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; modifying previous appropriations; establishing new programs and 
1.5 	modifying existing programs; authorizing the sale and issuance of state bonds; 
1.6 	appropriating money;amending Minnesota Statutes 2016, sections 16A.967; 
1.7 	84.946, subdivision 2; 85.34, subdivision 1; 363A.36; 363A.44, subdivision 1; 
1.8 	446A.072; 446A.073; 446A.081, subdivision 9; 446A.12, subdivision 1; 462A.37, 
1.9 	subdivisions 1, 2, 2a, 2b, 5, by adding a subdivision; Laws 2014, chapter 294, 
1.10 	article 1, section 17, subdivision 12; Laws 2015, First Special Session chapter 5, 
1.11 	article 1, section 10, subdivision 7; proposing coding for new law in Minnesota 
1.12 	Statutes, chapter 219; repealing Minnesota Statutes 2016, section 123A.446.
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 for a capital program or project may be 
1.24 	used to pay state agency staff costs that are attributed directly to the capital program or 
1.25 	project in accordance with accounting policies adopted by the commissioner of management 
1.26 	and budget. Unless otherwise specified, the appropriations in this act are available until the 
2.1 	project is completed or abandoned subject to Minnesota Statutes, section 16A.642. Unless 
2.2 	otherwise specified in this act, money appropriated in this act for activities under Minnesota 
2.3 	Statutes, sections 16B.307, 84.946, and 135A.046, should not be used for projects that can 
2.4 	be financed within a reasonable time frame under Minnesota Statutes, section 16B.322 or 
2.5 	16C.144.

2.6						APPROPRIATIONS

2.7	Sec. 2. UNIVERSITY OF MINNESOTA

2.8	Subdivision 1.Total Appropriation
 			$
	148,234,000
	
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)
 				50,000,000
	
2.14 	To be spent in accordance with Minnesota 
2.15 	Statutes, section 135A.046.

2.16
2.17	Subd. 3.Twin Cities - Health Sciences Education 
Facility
 				66,667,000
	
2.18 	To demolish obsolete health sciences facilities 
2.19 	and to design, renovate, furnish, equip, and 
2.20 	construct a health science education facility 
2.21 	on the Twin Cities campus to meet the needs 
2.22 	of the Medical School and the Academic 
2.23 	Health Center.

2.24
2.25	Subd. 4.Duluth - Chemical Sciences and 
Advanced Materials Science Building
 				27,167,000
	
2.26 	To design, construct, furnish, and equip a new 
2.27 	laboratory building on the Duluth campus, 
2.28 	including classrooms and research and 
2.29 	undergraduate instructional laboratories.

2.30
2.31	Subd. 5.Twin Cities - Plant Growth Research 
Facility
 				4,400,000
	
2.32 	To demolish the existing biological sciences 
2.33 	greenhouse and to predesign, design, 
2.34 	construct, furnish, and equip a greenhouse to 
3.1 	support learning and research on the St. Paul 
3.2 	campus.

3.3	Subd. 6.University Share
 					
3.4 	Except for the appropriation for HEAPR, the 
3.5 	appropriations in this section are intended to 
3.6 	cover approximately two-thirds of the cost of 
3.7 	each project. The remaining costs must be paid 
3.8 	from university sources.

3.9	Subd. 7.Unspent Appropriations
 					
3.10 	Upon substantial completion of a project 
3.11 	authorized in this section and after written 
3.12 	notice to the commissioner of management 
3.13 	and budget, the Board of Regents must use 
3.14 	any money remaining in the appropriation for 
3.15 	that project for HEAPR under Minnesota 
3.16 	Statutes, section 135A.046. The Board of 
3.17 	Regents must report by February 1 of each 
3.18 	even-numbered year to the chairs of the house 
3.19 	of representatives and senate committees with 
3.20 	jurisdiction over capital investment and higher 
3.21 	education finance, and to the chairs of the 
3.22 	house of representatives Ways and Means 
3.23 	Committee and the senate Finance Committee, 
3.24 	on how the remaining money has been 
3.25 	allocated or spent.

3.26
3.27	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

3.28	Subdivision 1.Total Appropriation
 			$
	164,342,000
	
3.29 	To the Board of Trustees of the Minnesota 
3.30 	State Colleges and Universities for the 
3.31 	purposes specified in this section.

3.32
3.33	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				52,149,000
	
4.1 	To be spent in accordance with Minnesota 
4.2 	Statutes, section 135A.046.

4.3	Subd. 3.Bemidji State University
 				18,896,000
	
4.4 	To demolish Hagg-Sauer Hall and construct, 
4.5 	furnish, and equip its replacement, the 
4.6 	Academic Learning Center; and to renovate 
4.7 	and renew, furnish, and equip Bensen Hall, 
4.8 	Sattgast Hall, Bangsberg Hall, and A.C. Clark 
4.9 	Library.

4.10	Subd. 4.Hibbing Community College
 				9,958,000
	
4.11 	To demolish Building G and connecting links 
4.12 	or portions thereof, and to construct, renovate, 
4.13 	furnish, and equip buildings, links, and entry 
4.14 	spaces on the campus.

4.15
4.16	Subd. 5.Minnesota State Community and 
Technical College

4.17	(a) Fergus Falls Campus
				978,000
	
4.18 	To design, renovate, furnish, and equip a new 
4.19 	Center for Student and Workforce Success 
4.20 	(CSWS) that integrates the Regional 
4.21 	Workforce Center. The board must enter into 
4.22 	a lease agreement with the commissioner of 
4.23 	employment and economic development, or 
4.24 	partners of the commissioner, for use of the 
4.25 	workforce center subject to Minnesota 
4.26 	Statutes, section 16A.695. The board must use 
4.27 	nonstate money for the remainder of the cost 
4.28 	of the renovation.

4.29	(b) Wadena Campus
				820,000
	
4.30 	To design, renovate, furnish, and equip the 
4.31 	relocation of the current library to 
4.32 	underutilized space and convert the vacated 
4.33 	space into a centralized student services center.

4.34	Subd. 6.Minnesota State University, Mankato
 				6,525,000
	
5.1 	To complete design, renovate, furnish, and 
5.2 	equip space in Armstrong, Morris, Wissink, 
5.3 	and Wiecking Halls to repurpose space being 
5.4 	vacated by programs moving into the new 
5.5 	Clinical Sciences Building and complete 
5.6 	installation of a solar array on the new Clinical 
5.7 	Sciences Building (Phase 1).

5.8
5.9	Subd. 7.Northland Community and Technical 
College, East Grand Forks
 				826,000
	
5.10 	To design, renovate, furnish, and equip science 
5.11 	and radiological lab space on the East Grand 
5.12 	Forks campus.

5.13
5.14	Subd. 8.Rochester Community and Technical 
College
 				21,712,000
	
5.15 	To complete design, demolish Memorial and 
5.16 	Plaza Halls, construct, equip, and furnish an 
5.17 	academic building expansion, and renovate, 
5.18 	equip, and furnish replacement space for 
5.19 	classrooms, labs, and office spaces.

5.20	Subd. 9.South Central College, North Mankato
 				8,600,000
	
5.21 	To design, renovate, renew, furnish, and equip 
5.22 	laboratory, classroom, and office spaces on 
5.23 	the North Mankato campus.

5.24	Subd. 10.St. Cloud State University
 				18,572,000
	
5.25 	To construct, renovate, furnish, and equip 
5.26 	Eastman Hall for the relocation of 
5.27 	consolidated student health services and 
5.28 	academic programs.

5.29
5.30	Subd. 11.Winona State University, Education 
Village, Phase 2
 				25,306,000
	
5.31 	To complete design, construct, renovate, 
5.32 	furnish, and equip Phase 2 of the Education 
5.33 	Village project, including the renovation of 
5.34 	Cathedral and Wabasha Halls and Wabasha 
6.1 	Rec, and remove obsolete portions of Wabasha 
6.2 	Rec and accomplishing related site work.

6.3	Subd. 12.Debt Service
 					
6.4 	(a) Except as provided in paragraph (b), the 
6.5 	Board of Trustees shall pay the debt service 
6.6 	on one-third of the principal amount of state 
6.7 	bonds sold to finance projects authorized by 
6.8 	this section. After each sale of general 
6.9 	obligation bonds, the commissioner of 
6.10 	management and budget shall notify the board 
6.11 	of the amounts assessed for each year for the 
6.12 	life of the bonds.
6.13 	(b) The board need not pay debt service on 
6.14 	bonds sold to finance HEAPR. Where a 
6.15 	nonstate match is required, the debt service is 
6.16 	due on a principal amount equal to one-third 
6.17 	of the total project cost, less the match 
6.18 	committed before the bonds are sold.
6.19 	(c) The commissioner of management and 
6.20 	budget shall reduce the board's assessment 
6.21 	each year by one-third of the net income from 
6.22 	investment of general obligation bond 
6.23 	proceeds in proportion to the amount of 
6.24 	principal and interest otherwise required to be 
6.25 	paid by the board. The board shall pay its 
6.26 	resulting net assessment to the commissioner 
6.27 	of management and budget by December 1 
6.28 	each year. If the board fails to make a payment 
6.29 	when due, the commissioner of management 
6.30 	and budget shall reduce allotments for 
6.31 	appropriations from the general fund otherwise 
6.32 	available to the board and apply the amount 
6.33 	of the reduction to cover the missed debt 
6.34 	service payment. The commissioner of 
6.35 	management and budget shall credit the 
7.1 	payments received from the board to the bond 
7.2 	debt service account in the state bond fund 
7.3 	each December 1 before money is transferred 
7.4 	from the general fund under Minnesota 
7.5 	Statutes, section 16A.641, subdivision 10.

7.6	Subd. 13.Unspent Appropriations
 					
7.7 	(a) Upon substantial completion of a project 
7.8 	authorized in this section and after written 
7.9 	notice to the commissioner of management 
7.10 	and budget, the board must use any money 
7.11 	remaining in the appropriation for that project 
7.12 	for HEAPR under Minnesota Statutes, section 
7.13 	135A.046. The Board of Trustees must report 
7.14 	by February 1 of each even-numbered year to 
7.15 	the chairs of the house of representatives and 
7.16 	senate committees with jurisdiction over 
7.17 	capital investment and higher education 
7.18 	finance, and to the chairs of the house of 
7.19 	representatives Ways and Means Committee 
7.20 	and the senate Finance Committee, on how 
7.21 	the remaining money has been allocated or 
7.22 	spent.
7.23 	(b) The unspent portion of an appropriation 
7.24 	for a project in this section that is complete is 
7.25 	available for HEAPR under this subdivision, 
7.26 	at the same campus as the project for which 
7.27 	the original appropriation was made and the 
7.28 	debt service requirement under this section is 
7.29 	reduced accordingly. Minnesota Statutes, 
7.30 	section 16A.642, applies from the date of the 
7.31 	original appropriation to the unspent amount 
7.32 	transferred.

7.33	Sec. 4. EDUCATION

7.34	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
8.1 	To the commissioner of education for the 
8.2 	purposes specified in this section.

8.3	Subd. 2.Library Construction Grants
 				2,000,000
	
8.4 	For library construction grants under 
8.5 	Minnesota Statutes, section 134.45.

8.6
8.7	Subd. 3.Olmsted County - Dyslexia Institute of 
Minnesota
 				1,500,000
	
8.8 	For a grant to Olmsted County to acquire land 
8.9 	for, and to predesign, design, construct, 
8.10 	furnish, and equip a facility in Olmsted County 
8.11 	to support the local, regional, and national 
8.12 	literacy work of the Dyslexia Institute of 
8.13 	Minnesota, subject to Minnesota Statutes, 
8.14 	section 16A.695. This appropriation is not 
8.15 	available until the commissioner of 
8.16 	management and budget determines that an 
8.17 	amount sufficient to complete the project is 
8.18 	committed from nonstate sources.

8.19	Subd. 4.Grand Rapids - Myles Reif Center
 				500,000
	
8.20 	From the general fund for a grant to 
8.21 	Independent School District No. 318, Grand 
8.22 	Rapids, to cover cost overruns for the Myles 
8.23 	Reif Center for the Performing Arts project in 
8.24 	Grand Rapids. This appropriation is added to 
8.25 	and is for the same purposes as the project in 
8.26 	Laws 2014, chapter 294, article 1, section 21, 
8.27 	subdivision 8. This appropriation does not 
8.28 	require a nonstate contribution.

8.29	Sec. 5. MINNESOTA STATE ACADEMIES

8.30	Subdivision 1.Total Appropriation
 			$
	2,050,000
	
8.31 	To the commissioner of administration for the 
8.32 	purposes specified in this section.

8.33	Subd. 2.Asset Preservation
 				2,000,000
	
9.1 	For capital asset preservation improvements 
9.2 	and betterments on both campuses of the 
9.3 	Minnesota State Academies, to be spent in 
9.4 	accordance with Minnesota Statutes, section 
9.5 	16B.307.

9.6	Subd. 3.Security Corridor
 				50,000
	
9.7 	For predesign for a safety corridor on the 
9.8 	Minnesota State Academy for the Deaf 
9.9 	campus.

9.10	Sec. 6. NATURAL RESOURCES

9.11	Subdivision 1.Total Appropriation
 			$
	79,756,000
	
9.12 	(a) To the commissioner of natural resources 
9.13 	for the purposes specified in this section.
9.14 	(b) The appropriations in this section are 
9.15 	subject to the requirements of the natural 
9.16 	resources capital improvement program under 
9.17 	Minnesota Statutes, section 86A.12, unless 
9.18 	this section or the statutes referred to in this 
9.19 	section provide more specific standards, 
9.20 	criteria, or priorities for projects than 
9.21 	Minnesota Statutes, section 86A.12.

9.22	Subd. 2.Natural Resources Asset Preservation
 				32,966,000
	
9.23 	For the renovation of state-owned facilities 
9.24 	and recreational assets operated by the 
9.25 	commissioner of natural resources to be spent 
9.26 	in accordance with Minnesota Statutes, section 
9.27 	84.946. Notwithstanding Minnesota Statutes, 
9.28 	section 84.946: (1) the commissioner may use 
9.29 	this appropriation to replace buildings if, 
9.30 	considering the embedded energy in the 
9.31 	building, that is the most energy-efficient and 
9.32 	carbon-reducing method of renovation; and 
9.33 	(2) this appropriation may be used for projects 
10.1 	to remove life safety hazards such as building 
10.2 	code violations or structural defects.

10.3	Subd. 3.Flood Hazard Mitigation
 				20,000,000
	
10.4 	(a) For the state share of flood hazard 
10.5 	mitigation grants for publicly owned capital 
10.6 	improvements to prevent or alleviate flood 
10.7 	damage under Minnesota Statutes, section 
10.8 	103F.161.
10.9 	(b) Levee projects, to the extent practical, shall 
10.10 	meet the state standard of three feet above the 
10.11 	100-year flood elevation.
10.12 	(c) Project priorities shall be determined by 
10.13 	the commissioner as appropriate and based on 
10.14 	need.
10.15 	(d) This appropriation includes $1,700,000 for 
10.16 	the Cedar River Watershed District, $750,000 
10.17 	for the city of Browns Valley project, and 
10.18 	$1,800,000 for the city of Ortonville project.
10.19 	(e) For any project listed in this subdivision 
10.20 	that the commissioner determines is not ready 
10.21 	to proceed or does not expend all the money 
10.22 	allocated to it, the commissioner may allocate 
10.23 	that project's money to a project on the 
10.24 	commissioner's priority list.
10.25 	(f) To the extent that the cost of a project 
10.26 	exceeds two percent of the median household 
10.27 	income in a municipality or township 
10.28 	multiplied by the number of households in the 
10.29 	municipality or township, this appropriation 
10.30 	is also for the local share of the project.

