	life of the bonds.
3.32 	(b) The board need not pay debt service on 
3.33 	bonds sold to finance HEAPR. Where a 
3.34 	nonstate match is required, the debt service is 
4.1 	due on a principal amount equal to one-third 
4.2 	of the total project cost, less the match 
4.3 	committed before the bonds are sold.
4.4 	(c) The commissioner of management and 
4.5 	budget shall reduce the board's assessment 
4.6 	each year by one-third of the net income from 
4.7 	investment of general obligation bond 
4.8 	proceeds in proportion to the amount of 
4.9 	principal and interest otherwise required to be 
4.10 	paid by the board. The board shall pay its 
4.11 	resulting net assessment to the commissioner 
4.12 	of management and budget by December 1 
4.13 	each year. If the board fails to make a payment 
4.14 	when due, the commissioner of management 
4.15 	and budget shall reduce allotments for 
4.16 	appropriations from the general fund otherwise 
4.17 	available to the board and apply the amount 
4.18 	of the reduction to cover the missed debt 
4.19 	service payment. The commissioner of 
4.20 	management and budget shall credit the 
4.21 	payments received from the board to the bond 
4.22 	debt service account in the state bond fund 
4.23 	each December 1 before money is transferred 
4.24 	from the general fund under Minnesota 
4.25 	Statutes, section 16A.641, subdivision 10.

4.26	Subd. 7.Unspent Appropriations
 					
4.27 	(a) Upon substantial completion of a project 
4.28 	authorized in this section and after written 
4.29 	notice to the commissioner of management 
4.30 	and budget, the board must use any money 
4.31 	remaining in the appropriation for that project 
4.32 	for HEAPR under Minnesota Statutes, section 
4.33 	135A.046. The Board of Trustees must report 
4.34 	by February 1 of each even-numbered year to 
4.35 	the chairs of the house of representatives and 
5.1 	senate committees with jurisdiction over 
5.2 	capital investment and higher education 
5.3 	finance, and to the chairs of the house of 
5.4 	representatives Ways and Means Committee 
5.5 	and the senate Finance Committee, on how 
5.6 	the remaining money has been allocated or 
5.7 	spent.
5.8 	(b) The unspent portion of an appropriation 
5.9 	for a project in this section that is complete is 
5.10 	available for HEAPR under this subdivision, 
5.11 	at the same campus as the project for which 
5.12 	the original appropriation was made and the 
5.13 	debt service requirement under this section is 
5.14 	reduced accordingly. Minnesota Statutes, 
5.15 	section 16A.642, applies from the date of the 
5.16 	original appropriation to the unspent amount 
5.17 	transferred.

5.18	Sec. 4. EDUCATION

5.19	Subdivision 1.Total Appropriation
 			$
	3,500,000
	
5.20 	To the commissioner of education for the 
5.21 	purposes specified in this section.

5.22	Subd. 2.Library Construction Grants
 				2,000,000
	
5.23 	For library construction grants under 
5.24 	Minnesota Statutes, section 134.45.

5.25
5.26	Subd. 3.Olmsted County - Dyslexia Institute of 
Minnesota
 				1,500,000
	
5.27 	For a grant to Olmsted County to acquire land 
5.28 	for, and to predesign, design, construct, 
5.29 	furnish, and equip a facility in Olmsted County 
5.30 	to support the local, regional, and national 
5.31 	literacy work of the Dyslexia Institute of 
5.32 	Minnesota, subject to Minnesota Statutes, 
5.33 	section 16A.695. This appropriation is not 
5.34 	available until the commissioner of 
6.1 	management and budget determines that an 
6.2 	amount sufficient to complete the project is 
6.3 	committed to it from nonstate sources.

6.4	Sec. 5. MINNESOTA STATE ACADEMIES

6.5	Subdivision 1.Total Appropriation
 			$
	2,050,000
	
6.6 	To the commissioner of administration for the 
6.7 	purposes specified in this section.

6.8	Subd. 2.Asset Preservation
 				2,000,000
	
6.9 	For capital asset preservation improvements 
6.10 	and betterments on both campuses of the 
6.11 	Minnesota State Academies, to be spent in 
6.12 	accordance with Minnesota Statutes, section 
6.13 	16B.307.

6.14	Subd. 3.Security Corridor
 				50,000
	
6.15 	For predesign for a safety corridor on the 
6.16 	Minnesota State Academy for the Deaf 
6.17 	campus.

6.18	Sec. 6. NATURAL RESOURCES

6.19	Subdivision 1.Total Appropriation
 			$
	40,855,000
	
6.20 	(a) To the commissioner of natural resources 
6.21 	for the purposes specified in this section.
6.22 	(b) The appropriations in this section are 
6.23 	subject to the requirements of the natural 
6.24 	resources capital improvement program under 
6.25 	Minnesota Statutes, section 86A.12, unless 
6.26 	this section or the statutes referred to in this 
6.27 	section provide more specific standards, 
6.28 	criteria, or priorities for projects than 
6.29 	Minnesota Statutes, section 86A.12.

6.30	Subd. 2.Natural Resources Asset Preservation
 				15,000,000
	
6.31 	For the renovation of state-owned facilities 
6.32 	and recreational assets operated by the 
7.1 	commissioner of natural resources to be spent 
7.2 	in accordance with Minnesota Statutes, section 
7.3 	84.946. Notwithstanding Minnesota Statutes, 
7.4 	section 84.946:
7.5 	(1) the commissioner may use this 
7.6 	appropriation to replace buildings if, 
7.7 	considering the embedded energy in the 
7.8 	building, that is the most energy-efficient and 
7.9 	carbon-reducing method of renovation; and
7.10 	(2) this appropriation may be used for projects 
7.11 	to remove life safety hazards such as building 
7.12 	code violations or structural defects.

7.13	Subd. 3.Flood Hazard Mitigation
 				11,555,000
	
7.14 	(a) For the state share of flood hazard 
7.15 	mitigation grants for publicly owned capital 
7.16 	improvements to prevent or alleviate flood 
7.17 	damage under Minnesota Statutes, section 
7.18 	103F.161.
7.19 	(b) Levee projects, to the extent practical, shall 
7.20 	meet the state standard of three feet above the 
7.21 	100-year flood elevation.
7.22 	(c) Project priorities shall be determined by 
7.23 	the commissioner as appropriate and based on 
7.24 	need.
7.25 	(d) This appropriation includes $1,700,000 for 
7.26 	the Cedar River Watershed District, $750,000 
7.27 	for the city of Browns Valley project, and 
7.28 	$1,800,000 for the city of Ortonville project.
7.29 	(e) For any project listed in this subdivision 
7.30 	that the commissioner determines is not ready 
7.31 	to proceed or does not expend all the money 
7.32 	allocated to it, the commissioner may allocate 
7.33 	that project's money to a project on the 
7.34 	commissioner's priority list.
8.1 	(f) To the extent that the cost of a project 
8.2 	exceeds two percent of the median household 
8.3 	income in a municipality or township 
8.4 	multiplied by the number of households in the 
8.5 	municipality or township, this appropriation 
8.6 	is also for the local share of the project.

8.7	Subd. 4.Dam Renovation, Repair, Removal
 				9,000,000
	
8.8 	(a) For design, engineering, and construction 
8.9 	to repair, reconstruct, or remove dams and 
8.10 	respond to dam safety emergencies. The 
8.11 	commissioner shall determine project priorities 
8.12 	as appropriate under Minnesota Statutes, 
8.13 	sections 103G.511 and 103G.515. Of this 
8.14 	appropriation:
8.15 	(1) $500,000 is for emergencies on 
8.16 	state-owned dams;
8.17 	(2) $3,600,000 is for a grant to the city of 
8.18 	Lanesboro for repair of the Lanesboro dam 
8.19 	and notwithstanding the match requirements 
8.20 	in Minnesota Statutes, section 103G.511, does 
8.21 	not require a nonstate contribution. This 
8.22 	includes funding for repairs of the hydropower 
8.23 	system;
8.24 	(3) $2,500,000 is for repairs to the Lake 
8.25 	Bronson dam;
8.26 	(4) $500,000 is for a grant to the city of 
8.27 	Pelican Rapids for engineering work on the 
8.28 	Pelican Rapids dam;
8.29 	(5) $200,000 is for a grant to the city of Pine 
8.30 	River for engineering work on the Norway 
8.31 	Lake dam;
8.32 	(6) $200,000 is for a grant to Yellow Medicine 
8.33 	County for the Canby R-6 impoundment dam;
9.1 	(7) $100,000 is for a grant to St. Louis County 
9.2 	for the Little Stone Lake dam; and
9.3 	(8) $1,400,000 is for state dams at Brawner, 
9.4 	West Leaf Lake, Collinwood, Grindstone 
9.5 	River, and Sullivan.
9.6 	(b) If the commissioner determines that a 
9.7 	project is not ready to proceed, this 
9.8 	appropriation may be used for other projects 
9.9 	on the commissioner's priority list.

9.10	Subd. 5.Reforestation and Stand Improvement
 				1,000,000
	
9.11 	To provide for reforestation and stand 
9.12 	improvement on state forest lands to meet the 
9.13 	reforestation requirements of Minnesota 
9.14 	Statutes, section 89.002, subdivision 2, 
9.15 	including purchasing native seeds and native 
9.16 	seedlings, planting, seeding, site preparation, 
9.17 	and protection on state lands administered by 
9.18 	the commissioner.

9.19	Subd. 6.Champlin - Mill Pond
 				3,300,000
	
9.20 	For a grant to the city of Champlin to dredge 
9.21 	and remove sediment and for other capital 
9.22 	improvements to the Champlin Mill Pond 
9.23 	necessary to improve water quality, restore 
9.24 	fish habitat, and provide other public benefits.

9.25
9.26	Subd. 7.Lake County - Prospectors ATV Trail 
System
 				1,000,000
	
9.27 	For a grant to Lake County for construction, 
9.28 	including bridges, of the Prospectors ATV 
9.29 	Trail System linking the communities of Ely, 
9.30 	Babbitt, Embarrass, and Tower; Bear Head 
9.31 	Lake and Lake Vermilion-Soudan 
9.32 	Underground Mine State Parks; the Taconite 
9.33 	State Trail; and the Lake County Regional 
9.34 	ATV Trail System. This appropriation is not 
10.1 	available until the commissioner of 
10.2 	management and budget determines that an 
10.3 	equal amount is committed from other sources.

10.4	Subd. 8.Unspent Appropriations
 					
10.5 	The unspent portion of an appropriation for a 
10.6 	project in this section that is complete, upon 
10.7 	written notice to the commissioner of 
10.8 	management and budget, is available for asset 
10.9 	preservation under Minnesota Statutes, section 
10.10 	84.946. Minnesota Statutes, section 16A.642, 
10.11 	applies from the date of the original 
10.12 	appropriation to the unspent amount 
10.13 	transferred.

10.14	Sec. 7. POLLUTION CONTROL AGENCY

10.15	Subdivision 1.Total Appropriation
 			$
	21,955,000
	
10.16 	To the Pollution Control Agency for the 
10.17 	purposes specified in this section.

10.18	Subd. 2.St. Louis River Cleanup
 				12,705,000
	
10.19 	To design and implement contaminated 
10.20 	sediment management actions identified in 
10.21 	the St. Louis River remedial action plan to 
10.22 	restore water quality in the St. Louis River 
10.23 	Area of Concern.

