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 for other improvements of a capital nature with certain 
1.4 	conditions; establishing new programs and modifying existing programs; modifying 
1.5 	prior appropriations; authorizing the sale and issuance of state bonds; appropriating 
1.6 	money;amending Minnesota Statutes 2024, sections 142A.46, subdivision 1; 
1.7 	473.5491, subdivisions 1, 2, 4; Laws 2023, chapter 71, article 1, section 14, 
1.8 	subdivision 21; proposing coding for new law in Minnesota Statutes, chapters 
1.9 	16B; 115B; 446A; repealing Minnesota Statutes 2024, sections 16A.662; 116J.417, 
1.10 	subdivision 9.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	APPROPRIATIONS

1.14	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.15 	(a) The sums shown in the column under "Appropriations" are appropriated from the 
1.16 	bond proceeds fund, or another named fund, to the state agencies or officials indicated, to 
1.17 	be spent for public purposes. Appropriations of bond proceeds must be spent as authorized 
1.18 	by the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public 
1.19 	land and buildings and other public improvements of a capital nature, or as authorized by 
1.20 	the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless 
1.21 	otherwise specified, money appropriated in this act:
1.22 	(1) may be used to pay state agency staff costs that are attributed directly to the capital 
1.23 	program or project in accordance with accounting policies adopted by the commissioner of 
1.24 	management and budget;
2.1 	(2) is available until the project is completed or abandoned subject to Minnesota Statutes, 
2.2 	section 16A.642;
2.3 	(3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, 
2.4 	should not be used for projects that can be financed within a reasonable time frame under 
2.5 	Minnesota Statutes, section 16B.322 or 16C.144;
2.6 	(4) is subject to the policies and procedures adopted by the commissioner of management 
2.7 	and budget or otherwise specified in applicable law; and
2.8 	(5) is available for a grant to a political subdivision after the commissioner of management 
2.9 	and budget determines that an amount sufficient to complete the project as described in this 
2.10 	act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
2.11 	(b) Unless otherwise specified, appropriations in this article from the general fund or 
2.12 	from the trunk highway fund are made in fiscal year 2026 and are onetime appropriations.
2.13 	(c) Recipients of grants from money appropriated in this article must demonstrate to the 
2.14 	commissioner of the agency making the grant that the recipient has the ability and a plan 
2.15 	to fund the program intended for the facility. This paragraph does not apply to state agencies.

2.16						APPROPRIATIONS

2.17	Sec. 2. UNIVERSITY OF MINNESOTA

2.18	Subdivision 1.Total Appropriation
 			$
	40,000,000
	
2.19 	To the Board of Regents of the University of 
2.20 	Minnesota for the purposes specified in this 
2.21 	section.

2.22
2.23	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				40,000,000
	
2.24 	To be spent in accordance with Minnesota 
2.25 	Statutes, section 135A.046.
2.26 	This appropriation must be used to fully fund 
2.27 	improvements and betterments of a capital 
2.28 	nature required to complete the following 
2.29 	projects:
2.30 	(1) critical utility infrastructure improvements 
2.31 	for the heating plant on the Crookston campus;
3.1 	(2) the repair or replacement of the HVAC 
3.2 	system in the Library Annex facility on the 
3.3 	Duluth campus and other capital 
3.4 	improvements to comply with federal, state, 
3.5 	and local building code requirements;
3.6 	(3) improvements to the Multi-Ethnic 
3.7 	Resource Center, originally constructed in 
3.8 	1899, on the Morris campus; and
3.9 	(4) the replacement of the pedestrian enclosure 
3.10 	and suicide deterrent barriers on the 
3.11 	Washington Avenue Pedestrian Bridge on the 
3.12 	Twin Cities campus. The board must consult 
3.13 	with persons impacted by suicide at this 
3.14 	bridge, suicide prevention organizations, and 
3.15 	experts in the field of suicide prevention in 
3.16 	designing the project.

3.17
3.18	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

3.19	Subdivision 1.Total Appropriation
 			$
	40,000,000
	
3.20 	To the Board of Trustees of the Minnesota 
3.21 	State Colleges and Universities for the 
3.22 	purposes specified in this section.

3.23
3.24	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				40,000,000
	
3.25 	To be spent in accordance with Minnesota 
3.26 	Statutes, section 135A.046.

3.27	Sec. 4. EDUCATION
 			$
	177,149,000
	
3.28 	(a) To the commissioner of education for 
3.29 	library construction grants under Minnesota 
3.30 	Statutes, section 134.45.
3.31 	(b) Of this amount, $1,000,000 is for a grant 
3.32 	to the city of Clara City to predesign, design, 
3.33 	construct, furnish, and equip a new library 
3.34 	building.

4.1	Sec. 5. MINNESOTA STATE ACADEMIES

4.2	Subdivision 1.Total Appropriation
 			$
	1,227,000
	
4.3 	To the commissioner of administration for the 
4.4 	purposes specified in this section.

4.5	Subd. 2.Asset Preservation
 				1,227,000
	
4.6 	For capital asset preservation improvements 
4.7 	and betterments on both campuses of the 
4.8 	Minnesota State Academies, to be spent in 
4.9 	accordance with Minnesota Statutes, section 
4.10 	16B.307.

4.11
4.12	Sec. 6. PERPICH CENTER FOR ARTS 
EDUCATION
 			$
	1,000,000
	
4.13 	To the commissioner of administration for 
4.14 	capital asset preservation improvements and 
4.15 	betterments at the Perpich Center for Arts 
4.16 	Education, to be spent in accordance with 
4.17 	Minnesota Statutes, section 16B.307.

4.18	Sec. 7. NATURAL RESOURCES

4.19	Subdivision 1.Total Appropriation
 			$
	58,400,000
	
4.20 	(a) To the commissioner of natural resources 
4.21 	for the purposes specified in this section.
4.22 	(b) The appropriations in this section are 
4.23 	subject to the requirements of the natural 
4.24 	resources capital improvement program under 
4.25 	Minnesota Statutes, section 86A.12, unless 
4.26 	this section or the statutes referred to in this 
4.27 	section provide more specific standards, 
4.28 	criteria, or priorities for projects than 
4.29 	Minnesota Statutes, section 86A.12.

4.30	Subd. 2.Natural Resources Asset Preservation
 				15,000,000
	
4.31 	For the preservation and replacement of 
4.32 	state-owned facilities and recreational assets 
4.33 	operated by the commissioner of natural 
5.1 	resources to be spent in accordance with 
5.2 	Minnesota Statutes, section 84.946.

