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 16A.501; 116.182, subdivision 
1.7 	5; 446A.07, subdivision 8; 446A.072, subdivision 5a; 446A.073, subdivision 1, 
1.8 	as amended; 446A.081, subdivision 9; Laws 2013, chapter 143, article 12, section 
1.9 	21; Laws 2020, Fifth Special Session chapter 3, article 1, sections 16, subdivision 
1.10 	34; 17, subdivision 13, as amended; Laws 2023, chapter 71, article 1, sections 9, 
1.11 	subdivision 12; 11, subdivision 7; 14, subdivisions 24, 49, 67, as amended, 81, as 
1.12 	amended, 93, as amended, 97; 15, subdivisions 7, 16; Laws 2023, chapter 72, 
1.13 	article 1, sections 7, subdivision 18; 16, subdivision 15; article 2, section 2; 
1.14 	proposing coding for new law in Minnesota Statutes, chapters 115B; 446A; 462A; 
1.15 	repealing Minnesota Statutes 2024, sections 16A.662; 116J.417, subdivision 9.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	APPROPRIATIONS

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

2.12						APPROPRIATIONS

2.13	Sec. 2. UNIVERSITY OF MINNESOTA
 			$
	60,000,000
	
2.14 	To the Board of Regents of the University of 
2.15 	Minnesota to be spent in accordance with 
2.16 	Minnesota Statutes, section 135A.046.

2.17
2.18	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

2.19	Subdivision 1.Total Appropriation
 			$
	84,000,000
	
2.20 	To the Board of Trustees of the Minnesota 
2.21 	State Colleges and Universities for the 
2.22 	purposes specified in this section.

2.23
2.24	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				60,000,000
	
2.25 	To be spent in accordance with Minnesota 
2.26 	Statutes, section 135A.046.

2.27
2.28	Subd. 3.Alexandria Technical and Community 
College
 				24,000,000
	
2.29 	To construct, furnish, and equip a new 
2.30 	Transportation Center building at Alexandria 
2.31 	Technical and Community College. This 
2.32 	appropriation may also be used for the 
2.33 	demolition of buildings rendered obsolete by 
3.1 	the new Transportation Center and for the 
3.2 	renovation, furnishing, and equipping of 
3.3 	student services spaces.

3.4	Subd. 4.Debt Service
 					
3.5 	(a) Except as provided in paragraph (b), the 
3.6 	Board of Trustees shall pay the debt service 
3.7 	on one-third of the principal amount of state 
3.8 	bonds sold to finance projects authorized by 
3.9 	this section. After each sale of general 
3.10 	obligation bonds, the commissioner of 
3.11 	management and budget shall notify the board 
3.12 	of the amounts assessed for each year for the 
3.13 	life of the bonds.
3.14 	(b) The board need not pay debt service on 
3.15 	bonds sold to finance HEAPR. Where a 
3.16 	nonstate match is required, the debt service is 
3.17 	due on a principal amount equal to one-third 
3.18 	of the total project cost, less the match 
3.19 	committed before the bonds are sold.
3.20 	(c) The commissioner of management and 
3.21 	budget shall reduce the board's assessment 
3.22 	each year by one-third of the net income from 
3.23 	investment of general obligation bond 
3.24 	proceeds in proportion to the amount of 
3.25 	principal and interest otherwise required to be 
3.26 	paid by the board. The board shall pay its 
3.27 	resulting net assessment to the commissioner 
3.28 	of management and budget by December 1 
3.29 	each year. If the board fails to make a payment 
3.30 	when due, the commissioner of management 
3.31 	and budget shall reduce allotments for 
3.32 	appropriations from the general fund otherwise 
3.33 	available to the board and apply the amount 
3.34 	of the reduction to cover the missed debt 
3.35 	service payment. The commissioner of 
4.1 	management and budget shall credit the 
4.2 	payments received from the board to the bond 
4.3 	debt service account in the state bond fund 
4.4 	each December 1 before money is transferred 
4.5 	from the general fund under Minnesota 
4.6 	Statutes, section 16A.641, subdivision 10.

4.7	Subd. 5.Unspent Appropriations
 					
4.8 	(a) Upon substantial completion of a project 
4.9 	authorized in this section and after written 
4.10 	notice to the commissioner of management 
4.11 	and budget, the board must use any money 
4.12 	remaining in the appropriation for that project 
4.13 	for HEAPR under Minnesota Statutes, section 
4.14 	135A.046. The Board of Trustees must report 
4.15 	by February 1 of each even-numbered year to 
4.16 	the chairs of the house of representatives and 
4.17 	senate committees with jurisdiction over 
4.18 	capital investment and higher education 
4.19 	finance and to the chairs of the house of 
4.20 	representatives Ways and Means Committee 
4.21 	and the senate Finance Committee, on how 
4.22 	the remaining money has been allocated or 
4.23 	spent.
4.24 	(b) The unspent portion of an appropriation 
4.25 	for a project in this section that is complete is 
4.26 	available for HEAPR under this subdivision, 
4.27 	at the same campus as the project for which 
4.28 	the original appropriation was made and the 
4.29 	debt service requirement under this section is 
4.30 	reduced accordingly. Minnesota Statutes, 
4.31 	section 16A.642, applies from the date of the 
4.32 	original appropriation to the unspent amount 
4.33 	transferred.

4.34	Sec. 4. EDUCATION
 			$
	750,000
	
5.1 	To the commissioner of education for Mary 
5.2 	C. Murphy library construction grants under 
5.3 	Minnesota Statutes, section 134.45.

5.4	Sec. 5. MINNESOTA STATE ACADEMIES
 			$
	1,000,000
	
5.5 	To the commissioner of administration for 
5.6 	capital asset preservation improvements and 
5.7 	betterments on both campuses of the 
5.8 	Minnesota State Academies, to be spent in 
5.9 	accordance with Minnesota Statutes, section 
5.10 	16B.307.

5.11
5.12	Sec. 6. PERPICH CENTER FOR ARTS 
EDUCATION
 			$
	1,260,000
	
5.13 	To the commissioner of administration for 
5.14 	capital asset preservation improvements and 
5.15 	betterments at the Perpich Center for Arts 
5.16 	Education, to be spent in accordance with 
5.17 	Minnesota Statutes, section 16B.307.

5.18	Sec. 7. NATURAL RESOURCES

5.19	Subdivision 1.Total Appropriation
 			$
	44,000,000
	
5.20 	(a) To the commissioner of natural resources 
5.21 	for the purposes specified in this section.
5.22 	(b) The appropriations in this section are 
5.23 	subject to the requirements of the natural 
5.24 	resources capital improvement program under 
5.25 	Minnesota Statutes, section 86A.12, unless 
5.26 	this section or the statutes referred to in this 
5.27 	section provide more specific standards, 
5.28 	criteria, or priorities for projects than 
5.29 	Minnesota Statutes, section 86A.12.

5.30	Subd. 2.Natural Resources Asset Preservation
 				33,000,000
	
5.31 	For the preservation and replacement of 
5.32 	state-owned facilities and recreational assets 
5.33 	operated by the commissioner of natural 
6.1 	resources to be spent in accordance with 
6.2 	Minnesota Statutes, section 84.946.

6.3	Subd. 3.Accessibility
 				1,000,000
	
6.4 	For the design and construction of accessibility 
6.5 	improvements at state parks, recreation areas, 
6.6 	and wildlife management areas.

6.7	Subd. 4.Flood Hazard Mitigation
 				9,000,000
	
6.8 	(a) For the state share of flood hazard 
6.9 	mitigation grants for publicly owned capital 
6.10 	improvements to prevent or alleviate flood 
6.11 	damage under Minnesota Statutes, section 
6.12 	103F.161.
6.13 	(b) Project priorities shall be determined by 
6.14 	the commissioner as appropriate, based on 
6.15 	need and consideration of available leveraging 
6.16 	of federal, state, and local funds.
6.17 	(c) To the extent practicable and consistent 
6.18 	with the project, recipients of appropriations 
6.19 	for flood control projects in this subdivision 
6.20 	shall create wetlands that are eligible for 
6.21 	wetland replacement credit to replace wetlands 
6.22 	drained or filled as the result of repair, 
6.23 	reconstruction, replacement, or rehabilitation 
6.24 	of an existing public road under Minnesota 
6.25 	Statutes, section 103G.222, subdivision 1, 
6.26 	paragraphs (l) and (m).
6.27 	(d) To the extent that the cost of a municipal 
6.28 	project exceeds two percent of the median 
6.29 	household income in the municipality 
6.30 	multiplied by the number of households in the 
6.31 	municipality, this appropriation is also for the 
6.32 	local share of the project.

7.1	Subd. 5.Reforestation
 				1,000,000
	
7.2 	For reforestation and stand improvement on 
7.3 	state forest lands to meet the reforestation 
7.4 	requirements of Minnesota Statutes, section 
7.5 	89.002, subdivision 2, including purchasing 
7.6 	native seeds and native seedlings, planting, 
7.7 	seeding, site preparation, and protection on 
7.8 	state lands administered by the commissioner.

7.9	Subd. 6.Unspent Appropriations
 					
7.10 	The unspent portion of an appropriation for a 
7.11 	project in this section that is complete, upon 
7.12 	written notice to the commissioner of 
7.13 	management and budget, is available for asset 
7.14 	preservation under Minnesota Statutes, section 
7.15 	84.946. Minnesota Statutes, section 16A.642, 
7.16 	applies from the date of the original 
7.17 	appropriation to the unspent amount 
7.18 	transferred.

