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Capital IconMinnesota Legislature

HF 3692

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 05/18/2016 04:09pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and other improvements of a capital nature with certain
conditions; modifying previous appropriations; establishing new programs
and modifying existing programs; authorizing the sale and issuance of state
bonds; appropriating money; amending Minnesota Statutes 2014, sections 85.34,
subdivision 1; 116J.431, subdivisions 1, 2, 4, 6; 174.50, subdivision 7; 446A.072;
446A.073, as amended; 446A.081, subdivision 9; 446A.12, subdivision 1;
Minnesota Statutes 2015 Supplement, sections 16A.967, subdivisions 2, 7;
85.015, subdivision 6; Laws 2002, chapter 393, section 22, subdivision 6, as
amended; Laws 2010, chapter 189, section 7, subdivision 5; Laws 2012, chapter
293, sections 7, subdivision 3; 17, subdivision 4; Laws 2014, chapter 294, article
1, sections 7, subdivision 15; 17, subdivisions 6, 12; Laws 2015, First Special
Session chapter 5, article 1, sections 10, subdivision 3; 19; repealing Minnesota
Statutes 2014, section 123A.446.

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 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, paragraph (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, paragraphs (b) to (j),
or article XIV. Unless otherwise specified, money appropriated in this act 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, the appropriations
in this act are available until the project is completed or abandoned subject to Minnesota
Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in
this act 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.
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 65,167,000
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 38,000,000
new text end

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

new text begin Subd. 3. new text end

new text begin Chemical Sciences and Advanced
Materials Science Building
new text end

new text begin 27,167,000
new text end

new text begin To design, construct, furnish, and equip
a new laboratory building on the Duluth
campus, including classrooms and research
and undergraduate instructional laboratories.
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 appropriation 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 72,723,000
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
35,500,000
new text end

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

new text begin Subd. 3. new text end

new text begin Minnesota State Community and
Technical College
new text end

new text begin (a) Fergus Falls campus
new text end
new text begin 978,000
new text end

new text begin To design, renovate, furnish, and equip
a new Center for Student and Workforce
Success (CSWS) that integrates the Regional
Workforce Center. The board must enter into
a lease agreement with the commissioner of
employment and economic development,
or partners of the commissioner, for use of
the workforce center subject to Minnesota
Statutes, section 16A.695. The board must
use nonstate money for the remainder of the
cost of the renovation.
new text end

new text begin (b) Wadena campus
new text end
new text begin 820,000
new text end

new text begin To design, renovate, furnish, and equip
the relocation of the current library to
underutilized space and converting the
vacated space into a centralized student
services center.
new text end

new text begin Subd. 4. new text end

new text begin Northland Community and Technical
College, East Grand Forks
new text end

new text begin 826,000
new text end

new text begin To design, renovate, furnish, and equip
science and radiological lab space on the
East Grand Forks campus.
new text end

new text begin Subd. 5. new text end

new text begin Riverland Community College, Albert
Lea
new text end

new text begin 7,427,000
new text end

new text begin To design, construct, furnish, and equip the
renovation and expansion of the Trade and
Industrial Education Center on the Albert Lea
campus of Riverland Community College.
new text end

new text begin Subd. 6. new text end

new text begin South Central College, North
Mankato
new text end

new text begin 8,600,000
new text end

new text begin To design, renovate, renew, furnish, and
equip laboratory, classroom and office spaces
on the North Mankato campus.
new text end

new text begin Subd. 7. new text end

new text begin St. Cloud State University
new text end

new text begin 18,572,000
new text end

new text begin To construct, renovate, furnish, and
equip Eastman Hall for the relocation of
consolidated student health services and
academic programs.
new text end

new text begin Subd. 8. 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. 9. 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 subdivision 8
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 Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 16,070,000
new text end

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

new text begin Subd. 2. new text end

new text begin Library Construction Grants
new text end

new text begin 2,000,000
new text end

new text begin For library construction grants under
Minnesota Statutes, section 134.45.
new text end

new text begin Subd. 3. new text end

new text begin Red Lake Independent School District
No. 38 Facility Projects
new text end

new text begin 14,070,000
new text end

new text begin (a) This appropriation is from the maximum
effort school loan fund for a capital loan
to Independent School District No. 38,
Red Lake, as provided in Minnesota
Statutes, sections 126C.60 to 126C.72.
This appropriation is for the following
projects at the Red Lake Elementary School
and early childhood center: constructing,
furnishing, and equipping new classrooms
connecting the early childhood center and the
elementary school; renovating classrooms,
computer labs, cafeteria expansion, and
student support areas; updating mechanical
systems; and relocating the main entrance
and administrative office.
new text end

new text begin (b) Before any capital loan contract is
approved under this subdivision, the district
must provide documentation acceptable
to the commissioner on how the capital
loan will be used. If any portion of the
appropriation remains after completion of
the identified project components, the district
may, with the commissioner's approval, use
the money for other items identified in the
review and comment submission.
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 2,050,000
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 2,000,000
new text end

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

new text begin Subd. 3. new text end

new text begin Minnesota State Academies Security
Corridor
new text end

new text begin 50,000
new text end

new text begin For predesign for a safety corridor on the
Minnesota State Academy for the Deaf
campus.
new text end

Sec. 6. 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 33,990,000
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 12,000,000
new text end

new text begin For the renovation 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: (1) 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; and (2) this
appropriation may be used for projects to
remove life safety hazards such as building
code violations or structural defects.
new text end

new text begin Subd. 3. new text end

new text begin Flood Hazard Mitigation
new text end

new text begin 3,500,000
new text end

new text begin (a) For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161.
new text end

new text begin (b) Levee projects, to the extent practical,
shall meet the state standard of three feet
above the 100-year flood elevation.
new text end

new text begin (c) Project priorities shall be determined by
the commissioner as appropriate and based
on need.
new text end

new text begin (d) This appropriation includes $750,000
for the city of Browns Valley project and
$1,800,000 for the city of Ortonville project.
new text end

