1.1 	A bill for an act
1.2 	relating to capital investment; authorizing spending to acquire and better public 
1.3 	land and buildings and other improvements of a capital nature with certain 
1.4 	conditions; authorizing the sale and issuance of state bonds; modifying prior 
1.5 	appropriations; modifying programs; appropriating money; repealing natural 
1.6 	resources trust fund appropriation bonding authority and appropriations;amending 
1.7 	Minnesota Statutes 2018, sections 116P.08, subdivision 1; 462A.222, subdivision 
1.8 	3; 462A.37, subdivision 5, by adding a subdivision; Laws 2014, chapter 294, article 
1.9 	1, section 17, subdivision 12, as amended; Laws 2018, chapter 214, article 1, 
1.10 	sections 16, subdivisions 2, 7; 17, subdivision 7; 21, subdivision 28; 22, subdivision 
1.11 	4; article 3, sections 7, subdivision 1; 14; 15; repealing Minnesota Statutes 2018, 
1.12 	section 16A.969; Laws 2018, chapter 214, article 6, section 4.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	APPROPRIATIONS

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

2.6						APPROPRIATIONS

2.7	Sec. 2. UNIVERSITY OF MINNESOTA.

2.8	Subdivision 1.Total Appropriation
 			$
	128,000,000
	
2.9 	To the Board of Regents of the University of 
2.10 	Minnesota for the purposes specified in this 
2.11 	section.

2.12
2.13	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				100,000,000
	
2.14 	To be spent in accordance with Minnesota 
2.15 	Statutes, section 135A.046.

2.16	Subd. 3.Institute of Child Development
 				28,000,000
	
2.17 	To predesign, design, renovate, expand, 
2.18 	furnish, and equip the Institute of Child 
2.19 	Development building on the Twin Cities 
2.20 	campus. This project includes the demolition 
2.21 	and replacement of the 1968 building addition.

2.22	Subd. 4.University Share
 					
2.23 	Except for the appropriations for HEAPR and 
2.24 	Glensheen renewal, the appropriations in this 
2.25 	section are intended to cover approximately 
2.26 	two-thirds of the cost of each project. The 
2.27 	remaining costs must be paid from university 
2.28 	sources.

2.29	Subd. 5.Unspent Appropriations
 					
2.30 	Upon substantial completion of a project 
2.31 	authorized in this section and after written 
2.32 	notice to the commissioner of management 
3.1 	and budget, the Board of Regents must use 
3.2 	any money remaining in the appropriation for 
3.3 	that project for HEAPR under Minnesota 
3.4 	Statutes, section 135A.046. The Board of 
3.5 	Regents must report by February 1 of each 
3.6 	even-numbered year to the chairs of the house 
3.7 	of representatives and senate committees with 
3.8 	jurisdiction over capital investment and higher 
3.9 	education finance, and to the chairs of the 
3.10 	house of representatives Ways and Means 
3.11 	Committee and the senate Finance Committee, 
3.12 	on how the remaining money has been 
3.13 	allocated or spent.

3.14
3.15	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES
 			$
	125,000,000
	
3.16 	To the Board of Trustees of the Minnesota 
3.17 	State Colleges and Universities for higher 
3.18 	education asset preservation and replacement 
3.19 	(HEAPR), to be spent in accordance with 
3.20 	Minnesota Statutes, section 135A.046.

3.21	Sec. 4. POLLUTION CONTROL AGENCY
 			$
	500,000
	
3.22 	To the Pollution Control Agency for a grant 
3.23 	to Clay County under the solid waste capital 
3.24 	assistance grants program under Minnesota 
3.25 	Statutes, section 115A.54, to construct a new 
3.26 	resource recovery campus consisting of a new 
3.27 	solid waste transfer station and problem 
3.28 	materials facility. Notwithstanding Minnesota 
3.29 	Statutes, section 115A.54, this appropriation 
3.30 	does not require a nonstate contribution.

3.31
3.32	Sec. 5. BOARD OF WATER AND SOIL 
RESOURCES
 			$
	3,000,000
	
3.33 	(a) To the Board of Water and Soil Resources 
3.34 	to acquire easements on working grasslands 
3.35 	from landowners to restore, rehabilitate, and 
4.1 	enhance working lands, in order to protect soil 
4.2 	and water quality, support wildlife habitat, 
4.3 	reduce flood damage, and provide other public 
4.4 	benefits. The provisions of Minnesota Statutes, 
4.5 	section 103F.515 apply to this program.
4.6 	(b) The board is authorized to enter into new 
4.7 	agreements and amend past agreements with 
4.8 	landowners as required by Minnesota Statutes, 
4.9 	section 103F.515, subdivision 5, to allow for 
4.10 	restoration, rehabilitation, and enhancement.

4.11	Sec. 6. ADMINISTRATION
 			$
	15,000,000
	
4.12 	(a) This appropriation is in fiscal year 2020 
4.13 	from the general fund to the commissioner of 
4.14 	administration for equipment grants to public 
4.15 	stations, as defined in Minnesota Statutes, 
4.16 	section 129D.12, subdivision 2. Prior to this 
4.17 	grant distribution, the commissioner may use 
4.18 	up to 1.5 percent of this appropriation for 
4.19 	administrative costs.
4.20 	(b) To qualify for an equipment grant the 
4.21 	station must meet the eligibility criteria 
4.22 	defined in Minnesota Statutes, section 
4.23 	129D.12. Before receiving an equipment grant, 
4.24 	a station must submit to the commissioner a 
4.25 	list of the equipment the station plans to 
4.26 	purchase with the equipment grant. The 
4.27 	commissioner may not require the station to 
4.28 	purchase equipment before receiving the grant 
4.29 	money. A station must report to the 
4.30 	commissioner a list of the equipment 
4.31 	purchased with the grant.
4.32 	(c) "Equipment" means the physical 
4.33 	infrastructure, hardware, and software used 
4.34 	for the production, dissemination, 
5.1 	interconnection, and transmission of digital 
5.2 	media content, the useful life of which may 
5.3 	range from seven to 40 years.
5.4 	(d) These grants shall be allocated as follows: 
5.5 	two-sevenths of these funds shall be awarded 
5.6 	to Twin Cities PBS; one-seventh to KSMQ 
5.7 	public television in Austin; one-seventh to 
5.8 	Pioneer Public Television in Granite Falls; 
5.9 	one-seventh to Lakeland PBS in Bemidji; 
5.10 	one-seventh to Prairie Public in 
5.11 	Fargo/Moorhead; and one-seventh to WDSE 
5.12 	public television in Duluth.