10.24	Subd. 3.Capital Assistance Program
 				9,250,000
	
10.25 	This appropriation is for a grant to Polk 
10.26 	County under the solid waste capital assistance 
10.27 	grant program under Minnesota Statutes, 
10.28 	section 115A.54, in order to complete a 
10.29 	regional integrated solid waste management 
10.30 	system.

10.31
10.32	Sec. 8. BOARD OF WATER AND SOIL 
RESOURCES

10.33	Subdivision 1.Total Appropriation
 			$
	15,000,000
	
11.1 	To the Board of Water and Soil Resources for 
11.2 	the purposes specified in this section.

11.3
11.4	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				10,000,000
	
11.5 	(a) To acquire conservation easements from 
11.6 	landowners to preserve, restore, create, and 
11.7 	enhance wetlands and associated uplands of 
11.8 	prairie and grasslands, and restore and enhance 
11.9 	rivers and streams, riparian lands, and 
11.10 	associated uplands of prairie and grasslands 
11.11 	in order to protect soil and water quality, 
11.12 	support fish and wildlife habitat, reduce flood 
11.13 	damage, and provide other public benefits. 
11.14 	The provisions of Minnesota Statutes, section 
11.15 	103F.515, apply to this program.
11.16 	(b) The board shall give priority to leveraging 
11.17 	federal money by enrolling targeted new lands 
11.18 	or enrolling environmentally sensitive lands 
11.19 	that have expiring federal conservation 
11.20 	agreements.
11.21 	(c) The board is authorized to enter into new 
11.22 	agreements and amend past agreements with 
11.23 	landowners as required by Minnesota Statutes, 
11.24 	section 103F.515, subdivision 5, to allow for 
11.25 	restoration. Of this appropriation, up to five 
11.26 	percent may be used for restoration and 
11.27 	enhancement.

11.28
11.29	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				5,000,000
	
11.30 	To acquire land or permanent easements and 
11.31 	to restore, create, enhance, and preserve 
11.32 	wetlands to replace those wetlands drained or 
11.33 	filled as a result of the repair, reconstruction, 
11.34 	replacement, or rehabilitation of existing 
11.35 	public roads as required by Minnesota 
12.1 	Statutes, section 103G.222, subdivision 1, 
12.2 	paragraphs (l) and (m). The board may vary 
12.3 	the priority order of Minnesota Statutes, 
12.4 	section 103G.222, subdivision 3, paragraph 
12.5 	(a), to implement an in-lieu fee agreement 
12.6 	approved by the U.S. Army Corps of 
12.7 	Engineers under section 404 of the Clean 
12.8 	Water Act. The purchase price paid for 
12.9 	acquisition of land or perpetual easement must 
12.10 	be a fair market value as determined by the 
12.11 	board. The board may enter into agreements 
12.12 	with the federal government, other state 
12.13 	agencies, political subdivisions, nonprofit 
12.14 	organizations, fee title owners, or other 
12.15 	qualified private entities to acquire wetland 
12.16 	replacement credits in accordance with 
12.17 	Minnesota Rules, chapter 8420.

12.18	Sec. 9. MINNESOTA ZOOLOGICAL GARDEN

12.19	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
12.20 	To the Minnesota Zoological Garden Board 
12.21 	for the purposes specified in this section.

12.22	Subd. 2.Asset Preservation
 				4,000,000
	
12.23 	For capital asset preservation improvements 
12.24 	and betterments to infrastructure and exhibits 
12.25 	at the Minnesota Zoo, to be spent in 
12.26 	accordance with Minnesota Statutes, section 
12.27 	16B.307. Notwithstanding the specified uses 
12.28 	of money under Minnesota Statutes, section 
12.29 	16B.307, the board may use this appropriation 
12.30 	to replace buildings that are in poor condition, 
12.31 	outdated, and no longer support the work of 
12.32 	the Minnesota Zoo and to construct and 
12.33 	renovate trails and roads on the Minnesota 
12.34 	Zoo site.

13.1	Sec. 10. ADMINISTRATION

13.2	Subdivision 1.Total Appropriation
 			$
	12,500,000
	
13.3 	To the commissioner of administration for the 
13.4 	purposes specified in this section.

13.5
13.6	Subd. 2.Capitol Complex - Physical Security 
Upgrades
 				10,500,000
	
13.7 	For the design, construction, and equipping 
13.8 	required to upgrade the physical security 
13.9 	elements and systems for one or more of the 
13.10 	buildings listed below, their attached tunnel 
13.11 	systems and surrounding grounds, and parking 
13.12 	facilities as identified in the 2014 Minnesota 
13.13 	State Capitol Complex Physical Security Study 
13.14 	conducted by Miller Dunwiddie Architecture. 
13.15 	Work includes but is not limited to the 
13.16 	installation of bollards, blast protection, 
13.17 	infrastructure security screen walls, door 
13.18 	access controls, emergency call stations, 
13.19 	security kiosks, locking devices, and traffic 
13.20 	control to the extent these funds allow. This 
13.21 	appropriation is for work associated with one 
13.22 	or more of the following buildings: 
13.23 	Administration, Centennial, Judicial, 
13.24 	Ag/Health Lab, Minnesota History Center, 
13.25 	Minnesota History Center Loading Dock, 
13.26 	Capitol Complex Power Plant and Shops, 
13.27 	Stassen, State Office, and Veterans Service.

13.28
13.29	Subd. 3.Capital Asset Preservation and 
Replacement Account
 				2,000,000
	
13.30 	To be spent in accordance with Minnesota 
13.31 	Statutes, section 16A.632.

13.32	Sec. 11. MN.IT
 			$
	$1,432,000
	
13.33 	To the commissioner of administration to 
13.34 	predesign, design, construct, renovate, furnish, 
14.1 	and equip existing state data center facilities 
14.2 	at the Bureau of Criminal Apprehension's 
14.3 	Maryland Avenue office building, at the 
14.4 	Centennial Office Building, and at the 
14.5 	Department of Revenue's Stassen Office 
14.6 	Building for the purpose of decommissioning 
14.7 	and repurposing into usable office space.

14.8	Sec. 12. MILITARY AFFAIRS

14.9	Subdivision 1. Total Appropriation
 			$
	2,500,000
	
14.10 	To the adjutant general for the purposes 
14.11 	specified in this section.

14.12	Subd. 2.Asset Preservation
 				2,500,000
	
14.13 	For asset preservation improvements and 
14.14 	betterments of a capital nature at military 
14.15 	affairs facilities statewide, to be spent in 
14.16 	accordance with Minnesota Statutes, section 
14.17 	16B.307.

14.18	Sec. 13. PUBLIC SAFETY

14.19	Subdivision 1.Total Appropriation
 			$
	3,521,000
	
14.20 	To the named official for the purposes 
14.21 	specified in this section.

14.22	Subd. 2.Camp Ripley Training Facility
 				3,521,000
	
14.23 	To the adjutant general to predesign, design, 
14.24 	construct, and equip a joint emergency railroad 
14.25 	and pipeline emergency response training 
14.26 	facility at Camp Ripley. The project includes 
14.27 	construction of stations and capital 
14.28 	infrastructure needed for mock disaster 
14.29 	training, including infrastructure for training 
14.30 	in hazardous materials abatement and site 
14.31 	recovery work.

14.32	Sec. 14. TRANSPORTATION

15.1	Subdivision 1.Total Appropriation
 			$
	238,565,000
	
15.2 	To the commissioner of transportation for the 
15.3 	purposes specified in this section.

15.4
15.5	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				59,000,000
	
15.6 	From the bond proceeds account in the state 
15.7 	transportation fund to match federal money 
15.8 	and to replace or rehabilitate local deficient 
15.9 	bridges as provided in Minnesota Statutes, 
15.10 	section 174.50.

15.11	Subd. 3.Local Road Improvement Fund Grants
 				107,691,000
	
15.12 	(a) From the bond proceeds account in the 
15.13 	state transportation fund as provided in 
15.14 	Minnesota Statutes, section 174.50, for trunk 
15.15 	highway corridor projects under Minnesota 
15.16 	Statutes, section 174.52, subdivision 2, for 
15.17 	construction and reconstruction of local roads 
15.18 	with statewide or regional significance under 
15.19 	Minnesota Statutes, section 174.52, 
15.20 	subdivision 4, or for grants to counties to assist 
15.21 	in paying the costs of rural road safety capital 
15.22 	improvement projects on county state-aid 
15.23 	highways under Minnesota Statutes, section 
15.24 	174.52, subdivision 4a.
15.25 	(b) Of this amount, $9,000,000 is for a grant 
15.26 	to Anoka County to realign and make 
15.27 	associated improvements to County State-Aid 
15.28 	Highway 23 (Lake Drive), County State-Aid 
15.29 	Highway 54 (West Freeway Drive), and to 
15.30 	Hornsby Street in the city of Columbus.
15.31 	(c) Of this amount, $3,246,000 is for a grant 
15.32 	to the city of Blaine to predesign, design, and 
15.33 	reconstruct 105th Avenue in the vicinity of 
15.34 	the National Sports Center in Blaine. The 
15.35 	reconstruction will include changing the street 
16.1 	from five lanes to four lanes with median, turn 
16.2 	lanes, sidewalk, trail, landscaping, lighting, 
16.3 	and consolidation of access driveways. This 
16.4 	appropriation is not available until the 
16.5 	commissioner of management and budget 
16.6 	determines that at least $3,000,000 is 
16.7 	committed to the project from sources 
16.8 	available to the city, including municipal state 
16.9 	aid and county turnback funds.
16.10 	(d) Of this amount, $25,000,000 is for a grant 
16.11 	to Hennepin County for design, right-of-way 
16.12 	acquisition, engineering, and construction of 
16.13 	public improvements related to the Interstate 
16.14 	Highway 35W and Lake Street access project 
16.15 	and related improvements within the Interstate 
16.16 	Highway 35W corridor. This appropriation is 
16.17 	not available until the commissioner of 
16.18 	management and budget determines that an 
16.19 	amount sufficient to complete the Interstate 
16.20 	Highway 35W and Lake Street access project 
16.21 	has been committed to the project.
16.22 	(e) Of this amount $10,500,000 is for one or 
16.23 	more grants to Carver County, the city of 
16.24 	Chaska, or both, for environmental analysis 
16.25 	and to acquire land, predesign, design, 
16.26 	engineer, and construct local road 
16.27 	improvements related to the marked U.S. 
16.28 	Highway 212 interchange project in Chaska.
16.29 	(f) Of this amount, $700,000 is for a grant to 
16.30 	Redwood County to pave Nobles Avenue as 
16.31 	the main access road to a new State Veterans 
16.32 	Cemetery to be located in Paxton Township.

