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 	84.946, subdivision 2; 85.34, subdivision 1; 219.166; 256E.37; 363A.36; 363A.44, 
1.8 	subdivision 1; 446A.072; 446A.073; 446A.081, subdivision 9; 446A.12, subdivision 
1.9 	1; 462A.37, subdivisions 1, 2, 2a, 2b, 5, by adding a subdivision; Laws 2015, 
1.10 	chapter 75, article 1, section 3, subdivision 3; proposing coding for new law in 
1.11 	Minnesota Statutes, chapters 16A; 174; 219; repealing Minnesota Statutes 2016, 
1.12 	section 123A.446.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	APPROPRIATIONS

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

2.6						APPROPRIATIONS

2.7	Sec. 2. UNIVERSITY OF MINNESOTA

2.8	Subdivision 1.Total Appropriation
 			$
	154,334,000
	
2.9 	To the Board of Regents of the University of 
2.10 	Minnesota for the purposes specified in this 
2.11 	section.

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

2.16
2.17	Subd. 3.Chemical Sciences and Advanced 
Materials Science Building
 				28,267,000
	
2.18 	To design, construct, furnish, and equip a new 
2.19 	laboratory building on the Duluth campus, 
2.20 	including classrooms and research and 
2.21 	undergraduate instructional laboratories.

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

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

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

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

3.26
3.27	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

3.28	Subdivision 1.Total Appropriation
 			$
	201,887,000
	
3.29 	To the Board of Trustees of the Minnesota 
3.30 	State Colleges and Universities for the 
3.31 	purposes specified in this section.

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

4.3	Subd. 3.Bemidji State University
 				18,897,000
	
4.4 	To demolish Hagg-Sauer Hall and construct, 
4.5 	furnish, and equip its replacement, the 
4.6 	Academic Learning Center; to renovate and 
4.7 	renew, furnish, and equip Bensen Hall, 
4.8 	Sattgast Hall, Bangsberg Hall, and A.C. Clark 
4.9 	Library.

4.10	Subd. 4.Hibbing Community College
 				11,223,000
	
4.11 	To demolish Building G and connecting links 
4.12 	or portions thereof, and to construct, renovate, 
4.13 	furnish, and equip buildings, links, and entry 
4.14 	spaces on the campus.

4.15
4.16	Subd. 5.Minnesota State Community and 
Technical College

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

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

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

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

5.13
5.14	Subd. 8.Riverland Community College, Albert 
Lea
 				7,427,000
	
5.15 	To design, construct, furnish, and equip the 
5.16 	renovation and expansion of the Trade and 
5.17 	Industrial Education Center on the Albert Lea 
5.18 	campus of Riverland Community College.

5.19
5.20	Subd. 9.Rochester Community and Technical 
College
 				21,713,000
	
5.21 	To complete design, demolish Memorial and 
5.22 	Plaza Halls, construct, equip, and furnish an 
5.23 	academic building expansion, and renovate, 
5.24 	equip, and furnish replacement space for 
5.25 	classrooms, labs, and office spaces.

5.26	Subd. 10.South Central College, North Mankato
 				9,600,000
	
5.27 	To design, renovate, renew, furnish, and equip 
5.28 	laboratory, classroom and office spaces on the 
5.29 	North Mankato campus.

5.30	Subd. 11.St. Cloud State University
 				18,572,000
	
5.31 	To construct, renovate, furnish, and equip 
5.32 	Eastman Hall for the relocation of 
5.33 	consolidated student health services and 
5.34 	academic programs.

6.1
6.2	Subd. 12.Winona State University, Education 
Village, Phase 2
 				25,306,000
	
6.3 	To complete design, construct, renovate, 
6.4 	furnish, and equip Phase 2 of the Education 
6.5 	Village project, including the renovation of 
6.6 	Cathedral and Wabasha Halls and Wabasha 
6.7 	Rec, and remove obsolete portions of Wabasha 
6.8 	Rec and the Annex building between 
6.9 	Cathedral School and Wabasha Rec.

6.10	Subd. 13.Debt Service
 					
6.11 	(a) Except as provided in paragraph (b), the 
6.12 	Board of Trustees shall pay the debt service 
6.13 	on one-third of the principal amount of state 
6.14 	bonds sold to finance projects authorized by 
6.15 	this section. After each sale of general 
6.16 	obligation bonds, the commissioner of 
6.17 	management and budget shall notify the board 
6.18 	of the amounts assessed for each year for the 
6.19 	life of the bonds.
6.20 	(b) The board need not pay debt service on 
6.21 	bonds sold to finance HEAPR. Where a 
6.22 	nonstate match is required, the debt service is 
6.23 	due on a principal amount equal to one-third 
6.24 	of the total project cost, less the match 
6.25 	committed before the bonds are sold.
6.26 	(c) The commissioner of management and 
6.27 	budget shall reduce the board's assessment 
6.28 	each year by one-third of the net income from 
6.29 	investment of general obligation bond 
6.30 	proceeds in proportion to the amount of 
6.31 	principal and interest otherwise required to be 
6.32 	paid by the board. The board shall pay its 
6.33 	resulting net assessment to the commissioner 
6.34 	of management and budget by December 1 
6.35 	each year. If the board fails to make a payment 
7.1 	when due, the commissioner of management 
7.2 	and budget shall reduce allotments for 
7.3 	appropriations from the general fund otherwise 
7.4 	available to the board and apply the amount 
7.5 	of the reduction to cover the missed debt 
7.6 	service payment. The commissioner of 
7.7 	management and budget shall credit the 
7.8 	payments received from the board to the bond 
7.9 	debt service account in the state bond fund 
7.10 	each December 1 before money is transferred 
7.11 	from the general fund under Minnesota 
7.12 	Statutes, section 16A.641, subdivision 10.

7.13	Subd. 14.Unspent Appropriations
 					
7.14 	(a) Upon substantial completion of a project 
7.15 	authorized in this section and after written 
7.16 	notice to the commissioner of management 
7.17 	and budget, the board must use any money 
7.18 	remaining in the appropriation for that project 
7.19 	for HEAPR under Minnesota Statutes, section 
7.20 	135A.046. The Board of Trustees must report 
7.21 	by February 1 of each even-numbered year to 
7.22 	the chairs of the house of representatives and 
7.23 	senate committees with jurisdiction over 
7.24 	capital investment and higher education 
7.25 	finance, and to the chairs of the house of 
7.26 	representatives Ways and Means Committee 
7.27 	and the senate Finance Committee, on how 
7.28 	the remaining money has been allocated or 
7.29 	spent.
7.30 	(b) The unspent portion of an appropriation 
7.31 	for a project in this section that is complete is 
7.32 	available for HEAPR under this subdivision, 
7.33 	at the same campus as the project for which 
7.34 	the original appropriation was made and the 
7.35 	debt service requirement under this section is 
8.1 	reduced accordingly. Minnesota Statutes, 
8.2 	section 16A.642, applies from the date of the 
8.3 	original appropriation to the unspent amount 
8.4 	transferred.

8.5	Sec. 4. EDUCATION

8.6	Subdivision 1.Total Appropriation
 			$
	17,570,000
	
8.7 	To the commissioner of education for the 
8.8 	purposes specified in this section.

8.98.10
	Subd. 2.Red Lake Independent School District 
No. 38 - Facility Projects
 				14,070,000
	
8.11 	(a) This appropriation is from the maximum 
8.12 	effort school loan fund for a capital loan to 
8.13 	Independent School District No. 38, Red Lake, 
8.14 	as provided in Minnesota Statutes, sections 
8.15 	126C.60 to 126C.72. This appropriation is to 
8.16 	complete design and construction of a 
8.17 	connection structure between the Red Lake 
8.18 	Early Learning Childhood Center and Red 
8.19 	Lake Elementary School; renovations to 
8.20 	various classrooms, labs, and support rooms; 
8.21 	updating of mechanical systems; and 
8.22 	expansion of the cafeteria. Before any capital 
8.23 	loan contract is approved under this 
8.24 	subdivision, the district must provide 
8.25 	documentation acceptable to the commissioner 
8.26 	of education on how the capital loan will be 
8.27 	used.
8.28 	(b) The commissioner of administration may 
8.29 	provide project management services to assist 
8.30 	the Department of Education with oversight 
8.31 	of the project. No money for construction may 
8.32 	be distributed by the commissioner of 
8.33 	education to the recipient school district until 
8.34 	bids have been received on 100 percent of the 
9.1 	construction documents and satisfactory 
9.2 	documentation has been submitted to the 
9.3 	commissioner of education indicating the 
9.4 	project can be fully completed with money 
9.5 	available for the project.
9.6 	(c) Notwithstanding the timelines in Minnesota 
9.7 	Statutes, section 126C.69, subdivision 11, 
9.8 	Independent School District No. 38, Red Lake, 
9.9 	must submit the question authorizing the 
9.10 	borrowing of money for the facilities to voters 
9.11 	of the district at the first general election after 
9.12 	the effective date of this section.
9.13 	(d) Notwithstanding Minnesota Statutes, 
9.14 	section 126C.69, subdivision 6, the application 
9.15 	submitted by Independent School District No. 
9.16 	38 on September 1, 2015, shall be considered 
9.17 	a sufficient application for this loan. The local 
9.18 	portion for this capital loan is $79,185 under 
9.19 	Minnesota Statutes, section 126C.69, 
9.20 	subdivision 9. This amount shall be disbursed 
9.21 	for the approved project prior to the state loan 
9.22 	reimbursement payments to the school district.

9.23	Subd. 3.Library Construction Grants
 				2,000,000
	
9.24 	For library construction grants under 
9.25 	Minnesota Statutes, section 134.45.

9.26
9.27	Subd. 4.Olmsted County - Dyslexia Institute of 
Minnesota
 				1,500,000
	
9.28 	For a grant to Olmsted County to acquire land 
9.29 	for, and to predesign, design, construct, 
9.30 	furnish, and equip a facility in Olmsted County 
9.31 	to support the local, regional, and national 
9.32 	literacy work of the Dyslexia Institute of 
9.33 	Minnesota, subject to Minnesota Statutes, 
9.34 	section 16A.695. This appropriation is not 
9.35 	available until the commissioner of 
10.1 	management and budget determines that an 
10.2 	equal amount is committed from nonstate 
10.3 	sources.

10.4	Sec. 5. MINNESOTA STATE ACADEMIES

10.5	Subdivision 1.Total Appropriation
 			$
	2,650,000
	
10.6 	To the commissioner of administration for the 
10.7 	purposes specified in this section.

10.8	Subd. 2.Asset Preservation
 				2,000,000
	
10.9 	For capital asset preservation improvements 
10.10 	and betterments on both campuses of the 
10.11 	Minnesota State Academies, to be spent in 
10.12 	accordance with Minnesota Statutes, section 
10.13 	16B.307.

10.14	Subd. 3.Campus Track
 				600,000
	
10.15 	For the construction of a track located on the 
10.16 	Minnesota State Academy for the Blind 
10.17 	campus, subject to Minnesota Statutes, section 
10.18 	16A.695. This appropriation is not available 
10.19 	until the commissioner of management and 
10.20 	budget determines that an amount sufficient 
10.21 	to complete the project is committed from 
10.22 	nonstate sources.

10.23	Subd. 4.Security Corridor
 				50,000
	
10.24 	For predesign for a safety corridor on the 
10.25 	Minnesota State Academy for the Deaf 
10.26 	campus.

10.27
10.28	Sec. 6. PERPICH CENTER FOR ARTS 
EDUCATION
 			$
	2,300,000
	
10.29 	To the commissioner of administration for 
10.30 	capital asset preservation improvements and 
10.31 	betterments at the Perpich Center for Arts 
10.32 	Education, to be spent in accordance with 
10.33 	Minnesota Statutes, section 16B.307.

11.1	Sec. 7. NATURAL RESOURCES

11.2	Subdivision 1.Total Appropriation
 			$
	79,763,000
	
11.3 	(a) To the commissioner of natural resources 
11.4 	for the purposes specified in this section.
11.5 	(b) The appropriations in this section are 
11.6 	subject to the requirements of the natural 
11.7 	resources capital improvement program under 
11.8 	Minnesota Statutes, section 86A.12, unless 
11.9 	this section or the statutes referred to in this 
11.10 	section provide more specific standards, 
11.11 	criteria, or priorities for projects than 
11.12 	Minnesota Statutes, section 86A.12.
11.13 	(c) Design-build may be utilized for the 
11.14 	reconstruction of the Soudan Underground 
11.15 	Mine.

11.16	Subd. 2.Natural Resources Asset Preservation
 				34,000,000
	
11.17 	For the renovation of state-owned facilities 
11.18 	and recreational assets operated by the 
11.19 	commissioner of natural resources to be spent 
11.20 	in accordance with Minnesota Statutes, section 
11.21 	84.946. Notwithstanding Minnesota Statutes, 
11.22 	section 84.946: (1) the commissioner may use 
11.23 	this appropriation to replace buildings if, 
11.24 	considering the embedded energy in the 
11.25 	building, that is the most energy-efficient and 
11.26 	carbon-reducing method of renovation; and 
11.27 	(2) this appropriation may be used for projects 
11.28 	to remove life safety hazards such as building 
11.29 	code violations or structural defects.

11.30	Subd. 3.Flood Hazard Mitigation
 				6,500,000
	
11.31 	(a) For the state share of flood hazard 
11.32 	mitigation grants for publicly owned capital 
11.33 	improvements to prevent or alleviate flood 
12.1 	damage under Minnesota Statutes, section 
12.2 	103F.161.
12.3 	(b) Levee projects, to the extent practical, shall 
12.4 	meet the state standard of three feet above the 
12.5 	100-year flood elevation.
12.6 	(c) Project priorities shall be determined by 
12.7 	the commissioner as appropriate and based on 
12.8 	need.
12.9 	(d) This appropriation includes money for the 
12.10 	following municipal projects: Montevideo and 
12.11 	Halstad.
12.12 	(e) For any project listed in this subdivision 
12.13 	that the commissioner determines is not ready 
12.14 	to proceed or does not expend all the money 
12.15 	allocated to it, the commissioner may allocate 
12.16 	that project's money to a project on the 
12.17 	commissioner's priority list.
12.18 	(f) To the extent that the cost of a project 
12.19 	exceeds two percent of the median household 
12.20 	income in a municipality or township 
12.21 	multiplied by the number of households in the 
12.22 	municipality or township, this appropriation 
12.23 	is also for the local share of the project.

12.24	Subd. 4.Buildings and Facilities Development
 				2,000,000
	
12.25 	To design and construct office and storage 
12.26 	buildings, to replace buildings that are in poor 
12.27 	condition, outdated, and no longer support the 
12.28 	work of the department. This appropriation 
12.29 	includes money to predesign a consolidated 
12.30 	office in Bemidji.

12.31	Subd. 5.Dam Renovation, Repair, Removal
 				7,000,000
	
12.32 	(a) For design, engineering, and construction 
12.33 	to repair, reconstruct, or remove dams and to 
13.1 	respond to dam safety emergencies. The 
13.2 	commissioner shall determine project priorities 
13.3 	as appropriate under Minnesota Statutes, 
13.4 	sections 103G.511 and 103G.515.
13.5 	(b) This appropriation includes money for the 
13.6 	Bronson Dam in Lake Bronson State Park. If 
13.7 	the commissioner determines that the Bronson 
13.8 	project is not ready to proceed, this 
13.9 	appropriation may be used for other projects 
13.10 	on the commissioner's priority list.

13.11	Subd. 6.RIM Critical Habitat
 				2,000,000
	
13.12 	To provide the state match for the critical 
13.13 	habitat private sector matching account under 
13.14 	Minnesota Statutes, section 84.943.

13.15	Subd. 7.Fish Hatchery Development
 				1,000,000
	
13.16 	For improvements and system upgrades of a 
13.17 	capital nature to hatchery facilities owned by 
13.18 	the state and operated by the commissioner of 
13.19 	natural resources under Minnesota Statutes, 
13.20 	section 97A.045, subdivision 1, to prevent the 
13.21 	spread of invasive species and pathogens.

13.22
13.23	Subd. 8.Mille Lacs Lake Fisheries Management 
Station
 				3,500,000
	
13.24 	To design and construct a fishery management 
13.25 	station near Lake Mille Lacs to provide office, 
13.26 	hatchery, and storage space.

13.27	Subd. 9.Reforestation and Stand Improvement
 				2,000,000
	
13.28 	To provide for reforestation and stand 
13.29 	improvement on state forest lands to meet the 
13.30 	reforestation requirements of Minnesota 
13.31 	Statutes, section 89.002, subdivision 2, 
13.32 	including purchasing native seeds and native 
13.33 	seedlings, planting, seeding, site preparation, 
14.1 	and protection on state lands administered by 
14.2 	the commissioner.

14.3
14.4	Subd. 10.Native Prairie Bank Acquisition and 
Development
 				2,000,000
	
14.5 	To acquire native prairie bank easements 
14.6 	under Minnesota Statutes, section 84.96, and 
14.7 	to develop and restore prairie bank lands.

14.8	Subd. 11.Itasca State Park Renovations
 				3,000,000
	
14.9 	To provide for the renovation of buildings and 
14.10 	infrastructure and for natural resources 
14.11 	restoration in Itasca State Park. Projects 
14.12 	include safety and accessibility improvements, 
14.13 	rehabilitation of the historic Nicollet Court 
14.14 	building, and erosion protection at the 
14.15 	headwaters.

14.16
14.17
14.18	Subd. 12.Wildlife Management Areas/ Aquatic 
Management Areas Acquisition and 
Development
 				9,500,000
	
14.19 	To acquire wildlife management areas and 
14.20 	aquatic management areas and for 
14.21 	improvements to develop, protect, or improve 
14.22 	habitat under Minnesota Statutes, section 
14.23 	86A.05, subdivisions 8 and 14.

14.24	Subd. 13.State Park Campground Renovations
 				1,000,000
	
14.25 	To rehabilitate and provide enhancements to 
14.26 	campgrounds, including meeting code 
14.27 	requirements and improving safety and 
14.28 	accessibility. This appropriation is for the 
14.29 	campground at Jay Cooke State Park and 
14.30 	high-priority work at other campgrounds.

14.31
14.32	Subd. 14.Park, State Recreation Area, and Trail 
Development
 				2,000,000
	
14.33 	For acquisition and development of 
14.34 	recreational features in state parks, state 
14.35 	recreation areas, and state trails. Priority 
15.1 	projects include Heartland Trail-Tower Hill, 
15.2 	Gitchi-Gami Trail at Tofte, Paul Bunyan Trail 
15.3 	at Bemidji, and design of the Lake Vermilion 
15.4 	visitor center.

15.5
15.6	Subd. 15.Scientific and Natural Area Acquisition 
and Development
 				1,000,000
	
15.7 	To acquire land for scientific and natural areas 
15.8 	and for improvements to develop, protect, or 
15.9 	improve scientific and natural areas under 
15.10 	Minnesota Statutes, sections 84.033 and 
15.11 	86A.05, subdivision 5.

15.12
15.13	Subd. 16.Two Harbors - Small Craft Harbor 
Facility
 				763,000
	
15.14 	For a grant to the City of Two Harbors to 
15.15 	design and engineer a small craft harbor within 
15.16 	the City of Two Harbors. This appropriation 
15.17 	is not available until the commissioner of 
15.18 	management and budget confirms that an 
15.19 	amount sufficient to complete the project is 
15.20 	committed from nonstate sources.

