SF 3056

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/28/2025 10:09 a.m.

A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and for other improvements of a capital nature with certain
conditions; establishing new programs and modifying existing programs;
authorizing the sale and issuance of state bonds; appropriating money; amending
Minnesota Statutes 2024, sections 16A.501; 16B.97, subdivision 1; 16B.98,
subdivision 1; 116.182, subdivision 5; 142A.46, subdivision 1; 446A.07,
subdivision 8; 446A.072, subdivision 5a; 446A.073, subdivision 1; 446A.081,
subdivision 9; Laws 2013, chapter 143, article 12, section 21; proposing coding
for new law in Minnesota Statutes, chapters 16B; 115B; 446A; repealing Minnesota
Statutes 2024, sections 16A.662; 116J.417, subdivision 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin CAPITAL IMPROVEMENT APPROPRIATIONS. new text end

new text begin (a) The sums shown in the column under "Appropriations" are appropriated from the
bond proceeds fund, or another named fund, to the state agencies or officials indicated, to
be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
by the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public
land and buildings and other public improvements of a capital nature, or as authorized by
the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless
otherwise specified, money appropriated in this act:
new text end

new text begin (1) may be used to pay state agency staff costs that are attributed directly to the capital
program or project in accordance with accounting policies adopted by the commissioner of
management and budget;
new text end

new text begin (2) is available until the project is completed or abandoned subject to Minnesota Statutes,
section 16A.642;
new text end

new text begin (3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
should not be used for projects that can be financed within a reasonable time frame under
Minnesota Statutes, section 16B.322 or 16C.144; and
new text end

new text begin (4) is available for a grant to a political subdivision after the commissioner of management
and budget determines that an amount sufficient to complete the project as described in this
act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
new text end

new text begin (b) Unless otherwise specified, appropriations in this article from the general fund or
from the trunk highway fund are made in fiscal year 2026 and are onetime appropriations.
new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 102,994,000 new text end

new text begin To the Board of Regents of the University of
Minnesota for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end new text begin Higher Education Asset Preservation and Replacement (HEAPR) new text end

new text begin 102,994,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

Sec. 3. new text begin MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 102,994,000 new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Higher Education Asset Preservation and Replacement (HEAPR) new text end

new text begin 102,994,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

Sec. 4. new text begin EDUCATION new text end

new text begin $ new text end

new text begin 900,000 new text end

new text begin To the commissioner of education for library
construction grants under Minnesota Statutes,
section 134.45.
new text end

Sec. 5. new text begin MINNESOTA STATE ACADEMIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,950,000 new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 1,150,000 new text end

new text begin For capital asset preservation improvements
and betterments on both campuses of the
Minnesota State Academies, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

new text begin Subd. 3. new text end new text begin Student Center Predesign new text end

new text begin 400,000 new text end

new text begin To predesign the renovation or replacement
of existing spaces for a new student center on
the Deaf School Campus.
new text end

new text begin Subd. 4. new text end new text begin Therapy Pool Improvements Predesign new text end

new text begin 400,000 new text end

new text begin To predesign the construction of the
replacement and relocation of the therapy pool
and therapeutic hot tub and renovations to the
existing pool area, including related building
and site improvements.
new text end

Sec. 6. new text begin PERPICH CENTER FOR ARTS EDUCATION new text end

new text begin $ new text end

new text begin 1,530,000 new text end

new text begin To the commissioner of administration for
capital asset preservation improvements and
betterments at the Perpich Center for Arts
Education, to be spent in accordance with
Minnesota Statutes, section 16B.307.
new text end

Sec. 7. new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 98,000,000 new text end

new text begin (a) To the commissioner of natural resources
for the purposes specified in this section.
new text end

new text begin (b) The appropriations in this section are
subject to the requirements of the natural
resources capital improvement program under
Minnesota Statutes, section 86A.12, unless
this section or the statutes referred to in this
section provide more specific standards,
criteria, or priorities for projects than
Minnesota Statutes, section 86A.12.
new text end

new text begin Subd. 2. new text end new text begin Natural Resources Asset Preservation new text end

new text begin 61,000,000 new text end

new text begin For the preservation and replacement of
state-owned facilities and recreational assets
operated by the commissioner of natural
resources to be spent in accordance with
Minnesota Statutes, section 84.946.
new text end

new text begin Subd. 3. new text end new text begin Betterment of Buildings new text end

new text begin 11,100,000 new text end

new text begin For acquisition, predesign, design, and
construction to replace existing facilities that
no longer meet the business needs of the
department or to acquire or construct new
facilities.
new text end

new text begin Subd. 4. new text end new text begin Acquisition and Betterment of Public Lands new text end

new text begin 6,500,000 new text end

new text begin (a) For the betterment of public lands and
other improvements of a capital nature. The
commissioner shall determine project priorities
as appropriate under Minnesota Statutes,
section 86A.12. Any reforestation shall be
conducted in accordance with Minnesota
Statutes, section 89.002, subdivision 2.
new text end

new text begin (b) For acquisition of public lands for the
purposes described in Minnesota Statutes,
section 86A.12, subdivision 2. The
commissioner shall determine project priorities
as appropriate under Minnesota Statutes,
section 86A.12.
new text end

new text begin Subd. 5. new text end new text begin Accessibility new text end

new text begin 1,900,000 new text end

new text begin For the design and construction of accessibility
improvements at state parks, recreation areas,
and wildlife management areas.
new text end

new text begin Subd. 6. new text end new text begin Flood Hazard Mitigation new text end

new text begin 5,600,000 new text end

new text begin (a) For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161.
new text end

new text begin (b) Project priorities shall be determined by
the commissioner as appropriate, based on
need and consideration of available leveraging
of federal, state, and local funds.
new text end

new text begin (c) To the extent practicable and consistent
with the project, recipients of appropriations
for flood control projects in this subdivision
shall create wetlands that are eligible for
wetland replacement credit to replace wetlands
drained or filled as the result of repair,
reconstruction, replacement, or rehabilitation
of an existing public road under Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m).
new text end

new text begin (d) To the extent that the cost of a municipal
project exceeds two percent of the median
household income in the municipality
multiplied by the number of households in the
municipality, this appropriation is also for the
local share of the project.
new text end

new text begin Subd. 7. new text end new text begin Parks and Trails Local and Regional Recreation Grants new text end

new text begin 1,900,000 new text end

new text begin For matching grants under Minnesota Statutes,
section 85.019.
new text end

new text begin Subd. 8. new text end new text begin Dam Renovation, Repair, Removal new text end

new text begin 10,000,000 new text end

new text begin (a) For design, engineering, and construction
to repair, reconstruct, or remove publicly
owned dams and respond to dam safety
emergencies on publicly owned dams. The
commissioner shall determine project priorities
as appropriate under Minnesota Statutes,
sections 103G.511 and 103G.515.
new text end

new text begin (b) This appropriation includes money for the
Rapidan Dam removal and bank stabilization
project in Blue Earth County.
new text end

new text begin (c) If the commissioner determines that a
project is not ready to proceed, this
appropriation may be used for other projects
on the commissioner's priority list.
new text end

new text begin Subd. 9. new text end new text begin Unspent Appropriations new text end

new text begin The unspent portion of an appropriation for a
project in this section that is complete, upon
written notice to the commissioner of
management and budget, is available for asset
preservation under Minnesota Statutes, section
84.946. Minnesota Statutes, section 16A.642,
applies from the date of the original
appropriation to the unspent amount
transferred.
new text end