5.3	Subd. 3.Badoura State Forest Nursery
 				18,000,000
	
5.4 	To predesign, design, and construct facility 
5.5 	capital improvements and associated facility 
5.6 	components at the Badoura State Forest 
5.7 	Nursery.

5.8	Subd. 4.Accessibility
 				2,000,000
	
5.9 	For the design and construction of accessibility 
5.10 	improvements at state parks, recreation areas, 
5.11 	and wildlife management areas.

5.12	Subd. 5.Flood Hazard Mitigation
 				5,000,000
	
5.13 	(a) For the state share of flood hazard 
5.14 	mitigation grants for publicly owned capital 
5.15 	improvements to prevent or alleviate flood 
5.16 	damage under Minnesota Statutes, section 
5.17 	103F.161.
5.18 	(b) Project priorities shall be determined by 
5.19 	the commissioner as appropriate, based on 
5.20 	need and consideration of available leveraging 
5.21 	of federal, state, and local funds.
5.22 	(c) To the extent practicable and consistent 
5.23 	with the project, recipients of appropriations 
5.24 	for flood control projects in this subdivision 
5.25 	shall create wetlands that are eligible for 
5.26 	wetland replacement credit to replace wetlands 
5.27 	drained or filled as the result of repair, 
5.28 	reconstruction, replacement, or rehabilitation 
5.29 	of an existing public road under Minnesota 
5.30 	Statutes, section 103G.222, subdivision 1, 
5.31 	paragraphs (l) and (m).
5.32 	(d) To the extent that the cost of a municipal 
5.33 	project exceeds two percent of the median 
6.1 	household income in the municipality 
6.2 	multiplied by the number of households in the 
6.3 	municipality, this appropriation is also for the 
6.4 	local share of the project.

6.5	Subd. 6.Community Tree Planting
 				6,000,000
	
6.6 	For grants under Minnesota Statutes, section 
6.7 	84.705. This appropriation must be used for 
6.8 	qualified capital projects.

6.9	Subd. 7.Reforestation
 				2,400,000
	
6.10 	For reforestation and stand improvement on 
6.11 	state forest lands to meet the reforestation 
6.12 	requirements of Minnesota Statutes, section 
6.13 	89.002, subdivision 2, including purchasing 
6.14 	native seeds and native seedlings, planting, 
6.15 	seeding, site preparation, and protection on 
6.16 	state lands administered by the commissioner.

6.17	Subd. 8.Dam Renovation, Repair, Removal
 				10,000,000
	
6.18 	(a) For design, engineering, and construction 
6.19 	to repair, reconstruct, or remove publicly 
6.20 	owned dams and respond to dam safety 
6.21 	emergencies on publicly owned dams. The 
6.22 	commissioner must first use this appropriation 
6.23 	for removal of the Rapidan Dam, including 
6.24 	associated improvements for stream and 
6.25 	stream bank stabilization and mitigation of 
6.26 	public safety hazards. Any unspent portion of 
6.27 	this appropriation remaining after completion 
6.28 	of the Rapidan Dam project may be applied 
6.29 	toward other project priorities as determined 
6.30 	by the commissioner, in accordance with 
6.31 	Minnesota Statutes, sections 103G.511 and 
6.32 	103G.515.
6.33 	(b) If the commissioner determines that a 
6.34 	project is not ready to proceed, this 
7.1 	appropriation may be used for other projects 
7.2 	on the commissioner's priority list.

7.3	Subd. 9.Unspent Appropriations
 					
7.4 	The unspent portion of an appropriation for a 
7.5 	project in this section that is complete, upon 
7.6 	written notice to the commissioner of 
7.7 	management and budget, is available for asset 
7.8 	preservation under Minnesota Statutes, section 
7.9 	84.946. Minnesota Statutes, section 16A.642, 
7.10 	applies from the date of the original 
7.11 	appropriation to the unspent amount 
7.12 	transferred.

7.13	Sec. 8. POLLUTION CONTROL AGENCY

7.14	Subdivision 1.Total Appropriation
 			$
	8,000,000
	
7.15 	To the Pollution Control Agency for the 
7.16 	purposes specified in this section.

7.17
7.18	Subd. 2.Statewide Drinking Water 
Contamination Mitigation Program
 				8,000,000
	
7.19 	For projects or grants under Minnesota 
7.20 	Statutes, section 115B.245.

7.21
7.22	Sec. 9. BOARD OF WATER AND SOIL 
RESOURCES

7.23	Subdivision 1.Total Appropriation
 			$
	6,500,000
	
7.24 	To the Board of Water and Soil Resources for 
7.25 	the purposes specified in this section.

7.26
7.27	Subd. 2.Local Government Roads Wetland 
Replacement Program
 				2,500,000
	
7.28 	To acquire land or permanent easements and 
7.29 	to restore, create, enhance, and preserve 
7.30 	wetlands to replace those wetlands drained or 
7.31 	filled as a result of the repair, reconstruction, 
7.32 	replacement, or rehabilitation of existing 
7.33 	public roads as required by Minnesota 
8.1 	Statutes, section 103G.222, subdivision 1, 
8.2 	paragraphs (l) and (m). Notwithstanding 
8.3 	Minnesota Statutes, section 103G.222, 
8.4 	subdivision 3, the board may implement the 
8.5 	wetland replacement program consistent with 
8.6 	section 404 of the federal Clean Water Act. 
8.7 	The purchase price paid for acquisition of land 
8.8 	or perpetual easement must be a fair market 
8.9 	value as determined by the board. The board 
8.10 	may enter into agreements with the federal 
8.11 	government, other state agencies, political 
8.12 	subdivisions, nonprofit organizations, fee title 
8.13 	owners, or other qualified private entities to 
8.14 	acquire wetland replacement credits in 
8.15 	accordance with Minnesota Rules, chapter 
8.16 	8420. Up to five percent of this appropriation 
8.17 	may be used for restoration and enhancement.