10.31	Subd. 4.Dam Renovation, Repair, Removal
 				9,000,000
	
10.32 	(a) For design, engineering, and construction 
10.33 	to repair, reconstruct, or remove dams and 
11.1 	respond to dam safety emergencies. The 
11.2 	commissioner shall determine project priorities 
11.3 	as appropriate under Minnesota Statutes, 
11.4 	sections 103G.511 and 103G.515. Of this 
11.5 	appropriation:
11.6 	(1) $500,000 is for emergencies on 
11.7 	state-owned dams;
11.8 	(2) $3,600,000 is for a grant to the city of 
11.9 	Lanesboro for repair of the Lanesboro dam 
11.10 	and notwithstanding the match requirements 
11.11 	in Minnesota Statutes, section 103G.511, does 
11.12 	not require a nonstate contribution. This 
11.13 	includes funding for repairs of the hydropower 
11.14 	system;
11.15 	(3) $2,500,000 is for repairs of the Lake 
11.16 	Bronson dam;
11.17 	(4) $500,000 is for a grant to the city of 
11.18 	Pelican Rapids for engineering work for the 
11.19 	Pelican Rapids dam;
11.20 	(5) $200,000 is for a grant to the city of Pine 
11.21 	River for engineering work on the Norway 
11.22 	Lake dam;
11.23 	(6) $200,000 is for a grant to Yellow Medicine 
11.24 	County for the Canby R-6 impoundment dam;
11.25 	(7) $100,000 is for a grant to St. Louis County 
11.26 	for the Little Stone Lake dam; and
11.27 	(8) $1,400,000 is for state dams at Brawner, 
11.28 	West Leaf Lake, Collinwood, Grindstone 
11.29 	River, and Sullivan.
11.30 	(b) If the commissioner determines that a 
11.31 	project is not ready to proceed, this 
11.32 	appropriation may be used for other projects 
11.33 	on the commissioner's priority list.

12.1	Subd. 5.Reforestation and Stand Improvement
 				2,000,000
	
12.2 	To provide for reforestation and stand 
12.3 	improvement on state forest lands to meet the 
12.4 	reforestation requirements of Minnesota 
12.5 	Statutes, section 89.002, subdivision 2, 
12.6 	including purchasing native seeds and native 
12.7 	seedlings, planting, seeding, site preparation, 
12.8 	and protection on state lands administered by 
12.9 	the commissioner.

12.10
12.11	Subd. 6.State Trail and Recreation Area 
Development
 				11,490,000
	
12.12 	(a) $2,000,000 is for acquisition and 
12.13 	development of the Gitchi-Gami State Trail, 
12.14 	from Grand Marais to Cascade State Park, and 
12.15 	through the town of Tofte.
12.16 	(b) $2,590,000 is for the Glacial Lakes Trail, 
12.17 	to complete an approximately 6-1/4 mile trail 
12.18 	connection between New London and Sibley 
12.19 	State Park, and for repair of the bicycle trail 
12.20 	in Sibley State Park.
12.21 	(c) $3,300,000 is to design, develop, and 
12.22 	complete the Heartland State Trail from 
12.23 	Detroit Lakes to Frazee and, to the extent there 
12.24 	is sufficient money, for work on the spur from 
12.25 	Park Rapids to Itasca State Park.
12.26 	(d) $3,600,000 is for acquisition and 
12.27 	development in the Cuyuna Country State 
12.28 	Recreation Area, including the Cuyuna 
12.29 	Mountain Bike System.

12.30	Subd. 7.Champlin - Mill Pond
 				3,300,000
	
12.31 	For a grant to the city of Champlin to dredge 
12.32 	and remove sediment and for other capital 
12.33 	improvements of the Champlin Mill Pond 
13.1 	necessary to improve water quality, restore 
13.2 	fish habitat, and provide other public benefits.

13.3
13.4	Subd. 8.Lake County - Prospectors ATV Trail 
System
 				1,000,000
	
13.5 	For a grant to Lake County for construction, 
13.6 	including bridges, of the Prospectors ATV 
13.7 	Trail System linking the communities of Ely, 
13.8 	Babbitt, Embarrass, and Tower; Bear Head 
13.9 	Lake and Lake Vermilion-Soudan 
13.10 	Underground Mine State Parks; the Taconite 
13.11 	State Trail; and the Lake County Regional 
13.12 	ATV Trail System. This appropriation is not 
13.13 	available until the commissioner of 
13.14 	management and budget determines that an 
13.15 	equal amount is committed from other sources.

13.16	Subd. 9.Unspent Appropriations
 					
13.17 	The unspent portion of an appropriation for a 
13.18 	project in this section that is complete, upon 
13.19 	written notice to the commissioner of 
13.20 	management and budget, is available for asset 
13.21 	preservation under Minnesota Statutes, section 
13.22 	84.946. Minnesota Statutes, section 16A.642, 
13.23 	applies from the date of the original 
13.24 	appropriation to the unspent amount 
13.25 	transferred.

13.26	Sec. 7. POLLUTION CONTROL AGENCY

13.27	Subdivision 1.Total Appropriation
 			$
	33,850,000
	
13.28 	To the Pollution Control Agency for the 
13.29 	purposes specified in this section.

13.30	Subd. 2.St. Louis River Cleanup
 				25,400,000
	
13.31 	To design and implement contaminated 
13.32 	sediment management actions identified in 
13.33 	the St. Louis River remedial action plan to 
14.1 	restore water quality in the St. Louis River 
14.2 	Area of Concern.

14.3	Subd. 3.Closed Landfill Cleanup
 				650,000
	
14.4 	To design and construct remedial systems and 
14.5 	acquire land at closed landfills throughout the 
14.6 	state in accordance with the closed landfill 
14.7 	program under Minnesota Statutes, sections 
14.8 	115B.39 to 115B.42. The agency must follow 
14.9 	the agency priorities, which includes a 
14.10 	construction project at the waste disposal 
14.11 	engineering (WDE) site in Anoka County.

14.12
14.13
14.14	Subd. 4.Redwood-Cottonwood Rivers Joint 
Powers - Lake Redwood Reclamation and 
Enhancement Project
 				7,800,000
	
14.15 	For a grant to the Redwood-Cottonwood 
14.16 	Rivers control area, a joint powers entity, to 
14.17 	predesign, design, construct, and equip the 
14.18 	reservoir reclamation and enhancement of the 
14.19 	66-acre Lake Redwood Reservoir, to remove 
14.20 	approximately 650,000 cubic yards of 
14.21 	sediment and increase its depth from 
14.22 	approximately 2.8 feet to approximately 20 
14.23 	feet in order to secure renewable energy 
14.24 	capacity of the hydroelectric dam which is 
14.25 	impeded by lack of water capacity, reduce the 
14.26 	flow of pollutants to the Minnesota River, and 
14.27 	increase fish habitat and enhance recreational 
14.28 	opportunities.

14.29
14.30	Sec. 8. BOARD OF WATER AND SOIL 
RESOURCES

14.31	Subdivision 1.Total Appropriation
 			$
	35,000,000
	
14.32 	To the Board of Water and Soil Resources for 
14.33 	the purposes specified in this section.

14.34
14.35	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				30,000,000
	
15.1 	(a) To acquire conservation easements from 
15.2 	landowners to preserve, restore, create, and 
15.3 	enhance wetlands and associated uplands of 
15.4 	prairie and grasslands, and restore and enhance 
15.5 	rivers and streams, riparian lands, and 
15.6 	associated uplands of prairie and grasslands 
15.7 	in order to protect soil and water quality, 
15.8 	support fish and wildlife habitat, reduce flood 
15.9 	damage, and provide other public benefits. 
15.10 	The provisions of Minnesota Statutes, section 
15.11 	103F.515, apply to this program.
15.12 	(b) The board shall give priority to leveraging 
15.13 	federal money by enrolling targeted new lands 
15.14 	or enrolling environmentally sensitive lands 
15.15 	that have expiring federal conservation 
15.16 	agreements.
15.17 	(c) The board is authorized to enter into new 
15.18 	agreements and amend past agreements with 
15.19 	landowners as required by Minnesota Statutes, 
15.20 	section 103F.515, subdivision 5, to allow for 
15.21 	restoration. Of this appropriation, up to five 
15.22 	percent may be used for restoration and 
15.23 	enhancement.

15.24
15.25	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				5,000,000
	
15.26 	To acquire land or permanent easements and 
15.27 	to restore, create, enhance, and preserve 
15.28 	wetlands to replace those wetlands drained or 
15.29 	filled as a result of the repair, reconstruction, 
15.30 	replacement, or rehabilitation of existing 
15.31 	public roads as required by Minnesota 
15.32 	Statutes, section 103G.222, subdivision 1, 
15.33 	paragraphs (l) and (m). The board may vary 
15.34 	the priority order of Minnesota Statutes, 
15.35 	section 103G.222, subdivision 3, paragraph 
16.1 	(a), to implement an in-lieu fee agreement 
16.2 	approved by the U.S. Army Corps of 
16.3 	Engineers under section 404 of the Clean 
16.4 	Water Act. The purchase price paid for 
16.5 	acquisition of land or perpetual easement must 
16.6 	be a fair market value as determined by the 
16.7 	board. The board may enter into agreements 
16.8 	with the federal government, other state 
16.9 	agencies, political subdivisions, nonprofit 
16.10 	organizations, fee title owners, or other 
16.11 	qualified private entities to acquire wetland 
16.12 	replacement credits in accordance with 
16.13 	Minnesota Rules, chapter 8420.

16.14	Sec. 9. AGRICULTURE

16.15	Subdivision 1.Total Appropriation
 			$
	2,824,000
	
16.16 	To the commissioner of agriculture from the 
16.17 	general fund for the purposes specified in this 
16.18 	section.

16.19	Subd. 2.Laboratory Capital Equipment
 				2,218,000
	
16.20 	For capital equipment and instruments for the 
16.21 	agriculture laboratory.

16.22	Subd. 3.AURI
 				606,000
	
16.23 	For a grant to the Agricultural Utilization 
16.24 	Research Institute (AURI) for construction of 
16.25 	a development kitchen, sensory lab, and safety 
16.26 	and security upgrades at AURI's Marshall 
16.27 	facility and for updated equipment and 
16.28 	renovations at the Waseca facility.

16.29
16.30	Sec. 10. MINNESOTA ZOOLOGICAL 
GARDEN

16.31	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
16.32 	To the Minnesota Zoological Garden Board 
16.33 	for the purposes specified in this section.

17.1	Subd. 2.Asset Preservation
 				4,000,000
	
17.2 	For capital asset preservation improvements 
17.3 	and betterments to infrastructure and exhibits 
17.4 	at the Minnesota Zoo, to be spent in 
17.5 	accordance with Minnesota Statutes, section 
17.6 	16B.307. Notwithstanding the specified uses 
17.7 	of money under Minnesota Statutes, section 
17.8 	16B.307, the board may use this appropriation 
17.9 	to replace buildings that are in poor condition, 
17.10 	outdated, and no longer support the work of 
17.11 	the Minnesota Zoo and to construct and 
17.12 	renovate trails and roads on the Minnesota 
17.13 	Zoo site.

17.14	Sec. 11. ADMINISTRATION

17.15	Subdivision 1.Total Appropriation
 			$
	26,178,000
	
17.16 	To the commissioner of administration for the 
17.17 	purposes specified in this section.

17.18	Subd. 2.Centennial Parking Ramp
 				10,878,000
	
17.19 	(a) To complete design and for structural 
17.20 	repairs to the Centennial parking ramp, 
17.21 	including removal of the top deck green space 
17.22 	to provide additional parking capacity, 
17.23 	repairing damaged post-tension cables, and 
17.24 	installation of a deck surface protection 
17.25 	coating.
17.26 	(b) Any unexpended amount of this 
17.27 	appropriation after completing the project in 
17.28 	paragraph (a) may be used to design and 
17.29 	construct a storm water retention basin 
17.30 	adjacent to the Centennial parking ramp, if the 
17.31 	commissioner of administration determines 
17.32 	that the basin is feasible.

17.33
17.34	Subd. 3.Capital Asset Preservation and 
Replacement Account
 				2,500,000
	
18.1 	To be spent in accordance with Minnesota 
18.2 	Statutes, section 16A.632.

18.3
18.4	Subd. 4.Capitol Complex Monuments and 
Memorials
 				350,000
	
18.5 	To design and complete critical repairs to the 
18.6 	Peace Officers and Roy Wilkins Memorials 
18.7 	located on the Capitol complex.

18.8
18.9	Subd. 5.Capitol Complex - Physical Security 
Upgrades
 				10,500,000
	
18.10 	For the design, construction, and equipping 
18.11 	required to upgrade the physical security 
18.12 	elements and systems for one or more of the 
18.13 	buildings listed below, their attached tunnel 
18.14 	systems and surrounding grounds, and parking 
18.15 	facilities as identified in the 2014 Minnesota 
18.16 	State Capitol Complex Physical Security Study 
18.17 	conducted by Miller Dunwiddie Architecture. 
18.18 	Work includes but is not limited to the 
18.19 	installation of bollards, blast protection, 
18.20 	infrastructure security screen walls, door 
18.21 	access controls, emergency call stations, 
18.22 	security kiosks, locking devices, and traffic 
18.23 	control to the extent these funds allow. This 
18.24 	appropriation is for work associated with one 
18.25 	or more of the following buildings: 
18.26 	Administration, Centennial, Judicial, 
18.27 	Ag/Health Lab, Minnesota History Center, 
18.28 	Minnesota History Center loading dock, 
18.29 	Capitol complex power plant and shops, 
18.30 	Stassen, State Office, and Veterans Service.

18.31	Subd. 6.Granite Falls - Pioneer Public Television
 				1,950,000
	
18.32 	From the general fund to provide an equipment 
18.33 	grant to Pioneer Public Television as part of 
18.34 	the station's construction of a new facility in 
18.35 	Granite Falls. The money may be used to 
19.1 	purchase and install equipment necessary to 
19.2 	the station's operation. This appropriation does 
19.3 	not require a nonstate contribution.

19.4	Sec. 12. MN.IT
 			$
	$1,432,000
	
19.5 	To the commissioner of administration to 
19.6 	predesign, design, construct, renovate, furnish, 
19.7 	and equip existing state data center facilities 
19.8 	at the Bureau of Criminal Apprehension's 
19.9 	Maryland Avenue office building, at the 
19.10 	Centennial Office Building, and at the 
19.11 	Department of Revenue's Stassen Office 
19.12 	Building for the purpose of decommissioning 
19.13 	and repurposing into usable office space.

19.14	Sec. 13. MILITARY AFFAIRS

19.15	Subdivision 1.Total Appropriation
 			$
	2,500,000
	
19.16 	To the adjutant general for the purposes 
19.17 	specified in this section.

19.18	Subd. 2.Asset Preservation
 				2,500,000
	
19.19 	For asset preservation improvements and 
19.20 	betterments of a capital nature at military 
19.21 	affairs facilities statewide, to be spent in 
19.22 	accordance with Minnesota Statutes, section 
19.23 	16B.307.

19.24	Sec. 14. PUBLIC SAFETY

19.25	Subdivision 1.Total Appropriation
 			$
	6,521,000
	
19.26 	To the named official for the purposes 
19.27 	specified in this section.

19.28	Subd. 2.Camp Ripley Training Facility
 				3,521,000
	
19.29 	To the adjutant general to predesign, design, 
19.30 	construct, and equip a joint emergency railroad 
19.31 	and pipeline emergency response training 
20.1 	facility at Camp Ripley. The project includes 
20.2 	construction of stations and capital 
20.3 	infrastructure needed for mock disaster 
20.4 	training, including infrastructure for training 
20.5 	in hazardous materials abatement and site 
20.6 	recovery work.

20.7
20.8	Subd. 3.Minneapolis Emergency Operations 
Training Facility (EOTF) Enhancement
 				3,000,000
	
20.9 	To the commissioner of public safety for a 
20.10 	grant to the city of Minneapolis for the 
20.11 	predesign, design, engineering, and 
20.12 	construction of the expansion of the 
20.13 	Emergency Operation Center and Fire 
20.14 	Training Facility. This appropriation is not 
20.15 	available until the commissioner of 
20.16 	management and budget determines that an 
20.17 	equal amount is committed to the project from 
20.18 	nonstate sources.

20.19	Sec. 15. TRANSPORTATION

20.20	Subdivision 1.Total Appropriation
 			$
	149,849,000
	
20.21 	To the commissioner of transportation for the 
20.22 	purposes specified in this section.

20.23
20.24	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				16,018,000
	
20.25 	From the bond proceeds account in the state 
20.26 	transportation fund to match federal money 
20.27 	and to replace or rehabilitate local deficient 
20.28 	bridges as provided in Minnesota Statutes, 
20.29 	section 174.50.

