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 15B.32, 
1.7 	subdivision 4; 16A.967; 84.946, subdivision 2; 85.015, subdivision 6; 85.34, 
1.8 	subdivision 1; 116J.8738, subdivisions 2, 3; 174.50, subdivisions 5, 6b, 6c, 7, by 
1.9 	adding a subdivision; 326B.124; 446A.072; 446A.073; 446A.081, subdivision 9; 
1.10 	446A.12, subdivision 1; 462A.37, subdivisions 2a, 2b, 5, by adding a subdivision; 
1.11 	Laws 2006, chapter 258, section 18, subdivision 6, as amended; Laws 2012, chapter 
1.12 	293, sections 7, subdivision 3; 17, subdivision 4; Laws 2014, chapter 294, article 
1.13 	1, sections 7, subdivisions 11, 15; 17, subdivisions 6, 12; Laws 2015, First Special 
1.14 	Session chapter 5, article 1, section 10, subdivisions 3, 7; proposing coding for 
1.15 	new law in Minnesota Statutes, chapters 16C; 219; repealing Minnesota Statutes 
1.16 	2016, section 123A.446.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	APPROPRIATIONS

1.20	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.21 	The sums shown in the column under "Appropriations" are appropriated from the bond 
1.22 	proceeds fund, or another named fund, to the state agencies or officials indicated, to be 
1.23 	spent for public purposes. Appropriations of bond proceeds must be spent as authorized by 
1.24 	the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public 
1.25 	land and buildings and other public improvements of a capital nature, or as authorized by 
1.26 	the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless 
1.27 	otherwise specified, money appropriated in this article for a capital program or project may 
1.28 	be used to pay state agency staff costs that are attributed directly to the capital program or 
2.1 	project in accordance with accounting policies adopted by the commissioner of management 
2.2 	and budget. Unless otherwise specified, the appropriations in this act are available until the 
2.3 	project is completed or abandoned subject to Minnesota Statutes, section 16A.642. Unless 
2.4 	otherwise specified in this article, money appropriated in this article for activities under 
2.5 	Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, should not be used for projects 
2.6 	that can be financed within a reasonable time frame under Minnesota Statutes, section 
2.7 	16B.322 or 16C.144.

2.8						APPROPRIATIONS

2.9	Sec. 2. UNIVERSITY OF MINNESOTA

2.10	Subdivision 1.Total Appropriation
 			$
	119,934,000
	
2.11 	To the Board of Regents of the University of 
2.12 	Minnesota for the purposes specified in this 
2.13 	section.

2.14
2.15	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				20,600,000
	
2.16 	To be spent in accordance with Minnesota 
2.17 	Statutes, section 135A.046.

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

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

2.32
2.33	Subd. 5.Twin Cities - Plant Growth Research 
Facility
 				4,400,000
	
3.1 	To demolish the existing biological sciences 
3.2 	greenhouse and to predesign, design, 
3.3 	construct, furnish, and equip a greenhouse to 
3.4 	support learning and research on the St. Paul 
3.5 	campus.

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

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

3.29
3.30	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

3.31	Subdivision 1.Total Appropriation
 			$
	92,325,000
	
3.32 	To the Board of Trustees of the Minnesota 
3.33 	State Colleges and Universities for the 
3.34 	purposes specified in this section.

4.1
4.2	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				25,000,000
	
4.3 	To be spent in accordance with Minnesota 
4.4 	Statutes, section 135A.046.

4.5	Subd. 3.Hibbing Community College
 				11,223,000
	
4.6 	To demolish Building G and connecting links 
4.7 	or portions thereof, and to construct, renovate, 
4.8 	furnish, and equip buildings, links, and entry 
4.9 	spaces on the campus.

4.10
4.11	Subd. 4.Minnesota State Community and 
Technical College

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

4.24	(b) Wadena Campus
				820,000
	
4.25 	To design, renovate, furnish, and equip the 
4.26 	relocation of the current library to 
4.27 	underutilized space and convert the vacated 
4.28 	space into a centralized student services center.

4.29
4.30	Subd. 5.Northland Community and Technical 
College, East Grand Forks
 				826,000
	
4.31 	To design, renovate, furnish, and equip science 
4.32 	and radiological lab space on the East Grand 
4.33 	Forks campus.

4.34	Subd. 6.South Central College, North Mankato
 				9,600,000
	
5.1 	To design, renovate, renew, furnish, and equip 
5.2 	laboratory, classroom, and office spaces on 
5.3 	the North Mankato campus.

5.4	Subd. 7.St. Cloud State University
 				18,572,000
	
5.5 	To construct, renovate, furnish, and equip 
5.6 	Eastman Hall for the relocation of 
5.7 	consolidated student health services and 
5.8 	academic programs.

5.95.10
	Subd. 8.Winona State University, Education 
Village, Phase 2
 				25,306,000
	
5.11 	To complete design, construct, renovate, 
5.12 	furnish, and equip Phase 2 of the Education 
5.13 	Village project, including the renovation of 
5.14 	Cathedral and Wabasha Halls and Wabasha 
5.15 	Rec, and remove obsolete portions of Wabasha 
5.16 	Rec and accomplishing related site work.

5.17	Subd. 9.Debt Service
 					
5.18 	(a) Except as provided in paragraph (b), the 
5.19 	Board of Trustees shall pay the debt service 
5.20 	on one-third of the principal amount of state 
5.21 	bonds sold to finance projects authorized by 
5.22 	this section. After each sale of general 
5.23 	obligation bonds, the commissioner of 
5.24 	management and budget shall notify the board 
5.25 	of the amounts assessed for each year for the 
5.26 	life of the bonds.
5.27 	(b) The board need not pay debt service on 
5.28 	bonds sold to finance HEAPR. Where a 
5.29 	nonstate match is required, the debt service is 
5.30 	due on a principal amount equal to one-third 
5.31 	of the total project cost, less the match 
5.32 	committed before the bonds are sold.
5.33 	(c) The commissioner of management and 
5.34 	budget shall reduce the board's assessment 
6.1 	each year by one-third of the net income from 
6.2 	investment of general obligation bond 
6.3 	proceeds in proportion to the amount of 
6.4 	principal and interest otherwise required to be 
6.5 	paid by the board. The board shall pay its 
6.6 	resulting net assessment to the commissioner 
6.7 	of management and budget by December 1 
6.8 	each year. If the board fails to make a payment 
6.9 	when due, the commissioner of management 
6.10 	and budget shall reduce allotments for 
6.11 	appropriations from the general fund otherwise 
6.12 	available to the board and apply the amount 
6.13 	of the reduction to cover the missed debt 
6.14 	service payment. The commissioner of 
6.15 	management and budget shall credit the 
6.16 	payments received from the board to the bond 
6.17 	debt service account in the state bond fund 
6.18 	each December 1 before money is transferred 
6.19 	from the general fund under Minnesota 
6.20 	Statutes, section 16A.641, subdivision 10.

6.21	Subd. 10.Unspent Appropriations
 					
6.22 	(a) Upon substantial completion of a project 
6.23 	authorized in this section and after written 
6.24 	notice to the commissioner of management 
6.25 	and budget, the board must use any money 
6.26 	remaining in the appropriation for that project 
6.27 	for HEAPR under Minnesota Statutes, section 
6.28 	135A.046. The Board of Trustees must report 
6.29 	by February 1 of each even-numbered year to 
6.30 	the chairs of the house of representatives and 
6.31 	senate committees with jurisdiction over 
6.32 	capital investment and higher education 
6.33 	finance, and to the chairs of the house of 
6.34 	representatives Ways and Means Committee 
6.35 	and the senate Finance Committee, on how 
7.1 	the remaining money has been allocated or 
7.2 	spent.
7.3 	(b) The unspent portion of an appropriation 
7.4 	for a project in this section that is complete is 
7.5 	available for HEAPR under this subdivision, 
7.6 	at the same campus as the project for which 
7.7 	the original appropriation was made and the 
7.8 	debt service requirement under this section is 
7.9 	reduced accordingly. Minnesota Statutes, 
7.10 	section 16A.642, applies from the date of the 
7.11 	original appropriation to the unspent amount 
7.12 	transferred.

7.13	Sec. 4. EDUCATION

7.14	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
7.15 	To the commissioner of education for the 
7.16 	purposes specified in this section.

7.17	Subd. 2.Library Construction Grants
 				2,000,000
	
7.18 	For library construction grants under 
7.19 	Minnesota Statutes, section 134.45.

7.20
7.21	Subd. 3.Olmsted County - Dyslexia Institute of 
Minnesota
 				1,500,000
	
7.22 	For a grant to Olmsted County to acquire land 
7.23 	for, and to predesign, design, construct, 
7.24 	furnish, and equip a facility in Olmsted County 
7.25 	to support the local, regional, and national 
7.26 	literacy work of the Dyslexia Institute of 
7.27 	Minnesota, subject to Minnesota Statutes, 
7.28 	section 16A.695. This appropriation is not 
7.29 	available until the commissioner of 
7.30 	management and budget determines that an 
7.31 	amount sufficient to complete the project is 
7.32 	committed to it from nonstate sources.

7.33	Subd. 4.Grand Rapids - Myles Reif Center
 				500,000
	
8.1 	From the general fund for a grant to 
8.2 	Independent School District No. 318, Grand 
8.3 	Rapids, to cover cost overruns for the Myles 
8.4 	Reif Center for the Performing Arts project in 
8.5 	Grand Rapids. This appropriation is added to 
8.6 	and is for the same purposes as the project in 
8.7 	Laws 2014, chapter 294, article 1, section 21, 
8.8 	subdivision 8. This appropriation does not 
8.9 	require a nonstate contribution.

8.10	Sec. 5. MINNESOTA STATE ACADEMIES

8.11	Subdivision 1.Total Appropriation
 			$
	2,050,000
	
8.12 	To the commissioner of administration for the 
8.13 	purposes specified in this section.

8.14	Subd. 2.Asset Preservation
 				2,000,000
	
8.15 	For capital asset preservation improvements 
8.16 	and betterments on both campuses of the 
8.17 	Minnesota State Academies, to be spent in 
8.18 	accordance with Minnesota Statutes, section 
8.19 	16B.307.

8.20	Subd. 3.Security Corridor
 				50,000
	
8.21 	For predesign for a safety corridor on the 
8.22 	Minnesota State Academy for the Deaf 
8.23 	campus.

8.24	Sec. 6. NATURAL RESOURCES

8.25	Subdivision 1.Total Appropriation
 			$
	67,853,000
	
8.26 	(a) To the commissioner of natural resources 
8.27 	for the purposes specified in this section.
8.28 	(b) The appropriations in this section are 
8.29 	subject to the requirements of the natural 
8.30 	resources capital improvement program under 
8.31 	Minnesota Statutes, section 86A.12, unless 
8.32 	this section or the statutes referred to in this 
9.1 	section provide more specific standards, 
9.2 	criteria, or priorities for projects than 
9.3 	Minnesota Statutes, section 86A.12.

9.4	Subd. 2.Natural Resources Asset Preservation
 				15,000,000
	
9.5 	For the renovation of state-owned facilities 
9.6 	and recreational assets operated by the 
9.7 	commissioner of natural resources to be spent 
9.8 	in accordance with Minnesota Statutes, section 
9.9 	84.946. Notwithstanding Minnesota Statutes, 
9.10 	section 84.946:
9.11 	(1) the commissioner may use this 
9.12 	appropriation to replace buildings if, 
9.13 	considering the embedded energy in the 
9.14 	building, that is the most energy-efficient and 
9.15 	carbon-reducing method of renovation; and
9.16 	(2) this appropriation may be used for projects 
9.17 	to remove life safety hazards such as building 
9.18 	code violations or structural defects.

9.19	Subd. 3.Flood Hazard Mitigation
 				11,555,000
	
9.20 	(a) For the state share of flood hazard 
9.21 	mitigation grants for publicly owned capital 
9.22 	improvements to prevent or alleviate flood 
9.23 	damage under Minnesota Statutes, section 
9.24 	103F.161.
9.25 	(b) Levee projects, to the extent practical, shall 
9.26 	meet the state standard of three feet above the 
9.27 	100-year flood elevation.
9.28 	(c) Project priorities shall be determined by 
9.29 	the commissioner as appropriate and based on 
9.30 	need.
9.31 	(d) This appropriation includes $1,700,000 for 
9.32 	the Cedar River Watershed District, $750,000 
10.1 	for the city of Browns Valley project, and 
10.2 	$1,800,000 for the city of Ortonville project.
10.3 	(e) For any project listed in this subdivision 
10.4 	that the commissioner determines is not ready 
10.5 	to proceed or does not expend all the money 
10.6 	allocated to it, the commissioner may allocate 
10.7 	that project's money to a project on the 
10.8 	commissioner's priority list.
10.9 	(f) To the extent that the cost of a project 
10.10 	exceeds two percent of the median household 
10.11 	income in a municipality or township 
10.12 	multiplied by the number of households in the 
10.13 	municipality or township, this appropriation 
10.14 	is also for the local share of the project.

10.15	Subd. 4.Dam Renovation, Repair, Removal
 				15,400,000
	
10.16 	(a) For design, engineering, and construction 
10.17 	to repair, reconstruct, or remove dams and 
10.18 	respond to dam safety emergencies. The 
10.19 	commissioner shall determine project priorities 
10.20 	as appropriate under Minnesota Statutes, 
10.21 	sections 103G.511 and 103G.515. Of this 
10.22 	appropriation:
10.23 	(1) $500,000 is for emergencies on 
10.24 	state-owned dams;
10.25 	(2) $4,000,000 is for a grant to the city of 
10.26 	Lanesboro for repair of the Lanesboro dam 
10.27 	and notwithstanding the match requirements 
10.28 	in Minnesota Statutes, section 103G.511, does 
10.29 	not require a nonstate contribution. This 
10.30 	includes funding for repairs of the hydropower 
10.31 	system;
10.32 	(3) $2,500,000 is for repairs to the Lake 
10.33 	Bronson dam;
11.1 	(4) $500,000 is for a grant to the city of 
11.2 	Pelican Rapids for engineering work on the 
11.3 	Pelican Rapids dam;
11.4 	(5) $200,000 is for a grant to the city of Pine 
11.5 	River for engineering work on the Norway 
11.6 	Lake dam;
11.7 	(6) $200,000 is for a grant to Yellow Medicine 
11.8 	County for the Canby R-6 impoundment dam;
11.9 	(7) $100,000 is for a grant to St. Louis County 
11.10 	for the Little Stone Lake dam;
11.11 	(8) $6,000,000 is for a grant to Dakota County 
11.12 	to design and construct capital improvements 
11.13 	to the hydroelectric generating facility, 
11.14 	including replacement of obsolete turbines, at 
11.15 	the Byllesby Dam located on the Cannon 
11.16 	River; and
11.17 	(9) $1,400,000 is for state dams at Brawner, 
11.18 	West Leaf Lake, Collinwood, Grindstone 
11.19 	River, and Sullivan.
11.20 	(b) If the commissioner determines that a 
11.21 	project is not ready to proceed, this 
11.22 	appropriation may be used for other projects 
11.23 	on the commissioner's priority list.

11.24	Subd. 5.Reforestation and Stand Improvement
 				1,000,000
	
11.25 	To provide for reforestation and stand 
11.26 	improvement on state forest lands to meet the 
11.27 	reforestation requirements of Minnesota 
11.28 	Statutes, section 89.002, subdivision 2, 
11.29 	including purchasing native seeds and native 
11.30 	seedlings, planting, seeding, site preparation, 
11.31 	and protection on state lands administered by 
11.32 	the commissioner.

11.33
11.34	Subd. 6.State Trail, Recreation Area, and Park 
Acquisition and Development
 				18,698,000
	
12.1 	(a) $2,590,000 is for the Glacial Lakes Trail, 
12.2 	to complete an approximately 6-1/4 mile trail 
12.3 	connection between New London and Sibley 
12.4 	State Park, and repair of the bicycle trail in 
12.5 	Sibley State Park.
12.6 	(b) $3,300,000 is to design, develop, and 
12.7 	complete the Heartland State Trail from 
12.8 	Detroit Lakes to Frazee and, to the extent there 
12.9 	is sufficient money, for work on the spur from 
12.10 	Park Rapids to Itasca State Park.
12.11 	(c) $3,600,000 is for acquisition and 
12.12 	development in the Cuyuna Country State 
12.13 	Recreation Area, including the Cuyuna 
12.14 	Mountain Bike System.
12.15 	(d) $1,600,000 is to construct, furnish, and 
12.16 	equip a multiuse state trail connection between 
12.17 	the city of Little Falls and the Soo Line Trails 
12.18 	as part of the Camp Ripley/Veterans State 
12.19 	Trail in Morrison County. The trail connection 
12.20 	may include separated segments to 
12.21 	accommodate recreational vehicles separately 
12.22 	from nonmotorized vehicles and pedestrians.
12.23 	(e) $3,500,000 is for continued development 
12.24 	of Lake Vermilion-Soudan Underground Mine 
12.25 	State Park recreational facilities.
12.26 	(f) $978,000 is for design and acquisition of 
12.27 	the Mill Towns State Trail from Faribault to 
12.28 	Northfield and for development of the spur 
12.29 	from Sakatah Singing Hills Trail to the White 
12.30 	Sands Trail Head.
12.31 	(g) $3,130,000 is for acquisition and 
12.32 	development of the Gitchi-Gami State Trail, 
12.33 	from Grand Marais to Cascade State Park, and 
12.34 	through the town of Tofte.
13.1 	(h) The commissioner may allocate money 
13.2 	not needed to complete a project listed in this 
13.3 	subdivision to another project listed in this 
13.4 	subdivision that needs additional money to be 
13.5 	completed. For any project listed in this 
13.6 	subdivision that the commissioner determines 
13.7 	is not ready to proceed, the commissioner may 
13.8 	reallocate that project's money to another 
13.9 	project described in this subdivision or other 
13.10 	state trail, recreation area, or park 
13.11 	infrastructure. The chairs of the house of 
13.12 	representatives and senate committees with 
13.13 	jurisdiction over environment and natural 
13.14 	resources and legislators from the affected 
13.15 	legislative districts must be notified of any 
13.16 	changes.

13.17	Subd. 7.Champlin - Mill Pond
 				3,300,000
	
13.18 	For a grant to the city of Champlin to dredge 
13.19 	and remove sediment and for other capital 
13.20 	improvements to the Champlin Mill Pond 
13.21 	necessary to improve water quality, restore 
13.22 	fish habitat, and provide other public benefits.

