HF 4856

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/07/2026 11:49 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; modifying
prior appropriations; authorizing the sale and issuance of state bonds; appropriating
money; amending Minnesota Statutes 2024, sections 16A.966, subdivision 7;
446A.086, subdivision 11; 462A.37, by adding a subdivision; 474A.02, subdivision
1a; Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5; proposing
coding for new law in Minnesota Statutes, chapter 115A.

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 2027 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 $ new text end

new text begin 74,800,000 new text end

new text begin To the Board of Regents of the University of
Minnesota 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 $ new text end

new text begin 74,800,000 new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities 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 2,000,000 new text end

new text begin To the commissioner of education for Mary
C. Murphy 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 3,450,000 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 2,500,000 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 500,000 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 450,000 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 1,300,000 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 62,000,000 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 30,000,000 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 3,000,000 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 2,000,000 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 Wildfire Aviation Infrastructure new text end

new text begin 5,000,000 new text end

new text begin For predesign, design, construction, and
equipping new public safety infrastructure
upgrades at the Brainerd Regional Airport to
support the agency's emergency response for
wildfires, search and rescue operations, and
other agency needs.
new text end

new text begin Subd. 6. new text end new text begin Accessibility new text end

new text begin 2,000,000 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. 7. 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) 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. 8. new text end new text begin Flood Hazard Mitigation new text end

new text begin 9,000,000 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 a municipality has
provided nonstate, nonfederal funds toward
the cost of a project that 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. 9. new text end new text begin Parks and Trails Local and Regional Recreation Grants new text end

new text begin 1,000,000 new text end

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

new text begin Subd. 10. 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 7,150,000 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 2,150,000 new text end

new text begin For projects or grants under Minnesota
Statutes, section 115B.245. Of this
appropriation, $650,000 is from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Sustainable Construction and Demolition Waste new text end

new text begin 5,000,000 new text end

new text begin For grants under Minnesota Statutes, section
115A.535.
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 14,000,000 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 5,000,000 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 9,000,000 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 AGRICULTURE new text end

new text begin $ new text end

new text begin 1,380,000 new text end

new text begin To the commissioner of administration for
capital asset preservation improvements and
betterments at the potato inspection facility
located in East Grand Forks, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

Sec. 11. new text begin RURAL FINANCE AUTHORITY new text end

new text begin $ new text end

new text begin 50,000,000 new text end

new text begin From the bond proceeds account in the rural
finance administration fund to the Rural
Finance Authority for the purposes set forth
in the Minnesota Constitution, article XI,
section 5, paragraph (h), to purchase
participation interests in or to make direct
agricultural loans to farmers under Minnesota
Statutes, chapter 41B. This appropriation is
for the beginning farmer program under
Minnesota Statutes, section 41B.039; the loan
restructuring program under Minnesota
Statutes, section 41B.04; the seller-sponsored
program under Minnesota Statutes, section
41B.042; the agricultural improvement loan
program under Minnesota Statutes, section
41B.043; and the livestock expansion loan
program under Minnesota Statutes, section
41B.045. All debt service on bond proceeds
used to finance this appropriation must be
repaid by the Rural Finance Authority under
Minnesota Statutes, section 16A.643. Loan
participations must be priced to provide full
interest and principal coverage and a reserve
for potential losses. Priority for loans must be
given first to basic beginning farmer loans,
second to seller-sponsored loans, and third to
agricultural improvement loans.
new text end

Sec. 12. new text begin MINNESOTA ZOOLOGICAL GARDEN new text end

new text begin $ new text end

new text begin 4,000,000 new text end

new text begin To the Minnesota Zoological Board 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. 13. 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 88,448,000 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 10,000,000 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 41,008,000 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 physical
security studies conducted in 2017, 2022, and
2025. 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,
State Capitol, Capitol Complex Power Plant
and Shops, and Parking Facilities, Centennial,
Freeman, Governor's Residence, Judicial
Center, Minnesota History Center, Stassen,
Senate, and Veterans Service. Of this amount,
$13,804,000 is from the general fund to be
used at the Retirement Systems building and
for nonbondable security improvements in the
buildings, facilities, and surrounding grounds
as provided in this subdivision. Additionally,
general fund money shall be used on the
Capitol Complex to update the emergency
distributed antenna system utilized by first
responders.
new text end

new text begin Subd. 4. new text end new text begin Capitol Building Asset Preservation new text end