8.18
8.19	Subd. 3.Reinvest in Minnesota (RIM) Reserve 
Program
 				4,000,000
	
8.20 	To acquire conservation easements from 
8.21 	landowners to preserve, restore, create, and 
8.22 	enhance wetlands and associated uplands of 
8.23 	prairie and grasslands, and to restore and 
8.24 	enhance rivers and streams, riparian lands, and 
8.25 	associated uplands of prairie and grasslands, 
8.26 	in order to protect soil and water quality, 
8.27 	support fish and wildlife habitat, reduce flood 
8.28 	damage, and provide other public benefits. 
8.29 	The provisions of Minnesota Statutes, section 
8.30 	103F.515, apply to this program. The board 
8.31 	shall give priority to leveraging federal money 
8.32 	by enrolling targeted new lands or enrolling 
8.33 	environmentally sensitive lands that have 
8.34 	expiring federal conservation agreements. The 
8.35 	board is authorized to enter into new 
8.36 	agreements and amend past agreements with 
9.1 	landowners as required by Minnesota Statutes, 
9.2 	section 103F.515, subdivision 5, to allow for 
9.3 	restoration. Up to ten percent of this 
9.4 	appropriation may be used for restoration, 
9.5 	rehabilitation, and enhancement.

9.6
9.7	Sec. 10. MINNESOTA ZOOLOGICAL 
GARDEN
 			$
	15,000,000
	
9.8 	To the Minnesota Zoological Board to design, 
9.9 	construct, furnish, and equip a new animal 
9.10 	hospital building at the Minnesota Zoological 
9.11 	Garden.

9.12	Sec. 11. ADMINISTRATION

9.13	Subdivision 1.Total Appropriation
 			$
	26,044,000
	
9.14 	To the commissioner of administration for the 
9.15 	purposes specified in this section.

9.16	Subd. 2.Capitol Tunnel
 				8,500,000
	
9.17 	To design, construct, and equip improvements 
9.18 	to bring a portion of the tunnel under Rev. Dr. 
9.19 	Martin Luther King Jr. Boulevard and to the 
9.20 	east to the State Capitol into compliance with 
9.21 	the Americans with Disabilities Act.

9.22
9.23	Subd. 3.Capital Asset Preservation and 
Replacement Account
 				2,044,000
	
9.24 	To be spent in accordance with Minnesota 
9.25 	Statutes, section 16A.632.

9.26	Subd. 4.ADA Accessibility
 				3,500,000
	
9.27 	To be spent in accordance with Minnesota 
9.28 	Statutes, section 16B.308.

9.29	Subd. 5.Capitol Mall Improvements
 				12,000,000
	
9.30 	To predesign, design, construct, furnish, and 
9.31 	equip improvements and betterments of a 
9.32 	capital nature within the Capitol Area, 
9.33 	consistent with the Capitol Mall Design 
10.1 	Framework update required by Laws 2023, 
10.2 	chapter 62, article 2, section 124.

10.3	Sec. 12. AMATEUR SPORTS COMMISSION

10.4	Subdivision 1.Total Appropriation
 			$
	7,000,000
	
10.5 	To the Minnesota Amateur Sports 
10.6 	Commission for the purposes specified in this 
10.7 	section.

10.8	Subd. 2.Asset Preservation
 				6,000,000
	
10.9 	For asset preservation improvements and 
10.10 	betterments of a capital nature at the National 
10.11 	Sports Center in Blaine, to be spent in 
10.12 	accordance with Minnesota Statutes, section 
10.13 	16B.307.

10.14	Subd. 3.Mighty Ducks
 				1,000,000
	
10.15 	For grants to local government units under 
10.16 	Minnesota Statutes, section 240A.09, 
10.17 	paragraph (b), for projects that eliminate R-22.

10.18	Sec. 13. MILITARY AFFAIRS

10.19	Subdivision 1. Total Appropriation
 			$
	3,000,000
	
10.20 	To the adjutant general for the purposes 
10.21 	specified in this section.

10.22	Subd. 2.Duluth Hangar Design
 				3,000,000
	
10.23 	To predesign and design the construction of 
10.24 	a new hangar to hold aircraft at the Duluth 
10.25 	International Airport in support of the 148th 
10.26 	Fighter Wing of the Minnesota Air National 
10.27 	Guard to replace existing hangars.

10.28	Sec. 14. PUBLIC SAFETY

10.29	Subdivision 1. Total Appropriation
 			$
	47,998,000
	
10.30 	To the commissioner of administration for the 
10.31 	purposes specified in this section.

11.1
11.2	Subd. 2.Southern Minnesota BCA Regional 
Office and Laboratory
 				47,998,000
	
11.3 	To construct, furnish, and equip a new Bureau 
11.4 	of Criminal Apprehension regional office and 
11.5 	laboratory facility in Mankato.

11.6	Sec. 15. TRANSPORTATION

11.7	Subdivision 1.Total Appropriation
 			$
	94,621,000
	
11.8 	To the commissioner of transportation for the 
11.9 	purposes specified in this section.

11.10
11.11	Subd. 2.Major Local Bridge Replacement and 
Rehabilitation Program
 				35,000,000
	
11.12 	From the bond proceeds account in the state 
11.13 	transportation fund for grants under Minnesota 
11.14 	Statutes, section 174.50, subdivision 6d.

11.15	Subd. 3.Port Development Assistance Program
 				3,000,000
	
11.16 	For grants under Minnesota Statutes, chapter 
11.17 	457A. Any improvements made with the 
11.18 	proceeds of these grants must be publicly 
11.19 	owned.

11.20
11.21	Subd. 4.Local Bridge Replacement and 
Rehabilitation
 				20,000,000
	
11.22 	From the bond proceeds account in the state 
11.23 	transportation fund to match federal money 
11.24 	and to replace or rehabilitate local deficient 
11.25 	bridges as provided in Minnesota Statutes, 
11.26 	section 174.50.

11.27	Subd. 5.Local Road Improvement Fund Grants
 				36,621,000
	
11.28 	From the bond proceeds account in the state 
11.29 	transportation fund as provided in Minnesota 
11.30 	Statutes, section 174.50, for eligible trunk 
11.31 	highway corridor improvement projects under 
11.32 	Minnesota Statutes, section 174.52, 
11.33 	subdivision 2; for construction and 
12.1 	reconstruction of local roads with statewide 
12.2 	or regional significance under Minnesota 
12.3 	Statutes, section 174.52, subdivision 4; or for 
12.4 	grants to counties to assist in paying the costs 
12.5 	of rural road safety capital improvement 
12.6 	projects on county state-aid highways under 
12.7 	Minnesota Statutes, section 174.52, 
12.8 	subdivision 4a. Of this appropriation, 
12.9 	$5,000,000 is for projects on town roads.