13.23
13.24	Subd. 8.Lake County - Prospectors ATV Trail 
System
 				1,000,000
	
13.25 	For a grant to Lake County for construction, 
13.26 	including bridges, of the Prospectors ATV 
13.27 	Trail System linking the communities of Ely, 
13.28 	Babbitt, Embarrass, and Tower; Bear Head 
13.29 	Lake and Lake Vermilion-Soudan 
13.30 	Underground Mine State Parks; the Taconite 
13.31 	State Trail; and the Lake County Regional 
13.32 	ATV Trail System. This appropriation is not 
13.33 	available until the commissioner of 
13.34 	management and budget determines that an 
13.35 	equal amount is committed from other sources.

14.1
14.2	Subd. 9.Morrison County - Soo Line Trail 
Bridge
 				400,000
	
14.3 	For a grant to Morrison County to predesign, 
14.4 	design, and construct the rehabilitation of the 
14.5 	Soo Line Trail bridge over the Mississippi 
14.6 	River, including specifically the bridge's piers 
14.7 	and abutments. This appropriation does not 
14.8 	require a nonstate match.

14.9	Subd. 10.St. Paul - Shade Tree Reforestation
 				1,500,000
	
14.10 	For a grant to St. Paul for the planting of 
14.11 	publicly owned shade trees on public land to 
14.12 	provide environmental benefits; replace trees 
14.13 	lost to forest pests, disease, or storm; or to 
14.14 	establish a more diverse community forest 
14.15 	better able to withstand disease and forest 
14.16 	pests. For purposes of this appropriation, 
14.17 	"shade tree" means a woody perennial grown 
14.18 	primarily for aesthetic or environmental 
14.19 	purposes with minimal to residual timber value 
14.20 	and no intent to harvest the tree for its wood. 
14.21 	Any tree planted with funding under this 
14.22 	subdivision must be a species native to 
14.23 	Minnesota.

14.24	Subd. 11.Unspent Appropriations
 					
14.25 	The unspent portion of an appropriation for a 
14.26 	project in this section that is complete, upon 
14.27 	written notice to the commissioner of 
14.28 	management and budget, is available for asset 
14.29 	preservation under Minnesota Statutes, section 
14.30 	84.946. Minnesota Statutes, section 16A.642, 
14.31 	applies from the date of the original 
14.32 	appropriation to the unspent amount 
14.33 	transferred.

14.34	Sec. 7. POLLUTION CONTROL AGENCY

15.1	Subdivision 1.Total Appropriation
 			$
	46,010,000
	
15.2 	To the Pollution Control Agency for the 
15.3 	purposes specified in this section.

15.4	Subd. 2.St. Louis River Cleanup
 				25,410,000
	
15.5 	To design and implement contaminated 
15.6 	sediment management actions identified in 
15.7 	the St. Louis River remedial action plan to 
15.8 	restore water quality in the St. Louis River 
15.9 	Area of Concern.

15.10	Subd. 3.Closed Landfill Cleanup
 				11,350,000
	
15.11 	To design and construct remedial systems and 
15.12 	acquire land at closed landfills throughout the 
15.13 	state in accordance with the closed landfill 
15.14 	program under Minnesota Statutes, sections 
15.15 	115B.39 to 115B.42. The agency must follow 
15.16 	the agency priorities, which includes a 
15.17 	construction project at the waste disposal 
15.18 	engineering (WDE) site in Anoka County.

15.19	Subd. 4.Capital Assistance Program
 				9,250,000
	
15.20 	For a grant to Polk County under the solid 
15.21 	waste capital assistance grant program under 
15.22 	Minnesota Statutes, section 115A.54, in order 
15.23 	to complete a regional integrated solid waste 
15.24 	management system.

15.25
15.26	Sec. 8. BOARD OF WATER AND SOIL 
RESOURCES

15.27	Subdivision 1.Total Appropriation
 			$
	15,000,000
	
15.28 	To the Board of Water and Soil Resources for 
15.29 	the purposes specified in this section.

15.30
15.31	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				10,000,000
	
15.32 	(a) To acquire conservation easements from 
15.33 	landowners to preserve, restore, create, and 
16.1 	enhance wetlands and associated uplands of 
16.2 	prairie and grasslands, and restore and enhance 
16.3 	rivers and streams, riparian lands, and 
16.4 	associated uplands of prairie and grasslands 
16.5 	in order to protect soil and water quality, 
16.6 	support fish and wildlife habitat, reduce flood 
16.7 	damage, and provide other public benefits. 
16.8 	The provisions of Minnesota Statutes, section 
16.9 	103F.515, apply to this program.
16.10 	(b) The board shall give priority to leveraging 
16.11 	federal money by enrolling targeted new lands 
16.12 	or enrolling environmentally sensitive lands 
16.13 	that have expiring federal conservation 
16.14 	agreements.
16.15 	(c) The board is authorized to enter into new 
16.16 	agreements and amend past agreements with 
16.17 	landowners as required by Minnesota Statutes, 
16.18 	section 103F.515, subdivision 5, to allow for 
16.19 	restoration. Of this appropriation, up to five 
16.20 	percent may be used for restoration and 
16.21 	enhancement.

16.22
16.23	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				5,000,000
	
16.24 	To acquire land or permanent easements and 
16.25 	to restore, create, enhance, and preserve 
16.26 	wetlands to replace those wetlands drained or 
16.27 	filled as a result of the repair, reconstruction, 
16.28 	replacement, or rehabilitation of existing 
16.29 	public roads as required by Minnesota 
16.30 	Statutes, section 103G.222, subdivision 1, 
16.31 	paragraphs (l) and (m). The board may vary 
16.32 	the priority order of Minnesota Statutes, 
16.33 	section 103G.222, subdivision 3, paragraph 
16.34 	(a), to implement an in-lieu fee agreement 
16.35 	approved by the U.S. Army Corps of 
17.1 	Engineers under section 404 of the Clean 
17.2 	Water Act. The purchase price paid for 
17.3 	acquisition of land or perpetual easement must 
17.4 	be a fair market value as determined by the 
17.5 	board. The board may enter into agreements 
17.6 	with the federal government, other state 
17.7 	agencies, political subdivisions, nonprofit 
17.8 	organizations, fee title owners, or other 
17.9 	qualified private entities to acquire wetland 
17.10 	replacement credits in accordance with 
17.11 	Minnesota Rules, chapter 8420.
17.12 	Up to $560,000 of this appropriation may be 
17.13 	spent to replace wetlands drained or filled that 
17.14 	are associated with a new public road project 
17.15 	to improve public safety in a greater than 80 
17.16 	percent area, as defined in Minnesota Statutes, 
17.17 	section 103G.005, subdivision 10b.

17.18	Sec. 9. AGRICULTURE

17.19	Subdivision 1.Total Appropriations
 			$
	270,000
	
17.20 	To the commissioner of agriculture for the 
17.21 	purposes specified in this section.

17.22	Subd. 2.AURI
 				270,000
	
17.23 	From the general fund for a grant to 
17.24 	Agricultural Utilization Research Institute 
17.25 	(AURI) for construction of a development 
17.26 	kitchen, sensory lab, and safety and security 
17.27 	upgrades at AURI's Marshall facility and for 
17.28 	updated equipment and renovations at the 
17.29 	Waseca facility.

17.30
17.31	Sec. 10. MINNESOTA ZOOLOGICAL 
GARDEN

17.32	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
18.1 	To the Minnesota Zoological Garden Board 
18.2 	for the purposes specified in this section.

18.3	Subd. 2.Asset Preservation
 				4,000,000
	
18.4 	For capital asset preservation improvements 
18.5 	and betterments to infrastructure and exhibits 
18.6 	at the Minnesota Zoo, to be spent in 
18.7 	accordance with Minnesota Statutes, section 
18.8 	16B.307. Notwithstanding the specified uses 
18.9 	of money under Minnesota Statutes, section 
18.10 	16B.307, the board may use this appropriation 
18.11 	to replace buildings that are in poor condition, 
18.12 	outdated, and no longer support the work of 
18.13 	the Minnesota Zoo and to construct and 
18.14 	renovate trails and roads on the Minnesota 
18.15 	Zoo site.

18.16	Sec. 11. ADMINISTRATION

18.17	Subdivision 1.Total Appropriation
 			$
	18,178,000
	
18.18 	To the commissioner of administration for the 
18.19 	purposes specified in this section.

18.20	Subd. 2.Centennial Parking Ramp
 				10,878,000
	
18.21 	(a) To complete design and for structural 
18.22 	repairs to the Centennial parking ramp, 
18.23 	including removal of the top deck green space 
18.24 	to provide additional parking capacity, 
18.25 	repairing damaged post-tension cables, and 
18.26 	installation of a deck surface protection 
18.27 	coating.
18.28 	(b) Any unexpended amount of this 
18.29 	appropriation after completing the project in 
18.30 	paragraph (a) may be used to design and 
18.31 	construct a storm water retention basin 
18.32 	adjacent to the Centennial parking ramp, if the 
19.1 	commissioner of administration determines 
19.2 	that the basin is feasible.

19.3
19.4	Subd. 3.Capital Asset Preservation and 
Replacement Account
 				5,000,000
	
19.5 	To be spent in accordance with Minnesota 
19.6 	Statutes, section 16A.632.

19.7	Subd. 4.Granite Falls - Pioneer Public Television
 				1,950,000
	
19.8 	From the general fund to provide an equipment 
19.9 	grant to Pioneer Public Television as part of 
19.10 	the station's construction of a new facility in 
19.11 	Granite Falls, Minnesota. The money may be 
19.12 	used to purchase and install equipment 
19.13 	necessary to the station's operation. This 
19.14 	appropriation does not require a nonstate 
19.15 	contribution.

19.16
19.17	Subd. 5.Capitol Complex Monuments and 
Memorials
 				350,000
	
19.18 	To design and complete critical repairs to the 
19.19 	Peace Officers Memorial located on the 
19.20 	Capitol complex.

19.21	Sec. 12. MN.IT
 			$
	$1,432,000
	
19.22 	To the commissioner of administration to 
19.23 	predesign, design, construct, renovate, furnish, 
19.24 	and equip existing state data center facilities 
19.25 	at the Bureau of Criminal Apprehension's 
19.26 	Maryland Avenue office building, at the 
19.27 	Centennial Office Building, and at the 
19.28 	Department of Revenue's Stassen Office 
19.29 	Building for the purpose of decommissioning 
19.30 	and repurposing into usable office space.

19.31	Sec. 13. MILITARY AFFAIRS

19.32	Subdivision 1. Total Appropriation
 			$
	2,500,000
	
20.1 	To the adjutant general for the purposes 
20.2 	specified in this section.

20.3	Subd. 2.Asset Preservation
 				2,500,000
	
20.4 	For asset preservation improvements and 
20.5 	betterments of a capital nature at military 
20.6 	affairs facilities statewide, to be spent in 
20.7 	accordance with Minnesota Statutes, section 
20.8 	16B.307.

20.9	Sec. 14. PUBLIC SAFETY

20.10	Subdivision 1.Total Appropriation
 			$
	3,521,000
	
20.11 	To the named official for the purposes 
20.12 	specified in this section.

20.13	Subd. 2.Camp Ripley Training Facility
 				3,521,000
	
20.14 	To the adjutant general to predesign, design, 
20.15 	construct, and equip a joint emergency railroad 
20.16 	and pipeline emergency response training 
20.17 	facility at Camp Ripley. The project includes 
20.18 	construction of stations and capital 
20.19 	infrastructure needed for mock disaster 
20.20 	training, including infrastructure for training 
20.21 	in hazardous materials abatement and site 
20.22 	recovery work.

20.23	Sec. 15. TRANSPORTATION

20.24	Subdivision 1.Total Appropriation
 			$
	256,570,000
	
20.25 	To the commissioner of transportation for the 
20.26 	purposes specified in this section.

20.27
20.28	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				49,212,000
	
20.29 	From the bond proceeds account in the state 
20.30 	transportation fund to match federal money 
20.31 	and to replace or rehabilitate local deficient 
21.1 	bridges as provided in Minnesota Statutes, 
21.2 	section 174.50.
21.3 	$31,875,000 of this appropriation is for a grant 
21.4 	under Minnesota Statutes, section 174.50, 
21.5 	subdivision 6d, to the city of Minneapolis to 
21.6 	repair and rehabilitate the bridge over the 
21.7 	Mississippi River that is aligned on the east 
21.8 	side of the river with 10th Avenue, also 
21.9 	designated Route 328, on the municipal 
21.10 	state-aid system. This appropriation does not 
21.11 	require a local match.
21.12 	$800,000 of this appropriation is for a grant 
21.13 	to the city of Isle for demolition and 
21.14 	construction necessary to replace the Malone 
21.15 	Island Bridge, including the replacement of 
21.16 	accompanying water and sewer lines.

21.17	Subd. 3.Local Road Improvement Fund Grants
 				116,332,000
	
21.18 	(a) From the bond proceeds account in the 
21.19 	state transportation fund as provided in 
21.20 	Minnesota Statutes, section 174.50, for trunk 
21.21 	highway corridor projects under Minnesota 
21.22 	Statutes, section 174.52, subdivision 2, for 
21.23 	construction and reconstruction of local roads 
21.24 	with statewide or regional significance under 
21.25 	Minnesota Statutes, section 174.52, 
21.26 	subdivision 4, or for grants to counties to assist 
21.27 	in paying the costs of rural road safety capital 
21.28 	improvement projects on county state-aid 
21.29 	highways under Minnesota Statutes, section 
21.30 	174.52, subdivision 4a.
21.31 	(b) Of this amount, $9,000,000 is for a grant 
21.32 	to Anoka County to realign and make 
21.33 	associated improvements to County State-Aid 
21.34 	Highway 23 (Lake Drive), County State-Aid 
22.1 	Highway 54 (West Freeway Drive), and to 
22.2 	Hornsby Street in the city of Columbus.
22.3 	(c) Of this amount, $3,246,000 is for a grant 
22.4 	to the city of Blaine to predesign, design, and 
22.5 	reconstruct 105th Avenue in the vicinity of 
22.6 	the National Sports Center in Blaine. The 
22.7 	reconstruction will include changing the street 
22.8 	from five lanes to four lanes with median, turn 
22.9 	lanes, sidewalk, trail, landscaping, lighting, 
22.10 	and consolidation of access driveways. This 
22.11 	appropriation is not available until the 
22.12 	commissioner of management and budget 
22.13 	determines that at least $3,000,000 is 
22.14 	committed to the project from sources 
22.15 	available to the city, including municipal state 
22.16 	aid and county turnback funds.
22.17 	(d) Of this amount, $25,000,000 is for a grant 
22.18 	to Hennepin County, the city of Minneapolis, 
22.19 	or both, for design, right-of-way acquisition, 
22.20 	engineering, and construction of public 
22.21 	improvements related to the Interstate 
22.22 	Highway 35W and Lake Street access project 
22.23 	and related improvements within the Interstate 
22.24 	Highway 35W corridor, notwithstanding any 
22.25 	provision of Minnesota Statutes, section 
22.26 	174.52, or rule to the contrary. This 
22.27 	appropriation is not available until the 
22.28 	commissioner of management and budget 
22.29 	determines that an amount sufficient to 
22.30 	complete this portion of the Interstate 
22.31 	Highway 35W and Lake Street access project 
22.32 	has been committed to this portion of the 
22.33 	project.
22.34 	(e) Of this amount, $10,500,000 is for a grant 
22.35 	to Carver County for environmental analysis 
23.1 	and to acquire right-of-way access, predesign, 
23.2 	design, engineer, and construct an interchange 
23.3 	at marked Trunk Highway 212 and Carver 
23.4 	County Road 44 in the city of Chaska, 
23.5 	including a new bridge and ramps, to support 
23.6 	the development of approximately 400 acres 
23.7 	of property in the city of Chaska's 
23.8 	comprehensive plan.
23.9 	(f) Of this amount, $700,000 is for a grant to 
23.10 	Redwood County for improvements to Nobles 
23.11 	Avenue, including paving, as the main access 
23.12 	road to a new State Veterans Cemetery to be 
23.13 	located in Paxton Township.
23.14 	(g) Of this amount, $1,000,000 is for a grant 
23.15 	to the town of Appleton in Swift County for 
23.16 	upgrades to an existing township road to 
23.17 	provide for a paved, ten-ton capacity township 
23.18 	road extending between marked Trunk 
23.19 	Highways 7 and 119.
23.20 	(h) Of this amount, $20,500,000 is for a grant 
23.21 	to Ramsey County for preliminary and final 
23.22 	design, right-of-way acquisition, engineering, 
23.23 	contract administration, and construction of 
23.24 	public improvements related to the 
23.25 	construction of the interchange of marked 
23.26 	Interstate Highway 694 and Rice Street, 
23.27 	Ramsey County State-Aid Highway 49, in 
23.28 	Ramsey County.
23.29 	(i) Of this amount, $11,300,000 is for a grant 
23.30 	to Hennepin County for preliminary and final 
23.31 	design, engineering, environmental analysis, 
23.32 	right-of-way acquisition, construction, and 
23.33 	reconstruction of local roads related to the (1) 
23.34 	realignment at the intersections of marked U.S. 
23.35 	Highway 12 with Hennepin County State-Aid 
24.1 	Highway 92; (2) realignment and safety 
24.2 	improvements at the intersection of marked 
24.3 	U.S. Highway 12 with Hennepin County 
24.4 	State-Aid Highway 90; and (3) safety median 
24.5 	improvements from the interchange with 
24.6 	Wayzata Boulevard in Wayzata to 
24.7 	approximately one-half mile east of the 
24.8 	interchange of marked U.S. Highway 12 with 
24.9 	Hennepin County State-Aid Highway 6.
24.10 	(j) Of this amount, $1,000,000 is  for a grant 
24.11 	to the city of Inver Grove Heights for 
24.12 	preliminary design, design, engineering, and 
24.13 	reconstruction of Broderick Boulevard 
24.14 	between 80th Street and Concord Boulevard 
24.15 	abutting Trunk Highway 52 and Inver Hills 
24.16 	Community College in Inver Grove Heights. 
24.17 	The project includes replacement or renovation 
24.18 	of public infrastructure, including water lines, 
24.19 	sanitary sewers, storm water sewers, and other 
24.20 	public utilities. This appropriation does not 
24.21 	require a nonstate contribution.
24.22 	(k) Of this amount, $2,350,000 is  for a grant 
24.23 	to McLeod County to acquire land or interests 
24.24 	in land and to design and construct a new 
24.25 	urban street extension of County State-Aid 
24.26 	Highway (CSAH) 15, including railroad 
24.27 	crossing, storm water, and drainage 
24.28 	improvements.