15.21	Subd. 17.St. Paul - Shade Tree Reforestation
 				1,500,000
	
15.22 	For a grant to St. Paul for the planting of 
15.23 	publicly owned shade trees on public land to 
15.24 	provide environmental benefits; replace trees 
15.25 	lost to forest pests, disease, or storm; or to 
15.26 	establish a more diverse community forest 
15.27 	better able to withstand disease and forest 
15.28 	pests. For purposes of this appropriation, 
15.29 	"shade tree" means a woody perennial grown 
15.30 	primarily for aesthetic or environmental 
15.31 	purposes with minimal to residual timber value 
15.32 	and no intent to harvest the tree for its wood. 
15.33 	Any tree planted with funding under this 
15.34 	subdivision must be a species native to 
15.35 	Minnesota.

16.1
16.2	Subd. 18.Lake County - Prospectors ATV Trail 
System
 				1,000,000
	
16.3 	For a grant to Lake County for construction, 
16.4 	including bridges, of the Prospectors ATV 
16.5 	Trail System linking the communities of Ely, 
16.6 	Babbitt, Embarrass, and Tower; Bear Head 
16.7 	Lake and Lake Vermilion-Soudan 
16.8 	Underground Mine State Parks; the Taconite 
16.9 	State Trail; and the Lake County Regional 
16.10 	ATV Trail System. This appropriation is not 
16.11 	available until the commissioner of 
16.12 	management and budget determines that an 
16.13 	equal amount is committed from other sources.

16.14	Subd. 19.Unspent Appropriations
 					
16.15 	The unspent portion of an appropriation for a 
16.16 	project in this section that is complete, upon 
16.17 	written notice to the commissioner of 
16.18 	management and budget, is available for asset 
16.19 	preservation under Minnesota Statutes, section 
16.20 	84.946. Minnesota Statutes, section 16A.642, 
16.21 	applies from the date of the original 
16.22 	appropriation to the unspent amount 
16.23 	transferred.

16.24	Sec. 8. POLLUTION CONTROL AGENCY

16.25	Subdivision 1.Total Appropriation
 			$
	57,000,000
	
16.26 	To the Pollution Control Agency for the 
16.27 	purposes specified in this section.

16.28	Subd. 2.St. Louis River Cleanup
 				25,400,000
	
16.29 	To design and implement contaminated 
16.30 	sediment management actions identified in 
16.31 	the St. Louis River remedial action plan to 
16.32 	restore water quality in the St. Louis River 
16.33 	Area of Concern.

16.34	Subd. 3.Closed Landfill Cleanup
 				11,350,000
	
17.1 	To design and construct remedial systems and 
17.2 	acquire land at closed landfills throughout the 
17.3 	state in accordance with the closed landfill 
17.4 	program under Minnesota Statutes, sections 
17.5 	115B.39 to 115B.42. The agency must follow 
17.6 	the agency priorities, which includes a 
17.7 	construction project at the waste disposal 
17.8 	engineering (WDE) site in Anoka County.

17.9	Subd. 4.Capital Assistance Program
 				20,250,000
	
17.10 	(a) This appropriation is for the solid waste 
17.11 	capital assistance grant program under 
17.12 	Minnesota Statutes, section 115A.54, in order 
17.13 	to complete a regional integrated solid waste 
17.14 	management system.
17.15 	(b) Of this appropriation, $9,250,000 is for a 
17.16 	grant to Polk County, $8,500,000 is for a grant 
17.17 	to Clay County, and $2,500,000 is for a grant 
17.18 	to McLeod County.

17.19	Sec. 9. AGRICULTURE
 			$
	2,908,000
	
17.20 	From the general fund in fiscal year 2018 to 
17.21 	the commissioner of agriculture for equipment 
17.22 	and instruments for the agriculture laboratory. 
17.23 	This appropriation is available until June 30, 
17.24 	2022.
17.25 	$690,000 of this appropriation is for a grant 
17.26 	to the Agricultural Utilization Research 
17.27 	Institute (AURI) for construction of a 
17.28 	development kitchen, sensory lab, and safety 
17.29 	and security upgrades at AURI's Marshall 
17.30 	facility and for updated equipment and 
17.31 	renovations at the Waseca facility.

17.32	Sec. 10. RURAL FINANCE AUTHORITY
 			$
	35,000,000
	
18.1 	For the purposes set forth in the Minnesota 
18.2 	Constitution, article XI, section 5, paragraph 
18.3 	(h), to the Rural Finance Authority to purchase 
18.4 	participation interests in or to make direct 
18.5 	agricultural loans to farmers under Minnesota 
18.6 	Statutes, chapter 41B. This appropriation is 
18.7 	from the bond proceeds account in the rural 
18.8 	finance administration fund and is for the 
18.9 	beginning farmer program under Minnesota 
18.10 	Statutes, section 41B.039; the loan 
18.11 	restructuring program under Minnesota 
18.12 	Statutes, section 41B.04; the seller-sponsored 
18.13 	program under Minnesota Statutes, section 
18.14 	41B.042; the agricultural improvement loan 
18.15 	program under Minnesota Statutes, section 
18.16 	41B.043; and the livestock expansion loan 
18.17 	program under Minnesota Statutes, section 
18.18 	41B.045. All debt service on bond proceeds 
18.19 	used to finance this appropriation must be 
18.20 	repaid by the Rural Finance Authority under 
18.21 	Minnesota Statutes, section 16A.643. Loan 
18.22 	participations must be priced to provide full 
18.23 	interest and principal coverage and a reserve 
18.24 	for potential losses. Priority for loans must be 
18.25 	given first to basic beginning farmer loans, 
18.26 	second to seller-sponsored loans, and third to 
18.27 	agricultural improvement loans.

18.28
18.29	Sec. 11. BOARD OF WATER AND SOIL 
RESOURCES

18.30	Subdivision 1.Total Appropriation
 			$
	40,000,000
	
18.31 	To the Board of Water and Soil Resources for 
18.32 	the purposes specified in this section.

18.33
18.34	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				30,000,000
	
19.1 	(a) To acquire conservation easements from 
19.2 	landowners to preserve, restore, create, and 
19.3 	enhance wetlands and associated uplands of 
19.4 	prairie and grasslands, and restore and enhance 
19.5 	rivers and streams, riparian lands, and 
19.6 	associated uplands of prairie and grasslands 
19.7 	in order to protect soil and water quality, 
19.8 	support fish and wildlife habitat, reduce flood 
19.9 	damage, and provide other public benefits. 
19.10 	The provisions of Minnesota Statutes, section 
19.11 	103F.515, apply to this program.
19.12 	(b) The board shall give priority to leveraging 
19.13 	federal money by enrolling targeted new lands 
19.14 	or enrolling environmentally sensitive lands 
19.15 	that have expiring federal conservation 
19.16 	agreements.
19.17 	(c) The board is authorized to enter into new 
19.18 	agreements and amend past agreements with 
19.19 	landowners as required by Minnesota Statutes, 
19.20 	section 103F.515, subdivision 5, to allow for 
19.21 	restoration. Of this appropriation, up to five 
19.22 	percent may be used for restoration and 
19.23 	enhancement.

19.24
19.25	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				10,000,000
	
19.26 	To acquire land or permanent easements and 
19.27 	to restore, create, enhance, and preserve 
19.28 	wetlands to replace those wetlands drained or 
19.29 	filled as a result of the repair, reconstruction, 
19.30 	replacement, or rehabilitation of existing 
19.31 	public roads as required by Minnesota 
19.32 	Statutes, section 103G.222, subdivision 1, 
19.33 	paragraphs (l) and (m). The board may vary 
19.34 	the priority order of Minnesota Statutes, 
19.35 	section 103G.222, subdivision 3, paragraph 
20.1 	(a), to implement an in-lieu fee agreement 
20.2 	approved by the U.S. Army Corps of 
20.3 	Engineers under section 404 of the Clean 
20.4 	Water Act. The purchase price paid for 
20.5 	acquisition of land or perpetual easement must 
20.6 	be a fair market value as determined by the 
20.7 	board. The board may enter into agreements 
20.8 	with the federal government, other state 
20.9 	agencies, political subdivisions, nonprofit 
20.10 	organizations, fee title owners, or other 
20.11 	qualified private entities to acquire wetland 
20.12 	replacement credits in accordance with 
20.13 	Minnesota Rules, chapter 8420.

20.14
20.15	Sec. 12. MINNESOTA ZOOLOGICAL 
GARDEN

20.16	Subdivision 1.Total Appropriation
 			$
	24,680,000
	
20.17 	To the Minnesota Zoological Garden Board 
20.18 	for the purposes specified in this section.

20.19	Subd. 2.Asset Preservation
 				4,000,000
	
20.20 	For capital asset preservation improvements 
20.21 	and betterments to infrastructure and exhibits 
20.22 	at the Minnesota Zoo, to be spent in 
20.23 	accordance with Minnesota Statutes, section 
20.24 	16B.307.

20.25	Subd. 3.Heart of the Zoo II
 				20,680,000
	
20.26 	To complete the Heart of the Zoo II project, 
20.27 	including renovation of the snow monkey 
20.28 	exhibit and surrounding public spaces and 
20.29 	construction of a meerkat exhibit.

20.30	Sec. 13. ADMINISTRATION

20.31	Subdivision 1.Total Appropriation
 			$
	38,228,000
	
20.32 	To the commissioner of administration for the 
20.33 	purposes specified in this section.

21.1
21.2	Subd. 2.Capitol Complex - Physical Security 
Upgrades
 				18,500,000
	
21.3 	For the design, construction, and equipping 
21.4 	required to upgrade the physical security 
21.5 	elements and systems for the buildings listed 
21.6 	below, their attached tunnel systems, and their 
21.7 	surrounding grounds, and parking facilities as 
21.8 	identified in the 2014 Minnesota State Capitol 
21.9 	Complex Physical Security Study conducted 
21.10 	by Miller Dunwiddie Architecture. Work 
21.11 	includes but is not limited to the installation 
21.12 	of bollards, blast protection, infrastructure 
21.13 	security screen walls, door access controls, 
21.14 	emergency call stations, security kiosks, 
21.15 	locking devices, and traffic control. This 
21.16 	appropriation includes money for work 
21.17 	associated with the following buildings: 
21.18 	Administration, Centennial, Judicial, 
21.19 	Ag/Health Lab, Minnesota History Center, 
21.20 	Minnesota History Center Loading Dock, 
21.21 	Capitol Complex Power Plant and Shops, 
21.22 	Stassen, State Office, and Veterans Service.

21.23	Subd. 3.Centennial Parking Ramp
 				10,878,000
	
21.24 	For structural repairs throughout the 
21.25 	Centennial parking ramp, including damaged 
21.26 	post-tension cables and the vapor barrier under 
21.27 	the top deck green space, and installation of 
21.28 	a deck surface protection coating and a storm 
21.29 	water retention basin.

21.30	Subd. 4.Visitor and Staff Parking Facilities
 				3,500,000
	
21.31 	To acquire property, prepare design documents 
21.32 	and demolish existing structures, complete 
21.33 	hazardous materials abatement and cleanup, 
21.34 	and design, construct, and equip additional 
22.1 	visitor and staff surface parking in the Capitol 
22.2 	Area.

22.3
22.4	Subd. 5.Capitol Complex Monuments and 
Memorials
 				350,000
	
22.5 	To design and complete critical repairs to the 
22.6 	Peace Officers and Roy Wilkins memorials 
22.7 	located on the Capitol complex.

22.8
22.9	Subd. 6.Capital Asset Preservation and 
Replacement Account
 				5,000,000
	
22.10 	To be spent in accordance with Minnesota 
22.11 	Statutes, section 16A.632.

22.12	Sec. 14. MN.IT
 			$
	$1,432,000
	
22.13 	To the commissioner of administration to 
22.14 	predesign, design, construct, renovate, furnish, 
22.15 	and equip existing state data center facilities 
22.16 	at the Bureau of Criminal Apprehension's 
22.17 	Maryland Avenue office building, at the 
22.18 	Centennial Office Building, and at the 
22.19 	Department of Revenue's Stassen Office 
22.20 	Building for the purpose of decommissioning 
22.21 	and repurposing into usable office space.

22.22
22.23	Sec. 15. MINNESOTA AMATEUR SPORTS 
COMMISSION

22.24	Subdivision 1.Total Appropriation
 			$
	5,582,000
	
22.25 	To the Minnesota Amateur Sports 
22.26 	Commission for the purposes specified in this 
22.27 	section.

22.28	Subd. 2.National Sports Center Expansion
 				5,082,000
	
22.29 	To prepare a site for, including demolition, 
22.30 	and to construct maintenance facilities, 
22.31 	parking lots, roads, athletic fields, and other 
22.32 	infrastructure necessary to complete the 
23.1 	tournament field expansion at the National 
23.2 	Sports Center in Blaine.

23.3	Subd. 3.Asset Preservation
 				500,000
	
23.4 	For asset preservation improvements and 
23.5 	betterments of a capital nature at the National 
23.6 	Sports Center in Blaine, to be spent in 
23.7 	accordance with Minnesota Statutes, section 
23.8 	16B.307.

23.9	Sec. 16. MILITARY AFFAIRS

23.10	Subdivision 1.Total Appropriation
 			$
	10,500,000
	
23.11 	To the adjutant general for the purposes 
23.12 	specified in this section.

23.13	Subd. 2.Asset Preservation
 				2,500,000
	
23.14 	For asset preservation improvements and 
23.15 	betterments of a capital nature at military 
23.16 	affairs facilities statewide, to be spent in 
23.17 	accordance with Minnesota Statutes, section 
23.18 	16B.307.

23.19	Subd. 3.St. Cloud Armory
 				4,500,000
	
23.20 	To complete design, renovation, expansion, 
23.21 	furnishing, and equipping of the St. Cloud 
23.22 	Readiness Center. The renovation includes 
23.23 	but is not limited to: installing HVAC systems, 
23.24 	improving life/safety systems, increasing 
23.25 	energy efficiency, and upgrading the facility 
23.26 	to serve a dual gender force.

23.27	Subd. 4.Brainerd Armory
 				3,500,000
	
23.28 	To complete design, renovation, expansion, 
23.29 	furnishing, and equipping of the Brainerd 
23.30 	Readiness Center. The renovation includes 
23.31 	but is not limited to: installing HVAC systems, 
23.32 	improving life/safety systems, increasing 
24.1 	energy efficiency, and upgrading the facility 
24.2 	to serve a dual gender force.

24.3	Subd. 5.Unspent Appropriations
 					
24.4 	The unspent portion of an appropriation for a 
24.5 	project in this section that is complete, upon 
24.6 	written notice to the commissioner of 
24.7 	management and budget, is available for 
24.8 	statewide asset preservation under Minnesota 
24.9 	Statutes, section 16B.307. Minnesota Statutes, 
24.10 	section 16A.642, applies from the date of the 
24.11 	original appropriation to the unspent amount 
24.12 	transferred.

24.13	Sec. 17. PUBLIC SAFETY

24.14	Subdivision 1.Total Appropriation
 			$
	39,323,000
	
24.15 	To the commissioner of public safety for the 
24.16 	purposes specified in this section.

24.17	Subd. 2.State Emergency Operations Center
 				33,302,000
	
24.18 	For the design, site development, construction, 
24.19 	and equipping of a new state emergency 
24.20 	operations center (SEOC) for the Department 
24.21 	of Public Safety at Arden Hills. The facility 
24.22 	will serve as the location for coordinating state 
24.23 	support to local governments during 
24.24 	emergencies and disasters. It will also be a 
24.25 	critical continuity of government (COG) 
24.26 	facility for state government leaders during 
24.27 	an incident at the Capitol complex.

24.28	Subd. 3.Camp Ripley Training Facility
 				3,521,000
	
24.29 	To design and construct a joint emergency 
24.30 	railroad and pipeline emergency response 
24.31 	training facility at Camp Ripley, including the 
24.32 	construction of stations and capital 
25.1 	infrastructure needed for mock disaster 
25.2 	training.

25.3
25.4	Subd. 4.Minneapolis Emergency Operations 
Training Facility (EOTF) Enhancement
 				2,500,000
	
25.5 	For a grant to the city of Minneapolis for the 
25.6 	predesign, design, engineering, and 
25.7 	construction of the expansion of the 
25.8 	Emergency Operation Center and Fire 
25.9 	Training Facility. This appropriation is not 
25.10 	available until the commissioner of 
25.11 	management and budget determines that an 
25.12 	equal amount is committed to the project from 
25.13 	nonstate sources.

25.14	Sec. 18. TRANSPORTATION

25.15	Subdivision 1.Total Appropriation
 			$
	343,476,000
	
25.16 	To the commissioner of transportation for the 
25.17 	purposes specified in this section.

25.18
25.19	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				70,000,000
	
25.20 	From the bond proceeds account in the state 
25.21 	transportation fund to match federal money 
25.22 	and to replace or rehabilitate local deficient 
25.23 	bridges as provided in Minnesota Statutes, 
25.24 	section 174.50.

25.25	Subd. 3.Local Road Improvement Fund Grants
 				115,500,000
	
25.26 	(a) From the bond proceeds account in the 
25.27 	state transportation fund as provided in 
25.28 	Minnesota Statutes, section 174.50, for grants 
25.29 	under Minnesota Statutes, section 174.52, 
25.30 	subdivision 2, for construction and 
25.31 	reconstruction of local roads with statewide 
25.32 	or regional significance under Minnesota 
25.33 	Statutes, section 174.52, subdivision 4, or for 
25.34 	grants to counties to assist in paying the costs 
26.1 	of rural road safety capital improvement 
26.2 	projects on county state-aid highways under 
26.3 	Minnesota Statutes, section 174.52, 
26.4 	subdivision 4a.
26.5 	(b) Of this amount, $25,000,000 is for a grant 
26.6 	to Hennepin County for design, right-of-way 
26.7 	acquisition, engineering, and construction of 
26.8 	public improvements related to the Interstate 
26.9 	Highway 35W and Lake Street access project 
26.10 	and related improvements within the Interstate 
26.11 	Highway 35W corridor. This appropriation is 
26.12 	not available until the commissioner of 
26.13 	management and budget determines that an 
26.14 	amount sufficient to complete the Interstate 
26.15 	Highway 35W and Lake Street access project 
26.16 	has been committed to the project.
26.17 	(c) Of this amount, $20,500,000 is for a grant 
26.18 	to Ramsey County for preliminary and final 
26.19 	design, environmental documentation, and 
26.20 	construction of the interchange of marked 
26.21 	Interstate Highway 694 and Rice Street in 
26.22 	Ramsey County.

26.23
26.24	Subd. 4.Rail Grade Separation on Crude Oil 
Rail Corridors
 				69,624,000
	
26.25 	(a) To design and construct rail safety projects 
26.26 	at highway railroad grade crossings in 
26.27 	accordance with Minnesota Statutes, section 
26.28 	219.016. Of this appropriation:
26.29 	(1) $42,262,000 is for a grant to the city of 
26.30 	Moorhead for environmental analysis, design, 
26.31 	engineering, removal of an existing structure, 
26.32 	and construction of a rail grade crossing 
26.33 	separation in the vicinity of 21st Street South;
26.34 	(2) $14,762,000 is for a grant to the city of 
26.35 	Red Wing for environmental analysis, design, 
27.1 	engineering, removal of an existing structure, 
27.2 	and construction of a rail grade crossing 
27.3 	separation at Sturgeon Lake Road; and
27.4 	(3) $12,600,000 is for a grant to Anoka County 
27.5 	for environmental analysis, design, 
27.6 	engineering, removal of an existing structure, 
27.7 	and construction of a rail grade crossing 
27.8 	separation at Anoka County State-Aid 
27.9 	Highway 78, known as Hanson Boulevard, in 
27.10 	Coon Rapids.
27.11 	(b) Any unspent portion of this appropriation 
27.12 	after completion of any project in this 
27.13 	subdivision may be used for additional grants 
27.14 	in accordance with Minnesota Statutes, section 
27.15 	219.016.