7.19	Sec. 8. POLLUTION CONTROL AGENCY

7.20	Subdivision 1.Total Appropriation
 			$
	12,000,000
	
7.21 	To the Pollution Control Agency for the 
7.22 	purposes specified in this section.

7.23
7.24	Subd. 2.Statewide Drinking Water 
Contamination Mitigation Program
 				6,000,000
	
7.25 	For projects or grants under Minnesota 
7.26 	Statutes, section 115B.245.

7.27	Subd. 3.Capital Assistance Program
 				6,000,000
	
7.28 	For grants under the capital assistance program 
7.29 	under Minnesota Statutes, section 115A.54.

7.30
7.31	Sec. 9. BOARD OF WATER AND SOIL 
RESOURCES
 			$
	5,000,000
	
7.32 	To the Board of Water and Soil Resources to 
7.33 	acquire land or permanent easements and to 
8.1 	restore, create, enhance, and preserve wetlands 
8.2 	to replace those wetlands drained or filled as 
8.3 	a result of the repair, reconstruction, 
8.4 	replacement, or rehabilitation of existing 
8.5 	public roads as required by Minnesota 
8.6 	Statutes, section 103G.222, subdivision 1, 
8.7 	paragraphs (l) and (m). Notwithstanding 
8.8 	Minnesota Statutes, section 103G.222, 
8.9 	subdivision 3, the board may implement the 
8.10 	wetland replacement program statewide. The 
8.11 	purchase price paid for acquisition of land or 
8.12 	perpetual easement must be a fair market value 
8.13 	as determined by the board. The board may 
8.14 	enter into agreements with the federal 
8.15 	government, other state agencies, political 
8.16 	subdivisions, nonprofit organizations, fee title 
8.17 	owners, or other qualified private entities to 
8.18 	acquire wetland replacement credits in 
8.19 	accordance with Minnesota Rules, chapter 
8.20 	8420. Up to five percent of this appropriation 
8.21 	may be used for restoration and enhancement.

8.22
8.23	Sec. 10. MINNESOTA ZOOLOGICAL 
GARDEN

8.24	Subdivision 1.Total Appropriation
 			$
	13,740,000
	
8.25 	To the Minnesota Zoological Board for the 
8.26 	purposes specified in this section.

8.27	Subd. 2.Asset Preservation
 				2,740,000
	
8.28 	For capital asset preservation improvements 
8.29 	and betterments to infrastructure and exhibits 
8.30 	at the Minnesota Zoo, to be spent in 
8.31 	accordance with Minnesota Statutes, section 
8.32 	16B.307. Notwithstanding the specified uses 
8.33 	of money under Minnesota Statutes, section 
8.34 	16B.307, this appropriation may be used to 
8.35 	replace buildings that are in poor condition, 
9.1 	outdated, and no longer support the work of 
9.2 	the Minnesota Zoological Garden; to construct 
9.3 	and renovate trails and roads on the Minnesota 
9.4 	Zoological Garden site; and to renovate animal 
9.5 	exhibits to meet modern animal welfare 
9.6 	standards, address animal and staff safety 
9.7 	issues, and improve the viewing experience 
9.8 	for guests.

9.9	Subd. 3.Animal Hospital
 				11,000,000
	
9.10 	To design, construct, furnish, and equip a new 
9.11 	animal hospital building at the Minnesota 
9.12 	Zoological Garden.

9.13	Sec. 11. ADMINISTRATION

9.14	Subdivision 1.Total Appropriation
 			$
	11,500,000
	
9.15 	To the commissioner of administration for the 
9.16 	purposes specified in this section.

9.17
9.18	Subd. 2.Capital Asset Preservation and 
Replacement Account
 				1,000,000
	
9.19 	To be spent in accordance with Minnesota 
9.20 	Statutes, section 16A.632.

9.21
9.22	Subd. 3.Capitol Complex - Physical Security 
Upgrades Phase III
 				2,000,000
	
9.23 	For the continuation of the design, 
9.24 	construction, and equipping required to 
9.25 	upgrade the physical security elements and 
9.26 	systems for the Capitol Mall and the buildings 
9.27 	listed in this subdivision, their attached tunnel 
9.28 	systems, their surrounding grounds, and 
9.29 	parking facilities as identified in the 2017 
9.30 	Minnesota State Capitol Complex Physical 
9.31 	Security Predesign completed by Miller 
9.32 	Dunwiddie and an updated assessment 
9.33 	completed in 2022. Upgrades include but are 
9.34 	not limited to the installation of bollards, blast 
10.1 	protection, infrastructure security screen walls, 
10.2 	door access controls, emergency call stations, 
10.3 	surveillance systems, security kiosks, lighting 
10.4 	system upgrades, locking devices, and traffic 
10.5 	and crowd control devices. This appropriation 
10.6 	includes money for work associated with the 
10.7 	following buildings: Administration, 
10.8 	Ag/Health Lab, Andersen, BCA Maryland, 
10.9 	Capitol, Centennial, Freeman, Governor's 
10.10 	Residence, Judicial Center, Minnesota History 
10.11 	Center, Capitol Complex Power Plant and 
10.12 	Shops, Stassen, Senate, and Veterans Service.

10.13	Subd. 4.Capitol Tunnel
 				8,500,000
	
10.14 	To design, construct, and equip improvements 
10.15 	to bring a portion of the tunnel under Rev. Dr. 
10.16 	Martin Luther King Jr. Boulevard and to the 
10.17 	east to the State Capitol into compliance with 
10.18 	the Americans with Disabilities Act.

10.19	Sec. 12. AMATEUR SPORTS COMMISSION

10.20	Subdivision 1.Total Appropriation
 			$
	6,000,000
	
10.21 	To the Minnesota Amateur Sports 
10.22 	Commission for the purposes specified in this 
10.23 	section.

10.24	Subd. 2.Asset Preservation
 				5,000,000
	
10.25 	For asset preservation improvements and 
10.26 	betterments of a capital nature at the National 
10.27 	Sports Center in Blaine, to be spent in 
10.28 	accordance with Minnesota Statutes, section 
10.29 	16B.307.

10.30	Subd. 3.Mighty Ducks
 				1,000,000
	
10.31 	For grants to local units of government under 
10.32 	Minnesota Statutes, section 240A.09. This 
11.1 	appropriation must not be used to acquire ice 
11.2 	resurfacing or edging equipment.

11.3	Sec. 13. PUBLIC SAFETY
 			$
	67,000,000
	
11.4 	To the commissioner of administration to 
11.5 	design, construct, furnish, and equip a new 
11.6 	Bureau of Criminal Apprehension regional 
11.7 	office and laboratory facility in Mankato. This 
11.8 	appropriation may also be used to design and 
11.9 	complete hazardous materials abatement. This 
11.10 	appropriation may also be used to fund the 
11.11 	state's portion of the cost to extend Bassett 
11.12 	Drive to serve the project site.

11.13	Sec. 14. TRANSPORTATION

11.14	Subdivision 1.Total Appropriation
 			$
	80,000,000
	
11.15 	To the commissioner of transportation for the 
11.16 	purposes specified in this section.

11.17	Subd. 2.Local Road Improvement Program
 				47,000,000
	
11.18 	(a) From the bond proceeds account in the 
11.19 	state transportation fund as provided in 
11.20 	Minnesota Statutes, section 174.50, for eligible 
11.21 	improvements on trunk highway corridor 
11.22 	projects under Minnesota Statutes, section 
11.23 	174.52, subdivision 2; for construction and 
11.24 	reconstruction of local roads with statewide 
11.25 	or regional significance under Minnesota 
11.26 	Statutes, section 174.52, subdivision 4; or for 
11.27 	grants to counties to assist in paying the costs 
11.28 	of rural road safety capital improvement 
11.29 	projects on county state-aid highways under 
11.30 	Minnesota Statutes, section 174.52, 
11.31 	subdivision 4a.
11.32 	(b) $5,000,000 of this appropriation is for 
11.33 	grants to townships for capital improvements 
11.34 	to township roads.

12.1	Subd. 3.Local Bridge Replacement Program
 				31,000,000
	
12.2 	(a) From the bond proceeds account in the 
12.3 	state transportation fund to match federal 
12.4 	money and to replace or rehabilitate local 
12.5 	deficient bridges as provided in Minnesota 
12.6 	Statutes, section 174.50.
12.7 	(b) $11,000,000 of this appropriation is for 
12.8 	grants for major local bridges under Minnesota 
12.9 	Statutes, section 174.50, subdivision 6d. The 
12.10 	appropriation under this paragraph may be 
12.11 	used for other costs, including design, 
12.12 	construction engineering, approach 
12.13 	reconstruction work identified within the 
12.14 	project limits, and right-of-way acquisition.

12.15	Subd. 4.Highway Rail Grade Crossings
 				1,000,000
	
12.16 	To design, construct, and equip the 
12.17 	replacement of active highway rail grade 
12.18 	warning devices that have reached the end of 
12.19 	their useful life or new highway rail grade 
12.20 	warning devices.