12.10	Sec. 16. METROPOLITAN COUNCIL

12.11	Subdivision 1.Total Appropriation
 			$
	14,125,000
	
12.12 	To the Metropolitan Council for the purposes 
12.13 	specified in this section.

12.14
12.15	Subd. 2.Metropolitan Cities Inflow and 
Infiltration Grants
 				10,000,000
	
12.16 	For grants under Minnesota Statutes, section 
12.17 	473.5491.

12.18	Subd. 3.Metropolitan Regional Parks and Trails
 				4,125,000
	
12.19 	For the cost of improvements and betterments 
12.20 	of a capital nature and acquisition by the 
12.21 	council and local government units of regional 
12.22 	recreational open-space lands in accordance 
12.23 	with the council's policy plan as provided in 
12.24 	Minnesota Statutes, section 473.147. This 
12.25 	appropriation must not be used to purchase 
12.26 	easements.

12.27	Sec. 17. DIRECT CARE AND TREATMENT
 			$
	8,000,000
	
12.28 	To the commissioner of administration for 
12.29 	asset preservation improvements and 
12.30 	betterments of a capital nature at Department 
12.31 	of Direct Care and Treatment facilities 
12.32 	statewide, to be spent in accordance with 
12.33 	Minnesota Statutes, section 16B.307.

13.1
13.2	Sec. 18. CHILDREN, YOUTH, AND 
FAMILIES
 			$
	4,500,000
	
13.3 	To the commissioner of children, youth, and 
13.4 	families for grants under Minnesota Statutes, 
13.5 	section 142A.46, to predesign, design, 
13.6 	construct, renovate, furnish, and equip early 
13.7 	childhood learning facilities.

13.8	Sec. 19. VETERANS AFFAIRS

13.9	Subdivision 1.Total Appropriation
 			$
	25,045,000
	
13.10 	To the commissioner of administration for the 
13.11 	purposes specified in this section.

13.12	Subd. 2.Asset Preservation
 				9,000,000
	
13.13 	For asset preservation improvements and 
13.14 	betterments of a capital nature at the veterans 
13.15 	homes in Minneapolis, Hastings, Fergus Falls, 
13.16 	Silver Bay, and Luverne, and the state veterans 
13.17 	cemeteries at Little Falls, Preston, and Duluth, 
13.18 	to be spent in accordance with Minnesota 
13.19 	Statutes, section 16B.307.

13.20
13.21	Subd. 3.Minneapolis Veterans Home - Building 
16 Remodel
 				16,045,000
	
13.22 	To design, construct, furnish, and equip the 
13.23 	renovation of the Minneapolis Veterans Home 
13.24 	Building 16.

13.25	Sec. 20. CORRECTIONS

13.26	Subdivision 1.Total Appropriation
 			$
	86,585,000
	
13.27 	To the commissioner of administration for the 
13.28 	purposes specified in this section.

13.29	Subd. 2.Asset Preservation
 				40,000,000
	
13.30 	For asset preservation improvement and 
13.31 	betterments of a capital nature at the 
13.32 	Minnesota correctional facilities statewide to 
14.1 	be spent in accordance with Minnesota 
14.2 	Statutes, section 16B.307.

14.3
14.4	Subd. 3.Minnesota Correctional Facility - Rush 
City
 				46,585,000
	
14.5 	To design, construct, furnish, and equip a new 
14.6 	building addition and to renovate existing 
14.7 	space to provide incarcerated persons services 
14.8 	at the Rush City Correctional Facility.

14.9	Subd. 4.Unspent Appropriations
 					
14.10 	The unspent portion of an appropriation for a 
14.11 	Department of Corrections project in this 
14.12 	section that is complete, upon written notice 
14.13 	to the commissioner of management and 
14.14 	budget, is available for asset preservation 
14.15 	under Minnesota Statutes, section 16B.307. 
14.16 	Minnesota Statutes, section 16A.642, applies 
14.17 	from the date of the original appropriation to 
14.18 	the unspent amount transferred.

14.19
14.20	Sec. 21. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

14.21	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
14.22 	To the commissioner of employment and 
14.23 	economic development for the purposes 
14.24 	specified in this section.

14.25
14.26	Subd. 2.Greater Minnesota Business 
Development Public Infrastructure
 				2,000,000
	
14.27 	For grants under Minnesota Statutes, section 
14.28 	116J.431.

14.29
14.30	Subd. 3.Transportation Economic Development 
Infrastructure
 				2,000,000
	
14.31 	For grants under Minnesota Statutes, section 
14.32 	116J.436.

14.33	Sec. 22. PUBLIC FACILITIES AUTHORITY

14.34	Subdivision 1.Total Appropriation
 			$
	100,011,000
	
15.1 	To the Public Facilities Authority for the 
15.2 	purposes specified in this section.

15.3
15.4	Subd. 2.State Match for Federal Grants to State 
Revolving Loan Programs
 				39,000,000
	
15.5 	To match federal capitalization grants for the 
15.6 	clean water revolving fund under Minnesota 
15.7 	Statutes, section 446A.07, and the drinking 
15.8 	water revolving fund under Minnesota 
15.9 	Statutes, section 446A.081. This appropriation 
15.10 	must be used for qualified capital projects.

15.11	Subd. 3.Water Infrastructure Funding Program
 				35,484,000
	
15.12 	(a) For grants to eligible municipalities under 
15.13 	the water infrastructure funding program under 
15.14 	Minnesota Statutes, section 446A.072.
15.15 	(b) $17,742,000 is for wastewater projects 
15.16 	listed on the Pollution Control Agency's 
15.17 	project priority list in the fundable range under 
15.18 	the clean water revolving fund program.
15.19 	(c) $17,742,000 is for drinking water projects 
15.20 	listed on the commissioner of health's project 
15.21 	priority list in the fundable range under the 
15.22 	drinking water revolving fund program.
15.23 	(d) After all eligible projects under paragraph 
15.24 	(b) or (c) have been funded in a fiscal year, 
15.25 	the Public Facilities Authority may transfer 
15.26 	any remaining, uncommitted money to eligible 
15.27 	projects under a program defined in paragraph 
15.28 	(b) or (c) based on that program's project 
15.29 	priority list.

15.30
15.31	Subd. 4.Point Source Implementation Grants 
Program
 				18,527,000
	
15.32 	For grants to eligible municipalities under the 
15.33 	point source implementation grants program 
15.34 	under Minnesota Statutes, section 446A.073. 
16.1 	This appropriation must be used for qualified 
16.2 	capital projects.

16.3
16.4	Subd. 5.Emerging Contaminants Grant 
Program
 				7,000,000
	
16.5 	For grants to eligible municipalities under the 
16.6 	Emerging Contaminants Grant Program under 
16.7 	Minnesota Statutes, section 446A.082.