24.29
24.30	Subd. 4.Rail Grade Separation on Crude Oil 
Rail Corridors
 				71,124,000
	
24.31 	(a) Of this amount, $42,262,000 is for a grant 
24.32 	to the city of Moorhead for environmental 
24.33 	analysis, design, engineering, removal of an 
24.34 	existing structure, and construction of a rail 
25.1 	grade crossing separation in the vicinity of 
25.2 	21st Street South.
25.3 	(b) $14,100,000 is for a grant to Anoka County 
25.4 	for environmental analysis, design, 
25.5 	engineering, removal of an existing structure, 
25.6 	and construction of a rail grade crossing 
25.7 	separation at Anoka County State-Aid 
25.8 	Highway 78, known as Hanson Boulevard, in 
25.9 	Coon Rapids. Any unspent portion of the 
25.10 	appropriation under this paragraph may be 
25.11 	used by Anoka County for design costs of 
25.12 	other rail crossings in Anoka County that are 
25.13 	on the commissioner's rail safety priority list.
25.14 	(c) Of this amount, $14,762,000 is for a grant 
25.15 	to the city of Red Wing for environmental 
25.16 	analysis, design, engineering, removal of an 
25.17 	existing structure, and construction of a rail 
25.18 	grade crossing separation at Sturgeon Lake 
25.19 	Road.
25.20 	(d) Any unspent portion of this appropriation 
25.21 	after completion of a project in this 
25.22 	subdivision may be used for grants in 
25.23 	accordance with Minnesota Statutes, section 
25.24 	219.016.

25.25	Subd. 5.Railroad Warning Devices
 				1,000,000
	
25.26 	To design, construct, and equip replacement 
25.27 	of active highway-rail grade warning devices 
25.28 	that have reached the end of their useful life.

25.29	Subd. 6.Rail Service Improvement
 				1,000,000
	
25.30 	For rail service improvement grants under 
25.31 	Minnesota Statutes, section 222.50.

25.32
25.33	Subd. 7.Minnesota Valley Regional Railroad 
Authority
 				4,000,000
	
26.1 	For a grant to the Minnesota Valley Regional 
26.2 	Rail Authority for the rehabilitation of a 
26.3 	portion of the railroad track between Winthrop 
26.4 	and Hanley Falls. The grant under this 
26.5 	subdivision may also be used for any required 
26.6 	environmental documentation and 
26.7 	remediation, predesign, design, and 
26.8 	rehabilitation or replacement of bridges with 
26.9 	new bridges or culverts between Winthrop and 
26.10 	Hanley Falls. A grant under this section is in 
26.11 	addition to any grant, loan, or loan guarantee 
26.12 	for this project made by the commissioner 
26.13 	under Minnesota Statutes, sections 222.46 to 
26.14 	222.62. This appropriation is in addition to 
26.15 	the appropriations in Laws 2006, chapter 258, 
26.16 	section 16, subdivision 6; Laws 2008, chapter 
26.17 	179, section 16, subdivision 5; Laws 2009, 
26.18 	chapter 93, article 1, section 11, subdivision 
26.19 	4; Laws 2010, chapter 189, section 15, 
26.20 	subdivision 5; and Laws 2015, First Special 
26.21 	Session chapter 5, article 1, section 10, 
26.22 	subdivision 4.

26.23	Subd. 8.Hugo - Short Line Railway
 				1,100,000
	
26.24 	For a grant to Minnesota Commercial Railway 
26.25 	for construction of repairs and other capital 
26.26 	improvements to approximately 6.5 miles of 
26.27 	railroad track described as that portion of the 
26.28 	Minnesota Commercial Railway main running 
26.29 	lead, between M & D Junction in White Bear 
26.30 	Lake and the end of the track in Hugo. This 
26.31 	appropriation must be used for the purposes 
26.32 	set forth in the Minnesota Constitution, article 
26.33 	XI, section 5, clause (i), to improve and 
26.34 	rehabilitate railroad rights-of-way and other 
26.35 	rail facilities, whether public or private. This 
27.1 	appropriation does not require a nonstate 
27.2 	match.

27.3	Subd. 9.Port Development Assistance
 				5,000,000
	
27.4 	For grants under Minnesota Statutes, chapter 
27.5 	457A. Any improvements made with the 
27.6 	proceeds of these grants must be publicly 
27.7 	owned.

27.8
27.9	Subd. 10.International Falls-Koochiching 
County Airport Commission
 				3,000,000
	
27.10 	(a) For a grant to the International 
27.11 	Falls-Koochiching County Airport 
27.12 	Commission for the following improvements 
27.13 	to the Falls International Airport:
27.14 	(1) demolition of the existing terminal 
27.15 	building;
27.16 	(2) rehabilitation;
27.17 	(3) site preparation, including utilities and civil 
27.18 	work;
27.19 	(4) design, construction, furnishing, and 
27.20 	equipping Phase II of the new terminal 
27.21 	building, including a Transportation Safety 
27.22 	Administration office, weather office, 
27.23 	conference room, circulation corridor, airport 
27.24 	administration offices, United States Customs 
27.25 	and Border Protection storage rooms, offices, 
27.26 	restrooms, passenger-processing area, 
27.27 	wet-hold room, interview room, search room, 
27.28 	precustoms and postcustoms passenger waiting 
27.29 	areas, and vestibule; and
27.30 	(5) associated appurtenances of a capital 
27.31 	nature.
27.32 	(b) After completion of the improvements 
27.33 	under paragraph (a), any unspent money from 
28.1 	this appropriation may be used by the 
28.2 	International Falls-Koochiching County 
28.3 	Airport Commission for a commercial airline 
28.4 	apron expansion project at the Falls 
28.5 	International Airport.
28.6 	(c) This appropriation does not require a 
28.7 	nonstate contribution or match.

28.8	Subd. 11.Grand Rapids - Pedestrian Bridge
 				750,000
	
28.9 	For a grant to the city of Grand Rapids to 
28.10 	design the construction of a bridge over the 
28.11 	Mississippi River for pedestrian and bicycle 
28.12 	use to provide a safe alternative route to the 
28.13 	existing marked Trunk Highway 169 vehicle 
28.14 	bridge, and to serve as a connection to existing 
28.15 	trail systems on each side of the river. This 
28.16 	appropriation is not available until the 
28.17 	commissioner determines that at least an equal 
28.18 	amount has been committed to the project 
28.19 	from nonstate sources.

28.20	Subd. 12.Safe Routes to School
 				2,652,000
	
28.21 	For grants under Minnesota Statutes, section 
28.22 	174.40.

28.23	Subd. 13.Eden Prairie - Rail Grade Crossings
 				1,400,000
	
28.24 	For a grant to the city of Eden Prairie to (1) 
28.25 	design, construct, and equip new passive and 
28.26 	active rail grade crossing warning safety 
28.27 	devices at existing and proposed highway-rail 
28.28 	grade crossings, or (2) replace existing 
28.29 	highway-rail grade crossings. Upon request 
28.30 	by the city of Eden Prairie, the commissioner 
28.31 	of transportation must provide reasonable 
28.32 	technical assistance regarding highway-rail 
28.33 	grade crossing project development and the 
28.34 	establishment of rail quiet zones.

29.1	Sec. 16. METROPOLITAN COUNCIL

29.2	Subdivision 1.Total Appropriation
 			$
	44,714,000
	
29.3 	To the Metropolitan Council for the purposes 
29.4 	specified in this section.

29.5
29.6	Subd. 2.Metropolitan Regional Parks and Trails 
Capital Improvements
 				5,000,000
	
29.7 	For the cost of improvements and betterments 
29.8 	of a capital nature and acquisition by the 
29.9 	council and local government units of regional 
29.10 	recreational open-space lands in accordance 
29.11 	with the council's policy plan as provided in 
29.12 	Minnesota Statutes, section 473.147. This 
29.13 	appropriation must not be used to purchase 
29.14 	easements.

29.15
29.16	Subd. 3.Metropolitan Cities Inflow and 
Infiltration Grants
 				3,739,000
	
29.17 	For grants to cities within the metropolitan 
29.18 	area, as defined in Minnesota Statutes, section 
29.19 	473.121, subdivision 2, for capital 
29.20 	improvements in municipal wastewater 
29.21 	collection systems to reduce the amount of 
29.22 	inflow and infiltration to the Metropolitan 
29.23 	Council's metropolitan sanitary sewer disposal 
29.24 	system. Grants from this appropriation are for 
29.25 	up to 50 percent of the cost to mitigate inflow 
29.26 	and infiltration in the publicly owned 
29.27 	municipal wastewater collection systems. To 
29.28 	be eligible for a grant, a city must be identified 
29.29 	by the council as a contributor of excessive 
29.30 	inflow and infiltration in the metropolitan 
29.31 	disposal system or have a measured flow rate 
29.32 	within 20 percent of its allowable 
29.33 	council-determined inflow and infiltration 
29.34 	limits. The council must award grants based 
29.35 	on applications from cities that identify 
30.1 	eligible capital costs and include a timeline 
30.2 	for inflow and infiltration mitigation 
30.3 	construction, pursuant to guidelines 
30.4 	established by the council.

30.5	Subd. 4.Metro Orange Line BRT
 				12,100,000
	
30.6 	Up to $12,100,000, but an amount that is no 
30.7 	more than ten percent of the total project cost, 
30.8 	is for the Metropolitan Council, or for the 
30.9 	Metropolitan Council to make grants to 
30.10 	political subdivisions, for design, acquisition 
30.11 	of right-of-way, engineering, and construction 
30.12 	of capital improvements along the I-35W 
30.13 	corridor for completion of the Metro Orange 
30.14 	Bus Rapid Transit (BRT) Line.

30.15	Subd. 5.Mall of America Station
 				8,750,000
	
30.16 	For design and construction of improvements 
30.17 	to the Mall of America station on the Hiawatha 
30.18 	Corridor light rail transit line, subject to 
30.19 	Minnesota Statutes, section 16A.695. The 
30.20 	Metropolitan Council must consult with the 
30.21 	city of Bloomington throughout the design 
30.22 	and construction process.

30.23	Subd. 6.St. Paul - Como Zoo
 				15,000,000
	
30.24 	For a grant to the city of St. Paul for predesign, 
30.25 	design, and engineering of Phase I of the 
30.26 	renovation of seal and sea lion habitat at the 
30.27 	Como Zoo. The renovated habitat will support 
30.28 	the zoo education programs. This 
30.29 	appropriation is not available until the 
30.30 	commissioner of management and budget 
30.31 	determines that at least $1,100,000 is 
30.32 	committed to the project from nonstate 
30.33 	sources.

31.1	Subd. 7.White Bear Lake Multiuse Trails
 				125,000
	
31.2 	To develop a multiuse pedestrian and bicycle 
31.3 	path around White Bear Lake. Of this amount, 
31.4 	$38,000 is for grants to the cities of 
31.5 	Mahtomedi and Dellwood for preliminary 
31.6 	engineering of a multiuse trail for pedestrians 
31.7 	and bicycles near White Bear Lake in the cities 
31.8 	of Mahtomedi and Dellwood to be located 
31.9 	within the right-of-way to marked Trunk 
31.10 	Highway 244; $15,000 is for a grant to the 
31.11 	city of Mahtomedi for preliminary engineering 
31.12 	for a multiuse trail for pedestrians and bicycles 
31.13 	near White Bear Lake within the right-of-way 
31.14 	to Birchwood Road in the city of Mahtomedi 
31.15 	and Hall Avenue in the city of Birchwood; 
31.16 	and $50,000 is for a grant to Ramsey County 
31.17 	for preliminary engineering of a multiuse trail 
31.18 	for pedestrians and bicycles to South Shore 
31.19 	Boulevard between White Bear Avenue and 
31.20 	Trunk Highway 120.

31.21	Sec. 17. HUMAN SERVICES

31.22	Subdivision 1.Total Appropriation
 			$
	96,565,000
	
31.23 	To the commissioner of administration, or 
31.24 	another named agency, for the purposes 
31.25 	specified in this section.

31.26	Subd. 2.Minnesota Security Hospital - St. Peter
 				70,255,000
	
31.27 	To complete design, remodel, construct, 
31.28 	furnish, and equip the second phase of the 
31.29 	two-phase project to remodel existing, and to 
31.30 	develop new, residential, program, activity, 
31.31 	and ancillary facilities for the Minnesota 
31.32 	Security Hospital on the upper campus of the 
31.33 	St. Peter Regional Treatment Center. This 
31.34 	appropriation includes money to: demolish, 
32.1 	renovate, and remodel existing space; 
32.2 	construct new space; address fire and life 
32.3 	safety, and other building code deficiencies; 
32.4 	replace or renovate interior finishes; purchase 
32.5 	furnishings, fixtures, and equipment; replace 
32.6 	or renovate the Minnesota Security Hospital 
32.7 	building's HVAC, plumbing, electrical, 
32.8 	security, and life safety systems; tuck-point; 
32.9 	replace windows and doors; design and abate 
32.10 	asbestos and hazardous materials; and 
32.11 	complete site work necessary to support the 
32.12 	programmed use of the facilities on the St. 
32.13 	Peter Regional Treatment Center upper 
32.14 	campus.

32.15
32.16	Subd. 3.Child and Adolescent Behavioral Health 
Services
 				7,530,000
	
32.17 	(a) To predesign, design, construct, furnish, 
32.18 	and equip a new community-based 16-bed 
32.19 	psychiatric hospital facility to house the Child 
32.20 	and Adolescent Behavioral Health Services 
32.21 	(CABHS) program to be located in or near the 
32.22 	city of Willmar. This appropriation includes 
32.23 	funds for land purchase, surveying, predesign 
32.24 	and design fees, construction administration, 
32.25 	project management, site work, site and 
32.26 	building infrastructure, construction, and 
32.27 	furniture, fixtures, and equipment.
32.28 	(b) Notwithstanding any law to the contrary, 
32.29 	the 16 hospital beds licensed to the CABHS's 
32.30 	facility on January 1, 2017, by the Department 
32.31 	of Health, may transfer to this new facility 
32.32 	upon completion, and approved inspection by 
32.33 	the Departments of Health and Human 
32.34 	Services.

32.35
32.36	Subd. 4.Anoka Metro Regional Treatment 
Center - Safety and Security Renovations
 				2,250,000
	
33.1 	To provide security upgrades of a capital 
33.2 	nature at the Anoka Metro Regional Treatment 
33.3 	Center campus, including but not limited to 
33.4 	control centers, electronic monitoring and 
33.5 	perimeter security equipment, new or updated 
33.6 	security fencing, and other building security 
33.7 	renovations. This appropriation includes 
33.8 	money for: predesign, design, furnishing, 
33.9 	fixtures, and equipment; construction of safety 
33.10 	and security improvements to courtyards on 
33.11 	residential treatment units; securely enclosing 
33.12 	the nursing station on Unit G; and installing 
33.13 	a campus-wide closed-circuit television video 
33.14 	security system, a facility-wide personal 
33.15 	duress alarm system, a key control system, 
33.16 	and an electronic access control system.

33.17
33.18	Subd. 5.Hennepin County - Regional Medical 
Examiner's Facility
 				2,680,000
	
33.19 	To the commissioner of human services for a 
33.20 	grant to Hennepin County to design an 
33.21 	approximately 67,000 square foot regional, 
33.22 	state-of-the-art medical examiner's facility. 
33.23 	The facility shall: (1) provide forensic death 
33.24 	investigation and autopsy services for Dakota, 
33.25 	Hennepin, and Scott Counties with the 
33.26 	flexibility to accommodate future partner 
33.27 	counties and agencies; (2) serve as a teaching 
33.28 	facility for the state, on the science of forensic 
33.29 	pathology; and (3) be sited on property located 
33.30 	at 14300 County Road 62 in Minnetonka.

33.31	Subd. 6.Perspectives Family Center
 				600,000
	
33.32 	From the general fund to the commissioner of 
33.33 	human services for a grant to Perspectives, 
33.34 	Inc. to predesign and design the expansion and 
33.35 	renovation of the existing Perspectives Family 
34.1 	Center facility in St. Louis Park. The expanded 
34.2 	and renovated facility must be used to promote 
34.3 	the public welfare by providing any or all of 
34.4 	the following programs and services: (1) 
34.5 	supportive housing programs for homeless 
34.6 	women and their children; (2) mental and 
34.7 	chemical health programs; (3) employment 
34.8 	services; (4) academic, social skills, and 
34.9 	nutritional programs for homeless and at-risk 
34.10 	children; (5) an all-day therapeutic early 
34.11 	childhood development program for homeless 
34.12 	and at-risk children; and (6) a culturally 
34.13 	sensitive safe and nurturing environment for 
34.14 	at-risk children to meet with their 
34.15 	nonresidential parents. This appropriation is 
34.16 	not available until the commissioner of 
34.17 	management and budget has determined that 
34.18 	at least an equal amount has been expended 
34.19 	or committed to the project from nonstate 
34.20 	sources. Nonstate money spent on the project 
34.21 	since May 1, 2015, shall be included in the 
34.22 	determination of nonstate commitments to the 
34.23 	project.

34.24
34.25	Subd. 7.St. Paul - Dorothy Day Opportunity 
Center
 				12,000,000
	
34.26 	To the commissioner of human services for a 
34.27 	grant to the city of St. Paul to predesign, 
34.28 	design, construct, furnish, and equip an 
34.29 	opportunity center to serve as an integrated 
34.30 	one-stop delivery system connecting persons 
34.31 	at risk of becoming homeless, and persons 
34.32 	working to move up and out of homelessness, 
34.33 	and to provide services that improve their 
34.34 	health, income, housing stability, or 
34.35 	well-being, subject to Minnesota Statutes, 
34.36 	section 16A.695. This appropriation may be 
35.1 	used to acquire property for these purposes. 
35.2 	This appropriation is not available until the 
35.3 	commissioner of management and budget has 
35.4 	determined that at least an equal amount has 
35.5 	been committed to the project from nonstate 
35.6 	sources. This appropriation is in addition to 
35.7 	the appropriation in Laws 2014, chapter 294, 
35.8 	article 1, section 18, subdivision 9.