16.33
16.34	Subd. 4.Rail Grade Separation on Crude Oil 
Rail Corridors
 				57,024,000
	
17.1 	(a) Of this amount, $42,262,000 is for a grant 
17.2 	to the city of Moorhead for environmental 
17.3 	analysis, design, engineering, removal of an 
17.4 	existing structure, and construction of a rail 
17.5 	grade crossing separation in the vicinity of 
17.6 	21st Street South.
17.7 	(b) Of this amount, $14,762,000 is for a grant 
17.8 	to the city of Red Wing for environmental 
17.9 	analysis, design, engineering, removal of an 
17.10 	existing structure, and construction of a rail 
17.11 	grade crossing separation at Sturgeon Lake 
17.12 	Road.
17.13 	(c) Any unspent portion of this appropriation 
17.14 	after completion of a project in this 
17.15 	subdivision may be used for grants in 
17.16 	accordance with Minnesota Statutes, section 
17.17 	219.016.

17.18	Subd. 5.Railroad Warning Devices
 				1,000,000
	
17.19 	To design, construct, and equip replacement 
17.20 	of active highway-rail grade warning devices 
17.21 	that have reached the end of their useful life.

17.22
17.23	Subd. 6.Minnesota Valley Regional Railroad 
Authority
 				4,000,000
	
17.24 	For a grant to the Minnesota Valley Regional 
17.25 	Rail Authority for the rehabilitation of a 
17.26 	portion of the railroad track between Winthrop 
17.27 	and Hanley Falls. The grant under this 
17.28 	subdivision may also be used for any required 
17.29 	environmental documentation and 
17.30 	remediation, predesign, design, and 
17.31 	rehabilitation or replacement of bridges with 
17.32 	new bridges or culverts between Winthrop and 
17.33 	Hanley Falls. A grant under this section is in 
17.34 	addition to any grant, loan, or loan guarantee 
17.35 	for this project made by the commissioner 
18.1 	under Minnesota Statutes, sections 222.46 to 
18.2 	222.62. This appropriation is in addition to 
18.3 	the appropriations in Laws 2006, chapter 258, 
18.4 	section 16, subdivision 6; Laws 2008, chapter 
18.5 	179, section 16, subdivision 5; Laws 2009, 
18.6 	chapter 93, article 1, section 11, subdivision 
18.7 	4; Laws 2010, chapter 189, section 15, 
18.8 	subdivision 5; and Laws 2015, First Special 
18.9 	Session chapter 5, article 1, section 10, 
18.10 	subdivision 4.

18.11	Subd. 7.Hugo
 				1,100,000
	
18.12 	For a grant to the Minnesota Commercial 
18.13 	Railway for construction, repairs, and other 
18.14 	capital improvements to approximately 6.5 
18.15 	miles of railroad track described as that portion 
18.16 	of the Minnesota Commercial Railway main 
18.17 	running lead, between M & D Junction in 
18.18 	White Bear Lake and the end of the track in 
18.19 	Hugo. This appropriation must be used for the 
18.20 	purposes set forth in the Minnesota 
18.21 	Constitution, article XI, section 5, clause (i), 
18.22 	to improve and rehabilitate railroad 
18.23 	rights-of-way and other rail facilities, whether 
18.24 	public or private.

18.25	Subd. 8.Port Development Assistance
 				5,000,000
	
18.26 	For grants under Minnesota Statutes, chapter 
18.27 	457A. Any improvements made with the 
18.28 	proceeds of these grants must be publicly 
18.29 	owned.

18.30
18.31	Subd. 9.International Falls-Koochiching County 
Airport Commission
 				3,000,000
	
18.32 	(a) For a grant to the International 
18.33 	Falls-Koochiching County Airport 
18.34 	Commission for the following improvements 
18.35 	to the Falls International Airport:
19.1 	(1) demolition of the existing terminal 
19.2 	building;
19.3 	(2) rehabilitation;
19.4 	(3) site preparation, including utilities and civil 
19.5 	work;
19.6 	(4) design, construction, furnishing, and 
19.7 	equipping Phase II of the new terminal 
19.8 	building, including a Transportation Safety 
19.9 	Administration office, weather office, 
19.10 	conference room, circulation corridor, airport 
19.11 	administration offices, United States Customs 
19.12 	and Border Protection storage rooms, offices, 
19.13 	restrooms, passenger-processing area, 
19.14 	wet-hold room, interview room, search room, 
19.15 	precustoms and postcustoms passenger waiting 
19.16 	areas, and vestibule; and
19.17 	(5) associated appurtenances of a capital 
19.18 	nature.
19.19 	(b) After completion of the improvements 
19.20 	under paragraph (a), any unspent money from 
19.21 	this appropriation may be used by the 
19.22 	International Falls-Koochiching County 
19.23 	Airport Commission for a commercial airline 
19.24 	apron expansion project at the Falls 
19.25 	International Airport.
19.26 	(c) This appropriation does not require a 
19.27 	nonstate contribution or match.

19.28	Subd. 10.Grand Rapids - Pedestrian Bridge
 				750,000
	
19.29 	For a grant to the city of Grand Rapids to 
19.30 	design the construction of a bridge over the 
19.31 	Mississippi River for pedestrian and bicycle 
19.32 	use to provide a safe alternative route to the 
19.33 	existing marked Trunk Highway 169 vehicle 
19.34 	bridge, and to serve as a connection to existing 
20.1 	trail systems on each side of the river. This 
20.2 	appropriation is not available until the 
20.3 	commissioner determines that at least an equal 
20.4 	amount has been committed to the project 
20.5 	from nonstate sources.

20.6	Sec. 15. METROPOLITAN COUNCIL

20.7	Subdivision 1.Total Appropriation
 			$
	3,739,000
	
20.8 	To the Metropolitan Council for the purposes 
20.9 	specified in this section.

20.10
20.11	Subd. 2.Metropolitan Cities Inflow and 
Infiltration Grants
 				3,739,000
	
20.12 	For grants to cities within the metropolitan 
20.13 	area, as defined in Minnesota Statutes, section 
20.14 	473.121, subdivision 2, for capital 
20.15 	improvements in municipal wastewater 
20.16 	collection systems to reduce the amount of 
20.17 	inflow and infiltration to the Metropolitan 
20.18 	Council's metropolitan sanitary sewer disposal 
20.19 	system. Grants from this appropriation are for 
20.20 	up to 50 percent of the cost to mitigate inflow 
20.21 	and infiltration in the publicly owned 
20.22 	municipal wastewater collection systems. To 
20.23 	be eligible for a grant, a city must be identified 
20.24 	by the council as a contributor of excessive 
20.25 	inflow and infiltration in the metropolitan 
20.26 	disposal system or have a measured flow rate 
20.27 	within 20 percent of its allowable 
20.28 	council-determined inflow and infiltration 
20.29 	limits. The council must award grants based 
20.30 	on applications from cities that identify 
20.31 	eligible capital costs and include a timeline 
20.32 	for inflow and infiltration mitigation 
20.33 	construction, pursuant to guidelines 
20.34 	established by the council.

21.1	Sec. 16. HUMAN SERVICES

21.2	Subdivision 1.Total Appropriation
 			$
	9,780,000
	
21.3 	To the commissioner of administration, or 
21.4 	another named agency, for the purposes 
21.5 	specified in this section.

21.6
21.7	Subd. 2.Child and Adolescent Behavioral Health 
Services
 				7,530,000
	
21.8 	(a) To predesign, design, construct, furnish, 
21.9 	and equip a new community-based 16-bed 
21.10 	psychiatric hospital facility to house the Child 
21.11 	and Adolescent Behavioral Health Services 
21.12 	(CABHS) program to be located in or near the 
21.13 	city of Willmar. This appropriation includes 
21.14 	funds for land purchase, surveying, predesign 
21.15 	and design fees, construction administration, 
21.16 	project management, site work, site and 
21.17 	building infrastructure, construction, and 
21.18 	furniture, fixtures, and equipment.
21.19 	(b) Notwithstanding any law to the contrary, 
21.20 	the 16 hospital beds licensed to the CABHS's 
21.21 	facility on January 1, 2017, by the Department 
21.22 	of Health, may transfer to this new facility 
21.23 	upon completion, and approved inspection by 
21.24 	the Departments of Health and Human 
21.25 	Services.

21.26
21.27	Subd. 3.Anoka Metro Regional Treatment 
Center - Safety and Security Renovations
 				2,250,000
	
21.28 	To provide security upgrades of a capital 
21.29 	nature at the Anoka Metro Regional Treatment 
21.30 	Center campus, including but not limited to 
21.31 	control centers, electronic monitoring and 
21.32 	perimeter security equipment, new or updated 
21.33 	security fencing, and other building security 
21.34 	renovations. This appropriation includes 
21.35 	money for: predesign, design, furnishing, 
22.1 	fixtures, and equipment; construction of safety 
22.2 	and security improvements to courtyards on 
22.3 	residential treatment units; securely enclosing 
22.4 	the nursing station on Unit G; and installing 
22.5 	a campus-wide closed-circuit television video 
22.6 	security system, a facility-wide personal 
22.7 	duress alarm system, a key control system, 
22.8 	and an electronic access control system.

22.9	Sec. 17. VETERANS AFFAIRS

22.10	Subdivision 1.Total Appropriation
 			$
	5,000,000
	
22.11 	To the commissioner of administration for the 
22.12 	purposes specified in this section.

22.13	Subd. 2.Asset Preservation
 				5,000,000
	
22.14 	For asset preservation improvements and 
22.15 	betterments of a capital nature at the veterans 
22.16 	homes in Minneapolis, Hastings, Fergus Falls, 
22.17 	Silver Bay, and Luverne, to be spent in 
22.18 	accordance with Minnesota Statutes, section 
22.19 	16B.307.

22.20	Sec. 18. CORRECTIONS

22.21	Subdivision 1.Total Appropriation
 			$
	20,000,000
	
22.22 	To the commissioner of administration for the 
22.23 	purposes specified in this section.

22.24	Subd. 2.Asset Preservation
 				20,000,000
	
22.25 	For asset preservation improvements and 
22.26 	betterments of a capital nature at Minnesota 
22.27 	correctional facilities statewide, to be spent in 
22.28 	accordance with Minnesota Statutes, section 
22.29 	16B.307.

22.30
22.31	Sec. 19. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

22.32	Subdivision 1.Total Appropriation
 			$
	42,272,000
	
23.1 	To the commissioner of employment and 
23.2 	economic development for the purposes 
23.3 	specified in this section.

23.4	Subd. 2.Transportation Economic Development
 				7,000,000
	
23.5 	For grants under Minnesota Statutes, section 
23.6 	116J.436.

23.7
23.8	Subd. 3.Greater Minnesota Business 
Development Public Infrastructure Grants
 				12,000,000
	
23.9 	For grants under Minnesota Statutes, section 
23.10 	116J.431.

23.11
23.12	Subd. 4.Innovative Business Development Public 
Infrastructure Grants
 				2,500,000
	
23.13 	For grants under Minnesota Statutes, section 
23.14 	116J.435.

23.15	Subd. 5.Eagle's Healing Nest
 				300,000
	
23.16 	From the general fund for a grant to Eagle's 
23.17 	Healing Nest in Sauk Centre.

23.18
23.19	Subd. 6.Litchfield - Phase 2 Power Generation 
Improvements
 				3,000,000
	
23.20 	For a grant to the city of Litchfield to design 
23.21 	and construct electrical generation 
23.22 	improvements in the city of Litchfield to 
23.23 	expand the current standby capacity, including 
23.24 	replacement of two old generators. This 
23.25 	appropriation is not available until the 
23.26 	commissioner of management and budget 
23.27 	determines that at least an equal amount is 
23.28 	committed to the project from nonstate 
23.29 	sources.