16.8
16.9	Sec. 23. MINNESOTA HOUSING FINANCE 
AGENCY

16.10	Subdivision 1.Total Appropriation
 			$
	14,500,000
	
16.11 	To the Minnesota Housing Finance Agency 
16.12 	for the purposes specified in this section.

16.13	Subd. 2.Public Housing Rehabilitation
 				10,000,000
	
16.14 	To the Minnesota Housing Finance Agency 
16.15 	to finance the costs of rehabilitation to 
16.16 	preserve public housing under Minnesota 
16.17 	Statutes, section 462A.202, subdivision 3a. 
16.18 	For purposes of this section, "public housing" 
16.19 	means housing for low-income persons and 
16.20 	households financed by the federal 
16.21 	government and publicly owned. Priority may 
16.22 	be given to proposals that maximize nonstate 
16.23 	resources to finance the capital costs and 
16.24 	requests that prioritize health, safety, and 
16.25 	energy improvements. The priority in 
16.26 	Minnesota Statutes, section 462A.202, 
16.27 	subdivision 3a, for projects to increase the 
16.28 	supply of affordable housing and the 
16.29 	restrictions of Minnesota Statutes, section 
16.30 	462A.202, subdivision 7, do not apply to this 
16.31 	appropriation.

17.1
17.2	Subd. 3.Greater Minnesota Housing 
Infrastructure Grants
 				4,500,000
	
17.3 	For grants under Minnesota Statutes, section 
17.4 	462A.395, subdivision 3.

17.5
17.6	Sec. 24. MINNESOTA HISTORICAL 
SOCIETY

17.7	Subdivision 1.Total Appropriation
 			$
	6,588,000
	
17.8 	To the Minnesota Historical Society for the 
17.9 	purposes specified in this section.

17.10	Subd. 2.Historic Sites Asset Preservation
 				5,588,000
	
17.11 	For capital improvements and betterments at 
17.12 	state historic sites, buildings, landscaping at 
17.13 	historic buildings, exhibits, markers, and 
17.14 	monuments, to be spent in accordance with 
17.15 	Minnesota Statutes, section 16B.307. The 
17.16 	society shall determine project priorities as 
17.17 	appropriate based on need.

17.18	Subd. 3.County and Local Preservation Grants
 				1,000,000
	
17.19 	For grants to county and local jurisdictions as 
17.20 	matching money for historic preservation 
17.21 	projects of a capital nature, as provided in 
17.22 	Minnesota Statutes, section 138.0525.

17.23
17.24	Sec. 25. MINNESOTA MANAGEMENT AND 
BUDGET
 			$
	1,300,000
	
17.25 	From the general fund to the commissioner of 
17.26 	management and budget to prepay or defease 
17.27 	any outstanding state general obligation bonds 
17.28 	used for improvements and betterments at the 
17.29 	University of Minnesota Cloquet Forestry 
17.30 	Center, and other associated financing costs, 
17.31 	to facilitate the university's goal of returning 
17.32 	this land to the Fond du Lac Band of Lake 
17.33 	Superior Chippewa. This amount may be 
17.34 	deposited, invested, and applied to accomplish 
18.1 	the purposes of this section as provided in 
18.2 	Minnesota Statutes, section 475.67, 
18.3 	subdivisions 5 to 10, and 13. Upon the 
18.4 	prepayment or defeasance of associated debt 
18.5 	on the real property and improvements, all 
18.6 	conditions set forth in Minnesota Statutes, 
18.7 	section 16A.695, subdivision 3, shall be 
18.8 	deemed to have been satisfied and the real 
18.9 	property and improvements shall no longer 
18.10 	constitute state bond financed property under 
18.11 	Minnesota Statutes, section 16A.695.

18.12 	Sec. 26. BOND SALE AUTHORIZATIONS.
 18.13 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
18.14 	the bond proceeds fund, and to provide for expenses authorized in Minnesota Statutes, 
18.15 	section 16A.641, subdivision 8, paragraph (c), the commissioner of management and budget 
18.16 	shall sell and issue bonds of the state in an amount up to $703,375,000 in the manner, upon 
18.17 	the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, 
18.18 	and by the Minnesota Constitution, article XI, sections 4 to 7.
18.19 		Subd. 2.Transportation fund. To provide the money appropriated in this act from the 
18.20 	bond proceeds account in the state transportation fund, the commissioner of management 
18.21 	and budget shall sell and issue bonds of the state in an amount up to $86,621,000 in the 
18.22 	manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 
18.23 	16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.

18.24 	Sec. 27. BOND SALE SCHEDULE.
 18.25 	The commissioner of management and budget shall schedule the sale of state general 
18.26 	obligation bonds so that, during the biennium ending June 30, 2027, no more than 
18.27 	$1,221,106,000 will need to be transferred from the general fund to the state bond fund to 
18.28 	pay principal and interest due and to become due on outstanding state general obligation 
18.29 	bonds. During the biennium, before each sale of state general obligation bonds, the 
18.30 	commissioner of management and budget shall calculate the amount of debt service payments 
18.31 	needed on bonds previously issued and shall estimate the amount of debt service payments 
18.32 	that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the 
18.33 	amount of bonds scheduled to be sold so as to remain within the limit set by this section. 
19.1 	The amount needed to make the debt service payments is appropriated from the general 
19.2 	fund as provided in Minnesota Statutes, section 16A.641.