12.21
12.22	Subd. 5.Minnesota Rail Service Improvement 
Program
 				1,000,000
	
12.23 	For rail service improvement grants under 
12.24 	Minnesota Statutes, section 222.50.

12.25	Sec. 15. METROPOLITAN COUNCIL

12.26	Subdivision 1.Total Appropriation
 			$
	16,000,000
	
12.27 	To the Metropolitan Council for the purposes 
12.28 	specified in this section.

12.29
12.30	Subd. 2.Metropolitan Cities Inflow and 
Infiltration Grants
 				15,000,000
	
12.31 	For inflow and infiltration grants under 
12.32 	Minnesota Statutes, section 473.5491.

12.33	Subd. 3.Community Tree-Planting Grants
 				1,000,000
	
13.1 	For community tree-planting grants under 
13.2 	Minnesota Statutes, section 473.355.

13.3	Sec. 16. DIRECT CARE AND TREATMENT

13.4	Subdivision 1.Total Appropriation
 			$
	62,500,000
	
13.5 	To the commissioner of administration for the 
13.6 	purposes specified in this section.

13.7	Subd. 2.Asset Preservation
 				7,500,000
	
13.8 	For asset preservation improvements and 
13.9 	betterments of a capital nature, to be spent in 
13.10 	accordance with Minnesota Statutes, section 
13.11 	16B.307, at facilities operated by Direct Care 
13.12 	and Treatment following the department's 
13.13 	separation from the Department of Human 
13.14 	Services.

13.15	Subd. 3.Miller Building Replacement
 				55,000,000
	
13.16 	To design, construct, furnish, and equip a new 
13.17 	50-bed psychiatric residential treatment 
13.18 	facility and associated site improvements on 
13.19 	the campus of the Anoka Metro Regional 
13.20 	Treatment Center. This appropriation may also 
13.21 	be used to design and complete demolition of 
13.22 	the Miller Building located on the campus of 
13.23 	the Anoka Metro Regional Treatment Center, 
13.24 	and associated site improvements, and to 
13.25 	design and complete hazardous materials 
13.26 	abatement. Notwithstanding Minnesota 
13.27 	Statutes, section 16B.31, subdivision 2, the 
13.28 	Executive Board of Direct Care and Treatment 
13.29 	may use operating funds to complete the 
13.30 	project.

13.31
13.32	Sec. 17. CHILDREN, YOUTH, AND 
FAMILIES
 			$
	1,000,000
	
13.33 	To the commissioner of Children, Youth, and 
13.34 	Families for grants under Minnesota Statutes, 
14.1 	section 142A.46, to predesign, design, 
14.2 	construct, renovate, furnish, and equip early 
14.3 	childhood learning facilities.

14.4	Sec. 18. VETERANS AFFAIRS
 			$
	7,500,000
	
14.5 	To the commissioner of administration for 
14.6 	asset preservation improvements and 
14.7 	betterments of a capital nature at the veterans 
14.8 	homes in Minneapolis, Hastings, Fergus Falls, 
14.9 	Montevideo, Bemidji, Preston, Silver Bay, 
14.10 	and Luverne, and the state veterans cemeteries 
14.11 	at Little Falls, Preston, and Duluth, to be spent 
14.12 	in accordance with Minnesota Statutes, section 
14.13 	16B.307.

14.14	Sec. 19. CORRECTIONS

14.15	Subdivision 1.Total Appropriation
 			$
	40,400,000
	
14.16 	To the commissioner of administration for the 
14.17 	purposes specified in this section.

14.18	Subd. 2.Asset Preservation
 				33,000,000
	
14.19 	For asset preservation improvement and 
14.20 	betterments of a capital nature at the 
14.21 	Minnesota correctional facilities statewide to 
14.22 	be spent in accordance with Minnesota 
14.23 	Statutes, section 16B.307.

14.24
14.25	Subd. 3.Minnesota Correctional Facility - Lino 
Lakes
 				7,400,000
	
14.26 	To construct, renovate, furnish, and equip an 
14.27 	existing building and complete associated site 
14.28 	work at the Minnesota Correctional Facility - 
14.29 	Lino Lakes to construct an incarcerated 
14.30 	persons programming and support space. The 
14.31 	renovation of the existing building includes 
14.32 	but is not limited to the removal of hazardous 
14.33 	materials, upgrades to comply with current 
14.34 	codes, interior demolition, and the construction 
15.1 	of spaces appropriate for programming 
15.2 	functions. This appropriation is in addition to 
15.3 	the appropriation for the same purpose in Laws 
15.4 	2023, chapter 72, article 1, section 20, 
15.5 	subdivision 3.

15.6	Subd. 4.Unspent Appropriations
 					
15.7 	The unspent portion of an appropriation for a 
15.8 	Department of Corrections project in this 
15.9 	section that is complete, upon written notice 
15.10 	to the commissioner of management and 
15.11 	budget, is available for asset preservation 
15.12 	under Minnesota Statutes, section 16B.307. 
15.13 	Minnesota Statutes, section 16A.642, applies 
15.14 	from the date of the original appropriation to 
15.15 	the unspent amount transferred.

15.16
15.17	Sec. 20. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

15.18	Subdivision 1.Total Appropriation
 			$
	3,000,000
	
15.19 	To the commissioner of employment and 
15.20 	economic development for the purposes 
15.21 	specified in this section.

15.22
15.23	Subd. 2.Greater Minnesota Business 
Development Public Infrastructure
 				1,500,000
	
15.24 	For grants under Minnesota Statutes, section 
15.25 	116J.431.

15.26
15.27	Subd. 3.Transportation Economic Development 
Infrastructure
 				1,500,000
	
15.28 	For grants under Minnesota Statutes, section 
15.29 	116J.436.

15.30	Sec. 21. PUBLIC FACILITIES AUTHORITY

15.31	Subdivision 1.Total Appropriation
 			$
	176,000,000
	
15.32 	To the Public Facilities Authority for the 
15.33 	purposes specified in this section.

16.1
16.2	Subd. 2.State Match for Federal Grants to State 
Revolving Loan Programs
 				39,000,000
	
16.3 	To match federal capitalization grants for the 
16.4 	clean water revolving fund under Minnesota 
16.5 	Statutes, section 446A.07, and the drinking 
16.6 	water revolving fund under Minnesota 
16.7 	Statutes, section 446A.081. This appropriation 
16.8 	must be used for qualified capital projects.

16.9	Subd. 3.Water Infrastructure Funding Program
 				87,000,000
	
16.10 	(a) For grants to eligible municipalities under 
16.11 	the water infrastructure funding program under 
16.12 	Minnesota Statutes, section 446A.072.
16.13 	(b) $43,500,000 is for wastewater projects 
16.14 	listed on the Pollution Control Agency's 
16.15 	project priority list in the fundable range under 
16.16 	the clean water revolving fund program.
16.17 	(c) $43,500,000 is for drinking water projects 
16.18 	listed on the commissioner of health's project 
16.19 	priority list in the fundable range under the 
16.20 	drinking water revolving fund program.
16.21 	(d) After all eligible projects under paragraph 
16.22 	(b) or (c) have been funded in a fiscal year, 
16.23 	the Public Facilities Authority may transfer 
16.24 	any remaining, uncommitted money to eligible 
16.25 	projects under a program defined in paragraph 
16.26 	(b) or (c) based on that program's project 
16.27 	priority list.

16.28
16.29	Subd. 4.Point Source Implementation Grants 
Program
 				32,000,000
	
16.30 	For grants to eligible municipalities under the 
16.31 	point source implementation grants program 
16.32 	under Minnesota Statutes, section 446A.073. 
16.33 	This appropriation must be used for qualified 
16.34 	capital projects.

17.1
17.2	Subd. 5.Emerging Contaminants Grant 
Program
 				18,000,000
	
17.3 	For grants to eligible municipalities under the 
17.4 	Emerging Contaminants Grant Program under 
17.5 	Minnesota Statutes, section 446A.082.

17.6
17.7	Sec. 22. MINNESOTA HOUSING FINANCE 
AGENCY

17.8	Subdivision 1.Total Appropriation
 			$
	29,000,000
	
17.9 	To the Minnesota Housing Finance Agency 
17.10 	for the purposes specified in this section.

17.11	Subd. 2.Public Housing Rehabilitation
 				26,000,000
	
17.12 	To finance the costs of rehabilitation to 
17.13 	preserve public housing under Minnesota 
17.14 	Statutes, section 462A.202, subdivision 3a. 
17.15 	For purposes of this section, "public housing" 
17.16 	means housing for low-income persons and 
17.17 	households financed by the federal 
17.18 	government and publicly owned. Priority may 
17.19 	be given to proposals that maximize nonstate 
17.20 	resources to finance the capital costs and 
17.21 	requests that prioritize health, safety, and 
17.22 	energy improvements. The priority in 
17.23 	Minnesota Statutes, section 462A.202, 
17.24 	subdivision 3a, for projects to increase the 
17.25 	supply of affordable housing and the 
17.26 	restrictions of Minnesota Statutes, section 
17.27 	462A.202, subdivision 7, do not apply to this 
17.28 	appropriation.

17.29
17.30	Subd. 3.Cooperative Manufactured Housing 
Infrastructure
 				3,000,000
	
17.31 	For grants under the cooperative manufactured 
17.32 	housing infrastructure grant program under 
17.33 	Minnesota Statutes, section 462A.2036.

17.34
17.35	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

18.1	Subdivision 1.Total Appropriation
 			$
	5,000,000
	
18.2 	To the Minnesota Historical Society for the 
18.3 	purposes specified in this section.

18.4	Subd. 2.Historic Sites Asset Preservation
 				4,000,000
	
18.5 	For capital improvements and betterments at 
18.6 	state historic sites, buildings, landscaping at 
18.7 	historic buildings, exhibits, markers, and 
18.8 	monuments, to be spent in accordance with 
18.9 	Minnesota Statutes, section 16B.307. The 
18.10 	society shall determine project priorities as 
18.11 	appropriate based on need.

18.12	Subd. 3.County and Local Preservation Grants
 				1,000,000
	
18.13 	For grants to county and local jurisdictions as 
18.14 	matching money for historic preservation 
18.15 	projects of a capital nature, as provided in 
18.16 	Minnesota Statutes, section 138.0525.