23.30
23.31	Subd. 7.Minneapolis - Pioneers and Soldiers 
Cemetery Restoration
 				1,029,000
	
23.32 	For a grant to the city of Minneapolis to 
23.33 	restore the historic steel and limestone pillar 
23.34 	fence along Cedar Avenue and Lake Street, 
23.35 	install a new steel fence and pillars along 21st 
24.1 	Avenue South, and install a waterproofing 
24.2 	system for preservation of the fence and 
24.3 	pillars, at the Pioneer and Soldiers Cemetery. 
24.4 	This appropriation does not require a nonstate 
24.5 	contribution.

24.6	Subd. 8.St. James - Public Infrastructure
 				3,443,000
	
24.7 	For a grant to the city of St. James. Of this 
24.8 	amount, $2,193,000 is for engineering, 
24.9 	right-of-way acquisition, and reconstruction 
24.10 	of streets, sidewalks, storm water and sanitary 
24.11 	sewer, water mains, lighting, utilities, and 
24.12 	other capital improvements of publicly owned 
24.13 	infrastructure required for the reconstruction 
24.14 	of marked Trunk Highway 4 in the city of St. 
24.15 	James, and $1,250,000 is for replacement of 
24.16 	the storm sewer drain that serves St. James 
24.17 	Lake and the entire southern section of the 
24.18 	city of St. James.

24.19
24.20	Subd. 9.St. Paul - Science Museum of Minnesota 
Building Preservation
 				13,000,000
	
24.21 	For a grant to the city of St. Paul for predesign, 
24.22 	design, and construction work to replace 
24.23 	water-damaged elements of the Science 
24.24 	Museum of Minnesota's exterior envelope and 
24.25 	some resultant interior damage caused by 
24.26 	latent design and construction defects, subject 
24.27 	to Minnesota Statutes, section 16A.695. This 
24.28 	appropriation is not available until the 
24.29 	commissioner of management and budget 
24.30 	determines that an equal amount has been 
24.31 	committed to the project from nonstate 
24.32 	sources. Capital costs paid by the Science 
24.33 	Museum of Minnesota since January 1, 2014, 
24.34 	relating to the water intrusion damage, shall 
24.35 	count towards the match requirement.

25.1	Sec. 20. PUBLIC FACILITIES AUTHORITY

25.2	Subdivision 1.Total Appropriation
 			$
	114,963,000
	
25.3 	To the Public Facilities Authority for the 
25.4 	purposes specified in this section. The Public 
25.5 	Facilities Authority may use the funds in this 
25.6 	section or other available funds to amend 
25.7 	project financing agreements awarded after 
25.8 	July 1, 2016, based on program changes to 
25.9 	Minnesota Statutes, sections 446A.072 and 
25.10 	446A.073, in article 2 of this act.

25.11	Subd. 2.State Match for Federal Grants
 				17,000,000
	
25.12 	To match federal grants for the clean water 
25.13 	revolving fund under Minnesota Statutes, 
25.14 	section 446A.07, and the drinking water 
25.15 	revolving fund under Minnesota Statutes, 
25.16 	section 446A.081. This appropriation must be 
25.17 	used for qualified capital projects.

25.18	Subd. 3.Water Infrastructure Funding Program
 				55,000,000
	
25.19 	(a) For grants to eligible municipalities under 
25.20 	the water infrastructure funding program under 
25.21 	Minnesota Statutes, section 446A.072.
25.22 	(b) $40,000,000 is for wastewater projects 
25.23 	listed on the Pollution Control Agency's 
25.24 	project priority list in the fundable range under 
25.25 	the clean water revolving fund program.
25.26 	(c) $15,000,000 is for drinking water projects 
25.27 	listed on the Department of Health's project 
25.28 	priority list in the fundable range under the 
25.29 	drinking water revolving fund program.
25.30 	(d) After all eligible projects under paragraph 
25.31 	(b) or (c) have been funded, the Public 
25.32 	Facilities Authority may transfer any 
25.33 	remaining, uncommitted money to eligible 
25.34 	projects under a program defined in paragraph 
26.1 	(b) or (c) based on that program's project 
26.2 	priority list.

26.3
26.4	Subd. 4.Point Source Implementation Grants 
Program
 				33,737,000
	
26.5 	For grants to eligible municipalities under the 
26.6 	point source implementation grants program 
26.7 	under Minnesota Statutes, section 446A.073. 
26.8 	This appropriation must be used for qualified 
26.9 	capital projects.

26.10
26.11	Subd. 5.Big Lake Area Sanitary District - Sewer 
System and Force Main
 				1,200,000
	
26.12 	For a grant to the Big Lake Area Sanitary 
26.13 	District to construct a pressure sewer system 
26.14 	and force main to convey sewage to the 
26.15 	Western Lake Superior Sanitary District 
26.16 	connection in the city of Cloquet. This 
26.17 	appropriation is not available until the 
26.18 	commissioner of management and budget 
26.19 	determines that an equal amount is committed 
26.20 	from nonstate sources. This appropriation is 
26.21 	in addition to the appropriation in Laws 2014, 
26.22 	chapter 294, article 1, section 22, subdivision 
26.23 	4.

26.24
26.25	Subd. 6.Dennison - Sewage Treatment System 
Improvements
 				726,000
	
26.26 	For a grant to the city of Dennison to 
26.27 	predesign, design, and construct a new lift 
26.28 	station and make sewage pond improvements. 
26.29 	This appropriation does not require a nonstate 
26.30 	contribution.

26.31
26.32	Subd. 7.East Grand Forks - Wastewater 
Interconnection Infrastructure
 				5,300,000
	
26.33 	For a grant to the city of East Grand Forks to 
26.34 	design and construct wastewater infrastructure 
26.35 	improvements interconnecting the wastewater 
26.36 	system of East Grand Forks to the wastewater 
27.1 	treatment system in Grand Forks, North 
27.2 	Dakota. This appropriation may not be used 
27.3 	for improvements outside the state. This 
27.4 	appropriation is in addition to grants under 
27.5 	Minnesota Statutes, section 446A.072. A 
27.6 	nonstate match is not required.

27.7
27.8	Subd. 8.Koochiching County - Voyageurs 
National Park Clean Water Project
 				2,000,000
	
27.9 	(a) For a grant to Koochiching County to 
27.10 	acquire land or interests in land, and to design, 
27.11 	engineer, construct, and equip sanitary sewage 
27.12 	systems and facilities to implement a portion 
27.13 	or portions of the Voyageurs National Park 
27.14 	clean water project comprehensive plan. This 
27.15 	appropriation is available after the 
27.16 	commissioner of management and budget 
27.17 	determines that $4,500,000 is committed from 
27.18 	nonstate sources.
27.19 	(b) This appropriation is in addition to the 
27.20 	appropriation in Laws 2014, chapter 294, 
27.21 	article 1, section 22, subdivision 7. 
27.22 	Notwithstanding the match requirement in 
27.23 	Laws 2014, chapter 294, article 1, section 22, 
27.24 	subdivision 7, the nonstate match required for 
27.25 	this appropriation and the 2014 appropriation 
27.26 	for a grant to Koochiching County is 25 
27.27 	percent of the state grant amounts. Any money 
27.28 	remaining from this appropriation after 
27.29 	completion of the projects in paragraph (a) is 
27.30 	available for grants to Koochiching County 
27.31 	or St. Louis County to be used for other capital 
27.32 	projects described in the comprehensive plan 
27.33 	and as determined by the Voyageurs National 
27.34 	Park Clean Water Joint Powers Board.

28.1
28.2	Sec. 21. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	10,000,000
	
28.3 	For transfer to the housing development fund 
28.4 	to finance the costs of rehabilitation to 
28.5 	preserve public housing under Minnesota 
28.6 	Statutes, section 462A.202, subdivision 3a. 
28.7 	For purposes of this section, "public housing" 
28.8 	means housing for low-income persons and 
28.9 	households financed by the federal 
28.10 	government and owned and operated by the 
28.11 	public housing authorities and agencies formed 
28.12 	by cities and counties. Public housing 
28.13 	authorities receiving a public housing 
28.14 	assessment composite score of 80 or above or 
28.15 	an equivalent designation are eligible to 
28.16 	receive funding. Priority must be given to 
28.17 	proposals that maximize federal or local 
28.18 	resources to finance the capital costs. The 
28.19 	priority in Minnesota Statutes, section 
28.20 	462A.202, subdivision 3a, for projects to 
28.21 	increase the supply of affordable housing and 
28.22 	the restrictions of Minnesota Statutes, section 
28.23 	462A.202, subdivision 7, do not apply to this 
28.24 	appropriation.

28.25
28.26	Sec. 22. MINNESOTA HISTORICAL 
SOCIETY

28.27	Subdivision 1.Total Appropriation
 			$
	2,500,000
	
28.28 	To the Minnesota Historical Society for the 
28.29 	purposes specified in this section.

28.30	Subd. 2.Historic Sites Asset Preservation
 				2,500,000
	
28.31 	For capital improvements and betterments at 
28.32 	state historic sites, buildings, landscaping at 
28.33 	historic buildings, exhibits, markers, and 
28.34 	monuments, to be spent in accordance with 
28.35 	Minnesota Statutes, section 16B.307. The 
29.1 	society shall determine project priorities as 
29.2 	appropriate based on need.

29.3	Sec. 23. BOND SALE EXPENSES
 			$
	621,000
	
29.4 	To the commissioner of management and 
29.5 	budget for bond sale expenses under 
29.6 	Minnesota Statutes, section 16A.641, 
29.7 	subdivision 8.

29.8 	Sec. 24. BOND SALE AUTHORIZATION.
 29.9 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
29.10 	the bond proceeds fund, the commissioner of management and budget shall sell and issue 
29.11 	bonds of the state in an amount up to $453,986,000 in the manner, upon the terms, and with 
29.12 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
29.13 	Minnesota Constitution, article XI, sections 4 to 7.
29.14 		Subd. 2.Transportation fund. To provide the money appropriated in this act from the 
29.15 	state transportation fund, the commissioner of management and budget shall sell and issue 
29.16 	bonds of the state in an amount up to $166,691,000 in the manner, upon the terms, and with 
29.17 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
29.18 	Minnesota Constitution, article XI, sections 4 to 7.