5.13	Sec. 7. TRANSPORTATION

5.14	Subdivision 1.Total Appropriation
 			$
	26,000,000
	
5.15 	To the commissioner of transportation for the 
5.16 	purposes specified in this section.

5.17	Subd. 2.Passenger Rail Improvement
 				15,000,000
	
5.18 	(a) For intercity passenger rail implementation 
5.19 	on phase I corridors identified in the 2015 
5.20 	update to the state rail plan under Minnesota 
5.21 	Statutes, section 174.03, subdivision 1b. This 
5.22 	appropriation is available for development of 
5.23 	rail investment performance measures, project 
5.24 	cost estimating, feasibility studies, alternatives 
5.25 	analysis, program delivery, and capital 
5.26 	projects, including but not limited to: design; 
5.27 	preliminary and final engineering; 
5.28 	environmental analysis and mitigation; 
5.29 	acquisition of land and right-of-way; and 
5.30 	construction. Projects include the Northern 
5.31 	Lights Express service between Minneapolis 
5.32 	and St. Paul and Duluth, a second daily 
5.33 	Amtrak train between Minneapolis and St. 
5.34 	Paul and Chicago, Twin Cities to Milwaukee 
6.1 	high speed passenger rail service, and 
6.2 	extension of the Northstar Commuter Rail 
6.3 	service to St. Cloud.
6.4 	(b) Of this appropriation, $500,000 is from 
6.5 	the general fund for a feasibility study and 
6.6 	alternatives analysis of the corridor from the 
6.7 	Twin Cities metropolitan area to Northfield 
6.8 	and Albert Lea, and is available beginning 
6.9 	July 1, 2019.
6.10 	(c) Project development must conform with 
6.11 	federal requirements as necessary to maximize 
6.12 	availability of federal funds. Notwithstanding 
6.13 	any law to the contrary, a portion or phase of 
6.14 	an intercity passenger rail project may be 
6.15 	accomplished with one or more state 
6.16 	appropriations, and an intercity passenger rail 
6.17 	project need not be completed with any one 
6.18 	appropriation.

6.19
6.20	Subd. 3.Ramsey County Regional Railroad 
Authority
 				1,000,000
	
6.21 	For a grant to the Ramsey County Regional 
6.22 	Railroad Authority for environmental analysis 
6.23 	and design of capital improvements associated 
6.24 	with grade separation of Union Pacific and 
6.25 	Burlington Northern Santa Fe track between 
6.26 	Westminster Junction and Division 
6.27 	Street/Hoffman Interlocking. No nonstate 
6.28 	match is required.

6.29	Subd. 4.Port Development Assistance
 				10,000,000
	
6.30 	For grants under Minnesota Statutes, chapter 
6.31 	457A. Any improvements made with the 
6.32 	proceeds of these grants must be publicly 
6.33 	owned.

6.34	Sec. 8. METROPOLITAN COUNCIL

7.1	Subdivision 1.Total Appropriation
 			$
	53,100,000
	
7.2 	To the Metropolitan Council for the purposes 
7.3 	specified in this section.

7.4	Subd. 2.Transit Capital Improvement Program
 				50,000,000
	
7.5 	This appropriation may be used by the 
7.6 	Metropolitan Council or for grants to Twin 
7.7 	Cities metropolitan area political subdivisions 
7.8 	for preliminary engineering, engineering, 
7.9 	environmental assessment, environmental 
7.10 	work, design, right-of-way acquisition, and 
7.11 	construction to advance transit in the 
7.12 	metropolitan area in accordance with the 
7.13 	Metropolitan Council's adopted Transportation 
7.14 	Policy Plan. The council shall allocate transit 
7.15 	capital development resources so as to achieve 
7.16 	geographic balance within the region to the 
7.17 	extent possible.

7.18
7.19	Subd. 3.Ramsey County; Battle Creek Winter 
Recreation Area
 				3,100,000
	
7.20 	For a grant to Ramsey County for design and 
7.21 	construction of a winter recreation area in 
7.22 	Battle Creek Regional Park. This appropriation 
7.23 	is not available until the commissioner of 
7.24 	management and budget determines that at 
7.25 	least $1,100,000 is contributed to the project 
7.26 	from nonstate sources.

7.27	Sec. 9. HUMAN SERVICES
 			$
	1,190,000
	
7.28 	This appropriation is in fiscal year 2020 from 
7.29 	the general fund to the commissioner of human 
7.30 	services for a grant to Family Tree Clinic to 
7.31 	acquire real property in Minneapolis, design, 
7.32 	renovate, construct, furnish, and equip Family 
7.33 	Tree Clinic, and to pay for any other 
7.34 	capitalizable costs related to the project. This 
8.1 	appropriation is not available until the 
8.2 	commissioner of management and budget 
8.3 	determines that at least $2,200,000 is 
8.4 	committed to Family Tree Clinic from 
8.5 	nonstate sources to support the project. 
8.6 	Nonstate money spent on the project before 
8.7 	the effective date of this section counts toward 
8.8 	the nonstate contribution. This appropriation 
8.9 	is available until June 30, 2022.

8.10
8.11	Sec. 10. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

8.12	Subdivision 1.Total Appropriation
 			$
	20,034,000
	
8.13 	To the commissioner of employment and 
8.14 	economic development for the purposes 
8.15 	specified in this section.

8.16	Subd. 2.Chatfield; Center for the Arts
 				7,985,000
	
8.17 	For a grant to the city of Chatfield economic 
8.18 	development authority to predesign, design, 
8.19 	renovate, construct, furnish, and equip Phase 
8.20 	III of the Chatfield Center for the Arts in the 
8.21 	city of Chatfield, which is generally described 
8.22 	as the renovation of the 1916 high school and 
8.23 	the installation of a linking structure and 
8.24 	related improvements to serve both the 1936 
8.25 	auditorium building and the 1916 school 
8.26 	building. The renovation shall include interior, 
8.27 	exterior, and amenity improvements within 
8.28 	the high school building; improvements to the 
8.29 	electrical, plumbing, and HVAC systems 
8.30 	throughout the property; and general 
8.31 	improvements to the buildings and land that 
8.32 	are known as the Chatfield Center for the Arts, 
8.33 	currently owned by the economic development 
8.34 	authority. Money, land and buildings, and 
8.35 	in-kind contributions provided to the center 
9.1 	before the enactment of this section are 
9.2 	considered to be sufficient local match, and 
9.3 	no further nonstate match is required.

9.4	Subd. 3.Hennepin County; Avivo
 				1,799,000
	
9.5 	For a grant to Hennepin County for phase 1 
9.6 	of the Avivo regional career and employment 
9.7 	center project in Minneapolis, subject to 
9.8 	Minnesota Statutes, section 16A.695. Phase 
9.9 	1 includes geotechnical and environmental 
9.10 	investigation, permitting, demolition, and site 
9.11 	work; predesign and design of the renovation 
9.12 	and expansion of a building; and predesign 
9.13 	and design for the replacement of or 
9.14 	improvements to building systems on the 
9.15 	Avivo campus, including HVAC, mechanical, 
9.16 	electrical, and accessibility improvements. No 
9.17 	match is required.

9.18
9.19	Subd. 4.Hennepin County; Children's Theatre 
Company
 				4,000,000
	
9.20 	For a grant to Hennepin County for the same 
9.21 	purposes and subject to the same conditions 
9.22 	as in Laws 2018, chapter 214, article 1, section 
9.23 	21, subdivision 11. This appropriation is not 
9.24 	available until the commissioner of 
9.25 	management and budget determines that at 
9.26 	least $4,000,000 has been committed to 
9.27 	complete the project from nonstate sources.

9.28
9.29	Subd. 5.St. Paul; International Institute of 
Minnesota
 				5,500,000
	
9.30 	For a grant to the city of St. Paul to renovate 
9.31 	and expand the International Institute of 
9.32 	Minnesota. This project includes remediation 
9.33 	of contaminated soil, renovation of the existing 
9.34 	building, construction of an addition to the 
9.35 	building, and furnishing and equipping the 
10.1 	renovated and expanded facility. This 
10.2 	appropriation is not available until the 
10.3 	commissioner of management and budget 
10.4 	determines that at least an equal amount has 
10.5 	been committed to complete the project from 
10.6 	nonstate sources. Amounts spent before the 
10.7 	effective date of this subdivision for 
10.8 	acquisition of real property, environmental 
10.9 	testing and remediation, predesign, and design 
10.10 	count toward the nonstate contribution.