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

19.5 	ARTICLE 2
19.6 	MISCELLANEOUS

19.7 	Section 1. [16B.308] ACCESSIBILITY ACCOUNT.
19.8 		Subdivision 1.Establishment. An accessibility account is established in the state bond 
19.9 	proceeds fund to receive state bond proceeds appropriated to the commissioner of 
19.10 	administration to be expended for the purpose and in accordance with the standards and 
19.11 	criteria in this section.
19.12 		Subd. 2.Standards. (a) An expenditure may be made from the account only when it is 
19.13 	a capital expenditure on a capital asset owned by the state, within the meaning of accepted 
19.14 	accounting principles as applied to public expenditures. The commissioner of administration 
19.15 	must consult with the commissioner of management and budget to the extent necessary to 
19.16 	ensure that an expenditure meets the criteria of the Minnesota Constitution, article XI, 
19.17 	section 5, clause (a).
19.18 	(b) An expenditure may be made from the account to predesign, design, construct, 
19.19 	renovate, furnish, and equip accessibility improvements on state-owned property. For 
19.20 	purposes of this section, "state-owned property" does not include property controlled or 
19.21 	managed by the University of Minnesota.
19.22 	(c) Categories of projects considered likely to be most needed and appropriate for 
19.23 	financing are:
19.24 	(1) removal of architectural barriers from a building or site; and
19.25 	(2) improvements to meet state and federal requirements for accessibility for people 
19.26 	with disabilities.
19.27 		Subd. 3.Applications; project selection. The commissioner of administration must:
19.28 	(1) provide instructions to state agencies to apply for funding of capital expenditures 
19.29 	from the accessibility account;
19.30 	(2) review applications for funding;
20.1 	(3) make initial allocations among eligible projects;
20.2 	(4) determine priorities for funding in collaboration with the Minnesota Council on 
20.3 	Disability; and
20.4 	(5) allocate money in priority order until the available appropriation has been committed.
20.5 		Subd. 4.Report. On or before January 15 annually the commissioner of administration 
20.6 	must submit to the commissioner of management and budget and the chairs and ranking 
20.7 	minority members of the committees in the senate and the house of representatives with 
20.8 	jurisdiction over capital investment a list of the projects that were funded with money from 
20.9 	the accessibility account during the preceding calendar year, as well as a list of priority 
20.10 	projects for which accessibility appropriations will be requested in that year's legislative 
20.11 	session.

20.12 	Sec. 2. [115B.245] STATEWIDE DRINKING WATER CONTAMINATION 
20.13 	MITIGATION PROGRAM.
20.14 		Subdivision 1.Program established. (a) The commissioner may design and construct, 
20.15 	or may make grants to eligible grantees as provided under this section to design and construct, 
20.16 	projects to provide safe drinking water, due to contamination of drinking water by hazardous 
20.17 	substances, through projects such as treatment systems, new drinking water wells, sealing 
20.18 	contaminated wells, and connecting to alternative drinking water sources. The criteria for 
20.19 	selecting projects must follow the criteria and rules established under section 115B.17.
20.20 	(b) The commissioner must prioritize projects located in a census block group with a 
20.21 	supplemental demographic index score in the 70th percentile or higher within the state of 
20.22 	Minnesota.
20.23 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
20.24 	meanings given.
20.25 	(b) "Commissioner" means the commissioner of the Pollution Control Agency.
20.26 	(c) "Eligible grantee" means:
20.27 	(1) for projects funded from proceeds of bonds authorized by the Minnesota Constitution, 
20.28 	article XI, section 5, clause (a), a city, county, school district, joint powers board, or other 
20.29 	political subdivision of the state; and
20.30 	(2) for projects funded from appropriations from the general fund, any person.
20.31 	(d) "Private infrastructure projects" means improvements made to nonpublicly owned 
20.32 	infrastructure such as sealing of private wells, connecting private properties to water mains, 
21.1 	water service fees, treatment systems, and drilling new private wells in an unimpaired 
21.2 	drinking water aquifer.
21.3 	(e) "Public infrastructure projects" means improvements made to publicly owned 
21.4 	infrastructure such as water main installation, public water system improvements, treatment 
21.5 	systems, and associated improvements.
21.6 	(f) "Supplemental demographic index" means an index in the Environmental Justice 
21.7 	Screening and Mapping Tool developed by the United States Environmental Protection 
21.8 	Agency that is based on socioeconomic indicators, including low income, unemployment, 
21.9 	less than high school education, limited English speaking, and low life expectancy.
21.10 		Subd. 3.Eligible projects. (a) The proceeds of state general obligation bonds may only 
21.11 	be expended to acquire land or an interest in land and to predesign, design, construct, and 
21.12 	improve public infrastructure projects that further the purposes of this section. 
21.13 	Notwithstanding section 115B.17, subdivision 6 or 16, any money recovered in a civil action 
21.14 	for a project financed with bonds under this section shall be deposited by the commissioner 
21.15 	in the statewide drinking water contamination mitigation account in the special revenue 
21.16 	fund for the purpose of funding additional projects under this section.
21.17 	(b) Appropriations from the general fund may only be expended on public or private 
21.18 	infrastructure projects that further the purposes of this section.

21.19 	Sec. 3. Minnesota Statutes 2024, section 142A.46, subdivision 1, is amended to read:
21.20 		Subdivision 1.Grant authority. The commissioner may make grants to state agencies 
21.21 	and, political subdivisions, nonprofit organizations, Indian Tribal governments, or private 
21.22 	child care providers licensed as child care centers or to provide in-home family child care
21.23 	to construct or rehabilitate facilities for early childhood programs, crisis nurseries, or 
21.24 	parenting time centers. The following requirements apply:
21.25 	(1) for grants funded with general obligation bonds, the facilities must be owned by the 
21.26 	state or a political subdivision, but may be leased under section 16A.695 to organizations 
21.27 	that operate the programs. The commissioner must prescribe the terms and conditions of 
21.28 	the leases.;
21.29 	(2) for grants funded with general fund appropriations, the facilities may be owned by 
21.30 	a political subdivision, nonprofit organization, Tribal government, or private child care 
21.31 	provider licensed as a child care center or to provide in-home family child care;
21.32 	(2) (3) a grant for an individual facility must not exceed $500,000 for each program that 
21.33 	is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three 
22.1 	programs or more. Programs include Head Start, School Readiness, Early Childhood Family 
22.2 	Education, licensed child care, and other early childhood intervention programs.;
22.3 	(3) (4) state appropriations must be matched on a 50 25 percent basis with nonstate 
22.4 	funds. The matching requirement must apply program wide and not to individual grants.

