HF 2880

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/16/2023 05:26pm

A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and for other improvements of a capital nature with certain
conditions; establishing new programs and modifying existing programs; modifying
prior appropriations; authorizing the sale and issuance of state bonds; appropriating
money; amending Minnesota Statutes 2022, sections 16A.632, subdivisions 2, 4;
16A.966, subdivision 2; 16B.307; 174.38, subdivisions 1, 3; 256E.36, subdivision
1; 256E.37, subdivision 1; 446A.081, subdivisions 8, 9; 462A.37, subdivisions 2,
5, by adding a subdivision; Laws 2018, chapter 214, article 1, section 19,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 16B;
116; 174; repealing Minnesota Statutes 2022, sections 16A.93; 16A.94; 16A.96.

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

ARTICLE 1

APPROPRIATIONS

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

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

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

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

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

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

new text begin (b) Unless otherwise specified, appropriations in this article from the general fund are
made in fiscal year 2024 and are onetime appropriations.
new text end

new text begin APPROPRIATIONS new text end

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

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

new text begin $ new text end

new text begin 262,760,000 new text end

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

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

new text begin 170,160,000 new text end

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

new text begin $129,780,000 of this appropriation is from the
general fund. The Board of Regents may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 135A.046, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 135A.046, subdivision 3, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Twin Cities - Chemistry Undergraduate Teaching Laboratory new text end

new text begin 92,600,000 new text end

new text begin To construct, furnish, and equip the renovation
of and an addition to Fraser Hall for an
undergraduate chemistry teaching laboratory
facility on the Twin Cities campus. This
project includes the demolition of obsolete
portions of Fraser Hall.
new text end

new text begin Subd. 4. new text end new text begin University Share new text end

new text begin Except for the appropriations for HEAPR, the
appropriations in this section are intended to
cover approximately two-thirds of the cost of
each project. The remaining costs must be paid
from university sources.
new text end

new text begin Subd. 5. new text end new text begin Unspent Appropriations new text end

new text begin Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the Board of Regents must use
any money remaining in the appropriation for
that project for HEAPR under Minnesota
Statutes, section 135A.046. The Board of
Regents must report by February 1 of each
even-numbered year to the chairs of the house
of representatives and senate committees with
jurisdiction over capital investment and higher
education finance, and to the chairs of the
house of representatives Ways and Means
Committee and the senate Finance Committee,
on how the remaining money has been
allocated or spent.
new text end

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

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

new text begin $ new text end

new text begin 321,125,000 new text end

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

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

new text begin 146,079,000 new text end

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

new text begin $111,414,000 of this appropriation is from the
general fund. The Board of Trustees may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 135A.046, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 135A.046, subdivision 3, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Minnesota State University, Moorhead new text end

new text begin 23,099,000 new text end

new text begin To design, renovate, expand, and equip Weld
Hall, including the construction of additions
to improve building accessibility at Minnesota
State University, Moorhead.
new text end

new text begin Subd. 4. new text end new text begin Inver Hills Community College new text end

new text begin 22,025,000 new text end

new text begin To design, renovate, and equip the Technology
and Business Center building, including the
construction of a link to Heritage Hall at Inver
Hills Community College.
new text end

new text begin Subd. 5. new text end new text begin Minneapolis Community and Technical College new text end

new text begin 20,457,000 new text end

new text begin To design, renovate, and equip phases 1 and
2 of the Management Education Center shared
with Metropolitan State University on the
Minneapolis Community and Technical
College campus to support baccalaureate
programming expansion.
new text end

new text begin Subd. 6. new text end new text begin Pine Technical and Community College new text end

new text begin 21,468,000 new text end

new text begin To design, renovate, construct, and equip the
renovation of the main building allied health
space and an addition of the technical trade
and applied learning labs at Pine Technical
and Community College.
new text end

new text begin Subd. 7. new text end new text begin Saint Paul College new text end

new text begin 1,671,000 new text end

new text begin To design the renovation of classroom, lab,
and student services space and design the
demolition of the College Learning Center
Building which will be replaced by the
renovations at the Saint Paul College campus.
new text end

new text begin Subd. 8. new text end new text begin Northeast Higher Education District - Vermilion Community College new text end

new text begin 3,633,000 new text end

new text begin To design, renovate, and equip the classroom
building and common space at Northeast
Higher Education District - Vermilion
Community College.
new text end

new text begin Subd. 9. new text end new text begin Central Lakes College new text end

new text begin 11,591,000 new text end

new text begin To design, renovate, and equip the student
services, academic support areas, and athletics
space of the Central Lakes College, Brainerd
campus.
new text end

new text begin Subd. 10. new text end new text begin Northland Community and Technical College new text end

new text begin 3,282,000 new text end

new text begin To design, renovate, and equip teaching and
learning lab space at Northland Community
and Technical College, East Grand Forks
campus.
new text end

new text begin Subd. 11. new text end new text begin Minnesota State University, Mankato new text end

new text begin 8,460,000 new text end

new text begin To design and renovate space in the lower
level of the Clinical Sciences Building; to
design the demolition and replacement of
Armstrong Hall; and to design the partial
renovation of Wiecking Center, Performing
Arts Center, the Library, and Morris Hall at
Minnesota State University, Mankato.
new text end

new text begin Subd. 12. new text end new text begin Winona State University new text end

new text begin 4,866,000 new text end

new text begin To design a net zero energy building that will
contain flexible classroom space and student
support services and to design the demolition
of Gildemeister and Watkins Halls which will
be replaced by the net zero energy building at
Winona State University.
new text end

new text begin Subd. 13. new text end new text begin Lake Superior College new text end

new text begin 8,316,000 new text end

new text begin To design and construct the renovation of
integrated manufacturing workforce labs and
related support space at Lake Superior
College.
new text end

new text begin Subd. 14. new text end new text begin Metropolitan State University new text end

new text begin 5,196,000 new text end

new text begin To design, renovate, and equip space in New
Main Hall for the cybersecurity program at
Metropolitan State University.
new text end

new text begin Subd. 15. new text end new text begin Alexandria Technical and Community College new text end

new text begin 955,000 new text end

new text begin To design the renovation of student services
spaces, the demolition of obsolete campus
space, which will be replaced by the new
renovated student services space and the new
Transportation Center, and to design the
construction of the Transportation Center at
Alexandria Technical and Community
College.
new text end

new text begin Subd. 16. new text end new text begin Riverland Community College new text end

new text begin 12,084,000 new text end

new text begin To design, renovate, and equip student
services space at Riverland Community
College, Austin campus.
new text end

new text begin Subd. 17. new text end new text begin Southwest Minnesota State University new text end

new text begin 1,327,000 new text end

new text begin To design the renovation and construction of
the Wellness and Human Performance Center
at Southwest Minnesota State University.
new text end

new text begin Subd. 18. new text end new text begin St. Cloud State University new text end

new text begin 5,450,000 new text end

new text begin To design, renovate, and equip space for the
School of Health and Human Services, and to
design the demolition and replacement of the
Education Building with the new School of
Education Building and new Early Learning
Center at St. Cloud State University.
new text end

new text begin Subd. 19. new text end new text begin Rochester Community and Technical College new text end

new text begin 1,546,000 new text end

new text begin To design the renovation of space for Career
and Technical Education programs at the
Heintz Center at Rochester Community and
Technical College.
new text end

new text begin Subd. 20. new text end new text begin Minnesota West Community and Technical College new text end

new text begin 2,253,000 new text end

new text begin To design the renovation of nursing spaces at
the Granite Falls and Worthington campuses;
design the renovation of student services space
at the Granite Falls campus; and design the
demolition, renovation, and construction of
space for the Public Peace Officer program at
the Worthington campus of Minnesota West
Community and Technical College, including
the design of any demolition required for the
construction.
new text end

new text begin Subd. 21. new text end new text begin Ridgewater College new text end

new text begin 17,367,000 new text end

new text begin To design, renovate, and equip space for
automation, nursing, allied health, and early
childhood programs, as well as general
classroom and student services space, at
Ridgewater College, Hutchinson campus.
new text end

new text begin Subd. 22. new text end new text begin Debt Service new text end

new text begin (a) Except as provided in paragraph (b), the
Board of Trustees shall pay the debt service
on one-third of the principal amount of state
bonds sold to finance projects authorized by
this section. After each sale of general
obligation bonds, the commissioner of
management and budget shall notify the board
of the amounts assessed for each year for the
life of the bonds.
new text end

new text begin (b) The board need not pay debt service on
bonds sold to finance HEAPR. Where a
nonstate match is required, the debt service is
due on a principal amount equal to one-third
of the total project cost, less the match
committed before the bonds are sold.
new text end

new text begin (c) The commissioner of management and
budget shall reduce the board's assessment
each year by one-third of the net income from
investment of general obligation bond
proceeds in proportion to the amount of
principal and interest otherwise required to be
paid by the board. The board shall pay its
resulting net assessment to the commissioner
of management and budget by December 1
each year. If the board fails to make a payment
when due, the commissioner of management
and budget shall reduce allotments for
appropriations from the general fund otherwise
available to the board and apply the amount
of the reduction to cover the missed debt
service payment. The commissioner of
management and budget shall credit the
payments received from the board to the bond
debt service account in the state bond fund
each December 1 before money is transferred
from the general fund under Minnesota
Statutes, section 16A.641, subdivision 10.
new text end

new text begin Subd. 23. new text end new text begin Unspent Appropriations new text end

new text begin (a) Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the board must use any money
remaining in the appropriation for that project
for HEAPR under Minnesota Statutes, section
135A.046. The Board of Trustees must report
by February 1 of each even-numbered year to
the chairs of the house of representatives and
senate committees with jurisdiction over
capital investment and higher education
finance and to the chairs of the house of
representatives Ways and Means Committee
and the senate Finance Committee, on how
the remaining money has been allocated or
spent.
new text end

new text begin (b) The unspent portion of an appropriation
for a project in this section that is complete is
available for HEAPR under this subdivision,
at the same campus as the project for which
the original appropriation was made and the
debt service requirement under this section is
reduced accordingly. Minnesota Statutes,
section 16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.
new text end

Sec. 4. new text begin EDUCATION new text end

new text begin $ new text end

new text begin 1,200,000 new text end

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

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

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

new text begin $ new text end

new text begin 10,837,000 new text end

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

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

new text begin 2,760,000 new text end

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

new text begin $2,105,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the commissioner may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Dorm Renovations and Predesign new text end

new text begin 7,837,000 new text end

new text begin To predesign, design, construct, furnish, and
equip the renovation of Kramer Hall, Brandeen
Hall, and Rode Hall Dorms on the Blind
School Campus, including but not limited to
abatement of asbestos and hazardous
materials, construction, and renovations
required to improve safety and security for
occupants, meet ADA requirements, meet
energy saving requirements, and improve
indoor air quality standards. This appropriation
also includes money to predesign, design,
construct, furnish, and equip the renovation
of Pollard Hall Dorm on the Deaf School
Campus, including but not limited to
abatement of asbestos and hazardous
materials, construction, and renovations
required to improve safety and security for
occupants, meet ADA requirements, meet
energy saving requirements, and improve
indoor air quality standards.
new text end

new text begin Subd. 4. new text end new text begin Student Center Predesign new text end

new text begin 240,000 new text end

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

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

new text begin $ new text end

new text begin 3,600,000 new text end

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

new text begin $2,746,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the commissioner may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

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

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

new text begin $ new text end

new text begin 310,251,000 new text end

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

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

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

new text begin 132,960,000 new text end

new text begin For the preservation and replacement of
state-owned facilities and recreational assets
operated by the commissioner of natural
resources to be spent in accordance with
Minnesota Statutes, section 84.946.
Notwithstanding Minnesota Statutes, section
84.946, the commissioner may use this
appropriation to replace buildings if,
considering the embedded energy in the
building, that is the most energy-efficient and
carbon-reducing method of renovation.
new text end

new text begin $101,408,000 of this appropriation is from the
general fund. The commissioner may use the
general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 84.946, that do not constitute
betterments and capital improvements within
the meaning of article XI, section 5, clause
(a), of the constitution. The report required
under Minnesota Statutes, section 84.946,
subdivision 4, shall also include a list of
projects that have been paid for with this
appropriation from the general fund.
new text end

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

new text begin 43,680,000 new text end

new text begin For acquisition, predesign, design, and
construction to replace existing facilities that
no longer meet the business needs of the
department or to acquire or construct new
facilities. This appropriation includes money
for construction at the drill core facility in
Hibbing and for the predesign, design, and
construction of facility capital improvements
and associated facility components at the
Badoura State Forest Nursery and the
Waterville fish hatchery. $33,315,000 of this
appropriation is from the general fund.
new text end