Sec. 8. new text begin POLLUTION CONTROL AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 8,000,000 new text end

new text begin To the Pollution Control Agency for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Statewide Drinking Water Contamination Mitigation Program new text end

new text begin 8,000,000 new text end

new text begin For projects or grants under Minnesota
Statutes, section 115B.245.
new text end

Sec. 9. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 12,900,000 new text end

new text begin To the Board of Water and Soil Resources for
the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Local Government Roads Wetland Replacement Program new text end

new text begin 3,600,000 new text end

new text begin To acquire land or permanent easements and
to restore, create, enhance, and preserve
wetlands to replace those wetlands drained or
filled as a result of the repair, reconstruction,
replacement, or rehabilitation of existing
public roads as required by Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m). Notwithstanding
Minnesota Statutes, section 103G.222,
subdivision 3, the board may implement the
wetland replacement program statewide. The
purchase price paid for acquisition of land or
perpetual easement must be a fair market value
as determined by the board. The board may
enter into agreements with the federal
government, other state agencies, political
subdivisions, nonprofit organizations, fee title
owners, or other qualified private entities to
acquire wetland replacement credits in
accordance with Minnesota Rules, chapter
8420. Up to five percent of this appropriation
may be used for restoration and enhancement.
new text end

new text begin Subd. 3. new text end new text begin Reinvest in Minnesota (RIM) Reserve Program new text end

new text begin 9,300,000 new text end

new text begin To acquire conservation easements from
landowners to preserve, restore, create, and
enhance wetlands and associated uplands of
prairie and grasslands, and to restore and
enhance rivers and streams, riparian lands, and
uplands of prairie and grasslands, in order to
protect soil and water quality, support fish and
wildlife habitat, reduce flood damage, and
provide other public benefits. The provisions
of Minnesota Statutes, section 103F.515, apply
to this program. The board shall give priority
to leveraging federal money by enrolling
targeted new lands or enrolling
environmentally sensitive lands that have
expiring federal conservation agreements. The
board is authorized to enter into new
agreements and amend past agreements with
landowners as required by Minnesota Statutes,
section 103F.515, subdivision 5, to allow for
restoration. Up to five percent of this
appropriation may be used for restoration and
enhancement.
new text end

Sec. 10. new text begin MINNESOTA ZOOLOGICAL GARDEN new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 3,810,000 new text end

new text begin To the Minnesota Zoological Board for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 3,810,000 new text end

new text begin For capital asset preservation improvements
and betterments to infrastructure and exhibits
at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding the specified uses
of money under Minnesota Statutes, section
16B.307, this appropriation may be used to
replace buildings that are in poor condition,
outdated, and no longer support the work of
the Minnesota Zoological Garden; to construct
and renovate trails and roads on the Minnesota
Zoological Garden site; and to renovate animal
exhibits to meet modern animal welfare
standards, address animal and staff safety
issues, and improve the viewing experience
for guests.
new text end

Sec. 11. new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 5,600,000 new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Capital Asset Preservation and Replacement Account new text end

new text begin 1,900,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 16A.632.
new text end

new text begin Subd. 3. new text end new text begin Capitol Complex - Physical Security Upgrades Phase III new text end

new text begin 3,700,000 new text end

new text begin For the continuation of the design,
construction, and equipping required to
upgrade the physical security elements and
systems for the Capitol Mall and the buildings
listed in this subdivision, their attached tunnel
systems, their surrounding grounds, and
parking facilities as identified in the 2017
Minnesota State Capitol Complex Physical
Security Predesign completed by Miller
Dunwiddie and an updated assessment
completed in 2022. Upgrades include but are
not limited to the installation of bollards, blast
protection, infrastructure security screen walls,
door access controls, emergency call stations,
surveillance systems, security kiosks, lighting
system upgrades, locking devices, and traffic
and crowd control devices. This appropriation
includes money for work associated with the
following buildings: Administration,
Ag/Health Lab, Andersen, BCA Maryland,
Capitol, Centennial, Freeman, Governor's
Residence, Judicial Center, Minnesota History
Center, Capitol Complex Power Plant and
Shops, Stassen, Senate, and Veterans Service.
new text end

Sec. 12. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 9,500,000 new text end

new text begin To the Minnesota Amateur Sports
Commission for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 8,600,000 new text end

new text begin For asset preservation improvements and
betterments of a capital nature at the National
Sports Center in Blaine, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

new text begin Subd. 3. new text end new text begin Mighty Ducks new text end

new text begin 900,000 new text end

new text begin For grants to local units of government under
Minnesota Statutes, section 240A.09,
paragraph (b), to improve indoor air quality
or eliminate R-22. This appropriation must
not be used to acquire ice resurfacing or
edging equipment.
new text end

Sec. 13. new text begin MILITARY AFFAIRS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin To the adjutant general for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Duluth Hangar Design new text end

new text begin 3,000,000 new text end

new text begin To predesign and design the construction of
a new hangar to hold aircraft at the Duluth
International Airport in support of the 148th
Fighter Wing of the Minnesota Air National
Guard to replace existing hangars.
new text end

Sec. 14. new text begin PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 72,887,000 new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Southern Minnesota BCA Regional Office and Laboratory new text end

new text begin 68,684,000 new text end

new text begin To complete design, construct, furnish, and
equip a new Bureau of Criminal Apprehension
regional office and laboratory facility in
Mankato. This appropriation may also be used
to design and complete hazardous materials
abatement. This appropriation may also be
used to fund the state's portion of the cost to
extend Bassett Drive to serve the project site.
new text end

new text begin Subd. 3. new text end new text begin Bemidji BCA Regional Office and Laboratory Expansion new text end

new text begin 4,203,000 new text end

new text begin For predesign, design, and land acquisition
for the renovation and expansion of the Bureau
of Criminal Apprehension's Bemidji Regional
Office and Forensic Science Laboratory.
new text end