29.19 	Sec. 25. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 29.20 	(a) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
29.21 	1990, chapter 610, are canceled and the bond sale authorization in Laws 1990, chapter 610, 
29.22 	article 1, section 30, subdivision 1, as amended, is reduced by $3,129.
29.23 	(b) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
29.24 	1994, chapter 643, are canceled and the bond sale authorization in Laws 1994, chapter 643, 
29.25 	section 31, subdivision 1, as amended, is reduced by $24,480.
29.26 	(c) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
29.27 	1997, Second Special Session chapter 2, are canceled and the bond sale authorization in 
29.28 	Laws 1997, Second Special Session chapter 2, section 12, as amended, is reduced by $96,992.
29.29 	(d) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
29.30 	1999, chapter 240, are canceled and the bond sale authorization in Laws 1999, chapter 240, 
29.31 	article 1, section 13, subdivision 1, as amended, is reduced by $212,472.
30.1 	(e) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
30.2 	2000, chapter 492, are canceled and the bond sale authorization in Laws 2000, chapter 492, 
30.3 	article 1, section 26, subdivision 1, as amended, is reduced by $7,933,538.
30.4 	(f) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
30.5 	2002, chapter 393, are canceled and the bond sale authorization in Laws 2002, chapter 393, 
30.6 	section 30, subdivision 1, as amended, is reduced by $188,471.
30.7 	(g) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
30.8 	2002, First Special Session chapter 1, are canceled and the bond sale authorization in Laws 
30.9 	2002, First Special Session chapter 1, section 9, subdivision 1, is reduced by $217,959.
30.10 	(h) The remaining uncommitted appropriations from the trunk highway bond proceeds 
30.11 	fund in Laws 2003, First Special Session chapter 19, article 3, are canceled and the bond 
30.12 	sale authorization in Laws 2003, First Special Session chapter 19, article 3, section 2, is 
30.13 	reduced by $201,530.
30.14 	(i) The remaining uncommitted appropriations from the trunk highway bond proceeds 
30.15 	fund in Laws 2003, First Special Session chapter 19, article 4, are canceled and the bond 
30.16 	sale authorization in Laws 2003, First Special Session chapter 19, article 4, section 4, is 
30.17 	reduced by $326,534.
30.18 	(j) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
30.19 	2005, chapter 20, are canceled and the bond sale authorization in Laws 2005, chapter 20, 
30.20 	article 1, section 28, subdivision 1, as amended, is reduced by $3,366,628.
30.21 	(k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First Special 
30.22 	Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is canceled 
30.23 	and the bond sale authorization in Laws 2011, First Special Session chapter 12, section 23, 
30.24 	subdivision 1, is reduced by the same amount.
30.25 	(l) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012, First 
30.26 	Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner of public 
30.27 	safety for disaster relief, is canceled and the bond sale authorization in Laws 2012, First 
30.28 	Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
30.29 	(m) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
30.30 	Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster 
30.31 	relief, is canceled and the bond sale authorization in Laws 2012, First Special Session chapter 
30.32 	1, article 1, section 16, subdivision 1, is reduced by the same amount.
31.1 	(n) The $300,000 appropriation from the general fund in Laws 2015, First Special Session 
31.2 	chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.

31.3 	Sec. 26. BOND SALE SCHEDULE.
 31.4 	The commissioner of management and budget shall schedule the sale of state general 
31.5 	obligation bonds so that, during the biennium ending June 30, 2019, no more than $....... 
31.6 	will need to be transferred from the general fund to the state bond fund to pay principal and 
31.7 	interest due and to become due on outstanding state general obligation bonds. During the 
31.8 	biennium, before each sale of state general obligation bonds, the commissioner of 
31.9 	management and budget shall calculate the amount of debt service payments needed on 
31.10 	bonds previously issued and shall estimate the amount of debt service payments that will 
31.11 	be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount of 
31.12 	bonds scheduled to be sold so as to remain within the limit set by this section. The amount 
31.13 	needed to make the debt service payments is appropriated from the general fund as provided 
31.14 	in Minnesota Statutes, section 16A.641.

31.15 	Sec. 27. EFFECTIVE DATE.
 31.16 	Except as otherwise provided, this article is effective the day following final enactment.

31.17 	ARTICLE 2
31.18 	MISCELLANEOUS

31.19 	Section 1. Minnesota Statutes 2016, section 16A.967, subdivision 2, is amended to read:
31.20 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
31.21 	this subdivision, the commissioner may sell and issue appropriation bonds of the state under 
31.22 	this section for public purposes as provided by law, including, in particular, the financing 
31.23 	of the land acquisition, design, engineering, and construction of facilities and infrastructure 
31.24 	necessary to complete the next phase of the Lewis and Clark Regional Water System project, 
31.25 	including completion of the pipeline to Magnolia, extension of the project to the 
31.26 	Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design, 
31.27 	and easement acquisition for the final phase of the project to Worthington. No bonds shall 
31.28 	be sold until the commissioner determines that a nonstate match of at least $9,000,000 is 
31.29 	committed to this project phase. Grant agreements entered into under this section must 
31.30 	provide for reimbursement to the state from any federal money provided for the project, 
31.31 	consistent with the Lewis and Clark Regional Water System, Inc., agreement.
32.1 	(b) The appropriation bonds may be issued and sold only after the commissioner 
32.2 	determines that the construction and administration for work done on the project will comply 
32.3 	with (1) all federal requirements and regulations associated with the Lewis and Clark Rural 
32.4 	Water System Act of 2000, and (2) the cooperative agreement between the United States 
32.5 	Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds 
32.6 	of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond 
32.7 	proceeds fund in the state treasury. All income from investment of the bond proceeds, as 
32.8 	estimated by the commissioner, is appropriated to the commissioner for the payment of 
32.9 	principal and interest on the appropriation bonds.
32.10 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
32.11 	commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of 
32.12 	costs of issuance, for the purposes as provided under paragraph (a), and pay debt service 
32.13 	including capitalized interest, costs of issuance, costs of credit enhancement, or make 
32.14 	payments under other agreements entered into under paragraph (e).
32.15 	(d) Appropriation bonds may be issued in one or more issues or series on the terms and 
32.16 	conditions the commissioner determines to be in the best interests of the state, but the term 
32.17 	on any series of appropriation bonds may not exceed 25 years. The appropriation bonds of 
32.18 	each issue and series thereof shall be dated and bear interest, and may be includable in or 
32.19 	excludable from the gross income of the owners for federal income tax purposes.
32.20 	(e) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time 
32.21 	thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter 
32.22 	into agreements and ancillary arrangements relating to the appropriation bonds, including 
32.23 	but not limited to trust indentures, grant agreements, lease or use agreements, operating 
32.24 	agreements, management agreements, liquidity facilities, remarketing or dealer agreements, 
32.25 	letter of credit agreements, insurance policies, guaranty agreements, reimbursement 
32.26 	agreements, indexing agreements, or interest exchange agreements. Any payments made 
32.27 	or received according to the agreement or ancillary arrangement shall be made from or 
32.28 	deposited as provided in the agreement or ancillary arrangement. The determination of the 
32.29 	commissioner included in an interest exchange agreement that the agreement relates to an 
32.30 	appropriation bond shall be conclusive.
32.31 	(f) The commissioner may enter into written agreements or contracts relating to the 
32.32 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
32.33 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
32.34 	including Securities and Exchange Commission rules and regulations in Code of Federal 
32.35 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
33.1 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
33.2 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
33.3 	the order or resolution.
33.4 	(g) The appropriation bonds are not subject to chapter 16C.
33.5 	(h) Upon certification to the commissioner by the Lewis and Clark Joint Powers Board 
33.6 	that the bond sale authorization provided in paragraph (c) has fully met the needs of the 
33.7 	project described in paragraph (a), and to the extent there is additional authorization 
33.8 	remaining, this authorization is also available for land acquisition, design, engineering, and 
33.9 	construction of facilities and infrastructure necessary for Phase 3 of the Lewis and Clark 
33.10 	Regional Water System project. Phase 3 includes extension of the project from the 
33.11 	Lincoln-Pipestone Rural Water System connection near Adrian to Worthington, construction 
33.12 	of a reservoir in Nobles County and a meter building in Worthington, and acquisition and 
33.13 	installation of a supervisory control and data acquisition system.

33.14 	Sec. 2. Minnesota Statutes 2016, section 16A.967, subdivision 7, is amended to read:
33.15 		Subd. 7.Appropriation of proceeds. The proceeds of appropriation bonds and interest 
33.16 	credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated 
33.17 	as follows: (1) to the commissioner Public Facilities Authority for a grant or grants to the 
33.18 	Lewis and Clark Joint Powers Board for payment of capital expenses for the purposes 
33.19 	provided by subdivision 2, paragraph paragraphs (a),and (h); and (2) to the commissioner 
33.20 	for debt service on the bonds including capitalized interest, nonsalary costs of issuance of 
33.21 	the bonds, costs of credit enhancement of the bonds and payments under any agreements 
33.22 	entered into under subdivision 2, paragraph (e), each as permitted by state and federal law, 
33.23 	and such proceeds may be granted, loaned, or otherwise provided for the public purposes 
33.24 	provided by subdivision 2, paragraph (a).

33.25 	Sec. 3. [16C.053] ACCOMMODATION FOR HARD-OF-HEARING IN 
33.26 	STATE-FUNDED CAPITAL PROJECTS.
33.27 		Subdivision 1.Definition. For purposes of this section, "public gathering space" means 
33.28 	a space that is constructed or renovated as part of the project: (1) that accommodates and 
33.29 	is intended to be used for gatherings of 15 or more people; and (2) in which audible 
33.30 	communications are integral to a use of the space.
33.31 		Subd. 2.Accommodation for hard-of-hearing in state-funded capital projects. No 
33.32 	commissioner or agency head may approve a contract or grant state funds for a capital 
33.33 	improvement project to construct or renovate a public gathering space in a building unless:
34.1 	(1) the project includes equipping the public gathering space, if the public gathering 
34.2 	space has or will have a permanent audio-amplification system, with audio-induction loops 
34.3 	to provide an electromagnetic signal for hearing aids and cochlear implants; and
34.4 	(2) the project includes meeting the American National Standards Institute Acoustical 
34.5 	Performance Criteria, Design Requirements and Guidelines for Schools on maximum 
34.6 	background noise level and reverberation times in the public gathering space.
34.7 		Subd. 3.Exemption. A commissioner or agency head may approve a contract or grant 
34.8 	state funds for a capital improvement project to construct or renovate a building that does 
34.9 	not meet a requirement of subdivision 2, when the commissioner or agency head determines 
34.10 	that meeting that requirement is not feasible, is in conflict with other requirements in law, 
34.11 	is in conflict with other project requirements, or that costs outweigh the benefits. The 
34.12 	commissioner must consult with the Commission of Deaf, Deafblind, and Hard-of-Hearing 
34.13 	Minnesotans before making the determination.
34.14 		Subd. 4.Exemption reports. A commissioner or agency head who determines a contract 
34.15 	is exempt under subdivision 3 must report the exemption to the Commission of Deaf, 
34.16 	Deafblind, and Hard-of-Hearing Minnesotans within three months of making the 
34.17 	determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing 
34.18 	Minnesotans shall submit a report to the chairs and ranking minority members of the 
34.19 	committees in the house of representatives and senate with jurisdiction over state contracting 
34.20 	by January 30 of even-numbered years beginning in 2020 identifying each exemption 
34.21 	reported in the previous two calendar years.

34.22 	EFFECTIVE DATE. (a) This section is effective the day following final enactment, 
34.23 	and, except as provided in paragraph (b), applies to any project funded with an appropriation 
34.24 	enacted after January 1, 2017.
34.25 	(b) This section does not apply to a project that has completed schematic design on the 
34.26 	effective date of this section, but the commissioner and agency heads are encouraged to 
34.27 	comply with it.