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

new text begin 18,000,000 new text end

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

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

new text begin Subd. 5. new text end new text begin Wildfire Aviation Infrastructure new text end

new text begin 9,360,000 new text end

new text begin For site preparation, predesign, design,
engineering, demolition, construction,
furnishing, and equipping new public safety
facilities for aerial wildfire suppression, which
may include grants to airport authorities. This
appropriation includes money for the Hibbing
and Brainerd airport and air tanker base
buildings and associated utilities and systems.
new text end

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

new text begin 6,000,000 new text end

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

new text begin Subd. 7. new text end new text begin Dam Renovation, Repair, Removal new text end

new text begin 9,600,000 new text end

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

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

new text begin Subd. 8. new text end new text begin Flood Hazard Mitigation new text end

new text begin 24,000,000 new text end

new text begin (a) For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161. To the extent practical, levee
projects shall meet the state standard of three
feet above the 100-year flood elevation.
new text end

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

new text begin (c) This appropriation may be used for projects
in the following political subdivisions: Austin,
Breckenridge, Carver, Golden Valley, Lake
Shamineau Lake Improvement District,
Moorhead, and Newfolden.
new text end

new text begin (d) This appropriation may also be used for
projects in the following watershed districts:
Bois de Sioux Watershed District for the
Redpath impoundment project, Buffalo-Red
River Watershed District, Cedar River
Watershed District, Lower Minnesota River
Watershed District, Middle Snake Tamarac
Rivers Watershed District, Red Lake
Watershed District, Roseau River Watershed
District, Two Rivers Watershed District,
Upper Minnesota River Watershed District,
Valley Branch Watershed District and Wild
Rice River Watershed District.
new text end

new text begin (e) For any project listed in this subdivision
that the commissioner determines is not ready
to proceed, does not have the nonstate match
committed, or does not expend all the money
granted to it, the commissioner may allocate
that project's unexpended money to a priority
project on the commissioner's list.
new text end

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

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

new text begin Subd. 9. new text end new text begin Lake Vermilion-Soudan Underground Mine State Park new text end

new text begin 14,400,000 new text end

new text begin For the design and construction of a visitor
center, camping facilities, trails, and
rehabilitation of a fire tower and related
infrastructure at Lake Vermilion-Soudan
Underground Mine State Park.
new text end

new text begin Subd. 10. new text end new text begin Parks and Trails Local and Regional Recreation Grants new text end

new text begin 1,200,000 new text end

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

new text begin Subd. 11. new text end new text begin Minnesota Releaf Program new text end

new text begin 6,000,000 new text end

new text begin For grants to cities, counties, townships, and
park and recreation boards in cities of the first
class, to remove and plant shade trees on
public land to provide environmental benefits;
replace trees lost to forest pests, disease, or
storm; or to establish a more diverse
community forest better able to withstand
disease and forest pests. For purposes of this
appropriation, "shade tree" means a woody
perennial grown primarily for aesthetic or
environmental purposes with minimal to
residual timber value. Any tree planted with
money under this subdivision must be a
climate-adapted species to Minnesota.
new text end

new text begin Subd. 12. new text end new text begin Upper Sioux Agency State Park Bond Defeasance new text end

new text begin 250,000 new text end

new text begin From the general fund to the commissioner of
management and budget to prepay and defease
any outstanding state general obligation bonds
used for improvements and betterments at
Upper Sioux Agency State Park, including
Minnesota Historical Society property located
within the park's boundaries, and other
associated financing costs. This amount may
be deposited, invested, and applied to
accomplish the purposes of this section as
provided in Minnesota Statutes, section
475.67, subdivisions 5 to 10 and 13. Upon the
prepayment and defeasance of all associated
debt on the real property and improvements,
all conditions set forth in Minnesota Statutes,
section 16A.695, subdivision 3, shall be
deemed to have been satisfied and the real
property and improvements shall no longer
constitute state bond financed property under
Minnesota Statutes, section 16A.695.
new text end

new text begin Subd. 13. new text end new text begin St. James Open Pit Mine Mitigation new text end

new text begin 2,500,000 new text end

new text begin For predesign and design of capital
improvement projects to mitigate the imminent
threat to public safety, property, and regional
water quality from the rising water levels at
the St. James open pit mine complex.
new text end

new text begin Subd. 14. new text end new text begin Heartland Trail new text end

new text begin 550,000 new text end

new text begin For construction of a trail segment of the
Heartland Trail between Detroit Lakes and
Frazee.
new text end

new text begin Subd. 15. new text end new text begin Cuyuna Lakes State Trail new text end

new text begin 2,200,000 new text end

new text begin To design and construct a multiuse trail
segment within the city of Brainerd as an
extension of the Cuyuna Lakes State Trail.
new text end

new text begin Subd. 16. new text end new text begin Administration of Local Grants new text end

new text begin 204,000 new text end

new text begin From the general fund for the administration
of direct grants included in the capital budget.
new text end

new text begin Subd. 17. new text end new text begin Cannon Falls; John Burch Park new text end

new text begin 565,000 new text end

new text begin For a grant to the city of Cannon Falls for
design, engineering, construction, and
rehabilitation of capital improvements at John
Burch Park. This appropriation includes
money for reconstruction of a limestone
retaining wall and concrete seating area;
spectator safety improvements, including a
safety railing; and replacement of the first base
dugout.
new text end

new text begin Subd. 18. new text end new text begin Moorhead; Flood Mitigation Improvements new text end

new text begin 24,000,000 new text end

new text begin For a grant to the city of Moorhead to design,
construct, and equip flood mitigation
infrastructure and to acquire at-risk
flood-prone properties in the city of Moorhead
to respond to periodic severe flood events.
new text end

new text begin Subd. 19. new text end new text begin Otter Tail County; Perham to Pelican Rapids Regional Trail new text end

new text begin 939,000 new text end

new text begin For a grant to Otter Tail County to construct
the Glacial Edge Regional Trail segment
located within Maplewood State Park.
new text end

new text begin Subd. 20. new text end new text begin Red Wing; Riverfront Trail new text end

new text begin 600,000 new text end

new text begin For a grant to the city of Red Wing to design,
engineer, construct, furnish, and equip the Red
Wing Riverfront Trail from the He Mni
Can/Barn Bluff Park Trailhead to Colvill Park
in Red Wing.
new text end

new text begin Subd. 21. new text end new text begin Red Wing; Upper Harbor new text end

new text begin 4,633,000 new text end

new text begin For a grant to the city of Red Wing for design,
engineering, and construction of Phase II
capital improvements along the Mississippi
River riverfront for the Upper Harbor - Bay
Point Renewal project.
new text end

new text begin Subd. 22. new text end new text begin Shakopee; Cultural Corridor and Minnesota Riverbank Stabilization and Access new text end

new text begin 8,260,000 new text end

new text begin For a grant to the city of Shakopee to
predesign, design, and construct the restoration
of the Minnesota River riverbank from the
western edge of downtown Shakopee to The
Landing in the Three Rivers Park District, and
to predesign, design, construct, furnish, and
equip associated cultural and recreational
amenities along the river.
new text end

new text begin Subd. 23. new text end new text begin Silver Bay; Multimodal Trailhead Center new text end

new text begin 350,000 new text end

new text begin For a grant to the city of Silver Bay to
predesign, design, construct, furnish, and
equip a multimodal trailhead center for various
hiking, bicycling, snowmobile, and all-terrain
vehicle trails that converge in the area. This
appropriation includes money for separated
trail access for motorized and nonmotorized
users; open space for trail users; parking; a
wayside rest area, including a playground and
picnic area; and a new trailhead center
building that includes lavatories and showers.
new text end

new text begin Subd. 24. new text end new text begin Unspent Appropriations new text end

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

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

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

new text begin $ new text end

new text begin 81,524,000 new text end

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

new text begin Subd. 2. new text end new text begin Stormwater Construction Grants new text end

new text begin 25,210,000 new text end

new text begin For grants to eligible political subdivisions for
stormwater projects under Minnesota Statutes,
section 116.196. Of this amount, $1,210,000
is from the general fund for technical
assistance and grant administration under
Minnesota Statutes, section 116.196.
new text end

new text begin Subd. 3. new text end new text begin Capital Assistance Program: Organics Capacity new text end

new text begin 12,000,000 new text end

new text begin For capital assistance grants to local
governments to construct new or expand
capacity at food rescue, compost, and
anaerobic digestion facilities that will utilize
food waste, buying capital equipment to run
facilities more efficiently, and to add organics
capacity at transfer stations under Minnesota
Statutes, section 115A.54.
new text end

new text begin Subd. 4. new text end new text begin Addressing Legacy Contaminants: Red Oaks Neighborhood, Andover new text end

new text begin 6,100,000 new text end

new text begin For a grant to the city of Andover under
Minnesota Statutes, section 116.16, for the
design and construction of new municipal
water mains in the city of Andover where
testing has found contamination in private
drinking water wells. Notwithstanding
Minnesota Statutes, section 115B.17,
subdivision 6 or 16, any money recovered by
the Pollution Control Agency in a civil action
for expenses paid for under this appropriation
shall be transferred to the commissioner of
management and budget and applied toward
principal and interest on outstanding bonds.
new text end

new text begin $3,000,000 of this appropriation is from the
general fund. The city of Andover may use
the general fund appropriation for the design
and construction of new water service lines
on private property that connect to the
municipal water mains and for capping private
wells.
new text end

new text begin Subd. 5. new text end new text begin Capital Assistance Program: Pope Douglas Solid Waste Management new text end

new text begin 12,833,000 new text end

new text begin For a grant to the Pope-Douglas Solid Waste
Management Joint Powers Board under the
solid waste capital assistance grant program
under Minnesota Statutes, section 115A.54,
to predesign, design, and construct the
renovation of the existing Material Recovery
Facility to add additional space for the
installation of advanced processing equipment
with the ability to process raw incoming
municipal solid waste with the capability to
switch over to processing single sort recycling.
new text end

new text begin Subd. 6. new text end new text begin Capital Assistance Program: Dakota and Scott Counties new text end

new text begin 8,000,000 new text end

new text begin For a capital assistance grant to Dakota
County, under Minnesota Statutes, section
115A.54, to design, construct, and equip a new
regional household hazardous waste and
recycling facility to help keep hazardous waste
and recyclables out of landfills and the
environment.
new text end

new text begin Subd. 7. new text end new text begin Capital Assistance Program: Olmsted County new text end

new text begin 10,000,000 new text end

new text begin For a capital assistance grant to Olmsted
County under Minnesota Statutes, section
115A.54, to design, construct, and equip a new
materials recovery facility which will expand
upon the county's current integrated solid
waste management system by reclaiming
materials and removing problematic items
from the waste stream.
new text end

new text begin Subd. 8. new text end new text begin Capital Assistance Program: Polk County new text end

new text begin 2,400,000 new text end

new text begin For a capital assistance grant to Polk County
under Minnesota Statutes, section 115A.54,
to design, construct, equip, and install capital
equipment and other improvements for
composting and recycling infrastructure.
new text end

new text begin Subd. 9. new text end new text begin Capital Assistance Program: Chisago County new text end

new text begin 281,000 new text end

new text begin For a capital assistance grant to Chisago
County under Minnesota Statutes, section
115A.54, to design and construct renovations
of the Chisago County Household Hazardous
Waste Facility for modernized warehouse
workflow, volume, and safety improvements.
new text end

new text begin Subd. 10. new text end new text begin Capital Assistance Program: Cass County new text end

new text begin 3,500,000 new text end

new text begin For a capital assistance grant to Cass County
under Minnesota Statutes, section 115A.54,
to design and construct a new building for
cardboard and mixed paper recycling
operations, hazardous household waste
operations, electronic waste (e-waste), and
office space. This appropriation may also be
used to construct security and access
improvements for the new facility, and an
impervious area for tire storage as well as to
install a new 70-foot truck scale for the new
facility.
new text end

new text begin Subd. 11. new text end new text begin Continuous Nitrate Sensor Network new text end

new text begin 1,200,000 new text end

new text begin From the general fund for the design and
installation of a network of nitrate sensors for
the continuous real-time monitoring of nitrates
in major watershed and basin pour points.
new text end