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

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

new text begin Subd. 4. new text end

new text begin Dam Renovation, Repair, Removal
new text end

new text begin 9,000,000
new text end

new text begin (a) To renovate or remove publicly owned
dams. The commissioner shall determine
project priorities as appropriate under
Minnesota Statutes, sections 103G.511 and
103G.515. Of this appropriation:
new text end

new text begin $500,000 is for emergencies on state-owned
dams;
new text end

new text begin $3,600,000 is for a grant to the city of
Lanesboro for repair of the Lanesboro dam
and notwithstanding the match requirements
in Minnesota Statutes, section 103G.511,
does not require a nonstate contribution.
This includes funding for repairs of the
hydropower system;
new text end

new text begin $2,500,000 is for repairs of the Lake Bronson
dam;
new text end

new text begin $500,000 is for a grant to the city of Pelican
Rapids for engineering work for the Pelican
Rapids dam;
new text end

new text begin $200,000 is for a grant to the city of Norway
Lake for engineering work on the Norway
Lake dam;
new text end

new text begin $200,000 is for a grant to Yellow Medicine
County for the Canby R-6 impoundment dam;
new text end

new text begin $100,000 is for a grant to St. Louis County
for the Little Stone Lake dam; and
new text end

new text begin $1,400,000 is for state dams at Brawner,
Collinwood, Grindstone River, and Sullivan.
new text end

new text begin 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. 5. new text end

new text begin Trail Development
new text end

new text begin 6,190,000
new text end

new text begin $2,590,000 is for the Glacial Lakes Trail,
to complete an approximately six and
one-quarter mile trail connection between
New London and Sibley State Park, and
repair of the bicycle trail in Sibley State Park.
new text end

new text begin $3,600,000 is for acquisition and
development in the Cuyuna Country State
Recreation Area, including the Cuyuna
Mountain Bike System.
new text end

new text begin Subd. 6. new text end

new text begin Champlin Mill Pond
new text end

new text begin 3,300,000
new text end

new text begin For a grant to the city of Champlin to dredge
and remove sediment and for other capital
improvements of the Champlin Mill Pond
necessary to improve water quality, restore
fish habitat, and provide other public benefits.
new text end

new text begin Subd. 7. 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. 7. 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 20,505,000
new text end

new text begin To the commissioner of 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 St. Louis River Cleanup
new text end

new text begin 12,705,000
new text end

new text begin To design and implement contaminated
sediment management actions identified in
the St. Louis River remedial action plan to
restore water quality in the St. Louis River
Area of Concern.
new text end

new text begin Subd. 3. new text end

new text begin Redwood-Cottonwood Rivers Joint
Powers - Lake Redwood Reclamation and
Enhancement Project
new text end

new text begin 7,800,000
new text end

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

Sec. 8. 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 7,000,000
new text end

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

new text begin Subd. 2. new text end

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

new text begin 6,000,000
new text end

new text begin (a) To acquire conservation easements from
landowners to preserve, restore, create, and
enhance wetlands and associated uplands
of prairie and grasslands, and restore and
enhance rivers and streams, riparian lands,
and associated uplands of prairie and
grasslands in order to protect soil and water
quality, support fish and wildlife habitat,
reduce flood damage, and provide other
public benefits. The provisions of Minnesota
Statutes, section 103F.515, apply to this
program.
new text end

new text begin (b) The board shall give priority to leveraging
federal money by enrolling targeted new
lands or enrolling environmentally sensitive
lands that have expiring federal conservation
agreements.
new text end

new text begin (c) The board is authorized to enter into
new agreements and amend past agreements
with landowners as required by Minnesota
Statutes, section 103F.515, subdivision 5, to
allow for restoration. Of this appropriation,
up to five percent 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 1,000,000
new text end

new text begin To acquire land or permanent easements
and to restore, create, enhance, and preserve
wetlands to replace those wetlands drained or
filled as a result of the repair, reconstruction,
replacement, or rehabilitation of existing
public roads as required by Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m). The board may vary
the priority order of Minnesota Statutes,
section 103G.222, subdivision 3, paragraph
(a), to implement an in-lieu fee agreement
approved by the U.S. Army Corps of
Engineers under section 404 of the 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.
new text end

Sec. 9. new text begin RURAL FINANCE AUTHORITY
new text end

new text begin $
new text end
new text begin 35,000,000
new text end

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

Sec. 10. 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 4,000,000
new text end

new text begin To the Minnesota Zoological Garden 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 4,000,000
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, the board may use this
appropriation to replace buildings that are
poor in condition, outdated, and no longer
support the work of the Minnesota Zoo and
to construct and renovate trails and roads on
the Minnesota Zoo site.
new text end

Sec. 11. 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 9,850,000
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 Centennial Parking Ramp
new text end

new text begin 7,000,000
new text end

new text begin To complete design and for structural repairs
to the Centennial parking ramp, including
removal of the top deck green space to
provide additional parking capacity, repairing
damaged post-tension cables, and installation
of a deck surface protection coating.
new text end

new text begin Subd. 3. new text end

new text begin Capital Asset Preservation and
Replacement Account
new text end

new text begin 2,500,000
new text end

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

new text begin Subd. 4. new text end

new text begin Capitol Complex Monuments and
Memorials
new text end

new text begin 350,000
new text end

new text begin To design and complete critical repairs to the
Peace Officers and Roy Wilkins memorials
located on the Capitol complex.
new text end

Sec. 12. new text begin MN.IT
new text end

new text begin $
new text end
new text begin $1,432,000
new text end

new text begin To the commissioner of administration
to predesign, design, construct, renovate,
furnish, and equip existing state data
center facilities at the Bureau of Criminal
Apprehension's Maryland Avenue office
building and at the Department of Revenue's
Stassen Office Building for the purpose
of decommissioning and repurposing into
usable office space.
new text end