Sec. 15. new text begin TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 4,600,000 new text end

new text begin To the commissioner of transportation for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Highway Rail Grade Crossings new text end

new text begin 1,800,000 new text end

new text begin To design, construct, and equip the
replacement of active highway rail grade
warning devices that have reached the end of
their useful life or new highway rail grade
warning devices.
new text end

new text begin Subd. 3. new text end new text begin Port Development Assistance Program new text end

new text begin 2,800,000 new text end

new text begin For grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly
owned.
new text end

Sec. 16. new text begin METROPOLITAN COUNCIL new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 21,900,000 new text end

new text begin To the Metropolitan Council for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Metropolitan Cities Inflow and Infiltration Grants new text end

new text begin 4,600,000 new text end

new text begin For grants to cities and townships within the
metropolitan area, as defined in Minnesota
Statutes, section 473.121, subdivision 2, for
capital improvements in municipal wastewater
collection systems to reduce the amount of
inflow and infiltration to the Metropolitan
Council's metropolitan sanitary sewer disposal
system. Grants from this appropriation are for
up to 50 percent of the cost to mitigate inflow
and infiltration in the publicly owned
municipal wastewater collection systems. To
be eligible for a grant, a city or township must
be identified by the council as a contributor
of excessive inflow and infiltration in the
metropolitan disposal system or have a
measured flow rate within 20 percent of its
allowable council-determined inflow and
infiltration limits. The council must award
grants based on applications from cities or
townships that identify eligible capital costs
and include a timeline for inflow and
infiltration mitigation construction, pursuant
to guidelines established by the council.
new text end

new text begin Subd. 3. new text end new text begin Metropolitan Regional Parks and Trails new text end

new text begin 2,300,000 new text end

new text begin For the cost of improvements and betterments
of a capital nature and acquisition by the
council and metropolitan parks implementing
agencies as defined in Minnesota Statutes,
section 473.351, of regional recreational
open-space lands in accordance with the
council's policy plan as provided in Minnesota
Statutes, section 473.147. This appropriation
must not be used to purchase easements.
new text end

new text begin Subd. 4. new text end new text begin Arterial Bus Rapid Transit new text end

new text begin 15,000,000 new text end

new text begin For real property acquisition, predesign,
design, engineering, and construction of
arterial bus rapid transit, including utility
relocation, demolition, and furnishing and
equipping facilities for arterial bus rapid transit
projects. The council must allocate the money
among projects based on criteria in its
transitway capital improvement plan
including: consistency with the council's
transportation policy plan; project readiness;
potential current and forecasted ridership;
expansion of the bus rapid transit system;
availability of federal or other matching funds;
coordination with other major projects; and
additional criteria for priorities otherwise
specified in state law or rule applicable to bus
rapid transit, including state law authorizing
state bond fund appropriations for a bus rapid
transit project.
new text end

Sec. 17. new text begin DIRECT CARE AND TREATMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 26,430,000 new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 11,430,000 new text end

new text begin For asset preservation improvements and
betterments of a capital nature, to be spent in
accordance with Minnesota Statutes, section
16B.307, at facilities operated by Direct Care
and Treatment following the department's
separation from the Department of Human
Services.
new text end

new text begin Subd. 3. new text end new text begin St. Peter Water and Sewer Construction new text end

new text begin 15,000,000 new text end

new text begin To design, construct, and equip upgrades and
the replacement of water, sanitary, and storm
sewer infrastructure at the St. Peter Campus.
This appropriation may also be used to design
and complete hazardous materials abatement.
new text end

Sec. 18. new text begin CHILDREN, YOUTH, AND FAMILIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 2,700,000 new text end

new text begin To the commissioner of Children, Youth, and
Families for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end new text begin Early Childhood Facilities Grants new text end

new text begin 2,700,000 new text end

new text begin For grants under Minnesota Statutes, section
142A.46, to predesign, design, construct,
renovate, furnish, and equip early childhood
learning facilities.
new text end

Sec. 19. new text begin VETERANS AFFAIRS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 29,344,000 new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 11,940,000 new text end

new text begin For asset preservation improvements and
betterments of a capital nature at the veterans
homes in Minneapolis, Hastings, Fergus Falls,
Silver Bay, and Luverne, and the state veterans
cemeteries at Little Falls, Preston, and Duluth,
to be spent in accordance with Minnesota
Statutes, section 16B.307.
new text end

new text begin Subd. 3. new text end new text begin Minneapolis Veterans Home - Building 16 Remodel new text end

new text begin 17,404,000 new text end

new text begin To design, construct, furnish, and equip the
renovation of the Minneapolis Veterans Home
Building 16. This appropriation may also be
used to design and complete hazardous
materials abatement.
new text end

Sec. 20. new text begin CORRECTIONS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 123,544,000 new text end

new text begin To the commissioner of administration for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Asset Preservation new text end

new text begin 65,574,000 new text end

new text begin For asset preservation improvement and
betterments of a capital nature at the
Minnesota correctional facilities statewide to
be spent in accordance with Minnesota
Statutes, section 16B.307.
new text end

new text begin Subd. 3. new text end new text begin Minnesota Correctional Facility - Rush City new text end

new text begin 57,970,000 new text end

new text begin To update predesign, design, construct,
furnish, and equip a new building addition and
to design, renovate, and equip existing space
to provide incarcerated persons services at the
Rush City Correctional Facility. This
appropriation may also be used to design and
complete hazardous materials abatement.
new text end

new text begin Subd. 4. new text end new text begin Unspent Appropriations new text end

new text begin The unspent portion of an appropriation for a
Department of Corrections project in this
section that is complete, upon written notice
to the commissioner of management and
budget, is available for asset preservation
under Minnesota Statutes, section 16B.307.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to
the unspent amount transferred.
new text end

Sec. 21. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 4,500,000 new text end

new text begin To the commissioner of employment and
economic development for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Greater Minnesota Business Development Public Infrastructure new text end

new text begin 2,700,000 new text end

new text begin For grants under Minnesota Statutes, section
116J.431.
new text end

new text begin Subd. 3. new text end new text begin Transportation Economic Development Infrastructure new text end

new text begin 1,800,000 new text end

new text begin For grants under Minnesota Statutes, section
116J.436.
new text end