18.17 	Sec. 24. BOND SALE AUTHORIZATION.
 18.18 	(a) To provide the money appropriated in this act from the bond proceeds fund, and to 
18.19 	provide for expenses authorized in Minnesota Statutes, section 16A.641, subdivision 8, 
18.20 	paragraph (c), the commissioner of management and budget shall sell and issue bonds of 
18.21 	the state in an amount up to $649,365,000 in the manner, upon the terms, and with the effect 
18.22 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
18.23 	Constitution, article XI, sections 4 to 7.
18.24 	(b) To provide the money appropriated in this act from the bond proceeds account in 
18.25 	the state transportation fund, and to provide for expenses authorized in Minnesota Statutes, 
18.26 	section 16A.641, subdivision 8, paragraph (c), the commissioner of management and budget 
18.27 	shall sell and issue bonds of the state in an amount up to $78,000,000 in the manner, upon 
18.28 	the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, 
18.29 	and by the Minnesota Constitution, article XI, sections 4 to 7.

18.30 	Sec. 25. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 18.31 	The amounts of the general obligation bond proceeds appropriations listed in the 
18.32 	cancellation report submitted to the legislature in 2025, pursuant to Minnesota Statutes, 
19.1 	section 16A.642, are canceled on the effective date of this section, with the exception of 
19.2 	appropriations and related bond sale authorizations that are extended in article 3. The 
19.3 	corresponding bond sale authorizations are reduced by the same amounts. If an appropriation 
19.4 	in this section is canceled more than once, the cancellation must be given effect only once.

19.5 	Sec. 26. BOND SALE SCHEDULE.
 19.6 	The commissioner of management and budget shall schedule the sale of state general 
19.7 	obligation bonds so that, during the biennium ending June 30, 2027, no more than 
19.8 	$1,205,280,000 will need to be transferred from the general fund to the state bond fund to 
19.9 	pay principal and interest due and to become due on outstanding state general obligation 
19.10 	bonds. During the biennium, before each sale of state general obligation bonds, the 
19.11 	commissioner of management and budget shall calculate the amount of debt service payments 
19.12 	needed on bonds previously issued and shall estimate the amount of debt service payments 
19.13 	that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the 
19.14 	amount of bonds scheduled to be sold so as to remain within the limit set by this section. 
19.15 	The amount needed to make the debt service payments is appropriated from the general 
19.16 	fund as provided in Minnesota Statutes, section 16A.641.

19.17 	Sec. 27. EFFECTIVE DATE.
 19.18 	This article is effective the day following final enactment.

19.19 	ARTICLE 2
19.20 	POLICY

19.21 	Section 1. Minnesota Statutes 2024, section 16A.501, is amended to read:
19.22 	16A.501 REPORT ON EXPENDITURE OF BOND PROCEEDS.
19.23 	(a) The commissioner of management and budget must report annually to the legislature 
19.24 	on the degree to which entities receiving appropriations for capital projects in previous 
19.25 	omnibus capital improvement acts have encumbered or expended that money. The report 
19.26 	must be submitted to the chairs of the house of representatives Ways and Means Committee 
19.27 	and the senate Finance Committee by January 1 15 of each year.
19.28 	(b) The commissioner of management and budget must report by January 15 of each 
19.29 	year to the chairs and ranking minority members of the house of representatives and senate 
19.30 	committees with jurisdiction over capital investment, finance, and ways and means on the 
19.31 	amount and percentage of each agency's capital appropriation that is used to pay for the 
19.32 	costs of staff directly attributable to capital programs or projects funded with state general 
20.1 	obligation bond proceeds. The report must also include information on agencies' compliance 
20.2 	with the commissioner's policies governing the use of general obligation bond proceeds to 
20.3 	pay staff costs and any changes to the commissioner's policies.

20.4 	Sec. 2. [115B.245] STATEWIDE DRINKING WATER CONTAMINATION 
20.5 	MITIGATION PROGRAM.
20.6 		Subdivision 1.Program established. The commissioner may design and construct, or 
20.7 	may make grants to eligible grantees as provided under this section to design and construct, 
20.8 	projects to provide safe drinking water, due to contamination of drinking water by hazardous 
20.9 	substances, through projects such as treatment systems, new drinking water wells, sealing 
20.10 	contaminated wells, and connecting to alternative drinking water sources. The criteria for 
20.11 	selecting projects must follow the criteria and rules established under section 115B.17.
20.12 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
20.13 	meanings given.
20.14 	(b) "Eligible grantee" means:
20.15 	(1) for projects funded from the statewide drinking water contamination mitigation 
20.16 	account in the bond proceeds fund, a city, county, school district, joint powers board, or 
20.17 	other political subdivision of the state; and
20.18 	(2) for projects funded from the statewide drinking water contamination mitigation 
20.19 	account in the general fund, any person.
20.20 	(c) "Private infrastructure projects" means improvements made to nonpublicly owned 
20.21 	infrastructure such as sealing of private wells, connecting private properties to water mains, 
20.22 	water service fees, treatment systems, and drilling new private wells in an unimpaired 
20.23 	drinking water aquifer.
20.24 	(d) "Public infrastructure projects" means improvements made to publicly owned 
20.25 	infrastructure such as water main installation, public water system improvements, treatment 
20.26 	systems, and associated improvements.
20.27 		Subd. 3.Accounts. (a) A statewide drinking water contamination mitigation account is 
20.28 	established in the bond proceeds fund. The account consists of state bond proceeds 
20.29 	appropriated to the commissioner for this purpose. Money in the account may only be 
20.30 	expended to acquire land or an interest in land and predesign, design, construct, and improve 
20.31 	public infrastructure projects that further the purposes of this section. Notwithstanding 
20.32 	section 115B.17, subdivision 6 or 16, any money recovered in a civil action for  a project 
21.1 	financed with bonds under this section shall be transferred to the commissioner of 
21.2 	management and budget and applied toward principal and interest on outstanding bonds.
21.3 	(b) A statewide drinking water contamination mitigation account is established in the 
21.4 	general fund. The account consists of money as provided by law and any other money 
21.5 	donated, allotted, transferred, or otherwise provided to the account. Money in the account 
21.6 	may only be expended on public or private infrastructure projects that further the purposes 
21.7 	of this section.

21.8 	Sec. 3. Minnesota Statutes 2024, section 116.182, subdivision 5, is amended to read:
21.9 		Subd. 5.Rules. (a) The agency shall adopt rules for the administration of the financial 
21.10 	assistance program. For wastewater treatment projects, the rules must include:
21.11 	(1) application requirements;
21.12 	(2) criteria for the ranking of projects in order of priority based on factors including the 
21.13 	type of project and the degree of environmental impact, and scenic and wild river standards; 
21.14 	and
21.15 	(3) criteria for determining essential project components.
21.16 	(b) Notwithstanding any provision in Minnesota Rules, chapter 7077, to the contrary, 
21.17 	for purposes of Minnesota Rules, parts 7077.0117, 7077.0118, and 7077.0119, the 
21.18 	commissioner must assign 40 points if a municipality is proposing a project to address 
21.19 	emerging contaminants, as defined by the United States Environmental Protection Agency. 
21.20 	This paragraph expires June 30, 2030.

21.21 	Sec. 4. Minnesota Statutes 2024, section 446A.07, subdivision 8, is amended to read:
21.22 		Subd. 8.Other uses of revolving fund. (a) The clean water revolving fund may be used 
21.23 	as provided in title VI of the Federal Water Pollution Control Act, including the following 
21.24 	uses:
21.25 	(1) to buy or refinance the debt obligation of governmental units for treatment works 
21.26 	where debt was incurred and construction begun after March 7, 1985, at or below market 
21.27 	rates;
21.28 	(2) to guarantee or purchase insurance for local obligations to improve credit market 
21.29 	access or reduce interest rates;
22.1 	(3) to provide a source of revenue or security for the payment of principal and interest 
22.2 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
22.3 	deposited in the fund;
22.4 	(4) to provide loan guarantees, loans, or set-aside for similar revolving funds established 
22.5 	by a governmental unit other than state agencies, or state agencies under sections 17.117, 
22.6 	103F.725, subdivision 1a, and 116J.617;
22.7 	(5) to earn interest on fund accounts; and
22.8 	(6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency 
22.9 	of administering the fund and conducting activities required under the Federal Water Pollution 
22.10 	Control Act, including water quality management planning under section 205(j) of the act 
22.11 	and water quality standards continuing planning under section 303(e) of the act;.
22.12 	(b) The clean water revolving fund may be used to provide additional subsidization as 
22.13 	permitted under the Federal Water Pollution Control Act and other federal laws to provide 
22.14 	principal forgiveness or grants:
22.15 	(7) to provide principal forgiveness or grants to the extent permitted under the Federal 
22.16 	Water Pollution Control Act and other federal law, (1) based on the affordability criteria 
22.17 	and requirements established for the wastewater water infrastructure funding program under 
22.18 	section 446A.072; and
22.19 	(8) to provide loans, principal forgiveness, or grants to the extent permitted under the 
22.20 	Federal Water Pollution Control Act and other federal law (2) for 25 percent of project costs 
22.21 	up to a maximum of $1,000,000 for projects to address green infrastructure, water or energy 
22.22 	efficiency improvements, or other environmentally innovative activities.; and
22.23 	(3) for 50 percent of project costs up to a maximum of $3,000,000 for projects that 
22.24 	address emerging contaminants as defined by the United States Environmental Protection 
22.25 	Agency.
22.26 	(b) Amounts spent under paragraph (a), clause (6), may not exceed the amount allowed 
22.27 	under the Federal Water Pollution Control Act.
22.28 	(c) Principal forgiveness or grants provided under paragraph (a), clause (8), may not 
22.29 	exceed 25 percent of the eligible project costs as determined by the Pollution Control Agency 
22.30 	for project components directly related to green infrastructure, water or energy efficiency 
22.31 	improvements, or other environmentally innovative activities, up to a maximum of 
22.32 	$1,000,000.