27.16	Subd. 5.Railroad Warning Devices
 				5,000,000
	
27.17 	To design, construct, and equip replacement 
27.18 	of active highway-rail grade warning devices 
27.19 	that have reached the end of their useful life.

27.20	Subd. 6.Facilities Capital Program
 				40,000,000
	
27.21 	From the bond proceeds account in the trunk 
27.22 	highway fund for the transportation facilities 
27.23 	capital program under Minnesota Statutes, 
27.24 	section 174.13, which supports the agency's 
27.25 	building infrastructure needs.

27.26	Subd. 7.Passenger Rail Program
 				1,000,000
	
27.27 	To implement capital improvements and 
27.28 	betterments for intercity passenger rail projects 
27.29 	as identified in the statewide freight and 
27.30 	passenger rail plan under Minnesota Statutes, 
27.31 	section 174.03, subdivision 1b, that are 
27.32 	determined to be eligible for United States 
27.33 	Department of Transportation funding. 
27.34 	Notwithstanding any law to the contrary, a 
28.1 	portion or phase of an intercity passenger rail 
28.2 	project may be accomplished with one or more 
28.3 	state appropriations and an intercity passenger 
28.4 	rail project need not be completed with any 
28.5 	one appropriation. Capital improvements and 
28.6 	betterments include preliminary engineering, 
28.7 	project administration, design, engineering, 
28.8 	environmental analysis, and mitigation, 
28.9 	acquisition of land and right-of-way, and 
28.10 	construction.

28.11	Subd. 8.Rail Quiet Zones
 				10,000,000
	
28.12 	For grants under Minnesota Statutes, section 
28.13 	219.166. Up to ten percent of this 
28.14 	appropriation may be used for eligible 
28.15 	activities necessary to support the 
28.16 	implementation and delivery of the program.

28.17	Subd. 9.Port Development Assistance
 				10,000,000
	
28.18 	For grants under Minnesota Statutes, chapter 
28.19 	457A. Any improvements made with the 
28.20 	proceeds of these grants must be publicly 
28.21 	owned.

28.22	Subd. 10.Stone Arch Bridge
 				2,500,000
	
28.23 	From the general fund in fiscal year 2018 for 
28.24 	plan development, repairs and rehabilitation, 
28.25 	and construction oversight of the Stone Arch 
28.26 	Bridge in Minneapolis.

28.27	Subd. 11.Duluth Airport Authority
 				6,619,000
	
28.28 	From the state airports fund in fiscal year 2018 
28.29 	for a grant to the Duluth Airport Authority to 
28.30 	provide the federal match to design and 
28.31 	construct runway infrastructure at the Duluth 
28.32 	International Airport in accordance with 
28.33 	Minnesota Statutes, section 360.017. For the 
28.34 	purposes of this appropriation, the 
29.1 	commissioner may waive the requirements of 
29.2 	Minnesota Statutes, section 360.305, 
29.3 	subdivision 4, paragraph (b). This 
29.4 	appropriation is available until and must be 
29.5 	encumbered by June 30, 2019.

29.6	Subd. 12.Rochester International Airport
 				2,333,000
	
29.7 	From the state airports fund in fiscal year 2018 
29.8 	for a grant to the city of Rochester to design, 
29.9 	construct, renovate, and improve the Rochester 
29.10 	International Airport, in accordance with 
29.11 	Minnesota Statutes, section 360.017. For the 
29.12 	purposes of this appropriation, the 
29.13 	commissioner may waive the requirements of 
29.14 	Minnesota Statutes, section 360.305, 
29.15 	subdivision 4, paragraph (b). This 
29.16 	appropriation is available until and must be 
29.17 	encumbered by June 30, 2019.

29.18	Subd. 13.St. Cloud Regional Airport Study
 				250,000
	
29.19 	Notwithstanding Minnesota Statutes, section 
29.20 	360.017, from the state airports fund in fiscal 
29.21 	year 2018 for a grant to the city of St. Cloud 
29.22 	for an air transport optimization planning 
29.23 	study for the St. Cloud Regional Airport. The 
29.24 	study must be comprehensive and 
29.25 	market-based, using economic development 
29.26 	and air service expertise to research, analyze, 
29.27 	and develop models and strategies that 
29.28 	maximize the return on investments made to 
29.29 	enhance the use and impact of the St. Cloud 
29.30 	Regional Airport. By January 5, 2018, the city 
29.31 	of St. Cloud shall submit a report to the 
29.32 	governor and the chairs and ranking minority 
29.33 	members of the legislative committees with 
29.34 	jurisdiction over capital investment, 
29.35 	transportation, and economic development 
30.1 	with recommendations based on the findings 
30.2 	of the study.

30.3
30.4	Subd. 14.International Falls-Koochiching 
County Airport Commission
 				3,000,000
	
30.5 	For a grant to the International 
30.6 	Falls-Koochiching County Airport 
30.7 	Commission to demolish the remainder of the 
30.8 	existing terminal building, for site preparation, 
30.9 	and to design, construct, furnish, and equip 
30.10 	Phase II of a new terminal building. This 
30.11 	appropriation is not available until at least 
30.12 	$1,500,000 is committed to the project from 
30.13 	nonstate sources.

30.14	Subd. 15.Ramsey County Rail Grade Separation
 				1,000,000
	
30.15 	For a grant to the Ramsey County Regional 
30.16 	Railroad Authority for environmental analysis 
30.17 	and design of rail grade separation of Union 
30.18 	Pacific and Burlington Northern Santa Fe track 
30.19 	between Westminster Junction and Division 
30.20 	Street/Hoffman Interlocking in St. Paul. This 
30.21 	appropriation is not available until the 
30.22 	commissioner determines that an equal amount 
30.23 	has been committed to the project from 
30.24 	nonstate sources.

30.25	Subd. 16.Grand Rapids Pedestrian Bridge
 				750,000
	
30.26 	For a grant to the city of Grand Rapids to 
30.27 	design the construction of a bridge over the 
30.28 	Mississippi River for pedestrian and bicycle 
30.29 	use to provide a safe alternative route to the 
30.30 	existing marked Trunk Highway 169 vehicle 
30.31 	bridge, and to serve as a connection to existing 
30.32 	trail systems on each side of the river. This 
30.33 	appropriation is not available until the 
30.34 	commissioner determines that an equal amount 
31.1 	has been committed to the project from 
31.2 	nonstate sources.

31.3	Subd. 17.Minnesota Rail Service Improvement
 				1,000,000
	
31.4 	This is a onetime appropriation from the rail 
31.5 	service improvement account in the special 
31.6 	revenue fund to the commissioner of 
31.7 	transportation for a grant to the city of Grand 
31.8 	Rapids to fund rail planning studies, design, 
31.9 	and preliminary engineering relating to the 
31.10 	construction of a freight rail line located in the 
31.11 	counties of Itasca, St. Louis, and Lake to serve 
31.12 	local producers and shippers. The city of 
31.13 	Grand Rapids shall collaborate with the Itasca 
31.14 	Economic Development Corporation and the 
31.15 	Itasca County Regional Railroad Authority in 
31.16 	the activities funded with the proceeds of this 
31.17 	grant. This appropriation is available until June 
31.18 	30, 2022.

31.19
31.20	Subd. 18.Virginia - Highway 53 Utility 
Relocation
 				4,900,000
	
31.21 	From the general fund for grants to the city of 
31.22 	Virginia and the city of Virginia Public 
31.23 	Utilities Commission to acquire land for and 
31.24 	to predesign, design, construct, furnish, and 
31.25 	equip relocated public utilities, including 
31.26 	sanitary and storm water sewers and water, 
31.27 	electrical, and gas utilities, and to demolish 
31.28 	and remove old utility infrastructure, all 
31.29 	associated with the relocation of marked Trunk 
31.30 	Highway 53. This appropriation does not 
31.31 	require a nonstate contribution.

31.32	Sec. 19. METROPOLITAN COUNCIL

31.33	Subdivision 1.Total Appropriation
 			$
	39,455,000
	
32.1 	To the Metropolitan Council for the purposes 
32.2 	specified in this section.

32.3
32.4	Subd. 2.Metropolitan Regional Parks and Trails 
Capital Improvements
 				10,000,000
	
32.5 	For the cost of improvements and betterments 
32.6 	of a capital nature and acquisition by the 
32.7 	council and local government units of regional 
32.8 	recreational open-space lands in accordance 
32.9 	with the council's policy plan as provided in 
32.10 	Minnesota Statutes, section 473.147. This 
32.11 	appropriation must not be used to purchase 
32.12 	easements.

32.13
32.14	Subd. 3.Metropolitan Cities Inflow and 
Infiltration Grants
 				5,000,000
	
32.15 	For grants to cities within the metropolitan 
32.16 	area, as defined in Minnesota Statutes, section 
32.17 	473.121, subdivision 2, for capital 
32.18 	improvements in municipal wastewater 
32.19 	collection systems to reduce the amount of 
32.20 	inflow and infiltration to the Metropolitan 
32.21 	Council's metropolitan sanitary sewer disposal 
32.22 	system. Grants from this appropriation are for 
32.23 	up to 50 percent of the cost to mitigate inflow 
32.24 	and infiltration in the publicly owned 
32.25 	municipal wastewater collection systems. To 
32.26 	be eligible for a grant, a city must be identified 
32.27 	by the council as a contributor of excessive 
32.28 	inflow and infiltration in the metropolitan 
32.29 	disposal system or have a measured flow rate 
32.30 	within 20 percent of its allowable 
32.31 	council-determined inflow and infiltration 
32.32 	limits. The council must award grants based 
32.33 	on applications from cities that identify 
32.34 	eligible capital costs and include a timeline 
32.35 	for inflow and infiltration mitigation 
33.1 	construction, pursuant to guidelines 
33.2 	established by the council.

33.3	Subd. 4.St. Paul - Como Zoo Project
 				15,455,000
	
33.4 	For a grant to the city of St. Paul for predesign, 
33.5 	design, and engineering of Phase I of the 
33.6 	renovation of seal and sea lion habitat at the 
33.7 	Como Zoo. The renovated habitat will support 
33.8 	the zoo education programs. This 
33.9 	appropriation is not available until the 
33.10 	commissioner of management and budget 
33.11 	determines that at least $1,100,000 is 
33.12 	committed to the project from nonstate 
33.13 	sources.

33.14
33.15	Subd. 5.St. Paul - Environmental Learning 
Center
 				3,000,000
	
33.16 	For a grant to the city of St. Paul to design an 
33.17 	Environmental Learning Center project and 
33.18 	adjacent site development in Crosby Farms 
33.19 	Regional Park. The project will integrate 
33.20 	environmental education, river access, and 
33.21 	river and nature-based recreation, along with 
33.22 	increasing safe access to and awareness by the 
33.23 	public of the Mississippi River. The 
33.24 	Environmental Learning Center is an 
33.25 	opportunity to build on the history and 
33.26 	interconnectedness to the river, create an 
33.27 	authentic, signature destination that positions 
33.28 	the state nationally and internationally, 
33.29 	improve the quality of life for residents and 
33.30 	visitors, and cultivate a constituency that 
33.31 	values the river and will care for it into the 
33.32 	future.

33.33	Subd. 6.St. Paul - Wakan Tipi Center
 				3,000,000
	
33.34 	For a grant to the city of St. Paul to predesign, 
33.35 	design, furnish, and equip Wakan Tipi Center 
34.1 	in the Bruce Vento Nature Sanctuary in St. 
34.2 	Paul that will be used for programs that the 
34.3 	city determines meet regional and city park 
34.4 	purpose requirements. The city may enter into 
34.5 	a lease or management agreement under 
34.6 	Minnesota Statutes, section 16A.695, to 
34.7 	operate the programs in the center. This 
34.8 	appropriation is not available until the 
34.9 	commissioner of management and budget 
34.10 	determines that at least an equal amount is 
34.11 	committed to the project from nonstate 
34.12 	sources.

34.13	Subd. 7.Washington County - Gateway Corridor
 				3,000,000
	
34.14 	For a grant to Washington County to complete 
34.15 	engineering and environmental analysis related 
34.16 	to the Gateway Corridor transitway. This 
34.17 	appropriation is not available until the 
34.18 	commissioner of management and budget 
34.19 	determines that an amount sufficient to 
34.20 	complete the project has been committed to 
34.21 	the project from nonstate sources.

34.22	Sec. 20. HEALTH
 			$
	2,335,000
	
34.23 	From the general fund in fiscal year 2018 to 
34.24 	the commissioner of health for equipment and 
34.25 	instruments for the public health laboratory. 
34.26 	This appropriation is available until June 30, 
34.27 	2022.

34.28	Sec. 21. HUMAN SERVICES

34.29	Subdivision 1.Total Appropriation
 			$
	141,960,000
	
34.30 	To the commissioner of administration, or 
34.31 	another named agency, for the purposes 
34.32 	specified in this section.

34.33	Subd. 2.Minnesota Security Hospital - St. Peter
 				70,255,000
	
35.1 	To complete design, remodel, construct, 
35.2 	furnish, and equip the second phase of the 
35.3 	two-phase project to remodel existing and to 
35.4 	develop new residential, program, activity, 
35.5 	and ancillary facilities for the Minnesota 
35.6 	Security Hospital on the upper campus of the 
35.7 	St. Peter Regional Treatment Center. This 
35.8 	appropriation includes money to: demolish, 
35.9 	renovate, and remodel existing space; 
35.10 	construct new space; address fire and life 
35.11 	safety, and other building code deficiencies; 
35.12 	replace or renovate interior finishes; purchase 
35.13 	furnishings, fixtures, and equipment; replace 
35.14 	or renovate the Minnesota Security Hospital 
35.15 	building's HVAC, plumbing, electrical, 
35.16 	security, and life safety systems; tuck-point; 
35.17 	replace windows and doors; design and abate 
35.18 	asbestos and hazardous materials; and 
35.19 	complete site work necessary to support the 
35.20 	programmed use of the facilities on the St. 
35.21 	Peter Regional Treatment Center upper 
35.22 	campus.

35.23
35.24	Subd. 3.Anoka Metro Regional Treatment 
Center - Safety and Security Renovations
 				2,250,000
	
35.25 	To provide security upgrades of a capital 
35.26 	nature at the Anoka Metro Regional Treatment 
35.27 	Center campus, including but not limited to 
35.28 	control centers, electronic monitoring and 
35.29 	perimeter security equipment, new or updated 
35.30 	security fencing, and other building security 
35.31 	renovations. This appropriation includes 
35.32 	money for: predesign, design, furnishing, 
35.33 	fixtures, and equipment; construction of safety 
35.34 	and security improvements to courtyards on 
35.35 	residential treatment units; securely enclosing 
35.36 	the nursing station on Unit G; and installing 
36.1 	a campus-wide closed-circuit television video 
36.2 	security system, a facility-wide personal 
36.3 	duress alarm system, a key control system, 
36.4 	and an electronic access control system.

36.5
36.6	Subd. 4.Minnesota Sex Offender Program – St. 
Peter
 				14,500,000
	
36.7 	To complete design, construct, renovate, 
36.8 	furnish, and equip the second phase of a 
36.9 	multiphase project to develop additional 
36.10 	residential, program, activity, and ancillary 
36.11 	facilities for the Minnesota Sex Offender 
36.12 	Program on the lower campus of the St. Peter 
36.13 	Regional Treatment Center. This appropriation 
36.14 	includes money to complete design, renovate, 
36.15 	construct, furnish, and equip the north wing 
36.16 	of Green Acres; the west, south, and north 
36.17 	wings of Sunrise; and the Tomlinson building. 
36.18 	This appropriation also includes money to: 
36.19 	replace or renovate HVAC, plumbing, 
36.20 	electrical, security, and life safety systems; 
36.21 	address fire and life safety, and other building 
36.22 	code deficiencies; replace windows and doors; 
36.23 	tuck-point exterior building envelopes; 
36.24 	reconfigure and remodel space; design and 
36.25 	abate asbestos and other hazardous materials; 
36.26 	remove or demolish nonfunctioning building 
36.27 	components; and complete site work necessary 
36.28 	to support the programmed use of facilities.

36.29
36.30	Subd. 5.Minnesota Sex Offender Program – 
Less Restrictive Alternatives
 				12,420,000
	
36.31 	To acquire land for, and to predesign, design, 
36.32 	construct, furnish, and equip two new 
36.33 	community-based residential treatment 
36.34 	facilities, including any necessary site work, 
36.35 	for the Minnesota Sex Offender Program as 
37.1 	less restrictive alternatives to the program's 
37.2 	existing secure facilities.

37.3
37.4	Subd. 6.St. Paul - Dorothy Day Opportunity 
Center
 				12,000,000
	
37.5 	To the commissioner of human services for a 
37.6 	grant to the city of St. Paul to predesign, 
37.7 	design, construct, furnish, and equip an 
37.8 	opportunity center to serve as an integrated 
37.9 	one-stop delivery system connecting persons 
37.10 	at risk of becoming homeless, and persons 
37.11 	working to move up and out of homelessness, 
37.12 	and to provide services that improve their 
37.13 	health, income, housing stability, or 
37.14 	well-being, subject to Minnesota Statutes, 
37.15 	section 16A.695. This appropriation may be 
37.16 	used to acquire property for these purposes. 
37.17 	This appropriation is not available until the 
37.18 	commissioner of management and budget has 
37.19 	determined that at least an equal amount has 
37.20 	been committed to the project from nonstate 
37.21 	sources.

37.22
37.23	Subd. 7.Early Childhood Learning Child 
Facilities
 				15,000,000
	
37.24 	To the commissioner of human services for 
37.25 	grants under Minnesota Statutes, section 
37.26 	256E.37, to construct and rehabilitate early 
37.27 	childhood learning facilities.

37.28	Subd. 8.Perspectives Family Center
 				2,000,000
	
37.29 	From the general fund to the commissioner of 
37.30 	human services in fiscal year 2018 for a grant 
37.31 	to Perspectives, Inc., to predesign, design, 
37.32 	construct, furnish, and equip the expansion 
37.33 	and renovation of the existing Perspectives 
37.34 	Family Center facility in St. Louis Park. The 
37.35 	expanded and renovated facility must be used 
38.1 	to promote the public welfare by providing 
38.2 	any or all of the following programs and 
38.3 	services: (1) supportive housing programs for 
38.4 	homeless women and their children; (2) mental 
38.5 	and chemical health programs; (3) 
38.6 	employment services; (4) academic, social 
38.7 	skills, and nutritional programs for homeless 
38.8 	and at-risk children; (5) an all-day therapeutic 
38.9 	early childhood development program for 
38.10 	homeless and at-risk children; and (6) a 
38.11 	culturally sensitive safe and nurturing 
38.12 	environment for at-risk children to meet with 
38.13 	their nonresidential parents. This appropriation 
38.14 	is not available until the commissioner of 
38.15 	management and budget has determined that 
38.16 	at least an equal amount has been expended 
38.17 	or committed to the project from nonstate 
38.18 	sources. Nonstate money spent on the project 
38.19 	since May 1, 2015, shall be included in the 
38.20 	determination of nonstate commitments to the 
38.21 	project.