new text begin 5,546,000 new text end

new text begin From the general fund for capital asset
preservation improvements, betterments, and
preventative maintenance to the State Capitol
building. Notwithstanding Minnesota Statutes,
section 16B.24, subdivision 5, paragraph (d),
the commissioner of administration shall not
collect rent to recover building depreciation
costs for any included asset preservation
appropriations utilized for the repairs and
maintenance of the State Capitol building paid
for from this appropriation.
new text end

new text begin Subd. 5. new text end new text begin Centennial Office Building Demolition new text end

new text begin 19,494,000 new text end

new text begin To complete design and demolition of the
Centennial Office Building and associated
infrastructure as the first phase of overall site
redevelopment. This appropriation may also
be used to design and complete hazardous
materials abatement and to design, construct,
and equip stormwater management, fiber
cabling, security, landscaping, pedestrian
tunnel modifications, Centennial parking ramp
modifications, and related infrastructure. Of
this amount, $1,600,000 is from the general
fund to relocate the cellular distributed antenna
head-end system from the Centennial Office
Building to the Freeman Building.
new text end

new text begin Subd. 6. new text end new text begin Space Efficiency and Modernization new text end

new text begin 12,400,000 new text end

new text begin From the general fund to design, construct,
renovate, furnish, and equip space to meet
tenant space needs in the Transportation
Building. Of this amount, $400,000 is for
tenant relocation and other nonbondable costs.
new text end

Sec. 14. 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 5,500,000 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 4,500,000 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 1,000,000 new text end

new text begin For grants to local units of government under
Minnesota Statutes, section 240A.09. This
appropriation must not be used to acquire ice
resurfacing or edging equipment.
new text end

Sec. 15. 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 6,000,000 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 3,500,000 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

new text begin Subd. 3. new text end new text begin Asset Preservation new text end

new text begin 2,500,000 new text end

new text begin For asset preservation improvements and
betterments at readiness centers statewide, to
be spent in accordance with Minnesota
Statutes, section 16B.307.
new text end

Sec. 16. new text begin PUBLIC SAFETY new text end

new text begin $ new text end

new text begin 46,833,000 new text end

new text begin To the commissioner of administration to
acquire land, design, construct, furnish, and
equip the expansion and renovation of the
Bureau of Criminal Apprehension Bemidji
Regional Facility. This appropriation may also
be used to design and complete hazardous
materials abatement.
new text end

Sec. 17. 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 68,000,000 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 High-Priority Pavement Projects new text end

new text begin 50,000,000 new text end

new text begin From the bond proceeds account in the trunk
highway fund for construction, reconstruction,
and improvement of trunk highways, including
design-build contracts. Projects to construct,
reconstruct, or improve trunk highways from
this appropriation must follow eligible
investment priorities identified in the
Minnesota State Highway Investment Plan.
The commissioner may use up to 17 percent
of the amount for program delivery.
new text end

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

new text begin 4,000,000 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

new text begin Subd. 4. new text end new text begin Drainage Asset Management new text end

new text begin 4,000,000 new text end

new text begin From the trunk highway fund to inventory,
assess, and repair hydraulic assets with
prioritization of highway culvert and storm
sewer rehabilitation, flood resiliency
improvement projects, and long-term
monitoring of hydraulic infrastructure,
including costs attributable to related training,
inspection, and monitoring. This appropriation
is not an appropriation for a capital
improvement project within the meaning of
Minnesota Statutes, section 16A.642,
notwithstanding the requirements in section
1, paragraph (a).
new text end

new text begin Subd. 5. new text end new text begin Transportation Building Consolidation and Remodel new text end

new text begin 10,000,000 new text end

new text begin To the commissioner of administration to
design, construct, remodel and equip space in
the Transportation Building. Of this
appropriation, $8,000,000 is from the trunk
highway fund, and $2,000,000 is from the
general fund.
new text end

Sec. 18. 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 6,000,000 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 5,000,000 new text end

new text begin For inflow and infiltration grants under
Minnesota Statutes, section 473.5491.
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 1,000,000 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

Sec. 19. 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 42,500,000 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 23,700,000 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.
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 18,800,000 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. 20. 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 86,072,000 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 23,700,000 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,
Montevideo, Bemidji, Preston, 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 new text end

new text begin 17,200,000 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

new text begin Subd. 4. new text end new text begin Hastings Veterans Home new text end

new text begin 45,172,000 new text end

new text begin To design, construct, furnish, and equip the
renovation of administrative and residential
buildings and infrastructure at the Minnesota
Veterans Home, Hastings campus. This
appropriation includes money to design and
complete demolition of all or portions of
buildings and other structures deemed
unnecessary or undesirable for the
development of the project, site preparation,
and asbestos removal and hazardous materials
abatement.
new text end