10.11	Subd. 6.St. Paul; Minnesota Humanities Center
 				750,000
	
10.12 	For a grant to the city of St. Paul for asset 
10.13 	preservation of the Minnesota Humanities 
10.14 	Center's main facility, including capital 
10.15 	improvements for building envelope, 
10.16 	foundation, and structural integrity, and for 
10.17 	mechanical systems upgrades, including 
10.18 	heating, ventilation, and cooling, subject to 
10.19 	Minnesota Statutes, section 16A.695. This 
10.20 	appropriation is not available until the 
10.21 	commissioner of management and budget 
10.22 	determines that at least an equal amount has 
10.23 	been committed to complete the project from 
10.24 	nonstate sources.

10.25
10.26	Sec. 11. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	60,000,000
	
10.27 	For transfer to the housing development fund 
10.28 	to finance the costs of rehabilitation to 
10.29 	preserve public housing under Minnesota 
10.30 	Statutes, section 462A.202, subdivision 3a. 
10.31 	For purposes of this section, "public housing" 
10.32 	means housing for low-income persons and 
10.33 	households financed by the federal 
10.34 	government and owned and operated by the 
10.35 	public housing authorities and agencies formed 
11.1 	by cities and counties. Public housing 
11.2 	authorities receiving a public housing 
11.3 	assessment composite score of 80 or above or 
11.4 	an equivalent designation are eligible to 
11.5 	receive funding. Priority must be given to 
11.6 	proposals that maximize federal or local 
11.7 	resources to finance the capital costs. The 
11.8 	priority in Minnesota Statutes, section 
11.9 	462A.202, subdivision 3a, for projects to 
11.10 	increase the supply of affordable housing and 
11.11 	the restrictions of Minnesota Statutes, section 
11.12 	462A.202, subdivision 7, do not apply to this 
11.13 	appropriation.

11.14
11.15	Sec. 12. MINNESOTA HISTORICAL 
SOCIETY
 			$
	15,000,000
	
11.16 	To the Minnesota Historical Society for the 
11.17 	Historic Fort Snelling Visitor Center and is 
11.18 	added to and for the same purposes as in Laws 
11.19 	2018, chapter 214, article 1, section 24, 
11.20 	subdivision 3.

11.21	Sec. 13. BOND SALE EXPENSES
 			$
	430,000
	
11.22 	To the commissioner of management and 
11.23 	budget for bond sale expenses under 
11.24 	Minnesota Statutes, section 16A.641, 
11.25 	subdivision 8.

11.26 	Sec. 14. BOND SALE AUTHORIZATION.
 11.27 	To provide the money appropriated in this act from the bond proceeds fund, the 
11.28 	commissioner of management and budget shall sell and issue bonds of the state in an amount 
11.29 	up to $430,564,000 in the manner, upon the terms, and with the effect prescribed by 
11.30 	Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article 
11.31 	XI, sections 4 to 7.

12.1 	Sec. 15. BOND SALE SCHEDULE.
 12.2 	The commissioner of management and budget shall schedule the sale of state general 
12.3 	obligation bonds so that, during the biennium ending June 30, 2021, no more than 
12.4 	$1,225,610,000 will need to be transferred from the general fund to the state bond fund to 
12.5 	pay principal and interest due and to become due on outstanding state general obligation 
12.6 	bonds. During the biennium, before each sale of state general obligation bonds, the 
12.7 	commissioner of management and budget shall calculate the amount of debt service payments 
12.8 	needed on bonds previously issued and shall estimate the amount of debt service payments 
12.9 	that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the 
12.10 	amount of bonds scheduled to be sold so as to remain within the limit set by this section. 
12.11 	The amount needed to make the debt service payments is appropriated from the general 
12.12 	fund as provided in Minnesota Statutes, section 16A.641.

12.13 	Sec. 16. Minnesota Statutes 2018, section 462A.222, subdivision 3, is amended to read:
12.14 		Subd. 3.Allocation procedure. (a) Projects will be awarded tax credits in two 
12.15 	competitive rounds on an annual basis. The date for applications for each round must be 
12.16 	determined by the agency. No allocating agency may award tax credits prior to the application 
12.17 	dates established by the agency.
12.18 	(b) Each allocating agency must meet the requirements of section 42(m) of the Internal 
12.19 	Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax 
12.20 	credits and the selection of projects.
12.21 	(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4) 
12.22 	of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the 
12.23 	project satisfies the requirements of the allocating agency's qualified allocation plan. For 
12.24 	projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the 
12.25 	Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds 
12.26 	for the project, or the issuer of the bonds for the project is located outside the jurisdiction 
12.27 	of a city or county that has received reserved tax credits, the applicable allocation plan is 
12.28 	the agency's qualified allocation plan.
12.29 	(d)(1) To maximize the resources available for and increase the supply of affordable 
12.30 	housing in Minnesota by leveraging the benefits to Minnesota from the use of tax-exempt 
12.31 	bonds to finance multifamily housing and to allow local units of government more flexibility 
12.32 	to address specific affordable housing needs in their communities, the agency shall make 
12.33 	residential rental housing projects financed with an allocation of tax-exempt bonds under 
13.1 	chapter 474A the highest strategic priority for tax credits under the agency's qualified 
13.2 	allocation plan under section 42(m)(1)(D) of the Internal Revenue Code of 1986, as amended.
13.3 	(2) For projects eligible for an allocation of tax credits under section 42(h)(4) of the 
13.4 	Internal Revenue Code of 1986, as amended, the agency's qualified allocation plan and 
13.5 	other related agency guidance and requirements:
13.6 	(i) shall not include any selection criteria other than (A) the criteria of section 42(m)(1)(C) 
13.7 	of the Internal Revenue Code of 1986, as amended, and (B) whether the project has received 
13.8 	an allocation of tax-exempt bonds under chapter 474A, with subitem (B) as the most 
13.9 	important criteria;
13.10 	(ii) shall grant projects receiving an allocation of tax-exempt bonds under chapter 474A
13.11 	the highest possible preference and, to the extent applicable, ahead of any preference 
13.12 	described in section 42(m)(1)(B) of the Internal Revenue Code of 1986, as amended;
13.13 	(iii) shall exclude any per-unit cost limitations, cost reasonableness, or other similar 
13.14 	restrictions for residential rental housing projects financed with an allocation of tax-exempt 
13.15 	bonds under chapter 474A; and
13.16 	(iv) shall not adopt or impose any additional rules, requirements, regulations, or 
13.17 	restrictions other than those required by section 42 of the Internal Revenue Code of 1986, 
13.18 	as amended, regarding the allocation of credits.
13.19 	Each developer of a residential rental housing project that has received an allocation of 
13.20 	tax-exempt bonds under chapter 474A and the proposed issuer of such tax-exempt bonds 
13.21 	shall have standing to challenge the agency's qualified allocation plan for failure to comply 
13.22 	with this clause.
13.23 	In the event of any conflict or inconsistency between this paragraph and section 462A.04, 
13.24 	the provisions of this paragraph shall govern and control. The provisions of paragraph (d) 
13.25 	shall not apply to any allocating agency other than the agency.
13.26 	(e) For applications submitted for the first round, an allocating agency may allocate tax 
13.27 	credits only to the following types of projects:
13.28 	(1) in the metropolitan area:
13.29 	(i) new construction or substantial rehabilitation of projects in which, for the term of the 
13.30 	extended use period, at least 75 percent of the total tax credit units are single-room 
13.31 	occupancy, efficiency, or one bedroom units and which are affordable by households whose 
13.32 	income does not exceed 30 percent of the median income;
14.1 	(ii) new construction or substantial rehabilitation family housing projects that are not 
14.2 	restricted to persons who are 55 years of age or older and in which, for the term of the 
14.3 	extended use period, at least 75 percent of the tax credit units contain two or more bedrooms 
14.4 	and at least one-third of the 75 percent contain three or more bedrooms; or
14.5 	(iii) substantial rehabilitation projects in neighborhoods targeted by the city for 
14.6 	revitalization;
14.7 	(2) outside the metropolitan area, projects which meet a locally identified housing need 
14.8 	and which are in short supply in the local housing market as evidenced by credible data 
14.9 	submitted with the application;
14.10 	(3) projects that are not restricted to persons of a particular age group and in which, for 
14.11 	the term of the extended use period, a percentage of the units are set aside and rented to 
14.12 	persons:
14.13 	(i) with a serious and persistent mental illness as defined in section 245.462, subdivision 
14.14 	20, paragraph (c);
14.15 	(ii) with a developmental disability as defined in United States Code, title 42, section 
14.16 	6001, paragraph (5), as amended through December 31, 1990;
14.17 	(iii) who have been assessed as drug dependent persons as defined in section 254A.02, 
14.18 	subdivision 5, and are receiving or will receive care and treatment services provided by an 
14.19 	approved treatment program as defined in section 254A.02, subdivision 2;
14.20 	(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or
14.21 	(v) with permanent physical disabilities that substantially limit one or more major life 
14.22 	activities, if at least 50 percent of the units in the project are accessible as provided under 
14.23 	Minnesota Rules, chapter 1340;
14.24 	(4) projects, whether or not restricted to persons of a particular age group, which preserve 
14.25 	existing subsidized housing, if the use of tax credits is necessary to prevent conversion to 
14.26 	market rate use or to remedy physical deterioration of the project which would result in loss 
14.27 	of existing federal subsidies; or
14.28 	(5) projects financed by the Farmers Home Administration, or its successor agency, 
14.29 	which meet statewide distribution goals.
14.30 	(f) Before the date for applications for the final round, the allocating agencies other than 
14.31 	the agency shall return all uncommitted and unallocated tax credits to a unified pool for 
14.32 	allocation by the agency on a statewide basis.
15.1 	(g) Unused portions of the state ceiling for low-income housing tax credits reserved to 
15.2 	cities and counties for allocation may be returned at any time to the agency for allocation.
15.3 	(h) If an allocating agency determines, at any time after the initial commitment or 
15.4 	allocation for a specific project, that a project is no longer eligible for all or a portion of the 
15.5 	low-income housing tax credits committed or allocated to the project, the credits must be 
15.6 	transferred to the agency to be reallocated pursuant to the procedures established in 
15.7 	paragraphs (f) to (h); provided that if the tax credits for which the project is no longer eligible 
15.8 	are from the current year's annual ceiling and the allocating agency maintains a waiting list, 
15.9 	the allocating agency may continue to commit or allocate the credits until not later than the 
15.10 	date of applications for the final round, at which time any uncommitted credits must be 
15.11 	transferred to the agency.