38.22
38.23	Subd. 9.Child and Adolescent Behavioral Health 
Services
 				7,530,000
	
38.24 	To predesign, design, construct, furnish, and 
38.25 	equip a new community-based 16-bed 
38.26 	psychiatric hospital facility to house the Child 
38.27 	and Adolescent Behavioral Health Services 
38.28 	(CABHS) program to be located in or near the 
38.29 	city of Willmar. This appropriation includes 
38.30 	funds for land purchase, surveying, predesign 
38.31 	and design fees, construction administration, 
38.32 	project management, site work, site and 
38.33 	building infrastructure, construction, and 
38.34 	furniture, fixtures, and equipment.
38.35 	Notwithstanding any law to the contrary, the 
38.36 	16 hospital beds licensed to the CABHS's 
39.1 	facility on January 1, 2017, by the Department 
39.2 	of Health, may transfer to this new facility 
39.3 	upon completion, and approved inspection by 
39.4 	the Departments of Health and Human 
39.5 	Services.

39.6	Subd. 10.Minneapolis - People's Center
 				2,750,000
	
39.7 	From the general fund to the commissioner of 
39.8 	human services for a grant to the People's 
39.9 	Center in Minneapolis to design, renovate, 
39.10 	improve, construct, and equip a facility that 
39.11 	provides medical, dental, mental health, and 
39.12 	wellness services to all patients, regardless of 
39.13 	their ability to pay. This appropriation is not 
39.14 	available until the commissioner of 
39.15 	management and budget confirms that at least 
39.16 	$1,500,000 is committed to the project from 
39.17 	nonstate sources.

39.18	Subd. 11.Minneapolis - American Indian Center
 				155,000
	
39.19 	From the general fund in fiscal year 2018 for 
39.20 	a grant to the Minneapolis American Indian 
39.21 	Center to predesign the renovation of the 
39.22 	center on Franklin Avenue, taking into account 
39.23 	and protecting the significant and unique art 
39.24 	and features of the center.

39.25	Subd. 12.Minneapolis - The Family Partnership
 				1,600,000
	
39.26 	From the general fund in fiscal year 2018 to 
39.27 	the commissioner of human services for a 
39.28 	grant to the Family Partnership in Minneapolis 
39.29 	to predesign and design a facility to provide 
39.30 	mental health, early childhood education, and 
39.31 	other services to support children and families. 
39.32 	This appropriation is not available until at least 
39.33 	an equal amount of money is committed from 
39.34 	nonstate resources. This appropriation is 
39.35 	available until the project is completed or 
40.1 	abandoned, subject to Minnesota Statutes, 
40.2 	section 16A.642.

40.3
40.4	Subd. 13.Hermantown - Arrowhead Regional 
Health and Wellness Center
 				8,000,000
	
40.5 	For a grant to the city of Hermantown to 
40.6 	prepare the middle school site on the 
40.7 	Hermantown School District campus, 
40.8 	including demolition of a portion of the middle 
40.9 	school, and to design, construct a new addition 
40.10 	to the middle school building, and renovate 
40.11 	the remaining existing building, furnish, and 
40.12 	equip the facility as the Arrowhead Regional 
40.13 	Health and Wellness Center. The city may 
40.14 	enter into lease or management agreements 
40.15 	under Minnesota Statutes, section 16A.695, 
40.16 	for operation of the center. This appropriation 
40.17 	is not available until at least an equal amount 
40.18 	is committed to the project from nonstate 
40.19 	sources.

40.20	Subd. 14.Asset Preservation
 				1,500,000
	
40.21 	For asset preservation improvements and 
40.22 	betterments of a capital nature at Department 
40.23 	of Human Services facilities statewide, to be 
40.24 	spent in accordance with Minnesota Statutes, 
40.25 	section 16B.307.

40.26	Sec. 22. VETERANS AFFAIRS

40.27	Subdivision 1.Total Appropriation
 			$
	12,851,000
	
40.28 	To the commissioner of administration for the 
40.29 	purposes specified in this section.

40.30	Subd. 2.Asset Preservation
 				5,000,000
	
40.31 	For asset preservation improvements and 
40.32 	betterments of a capital nature at the veterans 
40.33 	homes in Minneapolis, Hastings, Fergus Falls, 
40.34 	Silver Bay, and Luverne, to be spent in 
41.1 	accordance with Minnesota Statutes, section 
41.2 	16B.307.

41.3
41.4	Subd. 3.Minneapolis Veterans Home Truss 
Bridge Project
 				7,851,000
	
41.5 	To design, construct, renovate, and equip the 
41.6 	historic truss bridge on the Minneapolis 
41.7 	Veterans Home campus, including asbestos 
41.8 	and hazardous materials abatement and 
41.9 	associated site work.

41.10	Sec. 23. CORRECTIONS

41.11	Subdivision 1.Total Appropriation
 			$
	56,653,000
	
41.12 	To the commissioner of administration for the 
41.13 	purposes specified in this section.

41.14	Subd. 2.Asset Preservation
 				20,000,000
	
41.15 	For asset preservation improvements and 
41.16 	betterments of a capital nature at Minnesota 
41.17 	correctional facilities statewide, to be spent in 
41.18 	accordance with Minnesota Statutes, section 
41.19 	16B.307.

41.20
41.21	Subd. 3.Minnesota Correctional Facility - St. 
Cloud
 				23,400,000
	
41.22 	(a) For capital improvements at the Minnesota 
41.23 	Correctional Facility - St. Cloud, as provided 
41.24 	in the following paragraphs.
41.25 	(b) $19,000,000 of this appropriation is to 
41.26 	construct and equip a new intake unit and a 
41.27 	loading dock with a secure connection to a 
41.28 	new central warehouse at the facility.
41.29 	(c) $4,400,000 of this appropriation is to 
41.30 	remove and replace deteriorated mortar with 
41.31 	new mortar on the granite perimeter wall 
41.32 	surrounding the facility.

41.33
41.34	Subd. 4.Minnesota Correctional Facility - 
Willow River
 				1,500,000
	
42.1 	To design, construct, renovate, furnish, and 
42.2 	equip new and existing buildings to increase 
42.3 	living unit and programming capacity for the 
42.4 	challenge incarceration program by at least 45 
42.5 	beds at the Minnesota Correctional Facility – 
42.6 	Willow River.

42.7	Subd. 5.Minnesota Correctional Facility - Togo
 				2,000,000
	
42.8 	To design, construct, renovate, furnish, and 
42.9 	equip existing buildings, including 
42.10 	improvements to the wastewater and septic 
42.11 	systems, and to increase the program capacity 
42.12 	for the challenge incarceration program by at 
42.13 	least 30 beds at the Minnesota Correctional 
42.14 	Facility – Togo.

42.15
42.16	Subd. 6.Minnesota Correctional Facility - Lino 
Lakes
 				5,000,000
	
42.17 	To design, renovate, and equip an existing 
42.18 	vacant building into an offender living unit 
42.19 	that will add at least 60 beds to the capacity 
42.20 	at the Minnesota Correctional Facility – Lino 
42.21 	Lakes. The renovation includes removal of 
42.22 	hazardous materials, upgrades to comply with 
42.23 	current building codes, and construction of 
42.24 	functional living and program space.

42.25
42.26	Subd. 7.Minnesota Correctional Facility - Moose 
Lake
 				1,900,000
	
42.27 	To expand and renovate the outdated master 
42.28 	control center to improve security and 
42.29 	efficiency at the Minnesota Correctional 
42.30 	Facility – Moose Lake. The renovation 
42.31 	includes updating fire alarm panels and 
42.32 	mechanical and electrical systems and 
42.33 	improving visibility of the visiting area.

42.34	Subd. 8.Northeast Regional Corrections Center
 				2,853,000
	
43.1 	For a grant to the Arrowhead Regional 
43.2 	Corrections Joint Powers Board to demolish 
43.3 	an existing facility and update, renovate, and 
43.4 	expand buildings used for vocational and 
43.5 	educational programming at the Northeast 
43.6 	Regional Corrections Center. This project will 
43.7 	expand the processing facility, add a 
43.8 	packaging facility, and improve farm 
43.9 	operations and vocational buildings, including 
43.10 	the replacement or repair of roofs and air 
43.11 	handling systems. Nonstate contributions to 
43.12 	improvements at the center made before or 
43.13 	after the enactment of this subdivision are 
43.14 	considered to be a sufficient match, and no 
43.15 	further nonstate match is required.

43.16	Subd. 9.Unspent Appropriations
 					
43.17 	The unspent portion of an appropriation for a 
43.18 	Department of Corrections project in this 
43.19 	section that is complete, upon written notice 
43.20 	to the commissioner of management and 
43.21 	budget, is available for asset preservation 
43.22 	under Minnesota Statutes, section 16B.307. 
43.23 	Minnesota Statutes, section 16A.642, applies 
43.24 	from the date of the original appropriation to 
43.25 	the unspent amount transferred.

43.26
43.27	Sec. 24. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

43.28	Subdivision 1.Total Appropriation
 			$
	117,945,000
	
43.29 	To the commissioner of employment and 
43.30 	economic development for the purposes 
43.31 	specified in this section.

43.32	Subd. 2.Asset Preservation
 				1,342,000
	
43.33 	For asset preservation improvements and 
43.34 	betterments of a capital nature at the South 
44.1 	Minneapolis WorkForce Center, to be spent 
44.2 	in accordance with Minnesota Statutes, section 
44.3 	16B.307.

44.4	Subd. 3.Transportation Economic Development
 				10,000,000
	
44.5 	For grants under Minnesota Statutes, section 
44.6 	116J.436.

44.7
44.8	Subd. 4.Innovative Business Development Public 
Infrastructure Grants
 				5,000,000
	
44.9 	For grants under Minnesota Statutes, section 
44.10 	116J.435.

44.11
44.12	Subd. 5.Greater Minnesota Business 
Development Public Infrastructure Grants
 				21,000,000
	
44.13 	For grants under Minnesota Statutes, section 
44.14 	116J.431.

44.15
44.16	Subd. 6.Anoka County - Regional Warehouse, 
Distribution, and Office Facility
 				18,000,000
	
44.17 	For a grant to Anoka County to predesign, 
44.18 	design, purchase land for, construct, furnish, 
44.19 	and equip a regional charitable food 
44.20 	warehouse, distribution, and office facility in 
44.21 	the city of Fridley. The county may enter into 
44.22 	lease or management agreements under 
44.23 	Minnesota Statutes, section 16A.695, for 
44.24 	operation of the facility. This appropriation is 
44.25 	not available until the commissioner 
44.26 	determines that an equal amount has been 
44.27 	committed to the project from nonstate 
44.28 	sources. Amounts expended for this project 
44.29 	by nonstate sources since June 1, 2016, shall 
44.30 	count toward the nonstate match.

44.31	Subd. 7.Bemidji - Regional Dental Facility
 				4,500,000
	
44.32 	For a grant to the city of Bemidji to acquire 
44.33 	land for and to predesign, design, construct, 
44.34 	renovate, furnish, and equip a regional dental 
44.35 	facility in Bemidji, subject to Minnesota 
45.1 	Statutes, section 16A.695. This appropriation 
45.2 	is not available until the commissioner of 
45.3 	management and budget has determined that 
45.4 	at least $3,000,000 has been committed to the 
45.5 	project from nonstate sources. The value of 
45.6 	the land purchased or acquired by the city after 
45.7 	January 1, 2016, for this facility shall count 
45.8 	toward the nonstate match.

45.9	Subd. 8.Eagle's Healing Nest
 				300,000
	
45.10 	From the general fund for a grant to Eagle's 
45.11 	Healing Nest in Sauk Centre.

45.12
45.13	Subd. 9.Hennepin County - Regional Medical 
Examiner's Facility
 				25,932,000
	
45.14 	For a grant to Hennepin County to design, 
45.15 	construct, furnish, and equip a 67,000 square 
45.16 	foot regional, state-of-the-art medical 
45.17 	examiner's facility. The facility shall: (1) 
45.18 	provide forensic death investigation and 
45.19 	autopsy services for Dakota, Hennepin, and 
45.20 	Scott Counties with the flexibility to 
45.21 	accommodate future partner counties and 
45.22 	agencies; (2) serve as a teaching facility for 
45.23 	the state, on the science of forensic pathology; 
45.24 	and (3) be located in southern Hennepin 
45.25 	County at a site that best supports access needs 
45.26 	for the three founding counties and reasonable 
45.27 	scene response times for the geographic 
45.28 	service area. This appropriation is not 
45.29 	available until the commissioner of 
45.30 	management and budget determines that an 
45.31 	amount sufficient to complete the project has 
45.32 	been committed from nonstate sources.

45.33
45.34	Subd. 10.Litchfield - Phase 2 Power Generation 
Improvements
 				3,000,000
	
46.1 	For a grant to the city of Litchfield to design 
46.2 	and construct electrical generation 
46.3 	improvements in the city of Litchfield to 
46.4 	expand the current standby capacity, including 
46.5 	replacement of two old generators. This 
46.6 	appropriation is not available until the 
46.7 	commissioner of management and budget 
46.8 	determines that at least an equal amount is 
46.9 	committed to the project from nonstate 
46.10 	sources.

46.11	Subd. 11.Madelia - Public Infrastructure
 				98,000
	
46.12 	For a grant to the city of Madelia for 
46.13 	improvements of a capital nature to repair and 
46.14 	replace public infrastructure damaged by a 
46.15 	fire in Madelia in February 2016. This 
46.16 	appropriation does not require a nonstate 
46.17 	contribution.

46.18	Subd. 12.Melrose - Public Infrastructure
 				3,850,000
	
46.19 	(a) For a grant to the city of Melrose. Of this 
46.20 	appropriation:
46.21 	(b) $2,950,000 is for the construction of an 
46.22 	electric substation and loop. This portion of 
46.23 	the appropriation is not available until the 
46.24 	commissioner determines that an amount 
46.25 	sufficient to complete the project has been 
46.26 	committed from nonstate sources; and
46.27 	(c) $900,000 is for improvements of a capital 
46.28 	nature to repair and replace public 
46.29 	infrastructure damaged by a fire in Melrose 
46.30 	in September 2016. This portion of the 
46.31 	appropriation does not require a nonstate 
46.32 	contribution.

46.33
46.34	Subd. 13.Polk County - North Country Food 
Bank
 				3,000,000
	
47.1 	For a grant to Polk County to predesign, 
47.2 	design, construct, renovate, furnish, and equip 
47.3 	a regional charitable food warehouse, 
47.4 	distribution, and office facility in the city of 
47.5 	Crookston, subject to Minnesota Statutes, 
47.6 	section 16A.695. This appropriation is not 
47.7 	available until the commissioner of 
47.8 	management and budget determines that an 
47.9 	equal amount has been committed to the 
47.10 	project from nonstate sources. The value of 
47.11 	the land purchased or acquired by the county 
47.12 	after January 1, 2013, for this facility shall 
47.13 	count toward the nonstate match.

47.14	Subd. 14.Red Wing - River Town Renaissance
 				4,480,000
	
47.15 	For a grant to the city of Red Wing to 
47.16 	complete removal and replacement of 250 
47.17 	linear feet of the harbor retaining wall; to 
47.18 	design, construct, furnish, and equip the 
47.19 	renovation of the historic T.B. Sheldon 
47.20 	Performing Arts Theater; and to design and 
47.21 	construct transient riverboat docking facilities, 
47.22 	levee wall extension, and levee promenade 
47.23 	improvements at Levee Park. This 
47.24 	appropriation is not available until the 
47.25 	commissioner of management and budget 
47.26 	determines that an amount sufficient to 
47.27 	complete the project has been committed from 
47.28 	nonstate sources.

47.29	Subd. 15.St. James - Public Infrastructure
 				3,443,000
	
47.30 	For a grant to the city of St. James. Of this 
47.31 	amount, $2,193,000 is for engineering, 
47.32 	right-of-way acquisition, and reconstruction 
47.33 	of streets, sidewalks, storm water and sanitary 
47.34 	sewer, water mains, lighting, utilities, and 
47.35 	other capital improvements of publicly owned 
48.1 	infrastructure required for the reconstruction 
48.2 	of marked Trunk Highway 4 in the city of St. 
48.3 	James, and $1,250,000 is to replace the storm 
48.4 	sewer drain that serves St. James Lake and the 
48.5 	entire southern section of the city of St. James.

48.6	Subd. 16.St. Paul - RiverCentre Parking Ramp
 				1,000,000
	
48.7 	For a grant to the city of St. Paul for predesign 
48.8 	and design for a new RiverCentre parking 
48.9 	ramp to replace the existing RiverCentre 
48.10 	parking ramp. This appropriation is not 
48.11 	available until the commissioner of 
48.12 	management and budget determines that an 
48.13 	equal amount has been committed to the 
48.14 	project from nonstate sources. Predesign and 
48.15 	design costs paid by the RiverCentre since 
48.16 	January 1, 2017, count toward the match 
48.17 	requirement.

48.18
48.19	Subd. 17.St. Paul - Science Museum of 
Minnesota Building Preservation
 				13,000,000
	
48.20 	For a grant to the city of St. Paul for predesign, 
48.21 	design, and construction work to replace 
48.22 	water-damaged elements of the Science 
48.23 	Museum of Minnesota's exterior envelope and 
48.24 	some resultant interior damage caused by 
48.25 	latent design and construction defects, subject 
48.26 	to Minnesota Statutes, section 16A.695. This 
48.27 	appropriation is not available until the 
48.28 	commissioner of management and budget 
48.29 	determines that an equal amount has been 
48.30 	committed to the project from nonstate 
48.31 	sources. Capital costs paid by the Science 
48.32 	Museum of Minnesota since January 1, 2014, 
48.33 	relating to the water intrusion damage, shall 
48.34 	count towards the match requirement.

48.35	Sec. 25. PUBLIC FACILITIES AUTHORITY

49.1	Subdivision 1.Total Appropriation
 			$
	167,866,000
	
49.2 	To the Public Facilities Authority for the 
49.3 	purposes specified in this section. The Public 
49.4 	Facilities Authority may use the funds in this 
49.5 	section or other available funds to amend 
49.6 	project financing agreements awarded after 
49.7 	July 1, 2016, based on program changes in 
49.8 	article 2, sections 9 and 10.

49.9	Subd. 2.State Match for Federal Grants
 				25,000,000
	
49.10 	To match federal grants for the clean water 
49.11 	revolving fund under Minnesota Statutes, 
49.12 	section 446A.07, and the drinking water 
49.13 	revolving fund under Minnesota Statutes, 
49.14 	section 446A.081. This appropriation must be 
49.15 	used for qualified capital projects.

49.16	Subd. 3.Water Infrastructure Funding Program
 				80,000,000
	
49.17 	(a) For grants to eligible municipalities under 
49.18 	the water infrastructure funding program under 
49.19 	Minnesota Statutes, section 446A.072.
49.20 	(b) $55,000,000 is for wastewater projects 
49.21 	listed on the Pollution Control Agency's 
49.22 	project priority list in the fundable range under 
49.23 	the clean water revolving fund program.
49.24 	(c) $25,000,000 is for drinking water projects 
49.25 	listed on the Department of Health's project 
49.26 	priority list in the fundable range under the 
49.27 	drinking water revolving fund program.
49.28 	(d) After all eligible projects under paragraph 
49.29 	(b) or (c) have been funded, the Public 
49.30 	Facilities Authority may transfer any 
49.31 	remaining, uncommitted money to eligible 
49.32 	projects under a program defined in paragraph 
49.33 	(b) or (c) based on that program's project 
49.34 	priority list.

50.1
50.2	Subd. 4.Point Source Implementation Grants 
Program
 				62,000,000
	
50.3 	For grants to eligible municipalities under the 
50.4 	point source implementation grants program 
50.5 	under Minnesota Statutes, section 446A.073. 
50.6 	This appropriation must be used for qualified 
50.7 	capital projects.