23.1 	Sec. 5. Minnesota Statutes 2024, section 446A.072, subdivision 5a, is amended to read:
23.2 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
23.3 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
23.4 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
23.5 	unit may not receive a grant under this paragraph for more than $5,000,000 $10,000,000
23.6 	per project or $20,000 per existing connection, whichever is less, unless specifically approved 
23.7 	by law.
23.8 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
23.9 	section 446A.07, the authority may provide assistance under this section in the form of a 
23.10 	grant if the average annual residential wastewater system cost after completion of the project 
23.11 	would otherwise exceed 1.4 percent of the median household income of the project service 
23.12 	area. In determining whether the average annual residential wastewater system cost would 
23.13 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
23.14 	operating, and maintaining the wastewater system, including existing wastewater debt 
23.15 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
23.16 	service costs for the proposed project are calculated based on the maximum loan term 
23.17 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
23.18 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
23.19 	annual residential wastewater system cost to 1.4 percent of median household income in 
23.20 	the project service area, to a maximum of $5,000,000 $10,000,000 per project or $20,000 
23.21 	per existing connection, whichever is less, unless specifically approved by law. The eligible 
23.22 	project cost is determined by multiplying the total project costs minus any other grants by 
23.23 	the essential project component percentage calculated under subdivision 3, paragraph (c), 
23.24 	clause (1). In no case may the amount of the grant exceed 80 percent of the eligible project 
23.25 	cost.
23.26 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
23.27 	under section 446A.081, the authority may provide assistance under this section in the form 
23.28 	of a grant if the average annual residential drinking water system cost after completion of 
23.29 	the project would otherwise exceed 1.2 percent of the median household income of the 
23.30 	project service area. In determining whether the average annual residential drinking water 
23.31 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
23.32 	with building, operating, and maintaining the drinking water system, including existing 
23.33 	drinking water debt service, debt service on the eligible project cost, and operation and 
23.34 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
23.35 	maximum loan term permitted for the drinking water revolving fund loan under section 
24.1 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
24.2 	the amount needed to reduce the average annual residential drinking water system cost to 
24.3 	1.2 percent of median household income in the project service area, to a maximum of 
24.4 	$5,000,000 $10,000,000 per project or $20,000 per existing connection, whichever is less, 
24.5 	unless specifically approved by law. The eligible project cost is determined by multiplying 
24.6 	the total project costs minus any other grants by the essential project component percentage 
24.7 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
24.8 	grant exceed 80 percent of the eligible project cost.
24.9 	(d) Notwithstanding the limits in paragraphs (a), (b), and (c), for a governmental unit 
24.10 	receiving supplemental assistance under this section after January 1, 2002, if the authority 
24.11 	determines that the governmental unit's construction and installation costs are significantly 
24.12 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
24.13 	limits that are more stringent than secondary treatment, the maximum award under this 
24.14 	section shall not be more than $25,000 per existing connection.

24.15 	Sec. 6. Minnesota Statutes 2024, section 446A.073, subdivision 1, as amended by Laws 
24.16 	2025, chapter 20, section 266, is amended to read:
24.17 		Subdivision 1.Program established. When money is appropriated for grants under this 
24.18 	program, the authority shall award grants up to a maximum of $7,000,000 $12,000,000 to 
24.19 	governmental units to cover 80 percent of the cost of water infrastructure projects made 
24.20 	necessary by:
24.21 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
24.22 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
24.23 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
24.24 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
24.25 	Pollution Control Agency;
24.26 	(3) any other water quality-based effluent limit established under section 115.03, 
24.27 	subdivision 1, paragraph (a), clause (5), item (viii), and incorporated into a permit issued 
24.28 	by the Pollution Control Agency that exceeds secondary treatment limits; or
24.29 	(4) a total nitrogen concentration or mass limit that requires discharging ten milligrams 
24.30 	per liter or less at permitted design flow.

25.1 	Sec. 7. Minnesota Statutes 2024, section 446A.081, subdivision 9, is amended to read:
25.2 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be used 
25.3 	as provided in the act, including the following uses:
25.4 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
25.5 	systems for drinking water systems, where the debt was incurred after the date of enactment 
25.6 	of the act, for the purposes of construction of the necessary improvements to comply with 
25.7 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
25.8 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
25.9 	access or reduce interest rates;
25.10 	(3) to provide a source of revenue or security for the payment of principal and interest 
25.11 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
25.12 	deposited in the fund;
25.13 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
25.14 	governmental unit or state agency;
25.15 	(5) to earn interest on fund accounts;
25.16 	(6) to pay the reasonable costs incurred by the authority, the Department of Employment 
25.17 	and Economic Development, and the Department of Health for conducting activities as 
25.18 	authorized and required under the act up to the limits authorized under the act; and
25.19 	(7) to develop and administer programs for water system supervision, source water 
25.20 	protection, and related programs required under the act;.
25.21 	(b) The drinking water revolving fund may be used to provide additional subsidization 
25.22 	as permitted under the federal Safe Drinking Water Act and other federal law to 
25.23 	disadvantaged communities to provide principal forgiveness or grants:
25.24 	(8) to provide principal forgiveness or grants to the extent permitted under the federal 
25.25 	Safe Drinking Water Act and other federal law, (1) based on the affordability criteria and 
25.26 	requirements established for drinking water projects under the water infrastructure funding 
25.27 	program under section 446A.072;
25.28 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
25.29 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
25.30 	or energy efficiency improvements, or other environmentally innovative activities;
26.1 	(10) to provide principal forgiveness, or grants (2) for 80 percent of project costs up to 
26.2 	a maximum of $100,000 for projects needed to comply with national primary drinking water 
26.3 	standards for an existing nonmunicipal community public water system;
26.4 	(11) to provide principal forgiveness or grants (3) to the extent permitted under the 
26.5 	federal Safe Drinking Water Act and other federal laws for projects to replace the privately 
26.6 	owned portion of drinking water lead service lines; and
26.7 	(12) to provide principal forgiveness or grants (4) to the extent permitted under the 
26.8 	federal Safe Drinking Water Act and other federal laws for 50 percent of project costs up 
26.9 	to a maximum of $3,000,000 for projects to address emerging contaminants in drinking 
26.10 	water as defined by the United States Environmental Protection Agency.; and
26.11 	(5) for 50 percent of project costs up to a maximum of $3,000,000 for projects needed 
26.12 	to comply with a maximum contaminant level as defined by the federal Safe Drinking Water 
26.13 	Act.
26.14 	(b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not 
26.15 	exceed 25 percent of the eligible project costs as determined by the Department of Health 
26.16 	for project components directly related to green infrastructure, water or energy efficiency 
26.17 	improvements, or other environmentally innovative activities, up to a maximum of 
26.18 	$1,000,000.

26.19 	Sec. 8. [446A.082] EMERGING CONTAMINANTS GRANTS.
26.20 		Subdivision 1.Program established. When money is appropriated under this program, 
26.21 	the authority shall award grants to a governmental unit for up to 50 percent of the cost of 
26.22 	drinking water infrastructure projects to address a confirmed exceedance of a health advisory 
26.23 	level for a drinking water emerging contaminant as defined by the Environmental Protection 
26.24 	Agency.
26.25 		Subd. 2.Eligibility. An eligible project for this program must:
26.26 	(1) be listed on the Drinking Water Revolving Fund Project Priority List under Minnesota 
26.27 	Rules, part 4720.9015;
26.28 	(2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
26.29 	(3) be certified by the commissioner of health under Minnesota Rules, part 4720.9060.
26.30 		Subd. 3.Application and reservation of funds. (a) Grant applications to the authority 
26.31 	may be made at any time on forms prescribed by the authority, including a project schedule 
27.1 	and cost estimate for the work necessary to comply with the purpose described in subdivision 
27.2 	2.
27.3 	(b) The commissioner of health shall review and certify to the authority those projects 
27.4 	that have plans and specifications approved under Minnesota Rules, part 4720.9060. When 
27.5 	a project is certified by the commissioner of health, the authority shall reserve grant funds 
27.6 	for the project in the order listed on the commissioner of health's project priority list and in 
27.7 	an amount based on the cost estimate in the commissioner of health's certification or the 
27.8 	as-bid costs, whichever is less.
27.9 		Subd. 4.Grant amount. The grant amount for an eligible project under this program 
27.10 	shall be for an amount up to 50 percent of the eligible as-bid project cost up to $5,000,000, 
27.11 	minus the amount of federal emerging contaminant funds the project receives under section 
27.12 	446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant 
27.13 	funds.
27.14 		Subd. 5.Grant approval. The authority shall award a grant for an eligible project only 
27.15 	after:
27.16 	(1) the applicant has submitted the as-bid project cost;
27.17 	(2) the commissioner of health has certified the grant eligible portion of the project; and
27.18 	(3) the authority has determined that the additional financing necessary to complete the 
27.19 	project has been committed from other sources.
27.20 		Subd. 6.Grant disbursement. Grant funds shall be disbursed by the authority as eligible 
27.21 	project costs are incurred by the governmental unit and in accordance with a project financing 
27.22 	agreement and applicable state laws and rules governing the disbursements.
27.23 		Subd. 7.Recovering expenses. Money granted to a grantee under this program may be 
27.24 	recovered in a civil action brought by the attorney general against any person who may be 
27.25 	liable under section 115B.04 or any other law. To be eligible for recovery, the expenses 
27.26 	must be reasonable and necessary expenses, including all response costs, and administrative 
27.27 	and legal expenses. The authority, Department of Health, and Pollution Control Agency's 
27.28 	certification of expenses shall be prima facie evidence that the expenses are reasonable and 
27.29 	necessary. Any money recovered in a civil action for a project financed with bonds under 
27.30 	this section shall be transferred to the commissioner of management and budget for deposit 
27.31 	in the state bond proceeds fund and applied toward principal interest on outstanding bonds.