20.30	Subd. 3.Local Road Improvement Fund Grants
 				41,018,000
	
20.31 	(a) From the bond proceeds account in the 
20.32 	state transportation fund as provided in 
20.33 	Minnesota Statutes, section 174.50, for trunk 
20.34 	highway corridor projects under Minnesota 
21.1 	Statutes, section 174.52, subdivision 2, for 
21.2 	construction and reconstruction of local roads 
21.3 	with statewide or regional significance under 
21.4 	Minnesota Statutes, section 174.52, 
21.5 	subdivision 4, or for grants to counties to assist 
21.6 	in paying the costs of rural road safety capital 
21.7 	improvement projects on county state-aid 
21.8 	highways under Minnesota Statutes, section 
21.9 	174.52, subdivision 4a.
21.10 	(b) Of this amount, $25,000,000 is for a grant 
21.11 	to Hennepin County for design, right-of-way 
21.12 	acquisition, engineering, and construction of 
21.13 	public improvements related to the Interstate 
21.14 	Highway 35W and Lake Street access project 
21.15 	and related improvements within the Interstate 
21.16 	Highway 35W corridor. This appropriation is 
21.17 	not available until the commissioner of 
21.18 	management and budget determines that an 
21.19 	amount sufficient to complete the Interstate 
21.20 	Highway 35W and Lake Street access project 
21.21 	has been committed to the project.

21.22
21.23	Subd. 4.Rail Grade Separation on Crude Oil 
Rail Corridors
 				69,011,000
	
21.24 	(a) To design and construct rail safety projects 
21.25 	at highway-rail grade crossings in accordance 
21.26 	with Minnesota Statutes, section 219.016. Of 
21.27 	this appropriation:
21.28 	(1) $11,987,000 is for a grant to Anoka County 
21.29 	for environmental analysis, design, 
21.30 	engineering, removal of an existing structure, 
21.31 	and construction of a rail grade crossing 
21.32 	separation at Anoka County State-Aid 
21.33 	Highway 78, known as Hanson Boulevard, in 
21.34 	Coon Rapids.
22.1 	(2) $42,262,000 is for a grant to the city of 
22.2 	Moorhead for environmental analysis, design, 
22.3 	engineering, removal of an existing structure, 
22.4 	and construction of a rail grade crossing 
22.5 	separation in the vicinity of 21st Street South; 
22.6 	and
22.7 	(3) $14,762,000 is for a grant to the city of 
22.8 	Red Wing for environmental analysis, design, 
22.9 	engineering, removal of an existing structure, 
22.10 	and construction of a rail grade crossing 
22.11 	separation at Sturgeon Lake Road.
22.12 	(b) Any unspent portion of this appropriation 
22.13 	after completion of any project in this 
22.14 	subdivision may be used for additional grants 
22.15 	in accordance with Minnesota Statutes, section 
22.16 	219.016.

22.17	Subd. 5.Port Development Assistance
 				5,000,000
	
22.18 	For grants under Minnesota Statutes, chapter 
22.19 	457A. Any improvements made with the 
22.20 	proceeds of these grants must be publicly 
22.21 	owned.

22.22
22.23	Subd. 6.Minnesota Valley Regional Rail 
Authority
 				4,000,000
	
22.24 	For a grant to the Minnesota Valley Regional 
22.25 	Rail Authority for the rehabilitation of a 
22.26 	portion of the railroad track between Winthrop 
22.27 	and Hanley Falls. The grant under this 
22.28 	subdivision may also be used for any required 
22.29 	environmental documentation and 
22.30 	remediation, predesign, design, and 
22.31 	rehabilitation or replacement of bridges with 
22.32 	new bridges or culverts between Winthrop and 
22.33 	Hanley Falls. A grant under this section is in 
22.34 	addition to any grant, loan, or loan guarantee 
22.35 	for this project made by the commissioner 
23.1 	under Minnesota Statutes, sections 222.46 to 
23.2 	222.62. This appropriation is in addition to 
23.3 	the appropriations in Laws 2006, chapter 258, 
23.4 	section 16, subdivision 6; Laws 2008, chapter 
23.5 	179, section 16, subdivision 5; Laws 2009, 
23.6 	chapter 93, article 1, section 11, subdivision 
23.7 	4; Laws 2010, chapter 189, section 15, 
23.8 	subdivision 5; and Laws 2015, First Special 
23.9 	Session chapter 5, article 1, section 10, 
23.10 	subdivision 4.

23.11	Subd. 7.Grand Rapids - Pedestrian Bridge
 				750,000
	
23.12 	For a grant to the city of Grand Rapids to 
23.13 	design the construction of a bridge over the 
23.14 	Mississippi River for pedestrian and bicycle 
23.15 	use to provide a safe alternative route to the 
23.16 	existing marked Trunk Highway 169 vehicle 
23.17 	bridge and to serve as a connection to existing 
23.18 	trail systems on each side of the river. This 
23.19 	appropriation is not available until the 
23.20 	commissioner determines that at least an equal 
23.21 	amount has been committed to the project 
23.22 	from nonstate sources.

23.23	Subd. 8.Hugo
 				1,100,000
	
23.24 	For a grant to the Minnesota Commercial 
23.25 	Railway for construction of repairs and other 
23.26 	capital improvements to approximately 6.5 
23.27 	miles of railroad track described as that portion 
23.28 	of the Minnesota Commercial Railway main 
23.29 	running lead, between M & D Junction in 
23.30 	White Bear Lake and the end of the track in 
23.31 	Hugo. This appropriation must be used for the 
23.32 	purposes set forth in the Minnesota 
23.33 	Constitution, article XI, section 5, clause (i), 
23.34 	to improve and rehabilitate railroad 
24.1 	rights-of-way and other rail facilities, whether 
24.2 	public or private.

24.3
24.4	Subd. 9.International Falls-Koochiching County 
Airport Commission
 				3,000,000
	
24.5 	(a) For a grant to the International 
24.6 	Falls-Koochiching County Airport 
24.7 	Commission for the following improvements 
24.8 	to the Falls International Airport:
24.9 	(1) demolition of the existing terminal 
24.10 	building;
24.11 	(2) rehabilitation;
24.12 	(3) site preparation, including utilities and civil 
24.13 	work;
24.14 	(4) design, construction, furnishing, and 
24.15 	equipping Phase II of the new terminal 
24.16 	building, including a Transportation Safety 
24.17 	Administration office, weather office, 
24.18 	conference room, circulation corridor, airport 
24.19 	administration offices, United States Customs 
24.20 	and Border Protection storage rooms, offices, 
24.21 	restrooms, passenger-processing area, 
24.22 	wet-hold room, interview room, search room, 
24.23 	pre and post-customs passenger waiting areas, 
24.24 	and vestibule; and
24.25 	(5) associated appurtenances of a capital 
24.26 	nature.
24.27 	(b) After completion of the improvements 
24.28 	under paragraph (a), any unspent money from 
24.29 	this appropriation may be used by the 
24.30 	International Falls-Koochiching County 
24.31 	Airport Commission for a commercial airline 
24.32 	apron expansion project at the Falls 
24.33 	International Airport.
25.1 	(c) This appropriation does not require a 
25.2 	nonstate contribution or match.

25.3	Subd. 10.Ramsey County Rail Grade Separation
 				1,000,000
	
25.4 	For a grant to the Ramsey County Regional 
25.5 	Railroad Authority for environmental analysis 
25.6 	and design of rail grade separation of Union 
25.7 	Pacific and Burlington Northern Santa Fe track 
25.8 	between Westminster Junction and Division 
25.9 	Street/Hoffman Interlocking in St. Paul. This 
25.10 	appropriation is not available until the 
25.11 	commissioner determines that an equal amount 
25.12 	has been committed to the project from 
25.13 	nonstate sources.

25.14	Subd. 11.Duluth Airport Authority
 				6,619,000
	
25.15 	From the state airports fund for a grant to the 
25.16 	Duluth Airport Authority to provide the 
25.17 	federal match to design and construct runway 
25.18 	infrastructure at the Duluth International 
25.19 	Airport in accordance with Minnesota Statutes, 
25.20 	section 360.017. For the purposes of this 
25.21 	appropriation, the commissioner may waive 
25.22 	the requirements of Minnesota Statutes, 
25.23 	section 360.305, subdivision 4, paragraph (b). 
25.24 	This appropriation is available until and must 
25.25 	be encumbered by June 30, 2019.

25.26	Subd. 12.Rochester International Airport
 				2,333,000
	
25.27 	From the state airports fund for a grant to the 
25.28 	city of Rochester to design, rehabilitate, 
25.29 	demolish, and expand portions of the existing 
25.30 	passenger terminal building at the Rochester 
25.31 	International Airport, provided that this 
25.32 	amount also includes money to remodel, 
25.33 	construct, furnish, and equip the existing 
25.34 	passenger terminal building and associated 
25.35 	appurtenances to meet United States Customs 
26.1 	and Border Protection and Transportation 
26.2 	Security Administration standards for safety, 
26.3 	security, and processing time to accommodate 
26.4 	domestic and international flights. The capital 
26.5 	improvements paid for with this appropriation 
26.6 	may be used as the local contribution required 
26.7 	by Minnesota Statutes, section 360.305, 
26.8 	subdivision 4. This appropriation may be used 
26.9 	to reimburse the city for costs incurred after 
26.10 	May 1, 2016. This appropriation is not 
26.11 	available until the commissioner of 
26.12 	management and budget determines that at 
26.13 	least an equal amount has been committed to 
26.14 	the project from nonstate sources. Work that 
26.15 	may be completed with this appropriation 
26.16 	includes but is not limited to:
26.17 	(1) site preparation, including utilities, site 
26.18 	civil work, testing, and construction 
26.19 	administration services;
26.20 	(2) the relocation, modification, and addition 
26.21 	of airline ticket counters, baggage claim 
26.22 	devices, public spaces, offices, restrooms, 
26.23 	support space, break rooms, lockers, 
26.24 	equipment storage, communications, hallways, 
26.25 	building signage, medical visitor rooms, 
26.26 	special needs accommodations, hold rooms, 
26.27 	secure storage, equipment maintenance area, 
26.28 	and building engineering and technology 
26.29 	systems;
26.30 	(3) improvements needed outside the terminal 
26.31 	to remove, restore, and tie into adjacent 
26.32 	utilities, sidewalks, driveways, parking lots, 
26.33 	and aircraft aprons; and
26.34 	(4) the construction of covered exterior 
26.35 	equipment storage.

27.1	Sec. 16. METROPOLITAN COUNCIL

27.2	Subdivision 1.Total Appropriation
 			$
	46,350,000
	
27.3 	To the Metropolitan Council for the purposes 
27.4 	specified in this section.

27.5
27.6	Subd. 2.Metropolitan Regional Parks and Trails 
Capital Improvements
 				5,000,000
	
27.7 	For the cost of improvements and betterments 
27.8 	of a capital nature and acquisition by the 
27.9 	council and local government units of regional 
27.10 	recreational open-space lands in accordance 
27.11 	with the council's policy plan as provided in 
27.12 	Minnesota Statutes, section 473.147. This 
27.13 	appropriation must not be used to purchase 
27.14 	easements.

27.15
27.16	Subd. 3.Metropolitan Cities Inflow and 
Infiltration Grants
 				2,500,000
	
27.17 	For grants to cities within the metropolitan 
27.18 	area, as defined in Minnesota Statutes, section 
27.19 	473.121, subdivision 2, for capital 
27.20 	improvements in municipal wastewater 
27.21 	collection systems to reduce the amount of 
27.22 	inflow and infiltration to the Metropolitan 
27.23 	Council's metropolitan sanitary sewer disposal 
27.24 	system. Grants from this appropriation are for 
27.25 	up to 50 percent of the cost to mitigate inflow 
27.26 	and infiltration in the publicly owned 
27.27 	municipal wastewater collection systems. To 
27.28 	be eligible for a grant, a city must be identified 
27.29 	by the council as a contributor of excessive 
27.30 	inflow and infiltration in the metropolitan 
27.31 	disposal system or have a measured flow rate 
27.32 	within 20 percent of its allowable 
27.33 	council-determined inflow and infiltration 
27.34 	limits. The council must award grants based 
27.35 	on applications from cities that identify 
28.1 	eligible capital costs and include a timeline 
28.2 	for inflow and infiltration mitigation 
28.3 	construction, pursuant to guidelines 
28.4 	established by the council.

28.5	Subd. 4.Metro Orange BRT Line
 				12,100,000
	
28.6 	Up to $12,100,000, but an amount that is no 
28.7 	more than ten percent of the total project cost, 
28.8 	is for the Metropolitan Council, or for the 
28.9 	Metropolitan Council to make grants to 
28.10 	political subdivisions, for design, acquisition 
28.11 	of right-of-way, engineering, and construction 
28.12 	of capital improvements along the I-35W 
28.13 	corridor for completion of the Metro Orange 
28.14 	Bus Rapid Transit (BRT) Line.

28.15	Subd. 5.Mall of America Station
 				8,750,000
	
28.16 	For design and construction of improvements 
28.17 	to the Mall of America station on the Hiawatha 
28.18 	Corridor light rail transit line, subject to 
28.19 	Minnesota Statutes, section 16A.695. The 
28.20 	Metropolitan Council must consult with the 
28.21 	city of Bloomington throughout the design 
28.22 	and construction process.

28.23	Subd. 6.St. Paul - Como Zoo Project
 				15,000,000
	
28.24 	For a grant to the city of St. Paul for predesign, 
28.25 	design, and engineering of Phase I of the 
28.26 	renovation of the seal and sea lion habitat at 
28.27 	the Como Zoo. The renovated habitat will 
28.28 	support the zoo education programs. This 
28.29 	appropriation is not available until the 
28.30 	commissioner of management and budget 
28.31 	determines that at least $1,100,000 is 
28.32 	committed to the project from nonstate 
28.33 	sources.

29.1	Subd. 7.Washington County - Gateway Corridor
 				3,000,000
	
29.2 	For a grant to Washington County to complete 
29.3 	engineering and environmental analysis related 
29.4 	to the Gateway Corridor transitway. This 
29.5 	appropriation is not available until the 
29.6 	commissioner of management and budget 
29.7 	determines that an amount sufficient to 
29.8 	complete the project has been committed to 
29.9 	the project from nonstate sources.

29.10	Sec. 17. HEALTH
 			$
	2,335,000
	
29.11 	From the general fund to the commissioner of 
29.12 	health for equipment and instruments for the 
29.13 	public health laboratory.

29.14	Sec. 18. HUMAN SERVICES

29.15	Subdivision 1.Total Appropriation
 			$
	111,915,000
	
29.16 	To the commissioner of administration, or 
29.17 	another named agency, for the purposes 
29.18 	specified in this section.

29.19	Subd. 2.Minnesota Security Hospital - St. Peter
 				70,255,000
	
29.20 	To complete design, remodel, construct, 
29.21 	furnish, and equip the second phase of the 
29.22 	two-phase project to remodel existing and to 
29.23 	develop new residential, program, activity, 
29.24 	and ancillary facilities for the Minnesota 
29.25 	Security Hospital on the upper campus of the 
29.26 	St. Peter Regional Treatment Center. This 
29.27 	appropriation includes money to: demolish, 
29.28 	renovate, and remodel existing space; 
29.29 	construct new space; address fire and life 
29.30 	safety, and other building code deficiencies; 
29.31 	replace or renovate interior finishes; purchase 
29.32 	furnishings, fixtures, and equipment; replace 
29.33 	or renovate the Minnesota Security Hospital 
30.1 	building's HVAC, plumbing, electrical, 
30.2 	security, and life safety systems; tuck-point; 
30.3 	replace windows and doors; design and abate 
30.4 	asbestos and hazardous materials; and 
30.5 	complete site work necessary to support the 
30.6 	programmed use of the facilities on the St. 
30.7 	Peter Regional Treatment Center upper 
30.8 	campus.

30.930.10
	Subd. 3.Child and Adolescent Behavioral Health 
Services
 				7,530,000
	
30.11 	(a) To predesign, design, construct, furnish, 
30.12 	and equip a new community-based 16-bed 
30.13 	psychiatric hospital facility to house the Child 
30.14 	and Adolescent Behavioral Health Services 
30.15 	(CABHS) program to be located in or near the 
30.16 	city of Willmar. This appropriation includes 
30.17 	funds for land purchase, surveying, predesign 
30.18 	and design fees, construction administration, 
30.19 	project management, site work, site and 
30.20 	building infrastructure, construction, and 
30.21 	furniture, fixtures, and equipment.
30.22 	(b) Notwithstanding any law to the contrary, 
30.23 	the 16 hospital beds licensed to the CABHS's 
30.24 	facility on January 1, 2017, by the Department 
30.25 	of Health, may transfer to this new facility 
30.26 	upon completion and approved inspection by 
30.27 	the Departments of Health and Human 
30.28 	Services.