50.8
50.9	Subd. 5.Dennison - Sewage Treatment System 
Improvements
 				726,000
	
50.10 	For a grant to the city of Dennison to 
50.11 	predesign, design, and construct a new lift 
50.12 	station and make sewage pond improvements. 
50.13 	This appropriation does not require a nonstate 
50.14 	contribution.

50.15
50.16	Subd. 6.Lilydale - Highway 13 Storm Water 
Conveyance
 				140,000
	
50.17 	From the general fund in fiscal year 2018 for 
50.18 	a grant to the city of Lilydale to design, 
50.19 	acquire, construct, and install a storm water 
50.20 	sewer and drop structure along Trunk 
50.21 	Highway 13 in Lilydale that will be large 
50.22 	enough to effectively collect water from 
50.23 	springs and storm water runoff from above 
50.24 	the road and safely convey the water to below 
50.25 	the bluff. The city must coordinate this project 
50.26 	with the Department of Transportation's Trunk 
50.27 	Highway 13 project. The appropriation and 
50.28 	project also include capital repairs and 
50.29 	improvements to existing drainage structures 
50.30 	along the Big Rivers Regional Trail at the base 
50.31 	of the bluff. This appropriation does not 
50.32 	require a nonstate contribution.

50.33
50.34	Sec. 26. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	20,000,000
	
51.1 	For transfer to the housing development fund 
51.2 	to finance the costs of rehabilitation to 
51.3 	preserve public housing under Minnesota 
51.4 	Statutes, section 462A.202, subdivision 3a. 
51.5 	For purposes of this section, "public housing" 
51.6 	means housing for low-income persons and 
51.7 	households financed by the federal 
51.8 	government and owned and operated by the 
51.9 	public housing authorities and agencies formed 
51.10 	by cities and counties. Public housing 
51.11 	authorities receiving a public housing 
51.12 	assessment composite score of 80 or above or 
51.13 	an equivalent designation are eligible to 
51.14 	receive funding. Priority must be given to 
51.15 	proposals that maximize federal or local 
51.16 	resources to finance the capital costs. The 
51.17 	priority in Minnesota Statutes, section 
51.18 	462A.202, subdivision 3a, for projects to 
51.19 	increase the supply of affordable housing and 
51.20 	the restrictions of Minnesota Statutes, section 
51.21 	462A.202, subdivision 7, do not apply to this 
51.22 	appropriation.

51.23
51.24	Sec. 27. MINNESOTA HISTORICAL 
SOCIETY

51.25	Subdivision 1.Total Appropriation
 			$
	36,500,000
	
51.26 	To the Minnesota Historical Society for the 
51.27 	purposes specified in this section.

51.28	Subd. 2.Historic Fort Snelling
 				34,000,000
	
51.29 	(a) To design, renovate, construct, furnish, and 
51.30 	equip facilities to support visitor services and 
51.31 	history programs at Historic Fort Snelling.
51.32 	(b) This appropriation includes up to 
51.33 	$4,000,000 to design facilities to support 
51.34 	visitor services and history programs at 
52.1 	Historic Fort Snelling. Money for design is 
52.2 	available the day following final enactment 
52.3 	and is not contingent on demonstrating a 
52.4 	nonstate contribution to the project. Upon 
52.5 	completion of the design, the unspent portion 
52.6 	of the amount specified in this paragraph is 
52.7 	available for the purposes of paragraph (c).
52.8 	(c) The balance of this appropriation is to 
52.9 	demolish the existing visitor center, renovate, 
52.10 	construct, furnish, and equip facilities, 
52.11 	including landscaping and wayfinding, at 
52.12 	Historic Fort Snelling. This appropriation is 
52.13 	not available until the commissioner of 
52.14 	management and budget determines that an 
52.15 	amount sufficient to complete the project has 
52.16 	been committed from nonstate sources.

52.17	Subd. 3.Historic Sites Asset Preservation
 				2,500,000
	
52.18 	For capital improvements and betterments at 
52.19 	state historic sites, buildings, landscaping at 
52.20 	historic buildings, exhibits, markers, and 
52.21 	monuments, to be spent in accordance with 
52.22 	Minnesota Statutes, section 16B.307. The 
52.23 	society shall determine project priorities as 
52.24 	appropriate based on need.

52.25	Sec. 28. BOND SALE EXPENSES

52.26	Subdivision 1.Total Appropriation
 			$
	1,562,000
	
52.27 	To the commissioner of management and 
52.28 	budget for the purposes specified in this 
52.29 	section.

52.30	Subd. 2.Bond Proceeds Fund
 				1,522,000
	
52.31 	From the bond proceeds fund for bond sale 
52.32 	expenses under Minnesota Statutes, section 
52.33 	16A.641, subdivision 8.

53.1	Subd. 3.Trunk Highway Fund
 				40,000
	
53.2 	From the bond proceeds account in the trunk 
53.3 	highway fund for bond sale expenses under 
53.4 	Minnesota Statutes, sections 16A.641, 
53.5 	subdivision 8, and 167.50, subdivision 4.

53.6 	Sec. 29. BOND SALE AUTHORIZATION.
 53.7 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
53.8 	the bond proceeds fund, the commissioner of management and budget shall sell and issue 
53.9 	bonds of the state in an amount up to $1,394,859,000 in the manner, upon the terms, and 
53.10 	with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
53.11 	Minnesota Constitution, article XI, sections 4 to 7.
53.12 		Subd. 2.Transportation fund. To provide the money appropriated in this act from the 
53.13 	state transportation fund, the commissioner of management and budget shall sell and issue 
53.14 	bonds of the state in an amount up to $185,500,000 in the manner, upon the terms, and with 
53.15 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
53.16 	Minnesota Constitution, article XI, sections 4 to 7.
53.17 		Subd. 3.Trunk highway fund. To provide the money appropriated in this act from the 
53.18 	bond proceeds account in the trunk highway fund, the commissioner of management and 
53.19 	budget shall sell and issue bonds of the state in an amount up to $40,040,000 in the manner, 
53.20 	upon the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 
53.21 	167.52, and by the Minnesota Constitution, article XIV, section 11, at the times and in the 
53.22 	amounts requested by the commissioner of transportation. The proceeds of the bonds, except 
53.23 	accrued interest and any premium received from the sale of the bonds, must be deposited 
53.24 	in the bond proceeds account in the trunk highway fund.
53.25 		Subd. 4.Maximum effort school loan fund. To provide the money appropriated in this 
53.26 	act from the maximum effort school loan fund, the commissioner of management and budget 
53.27 	shall sell and issue bonds of the state in an amount up to $14,070,000 in the manner, upon 
53.28 	the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, 
53.29 	and by the Minnesota Constitution, article XI, sections 4 to 7.

53.30 	Sec. 30. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 53.31 	(a) The bond sale authorization in Laws 1990, chapter 610, article 1, section 30, 
53.32 	subdivision 1, as amended, is reduced by $3,129.
54.1 	(b) The bond sale authorization in Laws 1994, chapter 643, section 31, subdivision 1, 
54.2 	as amended, is reduced by $24,480.
54.3 	(c) The bond sale authorization in Laws 1997, Second Special Session chapter 2, section 
54.4 	12, as amended, is reduced by $96,992.
54.5 	(d) The bond sale authorization in Laws 1999, chapter 240, article 1, section 13, 
54.6 	subdivision 1, as amended, is reduced by $212,472.
54.7 	(e) The bond sale authorization in Laws 2000, chapter 492, article 1, section 26, 
54.8 	subdivision 1, as amended, is reduced by $7,933,538.
54.9 	(f) The bond sale authorization in Laws 2002, chapter 393, section 30, subdivision 1, as 
54.10 	amended, is reduced by $188,471.
54.11 	(g) The bond sale authorization in Laws 2002, First Special Session chapter 1, section 
54.12 	9, subdivision 1, s reduced by $217,959.
54.13 	(h) The bond sale authorization in Laws 2003, First Special Session chapter 19, article 
54.14 	3, section 2, is reduced by $201,530.
54.15 	(i) The bond sale authorization in Laws 2003, First Special Session chapter 19, article 
54.16 	4, section 4, is reduced by $326,534.
54.17 	(j) The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, subdivision 
54.18 	1, as amended, is reduced by $3,366,628.
54.19 	(k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First Special 
54.20 	Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is canceled 
54.21 	and the bond sale authorization in Laws 2011, First Special Session chapter 12, section 23, 
54.22 	subdivision 1, is reduced by the same amount.
54.23 	(l) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012, First 
54.24 	Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner of public 
54.25 	safety for disaster relief, is canceled and the bond sale authorization in Laws 2012, First 
54.26 	Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
54.27 	(m) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
54.28 	Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster 
54.29 	relief, is canceled and the bond sale authorization in Laws 2012, First Special Session chapter 
54.30 	1, article 1, section 16, subdivision 1, is reduced by the same amount.
54.31 	(n) $1,085,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
54.32 	Special Session chapter 1, article 1, section 9, subdivision 2, to the commissioner of natural 
55.1 	resources for disaster relief, is canceled, and the bond sale authorization in Laws 2012, First 
55.2 	Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
55.3 	(o) The $300,000 appropriation from the general fund in Laws 2015, First Special Session 
55.4 	chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.

55.5 	Sec. 31. BOND SALE SCHEDULE.
 55.6 	The commissioner of management and budget shall schedule the sale of state general 
55.7 	obligation bonds so that, during the biennium ending June 30, 2018, no more than 
55.8 	$1,188,820,000 will need to be transferred from the general fund to the state bond fund to 
55.9 	pay principal and interest due and to become due on outstanding state general obligation 
55.10 	bonds. During the biennium, before each sale of state general obligation bonds, the 
55.11 	commissioner of management and budget shall calculate the amount of debt service payments 
55.12 	needed on bonds previously issued and shall estimate the amount of debt service payments 
55.13 	that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the 
55.14 	amount of bonds scheduled to be sold so as to remain within the limit set by this section. 
55.15 	The amount needed to make the debt service payments is appropriated from the general 
55.16 	fund as provided in Minnesota Statutes, section 16A.641.

55.17 	Sec. 32. EFFECTIVE DATE.
 55.18 	Except as otherwise provided, this article is effective the day following final enactment.

55.19 	ARTICLE 2
55.20 	MISCELLANEOUS

55.21 	Section 1. Minnesota Statutes 2016, section 16A.967, is amended to read:
55.22 	16A.967 LEWIS AND CLARK APPROPRIATION BONDS.
55.23 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
55.24 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of 
55.25 	the state payable during a biennium from one or more of the following sources:
55.26 	(1) money appropriated by law from the general fund in any biennium for debt service 
55.27 	due with respect to obligations described in subdivision 2, paragraph (c) subdivisions 2a 
55.28 	and 2b;
55.29 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c) 
55.30 	subdivisions 2a and 2b;
56.1 	(3) payments received for that purpose under agreements and ancillary arrangements 
56.2 	described in subdivision 2, paragraph (e) (d); and
56.3 	(4) investment earnings on amounts in clauses (1) to (3).
56.4 	(c) "Debt service" means the amount payable in any biennium of principal, premium, if 
56.5 	any, and interest on appropriation bonds.
56.6 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
56.7 	this subdivision, the commissioner may sell and issue appropriation bonds of the state under 
56.8 	this section for public purposes as provided by law, including, in particular, the financing 
56.9 	of the land acquisition, design, engineering, and construction of facilities and infrastructure 
56.10 	necessary to complete the next phase of the Lewis and Clark Regional Water System project, 
56.11 	including completion of the pipeline to Magnolia, extension of the project to the 
56.12 	Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design, 
56.13 	and easement acquisition for the final phase of the project to Worthington. No bonds shall 
56.14 	be sold until the commissioner determines that a nonstate match of at least $9,000,000 is 
56.15 	committed to this project phase. Grant agreements entered into under this section must 
56.16 	provide for reimbursement to the state from any federal money provided for the project, 
56.17 	consistent with the Lewis and Clark Regional Water System, Inc., agreement.
56.18 	(b) The appropriation bonds may be issued and sold only after the commissioner 
56.19 	determines that the construction and administration for work done on the project will comply 
56.20 	with (1) all federal requirements and regulations associated with the Lewis and Clark Rural 
56.21 	Water System Act of 2000, and (2) the cooperative agreement between the United States 
56.22 	Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds 
56.23 	of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond 
56.24 	proceeds fund in the state treasury. All income from investment of the bond proceeds, as 
56.25 	estimated by the commissioner, is appropriated to the commissioner for the payment of 
56.26 	principal and interest on the appropriation bonds.
56.27 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
56.28 	commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of 
56.29 	costs of issuance, for the purposes as provided under paragraph (a), and pay debt service 
56.30 	including capitalized interest, costs of issuance, costs of credit enhancement, or make 
56.31 	payments under other agreements entered into under paragraph (e).
56.32 	(d) (c) Appropriation bonds may be issued in one or more issues or series on the terms 
56.33 	and conditions the commissioner determines to be in the best interests of the state, but the 
56.34 	term on any series of appropriation bonds may not exceed 25 years. The appropriation bonds 
57.1 	of each issue and series thereof shall be dated and bear interest, and may be includable in 
57.2 	or excludable from the gross income of the owners for federal income tax purposes.
57.3 	(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
57.4 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 
57.5 	enter into agreements and ancillary arrangements relating to the appropriation bonds, 
57.6 	including but not limited to trust indentures, grant agreements, lease or use agreements, 
57.7 	operating agreements, management agreements, liquidity facilities, remarketing or dealer 
57.8 	agreements, letter of credit agreements, insurance policies, guaranty agreements, 
57.9 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
57.10 	payments made or received according to the agreement or ancillary arrangement shall be 
57.11 	made from or deposited as provided in the agreement or ancillary arrangement. The 
57.12 	determination of the commissioner included in an interest exchange agreement that the 
57.13 	agreement relates to an appropriation bond shall be conclusive.
57.14 	(f) (e) The commissioner may enter into written agreements or contracts relating to the 
57.15 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
57.16 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
57.17 	including Securities and Exchange Commission rules and regulations in Code of Federal 
57.18 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
57.19 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
57.20 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
57.21 	the order or resolution.
57.22 	(g) (f) The appropriation bonds are not subject to chapter 16C.
57.23 		Subd. 2a.Project authorization. Appropriation bonds may be sold and issued in amounts 
57.24 	that, in the opinion of the commissioner, are necessary to provide sufficient money to the 
57.25 	Public Facilities Authority under subdivision 7, paragraph (a), not to exceed $19,000,000 
57.26 	net of costs of issuance, for the purposes as provided under this subdivision, and pay debt 
57.27 	service including capitalized interest, costs of issuance, costs of credit enhancement, or 
57.28 	make payments under other agreements entered into under subdivision 2, paragraph (d). 
57.29 	The bonds authorized by this subdivision are for the purposes of financing the land 
57.30 	acquisition, design, engineering, and construction of facilities and infrastructure necessary 
57.31 	to complete Phase 2 of the Lewis and Clark Regional Water System project, including 
57.32 	completion of the pipeline to Magnolia; extension of the project to the Lincoln-Pipestone 
57.33 	Rural Water System connection near Adrian; and engineering, design, and easement 
57.34 	acquisition for the final phase of the project to Worthington. No bonds shall be sold under 
57.35 	this subdivision until the commissioner determines that a nonstate match of at least 
58.1 	$9,000,000 is committed to this project phase. Upon certification by the Lewis and Clark 
58.2 	Joint Powers Board that the bond sale authorization provided by this subdivision has fully 
58.3 	met the needs of Phase 2 of the project, and to the extent there is additional authorization 
58.4 	remaining, this authorization is also available for the purposes of and on the same conditions 
58.5 	as subdivision 2b.
58.6 		Subd. 2b.Additional project authorization. Appropriation bonds may be sold and 
58.7 	issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient 
58.8 	money to the Public Facilities Authority under subdivision 7, paragraph (b), not to exceed 
58.9 	$11,500,000 net of costs of issuance, for the purposes as provided under this subdivision, 
58.10 	and pay debt service including capitalized interest, costs of issuance, costs of credit 
58.11 	enhancement, or make payments under other agreements entered into under subdivision 2, 
58.12 	paragraph (d). The bonds authorized by this subdivision are for the purposes of financing 
58.13 	the land acquisition, design, engineering, and construction of facilities and infrastructure 
58.14 	necessary to complete Phase 3 of the Lewis and Clark Regional Water System project, 
58.15 	including extension of the project from the Lincoln-Pipestone Rural Water System connection 
58.16 	near Adrian to Worthington, construction of a reservoir in Nobles County and a meter 
58.17 	building in Worthington, and acquisition and installation of a supervisory control and data 
58.18 	acquisition (SCADA) system. No bonds shall be sold under this subdivision until the 
58.19 	commissioner determines that a nonstate match of at least $9,000,000 is committed to the 
58.20 	final phase of the project.
58.21 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, 
58.22 	notes, or other similar instruments, and in the manner provided in section 16A.672. In the 
58.23 	event that any provision of section 16A.672 conflicts with this section, this section shall 
58.24 	control.
58.25 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
58.26 	established in subdivision 6.
58.27 	(c) Appropriation bonds may be sold at either public or private sale upon such terms as 
58.28 	the commissioner shall determine are not inconsistent with this section and may be sold at 
58.29 	any price or percentage of par value. Any bid received may be rejected.
58.30 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
58.31 	(e) Notwithstanding any other law, appropriation bonds issued under this section shall 
58.32 	be fully negotiable.
58.33 		Subd. 4.Refunding bonds. The commissioner may issue appropriation bonds for the 
58.34 	purpose of refunding any appropriation bonds then outstanding, including the payment of 
59.1 	any redemption premiums on the bonds, any interest accrued or to accrue to the redemption 
59.2 	date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any 
59.3 	refunding bonds may, in the discretion of the commissioner, be applied to the purchase or 
59.4 	payment at maturity of the appropriation bonds to be refunded, to the redemption of the 
59.5 	outstanding appropriation bonds on any redemption date, or to pay interest on the refunding 
59.6 	bonds and may, pending application, be placed in escrow to be applied to the purchase, 
59.7 	payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be 
59.8 	invested and reinvested in obligations that are authorized investments under section 11A.24. 
59.9 	The income earned or realized on the investment may also be applied to the payment of the 
59.10 	appropriation bonds to be refunded or interest or premiums on the refunded appropriation 
59.11 	bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been 
59.12 	fully satisfied, any balance of the proceeds and any investment income may be returned to 
59.13 	the general fund or, if applicable, the special appropriation Lewis and Clark bond proceeds 
59.14 	fund for use in any lawful manner. All refunding bonds issued under this subdivision must 
59.15 	be prepared, executed, delivered, and secured by appropriations in the same manner as the 
59.16 	appropriation bonds to be refunded.
59.17 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities may 
59.18 	legally invest any sinking funds, money, or other funds belonging to them or under their 
59.19 	control in any appropriation bonds issued under this section:
59.20 	(1) the state, the investment board, public officers, municipal corporations, political 
59.21 	subdivisions, and public bodies;
59.22 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
59.23 	savings banks and institutions, investment companies, insurance companies, insurance 
59.24 	associations, and other persons carrying on a banking or insurance business; and
59.25 	(3) personal representatives, guardians, trustees, and other fiduciaries.
59.26 		Subd. 6.No full faith and credit; state not required to make appropriations. The 
59.27 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
59.28 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
59.29 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
59.30 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
59.31 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
59.32 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
59.33 	for any fiscal year, provided that nothing in this section shall be construed to require the 
59.34 	state to appropriate money sufficient to make debt service payments with respect to the 
60.1 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no 
60.2 	longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
60.3 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
60.4 	of final payment of the principal of and interest on the appropriation bonds.
60.5 		Subd. 7.Appropriation of proceeds. (a) The proceeds of appropriation bonds issued 
60.6 	under subdivision 2a and interest credited to the special appropriation Lewis and Clark bond 
60.7 	proceeds fund are appropriated as follows:
60.8 	(1) to the commissioner Public Facilities Authority for a grant to the Lewis and Clark 
60.9 	Joint Powers Board for payment of capital expenses for the purposes provided by as specified 
60.10 	in subdivision 2, paragraph (a), 2a; and
60.11 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
60.12 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 
60.13 	payments under any agreements entered into under subdivision 2, paragraph (e) (d), each 
60.14 	as permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise 
60.15 	provided for the public purposes provided by subdivision 2, paragraph (a).
60.16 	(b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited 
60.17 	to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:
60.18 	(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 
60.19 	Board for payment of capital expenses as specified in subdivision 2b; and
60.20 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
60.21 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 
60.22 	payments under any agreements entered into under subdivision 2, paragraph (d), each as 
60.23 	permitted by state and federal law.
60.24 		Subd. 8.Appropriation for debt service and other purposes. (a) An amount, up to 
60.25 	$1,351,000 needed to pay principal and interest on appropriation bonds issued under this 
60.26 	section subdivision 2a is appropriated each fiscal year from the general fund to the 
60.27 	commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
60.28 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
60.29 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
60.30 	appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.
60.31 	(b) An amount up to $876,000 needed to pay principal and interest on appropriation 
60.32 	bonds issued under subdivision 2b is appropriated each fiscal year from the general fund 
60.33 	to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
61.1 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
61.2 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
61.3 	appropriation is available beginning in fiscal year 2018 and through fiscal year 2039. The 
61.4 	appropriation in fiscal year 2018 is limited to $438,000.
61.5 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for by 
61.6 	section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary 
61.7 	contracts to which the commissioner is a party.