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

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

new text begin $ new text end

new text begin 35,880,000 new text end

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

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

new text begin 16,800,000 new text end

new text begin To acquire land or permanent easements and
to restore, create, enhance, and preserve
wetlands to replace those wetlands drained or
filled as a result of the repair, reconstruction,
replacement, or rehabilitation of existing
public roads as required by Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m). Notwithstanding
Minnesota Statutes, section 103G.222,
subdivision 3, the board may implement the
wetland replacement program consistent with
section 404 of the federal Clean Water Act.
The purchase price paid for acquisition of land
or perpetual easement must be a fair market
value as determined by the board. The board
may enter into agreements with the federal
government, other state agencies, political
subdivisions, nonprofit organizations, fee title
owners, or other qualified private entities to
acquire wetland replacement credits in
accordance with Minnesota Rules, chapter
8420. Up to five percent of this appropriation
may be used for restoration and enhancement.
new text end

new text begin Subd. 3. new text end new text begin Local Government Roads Wetland Replacement Program new text end

new text begin 7,200,000 new text end

new text begin From the general fund to the board to
administer its statutory responsibilities and
acquire wetland banking credits to replace
those wetlands drained or filled as a result of
repairing, reconstructing, replacing, or
rehabilitating existing public roads as required
by Minnesota Statutes, section 103G.222,
subdivision 1. Notwithstanding Minnesota
Statutes, section 103G.222, subdivision 3, the
board may implement the wetland replacement
program when consistent with the watershed
approach of section 404 of the federal Clean
Water Act. The purchase price paid for
acquiring wetland credits must be determined
by the board. The board may enter into
agreements with the federal government, other
state agencies, political subdivisions, nonprofit
organizations, fee title owners, or other
qualified private entities to acquire wetland
replacement credits in accordance with
Minnesota Rules, chapter 8420. Up to
$165,000 of this appropriation is available for
mitigation stewardship in accordance with
Minnesota Statutes, section 103B.103,
subdivision 3.
new text end

new text begin Subd. 4. new text end new text begin Reinvest in Minnesota (RIM) Reserve Program new text end

new text begin 11,880,000 new text end

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

Sec. 10. new text begin AGRICULTURE new text end

new text begin $ new text end

new text begin 457,000 new text end

new text begin To the commissioner of administration to
design, construct, and equip the renovation
and repair of the plant protection division's
potato inspection facility located in East Grand
Forks. This appropriation may also be used to
design and complete hazardous materials
abatement. Of this amount, $73,000 is from
the general fund.
new text end

Sec. 11. new text begin MINNESOTA ZOOLOGICAL GARDEN new text end

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

new text begin $ new text end

new text begin 25,120,000 new text end

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

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

new text begin 15,120,000 new text end

new text begin For capital asset preservation improvements
and betterments to infrastructure and exhibits
at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding the specified uses
of money under Minnesota Statutes, section
16B.307, this appropriation may be used to
replace buildings that are in poor condition,
outdated, and no longer support the work of
the Minnesota Zoological Garden; to construct
and renovate trails and roads on the Minnesota
Zoological Garden site; and to replace the
lakeside plaza infrastructure, including the
stairs and ramp to the upper plaza, and to
design, construct, furnish, and equip the
renovation of related animal holding and
mechanical spaces.
new text end

new text begin $11,532,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the board may use the
general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Animal Hospital Renovation new text end

new text begin 10,000,000 new text end

new text begin To design, construct, furnish, and equip the
renovation of the animal hospital building at
the Minnesota Zoological Garden.
new text end

Sec. 12. new text begin ADMINISTRATION new text end

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

new text begin $ new text end

new text begin 88,615,000 new text end

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

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

new text begin 9,000,000 new text end

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

new text begin $6,864,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16A.632, the commissioner may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16A.632, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16A.632, subdivision 4, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Ford Building new text end

new text begin 4,372,000 new text end

new text begin To complete design and abatement of
hazardous materials and demolition of the
Ford Building and associated infrastructure
located on the Capitol Complex as the first
phase of overall site redevelopment. This
appropriation may also be used to complete
design and to construct and equip
improvements to maintain access to the
Capitol Complex tunnel system as well as to
provide security, irrigation, and landscaping
for the site. Notwithstanding Minnesota
Statutes, chapter 15B, or the Comprehensive
Plan for the Minnesota State Capitol Area, no
additional study shall be required prior to a
building permit being issued for the work
authorized in this appropriation or to proceed
with such work.
new text end

new text begin Subd. 4. new text end new text begin State Building Energy Conservation Improvement Revolving Loan Fund new text end

new text begin 12,000,000 new text end

new text begin From the general fund to make loans to state
agencies to design, construct, and equip energy
conservation improvements in state buildings
under Minnesota Statutes, section 16B.87.
new text end

new text begin Loans from this appropriation are not subject
to the preference that the building be located
within the electric retail service area of the
utility that is subject to Minnesota Statutes,
section 116C.779.
new text end

new text begin Subd. 5. new text end new text begin State Building Renewable Energy Production Improvements new text end

new text begin 6,000,000 new text end

new text begin From the general fund to provide money to
state agencies to design, construct, install, and
equip renewable energy production
improvement projects under Minnesota
Statutes, section 16B.324. This appropriation
may also be used to design and complete
related work necessary to connect to electrical
systems.
new text end

new text begin Subd. 6. new text end new text begin Capitol Complex - Physical Security Upgrades Phase II new text end

new text begin 56,043,000 new text end

new text begin For the continuation of the design,
construction, and equipping required to
upgrade the physical security elements and
systems for the Capitol Mall and the buildings
listed in this subdivision, their attached tunnel
systems, their surrounding grounds, and
parking facilities as identified in the 2017
Minnesota State Capitol Complex Physical
Security Predesign completed by Miller
Dunwiddie and an updated assessment
completed in 2022. Upgrades include but are
not limited to the installation of bollards, blast
protection, infrastructure security screen walls,
door access controls, emergency call stations,
surveillance systems, security kiosks, locking
devices, and traffic and crowd control devices.
This appropriation includes money for work
associated with the following buildings:
Administration, Ag/Health Lab, Capitol,
Centennial, Governor's Residence, Judicial
Center, Minnesota History Center, Capitol
Complex Power Plant and Shops, Stassen,
State Office, and Veterans Service.
$15,702,000 of this appropriation is from the
general fund to be used at the Andersen,
Freeman, Minnesota Senate, Retirement
Systems, and Transportation buildings for the
purposes described in this subdivision.
new text end

new text begin Subd. 7. new text end new text begin ADA Building Accommodation new text end

new text begin 1,200,000 new text end

new text begin From the general fund to design, construct,
and equip Americans with Disabilities Act
accommodation improvements in state-owned
and state-leased buildings. The commissioner
may establish processes for submission and
review of proposals from state agencies,
boards, and commissions, the legislative and
judicial branches of government, and
constitutional offices in order to allocate
money to improve physical access to state
services and employment opportunities.
new text end

Sec. 13. new text begin AMATEUR SPORTS COMMISSION new text end

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

new text begin $ new text end

new text begin 14,485,000 new text end

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

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

new text begin 12,960,000 new text end

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

new text begin $9,885,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the commission may use the
general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Regional Sports Center new text end

new text begin 325,000 new text end

new text begin From the general fund for a grant to the city
of St. Paul to predesign a regional sports
center, including athletic fields, parking,
access roads, and related ancillary facilities.
new text end

new text begin Subd. 4. new text end new text begin Mighty Ducks new text end

new text begin 1,200,000 new text end

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

Sec. 14. new text begin MILITARY AFFAIRS new text end

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

new text begin $ new text end

new text begin 31,487,000 new text end

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

new text begin Subd. 2. new text end new text begin Rosemount Readiness Center new text end

new text begin 25,080,000 new text end

new text begin To construct and equip the renovation of
existing space at the Rosemount Readiness
Center, including mechanical, electrical,
building envelope, energy efficiency, and life
safety improvements.
new text end

new text begin $360,000 of this appropriation is in addition
to the appropriation for the same purpose in
Laws 2020, Fifth Special Session chapter 3,
article 1, section 14, subdivision 2.
new text end

new text begin Subd. 3. new text end new text begin Fergus Falls Readiness Center new text end

new text begin 800,000 new text end

new text begin This appropriation is in addition to the
appropriation for the same purpose in Laws
2020, Fifth Special Session chapter 3, article
1, section 14, subdivision 3.
new text end

new text begin Subd. 4. new text end new text begin Moorhead Readiness Center new text end

new text begin 855,000 new text end

new text begin This appropriation is in addition to the
appropriation for the same purpose in Laws
2020, Fifth Special Session chapter 3, article
1, section 14, subdivision 4.
new text end

new text begin Subd. 5. new text end new text begin Marshall Readiness Center new text end

new text begin 4,752,000 new text end

new text begin This appropriation is in addition to the
appropriation for the same purpose in Laws
2020, Fifth Special Session chapter 3, article
1, section 14, subdivision 5.
new text end

Sec. 15. new text begin PUBLIC SAFETY new text end

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

new text begin $ new text end

new text begin 103,882,000 new text end

new text begin To the commissioner of public safety or other
named entity for the purposes specified in this
section.
new text end

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

new text begin 47,617,000 new text end

new text begin To the commissioner of administration to
acquire the site and easements, if any, for, and
to design, construct, and equip a new Bureau
of Criminal Apprehension regional office and
laboratory facility in the Mankato area.
new text end

new text begin Subd. 3. new text end new text begin BCA Maryland Building new text end

new text begin 6,033,000 new text end

new text begin To the commissioner of administration to
design, construct, renovate, equip, and furnish
unfinished space in the Bureau of Criminal
Apprehension building in St. Paul to provide
new offices and to design, construct, and equip
a new perimeter fence at this site.
new text end

new text begin Subd. 4. new text end new text begin State Emergency Operations Center new text end

new text begin 11,392,000 new text end

new text begin This appropriation is to the commissioner of
administration and is in addition to the
appropriation for the same purpose in Laws
2020, Fifth Special Session chapter 3, article
1, section 15, subdivision 2.
new text end

new text begin Subd. 5. new text end new text begin Administration of Local Grants new text end

new text begin 143,000 new text end

new text begin From the general fund for the administration
of direct grants included in the capital budget.
new text end

new text begin Subd. 6. new text end new text begin Caledonia; Fire and Ambulance Station new text end

new text begin 2,212,000 new text end

new text begin For a grant to the city of Caledonia to
predesign, design, construct, furnish, and
equip a new joint fire and ambulance facility
for the city's fire department and ambulance
department. The new facility will include a
kitchen, restrooms, offices, storage, and other
functional space and amenities.
new text end

new text begin Subd. 7. new text end new text begin Dilworth; Fire Station new text end

new text begin 4,378,000 new text end

new text begin For a grant to the city of Dilworth to demolish
the joint fire station/community center, and
construct a new fire station in its place to
provide emergency services to residents in the
cities of Dilworth and Georgetown as well as
to residents in the townships of Morken,
Moorhead, Kragnes, and Oakport.
new text end

new text begin Subd. 8. new text end new text begin Edina; Community Health and Safety Center new text end

new text begin 10,000,000 new text end

new text begin For a grant to the city of Edina to acquire land,
predesign, design, construct, furnish, and
equip a community health and safety center
to be located in the southeast quadrant of the
city.
new text end

new text begin Subd. 9. new text end new text begin Golden Valley; Fire Station new text end

new text begin 2,500,000 new text end

new text begin For a grant to the city of Golden Valley to
acquire and improve property for, and to
predesign, design, construct, engineer, furnish,
and equip a new fire station with space to
provide regional training opportunities and
other associated site improvements.
new text end

new text begin Subd. 10. new text end new text begin Lakes Area Police Department new text end

new text begin 3,300,000 new text end

new text begin For a grant to the city of Chisago City to
predesign, design, construct, furnish, and
equip a new law enforcement and training
facility in the city of Chisago City for the
Lakes Area Police Commission, a joint powers
law enforcement agency created pursuant to
Minnesota Statutes, section 471.59, to serve
the cities of Lindstrom and Chisago City, and
the surrounding area.
new text end

new text begin Subd. 11. new text end new text begin Marshall; MERIT Center new text end

new text begin 4,404,000 new text end

new text begin For a grant to the city of Marshall to design,
construct, furnish, and equip improvements at
the Minnesota Emergency Response and
Industrial Training Center outlined in Phase
3 of the Master Development Plan, including:
a 50-yard and 300-yard firearms range;
firearms support buildings; and a live burn
buildout structure.
new text end

new text begin Subd. 12. new text end new text begin Minneapolis; Emergency Operation Training Facility new text end

new text begin 2,065,000 new text end

new text begin For a grant to the city of Minneapolis for phase
2 of the Emergency Operation Training
Facility (EOTF) project to construct and equip
large-scale technical response training
facilities at the EOTF, a regional, multi-agency
public safety facility currently used to train
first responders, fire professionals, law
enforcement officials, technical rescue and
hazardous materials specialists, and state and
federal incident management personnel. This
project will develop a 1.5 acre parcel of
city-owned, unused property located in the
City of Fridley and operated by the City of
Minneapolis, adjacent to the EOTF.
new text end

new text begin Subd. 13. new text end new text begin Lake Johanna Fire Department Headquarters Board; Public Safety Facility new text end

new text begin 9,838,000 new text end

new text begin For a grant to the Lake Johanna Fire
Department Headquarters Board, a joint
powers entity established under agreement by
the cities of Arden Hills, North Oaks, and
Shoreview, to design, construct, furnish, and
equip a public safety facility to house the Lake
Johanna Fire Department, subject to
Minnesota Statutes, section 16A.695.
new text end