35.935.10
	Subd. 8.Carver County - Regional Residential 
Crisis Stabilization Clinic
 				1,250,000
	
35.11 	To the commissioner of human services for a 
35.12 	grant to Carver County to design, construct, 
35.13 	furnish, and equip a facility in the city of 
35.14 	Chaska to provide regional residential crisis 
35.15 	stabilization services subject to Minnesota 
35.16 	Statutes, section 16A.695. This appropriation 
35.17 	shall be used for construction of a 12-bed 
35.18 	facility in conjunction with the expansion of 
35.19 	an existing hospital unit in Carver County, to 
35.20 	maximize the space available for more than 
35.21 	12 crisis stabilization beds. The new facility 
35.22 	shall provide acute stabilization for persons 
35.23 	with a primary or secondary mental health 
35.24 	diagnosis in lieu of inpatient psychiatric 
35.25 	hospitalization and must be open to referrals 
35.26 	from a hospital and freestanding emergency 
35.27 	room in Carver County, a critical access 
35.28 	hospital in Sibley County, and a critical access 
35.29 	hospital in Le Sueur County.

35.30	Sec. 18. VETERANS AFFAIRS

35.31	Subdivision 1.Total Appropriation
 			$
	12,881,000
	
35.32 	To the commissioner of administration for the 
35.33 	purposes specified in this section.

35.34	Subd. 2.Asset Preservation
 				5,000,000
	
36.1 	For asset preservation improvements and 
36.2 	betterments of a capital nature at the veterans 
36.3 	homes in Minneapolis, Hastings, Fergus Falls, 
36.4 	Silver Bay, and Luverne, to be spent in 
36.5 	accordance with Minnesota Statutes, section 
36.6 	16B.307.

36.7
36.8	Subd. 3.Minneapolis Veterans Home Truss 
Bridge Project
 				7,851,000
	
36.9 	To design, construct, renovate, and equip the 
36.10 	historic truss bridge on the Minneapolis 
36.11 	Veterans Home campus, including asbestos 
36.12 	and hazardous materials abatement and 
36.13 	associated site work.

36.14	Subd. 4.Rice County Veterans Memorial
 				30,000
	
36.15 	For a grant to Rice County to complete the 
36.16 	Rice County Veterans Memorial on the 
36.17 	grounds of the Rice County Court House in 
36.18 	Faribault. Because approximately $345,000 
36.19 	of nonstate money has been spent or 
36.20 	committed to the project before the enactment 
36.21 	of this appropriation, no further nonstate 
36.22 	contribution is required.

36.23	Sec. 19. CORRECTIONS

36.24	Subdivision 1.Total Appropriation
 			$
	39,800,000
	
36.25 	To the commissioner of administration for the 
36.26 	purposes specified in this section.

36.27	Subd. 2.Asset Preservation
 				20,000,000
	
36.28 	For asset preservation improvements and 
36.29 	betterments of a capital nature at Minnesota 
36.30 	correctional facilities statewide, to be spent in 
36.31 	accordance with Minnesota Statutes, section 
36.32 	16B.307.

36.33
36.34	Subd. 3.Minnesota Correctional Facility - St. 
Cloud
 				19,000,000
	
37.1 	To construct and equip a new intake unit and 
37.2 	a loading dock with a secure connection to a 
37.3 	new central warehouse at the St. Cloud 
37.4 	correctional facility.

37.5	Subd. 4.Northeast Regional Corrections Center
 				800,000
	
37.6 	For a grant to the Arrowhead Regional 
37.7 	Corrections Joint Powers Board to renovate, 
37.8 	remodel, and complete other capital 
37.9 	improvements to buildings that support 
37.10 	vocational, educational, and farm work 
37.11 	programming and experiences at the Northeast 
37.12 	Regional Corrections Center. Nonstate 
37.13 	contributions to improvements at the center 
37.14 	made before or after the enactment of this 
37.15 	subdivision are considered to be a sufficient 
37.16 	match and no further nonstate contribution is 
37.17 	required.

37.18
37.19	Sec. 20. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

37.20	Subdivision 1.Total Appropriation
 			$
	93,302,000
	
37.21 	To the commissioner of employment and 
37.22 	economic development for the purposes 
37.23 	specified in this section.

37.24	Subd. 2.Asset Preservation
 				1,342,000
	
37.25 	For asset preservation improvements and 
37.26 	betterments of a capital nature at the South 
37.27 	Minneapolis Workforce Center, to be spent in 
37.28 	accordance with Minnesota Statutes, section 
37.29 	16B.307.

37.30	Subd. 3.Transportation Economic Development
 				3,500,000
	
37.31 	For grants under Minnesota Statutes, section 
37.32 	116J.436.

37.33
37.34	Subd. 4.Greater Minnesota Business 
Development Public Infrastructure Grants
 				12,000,000
	
38.1 	For grants under Minnesota Statutes, section 
38.2 	116J.431.
38.3 	Of this amount, $1,600,000 is for a grant to 
38.4 	the city of Thief River Falls to support utility 
38.5 	extensions, roads, and other public 
38.6 	improvements related to the construction of a 
38.7 	wholesale electronic component distribution 
38.8 	center at least 700,000 square feet in size and 
38.9 	investing a minimum of $200,000,000. 
38.10 	Notwithstanding Minnesota Statutes, section 
38.11 	116J.431, a local match is not required for this 
38.12 	project.

38.13
38.14	Subd. 5.Innovative Business Development Public 
Infrastructure Grants
 				1,158,000
	
38.15 	For grants under Minnesota Statutes, section 
38.16 	116J.435.

38.17	Subd. 6.Bertha-Hewitt School District
 				1,500,000
	
38.18 	For a grant to Independent School District No. 
38.19 	786, Bertha-Hewitt, to demolish the Eagle 
38.20 	Bend High School building. This appropriation 
38.21 	does not require a nonstate contribution.

38.22
38.23	Subd. 7.Chisago County - Law Enforcement 
and Emergency Operations Center
 				3,000,000
	
38.24 	For a grant to Chisago County to predesign, 
38.25 	design, construct, furnish, and equip a 
38.26 	municipal complex that includes a law 
38.27 	enforcement and emergency operations center, 
38.28 	and related facilities and infrastructure, for 
38.29 	interconnection to the county emergency 
38.30 	communications center. This appropriation is 
38.31 	not available until the commissioner has 
38.32 	determined that at least an equal amount has 
38.33 	been committed to the project from nonstate 
38.34 	sources. Amounts expended by Chisago 
39.1 	County for project costs since July 1, 2015, 
39.2 	shall count toward the matching requirement.

39.3	Subd. 8.Duluth - Steam Plant
 				15,000,000
	
39.4 	The commissioner of management and budget 
39.5 	shall determine the balance remaining in the 
39.6 	renewable development account in the special 
39.7 	revenue fund established in 2017 S.F. No. 
39.8 	1456, article 10, section 3, if enacted, after all 
39.9 	appropriations are made from the account in 
39.10 	2017 S.F. No. 1456. Notwithstanding any law 
39.11 	to the contrary, the balance determined by the 
39.12 	commissioner, in an amount not to exceed 
39.13 	$15,000,000, is appropriated to the 
39.14 	commissioner of employment and economic 
39.15 	development in fiscal year 2018 for a grant to 
39.16 	the city of Duluth to upgrade the municipal 
39.17 	district heating facility and systems, including 
39.18 	conversion of the distribution system along 
39.19 	Superior Street from steam with no condensate 
39.20 	return to closed-loop hot water. This 
39.21 	appropriation (1) may be used for one or more 
39.22 	of the project elements or phases: predesign, 
39.23 	design, engineering, renovation, construction, 
39.24 	furnishing, and equipping the facility, systems, 
39.25 	and infrastructure; and (2) is available until 
39.26 	expended.

39.27	Subd. 9.Eagle's Healing Nest
 				500,000
	
39.28 	From the general fund for a grant to Eagle's 
39.29 	Healing Nest in Sauk Centre.

39.30
39.31	Subd. 10.Hermantown - Arrowhead Regional 
Health and Wellness Center
 				8,000,000
	
39.32 	For a grant to the city of Hermantown to 
39.33 	prepare the middle school site on the 
39.34 	Hermantown School District campus, 
39.35 	including demolition of a portion of the middle 
40.1 	school, and to design, construct a new addition 
40.2 	to the middle school building and renovate the 
40.3 	remaining existing building, furnish, and equip 
40.4 	the facility as the Arrowhead Regional Health 
40.5 	and Wellness Center. The city may enter into 
40.6 	lease or management agreements under 
40.7 	Minnesota Statutes, section 16A.695, for 
40.8 	operation of the center. This appropriation is 
40.9 	not available until at least an equal amount is 
40.10 	committed to the project from nonstate 
40.11 	sources.

40.12
40.13	Subd. 11.LaSalle - Community Center and Fire 
Hall
 				100,000
	
40.14 	For a grant to the city of La Salle for 
40.15 	renovations to the community center and fire 
40.16 	hall in the city of LaSalle, including replacing 
40.17 	and resurfacing the roof and renovating the 
40.18 	interior of the building. This appropriation 
40.19 	may also be used to renovate a furnace room 
40.20 	in the community center and fire hall to 
40.21 	accommodate the city generator and to replace 
40.22 	carpet and tile. No local match is required.

40.23
40.24	Subd. 12.Litchfield - Phase 2 Power Generation 
Improvements
 				4,000,000
	
40.25 	For a grant to the city of Litchfield to design 
40.26 	and construct electrical generation 
40.27 	improvements in the city of Litchfield to 
40.28 	expand the current standby capacity. This 
40.29 	appropriation is not available until the 
40.30 	commissioner of management and budget 
40.31 	determines that at least an equal amount is 
40.32 	committed to the project from nonstate 
40.33 	sources.

40.34
40.35	Subd. 13.Minneapolis - Pioneers and Soldiers 
Cemetery Restoration
 				1,029,000
	
41.1 	For a grant to the city of Minneapolis to 
41.2 	restore the historic steel and limestone pillar 
41.3 	fence along Cedar Avenue and Lake Street, 
41.4 	install a new steel fence and pillars along 21st 
41.5 	Avenue South, and install a waterproofing 
41.6 	system for preservation of the fence and 
41.7 	pillars, at the Pioneer and Soldiers Cemetery. 
41.8 	This appropriation does not require a nonstate 
41.9 	contribution.

41.10	Subd. 14.Minneapolis American Indian Center
 				155,000
	
41.11 	From the general fund for a grant to the 
41.12 	Minneapolis American Indian Center to 
41.13 	predesign the renovation of the center on 
41.14 	Franklin Avenue, taking into account and 
41.15 	protecting the significant and unique art and 
41.16 	features of the center.

41.17
41.18	Subd. 15.Mountain Iron - Enterprise Drive 
North
 				400,000
	
41.19 	For a grant to the city of Mountain Iron for its 
41.20 	share of the cost of improvements to 
41.21 	Enterprise Drive North where this road 
41.22 	intersects marked U.S. Highway 169 in 
41.23 	Mountain Iron. This project is due to and will 
41.24 	be done in conjunction with the reconstruction 
41.25 	of marked U.S. Highway 169.

41.26	Subd. 16.St. James - Public Infrastructure
 				5,943,000
	
41.27 	For a grant to the city of St. James. Of this 
41.28 	amount, $2,193,000 is for engineering, 
41.29 	right-of-way acquisition, and reconstruction 
41.30 	of streets, sidewalks, storm water and sanitary 
41.31 	sewer, water mains, lighting, utilities, and 
41.32 	other capital improvements of publicly owned 
41.33 	infrastructure required for the reconstruction 
41.34 	of marked Trunk Highway 4 in the city of St. 
41.35 	James, $1,250,000 is for replacement of the 
42.1 	storm sewer drain that serves St. James Lake 
42.2 	and the entire southern section of the city of 
42.3 	St. James, and $2,500,000 is to design, 
42.4 	engineer, and construct and install larger storm 
42.5 	sewers and a storm water retention pond.

42.6
42.7	Subd. 17.St. Paul - Science Museum of 
Minnesota Building Preservation
 				13,000,000
	
42.8 	For a grant to the city of St. Paul for predesign, 
42.9 	design, and construction work to replace 
42.10 	water-damaged elements of the Science 
42.11 	Museum of Minnesota's exterior envelope and 
42.12 	some resultant interior damage caused by 
42.13 	latent design and construction defects, subject 
42.14 	to Minnesota Statutes, section 16A.695. This 
42.15 	appropriation is not available until the 
42.16 	commissioner of management and budget 
42.17 	determines that an equal amount has been 
42.18 	committed to the project from nonstate 
42.19 	sources. Capital costs paid by the Science 
42.20 	Museum of Minnesota since January 1, 2014, 
42.21 	relating to the water intrusion damage, shall 
42.22 	count towards the match requirement.

42.23
42.24	Subd. 18.St. Paul - Minnesota Museum of 
American Art
 				6,000,000
	
42.25 	For a grant to the St. Paul Port Authority to 
42.26 	design, construct, furnish, and equip new 
42.27 	museum galleries and an art study facility for 
42.28 	the Minnesota Museum of American Art. This 
42.29 	facility provides space to celebrate the legacy 
42.30 	of Minnesota art and artists and is part of the 
42.31 	restoration of the historic Pioneer Endicott 
42.32 	Building, and a part of a multiphase project, 
42.33 	of which only the museum galleries and art 
42.34 	study facility constructed with this 
42.35 	appropriation shall be state bond financed 
42.36 	property subject to Minnesota Statutes, section 
43.1 	16A.695. This appropriation is not available 
43.2 	until the commissioner of management and 
43.3 	budget has determined that:
43.4 	(1) at least an amount equal to this 
43.5 	appropriation has been committed or 
43.6 	previously expended for design, construction, 
43.7 	and furnishing of the adjacent Minnesota 
43.8 	Museum of American Art Center for 
43.9 	Creativity facilities, which are not subject to 
43.10 	Minnesota Statutes, section 16A.695, with 
43.11 	funds from nonstate sources; and
43.12 	(2) sufficient other state and nonstate funds 
43.13 	are available, if funds beyond this 
43.14 	appropriation are required, to complete the 
43.15 	museum galleries and art study facility.
43.16 	Funds invested in the Minnesota Museum of 
43.17 	American Art Center for Creativity facilities 
43.18 	by an investor receiving an assignment of state 
43.19 	historic tax credits as provided in Minnesota 
43.20 	Statutes, section 290.0681, are nonstate funds 
43.21 	for purposes of this requirement. Only 
43.22 	expenditures made after January 1, 2012, shall 
43.23 	qualify for the required match. Due to the 
43.24 	integrated nature of the overall development, 
43.25 	public bidding shall not be required.

43.26	Subd. 19.Virginia - Miner's Memorial Building
 				12,000,000
	
43.27 	For a grant to the city of Virginia for phase I 
43.28 	of the renovation and reconstruction of the 
43.29 	Miner's Memorial Building in Virginia. This 
43.30 	appropriation is not available until the 
43.31 	commissioner of management and budget 
43.32 	determines an amount has been committed to 
43.33 	complete the project from nonstate sources.

44.1	Subd. 20.Waseca - Tink Larson Field
 				275,000
	
44.2 	For a grant to the city of Waseca for 
44.3 	construction of a new grandstand and athletic 
44.4 	facilities at Tink Larson Field, due to losses 
44.5 	incurred during a 2016 fire. Money raised for 
44.6 	this project and insurance proceeds received 
44.7 	for the fire loss satisfy the local match 
44.8 	requirement.

44.9	Sec. 21. PUBLIC FACILITIES AUTHORITY

44.10	Subdivision 1.Total Appropriation
 			$
	116,888,000
	
44.11 	To the Public Facilities Authority for the 
44.12 	purposes specified in this section. The Public 
44.13 	Facilities Authority may use the funds in this 
44.14 	section or other available funds to amend 
44.15 	project financing agreements awarded after 
44.16 	July 1, 2016, based on program changes to 
44.17 	Minnesota Statutes, sections 446A.072 and 
44.18 	446A.073, in article 2 of this act.

44.19	Subd. 2.State Match for Federal Grants
 				17,000,000
	
44.20 	To match federal grants for the clean water 
44.21 	revolving fund under Minnesota Statutes, 
44.22 	section 446A.07, and the drinking water 
44.23 	revolving fund under Minnesota Statutes, 
44.24 	section 446A.081. This appropriation must be 
44.25 	used for qualified capital projects.

44.26	Subd. 3.Water Infrastructure Funding Program
 				55,000,000
	
44.27 	(a) For grants to eligible municipalities under 
44.28 	the water infrastructure funding program under 
44.29 	Minnesota Statutes, section 446A.072.
44.30 	(b) $40,000,000 is for wastewater projects 
44.31 	listed on the Pollution Control Agency's 
44.32 	project priority list in the fundable range under 
44.33 	the clean water revolving fund program.
45.1 	(c) $15,000,000 is for drinking water projects 
45.2 	listed on the commissioner of health's project 
45.3 	priority list in the fundable range under the 
45.4 	drinking water revolving fund program.
45.5 	(d) After all eligible projects under paragraph 
45.6 	(b) or (c) have been funded, the Public 
45.7 	Facilities Authority may transfer any 
45.8 	remaining, uncommitted money to eligible 
45.9 	projects under a program defined in paragraph 
45.10 	(b) or (c) based on that program's project 
45.11 	priority list.
45.12 	(e) Notwithstanding Minnesota Statutes, 
45.13 	section 446A.072, subdivision 5a, paragraph 
45.14 	(b), the Western Lake Superior Sanitary 
45.15 	District is eligible for a grant to predesign, 
45.16 	design, construct, furnish, and equip a 
45.17 	combined heat and power system.

45.18
45.19	Subd. 4.Point Source Implementation Grants 
Program
 				33,737,000
	
45.20 	For grants to eligible municipalities under the 
45.21 	point source implementation grants program 
45.22 	under Minnesota Statutes, section 446A.073. 
45.23 	This appropriation must be used for qualified 
45.24 	capital projects.
45.25 	Notwithstanding the limitations on grants in 
45.26 	Minnesota Statutes, section 446A.073, 
45.27 	subdivision 1, the city of Detroit Lakes is 
45.28 	eligible to receive a grant for up to 80 percent 
45.29 	of eligible project costs of the city's 
45.30 	wastewater treatment facility phosphorus 
45.31 	removal project.

45.32
45.33	Subd. 5.Big Lake Area Sanitary District - Sewer 
System and Force Main
 				1,200,000
	
45.34 	For a grant to the Big Lake Area Sanitary 
45.35 	District to construct a pressure sewer system 
46.1 	and force main to convey sewage to the 
46.2 	Western Lake Superior Sanitary District 
46.3 	connection in the city of Cloquet. This 
46.4 	appropriation is not available until the 
46.5 	commissioner of management and budget 
46.6 	determines that an equal amount is committed 
46.7 	from nonstate sources. This appropriation is 
46.8 	in addition to the appropriation in Laws 2014, 
46.9 	chapter 294, article 1, section 22, subdivision 
46.10 	4.