15.12 	Sec. 17. Minnesota Statutes 2018, section 462A.37, is amended by adding a subdivision 
15.13 	to read:
15.14 		Subd. 2f.Additional authorization. In addition to the amount authorized in subdivisions 
15.15 	2, 2a, 2b, 2c, 2d, and 2e, the agency may issue up to $90,000,000 in housing infrastructure 
15.16 	bonds in one or more series to which the payments under this section may be pledged.

15.17 	Sec. 18. Minnesota Statutes 2018, section 462A.37, subdivision 5, is amended to read:
15.18 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
15.19 	commissioner of management and budget the actual amount of annual debt service on each 
15.20 	series of bonds issued under subdivisions 2a, 2b, 2c, 2d, and 2e, and 2f.
15.21 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
15.22 	bonds issued under subdivision 2a remain outstanding, the commissioner of management 
15.23 	and budget must transfer to the housing infrastructure bond account established under section 
15.24 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 
15.25 	annually. The amounts necessary to make the transfers are appropriated from the general 
15.26 	fund to the commissioner of management and budget.
15.27 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
15.28 	bonds issued under subdivision 2b remain outstanding, the commissioner of management 
15.29 	and budget must transfer to the housing infrastructure bond account established under section 
15.30 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 
15.31 	annually. The amounts necessary to make the transfers are appropriated from the general 
15.32 	fund to the commissioner of management and budget.
16.1 	(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure 
16.2 	bonds issued under subdivision 2c remain outstanding, the commissioner of management 
16.3 	and budget must transfer to the housing infrastructure bond account established under section 
16.4 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000 
16.5 	annually. The amounts necessary to make the transfers are appropriated from the general 
16.6 	fund to the commissioner of management and budget.
16.7 	(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure 
16.8 	bonds issued under subdivision subdivisions 2d and 2e remain outstanding, the commissioner 
16.9 	of management and budget must transfer to the housing infrastructure bond account 
16.10 	established under section 462A.21, subdivision 33, the amount certified under paragraph 
16.11 	(a). The amounts necessary to make the transfers are appropriated from the general fund to 
16.12 	the commissioner of management and budget.
16.13 	(f) Each July 15, beginning in 2020 2021 and through 2041 2042, if any housing 
16.14 	infrastructure bonds issued under subdivision 2e 2f remain outstanding, the commissioner 
16.15 	of management and budget must transfer to the housing infrastructure bond account 
16.16 	established under section 462A.21, subdivision 33, the amount certified under paragraph 
16.17 	(a). The amounts necessary to make the transfers are appropriated from the general fund to 
16.18 	the commissioner of management and budget.
16.19 	(g) The agency may pledge to the payment of the housing infrastructure bonds the 
16.20 	payments to be made by the state under this section.

16.21 	Sec. 19. EFFECTIVE DATE.
 16.22 	Except as otherwise provided, this article is effective the day following final enactment.

16.23 	ARTICLE 2
16.24 	TRUST FUND APPROPRIATION BONDING
16.25 	CONVERTED TO GO BONDING

16.26	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
16.27 	The sums shown in the column under "Appropriations" are appropriated from the bond 
16.28 	proceeds fund, or another named fund, to the state agencies or officials indicated, to be 
16.29 	spent for public purposes. Appropriations of bond proceeds must be spent as authorized by 
16.30 	the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public 
16.31 	land and buildings and other public improvements of a capital nature, or as authorized by 
16.32 	the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless 
16.33 	otherwise specified, money appropriated in this act:
17.1 	(1) may be used to pay state agency staff costs that are attributed directly to the capital 
17.2 	program or project in accordance with accounting policies adopted by the commissioner of 
17.3 	management and budget;
17.4 	(2) is available until the project is completed or abandoned subject to Minnesota Statutes, 
17.5 	section 16A.642;
17.6 	(3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, 
17.7 	should not be used for projects that can be financed within a reasonable time frame under 
17.8 	Minnesota Statutes, section 16B.322 or 16C.144; and
17.9 	(4) is available for a grant to a political subdivision after the commissioner of management 
17.10 	and budget determines that an amount sufficient to complete the project as described in this 
17.11 	act has been committed to the project, as required by Minnesota Statutes, section 16A.502.