61.8 	Sec. 2. [16A.968] DULUTH STEAM PLANT APPROPRIATION BONDS.
61.9 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
61.10 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of 
61.11 	the state payable during a biennium from one or more of the following sources:
61.12 	(1) money appropriated by law from the general fund in any biennium for debt service 
61.13 	due with respect to obligations described in subdivision 2, paragraph (a);
61.14 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);
61.15 	(3) payments received for that purpose under agreements and ancillary arrangements 
61.16 	described in subdivision 2, paragraph (d); and
61.17 	(4) investment earnings on amounts in clauses (1) to (3).
61.18 	(c) "Debt service" means the amount payable in any biennium of principal, premium, if 
61.19 	any, and interest on appropriation bonds.
61.20 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
61.21 	this subdivision, the commissioner may sell and issue appropriation bonds of the state under 
61.22 	this section for public purposes as provided by law, including, in particular, for the purposes 
61.23 	of financing the predesign, design, engineering, renovation, construction, furnishing, and 
61.24 	equipping of facilities and infrastructure to upgrade the Duluth district heating facility and 
61.25 	systems, including conversion of the distribution system along Superior Street from steam 
61.26 	with no condensate return, to closed-loop hot water. Appropriation bonds may be sold and 
61.27 	issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient 
61.28 	money to the commissioner of employment and economic development under subdivision 
61.29 	7, not to exceed $21,000,000 net of costs of issuance, for the purposes as provided under 
61.30 	this subdivision, and to pay debt service including capitalized interest, costs of issuance, 
61.31 	costs of credit enhancement, or make payments under other agreements entered into under 
62.1 	paragraph (d). No bonds shall be sold under this subdivision until the commissioner 
62.2 	determines that amounts sufficient to complete the project have been committed.
62.3 	(b) Proceeds of the appropriation bonds must be credited to a special appropriation 
62.4 	Duluth Steam Plant bond proceeds fund in the state treasury. All income from investment 
62.5 	of the bond proceeds, as estimated by the commissioner, is appropriated to the commissioner 
62.6 	for the payment of principal and interest on the appropriation bonds.
62.7 	(c) Appropriation bonds may be issued in one or more issues or series on the terms and 
62.8 	conditions the commissioner determines to be in the best interests of the state, but the term 
62.9 	on any series of appropriation bonds may not exceed 21 years. The appropriation bonds of 
62.10 	each issue and series thereof shall be dated and bear interest, and may be includable in or 
62.11 	excludable from the gross income of the owners for federal income tax purposes.
62.12 	(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time 
62.13 	thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter 
62.14 	into agreements and ancillary arrangements relating to the appropriation bonds, including 
62.15 	but not limited to trust indentures, grant agreements, lease or use agreements, operating 
62.16 	agreements, management agreements, liquidity facilities, remarketing or dealer agreements, 
62.17 	letter of credit agreements, insurance policies, guaranty agreements, reimbursement 
62.18 	agreements, indexing agreements, or interest exchange agreements. Any payments made 
62.19 	or received according to the agreement or ancillary arrangement shall be made from or 
62.20 	deposited as provided in the agreement or ancillary arrangement. The determination of the 
62.21 	commissioner included in an interest exchange agreement that the agreement relates to an 
62.22 	appropriation bond shall be conclusive.
62.23 	(e) The commissioner may enter into written agreements or contracts relating to the 
62.24 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
62.25 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
62.26 	including Securities and Exchange Commission rules and regulations in Code of Federal 
62.27 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
62.28 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
62.29 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
62.30 	the order or resolution.
62.31 	(f) The appropriation bonds are not subject to chapter 16C.
62.32 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, 
62.33 	notes, or other similar instruments, and in the manner provided in section 16A.672. In the 
63.1 	event that any provision of section 16A.672 conflicts with this section, this section shall 
63.2 	control.
63.3 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
63.4 	established in subdivision 6.
63.5 	(c) Appropriation bonds may be sold at either public or private sale upon such terms as 
63.6 	the commissioner shall determine are not inconsistent with this section and may be sold at 
63.7 	any price or percentage of par value. Any bid received may be rejected.
63.8 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
63.9 	(e) Notwithstanding any other law, appropriation bonds issued under this section shall 
63.10 	be fully negotiable.
63.11 		Subd. 4.Refunding bonds. The commissioner may issue appropriation bonds for the 
63.12 	purpose of refunding any appropriation bonds then outstanding, including the payment of 
63.13 	any redemption premiums on the bonds, any interest accrued or to accrue to the redemption 
63.14 	date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any 
63.15 	refunding bonds may, in the discretion of the commissioner, be applied to the purchase or 
63.16 	payment at maturity of the appropriation bonds to be refunded, to the redemption of the 
63.17 	outstanding appropriation bonds on any redemption date, or to pay interest on the refunding 
63.18 	bonds and may, pending application, be placed in escrow to be applied to the purchase, 
63.19 	payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be 
63.20 	invested and reinvested in obligations that are authorized investments under section 11A.24. 
63.21 	The income earned or realized on the investment may also be applied to the payment of the 
63.22 	appropriation bonds to be refunded or interest or premiums on the refunded appropriation 
63.23 	bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been 
63.24 	fully satisfied, any balance of the proceeds and any investment income may be returned to 
63.25 	the general fund or, if applicable, the special appropriation Duluth Steam Plant proceeds 
63.26 	fund for use in any lawful manner. All refunding bonds issued under this subdivision must 
63.27 	be prepared, executed, delivered, and secured by appropriations in the same manner as the 
63.28 	appropriation bonds to be refunded.
63.29 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities may 
63.30 	legally invest any sinking funds, money, or other funds belonging to them or under their 
63.31 	control in any appropriation bonds issued under this section:
63.32 	(1) the state, the Investment Board, public officers, municipal corporations, political 
63.33 	subdivisions, and public bodies;
64.1 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
64.2 	savings banks and institutions, investment companies, insurance companies, insurance 
64.3 	associations, and other persons carrying on a banking or insurance business; and
64.4 	(3) personal representatives, guardians, trustees, and other fiduciaries.
64.5 		Subd. 6.No full faith and credit; state not required to make appropriations. The 
64.6 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
64.7 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
64.8 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
64.9 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
64.10 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
64.11 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
64.12 	for any fiscal year, provided that nothing in this section shall be construed to require the 
64.13 	state to appropriate money sufficient to make debt service payments with respect to the 
64.14 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no 
64.15 	longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
64.16 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
64.17 	of final payment of the principal of and interest on the appropriation bonds.
64.18 		Subd. 7.Appropriation of proceeds. The proceeds of appropriation bonds issued under 
64.19 	subdivision 2, paragraph (a), and interest credited to the special appropriation Duluth Steam 
64.20 	Plant bond proceeds fund are appropriated as follows:
64.21 	(1) to the commissioner of employment and economic development for a grant to the 
64.22 	city of Duluth for payment of capital expenses as specified in subdivision 2, paragraph (a); 
64.23 	and
64.24 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
64.25 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 
64.26 	payments under any agreements entered into under subdivision 2, paragraph (d), each as 
64.27 	permitted by state and federal law.
64.28 		Subd. 8.Appropriation for debt service and other purposes. An amount, up to 
64.29 	$1,600,000 needed to pay principal and interest on appropriation bonds issued under 
64.30 	subdivision 2, paragraph (a), is appropriated each fiscal year from the general fund to the 
64.31 	commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
64.32 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
64.33 	for such purpose in the special Duluth Steam Plant appropriation bond proceeds fund. The 
65.1 	appropriation is available beginning in fiscal year 2018 and through fiscal year 2039. The 
65.2 	appropriation in fiscal year 2018 is limited to $800,000.
65.3 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for by 
65.4 	section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary 
65.5 	contracts to which the commissioner is a party.

65.6 	Sec. 3. Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:
65.7 		Subd. 2.Standards. (a) An appropriation for asset preservation may be used only for a 
65.8 	capital expenditure on a capital asset previously owned by the state, within the meaning of 
65.9 	generally accepted accounting principles as applied to public expenditures. The commissioner 
65.10 	of natural resources will consult with the commissioner of management and budget to the 
65.11 	extent necessary to ensure this and will furnish the commissioner of management and budget 
65.12 	a list of projects to be financed from the account in order of their priority. The legislature 
65.13 	assumes that many projects for preservation and replacement of portions of existing capital 
65.14 	assets will constitute betterments and capital improvements within the meaning of the 
65.15 	Constitution and capital expenditures under generally accepted accounting principles, and 
65.16 	will be financed more efficiently and economically under this section than by direct 
65.17 	appropriations for specific projects.
65.18 	(b) An appropriation for asset preservation must not be used to acquire land or to acquire 
65.19 	or construct buildings or other facilities.
65.20 	(c) Capital budget expenditures for natural resource asset preservation and replacement 
65.21 	projects must be for one or more of the following types of capital projects that support the 
65.22 	existing programmatic mission of the department: code compliance including health and 
65.23 	safety, Americans with Disabilities Act requirements, hazardous material abatement, access 
65.24 	improvement, or air quality improvement; building energy efficiency improvements using 
65.25 	current best practices; building or infrastructure repairs necessary to preserve the interior 
65.26 	and exterior of existing buildings; projects to remove life safety hazards such as building 
65.27 	code violations or structural defects; or renovation of other existing improvements to land, 
65.28 	including but not limited to trails and bridges.
65.29 	(d) Up to ten percent of an appropriation awarded under this section may be used for 
65.30 	design costs for projects eligible to be funded from this account in anticipation of future 
65.31 	funding from the account.

66.1 	Sec. 4. Minnesota Statutes 2016, section 85.34, subdivision 1, is amended to read:
66.2 		Subdivision 1.Upper bluff; lease terms. The commissioner of natural resources with 
66.3 	the approval of the Executive Council may lease for purposes of restoration, preservation, 
66.4 	historical, recreational, educational, and commercial use and development, that portion of 
66.5 	Fort Snelling State Park known as the upper bluff consisting of officer's row, area J, the 
66.6 	polo grounds, the adjacent golf course, and all buildings and improvements located thereon, 
66.7 	all lying within an area bounded by Minneapolis-St. Paul International Airport, Trunk 
66.8 	Highways numbered 5 and 55, and Bloomington Road. The lease or leases shall be in a 
66.9 	form approved by the attorney general and for a term of not to exceed 99 years. The lease 
66.10 	or leases may provide for the provision of capital improvements or other performance by 
66.11 	the tenant or tenants in lieu of all or some of the payments of rent that would otherwise be 
66.12 	required. Notwithstanding the continuing ownership of the upper bluff by the state, any 
66.13 	lease of one or more buildings improved with state general obligation bond proceeds that 
66.14 	exceeds 50 years shall be treated as a sale of the buildings for purposes of section 16A.695, 
66.15 	subdivision 3. Any disposition proceeds payable to the commissioner upon execution of a 
66.16 	lease relating to state bond-financed buildings at the upper bluff shall be applied according 
66.17 	to section 16A.695, subdivision 3, and used to pay, redeem, or defease state general obligation 
66.18 	bonds issued for purposes of improving those buildings. Any lease revenues paid to the 
66.19 	commissioner subsequent to the payment, redemption, or defeasance of state general 
66.20 	obligation bonds shall be used by the commissioner as further described in this section.

66.21 	Sec. 5. [174.13] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
66.22 		Subdivision 1.Establishment; accounts. (a) A transportation facilities capital program 
66.23 	is established to prioritize among eligible projects that:
66.24 	(1) support the programmatic mission of the department;
66.25 	(2) extend the useful life of existing buildings; or
66.26 	(3) renovate or construct facilities to meet the department's current and future operational 
66.27 	needs.
66.28 	Projects under the transportation facilities capital program are funded by proceeds from the 
66.29 	sale of trunk highway bonds or from other funds appropriated for the purposes of this section.
66.30 	(b) A transportation facilities capital account is established in the trunk highway fund. 
66.31 	The account consists of all money appropriated from the trunk highway fund for the purposes 
66.32 	of this section and any other money donated, allotted, transferred, or otherwise provided to 
67.1 	the account by law. Money in the account is appropriated to the commissioner for the 
67.2 	purposes specified and consistent with the standards and criteria set forth in this section.
67.3 	(c) A transportation facilities capital account is established in the bond proceeds account 
67.4 	of the trunk highway fund. The account consists of trunk highway bond proceeds appropriated 
67.5 	to the commissioner. Money in the account may only be expended on trunk highway 
67.6 	purposes, which includes the purposes in this section.
67.7 		Subd. 2.Standards. (a) Article XIV, section 11, of the Minnesota Constitution states 
67.8 	that trunk highway bonds may be issued to finance the construction, improvement, and 
67.9 	maintenance of the public highway system in the state. The legislature assumes that many 
67.10 	projects for preservation and replacement of portions of existing capital assets constitute 
67.11 	the construction, improvement, and maintenance of the public highway system within the 
67.12 	meaning of the Minnesota Constitution and capital expenditures under generally accepted 
67.13 	accounting principles, and shall be financed more efficiently and economically under the 
67.14 	program than by direct appropriations for specific projects.
67.15 	(b) When allocating funding under this section, the commissioner must review the 
67.16 	projects deemed eligible under subdivision 3 and prioritize allocations using the criteria in 
67.17 	subdivision 4. Money allocated to a specific project in an act of appropriation or other law 
67.18 	must be allocated as provided by the law.
67.19 		Subd. 3.Eligible expenditures; limitations. (a) A project is eligible under this section 
67.20 	only if it is a capital expenditure on a capital building asset owned or to be owned by the 
67.21 	state within the meaning of accepted accounting principles as applied to public expenditures.
67.22 	(b) Capital budget expenditures that are eligible under this section include, but are not 
67.23 	limited to: acquisition of land and buildings, and the predesign, engineering, construction, 
67.24 	furnishing and equipping of district headquarter buildings, truck stations, salt storage or 
67.25 	other unheated storage buildings, deicing and anti-icing facilities, fuel dispensing facilities, 
67.26 	highway rest areas, and vehicle weigh and inspection stations.
67.27 		Subd. 4.Criteria for priorities. When prioritizing funding allocation among projects 
67.28 	eligible under subdivision 3, the commissioner must consider:
67.29 	(1) whether a project ensures the effective and efficient condition and operation of the 
67.30 	facility;
67.31 	(2) the urgency in ensuring the safe use of existing buildings;
67.32 	(3) the project's total life-cycle cost;
68.1 	(4) additional criteria for priorities otherwise specified in state law, statute, or rule that 
68.2 	applies to a category listed in the act making an appropriation for the program; and
68.3 	(5) any other criteria the commissioner deems necessary

68.4 	Sec. 6. [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY 
68.5 	ACCOUNT.
68.6 		Subdivision 1.Purpose. A hazardous materials rail safety program is established for 
68.7 	the purpose of reducing the risks associated with the transportation of hazardous material 
68.8 	by rail.
68.9 		Subd. 2.Creation of account. A hazardous materials rail safety program account is 
68.10 	established in the bond proceeds fund. Money in the account may only be used for capital 
68.11 	costs associated with planning, engineering, administration, and construction of public 
68.12 	highway-rail grade crossing improvements on rail corridors transporting crude oil and other 
68.13 	hazardous materials. Improvements may include upgrades to existing protection systems, 
68.14 	the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings 
68.15 	to full grade separations.
68.16 		Subd. 3.Grants. The commissioner may approve grants for financial assistance to 
68.17 	eligible applicants for capital costs associated with hazardous materials rail safety projects 
68.18 	on public highway-rail grade crossings. Qualifying capital costs include, but are not limited 
68.19 	to, upgrades to existing protection systems, the closing of crossings and necessary roadwork, 
68.20 	and reconstruction of at-grade crossings to full grade separations.
68.21 		Subd. 4.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
68.22 	that are responsible for establishing and maintaining public highway-rail grade crossings 
68.23 	on rail corridors transporting crude oil and other hazardous materials may apply to the 
68.24 	commissioner for financial assistance for the purposes in this section.
68.25 		Subd. 5.Criteria for grant award. The commissioner shall consider the following 
68.26 	criteria to evaluate applications for a grant award for a hazardous materials rail safety project:
68.27 	(1) whether the crossing was identified as a potential candidate for grade separation in 
68.28 	MnDOT's crude by rail grade crossing study (Improvements to Highway Grade Crossings 
68.29 	and Rail Safety, December 2014);
68.30 	(2) roadway traffic volumes and speeds;
68.31 	(3) train volumes and speeds;
68.32 	(4) adjacent land use;
69.1 	(5) crash history;
69.2 	(6) use of the crossing by emergency vehicles;
69.3 	(7) use of the crossing by vehicles carrying hazardous materials; and
69.4 	(8) local financial contributions to the project.