Sec. 21. 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 114,939,000 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 52,921,000 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. Of this amount,
$1,000,000 is from the general fund.
Notwithstanding the specified uses of money
under Minnesota Statutes, section 16B.307,
the commissioner may use the general fund
appropriation for capital expenditures allowed
under Minnesota Statutes, section 16B.307,
that do not constitute betterments and capital
improvements within the meaning of the
Minnesota Constitution, article XI, section 5,
clause (a). The report required under
Minnesota Statutes, section 16B.307,
subdivision 2, shall include a list of all projects
that have been paid for with this appropriation.
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 60,668,000 new text end

new text begin To 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 Facility Consolidation new text end

new text begin 350,000 new text end

new text begin For predesign of consolidation and expansion
of correctional facilities statewide.
new text end

new text begin Subd. 5. new text end new text begin Minnesota Correctional Facility - Faribault new text end

new text begin 1,000,000 new text end

new text begin From the general fund for demolition of four
buildings at the Faribault Correctional Facility
campus.
new text end

new text begin Subd. 6. 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. 22. 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 5,000,000 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 2,500,000 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 2,500,000 new text end

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

Sec. 23. 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 106,000,000 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 19,000,000 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 20,000,000 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 of this appropriation 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) $10,000,000 of this appropriation 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 45,000,000 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 Lead Service Line Replacement new text end

new text begin 7,000,000 new text end

new text begin From the general fund for grants to eligible
entities under the Lead Service Line
Replacement program under Minnesota
Statutes, section 446A.077.
new text end

new text begin Subd. 6. new text end new text begin Emerging Contaminants Grant Program new text end

new text begin 15,000,000 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. 24. new text begin MINNESOTA HOUSING FINANCE AGENCY new text end

new text begin $ new text end

new text begin 10,000,000 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. 25. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin $ new text end

new text begin 3,500,000 new text end

new text begin To the Minnesota Historical Society 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

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

new text begin (a) 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 $812,372,000 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

new text begin (b) To provide the money appropriated in this section from the bond proceeds account
in the trunk highway fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $50,050,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts requested by the
commissioner of transportation. The proceeds of the bonds, except accrued interest and any
premium received from the sale of the bonds, must be deposited in the bond proceeds account
in the trunk highway fund.
new text end

Sec. 27. new text begin CANCELLATION; BOND SALE AUTHORIZATION REDUCTIONS.
new text end

new text begin $62,372,000 of the appropriation in Laws 2023, chapter 72, article 1, section 19,
subdivision 3, is canceled. The bond sale authorization in Laws 2023, chapter 72, article 1,
section 27, subdivision 1, is reduced by the same amount.
new text end

Sec. 28. 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
$1,177,027,000 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. 29. 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.966, subdivision 7, is amended to read:

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds issued under
subdivision 2, paragraph (a), and interest credited to the special appropriation state response
to releases bond proceeds fund are appropriated as follows:

(1) to the commissioner of the Pollution Control Agency for removal and remedial
actions as specified in subdivision 2, paragraph (a), at the following sites: the Esko
Groundwater Contamination Superfund site; the city of Duluth Dump #1 Superfund site;
the Perham Arsenic site; new text begin the Hibbing Gas Manufacturing Plant Site; new text end and the Precision Plating
State Superfund site; and

(2) to the commissioner for debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and
payments under any agreements entered into under subdivision 2, paragraph (d), as permitted
by state and federal law.

Sec. 2.

new text begin [115A.535] SUSTAINABLE CONSTRUCTION AND DEMOLITION WASTE
TRANSITION GRANTS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner may make grants to
assist with the capital costs of infrastructure projects necessary to assist eligible grantees
with the transition away from the use of unlined construction and demolition landfills.
new text end

new text begin Subd. 2. new text end

new text begin Eligible grantees. new text end

new text begin For purposes of this section, "eligible grantee" means:
new text end

new text begin (1) for projects funded from the sustainable construction and demolition waste transition
grant account in the bond proceeds fund, a city, county, solid waste management district
established pursuant to sections 115A.62 to 115A.72, sanitary district, or township; or
new text end

new text begin (2) for projects funded from the sustainable construction demolition waste transition
grant account in the general fund, any person.
new text end