Sec. 22. new text begin PUBLIC FACILITIES AUTHORITY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 99,012,000 new text end

new text begin To the Public Facilities Authority for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin State Match for Federal Grants to State Revolving Loan Programs new text end

new text begin 39,000,000 new text end

new text begin To match federal capitalization grants for the
clean water revolving fund under Minnesota
Statutes, section 446A.07, and the drinking
water revolving fund under Minnesota
Statutes, section 446A.081. This appropriation
must be used for qualified capital projects.
new text end

new text begin Subd. 3. new text end new text begin Water Infrastructure Funding Program new text end

new text begin 23,485,000 new text end

new text begin (a) For grants to eligible municipalities under
the water infrastructure funding program under
Minnesota Statutes, section 446A.072.
new text end

new text begin (b) $10,000,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range under
the clean water revolving fund program.
new text end

new text begin (c) $13,485,000 is for drinking water projects
listed on the commissioner of health's project
priority list in the fundable range under the
drinking water revolving fund program.
new text end

new text begin (d) After all eligible projects under paragraph
(b) or (c) have been funded in a fiscal year,
the Public Facilities Authority may transfer
any remaining, uncommitted money to eligible
projects under a program defined in paragraph
(b) or (c) based on that program's project
priority list.
new text end

new text begin Subd. 4. new text end new text begin Point Source Implementation Grants Program new text end

new text begin 18,527,000 new text end

new text begin For grants to eligible municipalities under the
point source implementation grants program
under Minnesota Statutes, section 446A.073.
This appropriation must be used for qualified
capital projects.
new text end

new text begin Subd. 5. new text end new text begin Emerging Contaminants Grant Program new text end

new text begin 18,000,000 new text end

new text begin For grants to eligible municipalities under the
Emerging Contaminants Grant Program under
Minnesota Statutes, section 446A.082.
new text end

Sec. 23. new text begin MINNESOTA HOUSING FINANCE AGENCY new text end

new text begin $ new text end

new text begin 7,000,000 new text end

new text begin To the Minnesota Housing Finance Agency
to finance the costs of rehabilitation to
preserve public housing under Minnesota
Statutes, section 462A.202, subdivision 3a.
For purposes of this section, "public housing"
means housing for low-income persons and
households financed by the federal
government and publicly owned. Priority may
be given to proposals that maximize nonstate
resources to finance the capital costs and
requests that prioritize health, safety, and
energy improvements. The priority in
Minnesota Statutes, section 462A.202,
subdivision 3a, for projects to increase the
supply of affordable housing and the
restrictions of Minnesota Statutes, section
462A.202, subdivision 7, do not apply to this
appropriation.
new text end

Sec. 24. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 6,115,000 new text end

new text begin To the Minnesota Historical Society for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Historic Sites Asset Preservation new text end

new text begin 5,215,000 new text end

new text begin For capital improvements and betterments at
state historic sites, buildings, landscaping at
historic buildings, exhibits, markers, and
monuments, to be spent in accordance with
Minnesota Statutes, section 16B.307. The
society shall determine project priorities as
appropriate based on need.
new text end

new text begin Subd. 3. new text end new text begin County and Local Preservation Grants new text end

new text begin 900,000 new text end

new text begin For grants to county and local jurisdictions as
matching money for historic preservation
projects of a capital nature, as provided in
Minnesota Statutes, section 138.0525.
new text end

Sec. 25. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this act from the bond proceeds fund, and to
provide for expenses authorized in Minnesota Statutes, section 16A.641, subdivision 8,
paragraph (c), the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $790,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

Sec. 26. new text begin BOND SALE SCHEDULE.
new text end

new text begin The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2027, no more than
$1,228,858,000 will need to be transferred from the general fund to the state bond fund to
pay principal and interest due and to become due on outstanding state general obligation
bonds. During the biennium, before each sale of state general obligation bonds, the
commissioner of management and budget shall calculate the amount of debt service payments
needed on bonds previously issued and shall estimate the amount of debt service payments
that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
amount of bonds scheduled to be sold so as to remain within the limit set by this section.
The amount needed to make the debt service payments is appropriated from the general
fund as provided in Minnesota Statutes, section 16A.641.
new text end

Sec. 27. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 16A.501, is amended to read:

16A.501 REPORT ON EXPENDITURE OF BOND PROCEEDS.

(a) The commissioner of management and budget must report annually to the legislature
on the degree to which entities receiving appropriations for capital projects in previous
omnibus capital improvement acts have encumbered or expended that money. The report
must be submitted to the chairs of the house of representatives Ways and Means Committee
and the senate Finance Committee by January deleted text begin 1 deleted text end new text begin 15 new text end of each year.

(b) The commissioner of management and budget must report by January 15 of each
year to the chairs and ranking minority members of the house of representatives and senate
committees with jurisdiction over capital investment, finance, and ways and means on the
amount and percentage of each agency's capital appropriation that is used to pay for the
costs of staff directly attributable to capital programs or projects funded with state general
obligation bond proceeds. The report must also include information on agencies' compliance
with the commissioner's policies governing the use of general obligation bond proceeds to
pay staff costs and any changes to the commissioner's policies.

Sec. 2.

new text begin [16B.851] STATE BUILDING RENEWABLE ENERGY, STORAGE, AND
ELECTRIC VEHICLE ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "State agency" has the meaning given in section 16B.321, subdivision 5, and, in
addition to the agencies listed in section 15.01, includes the Office of Higher Education,
Housing Finance Agency, Pollution Control Agency, and Bureau of Mediation Services. It
also includes agencies, boards, commissions, committees, councils, and authorities as defined
in section 15.012.
new text end

new text begin (c) "State building" means a building or facility owned by the state of Minnesota.
new text end

new text begin (d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1,
paragraph (c), and includes thermal energy.
new text end

new text begin (e) "Renewable energy improvement" means the predesign, design, acquisition,
construction, or installation of a renewable energy production system or energy storage
equipment or system, and associated infrastructure and facilities that is designed to result
in a demand-side net reduction in energy use by the state building's electrical, heating,
ventilating, air-conditioning, or hot water systems.
new text end

new text begin (f) "Energy storage" means the predesign, design, acquisition, construction, or installation
of technology which stores and delivers electric or thermal energy.
new text end

new text begin (g) "Electric vehicle service equipment" or "EVSE" means electric vehicle service
equipment, including charging equipment and associated infrastructure and site upgrades.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A state building renewable energy, storage, and electric vehicle
account is established in the special revenue fund to provide money to:
new text end

new text begin (1) state agencies to design, construct, and equip renewable energy improvement and
renewable energy storage projects at state buildings;
new text end

new text begin (2) state agencies to purchase state fleet electric vehicles in accordance with section
16C.135;
new text end

new text begin (3) state agencies to purchase and install EVSE;
new text end

new text begin (4) the commissioner of administration to manage the program;
new text end

new text begin Subd. 3. new text end

new text begin Account management. new text end

new text begin The commissioner shall manage and administer the
state building renewable energy, storage, and electric vehicle account.
new text end

new text begin Subd. 4. new text end

new text begin Accepting funds. new text end

new text begin (a) The commissioner or state agency designated by the
commissioner shall be responsible for making application to the federal government on
behalf of the state of Minnesota for state projects eligible for elective payments under
sections 6417 and 6418 of the Internal Revenue Code, as added by Public Law 117-169.
new text end