22.5 	Sec. 4. [446A.082] EMERGING CONTAMINANTS GRANTS.
22.6 		Subdivision 1.Definition. For the purposes of this section, "supplemental demographic 
22.7 	index" means an index in the Environmental Justice Screening and Mapping Tool developed 
22.8 	by the United States Environmental Protection Agency that is based on socioeconomic 
22.9 	indicators, including low income, unemployment, less than high school education, limited 
22.10 	English speaking, and low life expectancy.
22.11 		Subd. 2.Program established. When money is appropriated under this program, the 
22.12 	authority shall award grants to a governmental unit for up to 80 percent of the cost of drinking 
22.13 	water infrastructure projects to address a confirmed exceedance of a health advisory level 
22.14 	for a drinking water emerging contaminant as defined by the Environmental Protection 
22.15 	Agency.
22.16 		Subd. 3.Eligibility. An eligible project for this program must:
22.17 	(1) be listed on the Drinking Water Revolving Fund Project Priority List per Minnesota 
22.18 	Rules, part 4720.9015;
22.19 	(2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
22.20 	(3) be certified by the commissioner of health per Minnesota Rules, part 4720.9060.
22.21 		Subd. 4.Application and reservation of funds. (a) Grant applications to the authority 
22.22 	may be made at any time on forms prescribed by the authority, including a project schedule 
22.23 	and cost estimate for the work necessary to comply with the purpose described in subdivision 
22.24 	2.
22.25 	(b) The commissioner of health shall review and certify to the authority those projects 
22.26 	that have plans and specifications approved under Minnesota Rules, part 4720.9060. The 
22.27 	commissioner of health must also indicate in the certification the supplemental demographic 
22.28 	index scores of the projects.
22.29 	(c) When a project is certified by the commissioner of health, the authority shall first 
22.30 	reserve grant funds for projects located in a census block group with a supplemental 
22.31 	demographic index score in the 70th percentile or higher within the state of Minnesota. Any 
22.32 	remaining funds shall be reserved for projects in the order listed on the commissioner of 
23.1 	health's project priority list and in an amount based on the cost estimate in the commissioner 
23.2 	of health certification or the as-bid costs, whichever is less.
23.3 		Subd. 5.Grant amount. The grant amount for an eligible project under this program 
23.4 	shall be for an amount up to 80 percent of the eligible as-bid project cost up to $12,000,000, 
23.5 	minus the amount of federal emerging contaminant funds the project receives under section 
23.6 	446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant 
23.7 	funds.
23.8 		Subd. 6.Grant approval. The authority shall award a grant for an eligible project only 
23.9 	after:
23.10 	(1) the applicant has submitted the as-bid project cost;
23.11 	(2) the commissioner of health has certified the grant eligible portion of the project; and
23.12 	(3) the authority has determined that the additional financing necessary to complete the 
23.13 	project has been committed from other sources.
23.14 		Subd. 7.Grant disbursement. Grant funds shall be disbursed by the authority as eligible 
23.15 	project costs are incurred by the governmental unit and in accordance with a project financing 
23.16 	agreement and applicable state laws and rules governing the disbursements.

23.17 	Sec. 5. Minnesota Statutes 2024, section 473.5491, subdivision 1, is amended to read:
23.18 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
23.19 	the meanings given.
23.20 	(b) "Affordability criteria" means an inflow and infiltration project service area that is 
23.21 	located, in whole or in part, in a census tract where at least three of the following apply as 
23.22 	determined using the most recently published data from the United States Census Bureau 
23.23 	or United States Centers for Disease Control and Prevention:
23.24 	(1) 20 percent or more of the residents have income below the federal poverty thresholds;
23.25 	(2) the tract has a United States Centers for Disease Control and Prevention Social 
23.26 	Vulnerability Index greater than 0.80;
23.27 	(3) the upper limit of the lowest quintile of household income is less than the state upper 
23.28 	limit of the lowest quintile;
23.29 	(4) the housing vacancy rate is greater than the state average; or
23.30 	(5) the percent of the population receiving Supplemental Nutrition Assistance Program 
23.31 	(SNAP) benefits is greater than the state average.
24.1 	(c) (b) "City" means a statutory or home rule charter city located within the metropolitan 
24.2 	area.
24.3 	(c) "Supplemental demographic index" means an index in the Environmental Justice 
24.4 	Screening and Mapping Tool developed by the United States Environmental Protection 
24.5 	Agency that is based on socioeconomic indicators, including low income, unemployment, 
24.6 	less than high school education, limited English speaking, and low life expectancy.

24.7 	Sec. 6. Minnesota Statutes 2024, section 473.5491, subdivision 2, is amended to read:
24.8 		Subd. 2.Grants. (a) The council shall make grants to cities for capital improvements 
24.9 	in municipal wastewater collection systems to reduce the amount of inflow and infiltration 
24.10 	to the council's metropolitan sanitary sewer disposal system.
24.11 	(b) A grant under this section may be made in an amount up to 50 percent of the cost to 
24.12 	mitigate inflow and infiltration in the publicly owned municipal wastewater collection 
24.13 	system. The council may award a grant up to 100 percent of the cost to mitigate inflow and 
24.14 	infiltration in the publicly owned municipal wastewater collection system if the project 
24.15 	meets affordability criteria is located in a census block group with a supplemental 
24.16 	demographic index score in the 70th percentile or higher within the state of Minnesota.

24.17 	Sec. 7. Minnesota Statutes 2024, section 473.5491, subdivision 4, is amended to read:
24.18 		Subd. 4.Application. The council must award grants based on applications from cities 
24.19 	that identify eligible capital costs and include a timeline for inflow and infiltration mitigation 
24.20 	construction, pursuant to guidelines established by the council. The council must prioritize 
24.21 	applications that meet affordability criteria for projects located in a census block group with 
24.22 	a supplemental demographic index score in the 70th percentile or higher within the state of 
24.23 	Minnesota.

24.24 	Sec. 8. Laws 2023, chapter 71, article 1, section 14, subdivision 21, is amended to read:

24.25
24.26	Subd. 21.Inver Grove Heights; Heritage Village 
Park
 				2,000,000
	
24.27 	For a grant to the city of Inver Grove Heights 
24.28 	to predesign, design, construct, furnish, and 
24.29 	equip an inclusive accessible play structure
24.30 	structures for children and to predesign, 
24.31 	design, construct, furnish, and equip accessible 
25.1 	restrooms, water fountains, and a fixed-shade 
25.2 	structure structures, at Heritage Village Park.