30.29
30.30	Subd. 4.Anoka Metro Regional Treatment 
Center - Safety and Security Renovations
 				2,250,000
	
30.31 	To provide security upgrades of a capital 
30.32 	nature at the Anoka Metro Regional Treatment 
30.33 	Center campus, including but not limited to 
30.34 	control centers, electronic monitoring and 
30.35 	perimeter security equipment, new or updated 
30.36 	security fencing, and other building security 
31.1 	renovations. This appropriation includes 
31.2 	money for: predesign, design, furnishing, 
31.3 	fixtures, and equipment; construction of safety 
31.4 	and security improvements to courtyards on 
31.5 	residential treatment units; securely enclosing 
31.6 	the nursing station on Unit G; and installing 
31.7 	a campus-wide closed-circuit television video 
31.8 	security system, a facility-wide personal 
31.9 	duress alarm system, a key control system, 
31.10 	and an electronic access control system.

31.11	Subd. 5.Regional Medical Examiner's Facility
 				2,680,000
	
31.12 	To the commissioner of human services for a 
31.13 	grant to Hennepin County to design an 
31.14 	approximately 67,000 square foot regional, 
31.15 	state-of-the-art medical examiner's facility. 
31.16 	The facility shall:
31.17 	(1) provide forensic death investigation and 
31.18 	autopsy services for Dakota, Hennepin, and 
31.19 	Scott Counties with the flexibility to 
31.20 	accommodate future partner counties and 
31.21 	agencies;
31.22 	(2) serve as a teaching facility for the state on 
31.23 	the science of forensic pathology; and
31.24 	(3) be located in the city of Bloomington as a 
31.25 	site that best supports access needs for the 
31.26 	three founding counties and reasonable scene 
31.27 	response times for the geographic service area.

31.28
31.29	Subd. 6.St. Paul - Dorothy Day Opportunity 
Center
 				12,000,000
	
31.30 	To the commissioner of human services for a 
31.31 	grant to the city of St. Paul to predesign, 
31.32 	design, construct, furnish, and equip an 
31.33 	opportunity center to serve as an integrated 
31.34 	one-stop delivery system connecting persons 
32.1 	at risk of becoming homeless, and persons 
32.2 	working to move up and out of homelessness, 
32.3 	and to provide services that improve their 
32.4 	health, income, housing stability, or 
32.5 	well-being, subject to Minnesota Statutes, 
32.6 	section 16A.695. This appropriation may be 
32.7 	used to acquire property for these purposes. 
32.8 	This appropriation is not available until the 
32.9 	commissioner of management and budget has 
32.10 	determined that at least an equal amount has 
32.11 	been committed to the project from nonstate 
32.12 	sources.

32.13	Subd. 7.Perspectives Family Center
 				600,000
	
32.14 	(a) From the general fund to the commissioner 
32.15 	of human services for a grant to Perspectives, 
32.16 	Inc., to predesign, design, construct, furnish, 
32.17 	and equip the expansion and renovation of the 
32.18 	existing Perspectives Family Center facility 
32.19 	in St. Louis Park. The expanded and renovated 
32.20 	facility must be used to promote the public 
32.21 	welfare by providing any or all of the 
32.22 	following programs and services:
32.23 	(1) supportive housing programs for homeless 
32.24 	women and their children;
32.25 	(2) mental and chemical health programs;
32.26 	(3) employment services;
32.27 	(4) academic, social skills, and nutritional 
32.28 	programs for homeless and at-risk children;
32.29 	(5) an all-day therapeutic early childhood 
32.30 	development program for homeless and at-risk 
32.31 	children; and
32.32 	(6) a culturally sensitive safe and nurturing 
32.33 	environment for at-risk children to meet with 
32.34 	their nonresidential parents.
33.1 	(b) This appropriation is not available until 
33.2 	the commissioner of management and budget 
33.3 	has determined that at least an equal amount 
33.4 	has been expended or committed to the project 
33.5 	from nonstate sources. Nonstate money spent 
33.6 	on the project since May 1, 2015, shall be 
33.7 	included in the determination of nonstate 
33.8 	commitments to the project.

33.9	Subd. 8.Minneapolis - The Family Partnership
 				1,600,000
	
33.10 	From the general fund to the commissioner of 
33.11 	human services for a grant to the Family 
33.12 	Partnership in Minneapolis to predesign and 
33.13 	design a facility to provide mental health, early 
33.14 	childhood education, and other services to 
33.15 	support children and families. This 
33.16 	appropriation is not available until at least an 
33.17 	equal amount of money is committed from 
33.18 	nonstate resources.

33.19
33.20
33.21
33.22	Subd. 9.Red Lake Indian Reservation - Social 
Service Building Construction and 
Whitefeather/Moe Education Technology Center 
Remodel
 				15,000,000
	
33.23 	(a) From the general fund to the commissioner 
33.24 	of human services for a grant to the Red Lake 
33.25 	Nation to:
33.26 	(1) construct a building to house the social 
33.27 	services of Oshkiimaajitahdah in Redby; and
33.28 	(2) remodel the Whitefeather/Moe Education 
33.29 	Technology Center to return space to 
33.30 	classrooms and laboratories for educational 
33.31 	purposes.
33.32 	(b) This appropriation is available after the 
33.33 	commissioner of management and budget 
33.34 	determines that $200,000 is committed to the 
33.35 	project or has been expended on the project 
34.1 	by nonstate sources. Money spent for site 
34.2 	preparation shall count toward the $200,000 
34.3 	nonstate contribution.

34.4	Sec. 19. VETERANS AFFAIRS

34.5	Subdivision 1.Total Appropriation
 			$
	12,851,000
	
34.6 	To the commissioner of administration for the 
34.7 	purposes specified in this section.

34.8	Subd. 2.Asset Preservation
 				5,000,000
	
34.9 	For asset preservation improvements and 
34.10 	betterments of a capital nature at the veterans 
34.11 	homes in Minneapolis, Hastings, Fergus Falls, 
34.12 	Silver Bay, and Luverne, to be spent in 
34.13 	accordance with Minnesota Statutes, section 
34.14 	16B.307.

34.15
34.16	Subd. 3.Minneapolis Veterans Home Truss 
Bridge Project
 				7,851,000
	
34.17 	To design, construct, renovate, and equip the 
34.18 	historic truss bridge on the Minneapolis 
34.19 	Veterans Home campus, including asbestos 
34.20 	and hazardous materials abatement and 
34.21 	associated site work.

34.22	Sec. 20. CORRECTIONS

34.23	Subdivision 1.Total Appropriation
 			$
	40,900,000
	
34.24 	To the commissioner of administration for the 
34.25 	purposes specified in this section.

34.26	Subd. 2.Asset Preservation
 				20,000,000
	
34.27 	For asset preservation improvements and 
34.28 	betterments of a capital nature at Minnesota 
34.29 	correctional facilities statewide, to be spent in 
34.30 	accordance with Minnesota Statutes, section 
34.31 	16B.307.

34.32
34.33	Subd. 3.Minnesota Correctional Facility - St. 
Cloud
 				19,000,000
	
35.1 	To construct and equip a new intake unit and 
35.2 	loading dock with a secure connection to a 
35.3 	new central warehouse at the St. Cloud 
35.4 	correctional facility.

35.5
35.6	Subd. 4.Minnesota Correctional Facility - Moose 
Lake
 				1,900,000
	
35.7 	To expand and renovate the outdated master 
35.8 	control center to improve security and 
35.9 	efficiency at the Minnesota Correctional 
35.10 	Facility - Moose Lake. The renovation 
35.11 	includes updating fire alarm panels and 
35.12 	mechanical and electrical systems and 
35.13 	improving visibility of the visiting area.

35.14	Subd. 5.Unspent Appropriations
 					
35.15 	The unspent portion of an appropriation for a 
35.16 	Department of Corrections project in this 
35.17 	section that is complete, upon written notice 
35.18 	to the commissioner of management and 
35.19 	budget, is available for asset preservation 
35.20 	under Minnesota Statutes, section 16B.307. 
35.21 	Minnesota Statutes, section 16A.642, applies 
35.22 	from the date of the original appropriation to 
35.23 	the unspent amount transferred.

35.24
35.25	Sec. 21. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

35.26	Subdivision 1.Total Appropriation
 			$
	106,155,000
	
35.27 	To the commissioner of employment and 
35.28 	economic development for the purposes 
35.29 	specified in this section.

35.30	Subd. 2.Transportation Economic Development
 				7,000,000
	
35.31 	For grants under Minnesota Statutes, section 
35.32 	116J.436.

35.33
35.34	Subd. 3.Greater Minnesota Business 
Development Public Infrastructure Grants
 				12,000,000
	
36.1 	For grants under Minnesota Statutes, section 
36.2 	116J.431.

36.3
36.4	Subd. 4.Innovative Business Development Public 
Infrastructure Grants
 				2,500,000
	
36.5 	For grants under Minnesota Statutes, section 
36.6 	116J.435.

36.7	Subd. 5.Duluth - Steam Plant
 				21,000,000
	
36.8 	From the general fund for a grant to the city 
36.9 	of Duluth to upgrade the municipal district 
36.10 	heating facility and systems, including 
36.11 	conversion of the distribution system along 
36.12 	Superior Street from steam with no condensate 
36.13 	return, to closed-loop hot water. This 
36.14 	appropriation is for one or more of the project 
36.15 	elements or phases: predesign, design, 
36.16 	engineering, renovation, construction, 
36.17 	furnishing, and equipping the facility, systems, 
36.18 	and infrastructure. This appropriation is not 
36.19 	available until the commissioner of 
36.20 	management and budget determines that an 
36.21 	amount sufficient to complete the project, or 
36.22 	one or more of the distinct elements or phases 
36.23 	of the project, is committed from nonstate 
36.24 	sources.

36.25	Subd. 6.Eagle's Healing Nest
 				300,000
	
36.26 	From the general fund for a grant to Eagle's 
36.27 	Healing Nest in Sauk Centre.

36.28
36.29	Subd. 7.Hennepin County - Hennepin Center 
for the Arts
 				5,000,000
	
36.30 	From the general fund for a grant to Hennepin 
36.31 	County for improvements and betterments of 
36.32 	a capital nature to renovate the historic 
36.33 	Hennepin Center for the Arts. This 
36.34 	appropriation is available after the 
36.35 	commissioner of management and budget 
37.1 	determines that $3,000,000 has been 
37.2 	committed to complete the project from 
37.3 	nonstate sources.

37.4
37.5	Subd. 8.Hermantown - Arrowhead Regional 
Health and Wellness Center
 				8,000,000
	
37.6 	For a grant to the city of Hermantown to 
37.7 	prepare the middle school site on the 
37.8 	Hermantown School District campus, 
37.9 	including demolition of a portion of the middle 
37.10 	school, and to design, construct a new addition 
37.11 	to the middle school building and renovate the 
37.12 	remaining existing building, furnish, and equip 
37.13 	the facility as the Arrowhead Regional Health 
37.14 	and Wellness Center. The city may enter into 
37.15 	lease or management agreements under 
37.16 	Minnesota Statutes, section 16A.695, for 
37.17 	operation of the center. This appropriation is 
37.18 	not available until at least an equal amount is 
37.19 	committed to the project from nonstate 
37.20 	sources.

37.21
37.22	Subd. 9.Litchfield - Phase 2 Power Generation 
Improvements
 				3,000,000
	
37.23 	For a grant to the city of Litchfield to design 
37.24 	and construct electrical generation 
37.25 	improvements in the city of Litchfield to 
37.26 	expand the current standby capacity, including 
37.27 	replacement of two old generators. This 
37.28 	appropriation is not available until the 
37.29 	commissioner of management and budget 
37.30 	determines that at least an equal amount is 
37.31 	committed to the project from nonstate 
37.32 	sources.

37.33	Subd. 10.Madelia - Public Infrastructure
 				98,000
	
37.34 	From the general fund for a grant to the city 
37.35 	of Madelia to reimburse the city for the costs 
38.1 	of repair and replacement of a capital nature 
38.2 	of public infrastructure damaged by a fire in 
38.3 	Madelia in February 2016. This appropriation 
38.4 	does not require a nonstate contribution.

38.5	Subd. 11.Minneapolis - American Indian Center
 				155,000
	
38.6 	From the general fund for a grant to the 
38.7 	Minneapolis American Indian Center to 
38.8 	predesign the renovation of the center on 
38.9 	Franklin Avenue, taking into account and 
38.10 	protecting the significant and unique art and 
38.11 	features of the center.

38.12	Subd. 12.Minneapolis - People's Center
 				2,750,000
	
38.13 	From the general fund to the commissioner of 
38.14 	human services for a grant to the People's 
38.15 	Center in Minneapolis to design, renovate, 
38.16 	improve, construct, and equip a facility that 
38.17 	provides medical, dental, mental health, and 
38.18 	wellness services to all patients, regardless of 
38.19 	their ability to pay. This appropriation is not 
38.20 	available until the commissioner of 
38.21 	management and budget confirms that at least 
38.22 	$1,500,000 is committed to the project from 
38.23 	nonstate sources.

38.24
38.25	Subd. 13.Minneapolis - Pioneers and Soldiers 
Cemetery Restoration
 				1,029,000
	
38.26 	For a grant to the city of Minneapolis to 
38.27 	restore the historic steel and limestone pillar 
38.28 	fence along Cedar Avenue and Lake Street, 
38.29 	install a new steel fence and pillars along 21st 
38.30 	Avenue South, and install a waterproofing 
38.31 	system for preservation of the fence and pillars 
38.32 	at the Pioneer and Soldiers Cemetery. This 
38.33 	appropriation is available after the 
38.34 	commissioner of management and budget 
39.1 	determines that $394,000 is committed from 
39.2 	nonstate sources.

39.3
39.4	Subd. 14.Polk County - North Country Food 
Bank
 				3,000,000
	
39.5 	For a grant to Polk County to predesign, 
39.6 	design, construct, renovate, furnish, and equip 
39.7 	a regional charitable food warehouse, 
39.8 	distribution, and office facility in the city of 
39.9 	Crookston, subject to Minnesota Statutes, 
39.10 	section 16A.695. This appropriation is not 
39.11 	available until the commissioner of 
39.12 	management and budget determines that an 
39.13 	equal amount has been committed to the 
39.14 	project from nonstate sources. The value of 
39.15 	the land purchased or acquired by the county 
39.16 	after January 1, 2013, for this facility shall 
39.17 	count toward the nonstate match.

39.18	Subd. 15.Red Wing - River Town Renaissance
 				4,480,000
	
39.19 	For a grant to the city of Red Wing to 
39.20 	complete removal and replacement of 250 
39.21 	linear feet of the harbor retaining wall; to 
39.22 	design, construct, furnish, and equip the 
39.23 	renovation of the historic T.B. Sheldon 
39.24 	Performing Arts Theater; and to design and 
39.25 	construct transient riverboat docking facilities, 
39.26 	levee wall extension, and levee promenade 
39.27 	improvements at Levee Park. This 
39.28 	appropriation is not available until the 
39.29 	commissioner of management and budget 
39.30 	determines that an amount sufficient to 
39.31 	complete the project has been committed from 
39.32 	nonstate sources.

39.33	Subd. 16.St. James - Public Infrastructure
 				3,443,000
	
39.34 	For a grant to the city of St. James. Of this 
39.35 	amount, $2,193,000 is for engineering, 
40.1 	right-of-way acquisition, and reconstruction 
40.2 	of streets, sidewalks, storm water and sanitary 
40.3 	sewer, water mains, lighting, utilities, and 
40.4 	other capital improvements of publicly owned 
40.5 	infrastructure required for the reconstruction 
40.6 	of marked Trunk Highway 4 in the city of St. 
40.7 	James, and $1,250,000 is to replace the storm 
40.8 	sewer drain that serves St. James Lake and the 
40.9 	entire southern section of the city of St. James.

40.10
40.11	Subd. 17.St. Paul - Science Museum of 
Minnesota Building Preservation
 				13,000,000
	
40.12 	For a grant to the city of St. Paul for predesign, 
40.13 	design, and construction work to replace 
40.14 	water-damaged elements of the Science 
40.15 	Museum of Minnesota's exterior envelope and 
40.16 	some resultant interior damage caused by 
40.17 	latent design and construction defects, subject 
40.18 	to Minnesota Statutes, section 16A.695. This 
40.19 	appropriation is not available until the 
40.20 	commissioner of management and budget 
40.21 	determines that an equal amount has been 
40.22 	committed to the project from nonstate 
40.23 	sources. Capital costs paid by the Science 
40.24 	Museum of Minnesota since January 1, 2014, 
40.25 	relating to the water intrusion damage, shall 
40.26 	count toward the match requirement.