69.5 	Sec. 7. Minnesota Statutes 2016, section 219.166, is amended to read:
69.6 	219.166 ESTABLISHMENT OF QUIET ZONES.
69.7 		Subdivision 1.Eligible applicants. A county, statutory or home rule charter city, or 
69.8 	town may apply to the Federal Railroad Administration for the establishment of a "quiet 
69.9 	zone" at a public highway-rail grade crossing in which the sounding of horns, whistles, or 
69.10 	other audible warnings by locomotives is regulated or prohibited. All quiet zones, regulations, 
69.11 	and ordinances adopted under this section must conform to federal law and the regulations 
69.12 	of the Federal Railroad Administration under United States Code of Federal Regulations, 
69.13 	title 49, section 20153 parts 222 and 229.
69.14 		Subd. 2.Purpose of program. A public highway-rail grade crossing quiet zone program 
69.15 	is established for the purpose of improving and rehabilitating railroad rights-of-way and 
69.16 	other public and private rail facilities, including necessary safety-related capital improvements 
69.17 	at public highway-rail grade crossings where quiet zones are established.
69.18 		Subd. 3.Creation of account. A public highway-rail grade crossing quiet zone account 
69.19 	is established in the bond proceeds fund. Money in the account may only be used for capital 
69.20 	costs associated with the establishment of a quiet zone at a public highway-rail grade 
69.21 	crossing.
69.22 		Subd. 4.Eligible applicants for state assistance. Counties, statutory or home rule 
69.23 	charter cities, or towns that are responsible for traffic control or law enforcement at a public 
69.24 	highway-rail grade crossing qualify as eligible applicants to the Federal Railroad 
69.25 	Administration (FRA) for the establishment of a quiet zone may apply to the commissioner 
69.26 	for financial assistance for establishment of a quiet zone.
69.27 		Subd. 5.Grants. The commissioner may approve grants for financial assistance to 
69.28 	eligible applicants for capital costs associated with the establishment of a quiet zone at a 
69.29 	public highway-rail grade crossing. Qualifying capital costs include, but are not limited to, 
69.30 	the installation of grade crossing active warning devices and other traffic control devices 
69.31 	and associated roadwork necessary to meet the FRA criteria for approval of the quiet zone.
70.1 		Subd. 6.Criteria for grant award. The commissioner shall consider the following 
70.2 	criteria to evaluate applications for a grant award for a quiet zone project:
70.3 	(1) the number of residents that will benefit from the establishment of the quiet zone 
70.4 	through a reduction in train horn noise;
70.5 	(2) the number of existing grade crossings that will be closed, thereby improving public 
70.6 	safety;
70.7 	(3) evidence that the project meets FRA qualifications and requirements for a quiet zone, 
70.8 	without the need for additional annual review by FRA per federal quiet zone regulations;
70.9 	(4) nonstate financial participation as a percentage of total project cost; and
70.10 	(5) the amount of state financial participation per resident benefiting from the project.

70.11 	Sec. 8. Minnesota Statutes 2016, section 256E.37, is amended to read:
70.12 	256E.37 EARLY CHILDHOOD LEARNING AND CHILD PROTECTION 
70.13 	FACILITIES.
70.14 		Subdivision 1.Grant authority. The commissioner may make grants to state agencies 
70.15 	and political subdivisions to construct or rehabilitate facilities for early childhood programs, 
70.16 	crisis nurseries, or parenting time centers. The following requirements apply:
70.17 	(1) The facilities must be owned by the state or a political subdivision, but may be leased 
70.18 	under section 16A.695 to organizations that operate the programs. The commissioner must 
70.19 	prescribe the terms and conditions of the leases.
70.20 	(2) A grant for an individual facility must not exceed $500,000 for each program that 
70.21 	is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three 
70.22 	programs or more. Programs include Head Start, School Readiness, Early Childhood Family 
70.23 	Education, licensed child care, and other early childhood intervention programs.
70.24 	(3) State appropriations must be matched on a 50 percent basis with nonstate funds. The 
70.25 	matching requirement must apply program wide and not to individual grants.
70.26 	(4) At least 80 percent of grant funds must be distributed to facilities located in counties 
70.27 	not included in the definition under section 473.121, subdivision 4.
70.28 		Subd. 2.Grant priority. (a) The commissioner must give priority to:
70.29 	(1) projects located in counties not included in the definition under section 473.121, 
70.30 	subdivision 4;
71.1 	(2) projects in counties or municipalities with the highest percentage of children living 
71.2 	in poverty;
71.3 	(2) (3) grants that involve collaboration among sponsors of programs under this section; 
71.4 	and
71.5 	(3) (4) where feasible, grants for programs that utilize Youthbuild under sections 
71.6 	116L.361 to 116L.366 for at least 25 percent of each grant awarded or $50,000 of the labor 
71.7 	portion of the construction, whichever is less, if:.
71.8 	(i) the work is appropriate for Youthbuild, as mutually agreed upon by the grantee and 
71.9 	the local Youthbuild program, considering safety and skills needed;
71.10 	(ii) it is demonstrated by Youthbuild that using Youthbuild will not increase the overall 
71.11 	cost of the project; and
71.12 	(iii) eligible programs consult with appropriate labor organizations to deliver education 
71.13 	and training.
71.14 	(b) The commissioner may give priority to:
71.15 	(1) projects that collaborate with child care providers, including all-day and school-age 
71.16 	child care programs, special needs care, sick child care, nontraditional hour care, and 
71.17 	programs that include services to refugee and immigrant families; and
71.18 	(2) grants for programs that will increase their child care workers' wages as a result of 
71.19 	the grant; and
71.20 	(3) (2) projects that will improve the quality of early childhood programs.

71.21 	Sec. 9. Minnesota Statutes 2016, section 363A.36, is amended to read:
71.22 	363A.36 CERTIFICATES OF COMPLIANCE FOR PUBLIC CONTRACTS.
71.23 		Subdivision 1.Scope of application. (a) For all contracts for goods and services in 
71.24 	excess of $100,000, no department or agency of the state shall accept any bid or proposal 
71.25 	for a contract or agreement from any business having more than 40 full-time employees 
71.26 	within this state on a single working day during the previous 12 months, unless the 
71.27 	commissioner is in receipt of the business' affirmative action plan for the employment of 
71.28 	minority persons, women, and qualified disabled individuals. No department or agency of 
71.29 	the state shall execute any such contract or agreement until the affirmative action plan has 
71.30 	been approved by the commissioner. Receipt of a certificate of compliance issued by the 
71.31 	commissioner shall signify that a firm or business has an affirmative action plan that has 
71.32 	been approved by the commissioner. A certificate shall be valid for a period of four years. 
72.1 	A municipality as defined in section 466.01, subdivision 1, that receives state money for 
72.2 	any reason is encouraged to prepare and implement an affirmative action plan for the 
72.3 	employment of minority persons, women, and the qualified disabled and submit the plan 
72.4 	to the commissioner.
72.5 	(b) This paragraph applies to a contract for goods or services in excess of $100,000 to 
72.6 	be entered into between a department or agency of the state and a business that is not subject 
72.7 	to paragraph (a), but that has more than 40 full-time employees on a single working day 
72.8 	during the previous 12 months in the state where the business has its primary place of 
72.9 	business. A department or agency of the state may not execute a contract or agreement with 
72.10 	a business covered by this paragraph unless the business has a certificate of compliance 
72.11 	issued by the commissioner under paragraph (a) or the business certifies that it is in 
72.12 	compliance with federal affirmative action requirements.
72.13 	(c) This section does not apply to contracts entered into by the State Board of Investment 
72.14 	for investment options under section 356.645.
72.15 	(d) The commissioner shall issue a certificate of compliance or notice of denial within 
72.16 	15 days of the application submitted by the business or firm.
72.17 	(e) The requirements in paragraphs (a) and (b) apply to all contracts or agreements 
72.18 	executed by public officers or agencies for goods and services in excess of $100,000 for 
72.19 	projects subject to section 16A.695.
72.20 		Subd. 2.Filing fee; account; appropriation. The commissioner shall collect a $150 
72.21 	fee for each certificate of compliance issued by the commissioner or the commissioner's 
72.22 	designated agent. The proceeds of the fee must be deposited in a human rights fee special 
72.23 	revenue account. Money in the account is appropriated to the commissioner to fund the cost 
72.24 	of issuing certificates and investigating grievances.
72.25 		Subd. 3.Revocation of certificate. Certificates of compliance may be suspended or 
72.26 	revoked by the commissioner if a holder of a certificate has not made a good faith effort to 
72.27 	implement an affirmative action plan that has been approved by the commissioner. If a 
72.28 	contractor does not effectively implement an affirmative action plan approved by the 
72.29 	commissioner pursuant to subdivision 1, or fails to make a good faith effort to do so, the 
72.30 	commissioner may refuse to approve subsequent plans submitted by that firm or business.
72.31 		Subd. 4.Revocation of contract. A contract awarded by a department or agency of the 
72.32 	state, or any other public officer or agency subject to section 16A.695, may be terminated 
72.33 	or abridged by the department or agency, or other public officer or agency subject to section 
72.34 	16A.695, because of suspension or revocation of a certificate based upon a contractor's 
73.1 	failure to implement or make a good faith effort to implement an affirmative action plan 
73.2 	approved by the commissioner under this section. If a contract is awarded to a person who 
73.3 	does not have a contract compliance certificate required under subdivision 1, the 
73.4 	commissioner may void the contract on behalf of the state.
73.5 		Subd. 5.Technical assistance. In the case of a contractor whose certificate of compliance 
73.6 	has been suspended, the commissioner shall provide technical assistance that may enable 
73.7 	the contractor to be recertified within 90 days after the contractor's certificate has been 
73.8 	suspended.

73.9 	Sec. 10. Minnesota Statutes 2016, section 363A.44, subdivision 1, is amended to read:
73.10 		Subdivision 1.Scope. (a) No department, agency of the state, the Metropolitan Council, 
73.11 	or an agency subject to section 473.143, subdivision 1, shall execute a contract for goods 
73.12 	or services or an agreement for goods or services in excess of $500,000 with a business that 
73.13 	has 40 or more full-time employees in this state or a state where the business has its primary 
73.14 	place of business on a single day during the prior 12 months, unless the business has an 
73.15 	equal pay certificate or it has certified in writing that it is exempt. A certificate is valid for 
73.16 	four years.
73.17 	(b) This section does not apply to a business with respect to a specific contract if the 
73.18 	commissioner of administration determines that application of this section would cause 
73.19 	undue hardship to the contracting entity. This section does not apply to a contract to provide 
73.20 	goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I, 
73.21 	256L, and 268A, with a business that has a license, certification, registration, provider 
73.22 	agreement, or provider enrollment contract that is prerequisite to providing those goods and 
73.23 	services. This section does not apply to contracts entered into by the State Board of 
73.24 	Investment for investment options under section 352.965, subdivision 4.
73.25 	(c) The requirements in paragraph (a) apply to all contracts or agreements executed by 
73.26 	public officers or agencies for goods and services in excess of $500,000 for projects subject 
73.27 	to section 16A.695.

73.28 	Sec. 11. Minnesota Statutes 2016, section 446A.072, is amended to read:
73.29 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING PROGRAM.
73.30 		Subdivision 1.Establishment of program. The authority will establish a wastewater
73.31 	water infrastructure funding program to provide supplemental assistance to governmental 
73.32 	units receiving funding through the clean water revolving fund program, the drinking water 
74.1 	revolving fund program, or the United States Department of Agriculture Rural Economic 
74.2 	and Community Development's (USDA/RECD) Water and Waste Disposal Loans and 
74.3 	Grants program for the predesign, design, and construction of municipal wastewater treatment
74.4 	and drinking water systems, including purchase of land and easements. The purpose of the 
74.5 	program is to assist governmental units demonstrating financial need to build cost-effective 
74.6 	projects to address existing environmental or public health problems. To implement the 
74.7 	program, the authority shall establish a wastewater water infrastructure fund to provide 
74.8 	grants and loans for the purposes authorized under title VI of the Federal Water Pollution 
74.9 	Control Act and the federal Safe Drinking Water Act. The fund shall be credited with all 
74.10 	investment income from the fund and all repayments of loans, grants, and penalties.
74.11 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
74.12 	assistance, as provided in subdivision 5a to governmental units:
74.13 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
74.14 	the Department of Health's project priority list;
74.15 	(2) that demonstrate their projects are a cost-effective solution to an existing 
74.16 	environmental or public health problem; and
74.17 	(3) whose projects are approved by the USDA/RECD or certified by the commissioner 
74.18 	of the Pollution Control Agency or the Department of Health.
74.19 	(b) For a governmental unit receiving grant funding from the USDA/RECD, applications 
74.20 	must be made to the USDA/RECD with additional information submitted to the authority 
74.21 	as required by the authority. Eligible project costs and affordability criteria shall be 
74.22 	determined by the USDA/RECD.
74.23 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
74.24 	application must be made to the authority on forms prescribed by the authority for the clean 
74.25 	water revolving fund program or the drinking water revolving fund program with additional 
74.26 	information as required by the authority. In accordance with section 116.182, the Pollution 
74.27 	Control Agency or Department of Health shall:
74.28 	(1) calculate the essential project component percentage based on the portion of project 
74.29 	costs necessary to convey or treat the existing wastewater flows and loadings or, for drinking 
74.30 	water projects, to provide safe drinking water to meet existing needs, which must be 
74.31 	multiplied by the total project cost to determine the eligible project cost for the program 
74.32 	under this section; and
74.33 	(2) review and certify approved projects to the authority.
75.1 	(d) Each fiscal year the authority shall make funds available for projects based on their 
75.2 	ranking on the Pollution Control Agency's project priority list or the Department of Health's 
75.3 	project priority list. The authority shall reserve funds for a project when the applicant receives 
75.4 	a funding commitment from the United States Department of Agriculture Rural Development 
75.5 	(USDA/RECD) or submits plans and specifications to the project is certified by the Pollution 
75.6 	Control Agency or Department of Health. Funds must be reserved in an amount based on 
75.7 	the project cost estimate submitted to the authority prior to the appropriation of the funds 
75.8 	and awarded based on the lesser of that amount or the as-bid cost when the project is certified 
75.9 	or the as-bid cost, whichever is less.
75.10 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
75.11 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
75.12 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
75.13 	unit may not receive a grant under this paragraph for more than $4,000,000 $5,000,000 per 
75.14 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
75.15 	approved by law.
75.16 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
75.17 	section 446A.07, the authority may provide assistance under this section in the form of a 
75.18 	grant if the average annual residential wastewater system cost after completion of the project 
75.19 	would otherwise exceed 1.4 percent of the median household income of the project service 
75.20 	area. In determining whether the average annual residential wastewater system cost would 
75.21 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
75.22 	operating, and maintaining the wastewater system, including existing wastewater debt 
75.23 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
75.24 	service costs for the proposed project are calculated based on the maximum loan term 
75.25 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
75.26 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
75.27 	annual residential wastewater system cost to 1.4 percent of median household income in 
75.28 	the project service area, to a maximum of $4,000,000 $5,000,000 per project or $15,000
75.29 	$20,000 per existing connection, whichever is less, unless specifically approved by law. 
75.30 	The eligible project cost is determined by multiplying the total project costs minus any other 
75.31 	grants by the essential project component percentage calculated under subdivision 3, 
75.32 	paragraph (c), clause (1). In no case may the amount of the grant exceed 80 percent of the 
75.33 	eligible project cost.
75.34 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
75.35 	under section 446A.081, the authority may provide assistance under this section in the form 
76.1 	of a grant if the average annual residential drinking water system cost after completion of 
76.2 	the project would otherwise exceed 1.2 percent of the median household income of the 
76.3 	project service area. In determining whether the average annual residential drinking water 
76.4 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
76.5 	with building, operating, and maintaining the drinking water system, including existing 
76.6 	drinking water debt service, debt service on the eligible project cost, and operation and 
76.7 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
76.8 	maximum loan term permitted for the drinking water revolving fund loan under section 
76.9 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
76.10 	the amount needed to reduce the average annual residential drinking water system cost to 
76.11 	1.2 percent of median household income in the project service area, to a maximum of 
76.12 	$5,000,000 per project or $20,000 per existing connection, whichever is less, unless 
76.13 	specifically approved by law. The eligible project cost is determined by multiplying the 
76.14 	total project costs minus any other grants by the essential project component percentage 
76.15 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
76.16 	grant exceed 80 percent of the eligible project cost.
76.17 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a governmental 
76.18 	unit receiving supplemental assistance under this section after January 1, 2002, if the authority 
76.19 	determines that the governmental unit's construction and installation costs are significantly 
76.20 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
76.21 	limits that are more stringent than secondary treatment, the maximum award under this 
76.22 	section shall not be more than $25,000 per existing connection.
76.23 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan under 
76.24 	subdivision 5a that levies special assessments to repay the loan under subdivision 5a or 
76.25 	section 446A.07 may defer payment of such assessments under the provisions of sections 
76.26 	435.193 to 435.195.
76.27 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this section 
76.28 	by the authority to recipients must be made for eligible project costs as incurred by the 
76.29 	recipients, and must be made by the authority in accordance with the project financing 
76.30 	agreement and applicable state and federal laws and rules governing the payments.
76.31 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 475.54, 
76.32 	subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund 
76.33 	redemptions of the loans under this section. A governmental unit receiving a loan under 
76.34 	this section shall repay the loan in semiannual payment amounts determined by the authority. 
76.35 	The payment amount must be based on the average payments on the governmental unit's 
77.1 	clean water revolving fund loan or, if greater, the minimum amount required to fully repay 
77.2 	the loan by the maturity date. Payments must begin within one year of the date of the 
77.3 	governmental unit's final payment on the clean water revolving fund loan. The final maturity 
77.4 	date of the loan under this section must be no later than 20 years from the date of the first 
77.5 	payment on the loan under this section and no later than 40 years from the date of the first 
77.6 	payment on the clean water revolving fund loan.
77.7 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
77.8 	only after applying for grant funding from other sources and funding has been obtained, 
77.9 	rejected, or the authority has determined that the potential funding is unlikely.
77.10 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce the 
77.11 	sewer service charges of a significant wastewater contributor industrial user that has a 
77.12 	separate service charge agreement with the recipient, or a single user that has caused the 
77.13 	need for the project or whose current or projected flow and load exceed usage exceeds
77.14 	one-half of the current wastewater treatment plant's or drinking water system capacity.
77.15 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the authority, 
77.16 	in conjunction with the Pollution Control Agency and Department of Health, shall prepare 
77.17 	a report to the Finance Division of the senate Environment and Natural Resources Committee 
77.18 	and the house of representatives Environment and Natural Resources Finance Committee 
77.19 	on wastewater and drinking water funding assistance needs of governmental units under 
77.20 	this section.
77.21 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or grant 
77.22 	under this section shall establish a system replacement fund and shall annually deposit a 
77.23 	minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, or 
77.24 	replacement of the treatment wastewater or drinking water system, or replacement of the 
77.25 	treatment system at the end of its useful life. Money must remain in the account for the life 
77.26 	of the corresponding project loan from the authority or USDA/RECD, unless use of the 
77.27 	fund is approved in writing by the authority for major rehabilitation, expansion, or 
77.28 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
77.29 	during the life of the loan, each recipient shall submit a report to the authority regarding the 
77.30 	amount deposited and the fund balance for the prior calendar year. A recipient is not required 
77.31 	to maintain a fund balance greater than the amount of the grant received. Failure to comply 
77.32 	with the requirements of this subdivision shall result in the authority assessing a penalty 
77.33 	fee to the recipient equal to one percent of the supplemental assistance amount for each 
77.34 	year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
77.35 	required constitutes a default on the loan.
78.1 		Subd. 14.Consistency with land use plans. A governmental unit applying for a project 
78.2 	in an unsewered area shall include in its application to the authority a certification from the 
78.3 	county in which the project is located that:
78.4 	(1) the project is consistent with the county comprehensive land use plan, if the county 
78.5 	has adopted one;
78.6 	(2) the project is consistent with the county water plan, if the county has adopted one; 
78.7 	and
78.8 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
78.9 	exceed the requirements of Minnesota Rules, part 7082.0050.