46.11	Subd. 6.Clearbrook - Infrastructure Restoration
 				850,000
	
46.12 	For a grant to the city of Clearbrook to 
46.13 	predesign, design, engineer, and construct 
46.14 	public infrastructure improvements 
46.15 	necessitated by the city's water and wastewater 
46.16 	improvements, including street, curb, and 
46.17 	boulevard restoration. This appropriation does 
46.18 	not require a nonstate contribution.

46.19
46.20	Subd. 7.Clear Lake and Clearwater - 
Wastewater Treatment Facility
 				300,000
	
46.21 	For a grant to the Clear Lake-Clearwater 
46.22 	Sewer Authority to remove and replace the 
46.23 	existing wastewater treatment facility. This 
46.24 	project is intended to prevent the discharge of 
46.25 	phosphorus into the Mississippi River. This 
46.26 	appropriation is not available until the 
46.27 	commissioner of management and budget 
46.28 	determines that at least $200,000 is committed 
46.29 	to the project from nonstate sources and the 
46.30 	authority has applied for at least two grants to 
46.31 	offset the cost. Any money received by the 
46.32 	authority from grants must be returned to the 
46.33 	general fund and are appropriated to the Public 
46.34 	Facilities Authority for the purposes specified 
46.35 	in Minnesota Statutes, section 446A.072, and 
47.1 	subject to Minnesota Statutes, section 
47.2 	16A.642, from the date of the original 
47.3 	appropriation.

47.4
47.5	Subd. 8.Dennison - Sewage Treatment System 
Improvements
 				726,000
	
47.6 	For a grant to the city of Dennison to 
47.7 	predesign, design, and construct a new lift 
47.8 	station and make sewage pond improvements. 
47.9 	This appropriation does not require a nonstate 
47.10 	contribution.

47.11
47.12	Subd. 9.East Grand Forks - Wastewater 
Interconnection Infrastructure
 				5,300,000
	
47.13 	For a grant to the city of East Grand Forks to 
47.14 	design and construct wastewater infrastructure 
47.15 	improvements interconnecting the wastewater 
47.16 	system of East Grand Forks to the wastewater 
47.17 	treatment system in Grand Forks, North 
47.18 	Dakota, and to design and construct the 
47.19 	decommissioning of the wastewater 
47.20 	stabilization ponds in East Grand Forks, 
47.21 	Minnesota. This appropriation may not be used 
47.22 	for improvements outside the state. This 
47.23 	appropriation is in addition to grants under 
47.24 	Minnesota Statutes, section 446A.072. A 
47.25 	nonstate match is not required.

47.26
47.27	Subd. 10.Lilydale - Highway 13 Storm Water 
Conveyance
 				275,000
	
47.28 	From the general fund for a grant to the city 
47.29 	of Lilydale to design, acquire, construct, and 
47.30 	install a storm water sewer and drop structure 
47.31 	along Trunk Highway 13 in Lilydale that will 
47.32 	be large enough to effectively collect water 
47.33 	from springs and storm water runoff from 
47.34 	above the road and safely convey the water to 
47.35 	below the bluff. The city must coordinate this 
47.36 	project with the Department of 
48.1 	Transportation's Trunk Highway 13 project. 
48.2 	The appropriation and project also include 
48.3 	capital repairs and improvements to existing 
48.4 	drainage structures along the Big Rivers 
48.5 	Regional Trail at the base of the bluff. This 
48.6 	appropriation may be used in part or in whole 
48.7 	to reimburse the city for project costs already 
48.8 	paid for and does not require a nonstate 
48.9 	contribution.

48.10
48.11	Subd. 11.Koochiching County - Voyageurs 
National Park Clean Water Project
 				2,000,000
	
48.12 	(a) For a grant to Koochiching County to 
48.13 	acquire land or interests in land, and to design, 
48.14 	engineer, construct, and equip sanitary sewage 
48.15 	systems and facilities to implement a portion 
48.16 	or portions of the Voyageurs National Park 
48.17 	clean water project comprehensive plan. This 
48.18 	appropriation is available after the 
48.19 	commissioner of management and budget 
48.20 	determines that $4,500,000 is committed from 
48.21 	nonstate sources.
48.22 	(b) This appropriation is in addition to the 
48.23 	appropriation in Laws 2014, chapter 294, 
48.24 	article 1, section 22, subdivision 7. 
48.25 	Notwithstanding the match requirement in 
48.26 	Laws 2014, chapter 294, article 1, section 22, 
48.27 	subdivision 7, the nonstate match required for 
48.28 	this appropriation and the 2014 appropriation 
48.29 	for a grant to Koochiching County is 25 
48.30 	percent of the state grant amounts. Any money 
48.31 	remaining from this appropriation after 
48.32 	completion of the projects in paragraph (a) is 
48.33 	available for grants to Koochiching or St. 
48.34 	Louis County to be used for other capital 
48.35 	projects described in the comprehensive plan 
49.1 	and as determined by the Voyageurs National 
49.2 	Park Clean Water Joint Powers Board.

49.3
49.4	Subd. 12.Oronoco - Wastewater Collection and 
Treatment Facilities
 				500,000
	
49.5 	From the general fund for a grant to the city 
49.6 	of Oronoco to commission a study to evaluate 
49.7 	options for solving the wastewater 
49.8 	infrastructure needs for the region including 
49.9 	the city of Oronoco, the city of Pine Island, or 
49.10 	the city of Rochester. This appropriation does 
49.11 	not require a nonstate match.

49.12
49.13	Sec. 22. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	10,000,000
	
49.14 	For transfer to the housing development fund 
49.15 	to finance the costs of rehabilitation to 
49.16 	preserve public housing under Minnesota 
49.17 	Statutes, section 462A.202, subdivision 3a. 
49.18 	For purposes of this section, "public housing" 
49.19 	means housing for low-income persons and 
49.20 	households financed by the federal 
49.21 	government and owned and operated by the 
49.22 	public housing authorities and agencies formed 
49.23 	by cities and counties. Public housing 
49.24 	authorities receiving a public housing 
49.25 	assessment composite score of 80 or above or 
49.26 	an equivalent designation are eligible to 
49.27 	receive funding. Priority must be given to 
49.28 	proposals that maximize federal or local 
49.29 	resources to finance the capital costs. The 
49.30 	priority in Minnesota Statutes, section 
49.31 	462A.202, subdivision 3a, for projects to 
49.32 	increase the supply of affordable housing and 
49.33 	the restrictions of Minnesota Statutes, section 
49.34 	462A.202, subdivision 7, do not apply to this 
49.35 	appropriation.

50.1
50.2	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

50.3	Subdivision 1.Total Appropriation
 			$
	6,500,000
	
50.4 	To the Minnesota Historical Society for the 
50.5 	purposes specified in this section.

50.6	Subd. 2.Historic Sites Asset Preservation
 				2,500,000
	
50.7 	For capital improvements and betterments at 
50.8 	state historic sites, buildings, landscaping at 
50.9 	historic buildings, exhibits, markers, and 
50.10 	monuments, to be spent in accordance with 
50.11 	Minnesota Statutes, section 16B.307. The 
50.12 	society shall determine project priorities as 
50.13 	appropriate based on need.

50.14	Subd. 3.Historic Fort Snelling
 				4,000,000
	
50.15 	To predesign and design facilities to support 
50.16 	visitor services and history programs at 
50.17 	Historic Fort Snelling.

50.18	Sec. 24. BOND SALE EXPENSES
 			$
	1,035,000
	
50.19 	To the commissioner of management and 
50.20 	budget for bond sale expenses under 
50.21 	Minnesota Statutes, section 16A.641, 
50.22 	subdivision 8.

50.23 	Sec. 25. BOND SALE AUTHORIZATION.
 50.24 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
50.25 	the bond proceeds fund, the commissioner of management and budget shall sell and issue 
50.26 	bonds of the state in an amount up to $862,592,000 in the manner, upon the terms, and with 
50.27 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
50.28 	Minnesota Constitution, article XI, sections 4 to 7.
50.29 		Subd. 2.Transportation fund. To provide the money appropriated in this act from the 
50.30 	state transportation fund, the commissioner of management and budget shall sell and issue 
50.31 	bonds of the state in an amount up to $165,544,000 in the manner, upon the terms, and with 
51.1 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
51.2 	Minnesota Constitution, article XI, sections 4 to 7.

51.3 	Sec. 26. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 51.4 	(a) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.5 	1990, chapter 610, are canceled and the bond sale authorization in Laws 1990, chapter 610, 
51.6 	article 1, section 30, subdivision 1, as amended, is reduced by $3,129.
51.7 	(b) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.8 	1994, chapter 643, are canceled and the bond sale authorization in Laws 1994, chapter 643, 
51.9 	section 31, subdivision 1, as amended, is reduced by $24,480.
51.10 	(c) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.11 	1997, Second Special Session chapter 2, are canceled and the bond sale authorization in 
51.12 	Laws 1997, Second Special Session chapter 2, section 12, as amended, is reduced by $96,992.
51.13 	(d) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.14 	1999, chapter 240, are canceled and the bond sale authorization in Laws 1999, chapter 240, 
51.15 	article 1, section 13, subdivision 1, as amended, is reduced by $212,472.
51.16 	(e) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.17 	2000, chapter 492, are canceled and the bond sale authorization in Laws 2000, chapter 492, 
51.18 	article 1, section 26, subdivision 1, as amended, is reduced by $7,933,538.
51.19 	(f) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.20 	2002, chapter 393, are canceled and the bond sale authorization in Laws 2002, chapter 393, 
51.21 	section 30, subdivision 1, as amended, is reduced by $188,471.
51.22 	(g) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
51.23 	2002, First Special Session chapter 1, are canceled and the bond sale authorization in Laws 
51.24 	2002, First Special Session chapter 1, section 9, subdivision 1, is reduced by $217,959.
51.25 	(h) The remaining uncommitted appropriations from the trunk highway bond proceeds 
51.26 	fund in Laws 2003, First Special Session chapter 19, article 3, are canceled and the bond 
51.27 	sale authorization in Laws 2003, First Special Session chapter 19, article 3, section 2, is 
51.28 	reduced by $201,530.
51.29 	(i) The remaining uncommitted appropriations from the trunk highway bond proceeds 
51.30 	fund in Laws 2003, First Special Session chapter 19, article 4, are canceled and the bond 
51.31 	sale authorization in Laws 2003, First Special Session chapter 19, article 4, section 4, is 
51.32 	reduced by $326,534.
52.1 	(j) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
52.2 	2005, chapter 20, are canceled and the bond sale authorization in Laws 2005, chapter 20, 
52.3 	article 1, section 28, subdivision 1, as amended, is reduced by $3,366,628.
52.4 	(k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First Special 
52.5 	Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is canceled 
52.6 	and the bond sale authorization in Laws 2011, First Special Session chapter 12, section 23, 
52.7 	subdivision 1, is reduced by the same amount.
52.8 	(l) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012, First 
52.9 	Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner of public 
52.10 	safety for disaster relief, is canceled and the bond sale authorization in Laws 2012, First 
52.11 	Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
52.12 	(m) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
52.13 	Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster 
52.14 	relief, is canceled and the bond sale authorization in Laws 2012, First Special Session chapter 
52.15 	1, article 1, section 16, subdivision 1, is reduced by the same amount.
52.16 	(n) The $300,000 appropriation from the general fund in Laws 2015, First Special Session 
52.17 	chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.
52.18 	(o) The uncommitted and unobligated amount of the appropriation from the bond proceeds 
52.19 	fund in Laws 2014, chapter 294, article 1, section 18, subdivision 8, for the Arrowhead 
52.20 	Economic Opportunity Agency and Range Mental Health Center, estimated to be $1,200,000, 
52.21 	is canceled, and the bond sale authorization in Laws 2014, chapter 294, article 1, section 
52.22 	26, subdivision 1, is reduced by the same amount.

52.23 	Sec. 27. BOND SALE SCHEDULE.
 52.24 	The commissioner of management and budget shall schedule the sale of state general 
52.25 	obligation bonds so that, during the biennium ending June 30, 2019, no more than 
52.26 	$1,155,770,000 will need to be transferred from the general fund to the state bond fund to 
52.27 	pay principal and interest due and to become due on outstanding state general obligation 
52.28 	bonds. During the biennium, before each sale of state general obligation bonds, the 
52.29 	commissioner of management and budget shall calculate the amount of debt service payments 
52.30 	needed on bonds previously issued and shall estimate the amount of debt service payments 
52.31 	that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the 
52.32 	amount of bonds scheduled to be sold so as to remain within the limit set by this section. 
53.1 	The amount needed to make the debt service payments is appropriated from the general 
53.2 	fund as provided in Minnesota Statutes, section 16A.641.

53.3 	Sec. 28. EFFECTIVE DATE.
 53.4 	Except as otherwise provided, this article is effective the day following final enactment.

53.5 	ARTICLE 2
53.6 	MISCELLANEOUS

53.7 	Section 1. Minnesota Statutes 2016, section 15B.32, subdivision 4, is amended to read:
53.8 		Subd. 4.Officers and meetings. (a) The governor is the chair of the commission. The 
53.9 	lieutenant governor is the vice-chair of the commission and may act as the chair of the 
53.10 	commission in the absence of the governor. The governor may designate a staff member to 
53.11 	attend commission meetings and vote on the governor's behalf in the absence of the governor.
53.12 	(b) The commission shall meet at least quarterly annually and at other times at the call 
53.13 	of the chair. Meetings of the commission are subject to chapter 13D.