Sec. 13. new text begin MILITARY AFFAIRS
new text end

new text begin $
new text end
new text begin 2,500,000
new text end

new text begin To the adjutant general for asset preservation
improvements and betterments of a capital
nature at military affairs facilities statewide,
to be spent in accordance with Minnesota
Statutes, section 16B.307.
new text end

Sec. 14. new text begin PUBLIC SAFETY
new text end

new text begin $
new text end
new text begin 3,521,000
new text end

new text begin To the commissioner of administration to
design and construct a joint emergency
railroad and pipeline emergency response
training facility at Camp Ripley, including
the construction of stations and capital
infrastructure needed for mock disaster
training.
new text end

Sec. 15. 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
334,782,000
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 and
Rehabilitation
new text end

new text begin 90,000,000
new text end

new text begin From the bond proceeds account in the state
transportation fund to match federal money
and 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 Fund
Grants
new text end

new text begin 137,200,000
new text end

new text begin (a) From the bond proceeds account in
the state transportation fund as provided
in Minnesota Statutes, section 174.50, 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 (b) This appropriation includes money
for a grant to the city of Baxter for
acquisition of land or interests in land,
environmental analysis and environmental
cleanup, predesign, design, engineering, and
construction of improvements to Cypress
Drive, including expansion to a four-lane
divided urban roadway, between Excelsior
Road and College Road.
new text end

new text begin (c) Of this amount, $1,000,000 is for a grant
to the town of Appleton in Swift County
for upgrades to an existing township road
to provide for a paved, ten-ton capacity
township road extending between marked
Trunk Highways 7 and 119.
new text end

new text begin (d) Of this amount, $25,000,000 is for a grant
to Hennepin County for design, right-of-way
acquisition, engineering, and construction
of public improvements related to the
Interstate Highway 35W and Lake Street
access project and related improvements
within the Interstate Highway 35W corridor.
This appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete the project has been committed to
the project.
new text end

new text begin (e) Of this amount, $20,500,000 is for a grant
to Ramsey County for preliminary and final
design, environmental documentation, and
construction of the interchange of marked
Interstate Highway 694 and Rice Street in
Ramsey County.
new text end

new text begin (f) Of this amount, $700,000 is for a grant to
Redwood County for paving Nobles Avenue
as the main access road to a new State
Veterans Cemetery to be located in Paxton
Township.
new text end

new text begin Subd. 4. new text end

new text begin Rail Grade Separations
new text end

new text begin 26,749,000
new text end

new text begin (a) $14,762,000 is for a grant to the city
of Red Wing for environmental analysis,
design, engineering, removal of an existing
structure, and construction of a rail grade
crossing separation at Sturgeon Lake Road.
new text end

new text begin (b) $11,987,000 is for a grant to Anoka
County for environmental analysis, design,
engineering, removal of an existing structure,
and construction of a rail grade crossing
separation at Anoka County State-Aid
Highway 78, known as Hanson Boulevard,
in Coon Rapids.
new text end

new text begin Subd. 5. new text end

new text begin Railroad Warning Devices new text end

new text begin
1,000,000
new text end

new text begin To design, construct, and equip new rail
grade crossing warning safety devices at
active highway-rail grade crossings, or to
replace active highway-rail grade warning
safety devices that have reached the end of
their useful life.
new text end

new text begin Subd. 6. new text end

new text begin Minnesota Valley Regional Rail
Authority
new text end

new text begin 4,000,000
new text end

new text begin For a grant to the Minnesota Valley Regional
Rail Authority for the rehabilitation of
a portion of the railroad track between
Winthrop and Hanley Falls. The grant
under this subdivision may also be used for
any required environmental documentation
and remediation, predesign, design, and
rehabilitation or replacement of bridges with
new bridges or culverts between Winthrop
and Hanley Falls. A grant under this section
is in addition to any grant, loan, or loan
guarantee for this project made by the
commissioner under Minnesota Statutes,
sections 222.46 to 222.62. This appropriation
is in addition to the appropriations in Laws
2006, chapter 258, section 16, subdivision
6; Laws 2008, chapter 179, section 16,
subdivision 5; Laws 2009, chapter 93, article
1, section 11, subdivision 4; Laws 2010,
chapter 189, section 15, subdivision 5; and
Laws 2015, First Special Session chapter 5,
article 1, section 10, subdivision 4.
new text end

new text begin Subd. 7. new text end

new text begin Hennepin County - U.S. Highway 12
new text end

new text begin 15,000,000
new text end

new text begin From the bond proceeds account in the
trunk highway fund for projects, including
preliminary and final design, engineering,
environmental analysis, right-of-way
acquisition, construction, and reconstruction
on marked U.S. Highway 12 as follows:
new text end

new text begin (1) realignment at the intersections with
Hennepin County State-Aid Highway 92;
new text end

new text begin (2) realignment and safety improvements
at the intersection with Hennepin County
State-Aid Highway 90; and
new text end

new text begin (3) safety median improvements from the
interchange with Wayzata Boulevard in
Wayzata to approximately one-half mile east
of the interchange with Hennepin County
State-Aid Highway 6.
new text end

new text begin Subd. 8. new text end

new text begin Chaska - Trunk Highway 212
Interchange
new text end

new text begin 8,000,000
new text end

new text begin From the bond proceeds account in the trunk
highway fund for right-of-way acquisition
and construction of an interchange at marked
Trunk Highway 212 and Carver County
Road 140 in the city of Chaska, to support
the development of approximately 400
acres of property in the city of Chaska's
comprehensive plan.
new text end

new text begin Subd. 9. new text end

new text begin Anoka County - I-35W Interchange
in Columbus
new text end

new text begin 13,000,000
new text end

new text begin From the bond proceeds account in the
trunk highway fund for a grant to Anoka
County to: (1) complete the design, land
acquisition, engineering, and construction of
an interchange at the intersection of marked
Interstate Highway 35W, marked Trunk
Highway 97, and County State-Aid Highway
23, and (2) realign and make associated
improvements to County State-Aid Highway
54, known as West Freeway Drive, in the
city of Columbus.
new text end