17.12						APPROPRIATIONS

17.13	Sec. 2. NATURAL RESOURCES.

17.14	Subdivision 1.Total Appropriation
 			$
	13,000,000
	
17.15 	(a) To the commissioner of natural resources 
17.16 	for the purposes specified in this section.
17.17 	(b) The appropriations in this section are 
17.18 	subject to the requirements of the natural 
17.19 	resources capital improvement program under 
17.20 	Minnesota Statutes, section 86A.12, unless 
17.21 	this section or the statutes referred to in this 
17.22 	section provide more specific standards, 
17.23 	criteria, or priorities for projects than 
17.24 	Minnesota Statutes, section 86A.12.

17.25	Subd. 2.Natural Resources Asset Preservation
 				3,419,000
	
17.26 	For the renovation of state-owned facilities 
17.27 	and recreational assets operated by the 
17.28 	commissioner of natural resources to be spent 
17.29 	in accordance with Minnesota Statutes, section 
17.30 	84.946. Notwithstanding Minnesota Statutes, 
17.31 	section 84.946, the commissioner may use this 
17.32 	appropriation to replace buildings if, 
17.33 	considering the embedded energy in the 
18.1 	building, that is the most energy-efficient and 
18.2 	carbon-reducing method of renovation.

18.3	Subd. 3.Elk River - Lake Orono
 				1,500,000
	
18.4 	For a grant to the city of Elk River to dredge 
18.5 	Lake Orono.

18.6	Subd. 4.South St. Paul - Seidl's Lake
 				781,000
	
18.7 	For a grant to the city of South St. Paul for 
18.8 	capital improvements to improve the water 
18.9 	quality of Seidl's Lake. The capital 
18.10 	improvements include design, engineering, 
18.11 	construction, and equipping of a storm water 
18.12 	lift station to discharge excess storm water 
18.13 	into the city of South St. Paul's storm sewer 
18.14 	system to minimize the fluctuating water 
18.15 	levels of the lake. This project may be 
18.16 	implemented jointly by the cities of South St. 
18.17 	Paul, Inver Grove Heights, and West St. Paul.

18.18	Subd. 5.Lake Redwood Reclamation
 				7,300,000
	
18.19 	For a grant to the Redwood-Cottonwood 
18.20 	Rivers Control Area, a joint powers entity, to 
18.21 	predesign, design, construct, and equip the 
18.22 	reservoir reclamation and enhancement of the 
18.23 	66-acre Lake Redwood Reservoir, to remove 
18.24 	approximately 650,000 cubic yards of 
18.25 	sediment and increase its depth from 
18.26 	approximately 2.8 feet to 20 feet in order to 
18.27 	secure renewable energy capacity of the 
18.28 	hydroelectric dam which is impeded by lack 
18.29 	of water capacity, reduce the flow of pollutants 
18.30 	to the Minnesota River, and increase fish 
18.31 	habitat and enhance recreational opportunities.

18.32	Sec. 3. POLLUTION CONTROL AGENCY
 			$
	6,000,000
	
18.33 	To the Pollution Control Agency to design 
18.34 	and construct remedial systems, including 
19.1 	cleanup and removal of a leaking hazardous 
19.2 	waste pit and protection of groundwater, at 
19.3 	the Waste Disposal Engineering site in Anoka 
19.4 	County in accordance with the closed landfill 
19.5 	program under Minnesota Statutes, sections 
19.6 	115B.39 to 115B.42.

19.7
19.8	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 			$
	10,000,000
	
19.9 	(a) To the Board of Water and Soil Resources 
19.10 	to acquire conservation easements from 
19.11 	landowners to preserve, restore, create, and 
19.12 	enhance wetlands and associated uplands of 
19.13 	prairie and grasslands, and restore and enhance 
19.14 	rivers and streams, riparian lands, and 
19.15 	associated uplands of prairie and grasslands 
19.16 	in order to protect soil and water quality, 
19.17 	support fish and wildlife habitat, reduce flood 
19.18 	damage, and provide other public benefits. 
19.19 	The provisions of Minnesota Statutes, section 
19.20 	103F.515, apply to this program.
19.21 	(b) The board shall give priority to leveraging 
19.22 	federal money by enrolling targeted new lands 
19.23 	or enrolling environmentally sensitive lands 
19.24 	that have expiring federal conservation 
19.25 	agreements.
19.26 	(c) The board is authorized to enter into new 
19.27 	agreements and amend past agreements with 
19.28 	landowners as required by Minnesota Statutes, 
19.29 	section 103F.515, subdivision 5, to allow for 
19.30 	restoration.
19.31 	(d) Of this appropriation, up to five percent 
19.32 	may be used for restoration, rehabilitation, and 
19.33 	enhancement; and no more than $1,000,000 
19.34 	may be used to acquire working lands 
19.35 	easements.

20.1	Sec. 5. METROPOLITAN COUNCIL
 			$
	10,000,000
	
20.2 	To the Metropolitan Council for the cost of 
20.3 	improvements and betterments of a capital 
20.4 	nature and acquisition by the council and local 
20.5 	government units of regional recreational 
20.6 	open-space lands in accordance with the 
20.7 	council's policy plan as provided in Minnesota 
20.8 	Statutes, section 473.147. This appropriation 
20.9 	must not be used to purchase easements.

20.10	Sec. 6. PUBLIC FACILITIES AUTHORITY

20.11	Subdivision 1.Total Appropriation
 			$
	59,000,000
	
20.12 	To the Public Facilities Authority for the 
20.13 	purposes specified in this section.

20.14	Subd. 2.State Match for Federal Grants
 				6,000,000
	
20.15 	To match federal grants for the clean water 
20.16 	revolving fund for wastewater treatment under 
20.17 	Minnesota Statutes, section 446A.07. This 
20.18 	appropriation must be used for qualified 
20.19 	capital projects.

20.20	Subd. 3.Water Infrastructure Funding Program
 				14,652,000
	
20.21 	For grants to eligible municipalities under the 
20.22 	wastewater infrastructure funding program 
20.23 	under Minnesota Statutes, section 446A.072, 
20.24 	for wastewater projects listed on the Pollution 
20.25 	Control Agency's project priority list in the 
20.26 	fundable range under the clean water revolving 
20.27 	fund program.

20.28
20.29	Subd. 4.Point Source Implementation Grants 
Program
 				38,348,000
	
20.30 	For grants to eligible municipalities under the 
20.31 	point source implementation grants program 
20.32 	under Minnesota Statutes, section 446A.073. 
21.1 	This appropriation must be used for qualified 
21.2 	capital projects.

21.3	Sec. 7. BOND SALE EXPENSES
 			$
	98,000
	
21.4 	To the commissioner of management and 
21.5 	budget for bond sale expenses under 
21.6 	Minnesota Statutes, section 16A.641, 
21.7 	subdivision 8.

21.8 	Sec. 8. BOND SALE AUTHORIZATION.
 21.9 	To provide the money appropriated in this article from the bond proceeds fund, the 
21.10 	commissioner of management and budget shall sell and issue bonds of the state in an amount 
21.11 	up to $98,098,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 
21.12 	Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, 
21.13 	sections 4 to 7.