34.28 	Sec. 4. Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:
34.29 		Subd. 2.Standards. (a) An appropriation for asset preservation may be used only for a 
34.30 	capital expenditure on a capital asset previously owned by the state, within the meaning of 
34.31 	generally accepted accounting principles as applied to public expenditures. The commissioner 
34.32 	of natural resources will consult with the commissioner of management and budget to the 
34.33 	extent necessary to ensure this and will furnish the commissioner of management and budget 
35.1 	a list of projects to be financed from the account in order of their priority. The legislature 
35.2 	assumes that many projects for preservation and replacement of portions of existing capital 
35.3 	assets will constitute betterments and capital improvements within the meaning of the 
35.4 	Constitution and capital expenditures under generally accepted accounting principles, and 
35.5 	will be financed more efficiently and economically under this section than by direct 
35.6 	appropriations for specific projects.
35.7 	(b) An appropriation for asset preservation must not be used to acquire land or to acquire 
35.8 	or construct buildings or other facilities.
35.9 	(c) Capital budget expenditures for natural resource asset preservation and replacement 
35.10 	projects must be for one or more of the following types of capital projects that support the 
35.11 	existing programmatic mission of the department: code compliance including health and 
35.12 	safety, Americans with Disabilities Act requirements, hazardous material abatement, access 
35.13 	improvement, or air quality improvement; building energy efficiency improvements using 
35.14 	current best practices; building or infrastructure repairs necessary to preserve the interior 
35.15 	and exterior of existing buildings; projects to remove life safety hazards such as building 
35.16 	code violations or structural defects; or renovation of other existing improvements to land, 
35.17 	including but not limited to trails and bridges.
35.18 	(d) Up to ten percent of an appropriation awarded under this section may be used for 
35.19 	design costs for projects eligible to be funded from this account in anticipation of future 
35.20 	funding from the account.

35.21 	Sec. 5. Minnesota Statutes 2016, section 85.34, subdivision 1, is amended to read:
35.22 		Subdivision 1.Upper bluff; lease terms. The commissioner of natural resources with 
35.23 	the approval of the Executive Council may lease for purposes of restoration, preservation, 
35.24 	historical, recreational, educational, and commercial use and development, that portion of 
35.25 	Fort Snelling State Park known as the upper bluff consisting of officer's row, area J, the 
35.26 	polo grounds, the adjacent golf course, and all buildings and improvements located thereon, 
35.27 	all lying within an area bounded by Minneapolis-St. Paul International Airport, Trunk 
35.28 	Highways numbered 5 and 55, and Bloomington Road. The lease or leases shall be in a 
35.29 	form approved by the attorney general and for a term of not to exceed 99 years. The lease 
35.30 	or leases may provide for the provision of capital improvements or other performance by 
35.31 	the tenant or tenants in lieu of all or some of the payments of rent that would otherwise be 
35.32 	required. Notwithstanding the continuing ownership of the upper bluff by the state, any 
35.33 	lease of one or more buildings improved with state general obligation bond proceeds that 
35.34 	exceeds 50 years shall be treated as a sale of the buildings for purposes of section 16A.695, 
36.1 	subdivision 3. Any disposition proceeds payable to the commissioner upon execution of a 
36.2 	lease relating to state-bond-financed buildings at the upper bluff shall be applied according 
36.3 	to section 16A.695, subdivision 3, and used to pay, redeem, or defease state general obligation 
36.4 	bonds issued for purposes of improving those buildings. Any lease revenues paid to the 
36.5 	commissioner subsequent to the payment, redemption, or defeasance of state general 
36.6 	obligation bonds shall be used by the commissioner as further described in this section.

36.7 	Sec. 6. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
36.8 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
36.9 	disbursement of an appropriation made from the fund to the commissioner of transportation 
36.10 	for grants to subdivisions of the state, the commissioner shall certify that:
36.11 	(1) that the project for which the grant is made has been reviewed as provided in 
36.12 	subdivision 4;
36.13 	(2) that the project conforms to the program authorized by the appropriation law and 
36.14 	rules adopted by the Department of Transportation consistent therewith; and
36.15 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
36.16 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
36.17 	subdivision, or by a grant from an agency of the federal government, within the amount of 
36.18 	funds then appropriated to that agency and allocated by it to projects within the state, and 
36.19 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
36.20 	use all funds so made available exclusively for the project, and to pay any additional amount 
36.21 	by which the cost exceeds the estimate through appropriation to the construction fund of 
36.22 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

36.23 	Sec. 7. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
36.24 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
36.25 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
36.26 	less for design, engineering, and construction of bridges on city streets.
36.27 	(b) Grants under this subdivision are subject to the procedures and criteria established 
36.28 	under subdivisions 5, 6, and 7.
36.29 	(c) (b) Grants may be used for:
36.30 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
36.31 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
37.1 	(3) 100 percent of the bridge construction work costs.

37.2 	Sec. 8. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
37.3 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
37.4 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
37.5 	eligible for a grant under this subdivision, the project must produce a bridge structure:
37.6 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
37.7 	(2) whose failure of a main component will not result in the collapse of the bridge.
37.8 	(b) A grant under this subdivision is subject to the procedures and criteria established 
37.9 	under subdivisions 5 and 6.

37.10 	Sec. 9. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
37.11 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
37.12 	shall develop rules, procedures for application for grants, conditions of grant administration, 
37.13 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
37.14 	cooperation with road authorities of political subdivisions, for use in the administration of 
37.15 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
37.16 	Grants under this section are subject to the procedures and criteria established in this 
37.17 	subdivision and in subdivisions 5 and 6.
37.18 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
37.19 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
37.20 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
37.21 	must be ten feet or more in length.
37.22 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
37.23 	road authorities, establish a minimum distance between any two bridges that cross over the 
37.24 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
37.25 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
37.26 	distance requirement or procedures for obtaining a variance.
37.27 	(d) Political subdivisions may use grants made under this section to construct or 
37.28 	reconstruct bridges, including but not limited to:
37.29 	(1) matching federal aid grants to construct or reconstruct key bridges;
37.30 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
37.31 	replacement but where no replacement will be made; and
38.1 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
38.2 	existing bridge if the commissioner determines that the bridge is deficient, and that 
38.3 	construction of the road or street is more economical than replacement of the existing bridge.
38.4 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
38.5 	fund shall be segregated from the highway tax user distribution fund and other funds created 
38.6 	by article XIV of the Minnesota Constitution.
38.7 	(f) The maximum grant amount for a local bridge replacement or rehabilitation project 
38.8 	under this section is $7,000,000. If, in any year, money appropriated for local bridge 
38.9 	replacement or rehabilitation projects remains available after all projects on the 
38.10 	commissioner's priority list for which the state share is $7,000,000 or less have been funded, 
38.11 	the commissioner may make grants for more than $7,000,000.

38.12 	Sec. 10. [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY 
38.13 	ACCOUNT.
38.14 		Subdivision 1.Purpose. A hazardous materials rail safety program is established for 
38.15 	the purpose of reducing the risks associated with the transportation of hazardous material 
38.16 	by rail.
38.17 		Subd. 2.Creation of account. A hazardous materials rail safety program account is 
38.18 	established in the bond proceeds fund. Money in the account may only be used for capital 
38.19 	costs associated with planning, engineering, administration, and construction of public 
38.20 	highway-rail grade crossing improvements on rail corridors transporting crude oil and other 
38.21 	hazardous materials. Improvements may include upgrades to existing protection systems, 
38.22 	the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings 
38.23 	to full grade separations.
38.24 		Subd. 3.Grants. The commissioner may approve grants for financial assistance to 
38.25 	eligible applicants for capital costs associated with hazardous materials rail safety projects 
38.26 	on public highway-rail grade crossings. Qualifying capital costs include, but are not limited 
38.27 	to, upgrades to existing protection systems, the closing of crossings and necessary roadwork, 
38.28 	and reconstruction of at-grade crossings to full grade separations.
38.29 		Subd. 4.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
38.30 	that are responsible for establishing and maintaining public highway-rail grade crossings 
38.31 	on rail corridors transporting crude oil and other hazardous materials may apply to the 
38.32 	commissioner for financial assistance for the purposes in this section.
39.1 		Subd. 5.Criteria for grant award. The commissioner shall consider the following 
39.2 	criteria to evaluate applications for a grant award for a hazardous materials rail safety project:
39.3 	(1) whether the crossing was identified as a potential candidate for grade separation in 
39.4 	MnDOT's crude by rail grade crossing study (Improvements to Highway Grade Crossings 
39.5 	and Rail Safety, December 2014);
39.6 	(2) roadway traffic volumes and speeds;
39.7 	(3) train volumes and speeds;
39.8 	(4) adjacent land use;
39.9 	(5) crash history;
39.10 	(6) use of the crossing by emergency vehicles;
39.11 	(7) use of the crossing by vehicles carrying hazardous materials; and
39.12 	(8) local financial contributions to the project.