Sec. 16. new text begin TRANSPORTATION new text end

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

new text begin $ new text end

new text begin 317,700,000 new text end

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

new text begin Subd. 2. new text end new text begin Local Bridge Replacement Program new text end

new text begin 144,000,000 new text end

new text begin From the bond proceeds account in the state
transportation fund to match federal money to
replace or rehabilitate local deficient bridges
as provided in Minnesota Statutes, section
174.50.
new text end

new text begin Subd. 3. new text end new text begin Local Road Improvement Program new text end

new text begin 108,000,000 new text end

new text begin From the bond proceeds account in the state
transportation fund as provided in Minnesota
Statutes, section 174.50, for eligible
improvements on trunk highway corridor
projects under Minnesota Statutes, section
174.52, subdivision 2; for construction and
reconstruction of local roads with statewide
or regional significance under Minnesota
Statutes, section 174.52, subdivision 4; or for
grants to counties to assist in paying the costs
of rural road safety capital improvement
projects on county state-aid highways under
Minnesota Statutes, section 174.52,
subdivision 4a.
new text end

new text begin Subd. 4. new text end new text begin Highway Rail Grade Crossings new text end

new text begin 6,000,000 new text end

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

new text begin Subd. 5. new text end new text begin Port Development Assistance Program new text end

new text begin 6,000,000 new text end

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

new text begin Subd. 6. new text end new text begin Safe Routes to School new text end

new text begin 1,800,000 new text end

new text begin For grants under Minnesota Statutes, section
174.40.
new text end

new text begin Subd. 7. new text end new text begin Active Transportation new text end

new text begin 6,000,000 new text end

new text begin (a) $4,800,000 of this appropriation is from
the active transportation account in the bond
proceeds fund for the active transportation
program under Minnesota Statutes, section
174.38.
new text end

new text begin (b) $1,200,000 of this appropriation is from
the general fund to predesign, design,
construct, and equip bicycle and pedestrian
facilities along trunk highways on or through
reservations and Tribal lands or for grants with
Indian Tribal governments to predesign,
design, construct, and equip bicycle and
pedestrian facilities on reservations or Tribal
lands.
new text end

new text begin Subd. 8. new text end new text begin Minnesota Rail Service Improvement Program new text end

new text begin 2,400,000 new text end

new text begin For rail service improvement grants under
Minnesota Statutes, section 222.50.
new text end

new text begin Subd. 9. new text end new text begin Greater Minnesota Transit new text end

new text begin 1,200,000 new text end

new text begin For capital assistance for publicly owned
greater Minnesota transit systems to acquire
property and to predesign, design, construct,
furnish, and equip transit capital facilities
under Minnesota Statutes, section 174.24,
subdivision 3c.
new text end

new text begin Subd. 10. new text end new text begin Rail Corridor Capacity Improvements new text end

new text begin 19,900,000 new text end

new text begin For capital improvements and betterments
along the BNSF Railway Hinckley subdivision
between Minneapolis and Duluth. This project
consists of multiple phases that shall be
accomplished with one or more state
appropriations, and the rail project in its
entirety will not be completed with any one
appropriation. Capital improvements and
betterments include program delivery, design,
engineering, acquisition of land and
right-of-way, and construction.
new text end

new text begin Subd. 11. new text end new text begin McLeod County; Hutchinson Area Transportation Services Facility new text end

new text begin 6,400,000 new text end

new text begin For a grant to McLeod County to predesign,
design, engineer, and construct a tempered
vehicle and equipment storage building and a
fueling facility at the Hutchinson Area
Transportation Services facility in the city of
Hutchinson.
new text end

new text begin Subd. 12. new text end new text begin Minneapolis; ADA Transition new text end

new text begin 5,000,000 new text end

new text begin For a grant to the city of Minneapolis for the
design and construction of curbs, ramps,
sidewalks, and other infrastructure and
improvements to infrastructure in public
rights-of-way for compliance with the
Americans with Disabilities Act (ADA). This
appropriation includes money for adding
accessible pedestrian signals (APS) and
completing signal modifications at
intersections as needed.
new text end

new text begin Subd. 13. new text end new text begin Murray County; Maintenance Facility new text end

new text begin 11,000,000 new text end

new text begin For a grant to Murray County to acquire land
for and to predesign, design, construct, furnish,
and equip a new county highway department
maintenance, storage, and fueling facility in
the city of Slayton.
new text end

Sec. 17. new text begin METROPOLITAN COUNCIL new text end

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

new text begin $ new text end

new text begin 168,804,000 new text end

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

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

new text begin 6,000,000 new text end

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

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

new text begin 3,000,000 new text end

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

new text begin Subd. 4. new text end new text begin Busway and Arterial Bus Development new text end

new text begin 72,000,000 new text end

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

new text begin Subd. 5. new text end new text begin Administration of Local Grants new text end

new text begin 182,000 new text end

new text begin From the general fund for the administration
of direct grants included in the capital budget.
new text end

new text begin Subd. 6. new text end new text begin Brooklyn Center; Health, Culture, and Recreation Community Center new text end

new text begin 15,000,000 new text end

new text begin For a grant to the city of Brooklyn Center to
predesign, design, and construct a health,
culture, and recreation facility.
new text end

new text begin Subd. 7. new text end new text begin Carver County; Lake Waconia Regional Park new text end

new text begin 2,250,000 new text end

new text begin For a grant to Carver County to predesign,
design, construct, furnish, and equip a picnic
shelter, playground, parking lot, lighting,
trails, walkways, and other site amenities at
Lake Waconia Regional Park.
new text end

new text begin Subd. 8. new text end new text begin Maple Grove; Community Center new text end

new text begin 22,500,000 new text end

new text begin For a grant to the city of Maple Grove to
design, construct, furnish, and equip the
expansion and renovation of the Maple Grove
Community Center.
new text end

new text begin Subd. 9. new text end new text begin Minneapolis Park and Recreation Board; North Commons new text end

new text begin 7,294,000 new text end

new text begin For a grant to the Minneapolis Park and
Recreation Board to predesign, design,
construct, renovate, furnish, and equip the
North Commons Improvement Project,
focused on the creation of the field house
component of a new recreation center building
and the first phase of other
community-oriented activity and meeting
spaces conceptualized for the building to serve
as a gathering space for arts related events,
sports tournaments, and community
gatherings. This appropriation is for the
renovation, construction, and relocation of the
water park, a new community building, and
new parking lot. This appropriation is in
addition to the appropriation under Laws 2020,
Fifth Special Session chapter 3, article 3,
section 3.
new text end

new text begin Subd. 10. new text end new text begin Minneapolis Park and Recreation Board; Water Works Park new text end

new text begin 6,077,000 new text end

new text begin For a grant to the Minneapolis Park and
Recreation Board for construction of the
riverside phase of the Water Works Park
development project on the Mississippi River
in downtown Minneapolis overlooking St.
Anthony Falls. This appropriation includes
money for construction of pedestrian and bike
trails; excavation and restoration of the
Cataract Mill ruins for use as a plaza;
excavation of the water power gatehouse to
create a terraced plaza for events and
performances; development of a general river
access point; shoreline enhancements,
landscaping, and other site improvements and
infrastructure.
new text end

new text begin Subd. 11. new text end new text begin Minnetonka; Opus Public Space new text end

new text begin 725,000 new text end

new text begin For a grant to the city of Minnetonka to
acquire property for, and to predesign, design,
construct, and equip the Opus Public Space,
a dedicated public park space. This
appropriation includes money for construction
of a plaza, gathering spaces, a multipurpose
building, an amphitheater, dog park, and for
other park amenities, site improvements, and
infrastructure.
new text end

new text begin Subd. 12. new text end new text begin Richfield; Wood Lake Nature Center new text end

new text begin 12,000,000 new text end

new text begin For a grant to the city of Richfield to
predesign, design, and construct a new nature
center building, and for the renovation of the
site and trails at Wood Lake Nature Center.
new text end

new text begin Subd. 13. new text end new text begin St. Paul; Como Zoo new text end

new text begin 13,776,000 new text end

new text begin For a grant to the city of St. Paul to design and
construct Phase I improvements for an entry
exhibit area of the Como Zoo. This project
will provide the orangutans an expanded
outdoor animal habitat area and a new indoor
habitat.
new text end

new text begin Subd. 14. new text end new text begin St. Paul; North End Community Center new text end

new text begin 8,000,000 new text end

new text begin For a grant to the city of St. Paul for site
preparation, park enhancements, and to
construct, furnish, and equip a 25,000 square
foot state-of-the-art community center in the
North End neighborhood of the city.
new text end

Sec. 18. new text begin HUMAN SERVICES new text end

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

new text begin $ new text end

new text begin 176,177,000 new text end

new text begin To the commissioner of administration, or
other named entity, for the purposes specified
in this section.
new text end

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

new text begin 8,880,000 new text end

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

new text begin $6,773,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the commissioner may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Sunrise and Tomlinson Building Renovation new text end

new text begin 21,568,000 new text end

new text begin To design, renovate, construct, furnish, and
equip the second phase of a multiphase project
to develop additional residential, program,
activity, and ancillary facilities for the
Minnesota sex offender program on the lower
campus of the St. Peter Regional Treatment
Center. This appropriation includes money to
design, renovate, construct, furnish, and equip
the north wing of Green Acres; the west,
south, and north wings of Sunrise; and the
Tomlinson Building. This appropriation also
includes money to: replace or renovate HVAC,
plumbing, electrical, security, and life safety
systems; address fire and life safety, and other
building code deficiencies; replace windows
and doors; tuck-point exterior building
envelopes; reconfigure and remodel space;
design and abate asbestos and other hazardous
materials; remove or demolish nonfunctioning
building components; and complete site work
necessary to support the programmed use of
these two buildings.
new text end

new text begin Subd. 4. new text end new text begin Early Childhood Facilities Grants new text end

new text begin 12,413,000 new text end

new text begin To the commissioner of human services for
grants under Minnesota Statutes, section
256E.37, to predesign, design, construct,
renovate, furnish, and equip early childhood
learning facilities. $6,000,000 of this
appropriation is from the general fund for
grants. $413,000 of this appropriation is from
the general fund for program administration.
new text end

new text begin Subd. 5. new text end new text begin Anoka Miller Building Phase I new text end

new text begin 16,375,000 new text end

new text begin For the predesign, design, renovation,
furnishing, and equipping of the north wing
and south wing of the Miller Building at the
Anoka Metro Regional Treatment Center.
new text end

new text begin Subd. 6. new text end new text begin St. Peter Water and Sewer Upgrades new text end

new text begin 12,478,000 new text end

new text begin To design, construct, and equip upgrades and
the replacement of water, sanitary, and storm
sewer infrastructure at the St. Peter Campus.
new text end

new text begin Subd. 7. new text end new text begin DCT Energy Upgrades new text end

new text begin 11,188,000 new text end

new text begin From the general fund to design and install
renewable energy systems and related
improvements necessary to connect to
electrical systems for buildings on the St. Peter
campus, Anoka Metro Regional Treatment
Center campus, and the Moose Lake campus.
new text end

new text begin Subd. 8. new text end new text begin Emergency Shelter Facilities new text end

new text begin 86,207,000 new text end

new text begin From the general fund to the commissioner of
human services for emergency services
facilities grants to acquire land and facilities,
predesign, design, construct, renovate, furnish,
or equip facilities for emergency homeless
shelters, to be spent in accordance with
Minnesota Statutes, section 256E.36.
$2,207,000 of this appropriation is from the
general fund for program administration.
new text end

new text begin Subd. 9. new text end new text begin Johnson Hall Demolition new text end

new text begin 569,000 new text end

new text begin From the general fund to design and complete
the demolition of, and to design and complete
hazardous materials abatement and
landscaping for, Johnson Hall on the St. Peter
campus.
new text end

new text begin Subd. 10. new text end new text begin Security Systems Upgrades new text end

new text begin 6,499,000 new text end

new text begin From the general fund to design, equip, and
install new or upgrade current security,
communications, and security monitoring
systems at direct care and treatment facilities.
new text end