28.1 	Sec. 9. [462A.2036] COOPERATIVE MANUFACTURED HOUSING 
28.2 	INFRASTRUCTURE GRANT PROGRAM.
28.3 		Subdivision 1.Grant program established. The agency may make grants to counties 
28.4 	and cities to provide up to 50 percent of the capital costs of housing infrastructure necessary 
28.5 	for an eligible cooperative manufactured housing development project. The agency shall 
28.6 	prioritize a grant award after determining that nonstate resources are committed to complete 
28.7 	the project. The nonstate contribution may be either cash or in kind. In-kind contributions 
28.8 	may include the value of the site, whether the site is prepared before or after the law 
28.9 	appropriating money for the grant is enacted.
28.10 		Subd. 2.Definition. For purposes of this section, "housing infrastructure" means publicly 
28.11 	owned physical infrastructure necessary to support cooperative manufactured housing 
28.12 	development projects, including but not limited to sewers, water supply systems, utility 
28.13 	extensions, streets, wastewater treatment systems, stormwater management systems, and 
28.14 	facilities for pretreatment of wastewater to remove phosphorus.
28.15 		Subd. 3.Eligible projects. Housing infrastructure eligible for a grant under this section 
28.16 	shall serve manufactured housing cooperatives as defined in section 273.124, subdivision 
28.17 	3a.
28.18 		Subd. 4.Application. (a) The agency must develop forms and procedures for soliciting,  
28.19 	reviewing, and prioritizing applications for grants under this section. At a minimum, a 
28.20 	county or city may include in its application a resolution of the county or city council 
28.21 	certifying that the required nonstate match is available. The agency must evaluate complete 
28.22 	applications for funding for eligible projects to determine that:
28.23 	(1) the project is necessary to increase sites available for housing development that will 
28.24 	provide adequate housing stock for the current or future workforce; and
28.25 	(2) the increase in workforce housing will result in substantial public and private capital 
28.26 	investment in the county or city in which the project would be located.
28.27 	(b) The determination of whether to make a grant for a site is within the discretion of 
28.28 	the agency, subject to this section. The agency's decisions and application of the criteria are 
28.29 	not subject to judicial review, except for abuse of discretion.
28.30 		Subd. 5.Maximum grant amount. A county or city may receive no more than $60,000 
28.31 	per manufactured housing lot.

29.1 	Sec. 10. Laws 2013, chapter 143, article 12, section 21, is amended to read:
29.2 	Sec. 21. LEGISLATIVE OFFICE FACILITIES.
29.3 	(a) The commissioner of administration may enter into a long-term lease-purchase 
29.4 	agreement for a term of up to 25 years, to predesign, design, construct, and equip offices, 
29.5 	hearing rooms, and parking facilities for legislative and other functions. The facility must 
29.6 	be located on the block bounded by Sherburne Avenue on the north, Park Street on the west, 
29.7 	University Avenue on the south, and North Capitol Boulevard on the east. The legislative 
29.8 	office facility must provide office accommodations for all senators and senate staff who do 
29.9 	not have offices in the Capitol building and on-site parking facilities for all members and 
29.10 	staff and disabled visitors to senate offices. A parking structure may also be built on the 
29.11 	state-owned land located in the block bounded by Sherburne Avenue on the north, Park 
29.12 	Street on the east, University Avenue on the south, and Rice Street on the west. The 
29.13 	commissioner of management and budget may issue lease revenue bonds or certificates of 
29.14 	participation associated with the lease-purchase agreement. The lease-purchase agreements 
29.15 	must not be terminated, except for nonappropriation of money. The lease-purchase 
29.16 	agreements must provide the state with a unilateral right to purchase the leased premises at 
29.17 	specified times for specified amounts. The lease-purchase agreements are exempt from 
29.18 	Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.
29.19 	(b) The facilities under the lease-purchase agreement are exempt from the design 
29.20 	competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding anything 
29.21 	to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner 
29.22 	of administration elects to use a design-build delivery method to design and construct one 
29.23 	or more facilities under this appropriation, the Capitol Area Architectural and Planning 
29.24 	Board, in cooperation with the commissioner, shall create a selection committee to act as 
29.25 	the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design and 
29.26 	construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if the 
29.27 	commissioner elects to contract with a primary designer to design one or more facilities 
29.28 	under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation 
29.29 	with the commissioner, shall create a selection committee to conduct the selection process 
29.30 	in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A 
29.31 	selection committee created under this section must contain no more than seven members, 
29.32 	including at least three representatives designated by the senate Committee on Rules and 
29.33 	Administration and three representatives designated by the speaker of the house.
30.1 	(c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections 16C.32
30.2 	and 16C.33, if the commissioner of administration elects to use a design-build delivery 
30.3 	method to design, construct, and equip one or more facilities and associated infrastructure 
30.4 	to provide audio and video broadcast services for the Capitol building, State Office Building, 
30.5 	and a new legislative office building, if applicable, the commissioner shall create a selection 
30.6 	committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, to 
30.7 	design, build, and equip the facilities. The selected design-builder may self-perform trade 
30.8 	work or name an audio and video subcontractor as a member of the design-builder's team. 
30.9 	If an audio and video subcontractor is named as a member of the design-builder's team, the 
30.10 	design-builder is not required to competitively bid the trade work. Notwithstanding Minnesota 
30.11 	Statutes, section 16C.33, subdivision 5, paragraph (b), after obtaining and evaluating 
30.12 	qualifications from each design-builder, in accordance with the weighted criteria and 
30.13 	subcriteria and procedures provided in the request for qualifications, the selection committee 
30.14 	shall select a short list of up to five proposals. If the commissioner does not receive any 
30.15 	proposals, the commissioner may either:
30.16 	(1) solicit new proposals;
30.17 	(2) revise the request for qualifications and thereafter solicit new proposals using the 
30.18 	revised request for qualifications; or
30.19 	(3) request selection of a primary designer under Minnesota Statutes, section 16B.33, 
30.20 	16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota Statutes, 
30.21 	sections 16C.25 to 16C.29.
30.22 	(d) The commissioner of administration may enter into a ground lease for state-owned 
30.23 	property in the capitol area in conjunction with the execution of a lease-purchase agreement 
30.24 	entered into under this section for any improvements constructed on that site. Notwithstanding 
30.25 	the requirements of Minnesota Statutes, section 16A.695, subdivision 2, paragraph (b), the 
30.26 	ground lease must be for a term equal to the term of the lease-purchase agreement, and must 
30.27 	include an option to purchase the land at its then fair market value, if the improvements are 
30.28 	not purchased by the state at the end of the term of the lease-purchase agreement, or at any 
30.29 	earlier time that the lease-purchase agreement is terminated.
30.30 	(e) The commissioner of administration must not prepare final plans and specifications 
30.31 	for any construction authorized under this section until the program plan and cost estimates 
30.32 	for all elements necessary to complete the project have been approved by the senate 
30.33 	Committee on Rules and Administration.
31.1 	(f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the 
31.2 	commissioner of administration for predesign and design of facilities authorized under 
31.3 	paragraph (a). This appropriation is available for expenditure the day following final 
31.4 	enactment and until June 30, 2015.
31.5 	(g) The commissioner of administration may reserve a portion of money from 
31.6 	appropriations for office space costs of the legislature to fund future repairs for facilities 
31.7 	constructed under the authority provided in this section. Money reserved under this paragraph 
31.8 	must be credited to a segregated account for each building in the special revenue fund and 
31.9 	is appropriated to the commissioner to make the repairs. When the state acquires title to a 
31.10 	building with an account established under this paragraph, the account for that building 
31.11 	must be abolished and the balance remaining in the account must be transferred to the 
31.12 	appropriate asset preservation and replacement account.
31.13 	(h) Certificates of participation or lease revenue bonds issued by the commissioner of 
31.14 	management and budget may be issued by public or private sale and in one or more series 
31.15 	on the terms and conditions the commissioner of management and budget determines to be 
31.16 	in the best interests of the state, shall be dated and bear interest at a fixed or variable rate, 
31.17 	may be includable in or excludable from the gross income of the owners for federal income 
31.18 	tax purposes, and may be sold at any price or percentage of par value. Any bid received 
31.19 	may be rejected.
31.20 	(i) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates 
31.21 	of participation, and at any time thereafter, so long as the bonds or certificates are outstanding, 
31.22 	the commissioner of management and budget may enter into agreements and ancillary 
31.23 	arrangements relating to the bonds or certificates, including but not limited to trust indentures, 
31.24 	grant agreements, lease or use agreements, operating agreements, management agreements, 
31.25 	liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance 
31.26 	policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest 
31.27 	exchange agreements. Any payments made or received according to the agreement or 
31.28 	ancillary arrangement shall be made from or deposited as provided in the agreement or 
31.29 	ancillary arrangement. The determination of the commissioner of management and budget 
31.30 	included in an interest exchange agreement that the agreement relates to a certificate or 
31.31 	bond shall be conclusive.
31.32 	(j) The commissioner of management and budget may enter into written agreements or 
31.33 	contracts relating to the continuing disclosure of information necessary to comply with or 
31.34 	facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds 
31.35 	or certificates of participation in accordance with federal securities laws, rules, and 
32.1 	regulations, including Securities and Exchange Commission rules and regulations in Code 
32.2 	of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of 
32.3 	covenants with purchasers and holders of certificates or bonds set forth in the order or 
32.4 	resolution authorizing the issuance of the certificates or bonds or in a separate document 
32.5 	authorized by the order or resolution.
32.6 	(k) The commissioner of administration from time to time may enter into a new 
32.7 	lease-purchase agreement and the commissioner of management and budget may issue and 
32.8 	sell lease revenue bonds or certificates of participation for the purpose of refunding any 
32.9 	lease-purchase agreement authorized under this section and related lease revenue bonds or 
32.10 	certificates of participation then outstanding, including the payment of any redemption 
32.11 	premiums, any interest accrued or that is to accrue to the redemption date, and costs related 
32.12 	to the issuance and sale of such refunding bonds or certificates. The proceeds of any refunding 
32.13 	bonds or certificates may, in the discretion of the commissioner of management and budget, 
32.14 	be applied to the purchase or payment at maturity of the bonds or certificates to be refunded, 
32.15 	to the redemption of the outstanding lease-purchase agreements and bonds or certificates 
32.16 	on any redemption date, or to pay interest on the refunding lease-purchase agreements and 
32.17 	bonds or certificates and may, pending such application, be placed in escrow to be applied 
32.18 	to such purchase, payment, retirement, or redemption. Any escrowed proceeds, pending 
32.19 	such use, may be invested and reinvested in obligations that are authorized investments 
32.20 	under Minnesota Statutes, section 11A.24. The income earned or realized on any authorized 
32.21 	investment may also be applied to the payment of the lease-purchase agreements and bonds 
32.22 	or certificates to be refunded, to interest or premiums on the refunded bonds or certificates, 
32.23 	or to pay interest on the refunding lease-purchase agreements and bonds or certificates. 
32.24 	After the terms of the escrow have been fully satisfied, any balance of proceeds and any 
32.25 	investment income may be returned to the general fund for use in a lawful manner. All 
32.26 	refunding lease-purchase agreements and bonds or certificates issued under the provisions 
32.27 	of this section must be prepared, executed, delivered, and secured by appropriations in the 
32.28 	same manner as the lease-purchase agreements and bonds or certificates to be refunded.
32.29 	(l) The waiver of immunity by the state provided for by Minnesota Statutes, section 
32.30 	3.751, subdivision 1, shall be applicable to lease revenue bonds or certificates of participation 
32.31 	issued under this section and any ancillary contracts to which the commissioner is a party.