39.13 	Sec. 11. Minnesota Statutes 2016, section 446A.072, is amended to read:
39.14 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING PROGRAM.
39.15 		Subdivision 1.Establishment of program. The authority will establish a wastewater
39.16 	water infrastructure funding program to provide supplemental assistance to governmental 
39.17 	units receiving funding through the clean water revolving fund program, the drinking water 
39.18 	revolving fund program, or the United States Department of Agriculture Rural Economic 
39.19 	and Community Development's (USDA/RECD) Water and Waste Disposal Loans and 
39.20 	Grants program for the predesign, design, and construction of municipal wastewater treatment
39.21 	and drinking water systems, including purchase of land and easements. The purpose of the 
39.22 	program is to assist governmental units demonstrating financial need to build cost-effective 
39.23 	projects to address existing environmental or public health problems. To implement the 
39.24 	program, the authority shall establish a wastewater water infrastructure fund to provide 
39.25 	grants and loans for the purposes authorized under title VI of the Federal Water Pollution 
39.26 	Control Act and the federal Safe Drinking Water Act. The fund shall be credited with all 
39.27 	investment income from the fund and all repayments of loans, grants, and penalties.
39.28 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
39.29 	assistance, as provided in subdivision 5a to governmental units:
39.30 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
39.31 	the Department of Health's project priority list;
40.1 	(2) that demonstrate their projects are a cost-effective solution to an existing 
40.2 	environmental or public health problem; and
40.3 	(3) whose projects are approved by the USDA/RECD or certified by the commissioner 
40.4 	of the Pollution Control Agency or the Department of Health.
40.5 	(b) For a governmental unit receiving grant funding from the USDA/RECD, applications 
40.6 	must be made to the USDA/RECD with additional information submitted to the authority 
40.7 	as required by the authority. Eligible project costs and affordability criteria shall be 
40.8 	determined by the USDA/RECD.
40.9 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
40.10 	application must be made to the authority on forms prescribed by the authority for the clean 
40.11 	water revolving fund program or the drinking water revolving fund program with additional 
40.12 	information as required by the authority. In accordance with section 116.182, the Pollution 
40.13 	Control Agency or Department of Health shall:
40.14 	(1) calculate the essential project component percentage based on the portion of project 
40.15 	costs necessary to convey or treat the existing wastewater flows and loadings or, for drinking 
40.16 	water projects, to provide safe drinking water to meet existing needs, which must be 
40.17 	multiplied by the total project cost to determine the eligible project cost for the program 
40.18 	under this section; and
40.19 	(2) review and certify approved projects to the authority.
40.20 	(d) Each fiscal year the authority shall make funds available for projects based on their 
40.21 	ranking on the Pollution Control Agency's project priority list or the Department of Health's 
40.22 	project priority list. The authority shall reserve funds for a project when the applicant receives 
40.23 	a funding commitment from the United States Department of Agriculture Rural Development 
40.24 	(USDA/RECD) or submits plans and specifications to the project is certified by the Pollution 
40.25 	Control Agency or Department of Health. Funds must be reserved in an amount based on 
40.26 	the project cost estimate submitted to the authority prior to the appropriation of the funds 
40.27 	and awarded based on the lesser of that amount or the as-bid cost when the project is certified 
40.28 	or the as-bid cost, whichever is less.
40.29 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
40.30 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
40.31 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
40.32 	unit may not receive a grant under this paragraph for more than $4,000,000 $5,000,000 per 
40.33 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
40.34 	approved by law.
41.1 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
41.2 	section 446A.07, the authority may provide assistance under this section in the form of a 
41.3 	grant if the average annual residential wastewater system cost after completion of the project 
41.4 	would otherwise exceed 1.4 percent of the median household income of the project service 
41.5 	area. In determining whether the average annual residential wastewater system cost would 
41.6 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
41.7 	operating, and maintaining the wastewater system, including existing wastewater debt 
41.8 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
41.9 	service costs for the proposed project are calculated based on the maximum loan term 
41.10 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
41.11 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
41.12 	annual residential wastewater system cost to 1.4 percent of median household income in 
41.13 	the project service area, to a maximum of $4,000,000 $5,000,000 per project or $15,000
41.14 	$20,000 per existing connection, whichever is less, unless specifically approved by law. 
41.15 	The eligible project cost is determined by multiplying the total project costs minus any other 
41.16 	grants by the essential project component percentage calculated under subdivision 3, 
41.17 	paragraph (c), clause (1). In no case may the amount of the grant exceed 80 percent of the 
41.18 	eligible project cost.
41.19 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
41.20 	under section 446A.081, the authority may provide assistance under this section in the form 
41.21 	of a grant if the average annual residential drinking water system cost after completion of 
41.22 	the project would otherwise exceed 1.2 percent of the median household income of the 
41.23 	project service area. In determining whether the average annual residential drinking water 
41.24 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
41.25 	with building, operating, and maintaining the drinking water system, including existing 
41.26 	drinking water debt service, debt service on the eligible project cost, and operation and 
41.27 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
41.28 	maximum loan term permitted for the drinking water revolving fund loan under section 
41.29 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
41.30 	the amount needed to reduce the average annual residential drinking water system cost to 
41.31 	1.2 percent of median household income in the project service area, to a maximum of 
41.32 	$5,000,000 per project or $20,000 per existing connection, whichever is less, unless 
41.33 	specifically approved by law. The eligible project cost is determined by multiplying the 
41.34 	total project costs minus any other grants by the essential project component percentage 
41.35 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
41.36 	grant exceed 80 percent of the eligible project cost.
42.1 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a governmental 
42.2 	unit receiving supplemental assistance under this section after January 1, 2002, if the authority 
42.3 	determines that the governmental unit's construction and installation costs are significantly 
42.4 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
42.5 	limits that are more stringent than secondary treatment, the maximum award under this 
42.6 	section shall not be more than $25,000 per existing connection.
42.7 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan under 
42.8 	subdivision 5a that levies special assessments to repay the loan under subdivision 5a or 
42.9 	section 446A.07 may defer payment of such assessments under the provisions of sections 
42.10 	435.193 to 435.195.
42.11 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this section 
42.12 	by the authority to recipients must be made for eligible project costs as incurred by the 
42.13 	recipients, and must be made by the authority in accordance with the project financing 
42.14 	agreement and applicable state and federal laws and rules governing the payments.
42.15 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 475.54, 
42.16 	subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund 
42.17 	redemptions of the loans under this section. A governmental unit receiving a loan under 
42.18 	this section shall repay the loan in semiannual payment amounts determined by the authority. 
42.19 	The payment amount must be based on the average payments on the governmental unit's 
42.20 	clean water revolving fund loan or, if greater, the minimum amount required to fully repay 
42.21 	the loan by the maturity date. Payments must begin within one year of the date of the 
42.22 	governmental unit's final payment on the clean water revolving fund loan. The final maturity 
42.23 	date of the loan under this section must be no later than 20 years from the date of the first 
42.24 	payment on the loan under this section and no later than 40 years from the date of the first 
42.25 	payment on the clean water revolving fund loan.
42.26 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
42.27 	only after applying for grant funding from other sources and funding has been obtained, 
42.28 	rejected, or the authority has determined that the potential funding is unlikely.
42.29 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce the 
42.30 	sewer service charges of a significant wastewater contributor industrial user that has a 
42.31 	separate service charge agreement with the recipient, or a single user that has caused the 
42.32 	need for the project or whose current or projected flow and load exceed usage exceeds
42.33 	one-half of the current wastewater treatment plant's or drinking water system capacity.
43.1 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the authority, 
43.2 	in conjunction with the Pollution Control Agency and the Department of Health, shall 
43.3 	prepare a report to the Finance Division of the senate Environment and Natural Resources 
43.4 	Committee and the house of representatives Environment and Natural Resources Finance 
43.5 	Committee on wastewater and drinking water funding assistance needs of governmental 
43.6 	units under this section.
43.7 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or grant 
43.8 	under this section shall establish a system replacement fund and shall annually deposit a 
43.9 	minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, or 
43.10 	replacement of the treatment wastewater or drinking water system, or replacement of the 
43.11 	treatment system at the end of its useful life. Money must remain in the account for the life 
43.12 	of the corresponding project loan from the authority or USDA/RECD, unless use of the 
43.13 	fund is approved in writing by the authority for major rehabilitation, expansion, or 
43.14 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
43.15 	during the life of the loan, each recipient shall submit a report to the authority regarding the 
43.16 	amount deposited and the fund balance for the prior calendar year. A recipient is not required 
43.17 	to maintain a fund balance greater than the amount of the grant received. Failure to comply 
43.18 	with the requirements of this subdivision shall result in the authority assessing a penalty 
43.19 	fee to the recipient equal to one percent of the supplemental assistance amount for each 
43.20 	year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
43.21 	required constitutes a default on the loan.
43.22 		Subd. 14.Consistency with land use plans. A governmental unit applying for a project 
43.23 	in an unsewered area shall include in its application to the authority a certification from the 
43.24 	county in which the project is located that:
43.25 	(1) the project is consistent with the county comprehensive land use plan, if the county 
43.26 	has adopted one;
43.27 	(2) the project is consistent with the county water plan, if the county has adopted one; 
43.28 	and
43.29 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
43.30 	exceed the requirements of Minnesota Rules, part 7082.0050.

43.31 	Sec. 12. Minnesota Statutes 2016, section 446A.073, is amended to read:
43.32 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
44.1 		Subdivision 1.Program established. When money is appropriated for grants under this 
44.2 	program, the authority shall award grants up to a maximum of $3,000,000 $7,000,000 to 
44.3 	governmental units to cover up to one-half 80 percent of the cost of water infrastructure 
44.4 	projects made necessary by:
44.5 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
44.6 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
44.7 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
44.8 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
44.9 	Pollution Control Agency;
44.10 	(3) any other water quality-based effluent limit established under section 115.03, 
44.11 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution 
44.12 	Control Agency that exceeds secondary treatment limits; or
44.13 	(4) a total nitrogen concentration or mass limit of that requires discharging ten milligrams 
44.14 	per liter or less for a land-based treatment system at permitted design flow.
44.15 		Subd. 2.Grant application. Application for a grant must be made to the authority on 
44.16 	forms prescribed by the authority for the total maximum daily load grant program, with 
44.17 	additional information as required by the authority, including a project schedule and cost 
44.18 	estimate for the work necessary to comply with the point source wasteload allocation
44.19 	requirements listed in subdivision 1. The Pollution Control Agency shall:
44.20 	(1) in accordance with section 116.182, calculate the essential project component 
44.21 	percentage, which must be multiplied by the total project cost to determine the eligible 
44.22 	project cost; and
44.23 	(2) review and certify to the authority those projects that have plans and specifications 
44.24 	approved under section 115.03, subdivision 1, paragraph (f).
44.25 		Subd. 3.Project priorities. When money is appropriated for grants under this program,
44.26 	The authority shall accept applications under this program during the month of July and. 
44.27 	When a project is certified by the Pollution Control Agency the authority shall reserve 
44.28 	money for projects expected to proceed with construction by the end of the fiscal year the 
44.29 	project in the order listed on the Pollution Control Agency's project priority list and in an 
44.30 	amount based on the cost estimate submitted to the authority in the grant application when 
44.31 	the project is certified or the as-bid costs, whichever is less. Notwithstanding Minnesota 
44.32 	Rules, chapter 7077, the Pollution Control Agency may rank a drinking water infrastructure 
45.1 	project on the agency's project priority list if the project is necessary to meet an applicable 
45.2 	requirement in subdivision 1.
45.3 		Subd. 4.Grant approval. The authority must make a grant for an eligible project only 
45.4 	after:
45.5 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
45.6 	(2) the Pollution Control Agency has approved the as-bid costs and certified the grant 
45.7 	eligible portion of the project; and
45.8 	(3) the authority has determined that the additional financing necessary to complete the 
45.9 	project has been committed from other sources.
45.10 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible project 
45.11 	costs as incurred by the governmental unit and in accordance with a project financing 
45.12 	agreement and applicable state and federal laws and rules governing the payments.

45.13 	Sec. 13. Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:
45.14 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be used 
45.15 	as provided in the act, including the following uses:
45.16 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
45.17 	systems for drinking water systems, where the debt was incurred after the date of enactment 
45.18 	of the act, for the purposes of construction of the necessary improvements to comply with 
45.19 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
45.20 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
45.21 	access or reduce interest rates;
45.22 	(3) to provide a source of revenue or security for the payment of principal and interest 
45.23 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
45.24 	deposited in the fund;
45.25 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
45.26 	governmental unit or state agency;
45.27 	(5) to earn interest on fund accounts;
45.28 	(6) to pay the reasonable costs incurred by the authority, the Department of Employment 
45.29 	and Economic Development, and the Department of Health for conducting activities as 
45.30 	authorized and required under the act up to the limits authorized under the act;
46.1 	(7) to develop and administer programs for water system supervision, source water 
46.2 	protection, and related programs required under the act;
46.3 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal forgiveness 
46.4 	or grants to the extent permitted under the federal Safe Drinking Water Act and other federal 
46.5 	law, based on the criteria and requirements established for drinking water projects under 
46.6 	the water infrastructure funding program under section 446A.072;
46.7 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
46.8 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
46.9 	or energy efficiency improvements, or other environmentally innovative activities; and
46.10 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up to 
46.11 	a maximum of $10,000 for projects needed to comply with national primary drinking water 
46.12 	standards for an existing community or noncommunity public water system.
46.13 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be provided 
46.14 	if the average annual residential drinking water system cost after completion of the project 
46.15 	would otherwise exceed 1.2 percent of the median household income in the project service 
46.16 	area. In determining whether the average annual residential drinking water system cost 
46.17 	would exceed 1.2 percent, the authority must consider the total costs associated with building, 
46.18 	operating, and maintaining the drinking water system, including debt service and operation 
46.19 	and maintenance costs. Debt service costs for the proposed project must be calculated based 
46.20 	on the maximum loan term permitted for the drinking water revolving fund loan under this 
46.21 	section. The amount of the principal forgiveness or grant must be equal to 80 percent of the 
46.22 	amount needed to reduce the average annual residential drinking water system cost to 1.2 
46.23 	percent of median household income in the project service area, to a maximum of $4,000,000 
46.24 	or $15,000 per connection, whichever is less, and not to exceed 80 percent of the total project 
46.25 	cost.
46.26 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not 
46.27 	exceed 25 percent of the eligible project costs as determined by the Department of Health 
46.28 	for project components directly related to green infrastructure, water or energy efficiency 
46.29 	improvements, or other environmentally innovative activities, up to a maximum of 
46.30 	$1,000,000.
46.31 	(d) The authority may reduce the percentage of median household income at which a 
46.32 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which principal 
46.33 	forgiveness or grants could be provided under paragraph (b) if it determines that the federal 
46.34 	money allotted to the state cannot be fully utilized without the reduction. If it determines 
47.1 	that the reduction is necessary to fully utilize the federal money, the authority must effect 
47.2 	the change through its approval of the annual intended use plan.