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

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

new text begin $ new text end

new text begin 90,125,000 new text end

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

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

new text begin 12,360,000 new text end

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

new text begin $9,427,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the commissioner may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Hastings Veterans Home Campus Upgrade new text end

new text begin 77,765,000 new text end

new text begin To predesign, design, construct, and equip the
replacement of administrative and residential
buildings and infrastructure at the Minnesota
Veterans Home - Hastings Campus. This
appropriation includes money to design and
complete demolition of all or portions of
buildings and other structures deemed
unnecessary or undesirable for the
development of the project, site preparation,
asbestos removal and hazardous materials
abatement, and the furnishing and equipping
of the new buildings. The commissioner of
veterans affairs may apply for federal funding
for this project.
new text end

Sec. 20. new text begin CORRECTIONS new text end

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

new text begin $ new text end

new text begin 111,816,000 new text end

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

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

new text begin 75,969,000 new text end

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

new text begin $59,415,000 of this appropriation is from the
general fund. Notwithstanding the specified
uses of money under Minnesota Statutes,
section 16B.307, the commissioner may use
the general fund appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of article
XI, section 5, clause (a), of the constitution.
The report required under Minnesota Statutes,
section 16B.307, subdivision 2, shall also
include a list of projects that have been paid
for with this appropriation from the general
fund.
new text end

new text begin Subd. 3. new text end new text begin Minnesota Correctional Facility - Faribault new text end

new text begin 9,705,000 new text end

new text begin To construct, renovate, furnish, and equip new
and existing buildings and complete associated
site work at the Minnesota Correctional
Facility - Faribault in order to upgrade the
minimum security housing unit (Dakota
Building) and expand the incarcerated persons
programming and support space. The
renovation of the existing building includes
but is not limited to: the design and completion
of removal of hazardous materials, upgrades
to comply with current codes, and the
construction of a new programming addition.
This project includes the design and
completion of demolition of an attached and
abandoned two-story brick building to provide
space for the new programming addition. This
appropriation may also be used to design and
complete hazardous materials abatement
associated with demolition activities.
new text end

new text begin Subd. 4. new text end new text begin Minnesota Correctional Facility - Shakopee new text end

new text begin 18,432,000 new text end

new text begin To predesign, design, construct, renovate,
furnish, and equip new and existing buildings
and complete associated site work at the
Minnesota Correctional Facility - Shakopee
to construct an incarcerated persons
programming and support space. The
renovation of the existing building includes
but is not limited to: the removal of hazardous
materials, upgrades to comply with current
codes, and the construction of a new
programming addition.
new text end

new text begin Subd. 5. new text end new text begin Minnesota Correctional Facility - Lino Lakes new text end

new text begin 7,710,000 new text end

new text begin To predesign, design, construct, renovate,
furnish and equip an existing building and
complete associated site work at the Minnesota
Correctional Facility - Lino Lakes to construct
an incarcerated persons programming and
support space. The renovation of the existing
building includes but is not limited to: the
removal of hazardous materials, upgrades to
comply with current codes, interior demolition,
and the construction of spaces appropriate for
programming functions.
new text end

new text begin Subd. 6. new text end new text begin Unspent Appropriations new text end

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

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

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

new text begin $ new text end

new text begin 166,557,000 new text end

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

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

new text begin 8,400,000 new text end

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

new text begin Subd. 3. new text end new text begin Innovative Business Development Public Infrastructure new text end

new text begin 1,200,000 new text end

new text begin For grants under Minnesota Statutes, section
116J.435.
new text end

new text begin Subd. 4. new text end new text begin Transportation Economic Development Infrastructure new text end

new text begin 4,800,000 new text end

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

new text begin Subd. 5. new text end new text begin Administration of Local Grants new text end

new text begin 572,000 new text end

new text begin From the general fund for the administration
of direct grants included in the capital budget.
new text end

new text begin Subd. 6. new text end new text begin Aitkin; Fieldhouse new text end

new text begin 629,000 new text end

new text begin For a grant to the city of Aitkin to predesign,
design, construct, and equip a warming house
and community center facility in Aitkin City
Park. This appropriation includes money for
pavement of the parking lot.
new text end

new text begin Subd. 7. new text end new text begin Bloomington; Public Health Facility new text end

new text begin 10,135,000 new text end

new text begin For a grant to the city of Bloomington to
predesign, design, construct, furnish, and
equip a public health facility in the city of
Bloomington to serve people who live and
work in the cities of Bloomington, Edina, and
Richfield.
new text end

new text begin Subd. 8. new text end new text begin Detroit Lakes; Washington Ballfield new text end

new text begin 1,406,000 new text end

new text begin For a grant to the city of Detroit Lakes to
construct, renovate, equip, and furnish capital
improvements to the Washington Ballfield
and Grandstand. This appropriation includes
money for visitor accessibility and safety
improvements; repairs and upgrades to the
grandstand; stormwater management
improvements; field and fencing
improvements; lighting upgrades; and
improvements to the dugout and restroom
facilities.
new text end

new text begin Subd. 9. new text end new text begin Duluth; Spirit Mountain Recreation Area new text end

new text begin 13,000,000 new text end

new text begin From the general fund for a grant to the city
of Duluth to design, construct, furnish, and
equip new facilities and to renew, replace, and
repair existing facilities at the Spirit Mountain
Recreation Area.
new text end

new text begin Subd. 10. new text end new text begin Fergus Falls; Riverfront Corridor new text end

new text begin 5,200,000 new text end

new text begin For a grant to the city of Fergus Falls for Phase
3 improvements as part of the city's Riverfront
Corridor project. This appropriation includes
money to acquire land and to predesign,
design, and construct a river balcony, trail,
playground, parking lot, and fishing pier along
the Otter Tail River.
new text end

new text begin Subd. 11. new text end new text begin Hastings; Civic Arena new text end

new text begin 2,235,000 new text end

new text begin For a grant to the city of Hastings to design
and construct a roof replacement and energy
efficiency capital improvements to the
Hastings Civic Arena. This appropriation
includes money for replacement of the R-22
Freon refrigeration system and a rooftop solar
panel array.
new text end

new text begin Subd. 12. new text end new text begin Hennepin County; Avivo Center new text end

new text begin 25,000,000 new text end

new text begin For a grant to Hennepin County for phase 2
of the Avivo regional treatment, career, and
employment center campus generally located
at 1825, 1900, 1904, and 1908 Chicago
Avenue in Minneapolis. Phase 2 includes
design, site preparation including without
limitation demolition, any required
environmental remediation, renovation of
existing buildings on the Avivo campus, new
construction on the Avivo campus, and
furnishing and equipping the improvements
on the Avivo campus.
new text end

new text begin Subd. 13. new text end new text begin Minneapolis; Central City Stormwater Tunnel new text end

new text begin 9,900,000 new text end

new text begin For a grant to the city of Minneapolis for
design and construction necessary to expand
the Central City Storm Tunnel in Minneapolis.
new text end

new text begin Subd. 14. new text end new text begin North Mankato; Caswell Park new text end

new text begin 10,000,000 new text end

new text begin For a grant to the city of North Mankato to
predesign, design, construct, furnish, and
equip an indoor recreational facility and
improvements and renovations to existing
facilities at the Caswell Regional Sporting
Complex, including upgrading the concession
stand and restrooms, adding a parking lot, new
fencing, field lighting and scoreboards,
increasing the size of fields, adding a turf field,
adding spectator seating, and for a new public
address system and signage.
new text end

new text begin Subd. 15. new text end new text begin Olmsted County; Graham Park new text end

new text begin 10,000,000 new text end

new text begin For a grant to Olmsted County to predesign,
design, construct, furnish, and equip capital
improvements to and renovation of Graham
Park, a regional multiuse complex in Olmsted
County. This appropriation may be used for a
new multiuse exhibition center and a
permanent farmers' market pavilion.
new text end

new text begin Subd. 16. new text end new text begin Pelican Rapids; Aquatic Facility new text end

new text begin 1,500,000 new text end

new text begin For a grant to the city of Pelican Rapids to
demolish the existing swimming pool facilities
and to predesign, design, construct, furnish,
and equip a new aquatic center, including a
swimming pool, water slide, lazy river,
zero-depth entry, splash pad, gazebo, and
bathhouse.
new text end

new text begin Subd. 17. new text end new text begin Rochester; District Energy System new text end

new text begin 18,960,000 new text end

new text begin From the general fund for a grant to the city
of Rochester for the predesign, design,
engineering, construction, and equipping of a
municipal heating and cooling energy
distribution system, including associated
infrastructure, for buildings within the
downtown district to include the Mayo Civic
Center, Rochester City Hall, Rochester Art
Center, Rochester Civic Theater, and
Rochester Public Library with the capacity to
add additional public and private
developments on other nearby property sites
in the future. This appropriation may be used
for capital improvements related to renewable
energy sources such as but not limited to solar
thermal, geothermal, solar panels, and
replacement of building controls. This
appropriation may be used to reimburse the
city for expenditures made by the city toward
this project before enactment of this section.
new text end

new text begin Subd. 18. new text end new text begin Roseville; John Rose Minnesota OVAL new text end

new text begin 753,000 new text end

new text begin For a grant to the city of Roseville to
predesign, design, construct, furnish, and
equip the renovation of the Guidant John Rose
Minnesota OVAL in Roseville. This
appropriation includes money for
improvements to the main building, building
systems, and support facilities.
new text end

new text begin Subd. 19. new text end new text begin Scandia; Water Tower Barn Arts Heritage Center new text end

new text begin 2,039,000 new text end

new text begin For a grant to the city of Scandia to predesign,
design, construct, renovate, furnish, and equip
the Scandia Water Tower Barn Arts and
Heritage Center in the city of Scandia, along
with site improvements. The city of Scandia
may enter into a lease or management
agreement with a nonprofit corporation for the
operation of these facilities under Minnesota
Statutes, section 16A.695.
new text end

new text begin Subd. 20. new text end new text begin South St. Paul; Public Works Facility new text end

new text begin 13,000,000 new text end

new text begin For a grant to the city of South St. Paul to
construct a new public works facility.
new text end

new text begin Subd. 21. new text end new text begin St. Louis County; Arts and Cultural Heritage Center new text end

new text begin 4,658,000 new text end

new text begin For a grant to St. Louis County for renovation
of the St. Louis County Heritage and Arts
Center, also known as the Depot, in Duluth.
The project includes predesign, design,
construction, and renovation work for the
replacement of or improvements to
mechanical, electrical, heating, ventilating,
and air conditioning systems; life-safety
elements of the building; and exterior building
envelope integrity.
new text end

new text begin Subd. 22. new text end new text begin Staples; Batcher Block Opera House new text end

new text begin 1,061,000 new text end

new text begin For a grant to the city of Staples to predesign,
design, and engineer the Batcher Block Opera
House for a multiuse performing arts facility.
The city may enter into a lease or management
agreement under Minnesota Statutes, section
16A.695, to operate the programs in the
facility.
new text end

new text begin Subd. 23. new text end new text begin Wayzata; Lake Effect Boardwalk Project new text end

new text begin 7,109,000 new text end

new text begin For a grant to the city of Wayzata to design
and construct the final phase of the Lake
Effect Project. This appropriation includes
money for construction of a boardwalk;
rehabilitation of the historic Section Foreman
House; lakeshore restoration; and water
quality, safety, and accessibility improvements
at Depot Park and Eco Park.
new text end

new text begin Subd. 24. new text end new text begin Woodbury; Central Park Remodel new text end

new text begin 15,000,000 new text end

new text begin For a grant to the city of Woodbury to design,
construct, furnish, and equip the expansion
and renovation of the Woodbury Central Park
building, a multiuse facility and regional
gathering space that includes an indoor garden
and amphitheater, indoor playground, meeting,
programming, and event space.
new text end

Sec. 22. new text begin IRON RANGE RESOURCES AND REHABILITATION. new text end

new text begin $ new text end

new text begin 16,614,000 new text end

new text begin To the Department of Iron Range Resources
and Rehabilitation to acquire, upgrade,
construct, and install a snowmaking
infrastructure system, including associated
equipment, that will replace aging water lines
at Giants Ridge and aid in fire suppression.
new text end