new text begin Subd. 3. new text end

new text begin Accounts. new text end

new text begin (a) A sustainable construction and demolition waste transition grant
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, predesign, design, construct, and improve
public infrastructure projects that further the purposes of this section.
new text end

new text begin (b) A sustainable construction and demolition waste transition grant 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 to acquire land or an interest in land, predesign, design, construct,
and improve public or private infrastructure projects that further the purposes of this section.
new text end

new text begin Subd. 4. new text end

new text begin Sustainable construction and demolition waste infrastructure grants. new text end

new text begin (a)
The commissioner may make grants to eligible grantees for infrastructure to process and
manage construction and demolition waste, including projects related to collection,
processing, waste reduction, reuse, recycling, resource recovery and disposal, and projects
addressing hazardous substances, toxic pollutants, and problem materials in the construction
and demolition waste stream. Components may also process and manage nonconstruction
and demolition waste as an ancillary function. Projects must be consistent with the policies
established under section 115A.02.
new text end

new text begin (b) Grants awarded under this subdivision may cover up to 75 percent of the eligible
expenses of a project.
new text end

new text begin (c) In awarding a grant under this subdivision, preference shall be given to projects that:
new text end

new text begin (1) assist with the creation of a regional system to transition away from unlined landfilling
of construction and demolition waste;
new text end

new text begin (2) reduce the amount of construction and demolition waste that is disposed of through
the prioritization of waste reduction, reuse, recycling, resource recovery, and other means
to prevent disposal;
new text end

new text begin (3) serve environmental justice areas; and
new text end

new text begin (4) maximize environmental, human health, and economic benefits.
new text end

new text begin Subd. 5. new text end

new text begin Construction and demolition enhanced landfill cover grants. new text end

new text begin (a) The
commissioner may make grants to eligible grantees for final enhanced cover systems to
assist with the closure of unlined construction and demolition landfills.
new text end

new text begin (b) Grants awarded under this subdivision may cover up to 50 percent of the eligible
expenses of a project.
new text end

new text begin (c) In awarding a grant under this subdivision, preference shall be given to projects that:
new text end

new text begin (1) assist with the creation of a system to transition away from unlined landfilling of
construction and demolition waste;
new text end

new text begin (2) serve environmental justice areas;
new text end

new text begin (3) demonstrate an effective cover design based on the Hydrologic Evaluation of Landfill
Performance (HELP) model that will protect groundwater by mitigating the release and
spread of contamination due to the landfill; and
new text end

new text begin (4) provide a site-specific evaluation of risk to human health and the environment and
compliance status.
new text end

Sec. 3.

Minnesota Statutes 2024, section 446A.086, subdivision 11, is amended to read:

Subd. 11.

Amount of debt obligation authorized.

The amount of debt outstanding
under this section must not exceed deleted text begin $1,000,000,000 deleted text end new text begin 1,500,000,000 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision to
read:

new text begin Subd. 2l. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2k and 3a, the agency may issue up to $50,000,000 in one or more series to which the
payments under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5, is amended
to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure
bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

(k) Each July 15, beginning in 2027 and through 2048, if any housing infrastructure
bonds issued under subdivision 2k, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.

new text begin (l) Each July 15, beginning in 2028 and through 2049, if any housing infrastructure
bonds issued under subdivision 2l, or housing infrastructure bonds issued to refund those
bonds, remain outstanding, the commissioner of management and budget must transfer to
the housing infrastructure bond account established under section 462A.21, subdivision 33,
the amount certified under paragraph (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
new text end

deleted text begin (l) deleted text end new text begin (m) new text end The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2024, section 474A.02, subdivision 1a, is amended to read:

Subd. 1a.

Aggregate bond limitation.

"Aggregate bond limitation" means deleted text begin up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located. deleted text end new text begin the greater of:
new text end

new text begin (1) 30 percent of the reasonably expected aggregate basis of a residential rental project
and the land on which the project is or will be located; or
new text end

new text begin (2) the maximum supportable permanent amortizing debt, subject to a maximum of 40
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 7. new text begin BCA MARYLAND BUILDING.
new text end

new text begin Notwithstanding any law, rule, or ordinance to the contrary, a building permit under the
State Building Code is not required to construct a new perimeter eight-foot security fence
and access controls at the BCA Maryland Building site, as enacted in Laws 2023, chapter
72, article 1, section 15, subdivision 3.
new text end