47.3 	Sec. 14. Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:
47.4 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
47.5 	principal amount that the authority determines necessary to provide sufficient funds for 
47.6 	achieving its purposes, including the making of loans and purchase of securities, the payment 
47.7 	of interest on bonds of the authority, the establishment of reserves to secure its bonds, the 
47.8 	payment of fees to a third party providing credit enhancement, and the payment of all other 
47.9 	expenditures of the authority incident to and necessary or convenient to carry out its corporate 
47.10 	purposes and powers, but not including the making of grants. Bonds of the authority may 
47.11 	be issued as bonds or notes or in any other form authorized by law. The principal amount 
47.12 	of bonds issued and outstanding under this section at any time may not exceed 
47.13 	$1,500,000,000 $2,000,000,000, excluding bonds for which refunding bonds or crossover 
47.14 	refunding bonds have been issued, and excluding any bonds issued for the credit enhanced 
47.15 	bond program or refunding or crossover refunding bonds issued under the program. The 
47.16 	principal amount of bonds issued and outstanding under section 446A.087, may not exceed 
47.17 	$500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds 
47.18 	have been issued.

47.19 	Sec. 15. Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:
47.20 		Subd. 2a.Additional authorization. In addition to the amount authorized in subdivision 
47.21 	2, the agency may issue up to $80,000,000 $95,000,000 of housing infrastructure bonds in 
47.22 	one or more series to which the payments made under this section may be pledged.

47.23 	Sec. 16. Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:
47.24 		Subd. 2b.Additional authorization. In addition to the amount authorized in subdivisions 
47.25 	2 and 2a, the agency may issue up to $10,000,000 $15,000,000 of housing infrastructure 
47.26 	bonds in one or more series to which the payments made under this section may be pledged.

47.27 	Sec. 17. Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 2013, 
47.28 	chapter 136, section 13, is amended to read:

47.29
47.30	Subd. 6.Systemwide Redevelopment, Reuse, or 
Demolition
 				5,000,000
	
47.31 	To abate hazardous materials, design, 
47.32 	construct, or improve basic infrastructure, 
48.1 	including sanitary and storm sewer and water 
48.2 	lines, public streets, curb, gutter, street lights, 
48.3 	or sidewalks, to make improvements for 
48.4 	building envelope and structural integrity for 
48.5 	the purposes of stabilizing the buildings for 
48.6 	sale, demolish all or portions of surplus, 
48.7 	nonfunctional, or deteriorated facilities and 
48.8 	infrastructure or to renovate surplus, 
48.9 	nonfunctional, or deteriorated facilities and 
48.10 	infrastructure to facilitate redevelopment of 
48.11 	Department of Human Services campuses that 
48.12 	the commissioner of administration is 
48.13 	authorized to convey to a local unit of 
48.14 	government under Laws 2005, chapter 20, 
48.15 	article 1, section 46, or other law. These 
48.16 	projects must facilitate the redevelopment or 
48.17 	reuse of these campuses and must be 
48.18 	implemented consistent with the 
48.19 	comprehensive redevelopment plans 
48.20 	developed and approved under Laws 2003, 
48.21 	First Special Session chapter 14, article 6, 
48.22 	section 64, subdivision 2, unless expressly 
48.23 	provided otherwise. If a surplus campus is sold 
48.24 	or transferred to a local unit of government, 
48.25 	unspent portions of this appropriation may be 
48.26 	granted to that local unit of government for 
48.27 	the purposes stated in this subdivision. 
48.28 	Notwithstanding the inclusion of the 
48.29 	unencumbered and unobligated balance of the 
48.30 	bond sale authorization and appropriation of 
48.31 	bond proceeds in this subdivision in the report 
48.32 	submitted to the legislature in January 2017 
48.33 	pursuant to Minnesota Statutes, section 
48.34 	16A.642, the unencumbered and obligated 
48.35 	balance of the bond sale authorization and 
48.36 	appropriation of bond proceeds in this 
49.1 	subdivision are, estimated to be $1,991,456.32, 
49.2 	is reauthorized and available until December 
49.3 	31, 2016 2020.

49.4 	Sec. 18. Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:

49.5
49.6	Subd. 3.Dam Repair, Reconstruction, and 
Removal
 				3,000,000
	
49.7 	To renovate or remove publicly owned dams. 
49.8 	The commissioner shall determine project 
49.9 	priorities as appropriate under Minnesota 
49.10 	Statutes, sections 103G.511 and 103G.515.
49.11 	Notwithstanding the match requirements in 
49.12 	Minnesota Statutes, section 103G.511, a grant 
49.13 	to the city of Lanesboro does not require any 
49.14 	nonstate match.

49.15 	Sec. 19. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to read:

49.16
49.17	Subd. 12.West St. Paul - North UrbanRiver to 
River Regional Trail Bridge Greenway
 				2,000,000
	
49.18 	For a grant to the city of West St. Paul to 
49.19 	predesign, design, and construct a pedestrian 
49.20 	bridge for the North Urban Regional Trail as 
49.21 	an overpassgrade separated crossing of Robert 
49.22 	Street in the area near Wentworth Avenue in 
49.23 	West St. Paul for the River to River Regional 
49.24 	Greenway. This appropriation may also be 
49.25 	used to acquire property or purchase 
49.26 	rights-of-way needed for bridge construction. 
49.27 	A nonstate match is not required.

49.28 	Sec. 20. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 3, 
49.29 	is amended to read:

49.30	Subd. 3.Local Road Improvement Fund Grants
 				8,910,000
	
49.31 	(a) From the bond proceeds account in the 
49.32 	state transportation fund as provided in 
49.33 	Minnesota Statutes, section 174.50, for 
50.1 	construction and reconstruction of local roads 
50.2 	with statewide or regional significance under 
50.3 	Minnesota Statutes, section 174.52, 
50.4 	subdivision 4, or for grants to counties to assist 
50.5 	in paying the costs of rural road safety capital 
50.6 	improvement projects on county state-aid 
50.7 	highways under Minnesota Statutes, section 
50.8 	174.52, subdivision 4a.
50.9 	(b) This appropriation includes $850,000 for 
50.10 	a grant to the city of Sandstone for predesign, 
50.11 	design, engineering, and construction of a road 
50.12 	extending south off of marked Trunk Highway 
50.13 	23 across from Lundorff Drive to the airport 
50.14 	area, and including a bridge over Skunk Creek 
50.15 	in Sandstone, in order to facilitate repurposing 
50.16 	of an area of the airport into a business park. 
50.17 	This appropriation is not available until the 
50.18 	commissioner of management and budget 
50.19 	determines that sufficient resources to 
50.20 	complete the project are committed to it from 
50.21 	other sources, including any funds made 
50.22 	available from the commissioner of 
50.23 	transportation.
50.24 	(c) This appropriation includes $3,770,000 for 
50.25 	a grant to Kandiyohi County for construction 
50.26 	and reconstruction of local roads to facilitate 
50.27 	the construction of highway-rail grade 
50.28 	separations at U.S. Highway 12 and Minnesota 
50.29 	Highway 40 as part ofin conjunction with the 
50.30 	Willmar Wye project as well as to re-establish 
50.31 	the local road network on the southwest side 
50.32 	of Willmar.

51.1 	Sec. 21. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7, 
51.2 	is amended to read:

51.3	Subd. 7.Richfield - 77th Street Underpass
 				10,000,000
	
51.4 	For a grant to the city of Richfield for 
51.5 	right-of-way acquisition and construction of
51.6 	for an extension of 77th Street under marked 
51.7 	Trunk Highway 77/Cedar Avenue in the city 
51.8 	of Richfield to provide local and regional 
51.9 	access between Richfield, the Minneapolis/St. 
51.10 	Paul International Airport, the city of 
51.11 	Bloomington, and the Mall of America. After 
51.12 	right-of-way acquisition is completed, the city 
51.13 	may use any remaining money appropriated 
51.14 	in this subdivision for construction of the 
51.15 	extension. Notwithstanding Minnesota 
51.16 	Statutes, section 16A.642, the bond sale 
51.17 	authorization and appropriation of bond 
51.18 	proceeds for the project in this subdivision are 
51.19 	available until December 31, 2021.

51.20 	Sec. 22. NATIONAL SPORTS CENTER; LEASE.
 51.21 	Notwithstanding Minnesota Statutes, sections 16A.695, 16B.24, and 240A.03, subdivision 
51.22 	6, the Minnesota Amateur Sports Commission may lease for educational purposes that 
51.23 	portion of property described as a portion of the property acquired by the commission 
51.24 	pursuant to Laws 1987, chapter 400, section 8, subdivision 3, not currently needed for 
51.25 	amateur sports purposes to Independent School District No. 16, Spring Lake Park. The lease 
51.26 	shall be in a form approved by the attorney general and for a term not to exceed 99 years. 
51.27 	The lease may provide for the provision of capital improvements or other performance by 
51.28 	the tenant in lieu of all or some of the payments of rent that would otherwise be required. 
51.29 	Any lease revenues paid to the commission are appropriated to the commission.

51.30 	Sec. 23. REVISOR'S INSTRUCTION.
 51.31 	In Minnesota Statutes, the revisor of statutes shall replace references to Minnesota 
51.32 	Statutes, section 123A.446, with Minnesota Statutes, section 123A.445.

52.1 	Sec. 24.  REPEALER.
 52.2 	Minnesota Statutes 2016, section 123A.446, is repealed.

52.3 	Sec. 25. EFFECTIVE DATE.
 52.4 	Except as otherwise provided, this article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: H0892-1 

123A.446 STATE BOND AUTHORIZATION.
To provide money for the cooperative secondary facilities grant program, the commissioner of management and budget, upon the request of the commissioner of education, shall issue and sell bonds of the state up to the amount of $14,000,000 in the manner, upon the terms and with the effect prescribed by sections 16A.631 to 16A.675 and the Minnesota Constitution, article XI, sections 4 to 7.