53.14 	Sec. 2. Minnesota Statutes 2016, section 16A.967, is amended to read:
53.15 	16A.967 LEWIS AND CLARK APPROPRIATION BONDS.
53.16 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
53.17 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of 
53.18 	the state payable during a biennium from one or more of the following sources:
53.19 	(1) money appropriated by law from the general fund in any biennium for debt service 
53.20 	due with respect to obligations described in subdivision 2, paragraph (c)subdivisions 2a 
53.21 	and 2b;
53.22 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c)
53.23 	subdivisions 2a and 2b;
53.24 	(3) payments received for that purpose under agreements and ancillary arrangements 
53.25 	described in subdivision 2, paragraph (e) (d); and
53.26 	(4) investment earnings on amounts in clauses (1) to (3).
53.27 	(c) "Debt service" means the amount payable in any biennium of principal, premium, if 
53.28 	any, and interest on appropriation bonds.
54.1 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
54.2 	this subdivision, the commissioner may sell and issue appropriation bonds of the state under 
54.3 	this section for public purposes as provided by law, including, in particular, the financing 
54.4 	of the land acquisition, design, engineering, and construction of facilities and infrastructure 
54.5 	necessary to complete the next phase of the Lewis and Clark Regional Water System project, 
54.6 	including completion of the pipeline to Magnolia, extension of the project to the 
54.7 	Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design, 
54.8 	and easement acquisition for the final phase of the project to Worthington. No bonds shall 
54.9 	be sold until the commissioner determines that a nonstate match of at least $9,000,000 is 
54.10 	committed to this project phase. Grant agreements entered into under this section must 
54.11 	provide for reimbursement to the state from any federal money provided for the project, 
54.12 	consistent with the Lewis and Clark Regional Water System, Inc., agreement.
54.13 	(b) The appropriation bonds may be issued and sold only after the commissioner 
54.14 	determines that the construction and administration for work done on the project will comply 
54.15 	with (1) all federal requirements and regulations associated with the Lewis and Clark Rural 
54.16 	Water System Act of 2000, and (2) the cooperative agreement between the United States 
54.17 	Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds 
54.18 	of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond 
54.19 	proceeds fund in the state treasury. All income from investment of the bond proceeds, as 
54.20 	estimated by the commissioner, is appropriated to the commissioner for the payment of 
54.21 	principal and interest on the appropriation bonds.
54.22 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
54.23 	commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of 
54.24 	costs of issuance, for the purposes as provided under paragraph (a), and pay debt service 
54.25 	including capitalized interest, costs of issuance, costs of credit enhancement, or make 
54.26 	payments under other agreements entered into under paragraph (e).
54.27 	(d) (c) Appropriation bonds may be issued in one or more issues or series on the terms 
54.28 	and conditions the commissioner determines to be in the best interests of the state, but the 
54.29 	term on any series of appropriation bonds may not exceed 25 years. The appropriation bonds 
54.30 	of each issue and series thereof shall be dated and bear interest, and may be includable in 
54.31 	or excludable from the gross income of the owners for federal income tax purposes.
54.32 	(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
54.33 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 
54.34 	enter into agreements and ancillary arrangements relating to the appropriation bonds, 
54.35 	including but not limited to trust indentures, grant agreements, lease or use agreements, 
55.1 	operating agreements, management agreements, liquidity facilities, remarketing or dealer 
55.2 	agreements, letter of credit agreements, insurance policies, guaranty agreements, 
55.3 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
55.4 	payments made or received according to the agreement or ancillary arrangement shall be 
55.5 	made from or deposited as provided in the agreement or ancillary arrangement. The 
55.6 	determination of the commissioner included in an interest exchange agreement that the 
55.7 	agreement relates to an appropriation bond shall be conclusive.
55.8 	(f) (e) The commissioner may enter into written agreements or contracts relating to the 
55.9 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
55.10 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
55.11 	including Securities and Exchange Commission rules and regulations in Code of Federal 
55.12 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
55.13 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
55.14 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
55.15 	the order or resolution.
55.16 	(g) (f) The appropriation bonds are not subject to chapter 16C.
55.17 		Subd. 2a.Project authorization. Appropriation bonds may be sold and issued in amounts 
55.18 	that, in the opinion of the commissioner, are necessary to provide sufficient money to the 
55.19 	Public Facilities Authority under subdivision 7, paragraph (a), not to exceed $19,000,000 
55.20 	net of costs of issuance, for the purposes as provided under this subdivision, and pay debt 
55.21 	service including capitalized interest, costs of issuance, costs of credit enhancement, or 
55.22 	make payments under other agreements entered into under subdivision 2, paragraph (d). 
55.23 	The bonds authorized by this subdivision are for the purposes of financing the land 
55.24 	acquisition, design, engineering, and construction of facilities and infrastructure necessary 
55.25 	to complete Phase 2 of the Lewis and Clark Regional Water System project, including 
55.26 	completion of the pipeline to Magnolia; extension of the project to the Lincoln-Pipestone 
55.27 	Rural Water System connection near Adrian; engineering, design, and easement acquisition 
55.28 	for the final phase of the project to Worthington; and to begin and proceed with Phase 3, 
55.29 	described in subdivision 2b. No bonds shall be sold under this subdivision until the 
55.30 	commissioner determines that a nonstate match of at least $9,000,000 is committed to this 
55.31 	project phase. Upon certification by the Lewis and Clark Joint Powers Board that the bond 
55.32 	sale authorization provided by this subdivision has fully met the needs of Phase 2 of the 
55.33 	project, and to the extent there is additional authorization remaining, this authorization is 
55.34 	also available for the purposes of and on the same conditions as subdivision 2b.
56.1 		Subd. 2b.Additional project authorization. Appropriation bonds may be sold and 
56.2 	issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient 
56.3 	money to the Public Facilities Authority under subdivision 7, paragraph (b), not to exceed 
56.4 	$3,500,000 net of costs of issuance, for the purposes as provided under this subdivision, 
56.5 	and pay debt service including capitalized interest, costs of issuance, costs of credit 
56.6 	enhancement, or make payments under other agreements entered into under subdivision 2, 
56.7 	paragraph (d). The bonds authorized by this subdivision are for the purposes of financing 
56.8 	the land acquisition, design, engineering, and construction of facilities and infrastructure 
56.9 	necessary to complete Phase 3 of the Lewis and Clark Regional Water System project, 
56.10 	including extension of the project from the Lincoln-Pipestone Rural Water System connection 
56.11 	near Adrian to Worthington, construction of a reservoir in Nobles County and a meter 
56.12 	building in Worthington, and acquisition and installation of a supervisory control and data 
56.13 	acquisition (SCADA) system. No bonds shall be sold under this subdivision until the 
56.14 	commissioner determines that a nonstate match of at least $9,000,000 is committed to the 
56.15 	final phase of the project.
56.16 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, 
56.17 	notes, or other similar instruments, and in the manner provided in section 16A.672. In the 
56.18 	event that any provision of section 16A.672 conflicts with this section, this section shall 
56.19 	control.
56.20 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
56.21 	established in subdivision 6.
56.22 	(c) Appropriation bonds may be sold at either public or private sale upon such terms as 
56.23 	the commissioner shall determine are not inconsistent with this section and may be sold at 
56.24 	any price or percentage of par value. Any bid received may be rejected.
56.25 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
56.26 	(e) Notwithstanding any other law, appropriation bonds issued under this section shall 
56.27 	be fully negotiable.
56.28 		Subd. 4.Refunding bonds. The commissioner may issue appropriation bonds for the 
56.29 	purpose of refunding any appropriation bonds then outstanding, including the payment of 
56.30 	any redemption premiums on the bonds, any interest accrued or to accrue to the redemption 
56.31 	date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any 
56.32 	refunding bonds may, in the discretion of the commissioner, be applied to the purchase or 
56.33 	payment at maturity of the appropriation bonds to be refunded, to the redemption of the 
56.34 	outstanding appropriation bonds on any redemption date, or to pay interest on the refunding 
57.1 	bonds and may, pending application, be placed in escrow to be applied to the purchase, 
57.2 	payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be 
57.3 	invested and reinvested in obligations that are authorized investments under section 11A.24. 
57.4 	The income earned or realized on the investment may also be applied to the payment of the 
57.5 	appropriation bonds to be refunded or interest or premiums on the refunded appropriation 
57.6 	bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been 
57.7 	fully satisfied, any balance of the proceeds and any investment income may be returned to 
57.8 	the general fund or, if applicable, the special appropriation Lewis and Clark bond proceeds 
57.9 	fund for use in any lawful manner. All refunding bonds issued under this subdivision must 
57.10 	be prepared, executed, delivered, and secured by appropriations in the same manner as the 
57.11 	appropriation bonds to be refunded.
57.12 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities may 
57.13 	legally invest any sinking funds, money, or other funds belonging to them or under their 
57.14 	control in any appropriation bonds issued under this section:
57.15 	(1) the state, the investment board, public officers, municipal corporations, political 
57.16 	subdivisions, and public bodies;
57.17 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
57.18 	savings banks and institutions, investment companies, insurance companies, insurance 
57.19 	associations, and other persons carrying on a banking or insurance business; and
57.20 	(3) personal representatives, guardians, trustees, and other fiduciaries.
57.21 		Subd. 6.No full faith and credit; state not required to make appropriations. The 
57.22 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
57.23 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
57.24 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
57.25 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
57.26 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
57.27 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
57.28 	for any fiscal year, provided that nothing in this section shall be construed to require the 
57.29 	state to appropriate money sufficient to make debt service payments with respect to the 
57.30 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no 
57.31 	longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
57.32 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
57.33 	of final payment of the principal of and interest on the appropriation bonds.
58.1 		Subd. 7.Appropriation of proceeds. (a) The proceeds of appropriation bonds issued 
58.2 	under subdivision 2a and interest credited to the special appropriation Lewis and Clark bond 
58.3 	proceeds fund are appropriated as follows:
58.4 	(1) to the commissioner Public Facilities Authority for a grant to the Lewis and Clark 
58.5 	Joint Powers Board for payment of capital expenses for the purposes provided by as specified 
58.6 	in subdivision 2, paragraph (a), 2a; and
58.7 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
58.8 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 
58.9 	payments under any agreements entered into under subdivision 2, paragraph (e) (d), each 
58.10 	as permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise 
58.11 	provided for the public purposes provided by subdivision 2, paragraph (a).
58.12 	(b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited 
58.13 	to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:
58.14 	(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 
58.15 	Board for payment of capital expenses as specified in subdivision 2b; and
58.16 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
58.17 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 
58.18 	payments under any agreements entered into under subdivision 2, paragraph (d), each as 
58.19 	permitted by state and federal law.
58.20 		Subd. 8.Appropriation for debt service and other purposes. (a) An amount, up to 
58.21 	$1,351,000 needed to pay principal and interest on appropriation bonds issued under this 
58.22 	section subdivision 2a is appropriated each fiscal year from the general fund to the 
58.23 	commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
58.24 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
58.25 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
58.26 	appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.
58.27 	(b) An amount up to $265,000 needed to pay principal and interest on appropriation 
58.28 	bonds issued under subdivision 2b is appropriated each fiscal year from the general fund 
58.29 	to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
58.30 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
58.31 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
58.32 	appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.
59.1 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for by 
59.2 	section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary 
59.3 	contracts to which the commissioner is a party.

59.4 	Sec. 3. [16C.054] ACCOMMODATION FOR HARD-OF-HEARING IN 
59.5 	STATE-FUNDED CAPITAL PROJECTS.
59.6 		Subdivision 1.Definition. For purposes of this section, "public gathering space" means 
59.7 	a space that is constructed or renovated as part of the project: (1) that accommodates and 
59.8 	is intended to be used for gatherings of 15 or more people; and (2) in which audible 
59.9 	communications are integral to a use of the space.
59.10 		Subd. 2.Accommodation for hard-of-hearing in state-funded capital projects. No 
59.11 	commissioner or agency head may approve a contract or grant state funds for a capital 
59.12 	improvement project to construct or renovate a public gathering space in a building unless:
59.13 	(1) the project includes equipping the public gathering space, if the public gathering 
59.14 	space has or will have a permanent audio-amplification system, with audio-induction loops 
59.15 	to provide an electromagnetic signal for hearing aids and cochlear implants; and
59.16 	(2) the project includes meeting the American National Standards Institute Acoustical 
59.17 	Performance Criteria, Design Requirements and Guidelines for Schools on maximum 
59.18 	background noise level and reverberation times in the public gathering space.
59.19 		Subd. 3.Exemption. A commissioner or agency head may approve a contract or grant 
59.20 	state funds for a capital improvement project to construct or renovate a building that does 
59.21 	not meet a requirement of subdivision 2, when the commissioner or agency head determines 
59.22 	that meeting that requirement is not feasible, is in conflict with other requirements in law, 
59.23 	is in conflict with other project requirements, or that costs outweigh the benefits. The 
59.24 	commissioner must consult with the Commission of Deaf, Deafblind, and Hard-of-Hearing 
59.25 	Minnesotans before making the determination.
59.26 		Subd. 4.Exemption reports. A commissioner or agency head who determines a contract 
59.27 	is exempt under subdivision 3 must report the exemption to the Commission of Deaf, 
59.28 	Deafblind, and Hard-of-Hearing Minnesotans within three months of making the 
59.29 	determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing 
59.30 	Minnesotans shall submit a report to the chairs and ranking minority members of the 
59.31 	committees in the house of representatives and senate with jurisdiction over state contracting 
59.32 	by January 30 of even-numbered years beginning in 2020 identifying each exemption 
59.33 	reported in the previous two calendar years.

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

60.7 	Sec. 4. Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:
60.8 		Subd. 2.Standards. (a) An appropriation for asset preservation may be used only for a 
60.9 	capital expenditure on a capital asset previously owned by the state, within the meaning of 
60.10 	generally accepted accounting principles as applied to public expenditures. The commissioner 
60.11 	of natural resources will consult with the commissioner of management and budget to the 
60.12 	extent necessary to ensure this and will furnish the commissioner of management and budget 
60.13 	a list of projects to be financed from the account in order of their priority. The legislature 
60.14 	assumes that many projects for preservation and replacement of portions of existing capital 
60.15 	assets will constitute betterments and capital improvements within the meaning of the 
60.16 	Constitution and capital expenditures under generally accepted accounting principles, and 
60.17 	will be financed more efficiently and economically under this section than by direct 
60.18 	appropriations for specific projects.
60.19 	(b) An appropriation for asset preservation must not be used to acquire land or to acquire 
60.20 	or construct buildings or other facilities.
60.21 	(c) Capital budget expenditures for natural resource asset preservation and replacement 
60.22 	projects must be for one or more of the following types of capital projects that support the 
60.23 	existing programmatic mission of the department: code compliance including health and 
60.24 	safety, Americans with Disabilities Act requirements, hazardous material abatement, access 
60.25 	improvement, or air quality improvement; building energy efficiency improvements using 
60.26 	current best practices; building or infrastructure repairs necessary to preserve the interior 
60.27 	and exterior of existing buildings; projects to remove life safety hazards such as building 
60.28 	code violations or structural defects; or renovation of other existing improvements to land, 
60.29 	including but not limited to trails and bridges.
60.30 	(d) Up to ten percent of an appropriation awarded under this section may be used for 
60.31 	design costs for projects eligible to be funded from this account in anticipation of future 
60.32 	funding from the account.

61.1 	Sec. 5. Minnesota Statutes 2016, section 85.015, subdivision 6, is amended to read:
61.2 		Subd. 6.Minnesota Valley Trail, Hennepin, Dakota, Scott, Carver, Sibley and Le 
61.3 	Sueur Counties. (a) The trail shall originate at Fort Snelling State Park and thence extend 
61.4 	generally southwesterly along the Minnesota River Valley through Hennepin, Dakota, Scott, 
61.5 	Carver, Sibley, and Le Sueur Counties to the city of Le Sueur, and there terminate. The trail 
61.6 	shall include the following state waysides: (a) Rice Lake Wayside, in Scott County; (b) 
61.7 	Carver Rapids Wayside, in Scott County; (c) Lawrence wayside, in Scott county; (d) Belle 
61.8 	Plaine Wayside, in Carver, Scott, and Sibley Counties; (e) Blakeley Wayside, in Scott 
61.9 	County; and (f) Rush River Wayside, in Sibley County.
61.10 	(b) The trail shall be developed primarily for riding and hiking. Motorized vehicles are 
61.11 	prohibited from that portion of the trail on the north side of the Minnesota River, lying 
61.12 	between Fort Snelling State Park and Rice Lake Wayside. That portion of the trail on the 
61.13 	north side of the Minnesota River, lying between the Bloomington Ferry Bridge pedestrian 
61.14 	crossing and the Cedar Avenue Bridge, must be a paved trail developed primarily for hiking 
61.15 	and bicycling.
61.16 	(c) In establishing, developing, maintaining, and operating the trail the commissioner 
61.17 	shall cooperate with local units of government and private individuals and groups whenever 
61.18 	feasible.

61.19 	Sec. 6. Minnesota Statutes 2016, section 85.34, subdivision 1, is amended to read:
61.20 		Subdivision 1.Upper bluff; lease terms. The commissioner of natural resources with 
61.21 	the approval of the Executive Council may lease for purposes of restoration, preservation, 
61.22 	historical, recreational, educational, and commercial use and development, that portion of 
61.23 	Fort Snelling State Park known as the upper bluff consisting of officer's row, area J, the 
61.24 	polo grounds, the adjacent golf course, and all buildings and improvements located thereon, 
61.25 	all lying within an area bounded by Minneapolis-St. Paul International Airport, Trunk 
61.26 	Highways numbered 5 and 55, and Bloomington Road. The lease or leases shall be in a 
61.27 	form approved by the attorney general and for a term of not to exceed 99 years. The lease 
61.28 	or leases may provide for the provision of capital improvements or other performance by 
61.29 	the tenant or tenants in lieu of all or some of the payments of rent that would otherwise be 
61.30 	required. Notwithstanding the continuing ownership of the upper bluff by the state, any 
61.31 	lease of one or more buildings improved with state general obligation bond proceeds that 
61.32 	exceeds 50 years shall be treated as a sale of the buildings for purposes of section 16A.695, 
61.33 	subdivision 3. Any disposition proceeds payable to the commissioner upon execution of a 
61.34 	lease relating to state-bond-financed buildings at the upper bluff shall be applied according 
62.1 	to section 16A.695, subdivision 3, and used to pay, redeem, or defease state general obligation 
62.2 	bonds issued for purposes of improving those buildings. Any lease revenues paid to the 
62.3 	commissioner subsequent to the payment, redemption, or defeasance of state general 
62.4 	obligation bonds shall be used by the commissioner as further described in this section.

62.5 	Sec. 7. Minnesota Statutes 2016, section 116J.8738, subdivision 2, is amended to read:
62.6 		Subd. 2.Qualified business. (a) A business is a qualified business if it satisfies the 
62.7 	requirement of this paragraph and is not disqualified under the provisions of paragraph (b). 
62.8 	To qualify, the business must:
62.9 	(1) have operated its trade or business in a city or cities in greater Minnesota for at least 
62.10 	one year before applying under subdivision 3;
62.11 	(2) pay or agree to pay in the future each employee compensation, including benefits 
62.12 	not mandated by law, that on an annualized basis equal at least 120 percent of the federal 
62.13 	poverty level for a family of four;
62.14 	(3) plan and agree to expand its employment in one or more cities in greater Minnesota 
62.15 	by the minimum number of employees required under subdivision 3, paragraph (c); and
62.16 	(4) have received certification from the commissioner under subdivision 3 that it is a 
62.17 	qualified business.
62.18 	(b) A business is not a qualified business if it is either:
62.19 	(1) primarily engaged in making retail sales to purchasers who are physically present at 
62.20 	the business's location or locations in greater Minnesota;
62.21 	(2) a public utility, as defined in section 336B.01; or
62.22 	(3) primarily engaged in lobbying; gambling; entertainment; professional sports; political 
62.23 	consulting; leisure; hospitality; or professional services provided by attorneys, accountants, 
62.24 	business consultants, physicians, or health care consultants.
62.25 	(c) The requirements in paragraph (a) that the business's operations and expansion be 
62.26 	located in a city do not apply to an agricultural processing facility or a project designed to 
62.27 	qualify under section 41A.20.

62.28 	Sec. 8. Minnesota Statutes 2016, section 116J.8738, subdivision 3, is amended to read:
62.29 		Subd. 3.Certification of qualified business. (a) A business may apply to the 
62.30 	commissioner for certification as a qualified business under this section. The commissioner 
62.31 	shall specify the form of the application, the manner and times for applying, and the 
63.1 	information required to be included in the application. The commissioner may impose an 
63.2 	application fee in an amount sufficient to defray the commissioner's cost of processing 
63.3 	certifications. Application fees are deposited in the greater Minnesota business expansion 
63.4 	administration account in the special revenue fund. A business must file a copy of its 
63.5 	application with the chief clerical officer of the city at the same time it applies to the 
63.6 	commissioner. For an agricultural processing facility or a project designed to qualify under 
63.7 	section 41A.20 located outside the boundaries of a city, the business must file a copy of the 
63.8 	application with the county auditor.
63.9 	(b) The commissioner shall certify each business as a qualified business that:
63.10 	(1) satisfies the requirements of subdivision 2;
63.11 	(2) the commissioner determines would not expand its operations in greater Minnesota 
63.12 	without the tax incentives available under subdivision 4; and
63.13 	(3) enters a business subsidy agreement with the commissioner that pledges to satisfy 
63.14 	the minimum expansion requirements of paragraph (c) within three years or less following 
63.15 	execution of the agreement.
63.16 	The commissioner must act on an application within 90 days after its filing. Failure by 
63.17 	the commissioner to take action within the 90-day period is deemed approval of the 
63.18 	application.
63.19 	(c) The business must increase the number of full-time equivalent employees in greater 
63.20 	Minnesota from the time the business subsidy agreement is executed by two employees or 
63.21 	ten percent, whichever is greater.
63.22 	(d) The city, or a county for an agricultural processing facility or a project designed to 
63.23 	qualify under section 41A.20 located outside the boundaries of a city, in which the business 
63.24 	proposes to expand its operations may file comments supporting or opposing the application 
63.25 	with the commissioner. The comments must be filed within 30 days after receipt by the city 
63.26 	or county of the application and may include a notice of any contribution the city or county 
63.27 	intends to make to encourage or support the business expansion, such as the use of tax 
63.28 	increment financing, property tax abatement, additional city or county services, or other 
63.29 	financial assistance.
63.30 	(e) Certification of a qualified business is effective for the seven-year period beginning 
63.31 	on the first day of the calendar month immediately following the date that the commissioner 
63.32 	informs the business of the award of the benefit.