40.27
40.28	Subd. 18.St. Paul Port Authority - Minnesota 
Museum of American Art
 				6,000,000
	
40.29 	For a grant to the St. Paul Port Authority to 
40.30 	design, construct, furnish, and equip new 
40.31 	museum galleries and an art study facility for 
40.32 	the Minnesota Museum of American Art. The 
40.33 	museum provides space to celebrate the legacy 
40.34 	of Minnesota art and artists and is part of the 
40.35 	restoration of the historic Pioneer Endicott 
40.36 	Building. The museum is part of a multiphase 
41.1 	project of which only the museum galleries 
41.2 	and art study facility constructed with the 
41.3 	appropriation shall be state bond financed 
41.4 	property subject to Minnesota Statutes, section 
41.5 	16A.695. This appropriation is not available 
41.6 	until the commissioner of management and 
41.7 	budget has determined that (1) at least an equal 
41.8 	amount of nonstate funds has been committed 
41.9 	to the project or expended for design, 
41.10 	construction, and furnishing of the adjacent 
41.11 	Minnesota Museum of American Art Center 
41.12 	for Creativity facilities, which are not subject 
41.13 	to Minnesota Statutes, section 16A.695, and 
41.14 	(2) sufficient resources, state and nonstate, are 
41.15 	available to complete the museum galleries 
41.16 	and art study facility. Funds invested in the 
41.17 	Center for Creativity facilities by an investor 
41.18 	receiving an assignment of state historic tax 
41.19 	credits pursuant to Minnesota Statutes, section 
41.20 	290.0681, are nonstate funds for purposes of 
41.21 	this requirement. Only expenditures made after 
41.22 	January 1, 2012, qualify for the required 
41.23 	match. Due to the integrated nature of the 
41.24 	overall development, public bidding is not 
41.25 	required.

41.26
41.27	Subd. 19.Virginia - Highway 53 Utility 
Relocation
 				3,400,000
	
41.28 	From the general fund for grants to the city of 
41.29 	Virginia and the city of Virginia Public 
41.30 	Utilities Commission to acquire land for and 
41.31 	to predesign, design, construct, furnish, and 
41.32 	equip relocated public utilities, including 
41.33 	sanitary and storm water sewers and water, 
41.34 	electrical, and gas utilities; and to demolish 
41.35 	and remove old utility infrastructure, all 
41.36 	associated with the relocation of marked State 
42.1 	Highway 53. This appropriation may be used 
42.2 	in part or in whole to reimburse the grantees 
42.3 	for costs of the projects already paid for and 
42.4 	does not require a nonstate contribution.

42.5	Subd. 20.West St. Paul - Robert Street
 				10,000,000
	
42.6 	From the general fund for a grant to the city 
42.7 	of West St. Paul to complete the reconstruction 
42.8 	of South Robert Street. This appropriation may 
42.9 	be used in part or in whole to reimburse the 
42.10 	city for costs of the project already paid for 
42.11 	and does not require a nonstate contribution.

42.12	Sec. 22. PUBLIC FACILITIES AUTHORITY

42.13	Subdivision 1.Total Appropriation
 			$
	143,366,000
	
42.14 	To the Public Facilities Authority for the 
42.15 	purposes specified in this section. The Public 
42.16 	Facilities Authority may use the funds in this 
42.17 	section or other available funds to amend 
42.18 	project financing agreements awarded after 
42.19 	July 1, 2016, based on program changes in 
42.20 	article 2, sections 9 and 10.

42.21	Subd. 2.State Match for Federal Grants
 				17,000,000
	
42.22 	To match federal grants for the clean water 
42.23 	revolving fund under Minnesota Statutes, 
42.24 	section 446A.07, and the drinking water 
42.25 	revolving fund under Minnesota Statutes, 
42.26 	section 446A.081. This appropriation must be 
42.27 	used for qualified capital projects.

42.28	Subd. 3.Water Infrastructure Funding Program
 				70,000,000
	
42.29 	(a) For grants to eligible municipalities under 
42.30 	the water infrastructure funding program under 
42.31 	Minnesota Statutes, section 446A.072.
42.32 	(b) $50,000,000 is for wastewater projects 
42.33 	listed on the Pollution Control Agency's 
43.1 	project priority list in the fundable range under 
43.2 	the clean water revolving fund program.
43.3 	(c) $20,000,000 is for drinking water projects 
43.4 	listed on the Department of Health's project 
43.5 	priority list in the fundable range under the 
43.6 	drinking water revolving fund program.
43.7 	(d) After all eligible projects under paragraph 
43.8 	(b) or (c) have been funded, the Public 
43.9 	Facilities Authority may transfer any 
43.10 	remaining, uncommitted money to eligible 
43.11 	projects under a program defined in paragraph 
43.12 	(b) or (c) based on that program's project 
43.13 	priority list.
43.14 	(e) Notwithstanding Minnesota Statutes, 
43.15 	section 446A.072, subdivision 5a, paragraph 
43.16 	(b), the Western Lake Superior Sanitary 
43.17 	District is eligible for a grant to predesign, 
43.18 	design, construct, furnish, and equip a 
43.19 	combined heat and power system.

43.20
43.21	Subd. 4.Point Source Implementation Grants 
Program
 				46,500,000
	
43.22 	For grants to eligible municipalities under the 
43.23 	point source implementation grants program 
43.24 	under Minnesota Statutes, section 446A.073. 
43.25 	This appropriation must be used for qualified 
43.26 	capital projects.

43.27
43.28	Subd. 5.Big Lake Area Sanitary District - Sewer 
System and Force Main
 				1,200,000
	
43.29 	For a grant to the Big Lake Area Sanitary 
43.30 	District to construct a pressure sewer system 
43.31 	and force main to convey sewage to the 
43.32 	Western Lake Superior Sanitary District 
43.33 	connection in the city of Cloquet. This 
43.34 	appropriation is not available until the 
43.35 	commissioner of management and budget 
44.1 	determines that an equal amount is committed 
44.2 	from nonstate sources. This appropriation is 
44.3 	in addition to the appropriation in Laws 2014, 
44.4 	chapter 294, article 1, section 22, subdivision 
44.5 	4.

44.6
44.7	Subd. 6.Dennison - Sewage Treatment System 
Improvements
 				726,000
	
44.8 	For a grant to the city of Dennison to 
44.9 	predesign, design, and construct a new lift 
44.10 	station and make sewage pond improvements. 
44.11 	This appropriation does not require a nonstate 
44.12 	contribution.

44.13
44.14	Subd. 7.East Grand Forks - Wastewater 
Interconnection Infrastructure
 				5,300,000
	
44.15 	For a grant to the city of East Grand Forks to 
44.16 	design and construct wastewater infrastructure 
44.17 	improvements interconnecting the wastewater 
44.18 	system of East Grand Forks to the wastewater 
44.19 	treatment system in Grand Forks, North 
44.20 	Dakota. This appropriation may not be used 
44.21 	for improvements outside the state. This 
44.22 	appropriation is in addition to grants under 
44.23 	Minnesota Statutes, section 446A.072. A 
44.24 	nonstate match is not required.

44.25
44.26	Subd. 8.Koochiching County - Voyageurs 
National Park Clean Water Project
 				2,000,000
	
44.27 	(a) For a grant to Koochiching County to 
44.28 	acquire land or interests in land, and to design, 
44.29 	engineer, construct, and equip sanitary sewage 
44.30 	systems and facilities to implement a portion 
44.31 	or portions of the Voyageurs National Park 
44.32 	clean water project comprehensive plan. This 
44.33 	appropriation is available after the 
44.34 	commissioner of management and budget 
44.35 	determines that $4,500,000 is committed from 
44.36 	nonstate sources.
45.1 	(b) This appropriation is in addition to the 
45.2 	appropriation in Laws 2014, chapter 294, 
45.3 	article 1, section 22, subdivision 7. 
45.4 	Notwithstanding the match requirement in 
45.5 	Laws 2014, chapter 294, article 1, section 22, 
45.6 	subdivision 7, the nonstate match required for 
45.7 	this appropriation and the 2014 appropriation 
45.8 	for a grant to Koochiching County is 25 
45.9 	percent of the state grant amounts. Any money 
45.10 	remaining from this appropriation after 
45.11 	completion of the projects in paragraph (a) is 
45.12 	available for grants to Koochiching or St. 
45.13 	Louis County to be used for other capital 
45.14 	projects described in the comprehensive plan 
45.15 	and as determined by the Voyageur's National 
45.16 	Park Clean Water Joint Powers Board.

45.17
45.18	Subd. 9.Oronoco - Wastewater Collection and 
Treatment Facilities
 				500,000
	
45.19 	From the general fund for a grant to the city 
45.20 	of Oronoco to commission a study to evaluate 
45.21 	options for solving the wastewater 
45.22 	infrastructure needs for the region including 
45.23 	the city of Oronoco, the city of Pine Island, or 
45.24 	the city of Rochester. This appropriation does 
45.25 	not require a nonstate match.

45.26
45.27	Subd. 10.Lilydale - Highway 13 Storm Water 
Conveyance
 				140,000
	
45.28 	From the general fund for a grant to the city 
45.29 	of Lilydale to design, acquire, construct, and 
45.30 	install a storm water sewer and drop structure 
45.31 	along Trunk Highway 13 in Lilydale that will 
45.32 	be large enough to effectively collect water 
45.33 	from springs and storm water runoff from 
45.34 	above the road and safely convey the water to 
45.35 	below the bluff. The city must coordinate this 
45.36 	project with the Department of 
46.1 	Transportation's Trunk Highway 13 project. 
46.2 	The appropriation and project also include 
46.3 	capital repairs and improvements to existing 
46.4 	drainage structures along the Big Rivers 
46.5 	Regional Trail at the base of the bluff. This 
46.6 	appropriation may be used in part or in whole 
46.7 	to reimburse the city for project costs already 
46.8 	paid for and does not require a nonstate 
46.9 	contribution.

46.10
46.11	Sec. 23. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	10,000,000
	
46.12 	For transfer to the housing development fund 
46.13 	to finance the costs of rehabilitation to 
46.14 	preserve public housing under Minnesota 
46.15 	Statutes, section 462A.202, subdivision 3a. 
46.16 	For purposes of this section, "public housing" 
46.17 	means housing for low-income persons and 
46.18 	households financed by the federal 
46.19 	government and owned and operated by the 
46.20 	public housing authorities and agencies formed 
46.21 	by cities and counties. Public housing 
46.22 	authorities receiving a public housing 
46.23 	assessment composite score of 80 or above or 
46.24 	an equivalent designation are eligible to 
46.25 	receive funding. Priority must be given to 
46.26 	proposals that maximize federal or local 
46.27 	resources to finance the capital costs. The 
46.28 	priority in Minnesota Statutes, section 
46.29 	462A.202, subdivision 3a, for projects to 
46.30 	increase the supply of affordable housing and 
46.31 	the restrictions of Minnesota Statutes, section 
46.32 	462A.202, subdivision 7, do not apply to this 
46.33 	appropriation.

46.34
46.35	Sec. 24. MINNESOTA HISTORICAL 
SOCIETY

47.1	Subdivision 1.Total Appropriation
 			$
	36,500,000
	
47.2 	To the Minnesota Historical Society for the 
47.3 	purposes specified in this section.

47.4	Subd. 2.Historic Fort Snelling
 				34,000,000
	
47.5 	(a) To design, renovate, construct, furnish, and 
47.6 	equip facilities to support visitor services and 
47.7 	history programs at Historic Fort Snelling.
47.8 	(b) This appropriation includes up to 
47.9 	$4,000,000 to design facilities to support 
47.10 	visitor services and history programs at 
47.11 	Historic Fort Snelling. Money for design is 
47.12 	available the day following final enactment 
47.13 	and is not contingent on demonstrating a 
47.14 	nonstate contribution to the project. Upon 
47.15 	completion of the design, the unspent portion 
47.16 	of the amount specified in this paragraph is 
47.17 	available for the purposes of paragraph (c).
47.18 	(c) The balance of this appropriation is to 
47.19 	demolish the existing visitor center, renovate, 
47.20 	construct, furnish, and equip facilities, 
47.21 	including landscaping and wayfinding, at 
47.22 	Historic Fort Snelling. This appropriation is 
47.23 	not available until the commissioner of 
47.24 	management and budget determines that an 
47.25 	amount sufficient to complete the project has 
47.26 	been committed from nonstate sources.

47.27	Subd. 3.Historic Sites Asset Preservation
 				2,500,000
	
47.28 	For capital improvements and betterments at 
47.29 	state historic sites, buildings, landscaping at 
47.30 	historic buildings, exhibits, markers, and 
47.31 	monuments, to be spent in accordance with 
47.32 	Minnesota Statutes, section 16B.307. The 
47.33 	society shall determine project priorities as 
47.34 	appropriate based on need.

48.1	Sec. 25. BOND SALE EXPENSES
 			$
	1,085,000
	
48.2 	To the commissioner of management and 
48.3 	budget for bond sale expenses under 
48.4 	Minnesota Statutes, section 16A.641, 
48.5 	subdivision 8.

48.6 	Sec. 26. BOND SALE AUTHORIZATION.
 48.7 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
48.8 	the bond proceeds fund, the commissioner of management and budget shall sell and issue 
48.9 	bonds of the state in an amount up to $1,037,951,000 in the manner, upon the terms, and 
48.10 	with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
48.11 	Minnesota Constitution, article XI, sections 4 to 7.
48.12 		Subd. 2.Transportation fund. To provide the money appropriated in this act from the 
48.13 	state transportation fund, the commissioner of management and budget shall sell and issue 
48.14 	bonds of the state in an amount up to $57,036,000 in the manner, upon the terms, and with 
48.15 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
48.16 	Minnesota Constitution, article XI, sections 4 to 7.

48.17 	Sec. 27. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 48.18 	(a) The bond sale authorization in Laws 1990, chapter 610, article 1, section 30, 
48.19 	subdivision 1, as amended, is reduced by $3,129.
48.20 	(b) The bond sale authorization in Laws 1994, chapter 643, section 31, subdivision 1, 
48.21 	as amended, is reduced by $24,480.
48.22 	(c) The bond sale authorization in Laws 1997, Second Special Session chapter 2, section 
48.23 	12, as amended, is reduced by $96,992.
48.24 	(d) The bond sale authorization in Laws 1999, chapter 240, article 1, section 13, 
48.25 	subdivision 1, as amended, is reduced by $212,472.
48.26 	(e) The bond sale authorization in Laws 2000, chapter 492, article 1, section 26, 
48.27 	subdivision 1, as amended, is reduced by $7,933,538.
48.28 	(f) The bond sale authorization in Laws 2002, chapter 393, section 30, subdivision 1, as 
48.29 	amended, is reduced by $188,471.
48.30 	(g) The bond sale authorization in Laws 2002, First Special Session chapter 1, section 
48.31 	9, subdivision 1, is reduced by $217,959.
49.1 	(h) The bond sale authorization in Laws 2003, First Special Session chapter 19, article 
49.2 	3, section 2, is reduced by $201,530.
49.3 	(i) The bond sale authorization in Laws 2003, First Special Session chapter 19, article 
49.4 	4, section 4, is reduced by $326,534.
49.5 	(j) The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, subdivision 
49.6 	1, as amended, is reduced by $3,366,628.
49.7 	(k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First Special 
49.8 	Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is canceled 
49.9 	and the bond sale authorization in Laws 2011, First Special Session chapter 12, section 23, 
49.10 	subdivision 1, is reduced by the same amount.
49.11 	(l) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012, First 
49.12 	Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner of public 
49.13 	safety for disaster relief, is canceled and the bond sale authorization in Laws 2012, First 
49.14 	Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
49.15 	(m) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
49.16 	Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster 
49.17 	relief, is canceled and the bond sale authorization in Laws 2012, First Special Session chapter 
49.18 	1, article 1, section 16, subdivision 1, is reduced by the same amount.
49.19 	(n) $1,085,000 of the appropriation from the bond proceeds fund in Laws 2012, First 
49.20 	Special Session chapter 1, article 1, section 9, subdivision 2, to the commissioner of natural 
49.21 	resources for disaster relief, is canceled, and the bond sale authorization in Laws 2012, First 
49.22 	Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
49.23 	(o) The $300,000 appropriation from the general fund in Laws 2015, First Special Session 
49.24 	chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.