21.14 	Sec. 9. Minnesota Statutes 2018, section 116P.08, subdivision 1, is amended to read:
21.15 		Subdivision 1.Expenditures. (a) Money in the trust fund may be spent only for:
21.16 	(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;
21.17 	(2) research that contributes to increasing the effectiveness of protecting or managing 
21.18 	the state's environment or natural resources;
21.19 	(3) collection and analysis of information that assists in developing the state's 
21.20 	environmental and natural resources policies;
21.21 	(4) enhancement of public education, awareness, and understanding necessary for the 
21.22 	protection, conservation, restoration, and enhancement of air, land, water, forests, fish, 
21.23 	wildlife, and other natural resources;
21.24 	(5) capital projects for the preservation and protection of unique natural resources;
21.25 	(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural 
21.26 	resources that otherwise may be substantially impaired or destroyed in any area of the state;
21.27 	(7) administrative and investment expenses incurred by the State Board of Investment 
21.28 	in investing deposits to the trust fund; and
21.29 	(8) administrative expenses subject to the limits in section 116P.09; and.
22.1 	(9) to pay principal and interest on special appropriation trust fund bonds issued pursuant 
22.2 	to section 16A.969 and other law.
22.3 	(b) In making recommendations for expenditures from the trust fund, the commission 
22.4 	shall give priority to funding programs and projects under paragraph (a), clauses (1) and 
22.5 	(6). Any requests for proposals issued by the commission shall clearly indicate these 
22.6 	priorities.

22.7 	Sec. 10.  REPEALER.
 22.8 	Minnesota Statutes 2018, section 16A.969, and Laws 2018, chapter 214, article 6, section 
22.9 	4,  are repealed.

22.10 	Sec. 11. EFFECTIVE DATE.
 22.11 	This article is effective the day following final enactment.

22.12 	ARTICLE 3
22.13 	CORRECTIONS, CHANGES TO PRIOR ACTS

22.14 	Section 1. Laws 2014, chapter 294, article 1, section 17, subdivision 12, as amended by 
22.15 	Laws 2017, First Special Session chapter 8, article 2, section 29, is amended to read:

22.16
22.17	Subd. 12.West St. Paul - River to River Regional 
Greenway
 				2,000,000
	
22.18 	For a grant to the city of West St. Paul to 
22.19 	predesign, design, and construct a grade 
22.20 	separated crossing of Robert Street in the area 
22.21 	near Wentworth Avenue in West St. Paul for 
22.22 	the River to River Regional Greenway. This 
22.23 	appropriation may also be used to acquire 
22.24 	property or purchase rights-of-way needed for 
22.25 	construction. A nonstate match is not required.
22.26 	Notwithstanding Minnesota Statutes, section 
22.27 	16A.642, the bond sale authorization and 
22.28 	appropriation of bond proceeds for this project 
22.29 	are available until December 31, 2021.

22.30 	Sec. 2. Laws 2018, chapter 214, article 1, section 16, subdivision 2, is amended to read:

22.31	Subd. 2.Local Road Improvement Fund Grants
 				78,600,000
	
23.1 	(a) From the bond proceeds account in the 
23.2 	state transportation fund as provided in 
23.3 	Minnesota Statutes, section 174.50, for trunk 
23.4 	highway corridor projects under Minnesota 
23.5 	Statutes, section 174.52, subdivision 2, for 
23.6 	construction and reconstruction of local roads 
23.7 	with statewide or regional significance under 
23.8 	Minnesota Statutes, section 174.52, 
23.9 	subdivision 4, or for grants to counties to assist 
23.10 	in paying the costs of rural road safety capital 
23.11 	improvement projects on county state-aid 
23.12 	highways under Minnesota Statutes, section 
23.13 	174.52, subdivision 4a.
23.14 	(b) Of this amount, $13,500,000 is for a grant 
23.15 	to the city of Dayton for design, engineering, 
23.16 	environmental analysis, property and easement 
23.17 	acquisition, construction, and reconstruction 
23.18 	of local roads in conjunction with an 
23.19 	interchange on marked Interstate Highway 94 
23.20 	near Hennepin County State-Aid Highway 
23.21 	101, known as Brockton Lane, in Dayton.
23.22 	(c) Of this amount, $6,100,000 is for a grant 
23.23 	to the city of Inver Grove Heights to 
23.24 	predesign, design, engineer, acquire 
23.25 	right-of-way property and temporary and 
23.26 	permanent easements, inspect, and construct 
23.27 	or reconstruct: (1) realignment of Dakota 
23.28 	County State-Aid Highway 63, known as 
23.29 	Argenta Trail, in Inver Grove Heights, from 
23.30 	northerly of its intersection with Amana Trail 
23.31 	to the anticipated future alignment of 65th 
23.32 	Street, then west to the existing Argenta Trail 
23.33 	alignment, and in anticipation of the 
23.34 	development of an interchange of Argenta 
23.35 	Trail and marked Interstate Highway 494; and 
24.1 	(2) expansion from two lanes to four lanes of 
24.2 	Dakota County State-Aid Highway 26, known 
24.3 	as 70th Street West, in Inver Grove Heights, 
24.4 	from the border with Eagan to through the 
24.5 	intersection with Argenta Trail as realigned, 
24.6 	to the intersection of Highway 26 with Trunk 
24.7 	Highway 3, known as Robert Street.
24.8 	(d) Of this amount, $9,000,000 is for a grant 
24.9 	to Carver County following a jurisdictional 
24.10 	transfer to Carver County of the affected 
24.11 	segment of marked Trunk Highway 101. The 
24.12 	appropriation may be used for design, 
24.13 	right-of-way acquisition, engineering, and 
24.14 	reconstruction of the segment transferred to 
24.15 	the county that is between Pioneer Trail and 
24.16 	Flying Cloud Drive, including grade 
24.17 	separation of a multipurpose pedestrian and 
24.18 	bicycle trail from the segment for the 
24.19 	Minnesota River Bluffs Regional Trail and a 
24.20 	regional trail along marked Trunk Highway 
24.21 	101.

24.22 	Sec. 3. Laws 2018, chapter 214, article 1, section 16, subdivision 7, is amended to read:

24.23
24.24	Subd. 7.Brooklyn Park - Trunk Highway 169 
and 101st Avenue Interchange Project
 				4,000,000
	
24.25 	$4,000,000 is from the bond proceeds account 
24.26 	in the state transportation fund for a grant to 
24.27 	the city of Brooklyn Park for preliminary and 
24.28 	final design, engineering, environmental 
24.29 	analysis, right-of-way acquisition, and 
24.30 	construction of an interchange located at 
24.31 	Trunk Highway 169 and 101st Avenue in the 
24.32 	city of Brooklyn Park.

25.1 	Sec. 4. Laws 2018, chapter 214, article 1, section 17, subdivision 7, is amended to read:

25.2	Subd. 7.White Bear Lake Trail and Route
 				4,000,000
	
25.3 	(a) To the Metropolitan Council for grants to 
25.4 	complete design and construction of a multiuse 
25.5 	paved trail and route for pedestrians, bicycles, 
25.6 	and wheelchairs around White Bear Lake in 
25.7 	Ramsey and Washington Counties.
25.8 	(b) $2,600,000 of this appropriation is for a 
25.9 	grant to Ramsey County to design and 
25.10 	construct trail improvements, consistent with 
25.11 	the completed preliminary engineering, along 
25.12 	South Shore Boulevard between White Bear 
25.13 	Avenue and marked Trunk Highway 120 and 
25.14 	to pave an existing dirt path within the Ramsey 
25.15 	County Beach and Water Park from the 
25.16 	entrance to the park at Highway 96 to the 
25.17 	northeast edge of the park.
25.18 	(c) $1,400,000 of this appropriation is for a 
25.19 	grant to the city of Mahtomedi to design and 
25.20 	construct and design, construct, and equip 
25.21 	elements of the trail and route along or 
25.22 	proximate to Birchwood Road, Wildwood 
25.23 	Beach Road, and on or in the proximity of 
25.24 	Briarwood Road, consistent with the 
25.25 	completed preliminary engineering, and final 
25.26 	design and specification, subject to approval 
25.27 	of the commissioner of transportation with 
25.28 	regard to elements of the trail and route that 
25.29 	are within or adjacent to the right-of-way of 
25.30 	marked Trunk Highway 244.