new text begin (b) The commissioner may apply for, receive, and expend money made available from
federal, state, or other sources for the purposes of carrying out the duties in this section.
new text end

new text begin (c) Notwithstanding section 16A.72, all funds received under this subdivision shall be
deposited into the state building renewable energy, storage, and electric vehicle account
and appropriated to the commissioner for the purposes of subdivision 2 and as permitted
under this section.
new text end

new text begin (d) Money in the state building renewable energy, storage, and electric vehicle account
does not cancel and is available until expended.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin A state agency applying for state building renewable energy,
storage, EVSE, and electric fleet vehicle funds must submit an application to the
commissioner on a form, in the manner, and at the time prescribed by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Treatment of certain payments received from federal government. new text end

new text begin (a)
Federal payments received for eligible renewable energy improvement and storage projects,
and EVSE projects, made with appropriations from general obligation bonds, may be
transferred to the state bond fund if consistent with federal treasury regulations.
new text end

new text begin (b) Federal payments received for eligible electric fleet vehicle purchases by the
Department of Administration's fleet division shall be transferred to the motor pool revolving
account established in section 16B.54, subdivision 8.
new text end

new text begin (c) Federal payments received for eligible electric fleet vehicle purchases made directly
by a state agency shall be transferred to the fund from which the purchase was made.
new text end

Sec. 3.

Minnesota Statutes 2024, section 16B.97, subdivision 1, is amended to read:

Subdivision 1.

Grant agreement.

(a) A grant agreement is a written instrument or
electronic document defining a legal relationship between a granting agency and a grantee
when the principal purpose of the relationship is to transfer cash or something of value to
the recipient to support a public purpose authorized by law instead of acquiring by
professional or technical contract, purchase, lease, or barter property or services for the
direct benefit or use of the granting agency.

(b) This section does not apply to general obligation grants as defined by section 16A.695
deleted text begin and deleted text end new text begin , new text end capital project grants to political subdivisions as defined by section 16A.86 new text begin , or capital
project grants otherwise subject to section 16A.642, which grants shall be subject to the
policies and procedures adopted by the commissioner of management and budget or otherwise
specified in applicable law new text end .

Sec. 4.

Minnesota Statutes 2024, section 16B.98, subdivision 1, is amended to read:

Subdivision 1.

Limitation.

(a) As a condition of receiving a grant from an appropriation
of state funds, the recipient of the grant must agree to minimize administrative costs. The
granting agency is responsible for negotiating appropriate limits to these costs so that the
state derives the optimum benefit for grant funding.

(b) This section does not apply to general obligation grants as defined by section 16A.695
deleted text begin and also deleted text end new text begin , new text end capital project grants to political subdivisions as defined by section 16A.86 new text begin , or
capital project grants otherwise subject to section 16A.642 new text end .

Sec. 5.

new text begin [115B.245] STATEWIDE DRINKING WATER CONTAMINATION
MITIGATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The commissioner may design and construct, or
may make grants to eligible grantees as provided under this section to design and construct,
projects to provide safe drinking water, due to contamination of drinking water by hazardous
substances, through projects such as treatment systems, new drinking water wells, sealing
contaminated wells, and connecting to alternative drinking water sources. The criteria for
selecting projects must follow the criteria and rules established under section 115B.17.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Eligible grantee" means:
new text end

new text begin (1) for projects funded from the statewide drinking water contamination mitigation
account in the bond proceeds fund, a city, county, school district, joint powers board, or
other political subdivision of the state; and
new text end

new text begin (2) for projects funded from the statewide drinking water contamination mitigation
account in the general fund, any person.
new text end

new text begin (c) "Private infrastructure projects" means improvements made to nonpublicly owned
infrastructure such as sealing of private wells, connecting private properties to water mains,
water service fees, treatment systems, and drilling new private wells in an unimpaired
drinking water aquifer.
new text end

new text begin (d) "Public infrastructure projects" means improvements made to publicly owned
infrastructure such as water main installation, public water system improvements, treatment
systems, and associated improvements.
new text end

new text begin Subd. 3. new text end

new text begin Accounts. new text end

new text begin (a) A statewide drinking water contamination mitigation account is
established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner for this purpose. Money in the account may only be
expended to acquire land or an interest in land and predesign, design, construct, and improve
public infrastructure projects that further the purposes of this section. Notwithstanding
section 115B.17, subdivision 6 or 16, any money recovered in a civil action for a project
financed with bonds under this section shall be transferred to the commissioner of
management and budget and applied toward principal and interest on outstanding bonds.
new text end

new text begin (b) A statewide drinking water contamination mitigation account is established in the
general fund. The account consists of money as provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on public or private infrastructure projects that further the purposes
of this section.
new text end

Sec. 6.

Minnesota Statutes 2024, section 116.182, subdivision 5, is amended to read:

Subd. 5.

Rules.

new text begin (a) new text end The agency shall adopt rules for the administration of the financial
assistance program. For wastewater treatment projects, the rules must include:

(1) application requirements;

(2) criteria for the ranking of projects in order of priority based on factors including the
type of project and the degree of environmental impact, and scenic and wild river standards;
and

(3) criteria for determining essential project components.

new text begin (b) Notwithstanding any provision in Minnesota Rules, chapter 7077, to the contrary,
for purposes of Minnesota Rules, parts 7077.0117, 7077.0118, and 7077.0119, the
commissioner must assign 40 points if a municipality is proposing a project to address
emerging contaminants, as defined by the United States Environmental Protection Agency.
This paragraph expires June 30, 2030.
new text end

Sec. 7.

Minnesota Statutes 2024, section 142A.46, subdivision 1, is amended to read:

Subdivision 1.

Grant authority.

The commissioner may make grants to state agencies
and political subdivisions to construct or rehabilitate facilities for early childhood programs,
crisis nurseries, or parenting time centers. The following requirements apply:

(1) The facilities must be owned by the state or a political subdivision, but may be leased
under section 16A.695 to organizations that operate the programs. The commissioner must
prescribe the terms and conditions of the leases.

(2) A grant for an individual facility must not exceed $500,000 for each program that
is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three
programs or more. Programs include Head Start, School Readiness, Early Childhood Family
Education, licensed child care, and other early childhood intervention programs.

(3) State appropriations must be matched on a deleted text begin 50 deleted text end new text begin 25 new text end percent basis with nonstate funds.
The matching requirement must apply program wide and not to individual grants.

Sec. 8.

Minnesota Statutes 2024, section 446A.07, subdivision 8, is amended to read:

Subd. 8.

Other uses of revolving fund.