Sec. 23. new text begin PUBLIC FACILITIES AUTHORITY new text end

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

new text begin $ new text end

new text begin 222,200,000 new text end

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

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

new text begin 41,000,000 new text end

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

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

new text begin 91,200,000 new text end

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

new text begin (b) $46,000,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range under
the clean water revolving fund program.
new text end

new text begin (c) $45,200,000 is for drinking water projects
listed on the commissioner of health's project
priority list in the fundable range under the
drinking water revolving fund program.
new text end

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

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

new text begin 90,000,000 new text end

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

Sec. 24. new text begin MINNESOTA HOUSING FINANCE AGENCY new text end

new text begin $ new text end

new text begin 60,000,000 new text end

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

Sec. 25. new text begin MINNESOTA HISTORICAL SOCIETY new text end

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

new text begin $ new text end

new text begin 13,110,000 new text end

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

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

new text begin 12,210,000 new text end

new text begin For capital improvements and betterments at
state historic sites, buildings, landscaping at
historic buildings, exhibits, markers, and
monuments, to be spent in accordance with
Minnesota Statutes, section 16B.307. The
society shall determine project priorities as
appropriate based on need. $9,391,000 of this
appropriation is from the general fund.
new text end

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

new text begin 900,000 new text end

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

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

new text begin $ new text end

new text begin 1,951,000 new text end

new text begin To the commissioner of management and
budget from the bond proceeds fund for bond
sale expenses under Minnesota Statutes,
section 16A.641, subdivision 8.
new text end

Sec. 27. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this act from
the bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $1,697,250,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Transportation fund. new text end

new text begin To provide the money appropriated in this act from the
bond proceeds account in the state transportation fund, the commissioner of management
and budget shall sell and issue bonds of the state in an amount up to $252,000,000 in the
manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

Sec. 28. new text begin BOND SALE SCHEDULE.
new text end

new text begin The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2025, no more than
$1,214,554,000 will need to be transferred from the general fund to the state bond fund to
pay principal and interest due and to become due on outstanding state general obligation
bonds. During the biennium, before each sale of state general obligation bonds, the
commissioner of management and budget shall calculate the amount of debt service payments
needed on bonds previously issued and shall estimate the amount of debt service payments
that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
amount of bonds scheduled to be sold so as to remain within the limit set by this section.
The amount needed to make the debt service payments is appropriated from the general
fund as provided in Minnesota Statutes, section 16A.641.
new text end

Sec. 29. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 2

TRUNK HIGHWAY BONDS

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

new text begin The sums shown in the column under "Appropriations" are appropriated from the bond
proceeds account in the trunk highway fund or the trunk highway fund to the commissioner
of transportation or other named entity, to be spent for public purposes. Appropriations of
bond proceeds must be spent as authorized by the Minnesota Constitution, articles XI and
XIV. Unless otherwise specified, money appropriated in this article for a capital program
or project may be used to pay state agency staff costs that are attributed directly to the capital
program or project in accordance with accounting policies adopted by the commissioner of
management and budget. Unless otherwise specified, appropriations in this article from the
trunk highway fund, but not from the bond proceeds account in the trunk highway fund,
are made in fiscal year 2024 and are onetime appropriations.
new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin High Priority Bridges new text end

new text begin $ new text end

new text begin 80,000,000 new text end

new text begin From the bond proceeds account in the trunk
highway fund for the acquisition,
environmental analysis, predesign, design,
engineering, construction, reconstruction, and
improvement of trunk highway bridges,
including design-build contracts, program
delivery, consultant usage to support these
activities, and the cost of payments to
landowners for lands acquired for highway
rights-of-way. Projects to construct,
reconstruct, or improve trunk highway bridges
from this appropriation will follow eligible
investment priorities identified in the State
Highway Investment Plan. The commissioner
may use up to 17 percent of this amount for
program delivery.
new text end

new text begin Subd. 2. new text end new text begin Statewide Freight Safety Investments new text end

new text begin 5,000,0000 new text end

new text begin From the trunk highway fund for land
acquisition, predesign, design, and
construction of expanded truck parking at Big
Spunk in Avon and Enfield Rest Areas.
new text end

new text begin Subd. 3. new text end new text begin Facilities Capital Program new text end

new text begin 90,872,000 new text end

new text begin (a) $87,440,000 of this appropriation is from
the bond proceeds account in the trunk
highway fund for the transportation facilities
capital improvement program under Minnesota
Statutes, section 174.09, and for the same
purpose in Laws 2020, Fifth Special Session
chapter 3, article 2, section 2, subdivision 5.
new text end

new text begin (b) $3,432,000 of this appropriation is from
the trunk highway fund to predesign, design,
construct, and equip the Hutchinson Area
Transportation Services addition.
new text end

Sec. 3. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 170,000 new text end

new text begin To the commissioner of management and
budget from the bond proceeds account in the
trunk highway fund for bond sale expenses
under Minnesota Statutes, sections 16A.641,
subdivision 8, and 167.50, subdivision 4.
new text end

Sec. 4. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this act from the bond proceeds account in the
trunk highway fund, the commissioner of management and budget shall sell and issue bonds
of the state in an amount up to $167,610,000 in the manner, upon the terms, and with the
effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts requested by the
commissioner of transportation. The proceeds of the bonds, except accrued interest and any
premium received from the sale of the bonds, must be deposited in the bond proceeds account
in the trunk highway fund.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 3

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 16A.632, subdivision 2, is amended to read:

Subd. 2.

Standards.

(a) Article XI, section 5, clause (a), of the constitution states general
obligation bonds may be issued to finance only the acquisition or betterment of state land,
buildings, and improvements of a capital nature. In interpreting this and applying it to the
purposes of the program contemplated in this section, the following standards are adopted
for the disbursement of money from the capital asset preservation and replacement account:

(b) deleted text begin No deleted text end new text begin An appropriation under this section may not be used to acquire new text end new land deleted text begin , deleted text end new text begin or new text end
buildings deleted text begin , or major new improvements will be acquired. These projects, including all capital
expenditures required to permit their effective use for the intended purpose on completion,
will be estimated and provided for individually through a direct appropriation for each
project deleted text end new text begin nor to construct new buildings or additions to buildings new text end .

(c) An expenditure will be made from the account only when it is a capital expenditure
on a capital asset previously owned by the state, within the meaning of accepted accounting
principles as applied to public expenditures. The commissioner of administration will consult
with the commissioner of management and budget to the extent necessary to ensure this
and will furnish the commissioner of management and budget a list of projects to be financed
from the account in order of their priority. The commissioner shall also furnish each revision
of the list. The legislature assumes that many provisions for preservation and replacement
of portions of existing capital assets will constitute betterments and capital improvements
within the meaning of the constitution and capital expenditures under correct accounting
principles, and will be financed more efficiently and economically under the program than
by direct appropriations for specific projects. However, the purpose of the program is to
accumulate data showing how additional costs may be saved by appropriating money from
the general fund for preservation measures, the necessity of which is predictable over short
periods.

(d) The commissioner of administration will furnish instructions to agencies to apply
for funding of capital expenditures for preservation and replacement from the account, will
review applications, will make initial allocations among types of eligible projects enumerated
below, will determine priorities, and will allocate money in priority order until the available
appropriation has been committed. new text begin An appropriation under this section may not be used to
make minor emergency repairs.
new text end

(e) Categories of projects considered likely to be most needed and appropriate for
financing are the following:

(1) unanticipated emergencies of all kinds deleted text begin , for which a relatively small amount should
be initially reserved, replaced from money allocated to low-priority projects, if possible, as
emergencies occur, and used for stabilization rather than replacement if the cost would
exhaust the account and should be specially appropriated deleted text end new text begin involving impacts to state-owned
property new text end ;

(2) new text begin major new text end projects to deleted text begin remove deleted text end new text begin address new text end life safety hazards new text begin for existing buildings and sites,
including but not limited to security new text end , deleted text begin like deleted text end replacement of mechanical new text begin and other building
new text end systems, building code violations, or structural defects deleted text begin , at costs not large enough to require
major capital requests to the legislature deleted text end ;

(3) deleted text begin elimination deleted text end new text begin removal new text end or containment of hazardous substances like asbestos or PCBs;

(4) deleted text begin moderate cost replacement deleted text end new text begin major projects to replace new text end and repair deleted text begin of deleted text end roofs, windows,
tuckpointing, deleted text begin and deleted text end new text begin or new text end structural members necessary to preserve the exterior and interior of
existing buildings; and

(5) up to ten percent of an appropriation awarded under this section may be used for
design costs for projects eligible to be funded from this account in anticipation of future
funding from the account.

Sec. 2.

Minnesota Statutes 2022, section 16A.632, subdivision 4, is amended to read:

Subd. 4.

Report.

By deleted text begin January 15 deleted text end new text begin March 1 new text end of each year the commissioner of administration,
with respect to each state agency, shall submit to the commissioner of management and
budget, the chairs of the finance divisions that oversee the appropriations to that state agency,
and to the chairs of the senate Finance Committee and the house of representatives Capital
Investment Committee, a list of the projects in the agency that have been funded with money
from the capital asset preservation and replacement account during the preceding calendar
year, as well as a list of those priority projects for which CAPRA appropriations will be
sought for the agency in that year's legislative session.

Sec. 3.

Minnesota Statutes 2022, section 16A.966, subdivision 2, is amended to read:

Subd. 2.

Authorization to issue appropriation bonds.

(a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law, including for the purposes of financing
the cost of implementing removal or remedial actions permitted under section 115B.17 and
further subject to the conditions in chapter 115B to address risks to human health and the
environment at contaminated sites. Appropriation bonds may be sold and issued in amounts
that, in the opinion of the commissioner, are necessary to provide sufficient money to the
commissioner of the Pollution Control Agency under subdivision 7, not to exceed
$30,400,000 net of costs of issuance, for the purposes as provided under this subdivision,
and to pay debt service including capitalized interest, costs of issuance, costs of credit
enhancement, or make payments under other agreements entered into under paragraph (d).
Notwithstanding section 115B.17, subdivision 6 or 16, any money recovered in a civil action
or any money received from the disposition of property acquired for a response action and
financed with bonds under this section shall be transferred to the commissioner and applied
toward principal and interest on outstanding bonds.

(b) Proceeds of the appropriation bonds must be credited to a special appropriation state
response to releases bond proceeds fund in the state treasury. All income from investment
of the bond proceeds, as estimated by the commissioner, is appropriated to the commissioner
for the payment of principal and interest on the appropriation bonds.

(c) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 21 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest, and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.

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

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

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

new text begin (g) Notwithstanding Minnesota Statutes, section 16A.642, the bond authorization and
appropriation of bond proceeds for this project are available until December 31, 2027.
new text end

Sec. 4.

Minnesota Statutes 2022, section 16B.307, is amended to read:

16B.307 ASSET PRESERVATION APPROPRIATIONS.

Subdivision 1.

Standards.

(a) Article XI, section 5, clause (a), of the constitution requires
that state general obligation bonds be issued to finance only the acquisition or betterment
of public land, buildings, and other public improvements of a capital nature. Money
appropriated for asset preservation, whether from state bond proceeds or from other revenue,
is subject to the following additional limitations:

(b) An appropriation for asset preservation may not be used to acquire new land nor to
acquire or construct new buildings deleted text begin , deleted text end new text begin or new text end additions to buildings deleted text begin , or major new improvements deleted text end .

(c) An appropriation for asset preservation may be used only for a capital expenditure
on a capital asset previously owned by the state, within the meaning of generally accepted
accounting principles as applied to public expenditures. The commissioner of administration
will consult with the commissioner of management and budget to the extent necessary to
ensure this and will furnish the commissioner of management and budget a list of projects
to be financed from the account in order of their priority. The legislature assumes that many
projects for preservation and replacement of portions of existing capital assets will constitute
betterments and capital improvements within the meaning of the constitution and capital
expenditures under generally accepted accounting principles, and will be financed more
efficiently and economically under this section than by direct appropriations for specific
projects.

(d) Categories of projects considered likely to be most needed and appropriate for asset
preservation appropriations are the following:

(1) new text begin major new text end projects to deleted text begin remove deleted text end new text begin address new text end life safety hazards new text begin for existing buildings and sites,
including but not limited to security new text end , deleted text begin like deleted text end building code violations or structural defects.
Notwithstanding paragraph (b), a project in this category may include an addition to an
existing building if it is a required component of the hazard deleted text begin removal deleted text end new text begin abatement new text end project;

(2) projects to eliminate or contain hazardous substances like asbestos or lead paint;

(3) major projects to new text begin address accessibility; address building code violations; and new text end replace
or repair roofs, windows, tuckpointing, mechanical deleted text begin or deleted text end new text begin , new text end electrical new text begin , plumbing or other building new text end
systems, utility infrastructure, tunnels, site deleted text begin renovations deleted text end new text begin improvements new text end necessary to support
building use, and structural components necessary to preserve the exterior and interior of
existing buildings; and

(4) new text begin major new text end projects to deleted text begin renovate deleted text end new text begin repair new text end parking deleted text begin structures deleted text end new text begin facilities and surface lots new text end .