25.3 	Sec. 9. CLOQUET FORESTRY CENTER; LAND TRANSFER.
 25.4 	(a) The commissioner of administration must convey for no consideration all state-owned 
25.5 	land within boundaries of the Cloquet Forestry Center to the Board of Regents of the 
25.6 	University of Minnesota to facilitate the university's goal of returning this land, and similarly 
25.7 	situated land currently owned by the university, to the Fond du Lac Band of Lake Superior 
25.8 	Chippewa.
25.9 	(b) The conveyance must be in a form approved by the attorney general. The attorney 
25.10 	general may make changes to the land description to correct errors and ensure accuracy.
25.11 	(c) The land to be conveyed is located in Carlton County and is described as follows:
25.12 	(1) the Southeast Quarter of the Northwest Quarter of Section 30, Township 49 North, 
25.13 	Range 17 West;
25.14 	(2) the East Half of the Northeast Quarter of Section 36, Township 49 North, Range 18 
25.15 	West;
25.16 	(3) the Northwest Quarter of the Southeast Quarter of Section 29, Township 49 North, 
25.17 	Range 17 West;
25.18 	(4) the Northwest Quarter of the Northwest Quarter of Section 29, Township 49 North, 
25.19 	Range 17 West;
25.20 	(5) the Northwest Quarter of the Southwest Quarter (or Lot 3) of Section 30, Township 
25.21 	49 North, Range 17 West;
25.22 	(6) the Southwest Quarter of the Northwest Quarter (or Lot 2) of Section 31, Township 
25.23 	49 North, Range 17 West;
25.24 	(7) the Southeast Quarter of the Northeast Quarter of Section 32, Township 49 North, 
25.25 	Range 17 West; and
25.26 	(8) the North Half of the Northeast Quarter of Section 32, Township 49 North, Range 
25.27 	17 West.

25.28 	Sec. 10. REPEALER.
 25.29 	(a) Minnesota Statutes 2024, section 16A.662, is repealed.
25.30 	(b) Minnesota Statutes 2024, section 116J.417, subdivision 9, is repealed.

26.1 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
26.2 	Paragraph (b) is effective retroactively from June 2, 2023.

26.3 	Sec. 11. EFFECTIVE DATE.
 26.4 	Except as otherwise provided, this article is effective the day following final enactment.

	ARTICLE 1	APPROPRIATIONS........	Page.Ln 1.12	
	ARTICLE 2	MISCELLANEOUS........	Page.Ln 19.5	

APPENDIX 

Repealed Minnesota Statutes: 25-03189 

16A.662 INFRASTRUCTURE DEVELOPMENT BONDS.Subdivision 1.Infrastructure development fund. 
The infrastructure development fund is created as an account in the state treasury. The commissioner of management and budget shall credit to the fund income from the sources provided by law. The commissioner of management and budget shall from time to time certify to the State Board of Investment the assets of the fund not currently needed. The amount certified must be invested by the State Board of Investment subject to section 11A.24. Investment income and investment losses attributable to investment of fund assets must be credited to or borne by the fund. 

Subd. 2.Bonds authorized. 
When authorized by law enacted in accordance with the constitution, article XI, sections 5 and 7, the commissioner may by order sell and issue bonds of the state evidencing public debt incurred for any purpose stated in the law. The bonds are general obligations of the state, and the full faith and credit of the state are pledged for their payment. 

Subd. 3.Manner of issuance; maturities. 
The bonds must be issued and sold in accordance with section 16A.641. Sections 16A.672 and 16A.675 apply to the bonds. 

Subd. 4.Debt service account; appropriation of debt service account money. 
There is established within the state bond fund a separate and special account designated as the infrastructure development bond debt service account. The money on hand in the debt service account must be used solely for the payment of the principal of and interest on bonds issued under Laws 1990, chapter 610, article 1, section 30, subdivision 2, and is appropriated for this purpose. This appropriation does not cancel as long as any of the bonds remain outstanding. 

Subd. 5.Assessment to higher education systems. 
(a) In order to reduce the amount otherwise required to be transferred to the state bond fund with respect to bonds heretofore or hereafter issued under Laws 1990, chapter 610, article 1, section 30, subdivision 2, the commissioner of management and budget shall assess each higher education system for one-third the amount that would otherwise need to be transferred with respect to those bonds sold to finance capital improvement projects at institutions under the control of the system; provided that, to the extent that the amount to be transferred is for payment of principal and interest on bonds sold to finance life safety improvements, the commissioner must not assess the higher education systems for the transfer. 

(b) After each sale of the bonds, the commissioner of management and budget shall notify the Board of Trustees of the Minnesota State Colleges and Universities and the regents of the University of Minnesota of the amounts for which each system is responsible for each year for the life of the bonds. The amounts payable each year are reduced by one-third of the net income from investment of those bond proceeds that must be allocated among the systems in proportion to the amount of principal and interest otherwise required to be paid by each. Each higher education system shall pay its annual share of debt service payments to the commissioner of management and budget by December 1 each year. If a higher education system fails to make a payment when due, the commissioner of management and budget shall reduce allotments for appropriations from the general fund otherwise payable to the system to cover the amount of the missed debt service payment. The commissioner of management and budget shall credit the payments received from the higher education systems to the infrastructure development bond debt service account in the state bond fund each December 1 before the transfer is made under subdivision 4. 

Subd. 6.Appropriation from general fund. 
There is annually appropriated from the general fund for transfer to the infrastructure development bond debt service account the amount that, added to the amount in the infrastructure development bond debt service account on December 1 each year, after giving effect to subdivisions 4 and 5, is equal to the full amount of principal and interest to come due on all bonds to and including July 1 in the second ensuing year. 

Subd. 7.Constitutional tax levy. 
Under the constitution, article XI, section 7, the state auditor must levy each year on all taxable property within the state a tax sufficient, with the amount then on hand in the infrastructure development bond debt service account, to pay all principal and interest on the bonds due and to become due to and including July 1 in the second ensuing year. The tax is not subject to limit as to rate or amount. However, the amount of money appropriated from other sources as provided in subdivisions 4, 5, and 6, and actually received and on hand before the levy in any year, reduces the amount of the tax otherwise required to be levied. The proceeds of the tax must be credited to the infrastructure development bond debt service account. 

Subd. 8.Application and appropriation of proceeds. 
The proceeds of the bonds must be deposited and spent as provided in this subdivision and are appropriated for those purposes. Any accrued interest and any premium received on the sale of the bonds must be credited to the infrastructure development bond debt service account. Except as otherwise required by law, the balance of the bond proceeds shall be credited to the infrastructure development fund and spent for the purposes specified in the law authorizing the issuance of the bonds. So much of the proceeds as is necessary must be used to pay costs incurred in issuing and selling the bonds. 

116J.417 GREATER MINNESOTA CHILD CARE FACILITY CAPITAL GRANT PROGRAM.Subd. 9.Cancellation of grant; return of money. 
If the commissioner determines that a grantee is unable to proceed with an approved project or has not expended or obligated the grant money within five years of entering into the grant agreement with the commissioner, the commissioner shall cancel the grant and the money is available for the commissioner to make other grants under this section. Money made available to the commissioner from a canceled grant is subject to cancellation under section 16A.642 as if it had been appropriated to the program in the year in which the grant is canceled.