64.1 	Sec. 9. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
64.2 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
64.3 	disbursement of an appropriation made from the fund to the commissioner of transportation 
64.4 	for grants to subdivisions of the state, the commissioner shall must certify that:
64.5 	(1) that the project for which the grant is made has been reviewed as provided in 
64.6 	subdivision 4;
64.7 	(2) that the project conforms to the program authorized by the appropriation law and 
64.8 	rules adopted by the Department of Transportation consistent therewith; and
64.9 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
64.10 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
64.11 	subdivision, or by a grant from an agency of the federal government, within the amount of 
64.12 	funds then appropriated to that agency and allocated by it to projects within the state, and 
64.13 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
64.14 	use all funds so made available exclusively for the project, and to pay any additional amount 
64.15 	by which the cost exceeds the estimate through appropriation to the construction fund of 
64.16 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

64.17 	Sec. 10. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
64.18 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
64.19 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
64.20 	less for design, engineering, and construction of bridges on city streets.
64.21 	(b) Grants under this subdivision are subject to the procedures and criteria established 
64.22 	under subdivisions 5, 6, and 7.
64.23 	(c) (b) Grants may be used for:
64.24 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
64.25 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
64.26 	(3) 100 percent of the bridge construction work costs.

64.27 	Sec. 11. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
64.28 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
64.29 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
64.30 	eligible for a grant under this subdivision, the project must produce a bridge structure:
65.1 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
65.2 	(2) whose failure of a main component will not result in the collapse of the bridge.
65.3 	(b) A grant under this subdivision is subject to the procedures and criteria established 
65.4 	under subdivisions 5 and 6.

65.5 	Sec. 12. Minnesota Statutes 2016, section 174.50, is amended by adding a subdivision to 
65.6 	read:
65.7 		Subd. 6d.Major local bridges. For an appropriation made specifically for purposes of 
65.8 	this subdivision, the commissioner may make a grant under this section to any political 
65.9 	subdivision for replacement or rehabilitation of a major local bridge in which the grant 
65.10 	award is $7,000,000 or more. If in any year money appropriated for local bridge replacement 
65.11 	and rehabilitation projects under this subdivision remains available after all identified and 
65.12 	eligible projects under this subdivision have been funded, the commissioner may use 
65.13 	remaining funds to make grants under this section for less than $7,000,000.

65.14 	Sec. 13. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
65.15 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
65.16 	shall develop rules, procedures for application for grants, conditions of grant administration, 
65.17 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
65.18 	cooperation with road authorities of political subdivisions, for use in the administration of 
65.19 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
65.20 	Grants under this section are subject to the procedures and criteria established in this 
65.21 	subdivision and in subdivisions 5 and 6.
65.22 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
65.23 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
65.24 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
65.25 	must be ten feet or more in length.
65.26 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
65.27 	road authorities, establish a minimum distance between any two bridges that cross over the 
65.28 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
65.29 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
65.30 	distance requirement or procedures for obtaining a variance.
65.31 	(d) Political subdivisions may use grants made under this section to construct or 
65.32 	reconstruct bridges, including but not limited to:
66.1 	(1) matching federal aid grants to construct or reconstruct key bridges;
66.2 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
66.3 	replacement but where no replacement will be made; and
66.4 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
66.5 	existing bridge if the commissioner determines that the bridge is deficient, and that 
66.6 	construction of the road or street is more economical than replacement of the existing bridge.
66.7 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
66.8 	fund shall be segregated from the highway tax user distribution fund and other funds created 
66.9 	by article XIV of the Minnesota Constitution.
66.10 	(f) Except as provided in subdivision 6d, the commissioner is prohibited from awarding 
66.11 	a grant under this section for a local bridge replacement or rehabilitation project with a total 
66.12 	project cost estimate of $7,000,000 or more.
66.13 	(g) Notwithstanding paragraph (f), the commissioner may award a grant under this 
66.14 	section for a portion of a local bridge replacement or rehabilitation project with a total 
66.15 	project cost estimate of $7,000,000 or more if every other local bridge replacement or 
66.16 	rehabilitation project on the commissioner's priority list with a total project cost estimate 
66.17 	of less than $7,000,000 has been fully funded.

66.18 	Sec. 14. [219.016] HAZARDOUS MATERIALS RAIL SAFETY.
66.19 		Subdivision 1.Program established. A hazardous materials rail safety program is 
66.20 	established for the purpose of reducing the risks associated with the transportation of oil, 
66.21 	ethanol, and other hazardous material by rail.
66.22 		Subd. 2.Accounts established. Two hazardous materials rail safety program accounts 
66.23 	are created, one in the special revenue fund and one in the bond proceeds fund. The account 
66.24 	in the special revenue fund consists of money as provided by law, and any other money 
66.25 	donated, allotted, transferred, or otherwise provided to the account. Money in each account 
66.26 	is appropriated to the commissioner of transportation to make grants as provided in this 
66.27 	section.
66.28 		Subd. 3.Eligible applicant. A county, statutory or home rule charter city, or town that 
66.29 	is responsible for establishing and maintaining public highway-rail grade crossings on rail 
66.30 	corridors transporting crude oil and other hazardous materials may apply to the commissioner 
66.31 	for financial assistance under this section.
67.1 		Subd. 4.Eligible project. (a) A project is eligible for a grant from the account in the 
67.2 	bond proceeds fund if the project is for the acquisition or betterment of public land, buildings, 
67.3 	and other public improvements of a capital nature within the meaning of the Minnesota 
67.4 	Constitution, article XI, section 5, clause (a) or (i), including capital costs associated with 
67.5 	hazardous materials rail safety projects on public highway-rail grade crossings. Qualifying 
67.6 	capital costs include but are not limited to upgrades to existing protection systems, the 
67.7 	closing of crossings and necessary roadwork, and reconstruction of at-grade crossings to 
67.8 	full grade separations.
67.9 	(b) A project is eligible for a grant from the account in the special revenue fund if it is 
67.10 	for purposes described in paragraph (a) or other capital facility improvement purposes that 
67.11 	support the purposes for which this grant program is established, including capital costs 
67.12 	associated with planning, engineering, administration, and construction of public highway-rail 
67.13 	grade crossing improvements on rail corridors transporting crude oil and other hazardous 
67.14 	materials. Improvements may include upgrades to existing protection systems, the closing 
67.15 	of crossings and necessary roadwork, and reconstruction of at-grade crossings to full grade 
67.16 	separations.
67.17 		Subd. 5.Grants; criteria for grant award. The commissioner must consider the 
67.18 	following criteria to evaluate applications for a grant award under this section:
67.19 	(1) whether the crossing was identified as a potential candidate for grade separation in 
67.20 	the Department of Transportation's crude by rail grade crossing study (Improvements to 
67.21 	Highway Grade Crossings and Rail Safety, December 2014);
67.22 	(2) roadway traffic volumes and speeds;
67.23 	(3) train volumes and speeds;
67.24 	(4) adjacent land use;
67.25 	(5) crash history;
67.26 	(6) use of the crossing by emergency vehicles;
67.27 	(7) use of the crossing by vehicles carrying hazardous materials; and
67.28 	(8) local financial contributions to the project.
67.29 		Subd. 6.Process. The commissioner must develop forms and procedures for soliciting 
67.30 	and reviewing applications for grants under this section. An applicant must apply for a grant 
67.31 	in the manner and at the times determined by the commissioner.
68.1 		Subd. 7.Grant cancellation. If, five years after execution of a grant agreement, the 
68.2 	commissioner determines that the grantee has not proceeded in a timely manner with 
68.3 	implementation of the project funded, the commissioner must cancel the grant and the 
68.4 	grantee must repay to the commissioner all grant money paid to the grantee. Section 16A.642 
68.5 	applies to any appropriations made from the bond proceeds fund to the commissioner under 
68.6 	this section that have not been awarded as financial assistance.

68.7 	Sec. 15. Minnesota Statutes 2016, section 326B.124, is amended to read:
68.8 	326B.124 EXEMPTIONS.
68.9 	(a) The commissioner may exempt a part of a historic building occupied by the state 
68.10 	from the state or another building, fire, safety, or other code if the exemption is necessary 
68.11 	to preserve the historic or esthetic character of the building or to prevent theft, vandalism, 
68.12 	terrorism, or another crime. When the commissioner grants an exemption, the commissioner 
68.13 	shall consider providing equivalent protection. A certificate of occupancy may not be denied 
68.14 	because of an exemption under this section.
68.15 	(b) The house of representatives and senate chambers located in the State Capitol are 
68.16 	exempt from any State Building Code and State Fire Code requirements pertaining to: (1) 
68.17 	exit sign placement at exit access doors; and (2) occupancy limit signs. The house of 
68.18 	representatives and senate may install exit and occupancy limit signs within the house of 
68.19 	representatives and senate chambers located in the State Capitol that are minimal in size 
68.20 	and historic in appearance as appropriate for each chamber. Any sign installed by the house 
68.21 	of representatives or the senate under the authority provided in this paragraph is not subject 
68.22 	to the approval of the commissioner.

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

68.24 	Sec. 16. Minnesota Statutes 2016, section 446A.072, is amended to read:
68.25 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING PROGRAM.
68.26 		Subdivision 1.Establishment of program. The authority will establish a wastewater
68.27 	water infrastructure funding program to provide supplemental assistance to governmental 
68.28 	units receiving funding through the clean water revolving fund program, the drinking water 
68.29 	revolving fund program, or the United States Department of Agriculture Rural Economic 
68.30 	and Community Development's (USDA/RECD) Water and Waste Disposal Loans and 
68.31 	Grants program for the predesign, design, and construction of municipal wastewater treatment
68.32 	and drinking water systems, including purchase of land and easements. The purpose of the 
69.1 	program is to assist governmental units demonstrating financial need to build cost-effective 
69.2 	projects to address existing environmental or public health problems. To implement the 
69.3 	program, the authority shall establish a wastewater water infrastructure fund to provide 
69.4 	grants and loans for the purposes authorized under title VI of the Federal Water Pollution 
69.5 	Control Act and the federal Safe Drinking Water Act. The fund shall be credited with all 
69.6 	investment income from the fund and all repayments of loans, grants, and penalties.
69.7 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
69.8 	assistance, as provided in subdivision 5a to governmental units:
69.9 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
69.10 	the Department of Health's project priority list;
69.11 	(2) that demonstrate their projects are a cost-effective solution to an existing 
69.12 	environmental or public health problem; and
69.13 	(3) whose projects are approved by the USDA/RECD or certified by the commissioner 
69.14 	of the Pollution Control Agency or the Department of Health.
69.15 	(b) For a governmental unit receiving grant funding from the USDA/RECD, applications 
69.16 	must be made to the USDA/RECD with additional information submitted to the authority 
69.17 	as required by the authority. Eligible project costs and affordability criteria shall be 
69.18 	determined by the USDA/RECD.
69.19 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
69.20 	application must be made to the authority on forms prescribed by the authority for the clean 
69.21 	water revolving fund program or the drinking water revolving fund program with additional 
69.22 	information as required by the authority. In accordance with section 116.182, the Pollution 
69.23 	Control Agency or Department of Health shall:
69.24 	(1) calculate the essential project component percentage based on the portion of project 
69.25 	costs necessary to convey or treat the existing wastewater flows and loadings or, for drinking 
69.26 	water projects, to provide safe drinking water to meet existing needs, which must be 
69.27 	multiplied by the total project cost to determine the eligible project cost for the program 
69.28 	under this section; and
69.29 	(2) review and certify approved projects to the authority.
69.30 	(d) Each fiscal year the authority shall make funds available for projects based on their 
69.31 	ranking on the Pollution Control Agency's project priority list or the Department of Health's 
69.32 	project priority list. The authority shall reserve funds for a project when the applicant receives 
69.33 	a funding commitment from the United States Department of Agriculture Rural Development 
70.1 	(USDA/RECD) or submits plans and specifications to the project is certified by the Pollution 
70.2 	Control Agency or Department of Health. Funds must be reserved in an amount based on 
70.3 	the project cost estimate submitted to the authority prior to the appropriation of the funds 
70.4 	and awarded based on the lesser of that amount or the as-bid cost when the project is certified 
70.5 	or the as-bid cost, whichever is less.
70.6 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
70.7 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
70.8 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
70.9 	unit may not receive a grant under this paragraph for more than $4,000,000 $5,000,000 per 
70.10 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
70.11 	approved by law.
70.12 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
70.13 	section 446A.07, the authority may provide assistance under this section in the form of a 
70.14 	grant if the average annual residential wastewater system cost after completion of the project 
70.15 	would otherwise exceed 1.4 percent of the median household income of the project service 
70.16 	area. In determining whether the average annual residential wastewater system cost would 
70.17 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
70.18 	operating, and maintaining the wastewater system, including existing wastewater debt 
70.19 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
70.20 	service costs for the proposed project are calculated based on the maximum loan term 
70.21 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
70.22 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
70.23 	annual residential wastewater system cost to 1.4 percent of median household income in 
70.24 	the project service area, to a maximum of $4,000,000 $5,000,000 per project or $15,000
70.25 	$20,000 per existing connection, whichever is less, unless specifically approved by law. 
70.26 	The eligible project cost is determined by multiplying the total project costs minus any other 
70.27 	grants by the essential project component percentage calculated under subdivision 3, 
70.28 	paragraph (c), clause (1). In no case may the amount of the grant exceed 80 percent of the 
70.29 	eligible project cost.
70.30 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
70.31 	under section 446A.081, the authority may provide assistance under this section in the form 
70.32 	of a grant if the average annual residential drinking water system cost after completion of 
70.33 	the project would otherwise exceed 1.2 percent of the median household income of the 
70.34 	project service area. In determining whether the average annual residential drinking water 
70.35 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
71.1 	with building, operating, and maintaining the drinking water system, including existing 
71.2 	drinking water debt service, debt service on the eligible project cost, and operation and 
71.3 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
71.4 	maximum loan term permitted for the drinking water revolving fund loan under section 
71.5 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
71.6 	the amount needed to reduce the average annual residential drinking water system cost to 
71.7 	1.2 percent of median household income in the project service area, to a maximum of 
71.8 	$5,000,000 per project or $20,000 per existing connection, whichever is less, unless 
71.9 	specifically approved by law. The eligible project cost is determined by multiplying the 
71.10 	total project costs minus any other grants by the essential project component percentage 
71.11 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
71.12 	grant exceed 80 percent of the eligible project cost.
71.13 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a governmental 
71.14 	unit receiving supplemental assistance under this section after January 1, 2002, if the authority 
71.15 	determines that the governmental unit's construction and installation costs are significantly 
71.16 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
71.17 	limits that are more stringent than secondary treatment, the maximum award under this 
71.18 	section shall not be more than $25,000 per existing connection.
71.19 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan under 
71.20 	subdivision 5a that levies special assessments to repay the loan under subdivision 5a or 
71.21 	section 446A.07 may defer payment of such assessments under the provisions of sections 
71.22 	435.193 to 435.195.
71.23 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this section 
71.24 	by the authority to recipients must be made for eligible project costs as incurred by the 
71.25 	recipients, and must be made by the authority in accordance with the project financing 
71.26 	agreement and applicable state and federal laws and rules governing the payments.
71.27 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 475.54, 
71.28 	subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund 
71.29 	redemptions of the loans under this section. A governmental unit receiving a loan under 
71.30 	this section shall repay the loan in semiannual payment amounts determined by the authority. 
71.31 	The payment amount must be based on the average payments on the governmental unit's 
71.32 	clean water revolving fund loan or, if greater, the minimum amount required to fully repay 
71.33 	the loan by the maturity date. Payments must begin within one year of the date of the 
71.34 	governmental unit's final payment on the clean water revolving fund loan. The final maturity 
71.35 	date of the loan under this section must be no later than 20 years from the date of the first 
72.1 	payment on the loan under this section and no later than 40 years from the date of the first 
72.2 	payment on the clean water revolving fund loan.
72.3 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
72.4 	only after applying for grant funding from other sources and funding has been obtained, 
72.5 	rejected, or the authority has determined that the potential funding is unlikely.
72.6 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce the 
72.7 	sewer service charges of a significant wastewater contributor industrial user that has a 
72.8 	separate service charge agreement with the recipient, or a single user that has caused the 
72.9 	need for the project or whose current or projected flow and load exceed usage exceeds
72.10 	one-half of the current wastewater treatment plant's or drinking water system capacity.
72.11 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the authority, 
72.12 	in conjunction with the Pollution Control Agency and the Department of Health, shall 
72.13 	prepare a report to the Finance Division of the senate Environment and Natural Resources 
72.14 	Committee and the house of representatives Environment and Natural Resources Finance 
72.15 	Committee on wastewater and drinking water funding assistance needs of governmental 
72.16 	units under this section.
72.17 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or grant 
72.18 	under this section shall establish a system replacement fund and shall annually deposit a 
72.19 	minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, or 
72.20 	replacement of the treatment wastewater or drinking water system, or replacement of the 
72.21 	treatment system at the end of its useful life. Money must remain in the account for the life 
72.22 	of the corresponding project loan from the authority or USDA/RECD, unless use of the 
72.23 	fund is approved in writing by the authority for major rehabilitation, expansion, or 
72.24 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
72.25 	during the life of the loan, each recipient shall submit a report to the authority regarding the 
72.26 	amount deposited and the fund balance for the prior calendar year. A recipient is not required 
72.27 	to maintain a fund balance greater than the amount of the grant received. Failure to comply 
72.28 	with the requirements of this subdivision shall result in the authority assessing a penalty 
72.29 	fee to the recipient equal to one percent of the supplemental assistance amount for each 
72.30 	year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
72.31 	required constitutes a default on the loan.
72.32 		Subd. 14.Consistency with land use plans. A governmental unit applying for a project 
72.33 	in an unsewered area shall include in its application to the authority a certification from the 
72.34 	county in which the project is located that:
73.1 	(1) the project is consistent with the county comprehensive land use plan, if the county 
73.2 	has adopted one;
73.3 	(2) the project is consistent with the county water plan, if the county has adopted one; 
73.4 	and
73.5 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
73.6 	exceed the requirements of Minnesota Rules, part 7082.0050.