(a) The clean water revolving fund may be used
as provided in title VI of the Federal Water Pollution Control Act, including the following
uses:

(1) to buy or refinance the debt obligation of governmental units for treatment works
where debt was incurred and construction begun after March 7, 1985, at or below market
rates;

(2) to guarantee or purchase insurance for local obligations to improve credit market
access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest
on revenue or general obligation bonds issued by the authority if the bond proceeds are
deposited in the fund;

(4) to provide loan guarantees, loans, or set-aside for similar revolving funds established
by a governmental unit other than state agencies, or state agencies under sections 17.117,
103F.725, subdivision 1a, and 116J.617;

(5) to earn interest on fund accounts; new text begin and
new text end

(6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency
of administering the fund and conducting activities required under the Federal Water Pollution
Control Act, including water quality management planning under section 205(j) of the act
and water quality standards continuing planning under section 303(e) of the act deleted text begin ; deleted text end new text begin .
new text end

new text begin (b) The clean water revolving fund may be used to provide additional subsidization as
permitted under the Federal Water Pollution Control Act and other federal laws to provide
principal forgiveness or grants:
new text end

deleted text begin (7) to provide principal forgiveness or grants to the extent permitted under the Federal
Water Pollution Control Act and other federal law, deleted text end new text begin (1) new text end based on deleted text begin the deleted text end new text begin affordability new text end criteria
and requirements established for the deleted text begin wastewater deleted text end new text begin water new text end infrastructure funding program under
section 446A.072; deleted text begin and
deleted text end

deleted text begin (8) to provide loans, principal forgiveness, or grants to the extent permitted under the
Federal Water Pollution Control Act and other federal law deleted text end new text begin (2) for 25 percent of project costs
up to a maximum of $1,000,000 for projects new text end to address green infrastructure, water or energy
efficiency improvements, or other environmentally innovative activities deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) for 50 percent of project costs up to a maximum of $3,000,000 for projects that
address emerging contaminants as defined by the United States Environmental Protection
Agency.
new text end

deleted text begin (b) Amounts spent under paragraph (a), clause (6), may not exceed the amount allowed
under the Federal Water Pollution Control Act.
deleted text end

deleted text begin (c) Principal forgiveness or grants provided under paragraph (a), clause (8), may not
exceed 25 percent of the eligible project costs as determined by the Pollution Control Agency
for project components directly related to green infrastructure, water or energy efficiency
improvements, or other environmentally innovative activities, up to a maximum of
$1,000,000.
deleted text end

Sec. 9.

Minnesota Statutes 2024, section 446A.072, subdivision 5a, is amended to read:

Subd. 5a.

Type and amount of assistance.

(a) For a governmental unit receiving grant
funding from the USDA/RECD, the authority may provide assistance in the form of a grant
of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental
unit may not receive a grant under this paragraph for more than deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end
per project or $20,000 per existing connection, whichever is less, unless specifically approved
by law.

(b) For a governmental unit receiving a loan from the clean water revolving fund under
section 446A.07, the authority may provide assistance under this section in the form of a
grant if the average annual residential wastewater system cost after completion of the project
would otherwise exceed 1.4 percent of the median household income of the project service
area. In determining whether the average annual residential wastewater system cost would
exceed 1.4 percent, the authority must consider the total costs associated with building,
operating, and maintaining the wastewater system, including existing wastewater debt
service, debt service on the eligible project cost, and operation and maintenance costs. Debt
service costs for the proposed project are calculated based on the maximum loan term
permitted for the clean water revolving fund loan under section 446A.07, subdivision 7.
The amount of the grant is equal to 80 percent of the amount needed to reduce the average
annual residential wastewater system cost to 1.4 percent of median household income in
the project service area, to a maximum of deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end per project or $20,000
per existing connection, whichever is less, unless specifically approved by law. The eligible
project cost is determined by multiplying the total project costs minus any other grants by
the essential project component percentage calculated under subdivision 3, paragraph (c),
clause (1). In no case may the amount of the grant exceed 80 percent of the eligible project
cost.

(c) For a governmental unit receiving a loan from the drinking water revolving fund
under section 446A.081, the authority may provide assistance under this section in the form
of a grant if the average annual residential drinking water system cost after completion of
the project would otherwise exceed 1.2 percent of the median household income of the
project service area. In determining whether the average annual residential drinking water
system cost would exceed 1.2 percent, the authority must consider the total costs associated
with building, operating, and maintaining the drinking water system, including existing
drinking water debt service, debt service on the eligible project cost, and operation and
maintenance costs. Debt service costs for the proposed project are calculated based on the
maximum loan term permitted for the drinking water revolving fund loan under section
446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of
the amount needed to reduce the average annual residential drinking water system cost to
1.2 percent of median household income in the project service area, to a maximum of
deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end per project or $20,000 per existing connection, whichever is less,
unless specifically approved by law. The eligible project cost is determined by multiplying
the total project costs minus any other grants by the essential project component percentage
calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the
grant exceed 80 percent of the eligible project cost.

(d) Notwithstanding the limits in paragraphs (a), (b), and (c), for a governmental unit
receiving supplemental assistance under this section after January 1, 2002, if the authority
determines that the governmental unit's construction and installation costs are significantly
increased due to geological conditions of crystalline bedrock or karst areas and discharge
limits that are more stringent than secondary treatment, the maximum award under this
section shall not be more than $25,000 per existing connection.

Sec. 10.

Minnesota Statutes 2024, section 446A.073, subdivision 1, is amended to read:

Subdivision 1.

Program established.

When money is appropriated for grants under this
program, the authority shall award grants up to a maximum of deleted text begin $7,000,000 deleted text end new text begin $12,000,000 new text end to
governmental units to cover 80 percent of the cost of water infrastructure projects made
necessary by:

(1) a wasteload reduction prescribed under a total maximum daily load plan required by
section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);

(2) a phosphorus concentration or mass limit which requires discharging one milligram
per liter or less at permitted design flow which is incorporated into a permit issued by the
Pollution Control Agency;

(3) any other water quality-based effluent limit established under section 115.03,
subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution
Control Agency that exceeds secondary treatment limits; or

(4) a total nitrogen concentration or mass limit that requires discharging ten milligrams
per liter or less at permitted design flow.

Sec. 11.

Minnesota Statutes 2024, section 446A.081, subdivision 9, is amended to read:

Subd. 9.

Other uses of fund.