new text begin Subdivision 10. new text end

new text begin I-94/Brockton Lane
Interchange
new text end

new text begin 34,000,000
new text end

new text begin From the bond proceeds account in the
trunk highway fund for the I-94/Brockton
Lane Interchange Project to construct an
interchange and auxiliary lanes on marked
Interstate Highway 94 east of the Hennepin
County State-Aid Highway 101 (Brockton
Lane) overpass in the city of Dayton.
new text end

new text begin Subd. 11. new text end

new text begin Trunk Highway Bonds - Debt Service
2017
new text end

new text begin 618,000
new text end

new text begin From the trunk highway fund in fiscal year
2017 for transfer to the state bond fund. If
this appropriation is insufficient to make all
transfers required in the year for which it is
made, the commissioner of management and
budget shall transfer the deficiency amount
under the statutory open appropriation,
and notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance and
the chairs of the senate Committee on Finance
and the house of representatives Committee
on Ways and Means of the amount of the
deficiency. Any excess appropriation cancels
to the trunk highway fund.
new text end

new text begin Subd. 12. new text end

new text begin Red Wing - Highway 61
Reconstruction
new text end

new text begin 833,000
new text end

new text begin From the trunk highway fund in fiscal
year 2017 for State Project No. 2514-122,
consisting of engineering and reconstruction
of the segment of marked U.S. Highway
61 in Red Wing from westerly of Old West
Main Street to easterly of Potter Street and
is for trunk highway costs in excess of the
engineer's estimate and associated program
delivery.
new text end

new text begin Subd. 13. new text end

new text begin Port Development Assistance
new text end

new text begin 5,000,000
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

Sec. 16. 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
23,350,000
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 Metro Orange Line BRT
new text end

new text begin 12,100,000
new text end

new text begin Up to $12,100,000, but an amount that is no
more than ten percent of the total project
cost, is for the Metropolitan Council, or for
the Metropolitan Council to make grants to
political subdivisions, to construct capital
improvements along the I-35W corridor for
completion of the Metro Orange Bus Rapid
Transit (BRT) Line.
new text end

new text begin The Metro Orange BRT Line must not follow
a route that requires an underpass or tunnel
to be built under I-494 at Knox Avenue, but
must follow the Penn Avenue route after
coming down into the circle on the bottom of
Knox Avenue on the north side of I-494.
new text end

new text begin Subd. 3. new text end

new text begin Mall of America Station
new text end

new text begin 8,750,000
new text end

new text begin For design and construction of improvements
to the Mall of America Station on the
Hiawatha Corridor light rail transit line,
subject to Minnesota Statutes, section
16A.695. The Metropolitan Council must
consult with the city of Bloomington
throughout the design and construction
process.
new text end

new text begin Subd. 4. new text end

new text begin Metropolitan Cities Inflow and
Infiltration Grants
new text end

new text begin 2,500,000
new text end

new text begin For grants to cities 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 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 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

Sec. 17. 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 70,071,000
new text end

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

new text begin Subd. 2. new text end

new text begin Minnesota Security Hospital - St.
Peter
new text end

new text begin 57,611,000
new text end

new text begin To complete design, remodel, construct,
furnish, and equip the second phase of the
two-phase project to remodel existing and to
develop new residential, program, activity,
and ancillary facilities for the Minnesota
Security Hospital on the upper campus of the
St. Peter Regional Treatment Center. This
does not include construction of a new 48-bed
transitional housing unit. This appropriation
includes money to: demolish, renovate, and
remodel existing space; construct new space;
address fire and life safety, and other building
code deficiencies; replace or renovate
interior finishes; purchase furnishings,
fixtures, and equipment; replace or renovate
the Minnesota Security Hospital building's
HVAC, plumbing, electrical, security, and life
safety systems; tuck-point; replace windows
and doors; design and abate asbestos and
hazardous materials; and complete site work
necessary to support the programmed use
of the facilities on the St. Peter Regional
Treatment Center upper campus.
new text end

new text begin Subd. 3. new text end

new text begin Child and Adolescent Behavioral
Health Services
new text end

new text begin 7,530,000
new text end

new text begin To purchase land in or near the city of
Willmar for, and to predesign, design,
construct, furnish, and equip, a 16-bed
psychiatric hospital facility of approximately
17,500 to 18,000 square feet that will house
the Child and Adolescent Behavioral Health
Services (CABHS) program. The facility
shall include space for single bedrooms,
bathing and toilets, dining, living, group and
treatment rooms, education space, visitation,
clinic/professional staff, operations staff,
patient storage, operations storage, food
preparation, HVAC/telecommunications/data
equipment, a small area for indoor recreation,
and a secure outdoor activity space. The
property for the facility will provide for staff
and visitor parking, outdoor activities, and
appropriate side, front, and rear setbacks.
new text end

new text begin Subd. 4. new text end

new text begin Anoka Metro Regional Treatment
Center Safety and Security Renovations
new text end

new text begin 2,250,000
new text end

new text begin To provide security upgrades of a capital
nature at the Anoka Metro Regional
Treatment Center campus, including but
not limited to control centers, electronic
monitoring and perimeter security
equipment, new or updated security fencing,
and other building security renovations. This
appropriation includes money for: predesign,
design, furnishing, fixtures, and equipment;
construction of safety and security
improvements to courtyards on residential
treatment units; securely enclosing the
nursing station on Unit G; and installing a
campus-wide closed-circuit television video
security system, a facility-wide personal
duress alarm system, a key control system,
and an electronic access control system.
new text end

new text begin Subd. 5. new text end

new text begin Regional Medical Examiner's Facility
new text end

new text begin 2,680,000
new text end

new text begin For a grant to Hennepin County to design an
approximately 67,000 square foot regional,
state-of-the-art medical examiner's facility.
The facility shall: (1) provide forensic
death investigation and autopsy services
for Dakota, Hennepin, and Scott Counties
with the flexibility to accommodate future
partner counties and agencies; (2) serve as a
teaching facility for the state, on the science
of forensic pathology; and (3) be located in
the city of Bloomington as a site that best
supports access needs for the three founding
counties and reasonable scene response times
for the geographic service area.
new text end