33.1 	Sec. 11. DEPARTMENT OF PUBLIC SAFETY; LAND ACQUISITION.
 33.2 	Notwithstanding Minnesota Statutes, section 16B.31, subdivision 2, at the request of 
33.3 	the commissioner of public safety, the commissioner of administration is authorized to 
33.4 	acquire land adjacent to the Bureau of Criminal Apprehension facility in the city of Bemidji.

33.5 	Sec. 12. REPEALER.
 33.6 	(a) Minnesota Statutes 2024, section 16A.662, is repealed.
33.7 	(b) Minnesota Statutes 2024, section 116J.417, subdivision 9, is repealed effective 
33.8 	retroactively from June 2, 2023.

33.9 	Sec. 13. EFFECTIVE DATE.
 33.10 	Except as otherwise specified, this article is effective the day following final enactment.

33.11 	ARTICLE 3
33.12 	MODIFICATIONS

33.13 	Section 1. Laws 2020, Fifth Special Session chapter 3, article 1, section 16, subdivision 
33.14 	34, is amended to read:

33.15
33.16	Subd. 34.Chisago County; U.S. Highway 8 
Reconstruction
 				8,000,000
	
33.17 	(a) For a grant to Chisago County to 
33.18 	predesign, design, engineer, and construct a 
33.19 	reconstruction of marked U.S. Highway 8 
33.20 	from Karmel Avenue in Chisago City to 
33.21 	Interstate 35 and pedestrian and bike trails 
33.22 	along and crossings of this portion of U.S. 
33.23 	Highway 8. This reconstruction may include 
33.24 	expanding segments of U.S. Highway 8 to 
33.25 	four lanes, constructing or reconstructing 
33.26 	frontage roads and backage roads, and 
33.27 	realigning local roads to consolidate, remove, 
33.28 	and relocate access onto and off of U.S. 
33.29 	Highway 8. This appropriation is for the 
33.30 	portion of the project that is eligible for use 
33.31 	of proceeds of general obligation bonds. This 
33.32 	appropriation is available until the project is 
34.1 	completed or abandoned Notwithstanding 
34.2 	Minnesota Statutes, section 16A.642, the bond 
34.3 	sale authorization and appropriation of bond 
34.4 	proceeds for the project in this subdivision are 
34.5 	available until December 31, 2029.
34.6 	(b) Amounts planned by the Department of 
34.7 	Transportation for the resurfacing of U.S. 
34.8 	Highway 8, as reflected in MnDOT's Metro 
34.9 	District Ten-Year Capital Highway Investment 
34.10 	Study 2020-2029, shall instead be applied to 
34.11 	the reconstruction of U.S. Highway 8 to 
34.12 	supplement appropriations for that purpose 
34.13 	from any fund in this section.

34.14 	Sec. 2. Laws 2020, Fifth Special Session chapter 3, article 1, section 17, subdivision 13, 
34.15 	as amended by Laws 2023, chapter 72, article 3, section 23, is amended to read:

34.16
34.17	Subd. 13.White Bear Lake Communities; Lake 
Links Trail
 				3,600,000
	
34.18 	(a) For grants to complete design and 
34.19 	construction of a multiuse paved trail and route 
34.20 	for pedestrians, bicycles, and wheelchairs 
34.21 	around White Bear Lake in Ramsey and 
34.22 	Washington Counties, as follows:
34.23 	(1) $2,600,000 of this appropriation is for a 
34.24 	grant one or more grants to the city of 
34.25 	Dellwood in Washington County to design, 
34.26 	engineer, construct, and equip trail 
34.27 	improvements consistent with the completed 
34.28 	preliminary engineering along or parallel with 
34.29 	the shore of White Bear Lake between the 
34.30 	Mahtomedi city limits and the western line of 
34.31 	Washington County. This appropriation may 
34.32 	also be used for the acquisition of permanent 
34.33 	easements and right-of-way;
35.1 	(2) $500,000 of this appropriation is for a 
35.2 	grant to White Bear Township in Ramsey 
35.3 	County to design, engineer, construct, and 
35.4 	equip trail improvements along and parallel 
35.5 	with the shore of White Bear Lake between 
35.6 	the Washington County line and the city limits 
35.7 	of the city of White Bear Lake, Ramsey 
35.8 	County; and
35.9 	(3) $500,000 of this appropriation is for a 
35.10 	grant to the city of White Bear Lake in 
35.11 	Ramsey County to design, engineer, construct, 
35.12 	and equip trail improvements along or parallel 
35.13 	with the shore of White Bear Lake between 
35.14 	the eastern city limits of White Bear Lake and 
35.15 	Pacific Avenue.
35.16 	(b) The city of Dellwood may complete the 
35.17 	trail improvements funded under paragraph 
35.18 	(a), clause (1), in the following segments and 
35.19 	in any order, and may enter into separate grant 
35.20 	agreements for each trail segment or any 
35.21 	combination of segments:
35.22 	(1) Echo Street to Dwinnell Avenue, along the 
35.23 	railway bed;
35.24 	(2) Yellow Birch Road to Echo Street, along 
35.25 	Dellwood Avenue;
35.26 	(3) Meadow Lane to Yellow Birch Road, 
35.27 	along Dellwood Avenue; and
35.28 	(4) from the intersection of Dellwood Road 
35.29 	and Dellwood Avenue to the intersection of 
35.30 	Meadow Lane and Dellwood Avenue, along 
35.31 	Dellwood Avenue.
35.32 	Amounts remaining after substantial 
35.33 	completion of a trail segment or combination 
35.34 	of segments under this paragraph may be 
36.1 	applied to any other trail segment or 
36.2 	combination of segments described in this 
36.3 	paragraph.
36.4 	(c) Notwithstanding Minnesota Statutes, 
36.5 	section 16A.642, the bond sale authorization 
36.6 	and appropriation of bond proceeds for this 
36.7 	project is available until December 31, 2026
36.8 	2028.

36.9 	Sec. 3. Laws 2023, chapter 71, article 1, section 9, subdivision 12, is amended to read:

36.10	Subd. 12.Marshall; MERIT Training Center
 				2,250,000
	
36.11 	For a grant to the city of Marshall to design, 
36.12 	construct, furnish, and equip improvements a 
36.13 	50-yard and 300-yard firearms range and 
36.14 	firearms support buildings at the Minnesota 
36.15 	Emergency Response and Industrial Training 
36.16 	Center outlined in Phase 3 of the Master 
36.17 	Development Plan, including: a 50-yard and 
36.18 	300-yard firearms range; firearms support 
36.19 	buildings; and a live-burn buildout structure.