(a) The drinking water revolving loan fund may be used
as provided in the act, including the following uses:

(1) to buy or refinance the debt obligations, at or below market rates, of public water
systems for drinking water systems, where the debt was incurred after the date of enactment
of the act, for the purposes of construction of the necessary improvements to comply with
the national primary drinking water regulations under the federal Safe Drinking Water Act;

(2) to purchase or guarantee insurance for local obligations to improve credit market
access or reduce interest rates;

(3) to provide a source of revenue or security for the payment of principal and interest
on revenue or general obligation bonds issued by the authority if the bond proceeds are
deposited in the fund;

(4) to provide loans or loan guarantees for similar revolving funds established by a
governmental unit or state agency;

(5) to earn interest on fund accounts;

(6) to pay the reasonable costs incurred by the authority, the Department of Employment
and Economic Development, and the Department of Health for conducting activities as
authorized and required under the act up to the limits authorized under the act; new text begin and
new text end

(7) to develop and administer programs for water system supervision, source water
protection, and related programs required under the act deleted text begin ; deleted text end new text begin .
new text end

new text begin (b) The drinking water revolving fund may be used to provide additional subsidization
as permitted under the federal Safe Drinking Water Act and other federal law to
disadvantaged communities to provide principal forgiveness or grants:
new text end

deleted text begin (8) to provide principal forgiveness or grants to the extent permitted under the federal
Safe Drinking Water Act and other federal law, deleted text end new text begin (1) new text end based on deleted text begin the deleted text end new text begin affordability new text end criteria and
requirements established for drinking water projects under the water infrastructure funding
program under section 446A.072;

deleted text begin (9) to provide loans, principal forgiveness or grants to the extent permitted under the
federal Safe Drinking Water Act and other federal law to address green infrastructure, water
or energy efficiency improvements, or other environmentally innovative activities;
deleted text end

deleted text begin (10) to provide principal forgiveness, or grants deleted text end new text begin (2) new text end for 80 percent of project costs up to
a maximum of $100,000 for projects needed to comply with national primary drinking water
standards for an existing nonmunicipal community public water system;

deleted text begin (11) to provide principal forgiveness or grants deleted text end new text begin (3) new text end to the extent permitted under the
federal Safe Drinking Water Act and other federal laws for projects to replace the privately
owned portion of drinking water lead service lines; deleted text begin and
deleted text end

deleted text begin (12) to provide principal forgiveness or grants deleted text end new text begin (4) new text end to the extent permitted under the
federal Safe Drinking Water Act and other federal laws for 50 percent of project costs up
to a maximum of $3,000,000 for projects to address emerging contaminants in drinking
water as defined by the United States Environmental Protection Agency deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) for 50 percent of project costs up to a maximum of $3,000,000 for projects needed
to comply with a maximum contaminant level as defined by the federal Safe Drinking Water
Act.
new text end

deleted text begin (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not
exceed 25 percent of the eligible project costs as determined by the Department of Health
for project components directly related to green infrastructure, water or energy efficiency
improvements, or other environmentally innovative activities, up to a maximum of
$1,000,000.
deleted text end

Sec. 12.

new text begin [446A.082] EMERGING CONTAMINANTS GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin When money is appropriated under this program,
the authority shall award grants to a governmental unit for up to 80 percent of the cost of
drinking water infrastructure projects to address a confirmed exceedance of a health advisory
level for a drinking water emerging contaminant as defined by the Environmental Protection
Agency.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An eligible project for this program must:
new text end

new text begin (1) be listed on the Drinking Water Revolving Fund Project Priority List per Minnesota
Rules, part 4720.9000;
new text end

new text begin (2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
new text end

new text begin (3) be certified by the Department of Health per Minnesota Rules, part 4720.9060.
new text end

new text begin Subd. 3. new text end

new text begin Application and reservation of funds. new text end

new text begin Grant applications to the authority may
be made at any time on forms prescribed by the authority, including a project schedule and
cost estimate for the work necessary to comply with the purpose described in subdivision
1. The Department of Health shall review and certify to the authority those projects that
have plans and specifications approved under Minnesota Rules, part 4720.9060. When a
project is certified by the Department of Health, the authority shall reserve grant funds for
the project in the order listed on the Department of Health's project priority list and in an
amount based on the cost estimate in the Department of Health certification or the as-bid
costs, whichever is less.
new text end

new text begin Subd. 4. new text end

new text begin Grant amount. new text end

new text begin The grant amount for an eligible project under this program
shall be for an amount up to 80 percent of the eligible as-bid project cost up to $12,000,000,
minus the amount of federal emerging contaminant funds the project receives under section
446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant
funds.
new text end

new text begin Subd. 5. new text end

new text begin Grant approval. new text end

new text begin The authority shall award a grant for an eligible project only
after:
new text end

new text begin (1) the applicant has submitted the as-bid project cost;
new text end

new text begin (2) the Department of Health has certified the grant eligible portion of the project; and
new text end

new text begin (3) the authority has determined that the additional financing necessary to complete the
project has been committed from other sources.
new text end

new text begin Subd. 6. new text end

new text begin Grant disbursement. new text end

new text begin Grant funds shall be disbursed by the authority as eligible
project costs are incurred by the governmental unit and in accordance with a project financing
agreement and applicable state laws and rules governing the disbursements.
new text end

new text begin Subd. 7. new text end

new text begin Recovering expenses. new text end

new text begin Money granted to a grantee under this program may be
recovered in a civil action brought by the attorney general against any person who may be
liable under section 115B.04 or any other law. To be eligible for recovery, the expenses
must be reasonable and necessary expenses, including all response costs, and administrative
and legal expenses. The authority, Department of Health, and Pollution Control Agency's
certification of expenses shall be prima facie evidence that the expenses are reasonable and
necessary. Any money recovered in a civil action for a project financed with bonds under
this section shall be transferred to the commissioner of management and budget for deposit
in the state bond fund and applied toward principal and interest on outstanding bonds.
new text end

Sec. 13.

Laws 2013, chapter 143, article 12, section 21, is amended to read:

Sec. 21.

LEGISLATIVE OFFICE FACILITIES.

(a) The commissioner of administration may enter into a long-term lease-purchase
agreement for a term of up to 25 years, to predesign, design, construct, and equip offices,
hearing rooms, and parking facilities for legislative and other functions. The facility must
be located on the block bounded by Sherburne Avenue on the north, Park Street on the west,
University Avenue on the south, and North Capitol Boulevard on the east. The legislative
office facility must provide office accommodations for all senators and senate staff who do
not have offices in the Capitol building and on-site parking facilities for all members and
staff and disabled visitors to senate offices. A parking structure may also be built on the
state-owned land located in the block bounded by Sherburne Avenue on the north, Park
Street on the east, University Avenue on the south, and Rice Street on the west. The
commissioner of management and budget may issue lease revenue bonds or certificates of
participation associated with the lease-purchase agreement. The lease-purchase agreements
must not be terminated, except for nonappropriation of money. The lease-purchase
agreements must provide the state with a unilateral right to purchase the leased premises at
specified times for specified amounts. The lease-purchase agreements are exempt from
Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.