26.1 	Sec. 5. Laws 2018, chapter 214, article 1, section 21, subdivision 28, is amended to read:

26.2
26.3	Subd. 28.St. Paul - Southeast Asian Language 
Job Training Facilities
 				5,500,000
	
26.4 	For a grant to the city of St. Paul to predesign, 
26.5 	design, renovate, construct, furnish, and equip 
26.6 	a bus driver and mechanics training facility 
26.7 	on Acker Sycamore Street in St. Paul for 
26.8 	training drivers and mechanics through 
26.9 	programming primarily in the Southeast Asian 
26.10 	languages, and to predesign, design, renovate, 
26.11 	construct, furnish, and equip a training facility 
26.12 	on Plato Avenue in St. Paul to be used during 
26.13 	renovation of the Acker Street facility and for 
26.14 	use as a training facility for health care, 
26.15 	manufacturing, and information technology 
26.16 	jobs through programming primarily in the 
26.17 	Southeast Asian languages. This appropriation 
26.18 	may be used to acquire property for these 
26.19 	purposes. The city of St. Paul may enter into 
26.20 	a lease or management agreement with a 
26.21 	nonprofit corporation for either or both of 
26.22 	these facilities under Minnesota Statutes, 
26.23 	section 16A.695.

26.24 	Sec. 6. Laws 2018, chapter 214, article 1, section 22, subdivision 4, is amended to read:

26.25	Subd. 4.Arden Hills - Water Main
 				500,000
	
26.26 	For a grant to the city of Arden Hills to install 
26.27 	a water main extending along Highway 96 10, 
26.28 	from Highway 10 96 to Interstate Highway 
26.29 	35W.

26.30 	Sec. 7. Laws 2018, chapter 214, article 3, section 7, subdivision 1, is amended to read:
26.31 		Subdivision 1.Appropriation. $2,000,000 is appropriated from the bond proceeds 
26.32 	account in the state transportation fund to the commissioner of transportation for a grant to 
26.33 	the city of Ramsey for engineering, design, and right-of-way acquisition required for 
27.1 	construction of an underpass on Anoka County State-Aid Highway 56, otherwise known 
27.2 	as Ramsey Boulevard, under the Burlington Northern Santa Fe Railroad in the city of Ramsey 
27.3 	and associated improvements on U.S. Trunk Highway 10/169 in the city of Ramsey.

27.4 	Sec. 8. Laws 2018, chapter 214, article 3, section 14, is amended to read:
27.5 	Sec. 14. APPLICATION.
 27.6 	Appropriations in this article are subject to article 1, section 1. The appropriation in 
27.7 	section 9 8 is from the local road improvement fund.

27.8 	Sec. 9. Laws 2018, chapter 214, article 3, section 15, is amended to read:
27.9 	Sec. 15. REDUCTIONS.
 27.10 	The following appropriations are reduced in article 1:
27.11 	(1) $2,900,000 from the Merit Center;
27.12 	(2) $2,000,000 from TED;
27.13 	(3) $2,000,000 from Corrections Asset Prevention; and
27.14 	(4) $15,000,000 from Local Road and Bridge the appropriation in article 1, section 16, 
27.15 	subdivision 2.

27.16 	Sec. 10. EFFECTIVE DATE.
 27.17 	This article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 19-2357 

16A.969 ENVIRONMENT AND NATURAL RESOURCES TRUST FUND APPROPRIATION BONDS.Subdivision 1.Definitions. 
(a) The definitions in this subdivision apply to this section. 

(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of the state payable during a biennium from one or more of the following sources: 

(1) money appropriated by law from the environment and natural resources trust fund in any biennium for debt service due with respect to obligations described in subdivision 2; 

(2) proceeds of the sale of obligations described in subdivision 2; 

(3) payments received for that purpose under agreements and ancillary arrangements described in subdivision 2, paragraph (d); and 

(4) investment earnings on amounts in clauses (1) to (3). 

(c) "Debt service" means the amount payable in any biennium of principal, premium, if any, and interest on appropriation bonds. 

(d) "Environment and natural resources trust fund" or "trust fund" means the fund established under the Minnesota Constitution, article XI, section 14, and governed by that section and chapter 116P. 

Subd. 2.Authorization to issue appropriation bonds; accounts. 
(a) Subject to the limitations of this subdivision, the commissioner may sell and issue appropriation bonds of the state under this section for public purposes and in amounts as provided by law. This authorization meets the public purposes established by the Minnesota Constitution, article XI, section 14, and chapter 116P and shall be a supplement to the traditional sources of funding for environment and natural resources activities. 

(b) The special appropriation trust fund bond proceeds fund is established in the state treasury. Proceeds of the appropriation bonds issued and sold must be credited to the special appropriation trust fund bond proceeds fund. A bond payments account is established in the special appropriation trust fund bond proceeds fund. All income from investment of the bond proceeds, as estimated by the commissioner, must be deposited into the account and is appropriated to the commissioner for the payment of principal and interest on the appropriation bonds. 

(c) Appropriation bonds may be issued in one or more issues or series on the terms and conditions the commissioner determines to be in the best interests of the state, but the term on any series of appropriation bonds may not exceed 20 years. The appropriation bonds of each issue and series thereof shall be dated and bear interest, and may be includable in or excludable from the gross income of the owners for federal income tax purposes. 

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

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

(f) The appropriation bonds are not subject to chapter 16C. 

Subd. 3.Form; procedure. 
(a) Appropriation bonds may be issued in the form of bonds, notes, or other similar instruments, and in the manner provided in section 16A.672. In the event that any provision of section 16A.672 conflicts with this section, this section shall control. 

(b) Every appropriation bond shall include a conspicuous statement of the limitation established in subdivision 6. 

(c) Appropriation bonds may be sold at either public or private sale upon such terms as the commissioner shall determine are not inconsistent with this section and may be sold at any price or percentage of par value. Any bid received may be rejected. 

(d) Appropriation bonds must bear interest at a fixed or variable rate. 

(e) Notwithstanding any other law, appropriation bonds issued under this section shall be fully negotiable. 

Subd. 4.Refunding bonds. 
The commissioner may issue appropriation bonds for the purpose of refunding any appropriation bonds then outstanding, including the payment of any redemption premiums on the bonds, any interest accrued or to accrue to the redemption date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of the commissioner, be applied to the purchase or payment at maturity of the appropriation bonds to be refunded, to the redemption of the outstanding appropriation bonds on any redemption date, or to pay interest on the refunding bonds and may, pending application, be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be invested and reinvested in obligations that are authorized investments under section 11A.24. The income earned or realized on the investment may also be applied to the payment of the appropriation bonds to be refunded or interest or premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the proceeds and any investment income may be returned to the trust fund or, if applicable, the special appropriation trust fund bond proceeds fund for use in any lawful manner. All refunding bonds issued under this subdivision must be prepared, executed, delivered, and secured by appropriations in the same manner as the appropriation bonds to be refunded. 

Subd. 5.Appropriation bonds as legal investments. 
Any of the following entities may legally invest any sinking funds, money, or other funds belonging to them or under their control in any appropriation bonds issued under this section: 

(1) the state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies; 

(2) banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations, and other persons carrying on a banking or insurance business; and 

(3) personal representatives, guardians, trustees, and other fiduciaries. 