49.25 	Sec. 28. BOND SALE SCHEDULE.
 49.26 	The commissioner of management and budget shall schedule the sale of state general 
49.27 	obligation bonds so that, during the biennium ending June 30, 2019, no more than $....... 
49.28 	will need to be transferred from the general fund to the state bond fund to pay principal and 
49.29 	interest due and to become due on outstanding state general obligation bonds. During the 
49.30 	biennium, before each sale of state general obligation bonds, the commissioner of 
49.31 	management and budget shall calculate the amount of debt service payments needed on 
49.32 	bonds previously issued and shall estimate the amount of debt service payments that will 
49.33 	be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount of 
50.1 	bonds scheduled to be sold so as to remain within the limit set by this section. The amount 
50.2 	needed to make the debt service payments is appropriated from the general fund as provided 
50.3 	in Minnesota Statutes, section 16A.641.

50.4 	Sec. 29. EFFECTIVE DATE.
 50.5 	Except as otherwise provided, this article is effective the day following final enactment.

50.6 	ARTICLE 2
50.7 	MISCELLANEOUS

50.8 	Section 1. Minnesota Statutes 2016, section 16A.967, is amended to read:
50.9 	16A.967 LEWIS AND CLARK APPROPRIATION BONDS.
50.10 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
50.11 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of 
50.12 	the state payable during a biennium from one or more of the following sources:
50.13 	(1) money appropriated by law from the general fund in any biennium for debt service 
50.14 	due with respect to obligations described in subdivision 2, paragraph (c)subdivisions 2a 
50.15 	and 2b;
50.16 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c)
50.17 	subdivisions 2a and 2b;
50.18 	(3) payments received for that purpose under agreements and ancillary arrangements 
50.19 	described in subdivision 2, paragraph (e) (d); and
50.20 	(4) investment earnings on amounts in clauses (1) to (3).
50.21 	(c) "Debt service" means the amount payable in any biennium of principal, premium, if 
50.22 	any, and interest on appropriation bonds.
50.23 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
50.24 	this subdivision, the commissioner may sell and issue appropriation bonds of the state under 
50.25 	this section for public purposes as provided by law, including, in particular, the financing 
50.26 	of the land acquisition, design, engineering, and construction of facilities and infrastructure 
50.27 	necessary to complete the next phase of the Lewis and Clark Regional Water System project, 
50.28 	including completion of the pipeline to Magnolia, extension of the project to the 
50.29 	Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design, 
50.30 	and easement acquisition for the final phase of the project to Worthington. No bonds shall 
50.31 	be sold until the commissioner determines that a nonstate match of at least $9,000,000 is 
51.1 	committed to this project phase. Grant agreements entered into under this section must 
51.2 	provide for reimbursement to the state from any federal money provided for the project, 
51.3 	consistent with the Lewis and Clark Regional Water System, Inc., agreement.
51.4 	(b) The appropriation bonds may be issued and sold only after the commissioner 
51.5 	determines that the construction and administration for work done on the project will comply 
51.6 	with (1) all federal requirements and regulations associated with the Lewis and Clark Rural 
51.7 	Water System Act of 2000, and (2) the cooperative agreement between the United States 
51.8 	Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds 
51.9 	of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond 
51.10 	proceeds fund in the state treasury. All income from investment of the bond proceeds, as 
51.11 	estimated by the commissioner, is appropriated to the commissioner for the payment of 
51.12 	principal and interest on the appropriation bonds.
51.13 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
51.14 	commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of 
51.15 	costs of issuance, for the purposes as provided under paragraph (a), and pay debt service 
51.16 	including capitalized interest, costs of issuance, costs of credit enhancement, or make 
51.17 	payments under other agreements entered into under paragraph (e).
51.18 	(d) (c) Appropriation bonds may be issued in one or more issues or series on the terms 
51.19 	and conditions the commissioner determines to be in the best interests of the state, but the 
51.20 	term on any series of appropriation bonds may not exceed 25 years. The appropriation bonds 
51.21 	of each issue and series thereof shall be dated and bear interest, and may be includable in 
51.22 	or excludable from the gross income of the owners for federal income tax purposes.
51.23 	(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
51.24 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 
51.25 	enter into agreements and ancillary arrangements relating to the appropriation bonds, 
51.26 	including but not limited to trust indentures, grant agreements, lease or use agreements, 
51.27 	operating agreements, management agreements, liquidity facilities, remarketing or dealer 
51.28 	agreements, letter of credit agreements, insurance policies, guaranty agreements, 
51.29 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
51.30 	payments made or received according to the agreement or ancillary arrangement shall be 
51.31 	made from or deposited as provided in the agreement or ancillary arrangement. The 
51.32 	determination of the commissioner included in an interest exchange agreement that the 
51.33 	agreement relates to an appropriation bond shall be conclusive.
52.1 	(f) (e) The commissioner may enter into written agreements or contracts relating to the 
52.2 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
52.3 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
52.4 	including Securities and Exchange Commission rules and regulations in Code of Federal 
52.5 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
52.6 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
52.7 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
52.8 	the order or resolution.
52.9 	(g) (f) The appropriation bonds are not subject to chapter 16C.
52.10 		Subd. 2a.Project authorization. Appropriation bonds may be sold and issued in amounts 
52.11 	that, in the opinion of the commissioner, are necessary to provide sufficient money to the 
52.12 	Public Facilities Authority under subdivision 7, paragraph (a), not to exceed $19,000,000 
52.13 	net of costs of issuance, for the purposes as provided under this subdivision, and pay debt 
52.14 	service including capitalized interest, costs of issuance, costs of credit enhancement, or 
52.15 	make payments under other agreements entered into under subdivision 2, paragraph (d). 
52.16 	The bonds authorized by this subdivision are for the purposes of financing the land 
52.17 	acquisition, design, engineering, and construction of facilities and infrastructure necessary 
52.18 	to complete Phase 2 of the Lewis and Clark Regional Water System project, including 
52.19 	completion of the pipeline to Magnolia; extension of the project to the Lincoln-Pipestone 
52.20 	Rural Water System connection near Adrian; and engineering, design, and easement 
52.21 	acquisition for the final phase of the project to Worthington. No bonds shall be sold under 
52.22 	this subdivision until the commissioner determines that a nonstate match of at least 
52.23 	$9,000,000 is committed to this project phase. Upon certification by the Lewis and Clark 
52.24 	Joint Powers Board that the bond sale authorization provided by this subdivision has fully 
52.25 	met the needs of Phase 2 of the project, and to the extent there is additional authorization 
52.26 	remaining, this authorization is also available for the purposes of and on the same conditions 
52.27 	as subdivision 2b.
52.28 		Subd. 2b.Additional project authorization. Appropriation bonds may be sold and 
52.29 	issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient 
52.30 	money to the Public Facilities Authority under subdivision 7, paragraph (b), not to exceed 
52.31 	$11,500,000 net of costs of issuance, for the purposes as provided under this subdivision, 
52.32 	and pay debt service including capitalized interest, costs of issuance, costs of credit 
52.33 	enhancement, or make payments under other agreements entered into under subdivision 2, 
52.34 	paragraph (d). The bonds authorized by this subdivision are for the purposes of financing 
52.35 	the land acquisition, design, engineering, and construction of facilities and infrastructure 
53.1 	necessary to complete Phase 3 of the Lewis and Clark Regional Water System project, 
53.2 	including extension of the project from the Lincoln-Pipestone Rural Water System connection 
53.3 	near Adrian to Worthington, construction of a reservoir in Nobles County and a meter 
53.4 	building in Worthington, and acquisition and installation of a supervisory control and data 
53.5 	acquisition (SCADA) system. No bonds shall be sold under this subdivision until the 
53.6 	commissioner determines that a nonstate match of at least $9,000,000 is committed to the 
53.7 	final phase of the project.
53.8 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, 
53.9 	notes, or other similar instruments, and in the manner provided in section 16A.672. In the 
53.10 	event that any provision of section 16A.672 conflicts with this section, this section shall 
53.11 	control.
53.12 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
53.13 	established in subdivision 6.
53.14 	(c) Appropriation bonds may be sold at either public or private sale upon such terms as 
53.15 	the commissioner shall determine are not inconsistent with this section and may be sold at 
53.16 	any price or percentage of par value. Any bid received may be rejected.
53.17 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
53.18 	(e) Notwithstanding any other law, appropriation bonds issued under this section shall 
53.19 	be fully negotiable.
53.20 		Subd. 4.Refunding bonds. The commissioner may issue appropriation bonds for the 
53.21 	purpose of refunding any appropriation bonds then outstanding, including the payment of 
53.22 	any redemption premiums on the bonds, any interest accrued or to accrue to the redemption 
53.23 	date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any 
53.24 	refunding bonds may, in the discretion of the commissioner, be applied to the purchase or 
53.25 	payment at maturity of the appropriation bonds to be refunded, to the redemption of the 
53.26 	outstanding appropriation bonds on any redemption date, or to pay interest on the refunding 
53.27 	bonds and may, pending application, be placed in escrow to be applied to the purchase, 
53.28 	payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be 
53.29 	invested and reinvested in obligations that are authorized investments under section 11A.24. 
53.30 	The income earned or realized on the investment may also be applied to the payment of the 
53.31 	appropriation bonds to be refunded or interest or premiums on the refunded appropriation 
53.32 	bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been 
53.33 	fully satisfied, any balance of the proceeds and any investment income may be returned to 
53.34 	the general fund or, if applicable, the special appropriation Lewis and Clark bond proceeds 
54.1 	fund for use in any lawful manner. All refunding bonds issued under this subdivision must 
54.2 	be prepared, executed, delivered, and secured by appropriations in the same manner as the 
54.3 	appropriation bonds to be refunded.
54.4 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities may 
54.5 	legally invest any sinking funds, money, or other funds belonging to them or under their 
54.6 	control in any appropriation bonds issued under this section:
54.7 	(1) the state, the investment board, public officers, municipal corporations, political 
54.8 	subdivisions, and public bodies;
54.9 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
54.10 	savings banks and institutions, investment companies, insurance companies, insurance 
54.11 	associations, and other persons carrying on a banking or insurance business; and
54.12 	(3) personal representatives, guardians, trustees, and other fiduciaries.
54.13 		Subd. 6.No full faith and credit; state not required to make appropriations. The 
54.14 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
54.15 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
54.16 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
54.17 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
54.18 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
54.19 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
54.20 	for any fiscal year, provided that nothing in this section shall be construed to require the 
54.21 	state to appropriate money sufficient to make debt service payments with respect to the 
54.22 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no 
54.23 	longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
54.24 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
54.25 	of final payment of the principal of and interest on the appropriation bonds.
54.26 		Subd. 7.Appropriation of proceeds. (a) The proceeds of appropriation bonds issued 
54.27 	under subdivision 2a and interest credited to the special appropriation Lewis and Clark bond 
54.28 	proceeds fund are appropriated as follows:
54.29 	(1) to the commissioner Public Facilities Authority for a grant to the Lewis and Clark 
54.30 	Joint Powers Board for payment of capital expenses for the purposes provided by as specified 
54.31 	in subdivision 2, paragraph (a), 2a; and
54.32 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
54.33 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 
55.1 	payments under any agreements entered into under subdivision 2, paragraph (e) (d), each 
55.2 	as permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise 
55.3 	provided for the public purposes provided by subdivision 2, paragraph (a).
55.4 	(b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited 
55.5 	to the special Lewis and Clark appropriation bond proceeds fund are appropriated as follows:
55.6 	(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 
55.7 	Board for payment of capital expenses as specified in subdivision 2b; and
55.8 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
55.9 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 
55.10 	payments under any agreements entered into under subdivision 2, paragraph (d), each as 
55.11 	permitted by state and federal law.
55.12 		Subd. 8.Appropriation for debt service and other purposes. (a) An amount, up to 
55.13 	$1,351,000 needed to pay principal and interest on appropriation bonds issued under this 
55.14 	section subdivision 2a is appropriated each fiscal year from the general fund to the 
55.15 	commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
55.16 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
55.17 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
55.18 	appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.
55.19 	(b) An amount up to $876,000 needed to pay principal and interest on appropriation 
55.20 	bonds issued under subdivision 2b is appropriated each fiscal year from the general fund 
55.21 	to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
55.22 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
55.23 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
55.24 	appropriation is available beginning in fiscal year 2018 and through fiscal year 2039. The 
55.25 	appropriation in fiscal year 2018 is limited to $438,000.
55.26 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for by 
55.27 	section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary 
55.28 	contracts to which the commissioner is a party.

55.29 	Sec. 2. Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:
55.30 		Subd. 2.Standards. (a) An appropriation for asset preservation may be used only for a 
55.31 	capital expenditure on a capital asset previously owned by the state, within the meaning of 
55.32 	generally accepted accounting principles as applied to public expenditures. The commissioner 
55.33 	of natural resources will consult with the commissioner of management and budget to the 
56.1 	extent necessary to ensure this and will furnish the commissioner of management and budget 
56.2 	a list of projects to be financed from the account in order of their priority. The legislature 
56.3 	assumes that many projects for preservation and replacement of portions of existing capital 
56.4 	assets will constitute betterments and capital improvements within the meaning of the 
56.5 	Constitution and capital expenditures under generally accepted accounting principles, and 
56.6 	will be financed more efficiently and economically under this section than by direct 
56.7 	appropriations for specific projects.
56.8 	(b) An appropriation for asset preservation must not be used to acquire land or to acquire 
56.9 	or construct buildings or other facilities.
56.10 	(c) Capital budget expenditures for natural resource asset preservation and replacement 
56.11 	projects must be for one or more of the following types of capital projects that support the 
56.12 	existing programmatic mission of the department: code compliance including health and 
56.13 	safety, Americans with Disabilities Act requirements, hazardous material abatement, access 
56.14 	improvement, or air quality improvement; building energy efficiency improvements using 
56.15 	current best practices; building or infrastructure repairs necessary to preserve the interior 
56.16 	and exterior of existing buildings; projects to remove life safety hazards such as building 
56.17 	code violations or structural defects; or renovation of other existing improvements to land, 
56.18 	including but not limited to trails and bridges.
56.19 	(d) Up to ten percent of an appropriation awarded under this section may be used for 
56.20 	design costs for projects eligible to be funded from this account in anticipation of future 
56.21 	funding from the account.

56.22 	Sec. 3. Minnesota Statutes 2016, section 85.34, subdivision 1, is amended to read:
56.23 		Subdivision 1.Upper bluff; lease terms. The commissioner of natural resources with 
56.24 	the approval of the Executive Council may lease for purposes of restoration, preservation, 
56.25 	historical, recreational, educational, and commercial use and development, that portion of 
56.26 	Fort Snelling State Park known as the upper bluff consisting of officer's row, area J, the 
56.27 	polo grounds, the adjacent golf course, and all buildings and improvements located thereon, 
56.28 	all lying within an area bounded by Minneapolis-St. Paul International Airport, Trunk 
56.29 	Highways numbered 5 and 55, and Bloomington Road. The lease or leases shall be in a 
56.30 	form approved by the attorney general and for a term of not to exceed 99 years. The lease 
56.31 	or leases may provide for the provision of capital improvements or other performance by 
56.32 	the tenant or tenants in lieu of all or some of the payments of rent that would otherwise be 
56.33 	required. Notwithstanding the continuing ownership of the upper bluff by the state, any 
56.34 	lease of one or more buildings improved with state general obligation bond proceeds that 
57.1 	exceeds 50 years shall be treated as a sale of the buildings for purposes of section 16A.695, 
57.2 	subdivision 3. Any disposition proceeds payable to the commissioner upon execution of a 
57.3 	lease relating to state bond-financed buildings at the upper bluff shall be applied according 
57.4 	to section 16A.695, subdivision 3, and used to pay, redeem, or defease state general obligation 
57.5 	bonds issued for purposes of improving those buildings. Any lease revenues paid to the 
57.6 	commissioner subsequent to the payment, redemption, or defeasance of state general 
57.7 	obligation bonds shall be used by the commissioner as further described in this section.