36.20 	Sec. 4. Laws 2023, chapter 71, article 1, section 11, subdivision 7, is amended to read:

36.21	Subd. 7.Dellwood; Lake Links Trail
 				2,000,000
	
36.22 	For a grant one or more grants to the city of 
36.23 	Dellwood in Washington County to design, 
36.24 	engineer, construct, and equip trail 
36.25 	improvements consistent with the completed 
36.26 	preliminary engineering along or parallel with 
36.27 	the shore of White Bear Lake between the 
36.28 	Mahtomedi city limits and the western border 
36.29 	of Washington County. This appropriation 
36.30 	may also be used for the acquisition of 
36.31 	permanent easements and right-of-way. This 
36.32 	appropriation is in addition to the 
36.33 	appropriation in Laws 2020, Fifth Special 
37.1 	Session chapter 3, article 1, section 17, 
37.2 	subdivision 13, for the same purposes.
37.3 	Notwithstanding Minnesota Statutes, section 
37.4 	16A.642, the appropriation for this project is 
37.5 	available until December 31, 2028.

37.6 	Sec. 5. Laws 2023, chapter 71, article 1, section 14, subdivision 24, is amended to read:

37.7	Subd. 24.Maple Grove; Community Center
 				6,000,000
	
37.8 	For a grant to the city of Maple Grove to 
37.9 	predesign and, design, and construct the 
37.10 	expansion and renovation of the Maple Grove 
37.11 	Community Center.

37.12 	Sec. 6. Laws 2023, chapter 71, article 1, section 14, subdivision 49, is amended to read:

37.13	Subd. 49.St. Cloud; CentraCare
 				5,000,000
	
37.14 	For a grant to CentraCare to design, construct, 
37.15 	renovate, furnish, and equip a University of 
37.16 	Minnesota Medical School Campus on the 
37.17 	CentraCare Health System Campus in the city 
37.18 	of St. Cloud.

37.19 	Sec. 7. Laws 2023, chapter 71, article 1, section 14, subdivision 67, as amended by Laws 
37.20 	2024, chapter 88, article 1, section 23, is amended to read:

37.21	Subd. 67.Isuroon
 				3,000,000
	
37.22 	(a) For a grant to Isuroon to predesign, design, 
37.23 	construct, and renovate the property located 
37.24 	at 1600 East Lake Street, in the city of 
37.25 	Minneapolis, to carry out the mission of the 
37.26 	organization to support immigrant women and 
37.27 	provide mental health counseling. This 
37.28 	appropriation may be used to reimburse 
37.29 	Isuroon for costs incurred for this project after 
37.30 	June 1, 2023.
38.1 	(b) Any money remaining after the project in 
38.2 	paragraph (a) is completed may be used to 
38.3 	acquire property for, and to predesign, design, 
38.4 	furnish, equip, renovate, and construct a 
38.5 	specialty care center for women's maternal 
38.6 	health located in Ramsey County.

38.7 	Sec. 8. Laws 2023, chapter 71, article 1, section 14, subdivision 81, as amended by Laws 
38.8 	2024, chapter 88, article 1, section 26, is amended to read:

38.9	Subd. 81.Open Arms
 				500,000
	
38.10 	For a grant to Open Arms of Minnesota to 
38.11 	acquire items of capital equipment to be used 
38.12 	for a new kitchen and nutrition counseling 
38.13 	center in Ramsey County to expand access to 
38.14 	medically tailored meals for Minnesotans with 
38.15 	life-threatening illnesses capital equipment to 
38.16 	be used in the kitchen and for HVAC 
38.17 	improvements for the nutrition counseling 
38.18 	center building in the city of Minneapolis. This 
38.19 	appropriation is available for expenditures 
38.20 	made on or after July 1, 2023.

38.21 	Sec. 9. Laws 2023, chapter 71, article 1, section 14, subdivision 93, as amended by Laws 
38.22 	2024, chapter 88, article 1, section 28, is amended to read:

38.23	Subd. 93.Somali Museum
 				3,900,000
	
38.24 	For a grant to the Somali Museum to acquire 
38.25 	land, predesign, acquire property for and to
38.26 	design, construct, furnish, and equip a facility 
38.27 	in the city of Minneapolis to be used for a 
38.28 	museum of Somali relics and artifacts, Somali 
38.29 	cultural history, and education.

39.1 	Sec. 10. Laws 2023, chapter 71, article 1, section 14, subdivision 97, is amended to read:

39.2	Subd. 97.The Link
 				5,000,000
	
39.3 	For a grant to The Link for land acquisition 
39.4 	and to predesign, and design, construct, 
39.5 	furnish, and equip a new multiuse facility in 
39.6 	North Minneapolis. The new building would 
39.7 	include a youth program and recreational 
39.8 	space, administrative and program office 
39.9 	space, and between 40 to 45 new units of 
39.10 	housing for unaccompanied homeless youth, 
39.11 	sex-trafficked youth, and young families 
39.12 	experiencing homelessness.

39.13 	Sec. 11. Laws 2023, chapter 71, article 1, section 15, subdivision 7, is amended to read:

39.14
39.15	Subd. 7.First District Association; Wastewater 
Industrial Pretreatment Facility
 				5,000,000
	
39.16 	For a grant to the First District Association, a 
39.17 	dairy cooperative located in the city of 
39.18 	Litchfield, to acquire land for, and to design, 
39.19 	engineer, construct, equip, and furnish, a new 
39.20 	wastewater industrial pretreatment facility in 
39.21 	the city of Litchfield with a processing 
39.22 	capacity of up to 1,750,000 gallons per day of 
39.23 	high strength wastewater, a biosolids handling 
39.24 	process, and renewable gas production.

39.25 	Sec. 12. Laws 2023, chapter 71, article 1, section 15, subdivision 16, is amended to read:

39.26
39.27	Subd. 16.Western Lake Superior Sanitary 
District; Clarifiers
 				17,500,000
	
39.28 	For a grant to the Western Lake Superior 
39.29 	Sanitary District to design, construct, and 
39.30 	rehabilitate four secondary clarifiers in the 
39.31 	district's wastewater treatment system.
39.32 	Notwithstanding Minnesota Statutes, section 
40.1 	16A.642, this appropriation is available until 
40.2 	December 31, 2029.

40.3 	Sec. 13. Laws 2023, chapter 72, article 1, section 7, subdivision 18, is amended to read:

40.4	Subd. 18.Heartland State Trail
 				2,950,000
	
40.5 	(a) For capital improvements to the Heartland 
40.6 	State Trail. Of this amount, (1) $550,000 is 
40.7 	for construction of a trail segment of the 
40.8 	Heartland State Trail between Detroit Lakes 
40.9 	and Frazee; and (2) $2,400,000 is for the 
40.10 	environmental review, predesign, design, and 
40.11 	construction of a paved multiple-use trail to 
40.12 	connect Itasca State Park to the Heartland 
40.13 	State Trail beginning from the park contact 
40.14 	station to the park's southeast boundary and 
40.15 	through a Phase 1 tunnel to be constructed 
40.16 	under marked U.S. Highway 71, and 
40.17 	continuing from there for about two miles.
40.18 	(b) This appropriation is in addition to the 
40.19 	appropriations in Laws 2017, First Special 
40.20 	Session chapter 8, article 1, section 6, 
40.21 	subdivision 6, and Laws 2020, Fifth Special 
40.22 	Session chapter 3, article 1, section 7, 
40.23 	subdivision 12.
40.24 	(c) Any unspent portion of the appropriation 
40.25 	remaining after completion of the project listed 
40.26 	in paragraph (a), clause (1), after written notice 
40.27 	to the commissioner of management and 
40.28 	budget, is available for the purposes of 
40.29 	environmental review, engineering, and design 
40.30 	of the following segments of the Heartland 
40.31 	State Trail: from the west Becker County line 
40.32 	to Detroit Lakes, from Park Rapids to Osage, 
40.33 	and from Osage to Frazee.

41.1 	Sec. 14. Laws 2023, chapter 72, article 1, section 16, subdivision 15, is amended to read:

41.2
41.3	Subd. 15.Savage; Road and Bridge 
Improvements
 				800,000
	
41.4 	From the bond proceeds account in the state 
41.5 	transportation fund, as provided in Minnesota 
41.6 	Statutes, section 174.50, for a grant to the city 
41.7 	of Savage to predesign and design the 
41.8 	expansion of Quentin Avenue and 
41.9 	reconstruction of two railroad bridges that pass 
41.10 	over Quentin Avenue. The project area for this 
41.11 	project is from approximately 600 feet to the 
41.12 	south to approximately 600 feet to the north 
41.13 	of the two railroad bridges that pass over 
41.14 	Quentin Avenue. Notwithstanding Minnesota 
41.15 	Statutes, section 16A.642, the bond sale 
41.16 	authorization and appropriation of bond 
41.17 	proceeds for the project in this subdivision are 
41.18 	available until December 31, 2029.

41.19 	Sec. 15. Laws 2023, chapter 72, article 2, section 2, is amended to read:

41.20
41.21	Sec. 2. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES
 			$
	1,347,000
	
41.22 	To the board of trustees of the Minnesota State 
41.23 	Colleges and Universities to design the 
41.24 	renovation of space for Career and Technical 
41.25 	Education programs and to construct the first 
41.26 	phase of the roof replacement at the Heintz 
41.27 	Center at Rochester Community and Technical 
41.28 	College.

41.29 	Sec. 16. EFFECTIVE DATE.
 41.30 	This article is effective the day following final enactment.

	ARTICLE 1	APPROPRIATIONS........	Page.Ln 1.17	
	ARTICLE 2	POLICY........	Page.Ln 19.19	
	ARTICLE 3	MODIFICATIONS........	Page.Ln 33.11	

APPENDIX 

Repealed Minnesota Statutes: 25-05718 

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.