73.7 	Sec. 17. Minnesota Statutes 2016, section 446A.073, is amended to read:
73.8 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
73.9 		Subdivision 1.Program established. When money is appropriated for grants under this 
73.10 	program, the authority shall award grants up to a maximum of $3,000,000 $7,000,000 to 
73.11 	governmental units to cover up to one-half 80 percent of the cost of water infrastructure 
73.12 	projects made necessary by:
73.13 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
73.14 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
73.15 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
73.16 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
73.17 	Pollution Control Agency;
73.18 	(3) any other water quality-based effluent limit established under section 115.03, 
73.19 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution 
73.20 	Control Agency that exceeds secondary treatment limits; or
73.21 	(4) a total nitrogen concentration or mass limit of that requires discharging ten milligrams 
73.22 	per liter or less for a land-based treatment system at permitted design flow.
73.23 		Subd. 2.Grant application. Application for a grant must be made to the authority on 
73.24 	forms prescribed by the authority for the total maximum daily load grant program, with 
73.25 	additional information as required by the authority, including a project schedule and cost 
73.26 	estimate for the work necessary to comply with the point source wasteload allocation
73.27 	requirements listed in subdivision 1. The Pollution Control Agency shall:
73.28 	(1) in accordance with section 116.182, calculate the essential project component 
73.29 	percentage, which must be multiplied by the total project cost to determine the eligible 
73.30 	project cost; and
73.31 	(2) review and certify to the authority those projects that have plans and specifications 
73.32 	approved under section 115.03, subdivision 1, paragraph (f).
74.1 		Subd. 3.Project priorities. When money is appropriated for grants under this program,
74.2 	The authority shall accept applications under this program during the month of July and. 
74.3 	When a project is certified by the Pollution Control Agency the authority shall reserve 
74.4 	money for projects expected to proceed with construction by the end of the fiscal year the 
74.5 	project in the order listed on the Pollution Control Agency's project priority list and in an 
74.6 	amount based on the cost estimate submitted to the authority in the grant application when 
74.7 	the project is certified or the as-bid costs, whichever is less. Notwithstanding Minnesota 
74.8 	Rules, chapter 7077, the Pollution Control Agency may rank a drinking water infrastructure 
74.9 	project on the agency's project priority list if the project is necessary to meet an applicable 
74.10 	requirement in subdivision 1.
74.11 		Subd. 4.Grant approval. The authority must make a grant for an eligible project only 
74.12 	after:
74.13 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
74.14 	(2) the Pollution Control Agency has approved the as-bid costs and certified the grant 
74.15 	eligible portion of the project; and
74.16 	(3) the authority has determined that the additional financing necessary to complete the 
74.17 	project has been committed from other sources.
74.18 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible project 
74.19 	costs as incurred by the governmental unit and in accordance with a project financing 
74.20 	agreement and applicable state and federal laws and rules governing the payments.

74.21 	Sec. 18. Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:
74.22 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be used 
74.23 	as provided in the act, including the following uses:
74.24 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
74.25 	systems for drinking water systems, where the debt was incurred after the date of enactment 
74.26 	of the act, for the purposes of construction of the necessary improvements to comply with 
74.27 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
74.28 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
74.29 	access or reduce interest rates;
74.30 	(3) to provide a source of revenue or security for the payment of principal and interest 
74.31 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
74.32 	deposited in the fund;
75.1 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
75.2 	governmental unit or state agency;
75.3 	(5) to earn interest on fund accounts;
75.4 	(6) to pay the reasonable costs incurred by the authority, the Department of Employment 
75.5 	and Economic Development, and the Department of Health for conducting activities as 
75.6 	authorized and required under the act up to the limits authorized under the act;
75.7 	(7) to develop and administer programs for water system supervision, source water 
75.8 	protection, and related programs required under the act;
75.9 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal forgiveness 
75.10 	or grants to the extent permitted under the federal Safe Drinking Water Act and other federal 
75.11 	law, based on the criteria and requirements established for drinking water projects under 
75.12 	the water infrastructure funding program under section 446A.072;
75.13 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
75.14 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
75.15 	or energy efficiency improvements, or other environmentally innovative activities; and
75.16 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up to 
75.17 	a maximum of $10,000 for projects needed to comply with national primary drinking water 
75.18 	standards for an existing community or noncommunity public water system.
75.19 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be provided 
75.20 	if the average annual residential drinking water system cost after completion of the project 
75.21 	would otherwise exceed 1.2 percent of the median household income in the project service 
75.22 	area. In determining whether the average annual residential drinking water system cost 
75.23 	would exceed 1.2 percent, the authority must consider the total costs associated with building, 
75.24 	operating, and maintaining the drinking water system, including debt service and operation 
75.25 	and maintenance costs. Debt service costs for the proposed project must be calculated based 
75.26 	on the maximum loan term permitted for the drinking water revolving fund loan under this 
75.27 	section. The amount of the principal forgiveness or grant must be equal to 80 percent of the 
75.28 	amount needed to reduce the average annual residential drinking water system cost to 1.2 
75.29 	percent of median household income in the project service area, to a maximum of $4,000,000 
75.30 	or $15,000 per connection, whichever is less, and not to exceed 80 percent of the total project 
75.31 	cost.
75.32 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not 
75.33 	exceed 25 percent of the eligible project costs as determined by the Department of Health 
76.1 	for project components directly related to green infrastructure, water or energy efficiency 
76.2 	improvements, or other environmentally innovative activities, up to a maximum of 
76.3 	$1,000,000.
76.4 	(d) The authority may reduce the percentage of median household income at which a 
76.5 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which principal 
76.6 	forgiveness or grants could be provided under paragraph (b) if it determines that the federal 
76.7 	money allotted to the state cannot be fully utilized without the reduction. If it determines 
76.8 	that the reduction is necessary to fully utilize the federal money, the authority must effect 
76.9 	the change through its approval of the annual intended use plan.

76.10 	Sec. 19. Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:
76.11 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
76.12 	principal amount that the authority determines necessary to provide sufficient funds for 
76.13 	achieving its purposes, including the making of loans and purchase of securities, the payment 
76.14 	of interest on bonds of the authority, the establishment of reserves to secure its bonds, the 
76.15 	payment of fees to a third party providing credit enhancement, and the payment of all other 
76.16 	expenditures of the authority incident to and necessary or convenient to carry out its corporate 
76.17 	purposes and powers, but not including the making of grants. Bonds of the authority may 
76.18 	be issued as bonds or notes or in any other form authorized by law. The principal amount 
76.19 	of bonds issued and outstanding under this section at any time may not exceed 
76.20 	$1,500,000,000 $2,000,000,000, excluding bonds for which refunding bonds or crossover 
76.21 	refunding bonds have been issued, and excluding any bonds issued for the credit enhanced 
76.22 	bond program or refunding or crossover refunding bonds issued under the program. The 
76.23 	principal amount of bonds issued and outstanding under section 446A.087, may not exceed 
76.24 	$500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds 
76.25 	have been issued.

76.26 	Sec. 20. Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:
76.27 		Subd. 2a.Additional authorization. In addition to the amount authorized in subdivision 
76.28 	2, the agency may issue up to $80,000,000 $95,000,000 of housing infrastructure bonds in 
76.29 	one or more series to which the payments made under this section may be pledged.

77.1 	Sec. 21. Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:
77.2 		Subd. 2b.Additional authorization. In addition to the amount authorized in subdivisions 
77.3 	2 and 2a, the agency may issue up to $10,000,000 $15,000,000 of housing infrastructure 
77.4 	bonds in one or more series to which the payments made under this section may be pledged.

77.5 	Sec. 22. Minnesota Statutes 2016, section 462A.37, is amended by adding a subdivision 
77.6 	to read:
77.7 		Subd. 2c.Additional authorization. In addition to the amount authorized in subdivisions 
77.8 	2, 2a, and 2b, the agency may issue up to $35,000,000 in housing infrastructure bonds in 
77.9 	one or more series to which the payments under this section may be pledged.

77.10 	Sec. 23. Minnesota Statutes 2016, section 462A.37, subdivision 5, is amended to read:
77.11 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
77.12 	commissioner of management and budget the actual amount of annual debt service on each 
77.13 	series of bonds issued under subdivisions 2a and, 2b, and 2c.
77.14 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
77.15 	bonds issued under subdivision 2a remain outstanding, the commissioner of management 
77.16 	and budget must transfer to the housing infrastructure bond account established under section 
77.17 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 
77.18 	annually. The amounts necessary to make the transfers are appropriated from the general 
77.19 	fund to the commissioner of management and budget.
77.20 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
77.21 	bonds issued under subdivision 2b remain outstanding, the commissioner of management 
77.22 	and budget must transfer to the housing infrastructure bond account established under section 
77.23 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 
77.24 	annually. The amounts necessary to make the transfers are appropriated from the general 
77.25 	fund to the commissioner of management and budget.
77.26 	(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure 
77.27 	bonds issued under subdivision 2c remain outstanding, the commissioner of management 
77.28 	and budget must transfer to the housing infrastructure bond account established under section 
77.29 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000 
77.30 	annually. The amounts necessary to make the transfers are appropriated from the general 
77.31 	fund to the commissioner of management and budget.
78.1 	(e) The agency may pledge to the payment of the housing infrastructure bonds the 
78.2 	payments to be made by the state under this section.

78.3 	Sec. 24. Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 2013, 
78.4 	chapter 136, section 13, is amended to read:

78.5
78.6	Subd. 6.Systemwide Redevelopment, Reuse, or 
Demolition
 				5,000,000
	
78.7 	To abate hazardous materials, design, 
78.8 	construct, or improve basic infrastructure, 
78.9 	including sanitary and storm sewer and water 
78.10 	lines, public streets, curb, gutter, street lights, 
78.11 	or sidewalks, to make improvements for 
78.12 	building envelope and structural integrity for 
78.13 	the purposes of stabilizing the buildings for 
78.14 	sale, demolish all or portions of surplus, 
78.15 	nonfunctional, or deteriorated facilities and 
78.16 	infrastructure or to renovate surplus, 
78.17 	nonfunctional, or deteriorated facilities and 
78.18 	infrastructure to facilitate redevelopment of 
78.19 	Department of Human Services campuses that 
78.20 	the commissioner of administration is 
78.21 	authorized to convey to a local unit of 
78.22 	government under Laws 2005, chapter 20, 
78.23 	article 1, section 46, or other law. These 
78.24 	projects must facilitate the redevelopment or 
78.25 	reuse of these campuses and must be 
78.26 	implemented consistent with the 
78.27 	comprehensive redevelopment plans 
78.28 	developed and approved under Laws 2003, 
78.29 	First Special Session chapter 14, article 6, 
78.30 	section 64, subdivision 2, unless expressly 
78.31 	provided otherwise. If a surplus campus is sold 
78.32 	or transferred to a local unit of government, 
78.33 	unspent portions of this appropriation may be 
78.34 	granted to that local unit of government for 
78.35 	the purposes stated in this subdivision. 
79.1 	Notwithstanding the inclusion of the 
79.2 	unencumbered and unobligated balance of the 
79.3 	bond sale authorization and appropriation of 
79.4 	bond proceeds in this subdivision in the report 
79.5 	submitted to the legislature in January 2017 
79.6 	pursuant to Minnesota Statutes, section 
79.7 	16A.642, the unencumbered and unobligated 
79.8 	balance of the bond sale authorization and 
79.9 	appropriation of bond proceeds in this 
79.10 	subdivision are, estimated to be $1,991,456.32, 
79.11 	is reauthorized and available until December 
79.12 	31, 2016 2020.

79.13 	Sec. 25. Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:

79.14
79.15	Subd. 3.Dam Repair, Reconstruction, and 
Removal
 				3,000,000
	
79.16 	To renovate or remove publicly owned dams. 
79.17 	The commissioner shall determine project 
79.18 	priorities as appropriate under Minnesota 
79.19 	Statutes, sections 103G.511 and 103G.515.
79.20 	Notwithstanding the match requirements in 
79.21 	Minnesota Statutes, section 103G.511, a grant 
79.22 	to the city of Lanesboro does not require any 
79.23 	nonstate match.

79.24 	Sec. 26. Laws 2012, chapter 293, section 17, subdivision 4, is amended to read:

79.25	Subd. 4.Phillips Community Center
 				1,750,000
	
79.26 	For a grant to the Minneapolis Park and 
79.27 	Recreation Board to predesign, design, 
79.28 	engineer, reconstruct, renovate, furnish, and 
79.29 	equip the Phillips Community Center indoor 
79.30 	competitive swimming pool and to predesign, 
79.31 	design, engineer, and construct an additional 
79.32 	indoor multipurpose family pool and facilities 
79.33 	associated with an aquatic center in the 
80.1 	community center, subject to Minnesota 
80.2 	Statutes, section 16A.695.
80.3 	This appropriation is not available until the 
80.4 	commissioner determines that at least 
80.5 	$350,000 is committed from nonstate sources.
80.6 	Notwithstanding Minnesota Statutes, section 
80.7 	16A.642, the bond sale authorization and 
80.8 	appropriation of bond proceeds for this project 
80.9 	are available until December 31, 2022.

80.10 	Sec. 27. Laws 2014, chapter 294, article 1, section 7, subdivision 11, is amended to read:

80.11	Subd. 11.Central Minnesota Regional Parks
 				500,000
	
80.12 	For a grant to the city of Sartell to acquire land 
80.13 	and develop recreation facilities at Sauk River 
80.14 	Regional Park in the city of Sartell and to 
80.15 	acquire up to 68 acres of land located along 
80.16 	the Sauk River near the confluence of the 
80.17 	Mississippi to serve as part of the Central 
80.18 	Minnesota Regional Parks and Trails.
80.19 	Notwithstanding Minnesota Statutes, section 
80.20 	16A.642, the bond sale authorization and 
80.21 	appropriation of bond proceeds for this project 
80.22 	are available until June 30, 2020.

80.23 	Sec. 28. Laws 2014, chapter 294, article 1, section 7, subdivision 15, is amended to read:

80.24	Subd. 15.Grant County Trail Grant
 				100,000
	
80.25 	For a grant to Grant County for predesign, 
80.26 	acquisition, and or improvements for a trail 
80.27 	from the city of Elbow Lake to Pomme de 
80.28 	Terre Lake. The commissioner of natural 
80.29 	resources may allocate any amount not needed 
80.30 	to complete this project to state trail 
80.31 	acquisition and improvements under 
80.32 	Minnesota Statutes, section 85.015.

81.1 	Sec. 29. Laws 2014, chapter 294, article 1, section 17, subdivision 6, is amended to read:

81.2
81.3	Subd. 6.Inver Grove Heights - Heritage Village 
Park
 				2,000,000
	
81.4 	$1,500,000 of this appropriation is for a grant 
81.5 	to the city of Inver Grove Heights and 
81.6 	$500,000 of this appropriation is for a grant 
81.7 	to Dakota County. This appropriation is for 
81.8 	public infrastructure improvements and land 
81.9 	acquisition in and adjacent to the Heritage 
81.10 	Village Park, the Mississippi River Trail, and 
81.11 	the Rock Island Swing Bridge. These 
81.12 	improvements will include but are not limited 
81.13 	to motor vehicle access, utility service, 
81.14 	stormwater treatment, and trail and sidewalk 
81.15 	connections. This appropriation is not 
81.16 	available until the commissioner of 
81.17 	management and budget has determined that 
81.18 	at least an equal amount has been committed 
81.19 	to the project from nonstate sources.

81.20 	Sec. 30. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to read:

81.21
81.22	Subd. 12.West St. Paul - North UrbanRiver to 
River Regional Trail Bridge Greenway
 				2,000,000
	
81.23 	For a grant to the city of West St. Paul to 
81.24 	predesign, design, and construct a pedestrian 
81.25 	bridge for the North Urban Regional Trail as 
81.26 	an overpassgrade separated crossing of Robert 
81.27 	Street in the area near Wentworth Avenue in 
81.28 	West St. Paul for the River to River Regional 
81.29 	Greenway. This appropriation may also be 
81.30 	used to acquire property or purchase 
81.31 	rights-of-way needed for bridge construction. 
81.32 	A nonstate match is not required.

82.1 	Sec. 31. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 3, 
82.2 	is amended to read:

82.3	Subd. 3.Local Road Improvement Fund Grants
 				8,910,000
	
82.4 	(a) From the bond proceeds account in the 
82.5 	state transportation fund as provided in 
82.6 	Minnesota Statutes, section 174.50, for 
82.7 	construction and reconstruction of local roads 
82.8 	with statewide or regional significance under 
82.9 	Minnesota Statutes, section 174.52, 
82.10 	subdivision 4, or for grants to counties to assist 
82.11 	in paying the costs of rural road safety capital 
82.12 	improvement projects on county state-aid 
82.13 	highways under Minnesota Statutes, section 
82.14 	174.52, subdivision 4a.
82.15 	(b) This appropriation includes $850,000 for 
82.16 	a grant to the city of Sandstone for predesign, 
82.17 	design, engineering, and construction of a road 
82.18 	extending south off of marked Trunk Highway 
82.19 	23 across from Lundorff Drive to the airport 
82.20 	area, and including a bridge over Skunk Creek 
82.21 	in Sandstone, in order to facilitate repurposing 
82.22 	of an area of the airport into a business park. 
82.23 	This appropriation is not available until the 
82.24 	commissioner of management and budget 
82.25 	determines that sufficient resources to 
82.26 	complete the project are committed to it from 
82.27 	other sources, including any funds made 
82.28 	available from the commissioner of 
82.29 	transportation.
82.30 	(c) This appropriation includes $3,770,000 for 
82.31 	a grant to Kandiyohi County for construction 
82.32 	and reconstruction of local roads to facilitate 
82.33 	the construction of highway-rail grade 
82.34 	separations at U.S. Highway 12 and Minnesota 
82.35 	Highway 40 as part ofin conjunction with the 
83.1 	Willmar Wye project as well as to re-establish 
83.2 	the local road network on the southwest side 
83.3 	of Willmar.

83.4 	Sec. 32. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7, 
83.5 	is amended to read:

83.6	Subd. 7.Richfield - 77th Street Underpass
 				10,000,000
	
83.7 	For a grant to the city of Richfield for 
83.8 	right-of-way acquisition and construction of
83.9 	for an extension of 77th Street under marked 
83.10 	Trunk Highway 77/Cedar Avenue in the city 
83.11 	of Richfield to provide local and regional 
83.12 	access between Richfield, the Minneapolis/St. 
83.13 	Paul International Airport, the city of 
83.14 	Bloomington, and the Mall of America. After 
83.15 	right-of-way acquisition is completed, the city 
83.16 	may use any remaining money appropriated 
83.17 	in this subdivision for construction of the 
83.18 	extension. Notwithstanding Minnesota 
83.19 	Statutes, section 16A.642, the bond sale 
83.20 	authorization and appropriation of bond 
83.21 	proceeds for the project in this subdivision are 
83.22 	available until December 31, 2021.

83.23 	Sec. 33. REVISOR'S INSTRUCTION.
 83.24 	In Minnesota Statutes, the revisor of statutes shall replace references to Minnesota 
83.25 	Statutes, section 123A.446, with Minnesota Statutes, section 123A.445.

83.26 	Sec. 34.  REPEALER.
 83.27 	Minnesota Statutes 2016, section 123A.446, is repealed.

83.28 	Sec. 35. EFFECTIVE DATE.
 83.29 	Except as otherwise provided, this article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 17-4719 

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.