78.10 	Sec. 12. Minnesota Statutes 2016, section 446A.073, is amended to read:
78.11 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
78.12 		Subdivision 1.Program established. When money is appropriated for grants under this 
78.13 	program, the authority shall award grants up to a maximum of $3,000,000 $7,000,000 to 
78.14 	governmental units to cover up to one-half 80 percent of the cost of water infrastructure 
78.15 	projects made necessary by:
78.16 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
78.17 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
78.18 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
78.19 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
78.20 	Pollution Control Agency;
78.21 	(3) any other water quality-based effluent limit established under section 115.03, 
78.22 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution 
78.23 	Control Agency that exceeds secondary treatment limits; or
78.24 	(4) a total nitrogen concentration or mass limit of that requires discharging ten milligrams 
78.25 	per liter or less for a land-based treatment system at permitted design flow.
78.26 		Subd. 2.Grant application. Application for a grant must be made to the authority on 
78.27 	forms prescribed by the authority for the total maximum daily load grant program, with 
78.28 	additional information as required by the authority, including a project schedule and cost 
78.29 	estimate for the work necessary to comply with the point source wasteload allocation 
78.30 	requirements listed in subdivision 1. The Pollution Control Agency shall:
79.1 	(1) in accordance with section 116.182, calculate the essential project component 
79.2 	percentage, which must be multiplied by the total project cost to determine the eligible 
79.3 	project cost; and
79.4 	(2) review and certify to the authority those projects that have plans and specifications 
79.5 	approved under section 115.03, subdivision 1, paragraph (f).
79.6 		Subd. 3.Project priorities. When money is appropriated for grants under this program,
79.7 	The authority shall accept applications under this program during the month of July and. 
79.8 	When a project is certified by the Pollution Control Agency the authority shall reserve 
79.9 	money for projects expected to proceed with construction by the end of the fiscal year the 
79.10 	project in the order listed on the Pollution Control Agency's project priority list and in an 
79.11 	amount based on the cost estimate submitted to the authority in the grant application when 
79.12 	the project is certified or the as-bid costs, whichever is less. Notwithstanding Minnesota 
79.13 	Rules, chapter 7077, the Pollution Control Agency may rank a drinking water infrastructure 
79.14 	project on the agency's project priority list if the project is necessary to meet an applicable 
79.15 	requirement in subdivision 1.
79.16 		Subd. 4.Grant approval. The authority must make a grant for an eligible project only 
79.17 	after:
79.18 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
79.19 	(2) the Pollution Control Agency has approved the as-bid costs and certified the grant 
79.20 	eligible portion of the project; and
79.21 	(3) the authority has determined that the additional financing necessary to complete the 
79.22 	project has been committed from other sources.
79.23 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible project 
79.24 	costs as incurred by the governmental unit and in accordance with a project financing 
79.25 	agreement and applicable state and federal laws and rules governing the payments.

79.26 	Sec. 13. Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:
79.27 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be used 
79.28 	as provided in the act, including the following uses:
79.29 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
79.30 	systems for drinking water systems, where the debt was incurred after the date of enactment 
79.31 	of the act, for the purposes of construction of the necessary improvements to comply with 
79.32 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
80.1 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
80.2 	access or reduce interest rates;
80.3 	(3) to provide a source of revenue or security for the payment of principal and interest 
80.4 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
80.5 	deposited in the fund;
80.6 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
80.7 	governmental unit or state agency;
80.8 	(5) to earn interest on fund accounts;
80.9 	(6) to pay the reasonable costs incurred by the authority, the Department of Employment 
80.10 	and Economic Development, and the Department of Health for conducting activities as 
80.11 	authorized and required under the act up to the limits authorized under the act;
80.12 	(7) to develop and administer programs for water system supervision, source water 
80.13 	protection, and related programs required under the act;
80.14 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal forgiveness 
80.15 	or grants to the extent permitted under the federal Safe Drinking Water Act and other federal 
80.16 	law, based on the criteria and requirements established for drinking water projects under 
80.17 	the water infrastructure funding program under section 446A.072;
80.18 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
80.19 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
80.20 	or energy efficiency improvements, or other environmentally innovative activities; and
80.21 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up to 
80.22 	a maximum of $10,000 for projects needed to comply with national primary drinking water 
80.23 	standards for an existing community or noncommunity public water system.
80.24 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be provided 
80.25 	if the average annual residential drinking water system cost after completion of the project 
80.26 	would otherwise exceed 1.2 percent of the median household income in the project service 
80.27 	area. In determining whether the average annual residential drinking water system cost 
80.28 	would exceed 1.2 percent, the authority must consider the total costs associated with building, 
80.29 	operating, and maintaining the drinking water system, including debt service and operation 
80.30 	and maintenance costs. Debt service costs for the proposed project must be calculated based 
80.31 	on the maximum loan term permitted for the drinking water revolving fund loan under this 
80.32 	section. The amount of the principal forgiveness or grant must be equal to 80 percent of the 
80.33 	amount needed to reduce the average annual residential drinking water system cost to 1.2 
81.1 	percent of median household income in the project service area, to a maximum of $4,000,000 
81.2 	or $15,000 per connection, whichever is less, and not to exceed 80 percent of the total project 
81.3 	cost.
81.4 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not 
81.5 	exceed 25 percent of the eligible project costs as determined by the Department of Health 
81.6 	for project components directly related to green infrastructure, water or energy efficiency 
81.7 	improvements, or other environmentally innovative activities, up to a maximum of 
81.8 	$1,000,000.
81.9 	(d) The authority may reduce the percentage of median household income at which a 
81.10 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which principal 
81.11 	forgiveness or grants could be provided under paragraph (b) if it determines that the federal 
81.12 	money allotted to the state cannot be fully utilized without the reduction. If it determines 
81.13 	that the reduction is necessary to fully utilize the federal money, the authority must effect 
81.14 	the change through its approval of the annual intended use plan.

81.15 	Sec. 14. Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:
81.16 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
81.17 	principal amount that the authority determines necessary to provide sufficient funds for 
81.18 	achieving its purposes, including the making of loans and purchase of securities, the payment 
81.19 	of interest on bonds of the authority, the establishment of reserves to secure its bonds, the 
81.20 	payment of fees to a third party providing credit enhancement, and the payment of all other 
81.21 	expenditures of the authority incident to and necessary or convenient to carry out its corporate 
81.22 	purposes and powers, but not including the making of grants. Bonds of the authority may 
81.23 	be issued as bonds or notes or in any other form authorized by law. The principal amount 
81.24 	of bonds issued and outstanding under this section at any time may not exceed 
81.25 	$1,500,000,000 $2,000,000,000, excluding bonds for which refunding bonds or crossover 
81.26 	refunding bonds have been issued, and excluding any bonds issued for the credit enhanced 
81.27 	bond program or refunding or crossover refunding bonds issued under the program. The 
81.28 	principal amount of bonds issued and outstanding under section 446A.087, may not exceed 
81.29 	$500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds 
81.30 	have been issued.

81.31 	Sec. 15. Minnesota Statutes 2016, section 462A.37, subdivision 1, is amended to read:
81.32 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
81.33 	the meanings given.
82.1 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
82.2 	(c) (b) "Community land trust" means an entity that meets the requirements of section 
82.3 	462A.31, subdivisions 1 and 2.
82.4 	(d) (c) "Debt service" means the amount payable in any fiscal year of principal, premium, 
82.5 	if any, and interest on housing infrastructure bonds and the fees, charges, and expenses 
82.6 	related to the bonds.
82.7 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
82.8 	have been initiated or have been completed and title transferred or where title is transferred 
82.9 	in lieu of foreclosure.
82.10 	(f) (d) "Housing infrastructure bonds" means bonds issued by the agency under this 
82.11 	chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the 
82.12 	Internal Revenue Code, finance qualified residential rental projects within the meaning of 
82.13 	Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private 
82.14 	activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the 
82.15 	purpose of financing or refinancing affordable housing authorized under this chapter.
82.16 	(g) (e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
82.17 	(f) "Senior" means a person 55 years of age or older with an annual household income 
82.18 	not greater than 50 percent of:
82.19 	(1) the metropolitan area median income for persons in the metropolitan area as defined 
82.20 	in section 473.121, subdivision 2; or
82.21 	(2) the statewide median income for persons outside the metropolitan area.
82.22 	(g) "Senior housing" means housing intended and operated for occupancy by at least 
82.23 	one senior per unit with at least 80 percent of the units occupied and for which there is 
82.24 	publication of, and adherence to, policies and procedures that demonstrate an intent by the 
82.25 	owner or manager to provide housing for seniors. Senior housing may be developed in 
82.26 	conjunction with and as a distinct portion of mixed-income senior housing developments 
82.27 	which use a variety of public or private financing sources.
82.28 	(h) "Supportive housing" means housing that is not time-limited and provides or 
82.29 	coordinates with linkages to services necessary for residents to maintain housing stability 
82.30 	and maximize opportunities for education and employment.

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

83.1 	Sec. 16. Minnesota Statutes 2016, section 462A.37, subdivision 2, is amended to read:
83.2 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
83.3 	principal amount of housing infrastructure bonds in one or more series to which the payment 
83.4 	made under this section may be pledged. The housing infrastructure bonds authorized in 
83.5 	this subdivision may be issued to fund loans, on terms and conditions the agency deems 
83.6 	appropriate, made for one or more of the following purposes:
83.7 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
83.8 	housing for individuals and families who are without a permanent residence;
83.9 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
83.10 	housing to be used for affordable rental housing and the costs of new construction of rental 
83.11 	housing on abandoned or foreclosed property where the existing structures will be demolished 
83.12 	or removed;
83.13 	(3) (2) to finance that portion of the costs of acquisition of property that is attributable 
83.14 	to the land to be leased by community land trusts to low- and moderate-income homebuyers; 
83.15 	and
83.16 	(4) (3) to finance the costs of acquisition and rehabilitation of federally assisted rental 
83.17 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
83.18 	of federally assisted rental housing, including providing funds to refund, in whole or in part, 
83.19 	outstanding bonds previously issued by the agency or another government unit to finance 
83.20 	or refinance such costs.; and
83.21 	(4) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
83.22 	of senior housing.
83.23 	(b) Among comparable proposals for permanent supportive housing, preference shall 
83.24 	be given to permanent supportive housing for veterans and other individuals or families 
83.25 	who:
83.26 	(1) either have been without a permanent residence for at least 12 months or at least four 
83.27 	times in the last three years; or
83.28 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
83.29 	times in the last three years.
83.30 	(c) Among comparable proposals for senior housing, the agency must give priority to 
83.31 	requests for projects that:
84.1 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
84.2 	seniors;
84.3 	(2) leverage other sources of funding to finance the project, including the use of 
84.4 	low-income housing tax credits;
84.5 	(3) provide access to services to residents and demonstrate the ability to increase physical 
84.6 	supports and support services as residents age and experience increasing levels of disability;
84.7 	(4) provide a service plan containing the elements of item (3) reviewed by the housing 
84.8 	authority, economic development authority, public housing authority, or community 
84.9 	development agency that has an area of operation for the jurisdiction in which the project 
84.10 	is located; and
84.11 	(5) include households with incomes that do not exceed 30 percent of the median 
84.12 	household income for the metropolitan area as defined in section 473.121, subdivision 2. 
84.13 	To the extent practicable, the agency shall balance the loans made between projects in the 
84.14 	metropolitan area, as defined in section 473.121, subdivision 2, and projects outside the 
84.15 	metropolitan area. Of the loans made to projects outside the metropolitan area, the agency 
84.16 	shall, to the extent practicable, balance the loans made between projects in counties or cities 
84.17 	with a population of 20,000 or less, as established by the most recent decennial census, and 
84.18 	projects in counties or cities with populations in excess of 20,000.

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

84.21 	Sec. 17. Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:
84.22 		Subd. 2a.Additional authorization. In addition to the amount authorized in subdivision 
84.23 	2, the agency may issue up to $80,000,000 $97,000,000 of housing infrastructure bonds in 
84.24 	one or more series to which the payments made under this section may be pledged.

84.25 	Sec. 18. Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:
84.26 		Subd. 2b.Additional authorization. In addition to the amount authorized in subdivisions 
84.27 	2 and 2a, the agency may issue up to $10,000,000 $13,000,000 of housing infrastructure 
84.28 	bonds in one or more series to which the payments made under this section may be pledged.

85.1 	Sec. 19. Minnesota Statutes 2016, section 462A.37, is amended by adding a subdivision 
85.2 	to read:
85.3 		Subd. 2c.Additional authorization. In addition to the amount authorized in subdivisions 
85.4 	2, 2a, and 2b, the agency may issue up to $70,000,000 in housing infrastructure bonds in 
85.5 	one or more series to which the payments under this section may be pledged.

85.6 	Sec. 20. Minnesota Statutes 2016, section 462A.37, subdivision 5, is amended to read:
85.7 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
85.8 	commissioner of management and budget the actual amount of annual debt service on each 
85.9 	series of bonds issued under subdivisions 2a and, 2b, and 2c.
85.10 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
85.11 	bonds issued under subdivision 2a remain outstanding, the commissioner of management 
85.12 	and budget must transfer to the housing infrastructure bond account established under section 
85.13 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 
85.14 	annually. The amounts necessary to make the transfers are appropriated from the general 
85.15 	fund to the commissioner of management and budget.
85.16 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
85.17 	bonds issued under subdivision 2b remain outstanding, the commissioner of management 
85.18 	and budget must transfer to the housing infrastructure bond account established under section 
85.19 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 
85.20 	annually. The amounts necessary to make the transfers are appropriated from the general 
85.21 	fund to the commissioner of management and budget.
85.22 	(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure 
85.23 	bonds issued under subdivision 2c remain outstanding, the commissioner of management 
85.24 	and budget must transfer to the housing infrastructure bond account established under section 
85.25 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,500,000 
85.26 	in fiscal year 2018 and $5,000,000 annually thereafter. The amounts necessary to make the 
85.27 	transfers are appropriated from the general fund to the commissioner of management and 
85.28 	budget.
85.29 	(d) (e) The agency may pledge to the payment of the housing infrastructure bonds the 
85.30 	payments to be made by the state under this section.

85.31 	Sec. 21. Laws 2015, chapter 75, article 1, section 3, subdivision 3, is amended to read:

85.32	Subd. 3.State Roads

86.1	(a) Operations and Maintenance
		288,405,000
		290,916,000
	
86.2 	The base appropriation in fiscal year 2018 is 
86.3 	$292,140,000 and in fiscal year 2019 is 
86.4 	$301,545,000.

86.5	(b) Program Planning and Delivery
		237,529,000
		231,252,000
	
86.6 	$130,000 in each year is available for 
86.7 	administrative costs of the targeted group 
86.8 	business program.
86.9 	$266,000 in each year is available for grants 
86.10 	to metropolitan planning organizations outside 
86.11 	the seven-county metropolitan area.
86.12 	$900,000 in each year is available for grants 
86.13 	for transportation studies outside the 
86.14 	metropolitan area to identify critical concerns, 
86.15 	problems, and issues. These grants are 
86.16 	available: (1) to regional development 
86.17 	commissions; (2) in regions where no regional 
86.18 	development commission is functioning, to 
86.19 	joint powers boards established under 
86.20 	agreement of two or more political 
86.21 	subdivisions in the region to exercise the 
86.22 	planning functions of a regional development 
86.23 	commission; and (3) in regions where no 
86.24 	regional development commission or joint 
86.25 	powers board is functioning, to the 
86.26 	department's district office for that region.
86.27 	$1,000,000 in each year is available for 
86.28 	management of contaminated and regulated 
86.29 	material on property owned by the Department 
86.30 	of Transportation, including mitigation of 
86.31 	property conveyances, facility acquisition or 
86.32 	expansion, chemical release at maintenance 
86.33 	facilities, and spills on the trunk highway 
86.34 	system where there is no known responsible 
87.1 	party. If the appropriation for either year is 
87.2 	insufficient, the appropriation for the other 
87.3 	year is available for it.
87.4 	$6,804,000 in the first year and $1,000,000 in 
87.5 	the second year are available for the purposes 
87.6 	stated in Minnesota Statutes, section 12A.16, 
87.7 	subdivision 2.
87.8 	The base appropriation for program planning 
87.9 	and delivery in fiscal year 2018 is 
87.10 	$227,004,000 and in fiscal year 2019 is 
87.11 	$234,331,000.

87.12	(c) State Road Construction
		779,664,000
		744,166,000
	
87.13 	This appropriation is for the actual 
87.14 	construction, reconstruction, and improvement 
87.15 	of trunk highways, including design-build 
87.16 	contracts, internal department costs associated 
87.17 	with delivering the construction program, and 
87.18 	consultant usage to support these activities. 
87.19 	This includes the cost of actual payment to 
87.20 	landowners for lands acquired for highway 
87.21 	rights-of-way, payment to lessees, interest 
87.22 	subsidies, and relocation expenses.
87.23 	$1,000,000 in the first year is to complete 
87.24 	projects using funds made available to the 
87.25 	commissioner of transportation under title XII 
87.26 	of the American Recovery and Reinvestment 
87.27 	Act of 2009, Public Law 111-5, and 
87.28 	implemented under Minnesota Statutes, 
87.29 	section 161.36, subdivision 7.
87.30 	$10,000,000 in each year is for the 
87.31 	transportation economic development program 
87.32 	under Minnesota Statutes, section 174.12.
87.33 	The commissioner may expend up to one-half 
87.34 	of one percent of the federal appropriations 
88.1 	under this paragraph as grants to opportunity 
88.2 	industrialization centers and other nonprofit 
88.3 	job training centers for job training programs 
88.4 	related to highway construction.
88.5 	The commissioner may transfer up to 
88.6 	$15,000,000 each year to the transportation 
88.7 	revolving loan fund.
88.8 	The commissioner may receive money 
88.9 	covering other shares of the cost of partnership 
88.10 	projects. These receipts are appropriated to 
88.11 	the commissioner for these projects.
88.12 	The base appropriation for state road 
88.13 	construction in each of fiscal years 2018 and 
88.14 	2019 is $695,800,000.

88.1688.15
	(d) Highway Debt Service
		197,381,000
		231,199,000
234,386,000
	
88.17 	$187,881,000 the first year and $221,699,000
88.18 	$224,886,000 the second year are for transfer 
88.19 	to the state bond fund. If this appropriation is 
88.20 	insufficient to make all transfers required in 
88.21 	the year for which it is made, the 
88.22 	commissioner of management and budget shall 
88.23 	transfer the deficiency amount under the 
88.24 	statutory open appropriation, and notify the 
88.25 	chairs and ranking minority members of the 
88.26 	legislative committees with jurisdiction over 
88.27 	transportation finance and the chairs of the 
88.28 	senate Committee on Finance and the house 
88.29 	of representatives Committee on Ways and 
88.30 	Means of the amount of the deficiency. Any 
88.31 	excess appropriation cancels to the trunk 
88.32 	highway fund.

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

88.34	Appropriations by Fund
	
88.35		2016
	2017
	
89.1	General
	35,000
	3,000
	
89.2	Trunk Highway
	5,323,000
	5,483,000
	
89.3 	$3,000 in each year is from the general fund 
89.4 	to equip and operate the Roosevelt signal 
89.5 	tower for Lake of the Woods weather 
89.6 	broadcasting.
89.7 	$32,000 in the first year is from the general 
89.8 	fund for a weather transmitter in Lake of the 
89.9 	Woods County.
89.10 	The base appropriation from the trunk 
89.11 	highway fund in fiscal year 2018 is $5,645,000 
89.12 	and in fiscal year 2019 is $5,826,000.

89.13 	Sec. 22. REVISOR'S INSTRUCTION.
 89.14 	In Minnesota Statutes, sections 123A.44, 123A.441, 123A.482, 123A.64, and 123A.065, 
89.15 	the revisor of statutes shall replace the range reference "sections 123A.44 to 123A.446" 
89.16 	with "sections 123A.44 to 123A.445."

89.17 	Sec. 23.  REPEALER.
 89.18 	Minnesota Statutes 2016, section 123A.446, is repealed.

89.19 	Sec. 24. EFFECTIVE DATE.
 89.20 	Except as otherwise provided, this article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 17-1141 

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.