57.8 	Sec. 4. [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY 
57.9 	ACCOUNT.
57.10 		Subdivision 1.Purpose. A hazardous materials rail safety program is established for 
57.11 	the purpose of reducing the risks associated with the transportation of hazardous material 
57.12 	by rail.
57.13 		Subd. 2.Creation of account. A hazardous materials rail safety program account is 
57.14 	established in the bond proceeds fund. Money in the account may only be used for capital 
57.15 	costs associated with planning, engineering, administration, and construction of public 
57.16 	highway-rail grade crossing improvements on rail corridors transporting crude oil and other 
57.17 	hazardous materials. Improvements may include upgrades to existing protection systems, 
57.18 	the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings 
57.19 	to full grade separations.
57.20 		Subd. 3.Grants. The commissioner may approve grants for financial assistance to 
57.21 	eligible applicants for capital costs associated with hazardous materials rail safety projects 
57.22 	on public highway-rail grade crossings. Qualifying capital costs include, but are not limited 
57.23 	to, upgrades to existing protection systems, the closing of crossings and necessary roadwork, 
57.24 	and reconstruction of at-grade crossings to full grade separations.
57.25 		Subd. 4.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
57.26 	that are responsible for establishing and maintaining public highway-rail grade crossings 
57.27 	on rail corridors transporting crude oil and other hazardous materials may apply to the 
57.28 	commissioner for financial assistance for the purposes specified in this section.
57.29 		Subd. 5.Criteria for grant award. The commissioner shall consider the following 
57.30 	criteria to evaluate applications for a grant award for a hazardous materials rail safety project:
57.31 	(1) whether the crossing was identified as a potential candidate for grade separation in 
57.32 	the department's crude by rail grade crossing study (Improvements to Highway Grade 
57.33 	Crossings and Rail Safety, December 2014);
58.1 	(2) roadway traffic volumes and speeds;
58.2 	(3) train volumes and speeds;
58.3 	(4) adjacent land use;
58.4 	(5) crash history;
58.5 	(6) use of the crossing by emergency vehicles;
58.6 	(7) use of the crossing by vehicles carrying hazardous materials; and
58.7 	(8) local financial contributions to the project.

58.8 	Sec. 5. Minnesota Statutes 2016, section 363A.36, is amended to read:
58.9 	363A.36 CERTIFICATES OF COMPLIANCE FOR PUBLIC CONTRACTS.
58.10 		Subdivision 1.Scope of application. (a) For all contracts for goods and services in 
58.11 	excess of $100,000, no department or agency of the state shall accept any bid or proposal 
58.12 	for a contract or agreement from any business having more than 40 full-time employees 
58.13 	within this state on a single working day during the previous 12 months, unless the 
58.14 	commissioner is in receipt of the business' affirmative action plan for the employment of 
58.15 	minority persons, women, and qualified disabled individuals. No department or agency of 
58.16 	the state shall execute any such contract or agreement until the affirmative action plan has 
58.17 	been approved by the commissioner. Receipt of a certificate of compliance issued by the 
58.18 	commissioner shall signify that a firm or business has an affirmative action plan that has 
58.19 	been approved by the commissioner. A certificate shall be valid for a period of four years. 
58.20 	A municipality as defined in section 466.01, subdivision 1, that receives state money for 
58.21 	any reason is encouraged to prepare and implement an affirmative action plan for the 
58.22 	employment of minority persons, women, and the qualified disabled and submit the plan 
58.23 	to the commissioner.
58.24 	(b) This paragraph applies to a contract for goods or services in excess of $100,000 to 
58.25 	be entered into between a department or agency of the state and a business that is not subject 
58.26 	to paragraph (a), but that has more than 40 full-time employees on a single working day 
58.27 	during the previous 12 months in the state where the business has its primary place of 
58.28 	business. A department or agency of the state may not execute a contract or agreement with 
58.29 	a business covered by this paragraph unless the business has a certificate of compliance 
58.30 	issued by the commissioner under paragraph (a) or the business certifies that it is in 
58.31 	compliance with federal affirmative action requirements.
59.1 	(c) This section does not apply to contracts entered into by the State Board of Investment 
59.2 	for investment options under section 356.645.
59.3 	(d) The commissioner shall issue a certificate of compliance or notice of denial within 
59.4 	15 days of the application submitted by the business or firm.
59.5 	(e) The requirements in paragraphs (a) and (b) apply to all contracts or agreements 
59.6 	executed by public officers or agencies for goods and services in excess of $100,000 for 
59.7 	projects subject to section 16A.695.
59.8 		Subd. 2.Filing fee; account; appropriation. The commissioner shall collect a $150 
59.9 	fee for each certificate of compliance issued by the commissioner or the commissioner's 
59.10 	designated agent. The proceeds of the fee must be deposited in a human rights fee special 
59.11 	revenue account. Money in the account is appropriated to the commissioner to fund the cost 
59.12 	of issuing certificates and investigating grievances.
59.13 		Subd. 3.Revocation of certificate. Certificates of compliance may be suspended or 
59.14 	revoked by the commissioner if a holder of a certificate has not made a good faith effort to 
59.15 	implement an affirmative action plan that has been approved by the commissioner. If a 
59.16 	contractor does not effectively implement an affirmative action plan approved by the 
59.17 	commissioner pursuant to subdivision 1, or fails to make a good faith effort to do so, the 
59.18 	commissioner may refuse to approve subsequent plans submitted by that firm or business.
59.19 		Subd. 4.Revocation of contract. A contract awarded by a department or agency of the 
59.20 	state, or any other public officer or agency subject to section 16A.695, may be terminated 
59.21 	or abridged by the department or agency, or other public officer or agency subject to section 
59.22 	16A.695, because of suspension or revocation of a certificate based upon a contractor's 
59.23 	failure to implement or make a good faith effort to implement an affirmative action plan 
59.24 	approved by the commissioner under this section. If a contract is awarded to a person who 
59.25 	does not have a contract compliance certificate required under subdivision 1, the 
59.26 	commissioner may void the contract on behalf of the state.
59.27 		Subd. 5.Technical assistance. In the case of a contractor whose certificate of compliance 
59.28 	has been suspended, the commissioner shall provide technical assistance that may enable 
59.29 	the contractor to be recertified within 90 days after the contractor's certificate has been 
59.30 	suspended.

59.31 	Sec. 6. Minnesota Statutes 2016, section 363A.44, subdivision 1, is amended to read:
59.32 		Subdivision 1.Scope. (a) No department, agency of the state, the Metropolitan Council, 
59.33 	or an agency subject to section 473.143, subdivision 1, shall execute a contract for goods 
60.1 	or services or an agreement for goods or services in excess of $500,000 with a business that 
60.2 	has 40 or more full-time employees in this state or a state where the business has its primary 
60.3 	place of business on a single day during the prior 12 months, unless the business has an 
60.4 	equal pay certificate or it has certified in writing that it is exempt. A certificate is valid for 
60.5 	four years.
60.6 	(b) This section does not apply to a business with respect to a specific contract if the 
60.7 	commissioner of administration determines that application of this section would cause 
60.8 	undue hardship to the contracting entity. This section does not apply to a contract to provide 
60.9 	goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I, 
60.10 	256L, and 268A, with a business that has a license, certification, registration, provider 
60.11 	agreement, or provider enrollment contract that is prerequisite to providing those goods and 
60.12 	services. This section does not apply to contracts entered into by the State Board of 
60.13 	Investment for investment options under section 352.965, subdivision 4.
60.14 	(c) The requirements in paragraph (a) apply to all contracts or agreements executed by 
60.15 	public officers or agencies for goods and services in excess of $500,000 for projects subject 
60.16 	to section 16A.695.

60.17 	Sec. 7. Minnesota Statutes 2016, section 446A.072, is amended to read:
60.18 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING PROGRAM.
60.19 		Subdivision 1.Establishment of program. The authority will establish a wastewater
60.20 	water infrastructure funding program to provide supplemental assistance to governmental 
60.21 	units receiving funding through the clean water revolving fund program, the drinking water 
60.22 	revolving fund program, or the United States Department of Agriculture Rural Economic 
60.23 	and Community Development's (USDA/RECD) Water and Waste Disposal Loans and 
60.24 	Grants program for the predesign, design, and construction of municipal wastewater treatment
60.25 	and drinking water systems, including purchase of land and easements. The purpose of the 
60.26 	program is to assist governmental units demonstrating financial need to build cost-effective 
60.27 	projects to address existing environmental or public health problems. To implement the 
60.28 	program, the authority shall establish a wastewater water infrastructure fund to provide 
60.29 	grants and loans for the purposes authorized under title VI of the Federal Water Pollution 
60.30 	Control Act and the federal Safe Drinking Water Act. The fund shall be credited with all 
60.31 	investment income from the fund and all repayments of loans, grants, and penalties.
60.32 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
60.33 	assistance, as provided in subdivision 5a to governmental units:
61.1 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
61.2 	the Department of Health's project priority list;
61.3 	(2) that demonstrate their projects are a cost-effective solution to an existing 
61.4 	environmental or public health problem; and
61.5 	(3) whose projects are approved by the USDA/RECD or certified by the commissioner 
61.6 	of the Pollution Control Agency or the Department of Health.
61.7 	(b) For a governmental unit receiving grant funding from the USDA/RECD, applications 
61.8 	must be made to the USDA/RECD with additional information submitted to the authority 
61.9 	as required by the authority. Eligible project costs and affordability criteria shall be 
61.10 	determined by the USDA/RECD.
61.11 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
61.12 	application must be made to the authority on forms prescribed by the authority for the clean 
61.13 	water revolving fund program or the drinking water revolving fund program with additional 
61.14 	information as required by the authority. In accordance with section 116.182, the Pollution 
61.15 	Control Agency or Department of Health shall:
61.16 	(1) calculate the essential project component percentage based on the portion of project 
61.17 	costs necessary to convey or treat the existing wastewater flows and loadings or, for drinking 
61.18 	water projects, to provide safe drinking water to meet existing needs, which must be 
61.19 	multiplied by the total project cost to determine the eligible project cost for the program 
61.20 	under this section; and
61.21 	(2) review and certify approved projects to the authority.
61.22 	(d) Each fiscal year the authority shall make funds available for projects based on their 
61.23 	ranking on the Pollution Control Agency's project priority list or the Department of Health's 
61.24 	project priority list. The authority shall reserve funds for a project when the applicant receives 
61.25 	a funding commitment from the United States Department of Agriculture Rural Development 
61.26 	(USDA/RECD) or submits plans and specifications to the project is certified by the Pollution 
61.27 	Control Agency or Department of Health. Funds must be reserved in an amount based on 
61.28 	the project cost estimate submitted to the authority prior to the appropriation of the funds 
61.29 	and awarded based on the lesser of that amount or the as-bid cost when the project is certified 
61.30 	or the as-bid cost, whichever is less.
61.31 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
61.32 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
61.33 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
62.1 	unit may not receive a grant under this paragraph for more than $4,000,000 $5,000,000 per 
62.2 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
62.3 	approved by law.
62.4 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
62.5 	section 446A.07, the authority may provide assistance under this section in the form of a 
62.6 	grant if the average annual residential wastewater system cost after completion of the project 
62.7 	would otherwise exceed 1.4 percent of the median household income of the project service 
62.8 	area. In determining whether the average annual residential wastewater system cost would 
62.9 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
62.10 	operating, and maintaining the wastewater system, including existing wastewater debt 
62.11 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
62.12 	service costs for the proposed project are calculated based on the maximum loan term 
62.13 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
62.14 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
62.15 	annual residential wastewater system cost to 1.4 percent of median household income in 
62.16 	the project service area, to a maximum of $4,000,000 $5,000,000 per project or $15,000
62.17 	$20,000 per existing connection, whichever is less, unless specifically approved by law. 
62.18 	The eligible project cost is determined by multiplying the total project costs minus any other 
62.19 	grants by the essential project component percentage calculated under subdivision 3, 
62.20 	paragraph (c), clause (1). In no case may the amount of the grant exceed 80 percent of the 
62.21 	eligible project cost.
62.22 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
62.23 	under section 446A.081, the authority may provide assistance under this section in the form 
62.24 	of a grant if the average annual residential drinking water system cost after completion of 
62.25 	the project would otherwise exceed 1.2 percent of the median household income of the 
62.26 	project service area. In determining whether the average annual residential drinking water 
62.27 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
62.28 	with building, operating, and maintaining the drinking water system, including existing 
62.29 	drinking water debt service, debt service on the eligible project cost, and operation and 
62.30 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
62.31 	maximum loan term permitted for the drinking water revolving fund loan under section 
62.32 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
62.33 	the amount needed to reduce the average annual residential drinking water system cost to 
62.34 	1.2 percent of median household income in the project service area, to a maximum of 
62.35 	$5,000,000 per project or $20,000 per existing connection, whichever is less, unless 
63.1 	specifically approved by law. The eligible project cost is determined by multiplying the 
63.2 	total project costs minus any other grants by the essential project component percentage 
63.3 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
63.4 	grant exceed 80 percent of the eligible project cost.
63.5 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a governmental 
63.6 	unit receiving supplemental assistance under this section after January 1, 2002, if the authority 
63.7 	determines that the governmental unit's construction and installation costs are significantly 
63.8 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
63.9 	limits that are more stringent than secondary treatment, the maximum award under this 
63.10 	section shall not be more than $25,000 per existing connection.
63.11 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan under 
63.12 	subdivision 5a that levies special assessments to repay the loan under subdivision 5a or 
63.13 	section 446A.07 may defer payment of such assessments under the provisions of sections 
63.14 	435.193 to 435.195.
63.15 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this section 
63.16 	by the authority to recipients must be made for eligible project costs as incurred by the 
63.17 	recipients, and must be made by the authority in accordance with the project financing 
63.18 	agreement and applicable state and federal laws and rules governing the payments.
63.19 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 475.54, 
63.20 	subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund 
63.21 	redemptions of the loans under this section. A governmental unit receiving a loan under 
63.22 	this section shall repay the loan in semiannual payment amounts determined by the authority. 
63.23 	The payment amount must be based on the average payments on the governmental unit's 
63.24 	clean water revolving fund loan or, if greater, the minimum amount required to fully repay 
63.25 	the loan by the maturity date. Payments must begin within one year of the date of the 
63.26 	governmental unit's final payment on the clean water revolving fund loan. The final maturity 
63.27 	date of the loan under this section must be no later than 20 years from the date of the first 
63.28 	payment on the loan under this section and no later than 40 years from the date of the first 
63.29 	payment on the clean water revolving fund loan.
63.30 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
63.31 	only after applying for grant funding from other sources and funding has been obtained, 
63.32 	rejected, or the authority has determined that the potential funding is unlikely.
63.33 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce the 
63.34 	sewer service charges of a significant wastewater contributor industrial user that has a 
64.1 	separate service charge agreement with the recipient, or a single user that has caused the 
64.2 	need for the project or whose current or projected flow and load exceed usage exceeds
64.3 	one-half of the current wastewater treatment plant's or drinking water system capacity.
64.4 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the authority, 
64.5 	in conjunction with the Pollution Control Agency and Department of Health, shall prepare 
64.6 	a report to the Finance Division of the senate Environment and Natural Resources Committee 
64.7 	and the house of representatives Environment and Natural Resources Finance Committee 
64.8 	on wastewater and drinking water funding assistance needs of governmental units under 
64.9 	this section.
64.10 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or grant 
64.11 	under this section shall establish a system replacement fund and shall annually deposit a 
64.12 	minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, or 
64.13 	replacement of the treatment wastewater or drinking water system, or replacement of the 
64.14 	treatment system at the end of its useful life. Money must remain in the account for the life 
64.15 	of the corresponding project loan from the authority or USDA/RECD, unless use of the 
64.16 	fund is approved in writing by the authority for major rehabilitation, expansion, or 
64.17 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
64.18 	during the life of the loan, each recipient shall submit a report to the authority regarding the 
64.19 	amount deposited and the fund balance for the prior calendar year. A recipient is not required 
64.20 	to maintain a fund balance greater than the amount of the grant received. Failure to comply 
64.21 	with the requirements of this subdivision shall result in the authority assessing a penalty 
64.22 	fee to the recipient equal to one percent of the supplemental assistance amount for each 
64.23 	year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
64.24 	required constitutes a default on the loan.
64.25 		Subd. 14.Consistency with land use plans. A governmental unit applying for a project 
64.26 	in an unsewered area shall include in its application to the authority a certification from the 
64.27 	county in which the project is located that:
64.28 	(1) the project is consistent with the county comprehensive land use plan, if the county 
64.29 	has adopted one;
64.30 	(2) the project is consistent with the county water plan, if the county has adopted one; 
64.31 	and
64.32 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
64.33 	exceed the requirements of Minnesota Rules, part 7082.0050.