(e) Up to ten percent of an appropriation subject to this section may be used for design
costs for projects eligible to be funded under this section in anticipation of future asset
preservation appropriations.

Subd. 2.

Report.

By deleted text begin January 15 deleted text end new text begin March 1 new text end of each year, the commissioner of an agency
that has received an appropriation for asset preservation shall submit to the commissioner
of management and budget, the chairs of the legislative committees or divisions that currently
oversee the appropriations to the agency, and to the chairs of the senate and house of
representatives Capital Investment Committees, a list of the projects that have been funded
with money under this program during the preceding calendar year, as well as a list of those
priority asset preservation projects for which state bond proceeds fund appropriations will
be sought during that year's legislative session.

Sec. 5.

new text begin [16B.324] STATE BUILDINGS; RENEWABLE ENERGY PRODUCTION
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "State agency" has the meaning given in section 15.01 and includes the Office of
Higher Education, Housing Finance Agency, Pollution Control Agency, Metropolitan
Council, Information Technology Services, and Bureau of Mediation Services.
new text end

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin A state building renewable energy production account is
established to provide funds to state agencies to design, construct, and equip renewable
energy production improvement projects at state buildings.
new text end

new text begin Subd. 3. new text end

new text begin Account management. new text end

new text begin The commissioner shall manage and administer the
state building renewable energy production account through the Office of Enterprise
Sustainability.
new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin A state agency applying for renewable energy production
improvement funds must submit an application to the commissioner on a form, in the manner,
and at the time prescribed by the commissioner. An applicant must supply the following
information:
new text end

new text begin (1) the total estimated cost of the renewable energy production improvements project
and the amount sought;
new text end

new text begin (2) a description of the renewable energy production improvements project;
new text end

new text begin (3) a detailed budget for the project, including all sources and uses of money;
new text end

new text begin (4) calculations sufficient to demonstrate the expected monetary savings that will result
from construction and installation of the renewable energy production improvements project;
and
new text end

new text begin (5) any additional information requested by the commissioner.
new text end

Sec. 6.

new text begin [116.196] STORMWATER CONSTRUCTION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purposes; public interest; declaration of policy. new text end

new text begin The legislature finds
that enhanced stormwater infrastructure is needed to properly manage stormwater from
frequent, heavy rain and other weather events that have increased community flooding due
to aging and undersized stormwater systems; that managing stormwater also protects state
natural resources and the health, safety, and welfare of its citizens; that opportunities to
upgrade stormwater infrastructure are not being fully realized by individual political
subdivisions, Tribal governments, or by agreements among subdivisions; and that therefore
it is necessary to provide capital assistance to allow for the planning and installation of
stormwater infrastructure that can manage increases in precipitation and other causes of
runoff.
new text end

new text begin Subd. 2. new text end

new text begin Administration; assurance of funds. new text end

new text begin The commissioner may provide technical
and financial assistance for the development and improvement of stormwater infrastructure
from appropriations made for the purposes of this section. Money appropriated for the
purposes of this program must be distributed as grants. An individual project may receive
grants up to 80 percent of the capital cost of the project.
new text end

new text begin Subd. 3. new text end

new text begin Program established. new text end

new text begin The commissioner shall establish a stormwater
infrastructure funding program to provide supplemental assistance to political subdivisions
and Tribal governments. When money is appropriated for grants under this program, the
commissioner shall award grants to political subdivisions and Tribal governments up to a
maximum of $5,000,000 per project to cover up to 80 percent of the cost of each stormwater
infrastructure project necessary to:
new text end

new text begin (1) increase stormwater system capacity or stormwater storage;
new text end

new text begin (2) address environmental damage caused by weather extremes;
new text end

new text begin (3) prevent localized flooding;
new text end

new text begin (4) create stormwater systems that can manage flows from heavy rains;
new text end

new text begin (5) address public safety concerns caused by undersized stormwater systems; or
new text end

new text begin (6) ensure continuation of critical services during severe weather.
new text end

new text begin Subd. 4. new text end

new text begin Grant application. new text end

new text begin Application for a grant must be made on a form prescribed
by the commissioner, including a project schedule and cost estimate for the work necessary
to comply with the requirements listed in subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Grant approval. new text end

new text begin The commissioner shall not grant money for an eligible project
unless:
new text end

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

new text begin (2) the project has been determined to be grant eligible.
new text end

new text begin Subd. 6. new text end

new text begin Grant disbursement. new text end

new text begin Disbursement of a grant must be made for eligible project
costs as incurred by the political subdivision or Tribal government and in accordance with
applicable state and federal laws and rules governing the payments.
new text end

Sec. 7.

new text begin [174.09] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; accounts new text end

new text begin (a) A transportation facilities capital program
is established to prioritize among eligible projects that:
new text end

new text begin (1) support the programmatic mission of the department;
new text end

new text begin (2) extend the useful life of existing buildings; or
new text end

new text begin (3) renovate or construct facilities to meet the department's current and future operational
needs.
new text end

new text begin (b) Projects under the transportation facilities capital program are funded by proceeds
from the sale of trunk highway bonds or from other funds appropriated for the purposes of
this section.
new text end

new text begin (c) A transportation facilities capital account is established in the trunk highway fund.
The account consists of all money appropriated from the trunk highway fund for the purposes
of this section and any other money donated, allotted, transferred, or otherwise provided to
the account by law. Money in the account is appropriated to the commissioner for the
purposes specified and consistent with the standards and criteria set forth in this section.
new text end

new text begin (d) A transportation facilities capital account is established in the bond proceeds account
of the trunk highway fund. The account consists of trunk highway bond proceeds appropriated
to the commissioner. Money in the account may only be expended on trunk highway
purposes, which includes the purposes in this section.
new text end

new text begin Subd. 2. new text end

new text begin Standards. new text end

new text begin (a) Minnesota Constitution, article XIV, section 11, states that trunk
highway bonds may be issued to finance the construction, improvement, and maintenance
of the public highway system in the state. The legislature assumes that many projects for
preservation and replacement of portions of existing capital assets will constitute the
construction, improvement, maintenance of the public highway system within the meaning
of the constitution and capital expenditures under generally accepted accounting principles,
and will be financed more efficiently and economically under the program than by direct
appropriations for specific projects.
new text end

new text begin (b) When allocating funding under this section, the commissioner must review the
projects deemed eligible under subdivision 3 and prioritize allocations using the criteria in
subdivision 4. Money allocated to a specific project in an appropriation or other law must
be allocated as provided by the law.
new text end

new text begin Subd. 3. new text end

new text begin Eligible expenditures; limitations. new text end

new text begin (a) A project is eligible under this section
only if it is a capital expenditure on a capital building asset owned or to be owned by the
state within the meaning of accepted accounting principles as applied to public expenditures.
new text end

new text begin (b) Capital budget expenditures that are eligible under this section include but are not
limited to: acquisition of land and buildings and the predesign, design, engineering,
construction, furnishing, and equipping of district headquarter buildings, truck stations, salt
storage or other unheated storage buildings, deicing and anti-icing facilities, fuel-dispensing
facilities, highway rest areas, and vehicle weigh and inspection stations.
new text end

new text begin Subd. 4. new text end

new text begin Criteria for priorities. new text end

new text begin When prioritizing funding allocation among projects
eligible under subdivision 3, the commissioner must consider:
new text end

new text begin (1) whether a project ensures the effective and efficient condition and operation of the
facility;
new text end

new text begin (2) the urgency in ensuring the safe use of existing buildings;
new text end

new text begin (3) the project's total life-cycle cost;
new text end

new text begin (4) additional criteria for priorities otherwise specified in law, statute, or rule that applies
to a category listed in the act making an appropriation for the program; and
new text end

new text begin (5) any other criteria the commissioner deems necessary.
new text end

Sec. 8.

Minnesota Statutes 2022, section 174.38, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them.

(b) "Active transportation" means bicycling, pedestrian activities, and other forms of
nonmotorized transportation.

new text begin (c) "Bond-eligible costs" means expenditures under subdivision 6, clause (1), for publicly
owned infrastructure in this state with a useful life of at least ten years.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end "Commissioner" means the commissioner of transportation.

Sec. 9.

Minnesota Statutes 2022, section 174.38, subdivision 3, is amended to read:

Subd. 3.

Active transportation account.

new text begin (a) new text end An active transportation account is
established in the special revenue fund. The account consists of funds provided by law and
any other money donated, allotted, transferred, or otherwise provided to the account. Money
in the account must be expended only on a project that receives financial assistance under
this section.

new text begin (b) An active transportation account is established in the bond proceeds fund. The account
consists of state bond proceeds appropriated to the commissioner. Money in the account
may only be expended on bond-eligible costs of a project receiving financial assistance as
provided under this section. Money in the account may only be expended on a project that
is publicly owned.
new text end

Sec. 10.

Minnesota Statutes 2022, section 256E.36, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Commissioner" means the commissioner of human services.

(c) "Eligible organization" means a local governmental unit, new text begin Tribal government, new text end federally
recognized Tribal Nation, or nonprofit organization providing or seeking to provide
emergency services for homeless persons.

(d) "Emergency services" means:

(1) providing emergency shelter for homeless persons; and

(2) assisting homeless persons in obtaining essential services, including:

(i) access to permanent housing;

(ii) medical and psychological help;

(iii) employment counseling and job placement;

(iv) substance abuse treatment;

(v) financial assistance available from other programs;

(vi) emergency child care;

(vii) transportation; and

(viii) other services needed to stabilize housing.

Sec. 11.

Minnesota Statutes 2022, section 256E.37, subdivision 1, is amended to read:

Subdivision 1.

Grant authority.

The commissioner may make grants to state agencies
deleted text begin and deleted text end new text begin , new text end political subdivisions new text begin , nonprofit organizations, and Tribal governments new text end to construct or
rehabilitate facilities for early childhood programs, crisis nurseries, or parenting time centers.
The following requirements apply:

(1) new text begin For grants funded with general obligation bonds, new text end the facilities must be owned by the
state or a political subdivision, but may be leased under section 16A.695 to organizations
that operate the programs. The commissioner must prescribe the terms and conditions of
the leases.

new text begin (2) For grants funded with general fund appropriations, the facilities may be owned by
a political subdivision, nonprofit organization, or Tribal government.
new text end

deleted text begin (2) deleted text end new text begin (3) new text end A grant for an individual facility must not exceed $500,000 for each program
that is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three
programs or more. Programs include Head Start, School Readiness, Early Childhood Family
Education, licensed child care, and other early childhood intervention programs.

deleted text begin (3) deleted text end new text begin (4) new text end State appropriations must be matched on a 50 percent basis with nonstate funds.
The matching requirement must apply program wide and not to individual grants.

deleted text begin (4) deleted text end new text begin (5) new text end At least 80 percent of grant funds must be distributed to facilities located in
counties not included in the definition under section 473.121, subdivision 4.

Sec. 12.

Minnesota Statutes 2022, section 446A.081, subdivision 8, is amended to read:

Subd. 8.

Loan conditions.

(a) When making loans from the drinking water revolving
fund, the authority shall comply with the conditions of the federal Safe Drinking Water Act,
including the criteria in this subdivision.

(b) Loans must be made at or below market interest rates, including zero interest loans,
for terms not to exceed those allowed under the federal Safe Drinking Water Act.

(c) The annual principal and interest payments must begin no later than one year after
completion of the project. Loans must be amortized no later than 20 years after project
completion, unless the recipient's average annual residential drinking water system cost
after completion of the project would exceed 1.2 percent of median household income in
the recipient governmental unit or entity, in which case the loan must be fully amortized
no later than 30 years after project completion.

(d) A loan recipient must identify and establish a dedicated source of revenue for
repayment of the loan, and provide for a source of revenue to properly operate, maintain,
and repair the water system.

(e) The fund must be credited with all payments of principal and interest on all loans,
except the costs as permitted under section 446A.04, subdivision 5, paragraph (a).

(f) A loan may not be used to pay operating expenses or current obligations, unless
specifically allowed by the federal Safe Drinking Water Act.