(b) The facilities under the lease-purchase agreement are exempt from the design
competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding anything
to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner
of administration elects to use a design-build delivery method to design and construct one
or more facilities under this appropriation, the Capitol Area Architectural and Planning
Board, in cooperation with the commissioner, shall create a selection committee to act as
the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design and
construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if the
commissioner elects to contract with a primary designer to design one or more facilities
under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation
with the commissioner, shall create a selection committee to conduct the selection process
in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A
selection committee created under this section must contain no more than seven members,
including at least three representatives designated by the senate Committee on Rules and
Administration and three representatives designated by the speaker of the house.

(c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections 16C.32
and 16C.33, if the commissioner of administration elects to use a design-build delivery
method to design, construct, and equip one or more facilities and associated infrastructure
to provide audio and video broadcast services for the Capitol building, State Office Building,
and a new legislative office building, if applicable, the commissioner shall create a selection
committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, to
design, build, and equip the facilities. The selected design-builder may self-perform trade
work or name an audio and video subcontractor as a member of the design-builder's team.
If an audio and video subcontractor is named as a member of the design-builder's team, the
design-builder is not required to competitively bid the trade work. Notwithstanding Minnesota
Statutes, section 16C.33, subdivision 5, paragraph (b), after obtaining and evaluating
qualifications from each design-builder, in accordance with the weighted criteria and
subcriteria and procedures provided in the request for qualifications, the selection committee
shall select a short list of up to five proposals. If the commissioner does not receive any
proposals, the commissioner may either:

(1) solicit new proposals;

(2) revise the request for qualifications and thereafter solicit new proposals using the
revised request for qualifications; or

(3) request selection of a primary designer under Minnesota Statutes, section 16B.33,
16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota Statutes,
sections 16C.25 to 16C.29.

(d) The commissioner of administration may enter into a ground lease for state-owned
property in the capitol area in conjunction with the execution of a lease-purchase agreement
entered into under this section for any improvements constructed on that site. Notwithstanding
the requirements of Minnesota Statutes, section 16A.695, subdivision 2, paragraph (b), the
ground lease must be for a term equal to the term of the lease-purchase agreement, and must
include an option to purchase the land at its then fair market value, if the improvements are
not purchased by the state at the end of the term of the lease-purchase agreement, or at any
earlier time that the lease-purchase agreement is terminated.

(e) The commissioner of administration must not prepare final plans and specifications
for any construction authorized under this section until the program plan and cost estimates
for all elements necessary to complete the project have been approved by the senate
Committee on Rules and Administration.

(f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the
commissioner of administration for predesign and design of facilities authorized under
paragraph (a). This appropriation is available for expenditure the day following final
enactment and until June 30, 2015.

(g) The commissioner of administration may reserve a portion of money from
appropriations for office space costs of the legislature to fund future repairs for facilities
constructed under the authority provided in this section. Money reserved under this paragraph
must be credited to a segregated account for each building in the special revenue fund and
is appropriated to the commissioner to make the repairs. When the state acquires title to a
building with an account established under this paragraph, the account for that building
must be abolished and the balance remaining in the account must be transferred to the
appropriate asset preservation and replacement account.

new text begin (h) Certificates of participation or lease revenue bonds issued by the commissioner of
management and budget may be issued by public or private sale and in one or more series
on the terms and conditions the commissioner of management and budget determines to be
in the best interests of the state, shall be dated and bear interest at a fixed or variable rate,
may be includable in or excludable from the gross income of the owners for federal income
tax purposes, and may be sold at any price or percentage of par value. Any bid received
may be rejected.
new text end

new text begin (i) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates
of participation, and at any time thereafter, so long as the bonds or certificates are outstanding,
the commissioner of management and budget may enter into agreements and ancillary
arrangements relating to the bonds or certificates, including but not limited to trust indentures,
grant agreements, lease or use agreements, operating agreements, management agreements,
liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance
policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest
exchange agreements. Any payments made or received according to the agreement or
ancillary arrangement shall be made from or deposited as provided in the agreement or
ancillary arrangement. The determination of the commissioner of management and budget
included in an interest exchange agreement that the agreement relates to a certificate or
bond shall be conclusive.
new text end

new text begin (j) The commissioner of management and budget may enter into written agreements or
contracts relating to the continuing disclosure of information necessary to comply with or
facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds
or certificates of participation in accordance with federal securities laws, rules, and
regulations, including Securities and Exchange Commission rules and regulations in Code
of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of
covenants with purchasers and holders of certificates or bonds set forth in the order or
resolution authorizing the issuance of the certificates or bonds or in a separate document
authorized by the order or resolution.
new text end

new text begin (k) The commissioner of administration from time to time may enter into a new
lease-purchase agreement and the commissioner of management and budget may issue and
sell lease revenue bonds or certificates of participation for the purpose of refunding any
lease-purchase agreement authorized under this section and related lease revenue bonds or
certificates of participation then outstanding, including the payment of any redemption
premiums, any interest accrued or that is to accrue to the redemption date, and costs related
to the issuance and sale of such refunding bonds or certificates. The proceeds of any refunding
bonds or certificates may, in the discretion of the commissioner of management and budget,
be applied to the purchase or payment at maturity of the bonds or certificates to be refunded,
to the redemption of the outstanding lease-purchase agreements and bonds or certificates
on any redemption date, or to pay interest on the refunding lease-purchase agreements and
bonds or certificates and may, pending such application, be placed in escrow to be applied
to such purchase, payment, retirement, or redemption. Any escrowed proceeds, pending
such use, may be invested and reinvested in obligations that are authorized investments
under section 11A.24. The income earned or realized on any authorized investment may
also be applied to the payment of the lease-purchase agreements and bonds or certificates
to be refunded, to interest or premiums on the refunded bonds or certificates, or to pay
interest on the refunding lease-purchase agreements and bonds or certificates. After the
terms of the escrow have been fully satisfied, any balance of proceeds and any investment
income may be returned to the general fund for use in a lawful manner. All refunding
lease-purchase agreements and bonds or certificates issued under the provisions of this
subdivision must be prepared, executed, delivered, and secured by appropriations in the
same manner as the lease-purchase agreements and bonds or certificates to be refunded.
new text end

new text begin (l) The waiver of immunity by the state provided for by section 3.751, subdivision 1,
shall be applicable to lease revenue bonds or certificates of participation issued under this
section and any ancillary contracts to which the commissioner is a party.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 16A.662, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 116J.417, subdivision 9, new text end new text begin is repealed effective
retroactively from June 2, 2023.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise specified, this article is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-03139

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.