Sec. 18. new text begin VETERANS AFFAIRS
new text end

new text begin $
new text end
new text begin 4,000,000
new text end

new text begin To the commissioner of administration
for asset preservation improvements and
betterments of a capital nature at the veterans
homes in Minneapolis, Hastings, Fergus
Falls, Silver Bay, and Luverne, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

Sec. 19. 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 28,900,000
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 8,000,000
new text end

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

new text begin Subd. 3. new text end

new text begin Minnesota Correctional Facility - St.
Cloud
new text end

new text begin 19,000,000
new text end

new text begin To construct and equip a new intake unit and
a loading dock with a secure connection to
a new central warehouse at the Minnesota
Correctional Facility – St. Cloud.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Correctional Facility -
Moose Lake
new text end

new text begin 1,900,000
new text end

new text begin To expand and renovate the outdated master
control center to improve security and
efficiency at the Minnesota Correctional
Facility - Moose Lake. The renovation
includes updating fire alarm panels and
mechanical and electrical systems and
improving visibility of the visiting area.
new text end

new text begin Subd. 5. 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. 20. 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 58,541,000
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 Transportation Economic
Development
new text end

new text begin 6,000,000
new text end

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

new text begin Subd. 3. new text end

new text begin Greater Minnesota Business
Development Public Infrastructure Grants
new text end

new text begin 10,000,000
new text end

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

new text begin Subd. 4. new text end

new text begin Innovative Business Development
Public Infrastructure Grants
new text end

new text begin
2,000,000
new text end

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

new text begin Subd. 5. new text end

new text begin Duluth - Steam Plant
new text end

new text begin 21,000,000
new text end

new text begin For a grant to the city of Duluth to
complete the design of and to renovate,
construct, furnish, and equip an upgrade
to the municipal district heating facility
and systems, including conversion of the
distribution system along Superior Street
from steam, with no condensate return, to
closed-loop hot water, subject to Minnesota
Statutes, section 16A.695. This appropriation
is not available until the commissioner of
management and budget determines that an
amount sufficient to complete the project is
committed from nonstate sources.
new text end

new text begin Subd. 6. new text end

new text begin Litchfield - Phase 2 Power Generation
Improvements
new text end

new text begin 3,000,000
new text end

new text begin For a grant to the city of Litchfield to
design and construct electrical generation
improvements in the city of Litchfield
to expand the current standby capacity,
including replacement of two old generators.
This appropriation is not available until the
commissioner of management and budget
determines that at least an equal amount
is committed to the project from nonstate
sources.
new text end

new text begin Subd. 7. new text end

new text begin Madelia
new text end

new text begin 98,000
new text end

new text begin For a grant to the city of Madelia for repair
and replacement of a capital nature of public
infrastructure damaged by a fire in Madelia
in February 2016. This appropriation does
not require a nonstate contribution.
new text end

new text begin Subd. 8. new text end

new text begin St. James - Public Infrastructure
new text end

new text begin 3,443,000
new text end

new text begin For a grant to the city of St. James. Of
this amount, $2,193,000 is for engineering,
right-of-way acquisition, and reconstruction
of streets, sidewalks, storm water and
sanitary sewer, water mains, lighting,
utilities, and other capital improvements of
publicly owned infrastructure required for
the reconstruction of marked Trunk Highway
4 in the city of St. James, and $1,250,000
is to replace the storm sewer drain which
serves St. James Lake and the entire southern
section of the City of St. James.
new text end

new text begin Subd. 9. new text end

new text begin St. Paul - Science Museum of
Minnesota Building Preservation
new text end

new text begin 13,000,000
new text end

new text begin For a grant to the city of St. Paul for
predesign, design, and construction work
to replace water-damaged elements of the
Science Museum of Minnesota's exterior
envelope and some resultant interior damage
caused by latent design and construction
defects, subject to Minnesota Statutes, section
16A.695. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount has
been committed to the project from nonstate
sources. Capital costs paid by the Science
Museum of Minnesota since January 1, 2014,
relating to the water intrusion damage, shall
count towards the match requirement.
new text end

Sec. 21. 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 150,300,000
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
new text end

new text begin 17,000,000
new text end

new text begin To match federal 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 70,000,000
new text end

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

new text begin (b) $51,500,000 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) $18,500,000 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, 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 46,500,000
new text end

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

new text begin Subd. 5. new text end

new text begin Lewis and Clark Regional Water
System
new text end

new text begin 11,500,000
new text end

new text begin This appropriation is from the general fund in
fiscal year 2017 for a grant to the Lewis and
Clark Joint Powers Board to acquire land,
design, engineer, and construct facilities
and infrastructure necessary to complete
Phase 3 of the Lewis and Clark Regional
Water System project, including extension
of the project from the Lincoln-Pipestone
Rural Water System connection near
Adrian to Worthington, construction of a
reservoir in Nobles County and a meter
building in Worthington, and acquiring and
installing a supervisory control and data
acquisition (SCADA) system. This is a
onetime appropriation and is not available
until the commissioner of management and
budget determines that at least $9,000,000
is committed to the Phase 3 of the project
from nonstate sources. This appropriation
is available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.
new text end

new text begin Subd. 6. new text end

new text begin East Grand Forks
new text end

new text begin 5,300,000
new text end

new text begin For a grant to the city of East Grand
Forks to design and construct wastewater
infrastructure improvements interconnecting
the wastewater system of East Grand Forks
to the wastewater treatment system in Grand
Forks, North Dakota. This appropriation
may not be used for improvements outside
the state. This appropriation is in addition
to grants under Minnesota Statutes, section
446A.072. A nonstate match is not required.
new text end