(g) A loan made by the authority must be secured by notes or bonds of the governmental
unit and collateral to be determined by the authority for private borrowers.

new text begin (h) Notwithstanding Minnesota Rules, part 7380.0272, the interest rate for loans made
for the replacement of lead service lands shall be zero percent.
new text end

Sec. 13.

Minnesota Statutes 2022, section 446A.081, subdivision 9, is amended to read:

Subd. 9.

Other uses of fund.

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

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

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

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

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

(5) to earn interest on fund accounts;

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

(7) to develop and administer programs for water system supervision, source water
protection, and related programs required under the act;

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

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

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

(11) to provide principal forgiveness or grants to the extent permitted under the federal
Safe Drinking Water Act and other federal laws for deleted text begin 50 percent of the project costs up to a
maximum of $250,000 for deleted text end projects to replace the privately owned portion of drinking water
lead service lines deleted text begin . deleted text end new text begin ; and
new text end

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

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

Sec. 14.

Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:

Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on
terms and conditions the agency deems appropriate, made for one or more of the following
purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;

(6) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in part,
outstanding bonds previously issued by the agency or another government unit to finance
or refinance such costs; deleted text begin and
deleted text end

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housing deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) to finance costs of acquisition and construction of multifamily rental housing for
households with incomes at or below 50 percent of area median income. Among comparable
proposals, the agency must give priority to requests for projects that serve households at
the lowest incomes.
new text end

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:

(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
seniors;

(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;

(4) provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and

(5) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

To the extent practicable, the agency shall balance the loans made between projects in the
metropolitan area and projects outside the metropolitan area. Of the loans made to projects
outside the metropolitan area, the agency shall, to the extent practicable, balance the loans
made between projects in counties or cities with a population of 20,000 or less, as established
by the most recent decennial census, and projects in counties or cities with populations in
excess of 20,000.

Sec. 15.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 2i. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2h, the agency may issue up to $250,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end

Sec. 16.

Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:

Subd. 5.

Additional appropriation.

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

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

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

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

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

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

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

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

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

new text begin (j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
bonds issued under subdivision 2i remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.
new text end

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

Sec. 17.

Laws 2018, chapter 214, article 1, section 19, subdivision 3, is amended to read:

Subd. 3. Bemidji, Montevideo, and Preston - New Veterans Homes

32,000,000

(a) $12,400,000 of this appropriation is to
predesign, design, construct, furnish, and
equip a veterans home in Bemidji. $9,400,000
of this appropriation is to predesign, design,
construct, furnish, and equip a veterans home
in Montevideo. $10,200,000 of this
appropriation is to predesign, design,
construct, furnish, and equip a veterans home
in Preston. new text begin Notwithstanding Minnesota
Statutes, section 16A.642, the bond sale
authorization and appropriation of bond
proceeds for this project are available until
December 31, 2025.
new text end

(b) These veterans homes are subject to the
requirements of the People's Veterans Homes
Act in article 2.

Sec. 18. new text begin STATE PARKING ACCOUNT.
new text end

new text begin Notwithstanding Laws 2013, chapter 136, section 3, subdivision 5, and Minnesota
Statutes, section 16A.643, for fiscal year 2024 and each year thereafter, the state parking
account is not required to make the transfer to the state bond fund mandated by Laws 2013,
chapter 136, section 3, subdivision 5.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 16A.93; 16A.94; and 16A.96, new text end new text begin are repealed.
new text end

Sec. 20. new text begin EFFECTIVE DATE.
new text end

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

APPENDIX

Repealed Minnesota Statutes: 23-02208

16A.93 MINNESOTA PAY-FOR-PERFORMANCE ACT.

Sections 16A.93 to 16A.96 may be cited as the "Minnesota Pay-for-Performance Act of 2011."

16A.94 PAY-FOR-PERFORMANCE PROGRAM.

Subdivision 1.

Pilot program established.

The commissioner shall implement a pilot program to demonstrate the feasibility and desirability of using state appropriation bonds to pay for certain services based on performance and outcomes for the people served.

Subd. 2.

Oversight committee.

(a) The commissioner shall appoint an oversight committee to:

(1) identify criteria to select one or more services to be included in the pilot program;

(2) identify the conditions of performance and desired outcomes for the people served by each service selected;

(3) identify criteria to evaluate whether a service has met the performance conditions; and

(4) provide any other advice or assistance requested by the commissioner.

(b) The oversight committee must include the commissioners of the Departments of Human Services, Employment and Economic Development, and Administration, or their designees; a representative of a nonprofit organization with experience in performance contracting; and any other person or organization that the commissioner determines would be of assistance in developing and implementing the pilot program.

Subd. 3.

Contracts.

The commissioner and the commissioner of the agency with a service to be provided through the pilot program may enter into a pay-for-performance contract with a provider that meets the criteria identified by the oversight committee. The contract must specify the service to be provided, the time frame in which it is to be provided, the outcome required for payment, and any other terms deemed necessary or convenient for implementation of the pilot program. The commissioner shall pay a provider that has met the terms and conditions of a contract with money appropriated to the commissioner from the special appropriation bond proceeds account established in section 16A.96. At a minimum, before the commissioner pays a provider, the commissioner must determine that the provider has met the return on investment criteria in subdivision 4.

Subd. 4.

Return on investment calculation.

The commissioner, in consultation with the oversight committee, must establish the method and data required for calculating the state's return on investment. The data at a minimum must include:

(1) state income taxes and any other revenues collected in the year after the service was provided that would not have been collected without the service; and

(2) costs avoided by the state by providing the service.

Prior to entering into a contract under subdivision 3, the commissioner in consultation with the oversight committee must determine that the services provided under the contract will yield a positive return on investment for the state that will cover the estimated state costs in financing and administering the pilot program through documented increased state tax revenue or cost avoidance.

Subd. 5.

Report to governor and legislature.

The commissioner must report to the governor and legislative committees with jurisdiction over capital investment, finance, and ways and means, and the services included in the pilot program, by January 15 of each year following a year in which the pilot program is operating. The report must describe and discuss the criteria for selection and evaluation of services to be provided through the program, the net benefits to the state of the program, the state's return on investment, the cost of the services provided by other means in the most recent past, the time frame for payment for the services, and the timing and costs for sale and issuance of the bonds authorized in section 16A.96.

16A.96 MINNESOTA PAY-FOR-PERFORMANCE PROGRAM; APPROPRIATION BONDS.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this section.

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

(1) money appropriated by law in any biennium for debt service due with respect to obligations described in subdivision 2, paragraph (b);

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

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

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

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

Subd. 2.

Authority.

(a) Subject to the limitations of this subdivision, the commissioner of management and budget may sell and issue appropriation bonds of the state under this section for the purposes of the Minnesota pay-for-performance program established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to a special appropriation bond proceeds account in the state treasury. Net income from investment of the proceeds, as estimated by the commissioner, must be credited to the special appropriation bond proceeds account.

(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient funds for achieving the purposes authorized as provided under paragraph (a), and pay debt service, pay costs of issuance, make deposits to reserve funds, pay the costs of credit enhancement, or make payments under other agreements entered into under paragraph (d); provided, however, that bonds issued and unpaid shall not exceed $10,000,000 in principal amount, excluding refunding bonds sold and issued under subdivision 4. The commissioner may sell and issue bonds only in an amount that the commissioner determines will result in principal and interest payments less than the amount of savings to be generated through pay-for-performance contracts under section 16A.94. For programs achieving savings under a pay-for-performance contract, the commissioner must reduce general fund appropriations by at least the amount of principal and interest payments on bonds issued under this section.

(c) Appropriation bonds may be issued in one or more series on the terms and conditions the commissioner determines to be in the best interests of the state, but the term on any series of bonds may not exceed 20 years.

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

Subd. 3.

Form; procedure.

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

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

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

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

Subd. 4.

Refunding bonds.

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

Subd. 5.

Appropriation bonds as legal investments.

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

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

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

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

Subd. 6.

No full faith and credit; state not required to make appropriations.

The appropriation bonds are not public debt of the state, and the full faith, credit, and taxing powers of the state are not pledged to the payment of the appropriation bonds or to any payment that the state agrees to make under this section. Appropriation bonds shall not be obligations paid directly, in whole or in part, from a tax of statewide application on any class of property, income, transaction, or privilege. Appropriation bonds shall be payable in each fiscal year only from amounts that the legislature may appropriate for debt service for any fiscal year, provided that nothing in this section shall be construed to require the state to appropriate funds sufficient to make debt service payments with respect to the bonds in any fiscal year.

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds and interest credited to the special appropriation bond proceeds account are appropriated to the commissioner for payment of contract obligations under the pay-for-performance program, as permitted by state and federal law, reasonable administrative costs of the program that are directly attributable to the program, issuance costs, and nonsalary expenses incurred in conjunction with the sale of the appropriation bonds.

Subd. 8.

Appropriation for debt service.

The amount needed to pay principal and interest on appropriation bonds issued under this section is appropriated each year to the commissioner from the general fund subject to the repeal, unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6.

Subd. 9.

Administrative costs.

The commissioner may accept donations from private sources to defray administrative costs under this section. Amounts received are appropriated to the commissioner.

Subd. 10.

Validation.

(a) Appropriation bonds issued under this section may be validated in the manner provided by this subdivision. If comparable appropriation bonds are judicially determined to be valid, nothing in this subdivision shall be construed to prevent sale or delivery of any appropriation bonds or notes after entry of a judgment of validation by the Minnesota Supreme Court as provided in this subdivision with respect to the appropriation bonds authorized under this section.

(b) Any appropriation bonds issued under this section that are validated shall be validated in the manner provided by this subdivision.

(c) The Minnesota Supreme Court shall have original jurisdiction to determine the validation of appropriation bonds and all matters connected with the issuance of the bonds.

(d) The commissioner may determine the commissioner's authority to issue appropriation bonds and the legality of all proceedings in connection with issuing bonds. For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme Court against the state and the taxpayers and citizens.

(e) As a condition precedent to filing of a complaint for the validation of appropriation bonds, the commissioner shall take action providing for the issuance of appropriation bonds in accordance with law.

(f) The complaint shall set out the state's authority to issue appropriation bonds, the action or proceeding authorizing the issue and its adoption, all other essential proceedings had or taken in connection with issuing bonds, the amount of the appropriation bonds to be issued and the maximum interest they are to bear, and all other pertinent matters.

(g) The Minnesota Supreme Court shall issue an order directed against the state and taxpayers, citizens, and others having or claiming any right, title, or interest affected by the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, in general terms and without naming them, and the state through its attorney general to appear before the Minnesota Supreme Court at a designated time and place and show why the complaint should not be granted and the proceedings and appropriation bonds validated. A copy of the complaint and order shall be served on the attorney general at least 20 days before the time fixed for hearing. The attorney general shall examine the complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds in question has not been duly authorized, defense shall be made by the attorney general as the attorney general deems appropriate.

(h) Before the date set for hearing, as directed by the Minnesota Supreme Court, either the clerk of the Minnesota Appellate Courts or the commissioner shall publish a copy of the order in a legal newspaper of general circulation in Ramsey County and the state, at least once each week for two consecutive weeks, commencing with the first publication, which shall not be less than 20 days before the date set for hearing. By this publication, all taxpayers, citizens, and others having or claiming any right, title, or interest in the state, are made parties defendant to the action and the Minnesota Supreme Court has jurisdiction of them to the same extent as if named as defendants in the complaint and personally served with process.

(i) Any taxpayer, citizen, or person interested may become a party to the action by moving against or pleading to the complaint at or before the time set for hearing. The Minnesota Supreme Court shall determine all questions of law and fact and make orders that will enable it to properly try and determine the action and render a final judgment within 30 days of the hearing with the least possible delay.

(j) If the judgment validates appropriation bonds, the judgment is forever conclusive as to all matters adjudicated and as against all parties affected and all others having or claiming any right, title, or interest affected by the issuance of appropriation bonds, or to be affected in any way by issuing the bonds, and the validity of appropriation bonds or of any revenues pledged for the payment of the bonds, or of the proceedings authorizing the issuance of the bonds, including any remedies provided for their collection, shall never be called in question in any court by any person or party.

(k)(1) Appropriation bonds, when validated under this section, shall have stamped or written on the bonds, by the proper officers of the state issuing them, a statement in substantially the following form: "This bond is one of a series of appropriation bonds, which were validated by judgment of the Supreme Court of the State of Minnesota, rendered on ....., (year) ......".

(2) A certified copy of the judgment or decree shall be received as evidence in any court in this state.