65.1 	Sec. 8. Minnesota Statutes 2016, section 446A.073, is amended to read:
65.2 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
65.3 		Subdivision 1.Program established. When money is appropriated for grants under this 
65.4 	program, the authority shall award grants up to a maximum of $3,000,000$7,000,000 to 
65.5 	governmental units to cover up to one-half 80 percent of the cost of water infrastructure 
65.6 	projects made necessary by:
65.7 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
65.8 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
65.9 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
65.10 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
65.11 	Pollution Control Agency;
65.12 	(3) any other water quality-based effluent limit established under section 115.03, 
65.13 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution 
65.14 	Control Agency that exceeds secondary treatment limits; or
65.15 	(4) a total nitrogen concentration or mass limit of that requires discharging ten milligrams 
65.16 	per liter or less for a land-based treatment system at permitted design flow.
65.17 		Subd. 2.Grant application. Application for a grant must be made to the authority on 
65.18 	forms prescribed by the authority for the total maximum daily load grant program, with 
65.19 	additional information as required by the authority, including a project schedule and cost 
65.20 	estimate for the work necessary to comply with the point source wasteload allocation 
65.21 	requirements listed in subdivision 1. The Pollution Control Agency shall:
65.22 	(1) in accordance with section 116.182, calculate the essential project component 
65.23 	percentage, which must be multiplied by the total project cost to determine the eligible 
65.24 	project cost; and
65.25 	(2) review and certify to the authority those projects that have plans and specifications 
65.26 	approved under section 115.03, subdivision 1, paragraph (f).
65.27 		Subd. 3.Project priorities. When money is appropriated for grants under this program,
65.28 	The authority shall accept applications under this program during the month of July and. 
65.29 	When a project is certified by the Pollution Control Agency, the authority shall reserve 
65.30 	money for projects expected to proceed with construction by the end of the fiscal year the 
65.31 	project in the order listed on the Pollution Control Agency's project priority list and in an 
65.32 	amount based on the cost estimate submitted to the authority in the grant application when 
65.33 	the project is certified or the as-bid costs, whichever is less. Notwithstanding Minnesota 
66.1 	Rules, chapter 7077, the Pollution Control Agency may rank a drinking water infrastructure 
66.2 	project on the agency's project priority list if the project is necessary to meet an applicable 
66.3 	requirement in subdivision 1.
66.4 		Subd. 4.Grant approval. The authority must make a grant for an eligible project only 
66.5 	after:
66.6 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
66.7 	(2) the Pollution Control Agency has approved the as-bid costs and certified the grant 
66.8 	eligible portion of the project; and
66.9 	(3) the authority has determined that the additional financing necessary to complete the 
66.10 	project has been committed from other sources.
66.11 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible project 
66.12 	costs as incurred by the governmental unit and in accordance with a project financing 
66.13 	agreement and applicable state and federal laws and rules governing the payments.

66.14 	Sec. 9. Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:
66.15 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be used 
66.16 	as provided in the act, including the following uses:
66.17 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
66.18 	systems for drinking water systems, where the debt was incurred after the date of enactment 
66.19 	of the act, for the purposes of construction of the necessary improvements to comply with 
66.20 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
66.21 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
66.22 	access or reduce interest rates;
66.23 	(3) to provide a source of revenue or security for the payment of principal and interest 
66.24 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
66.25 	deposited in the fund;
66.26 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
66.27 	governmental unit or state agency;
66.28 	(5) to earn interest on fund accounts;
66.29 	(6) to pay the reasonable costs incurred by the authority, the Department of Employment 
66.30 	and Economic Development, and the Department of Health for conducting activities as 
66.31 	authorized and required under the act up to the limits authorized under the act;
67.1 	(7) to develop and administer programs for water system supervision, source water 
67.2 	protection, and related programs required under the act;
67.3 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal forgiveness 
67.4 	or grants to the extent permitted under the federal Safe Drinking Water Act and other federal 
67.5 	law, based on the criteria and requirements established for drinking water projects under 
67.6 	the water infrastructure funding program under section 446A.072;
67.7 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
67.8 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
67.9 	or energy efficiency improvements, or other environmentally innovative activities; and
67.10 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up to 
67.11 	a maximum of $10,000 for projects needed to comply with national primary drinking water 
67.12 	standards for an existing community or noncommunity public water system.
67.13 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be provided 
67.14 	if the average annual residential drinking water system cost after completion of the project 
67.15 	would otherwise exceed 1.2 percent of the median household income in the project service 
67.16 	area. In determining whether the average annual residential drinking water system cost 
67.17 	would exceed 1.2 percent, the authority must consider the total costs associated with building, 
67.18 	operating, and maintaining the drinking water system, including debt service and operation 
67.19 	and maintenance costs. Debt service costs for the proposed project must be calculated based 
67.20 	on the maximum loan term permitted for the drinking water revolving fund loan under this 
67.21 	section. The amount of the principal forgiveness or grant must be equal to 80 percent of the 
67.22 	amount needed to reduce the average annual residential drinking water system cost to 1.2 
67.23 	percent of median household income in the project service area, to a maximum of $4,000,000 
67.24 	or $15,000 per connection, whichever is less, and not to exceed 80 percent of the total project 
67.25 	cost.
67.26 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not 
67.27 	exceed 25 percent of the eligible project costs as determined by the Department of Health 
67.28 	for project components directly related to green infrastructure, water or energy efficiency 
67.29 	improvements, or other environmentally innovative activities, up to a maximum of 
67.30 	$1,000,000.
67.31 	(d) The authority may reduce the percentage of median household income at which a 
67.32 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which principal 
67.33 	forgiveness or grants could be provided under paragraph (b) if it determines that the federal 
67.34 	money allotted to the state cannot be fully utilized without the reduction. If it determines 
68.1 	that the reduction is necessary to fully utilize the federal money, the authority must effect 
68.2 	the change through its approval of the annual intended use plan.

68.3 	Sec. 10. Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:
68.4 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
68.5 	principal amount that the authority determines necessary to provide sufficient funds for 
68.6 	achieving its purposes, including the making of loans and purchase of securities, the payment 
68.7 	of interest on bonds of the authority, the establishment of reserves to secure its bonds, the 
68.8 	payment of fees to a third party providing credit enhancement, and the payment of all other 
68.9 	expenditures of the authority incident to and necessary or convenient to carry out its corporate 
68.10 	purposes and powers, but not including the making of grants. Bonds of the authority may 
68.11 	be issued as bonds or notes or in any other form authorized by law. The principal amount 
68.12 	of bonds issued and outstanding under this section at any time may not exceed 
68.13 	$1,500,000,000 $2,000,000,000, excluding bonds for which refunding bonds or crossover 
68.14 	refunding bonds have been issued, and excluding any bonds issued for the credit enhanced 
68.15 	bond program or refunding or crossover refunding bonds issued under the program. The 
68.16 	principal amount of bonds issued and outstanding under section 446A.087, may not exceed 
68.17 	$500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds 
68.18 	have been issued.

68.19 	Sec. 11. Minnesota Statutes 2016, section 462A.37, subdivision 1, is amended to read:
68.20 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
68.21 	the meanings given.
68.22 	(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
68.23 	(c) "Community land trust" means an entity that meets the requirements of section 
68.24 	462A.31, subdivisions 1 and 2.
68.25 	(d) "Debt service" means the amount payable in any fiscal year of principal, premium, 
68.26 	if any, and interest on housing infrastructure bonds and the fees, charges, and expenses 
68.27 	related to the bonds.
68.28 	(e) "Foreclosed property" means residential property where foreclosure proceedings 
68.29 	have been initiated or have been completed and title transferred or where title is transferred 
68.30 	in lieu of foreclosure.
68.31 	(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter 
68.32 	that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the Internal 
69.1 	Revenue Code, finance qualified residential rental projects within the meaning of Section 
69.2 	142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private activity 
69.3 	bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the purpose 
69.4 	of financing or refinancing affordable housing authorized under this chapter.
69.5 	(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
69.6 	(h) "Senior" means a person 55 years of age or older with an annual income not greater 
69.7 	than 50 percent of:
69.8 	(1) the metropolitan area median income for persons in the metropolitan area; or
69.9 	(2) the statewide median income for persons outside the metropolitan area.
69.10 	(i) "Senior housing" means housing intended and operated for occupancy by at least one 
69.11 	senior per unit with at least 80 percent of the units occupied by at least one senior per unit, 
69.12 	and for which there is publication of, and adherence to, policies and procedures that 
69.13 	demonstrate an intent by the owner or manager to provide housing for seniors. Senior 
69.14 	housing may be developed in conjunction with and as a distinct portion of mixed-income 
69.15 	senior housing developments that use a variety of public or private financing sources.
69.16 	(h) (j) "Supportive housing" means housing that is not time-limited and provides or 
69.17 	coordinates with linkages to services necessary for residents to maintain housing stability 
69.18 	and maximize opportunities for education and employment.

69.19 	Sec. 12. Minnesota Statutes 2016, section 462A.37, subdivision 2, is amended to read:
69.20 		Subd. 2.Authorization. (a) The agency may issue up to $30,000,000 in aggregate 
69.21 	principal amount of housing infrastructure bonds in one or more series to which the payment 
69.22 	made under this section may be pledged. The housing infrastructure bonds authorized in 
69.23 	this subdivision may be issued to fund loans, on terms and conditions the agency deems 
69.24 	appropriate, made for one or more of the following purposes:
69.25 	(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive 
69.26 	housing for individuals and families who are without a permanent residence;
69.27 	(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned 
69.28 	housing to be used for affordable rental housing and the costs of new construction of rental 
69.29 	housing on abandoned or foreclosed property where the existing structures will be demolished 
69.30 	or removed;
70.1 	(3) to finance that portion of the costs of acquisition of property that is attributable to 
70.2 	the land to be leased by community land trusts to low- and moderate-income homebuyers; 
70.3 	and
70.4 	(4) to finance the costs of acquisition and rehabilitation of federally assisted rental 
70.5 	housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 
70.6 	of federally assisted rental housing, including providing funds to refund, in whole or in part, 
70.7 	outstanding bonds previously issued by the agency or another government unit to finance 
70.8 	or refinance such costs.; and
70.9 	(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction 
70.10 	of senior housing.
70.11 	(b) Among comparable proposals for permanent supportive housing, preference shall 
70.12 	be given to permanent supportive housing for veterans and other individuals or families 
70.13 	who:
70.14 	(1) either have been without a permanent residence for at least 12 months or at least four 
70.15 	times in the last three years; or
70.16 	(2) are at significant risk of lacking a permanent residence for 12 months or at least four 
70.17 	times in the last three years.
70.18 	(c) Among comparable proposals for senior housing, the agency must give priority to 
70.19 	requests for projects that:
70.20 	(1) demonstrate a commitment to maintaining the housing financed as affordable to 
70.21 	seniors;
70.22 	(2) leverage other sources of funding to finance the project, including the use of 
70.23 	low-income housing tax credits;
70.24 	(3) provide access to services to residents and demonstrate the ability to increase physical 
70.25 	supports and support services as residents age and experience increasing levels of disability;
70.26 	(4) provide a service plan containing the elements of clause (3) reviewed by the housing 
70.27 	authority, economic development authority, public housing authority, or community 
70.28 	development agency that has an area of operation for the jurisdiction in which the project 
70.29 	is located; and
70.30 	(5) include households with incomes that do not exceed 30 percent of the median 
70.31 	household income for the metropolitan area.
71.1 	To the extent practicable, the agency shall balance the loans made between projects in the 
71.2 	metropolitan area and projects outside the metropolitan area. Of the loans made to projects 
71.3 	outside the metropolitan area, the agency shall, to the extent practicable, balance the loans 
71.4 	made between projects in counties or cities with a population of 20,000 or less, as established 
71.5 	by the most recent decennial census, and projects in counties or cities with populations in 
71.6 	excess of 20,000.

71.7 	Sec. 13. Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:
71.8 		Subd. 2a.Additional authorization. In addition to the amount authorized in subdivision 
71.9 	2, the agency may issue up to $80,000,000 $97,000,000 of housing infrastructure bonds in 
71.10 	one or more series to which the payments made under this section may be pledged.

71.11 	Sec. 14. Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:
71.12 		Subd. 2b.Additional authorization. In addition to the amount authorized in subdivisions 
71.13 	2 and 2a, the agency may issue up to $10,000,000 $13,000,000 of housing infrastructure 
71.14 	bonds in one or more series to which the payments made under this section may be pledged.

71.15 	Sec. 15. Minnesota Statutes 2016, section 462A.37, is amended by adding a subdivision 
71.16 	to read:
71.17 		Subd. 2c.Additional authorization. In addition to the amount authorized in subdivisions 
71.18 	2, 2a, and 2b, the agency may issue up to $35,000,000 in housing infrastructure bonds in 
71.19 	one or more series to which the payments under this section may be pledged.

71.20 	Sec. 16. Minnesota Statutes 2016, section 462A.37, subdivision 5, is amended to read:
71.21 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
71.22 	commissioner of management and budget the actual amount of annual debt service on each 
71.23 	series of bonds issued under subdivisions 2a and, 2b, and 2c.
71.24 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
71.25 	bonds issued under subdivision 2a remain outstanding, the commissioner of management 
71.26 	and budget must transfer to the housing infrastructure bond account established under section 
71.27 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 
71.28 	annually. The amounts necessary to make the transfers are appropriated from the general 
71.29 	fund to the commissioner of management and budget.
71.30 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
71.31 	bonds issued under subdivision 2b remain outstanding, the commissioner of management 
72.1 	and budget must transfer to the housing infrastructure bond account established under section 
72.2 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 
72.3 	annually. The amounts necessary to make the transfers are appropriated from the general 
72.4 	fund to the commissioner of management and budget.
72.5 	(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure 
72.6 	bonds issued under subdivision 2c remain outstanding, the commissioner of management 
72.7 	and budget must transfer to the housing infrastructure bond account established under section 
72.8 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $1,250,000 
72.9 	in fiscal year 2018 and $2,500,000 annually thereafter. The amounts necessary to make the 
72.10 	transfers are appropriated from the general fund to the commissioner of management and 
72.11 	budget.
72.12 	(d) (e) The agency may pledge to the payment of the housing infrastructure bonds the 
72.13 	payments to be made by the state under this section.

72.14 	Sec. 17. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to read:

72.15
72.16	Subd. 12.West St. Paul - North UrbanRiver to 
River Regional Trail Bridge Greenway
 				2,000,000
	
72.17 	For a grant to the city of West St. Paul to 
72.18 	predesign, design, and construct a pedestrian 
72.19 	bridge for the North Urban Regional Trail as 
72.20 	an overpassgrade-separated crossing of Robert 
72.21 	Street in the area near Wentworth Avenue in 
72.22 	West St. Paul for the River to River Regional 
72.23 	Greenway. This appropriation may also be 
72.24 	used to acquire property or purchase 
72.25 	rights-of-way needed for bridge construction. 
72.26 	A nonstate match is not required.

72.27 	Sec. 18. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7, 
72.28 	is amended to read:

72.29	Subd. 7.Richfield - 77th Street Underpass
 				10,000,000
	
72.30 	For a grant to the city of Richfield for 
72.31 	right-of-way acquisition and construction of
72.32 	for an extension of 77th Street under marked 
72.33 	Trunk Highway 77/Cedar Avenue in the city 
73.1 	of Richfield to provide local and regional 
73.2 	access between Richfield, the Minneapolis/St. 
73.3 	Paul International Airport, the city of 
73.4 	Bloomington, and the Mall of America. After 
73.5 	right-of-way acquisition is completed, the city 
73.6 	may use any remaining money appropriated 
73.7 	in this subdivision for construction of the 
73.8 	extension. Notwithstanding Minnesota 
73.9 	Statutes, section 16A.642, the bond sale 
73.10 	authorization and appropriation of bond 
73.11 	proceeds for the project in this subdivision are 
73.12 	available until December 31, 2021.

73.13 	Sec. 19.  REPEALER.
 73.14 	Minnesota Statutes 2016, section 123A.446, is repealed.

73.15 	Sec. 20. EFFECTIVE DATE.
 73.16 	Except as otherwise provided, this article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 17-4032 

123A.446 STATE BOND AUTHORIZATION.
To provide money for the cooperative secondary facilities grant program, the commissioner of management and budget, upon the request of the commissioner of education, shall issue and sell bonds of the state up to the amount of $14,000,000 in the manner, upon the terms and with the effect prescribed by sections 16A.631 to 16A.675 and the Minnesota Constitution, article XI, sections 4 to 7.