Sec. 22. new text begin MINNESOTA HISTORICAL
SOCIETY
new text end

new text begin $
new text end
new text begin 2,500,000
new text end

new text begin To the Minnesota Historical Society for
capital improvements and betterments at
state historic sites, buildings, landscaping
at historic buildings, exhibits, markers, and
monuments, to be spent in accordance with
Minnesota Statutes, section 16B.307. The
society shall determine project priorities as
appropriate based on need.
new text end

Sec. 23. new text begin BOND SALE EXPENSES
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 935,000
new text end

new text begin To the commissioner of management and
budget for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end

new text begin Bond Proceeds Fund
new text end

new text begin 865,000
new text end

new text begin From the bond proceeds fund for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.
new text end

new text begin Subd. 3. new text end

new text begin Trunk Highway Fund
new text end

new text begin 70,000
new text end

new text begin 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. 24. new text begin BOND SALE AUTHORIZATIONS.
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 $623,514,000 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
$227,200,000 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. 3. new text end

new text begin Maximum effort school loan fund. new text end

new text begin To provide the money appropriated
in this act from the maximum effort school loan fund, the commissioner of management
and budget shall sell and issue bonds of the state in an amount up to $14,070,000 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. 4. new text end

new text begin Trunk highway bonds. new text end

new text begin To provide the money appropriated in subdivision
1 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
$70,070,000 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. 25. new text begin CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
new text end

new text begin (a) The bond sale authorization in Laws 1990, chapter 610, article 1, section 30,
subdivision 1, as amended, is reduced by $3,129.
new text end

new text begin (b) The bond sale authorization in Laws 1994, chapter 643, section 31, subdivision
1, as amended, is reduced by $24,480.
new text end

new text begin (c) The bond sale authorization in Laws 1997, Second Special Session chapter 2,
section 12, as amended, is reduced by $96,992.
new text end

new text begin (d) The bond sale authorization in Laws 1999, chapter 240, article 1, section 13,
subdivision 1, as amended, is reduced by $212,472.
new text end

new text begin (e) The bond sale authorization in Laws 2000, chapter 492, article 1, section 26,
subdivision 1, as amended, is reduced by $7,933,538.
new text end

new text begin (f) The bond sale authorization in Laws 2002, chapter 393, section 30, subdivision
1, as amended, is reduced by $188,471.
new text end

new text begin (g) The bond sale authorization in Laws 2002, First Special Session chapter 1,
section 9, subdivision 1, s reduced by $217,959.
new text end

new text begin (h) The bond sale authorization in Laws 2003, First Special Session chapter 19,
article 3, section 2, is reduced by $201,530.
new text end

new text begin (i) The bond sale authorization in Laws 2003, First Special Session chapter 19,
article 4, section 4, is reduced by $326,534.
new text end

new text begin (j) The bond sale authorization in Laws 2005, chapter 20, article 1, section 28,
subdivision 1, as amended, is reduced by $3,366,628.
new text end

new text begin (k) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012,
First Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner
of public safety for disaster relief, is canceled and the bond sale authorization in Laws
2012, First Special Session chapter 1, article 1, section 16, subdivision 1, is reduced
by the same amount.
new text end

new text begin (l) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First
Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster
relief, is canceled and the bond sale authorization in Laws 2012, First Special Session
chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
new text end

new text begin (m) $2,335,000 of the appropriation from the bond proceeds fund in Laws 2012,
First Special Session chapter 1, article 1, section 9, subdivision 2, to the commissioner of
natural resources for disaster relief, is canceled, and the bond sale authorization in Laws
2012, First Special Session chapter 1, article 1, section 16, subdivision 1, is reduced
by the same amount.
new text end

Sec. 26.

Laws 2015, First Special Session chapter 5, article 1, section 19, is amended
to read:


Sec. 19. BOND SALE SCHEDULE.

The commissioner of management and budget shall schedule the sale of state
general obligation bonds so that, during the biennium ending June 30, 2017, no more
than deleted text begin $1,267,459,000deleted text end new text begin $1,239,580,000 new text end 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.

Sec. 27. new text begin APPROPRIATIONS GIVEN EFFECT ONLY ONCE.
new text end

new text begin Except for appropriations for ......., if an appropriation in this act is enacted more
than once in the 2016 legislative session for the same purpose, the appropriation must
be given effect only once. If the appropriations for the same purpose are for different
amounts, the lowest of the amounts is to be given effect.
new text end

Sec. 28. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this article is effective the day following final
enactment.
new text end

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2015 Supplement, section 16A.967, 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 lawdeleted text begin , including, in particular, the
financing of the land acquisition, design, engineering, and construction of facilities and
infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water
System project, including completion of the pipeline to Magnolia, extension of the project
to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering,
design, and easement acquisition for the final phase of the project to Worthington. No
bonds shall be sold until the commissioner determines that a nonstate match of at least
$9,000,000 is committed to this project phase
deleted text end . Grant agreements entered into under this
section must provide for reimbursement to the state from any federal money provided for
the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.