Subd. 6.No full faith and credit; state not required to make appropriations. 
The appropriation bonds are not public debt of the state, and the full faith, credit, and taxing powers of the state are not pledged to the payment of the appropriation bonds or to any payment that the state agrees to make under this section. Appropriation bonds shall not be obligations paid directly, in whole or in part, from a tax of statewide application on any class of property, income, transaction, or privilege. Appropriation bonds shall be payable in each fiscal year only from amounts that the legislature may appropriate for debt service for any fiscal year, provided that nothing in this section shall be construed to require the state to appropriate money sufficient to make debt service payments with respect to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which the legislature shall not have appropriated amounts sufficient for debt service, or (2) the date of final payment of the principal of and interest on the appropriation bonds. 

Subd. 7.Appropriation for debt service and other purposes. 
Notwithstanding section 116P.05, subdivision 2, paragraph (b), the amount needed to pay principal and interest on appropriation bonds issued under this section and as authorized by other law is appropriated each fiscal year from legally available amounts in the environment and natural resources trust fund to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account established for such purpose in the special appropriation trust fund bond proceeds fund. Investment income earned on proceeds of the appropriation bonds issued under this section shall be deposited in the bond payments account and is appropriated to the commissioner. 

Subd. 8.Waiver of immunity. 
The waiver of immunity by the state provided for by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary contracts to which the commissioner is a party. 

Repealed Minnesota Session Laws: 19-2357 

Laws 2018, chapter 214, article 6, section 4

	Sec. 4. SPECIAL APPROPRIATION TRUST FUND BONDS; AUTHORIZATION; APPROPRIATIONS. 	
Subdivision 1.Appropriations; general. 
The sums shown in the column under "Appropriations" are appropriated from the special appropriation trust fund bond proceeds fund to the state agencies or officials indicated, to be spent for public purposes. Money appropriated in this section must be spent as authorized by the Minnesota Constitution, article XI, section 14, Minnesota Statutes, section 16A.969, and unless otherwise specified, as authorized by and subject to the requirements of Minnesota Statutes, chapter 116P. Unless otherwise specified, money appropriated in this section is available until June 30, 2022. Money remaining from an appropriation for a project that is completed or abandoned cancels to the bond payments account established for such purpose in the special appropriation trust fund bond proceeds fund, or if not needed for debt service, to the environment and natural resources trust fund. 

Subd. 2.Legislative findings; appropriations supplement other sources of funding for projects. 
The legislature finds that the appropriations in this section are consistent with the requirement in Minnesota Statutes, section 116P.03, that expenditures of money from the environment and natural resources trust fund are for public purposes that supplement traditional sources of money to pay for expenditures authorized by Minnesota Statutes, section 116P.08, subdivision 1. Further, the legislature finds that notwithstanding any limitation on use of trust fund money in Minnesota Statutes, chapter 116P, the appropriations in this section are for a public purpose and supplement other sources of money to help pay for projects that are consistent with the purposes of the trust fund. 

Subd. 3.Bond sale authorization. 
To provide the money appropriated in this section, and to pay debt service including capitalized interest, costs of issuance, costs of credit enhancement, or make payments under other agreements entered into under Minnesota Statutes, section 16A.969, the commissioner of management and budget shall sell and issue up to $98,000,000, net of costs of issuance, of special appropriation trust fund bonds, in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, section 16A.969. 

Subd. 4.Management and budget; bond sale expenses; annual debt service. 
Up to $2,940,000 is appropriated in fiscal year 2019 and up to $7,840,000 is appropriated each fiscal year beginning in fiscal year 2020 and through fiscal year 2039, from the environment and natural resources trust fund to the commissioner of management and budget to pay principal and interest on appropriation bonds issued under this section, as provided in Minnesota Statutes, section 16A.969, subdivision 7. 

	Subd. 5.Natural Resources 					

To the commissioner of natural resources for the purposes specified in this section. 

	(1) Natural Resources Asset Preservation				3,419,000	

For the renovation of state-owned facilities and recreational assets within units of the outdoor recreation system classified under Minnesota Statutes, section 86A.05, operated by the commissioner of natural resources to be spent in accordance with Minnesota Statutes, section 84.946. Notwithstanding Minnesota Statutes, section 84.946, the commissioner may use this appropriation to replace buildings if, considering the embedded energy in the building, that is the most energy-efficient and carbon-reducing method of renovation. 

	(2) Elk River - Lake Orono				1,500,000	

For a grant to the city of Elk River to dredge Lake Orono. 

	(3) South St. Paul - Seidl's Lake				781,000	

For a grant to the city of South St. Paul for capital improvements to improve the water quality of Seidl's Lake. The capital improvements include design, engineering, construction, and equipping of a storm water lift station to discharge excess storm water into the city of South St. Paul's storm sewer system to minimize the fluctuating water levels of the lake. This project would be implemented jointly by the cities of South St. Paul, Inver Grove Heights, and West St. Paul. 

	Subd. 6.Pollution Control Agency 					

To the Pollution Control Agency for the purposes specified in this section. 

	(1) Anoka County-Waste Disposal Engineering Closed Landfill				6,000,000	

Notwithstanding Minnesota Statutes, section 116P.08, subdivision 2, to design and construct remedial systems, including cleanup and removal of a leaking hazardous waste pit and protection of groundwater, at the Waste Disposal Engineering site in Anoka County in accordance with the closed landfill program under Minnesota Statutes, sections 115B.39 to 115B.42. 

	(2) Lake Redwood Reclamation				7,300,000	

For a grant to the Redwood-Cottonwood Rivers Control Area, a joint powers entity, to predesign, design, construct, and equip the reservoir reclamation and enhancement of the 66-acre Lake Redwood Reservoir, to remove approximately 650,000 cubic yards of sediment and increase its depth from approximately 2.8 feet to 20 feet in order to secure renewable energy capacity of the hydroelectric dam which is impeded by lack of water capacity, reduce the flow of pollutants to the Minnesota River, and increase fish habitat and enhance recreational opportunities. 

	Subd. 7.Board of Water and Soil Resources 					

To the Board of Water and Soil Resources for the purposes specified in this section. 

	Reinvest in Minnesota (RIM) Reserve Program				10,000,000	

(a) To acquire conservation easements from landowners to preserve, restore, create, and enhance wetlands and associated uplands of prairie and grasslands, and restore and enhance rivers and streams, riparian lands, and associated 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. 

(b) 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. 

(c) 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. 

(d) Of this appropriation, up to five percent may be used for restoration, rehabilitation, and enhancement; and no more than $1,000,000 may be used to acquire working lands easements. 

	Subd. 8.Public Facilities Authority 					

Notwithstanding Minnesota Statutes, section 116P.08, subdivision 2, to the Public Facilities Authority for the purposes specified in this section. 

	(1) State Match for Federal Grants				6,000,000	

To match federal grants for the clean water revolving fund for wastewater treatment under Minnesota Statutes, section 446A.07. This appropriation must be used for qualified capital projects. 

	(2) Water Infrastructure Funding Program				14,652,000	

For grants to eligible municipalities under the wastewater infrastructure funding program under Minnesota Statutes, section 446A.072, for wastewater projects listed on the Pollution Control Agency's project priority list in the fundable range under the clean water revolving fund program. 

	(3) Point Source Implementation Grants Program				38,348,000	

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. 

	Subd. 9.Metropolitan Council 					

To the Metropolitan Council for the purposes specified in this section. 

	Metropolitan Regional Parks and Trails Capital Improvements				10,000,000	

For the cost of improvements and betterments of a capital nature and acquisition by the council and local government units 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.