(b) The appropriation bonds may be issued and sold only after the commissioner
determines that the construction and administration for work done on the project will
comply with (1) all federal requirements and regulations associated with the Lewis and
Clark Rural Water System Act of 2000, and (2) the cooperative agreement between the
United States Department of the Interior and the Lewis and Clark Regional Water System,
Inc. Proceeds of the appropriation bonds must be credited to a special appropriation Lewis
and Clark 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 sold and issued in amounts that, in the opinion of the
commissioner, are necessary to provide sufficient moneynew text begin to the Public Facilities Authority
under subdivision 7
new text end , not to exceed $19,000,000 net of costs of issuance, for the purposes as
provided under new text begin this new text end paragraph deleted text begin (a)deleted text end , and pay debt service including capitalized interest, costs
of issuance, costs of credit enhancement, or make payments under other agreements entered
into under paragraph (e).new text begin The bonds authorized by this paragraph are for the purposes
of financing the land acquisition, design, engineering, and construction of facilities and
infrastructure necessary to complete Phase 2 of the Lewis and Clark Regional Water
System project, including completion of the pipeline to Magnolia; extension of the project
to the Lincoln-Pipestone Rural Water System connection near Adrian; and engineering,
design, and easement acquisition for the final phase of the project to Worthington. No
bonds shall be sold under this subdivision until the commissioner determines that a
nonstate match of at least $9,000,000 is committed to this project phase. Upon completion
of Phase 2, the unspent, unencumbered portion of the appropriation in this subdivision
is available for the purposes of Phase 3, which includes extension of the project from
the Lincoln-Pipestone Rural Water System connection near Adrian to Worthington,
construction of a reservoir in Nobles County and a meter building in Worthington, and
acquiring and installing a supervisory control and data acquisition (SCADA) system.
new text end

(d) 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 25 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.

(e) 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.

(f) 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.

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

Sec. 2.

Minnesota Statutes 2015 Supplement, section 16A.967, subdivision 7, is
amended to read:


Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bondsnew text begin issued
under this section
new text end and interest credited to the special appropriation Lewis and Clark bond
proceeds fund are appropriated deleted text begin to the commissionerdeleted text end new text begin :
new text end

new text begin (1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers
Board
new text end for payment of capital expenses deleted text begin for the purposes provided bydeleted text end new text begin as specified innew text end
subdivision 2deleted text begin , paragraph (a),deleted text end new text begin ; and
new text end

new text begin (2) to the commissioner fornew text end debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and
payments under any agreements entered into under subdivision 2, paragraph (e), each as
permitted by state and federal lawdeleted text begin , and such proceeds may be granted, loaned, or otherwise
provided for the public purposes provided by subdivision 2, paragraph (a)
deleted text end .

Sec. 3.

Minnesota Statutes 2015 Supplement, section 85.015, subdivision 6, is
amended to read:


Subd. 6.

Minnesota Valley Trail, Hennepin, Dakota, Scott, Carver, Sibley and
Le Sueur Counties.

(a) The trail shall originate at Fort Snelling State Park and thence
extend generally southwesterly along the Minnesota River Valley through Hennepin,
Dakota, Scott, Carver, Sibley, and Le Sueur Counties to the city of Le Sueur, and there
terminate. The trail shall include the following state waysides: (a) Rice Lake Wayside,
in Scott County; (b) Carver Rapids Wayside, in Scott County; (c) Lawrence wayside, in
Scott county; (d) Belle Plaine Wayside, in Carver, Scott, and Sibley Counties; (e) Blakeley
Wayside, in Scott County; and (f) Rush River Wayside, in Sibley County.

(b) The trail shall be developed primarily for riding and hiking. Motorized vehicles
are prohibited from that portion of the trail on the north side of the Minnesota River,
lying between Fort Snelling State Park and Rice Lake Wayside.deleted text begin That portion of the
trail on the north side of the Minnesota River, lying between the Bloomington Ferry
Bridge pedestrian crossing and the Cedar Avenue Bridge, must be a paved trail developed
primarily for hiking and bicycling.
deleted text end

(c) In establishing, developing, maintaining, and operating the trail the commissioner
shall cooperate with local units of government and private individuals and groups
whenever feasible.

Sec. 4.

Minnesota Statutes 2014, section 85.34, subdivision 1, is amended to read:


Subdivision 1.

Upper bluff; lease terms.

The commissioner of natural resources
with the approval of the Executive Council may lease for purposes of restoration,
preservation, historical, recreational, educational, and commercial use and development,
that portion of Fort Snelling State Park known as the upper bluff consisting of officer's
row, area J, the polo grounds, the adjacent golf course, and all buildings and improvements
located thereon, all lying within an area bounded by Minneapolis-St. Paul International
Airport, Trunk Highways numbered 5 and 55, and Bloomington Road. The lease or leases
shall be in a form approved by the attorney general and for a term of not to exceed 99
years. The lease or leases may provide for the provision of capital improvements or other
performance by the tenant or tenants in lieu of all or some of the payments of rent that
would otherwise be required.new text begin Notwithstanding the continuing ownership of the upper bluff
by the state, any lease of one or more buildings improved with state general obligation
bond proceeds that exceeds 50 years shall be treated as a sale of the buildings for purposes
of section 16A.695, subdivision 3. Any disposition proceeds payable to the commissioner
upon execution of any lease relating to state bond financed buildings at the upper bluff
shall be applied in accordance with the requirements of section 16A.695, subdivision 3,
and used to pay, redeem, or defease state general obligation bonds issued for purposes of
improving those buildings. Any lease revenues paid to the commissioner subsequent to
the payment, redemption, or defeasance of state general obligation bonds shall be used
by the commissioner as further described in this section.
new text end

Sec. 5.

Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:


Subdivision 1.

Grant program established; purpose.

(a) The commissioner shall
make grants to counties or cities to provide up to 50 percent of the capital costs of public
infrastructure necessary for an eligible economic development project. The county or city
receiving a grant must provide for the remainder of the costs of the project, either in cash
or in kind. In-kind contributions may include the value of site preparation other than the
public infrastructure needed for the project.

(b) The purpose of the grants made under this section is to keep or enhance jobs in
the area, increase the tax base, or to expand or create new economic development.

new text begin (c) In awarding grants under this section, the commissioner must adhere to the
criteria under subdivision 4.
new text end

new text begin (d) If the commissioner awards a grant for less than 50 percent of the project, the
commissioner shall provide the applicant and the chairs and ranking minority members
of the senate and house of representatives committees with jurisdiction over economic
development finance a written explanation of the reason less than 50 percent of the capital
costs were awarded in the grant.
new text end

Sec. 6.

Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:


Subd. 2.

Eligible projects.

An economic development project for which a county or
city may be eligible to receive a grant under this section includes:

(1) manufacturing;

(2) technology;

(3) warehousing and distribution;

(4) research and development;

(5) agricultural processing, defined as transforming, packaging, sorting, or grading
livestock or livestock products into goods that are used for intermediate or final
consumption, including goods for nonfood use; or

(6) industrial park development that would be used by any other business listed in
this subdivisionnew text begin even if no business has committed to locate in the industrial park at the
time the grant application is made
new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:


Subd. 4.

Application.

(a) The commissioner must develop forms and procedures
for soliciting and reviewing applications for grants under this section. At a minimum, a
county or city must include in its application a resolution of the county or city council
certifying that the required local match is available. The commissioner must evaluate
complete applications for eligible projects using the following criteria:

(1) the project is an eligible project as defined under subdivision 2;

(2) the project deleted text begin willdeleted text end new text begin is expected tonew text end result innew text begin or will attractnew text end substantial public and
private capital investment and provide substantial economic benefit to the county or city in
which the project would be located;

(3) the project is not relocating substantially the same operation from another
location in the state, unless the commissioner determines the project cannot be reasonably
accommodated within the county or city in which the business is currently located, or the
business would otherwise relocate to another state; and

(4) the project new text begin is expected to or new text end will create or deleted text begin maintaindeleted text end new text begin retainnew text end full-time jobs.

(b) The determination of whether to make a grant for a site is within the discretion of
the commissioner, subject to this section. The commissioner's decisions and application of
the deleted text begin prioritiesdeleted text end new text begin criterianew text end are not subject to judicial review, except for abuse of discretion.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:


Subd. 6.

Maximum grant amount.

A county or city may receive no more than
deleted text begin $1,000,000deleted text end new text begin $2,000,000new text end in two years for one or more projects.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2014, section 174.50, subdivision 7, is amended to read:


Subd. 7.

Bridge grant program; rulemaking.

(a) The commissioner of
transportation shall develop rules, procedures for application for grants, conditions of
grant administration, standards, and criteria as provided under subdivision 6, including
bridge specifications, in cooperation with road authorities of political subdivisions, for use
in the administration of funds appropriated to the commissioner and for the administration
of grants to subdivisions.

(b) The maximum use of standardized bridges is encouraged. Regardless of the size
of the existing bridge, a bridge or replacement bridge is eligible for assistance from the
state transportation fund if a hydrological survey indicates that the bridge or replacement
bridge must be ten feet or more in length.

(c) As part of the standards or rules, the commissioner shall, in consultation with
local road authorities, establish a minimum distance between any two bridges that cross
over the same river, stream, or waterway, so that only one of the bridges is eligible for a
grant under this section. As appropriate, the commissioner may establish exceptions from
the minimum distance requirement or procedures for obtaining a variance.

(d) Political subdivisions may use grants made under this section to construct or
reconstruct bridges, including but not limited to:

(1) matching federal aid grants to construct or reconstruct key bridges;

(2) paying the costs to abandon an existing bridge that is deficient and in need of
replacement but where no replacement will be made; and

(3) paying the costs to construct a road or street to facilitate the abandonment of
an existing bridge if the commissioner determines that the bridge is deficient, and that
construction of the road or street is more economical than replacement of the existing
bridge.

(e) Funds appropriated to the commissioner from the Minnesota state transportation
fund shall be segregated from the highway tax user distribution fund and other funds
created by article XIV of the Minnesota Constitution.

new text begin (f) The maximum grant amount for a local bridge replacement or rehabilitation
project under this section is $5,000,000.
new text end

Sec. 10.

Minnesota Statutes 2014, section 446A.072, is amended to read:


446A.072 deleted text begin WASTEWATERdeleted text end new text begin WATERnew text end INFRASTRUCTURE FUNDING
PROGRAM.

Subdivision 1.

Establishment of program.

The authority will establish a
deleted text begin wastewaterdeleted text end new text begin waternew text end infrastructure funding program to provide supplemental assistance to
governmental units receiving funding through the clean water revolving fund programnew text begin , the
drinking water revolving fund program,
new text end or the United States Department of Agriculture
Rural Economic and Community Development's (USDA/RECD) Water and Waste
Disposal Loans and Grants program for the predesign, design, and construction of
municipal wastewater deleted text begin treatmentdeleted text end new text begin and drinking waternew text end systems, including purchase of land
and easements. The purpose of the program is to assist governmental units demonstrating
financial need to build cost-effective projects to address existing environmental or public
health problems. To implement the program, the authority shall establish a deleted text begin wastewater
deleted text end new text begin waternew text end infrastructure fund to provide grants deleted text begin and loansdeleted text end for the purposes authorized under
title VI of the Federal Water Pollution Control Actnew text begin and the federal Safe Drinking Water
Act
new text end . The fund shall be credited with all investment income from the fund and all
repayments of loans, grants, and penalties.

Subd. 3.

Program administration.

(a) The authority shall provide supplemental
assistance, as provided in subdivision 5a to governmental units:

(1) whose projects are listed on the Pollution Control Agency's project priority listnew text begin or
the commissioner of health's project priority list
new text end ;

(2) that demonstrate their projects are a cost-effective solution to an existing
environmental or public health problem; and

(3) whose projects are approved by the USDA/RECD or certified by the
commissioner of the Pollution Control Agencynew text begin or the commissioner of healthnew text end .

(b) For a governmental unit receiving grant funding from the USDA/RECD,
applications must be made to the USDA/RECD with additional information submitted to
the authority as required by the authority. Eligible project costs and affordability criteria
shall be determined by the USDA/RECD.

(c) For a governmental unit not receiving grant funding from the USDA/RECD,
application must be made to the authority on forms prescribed by the authority for the
clean water revolving fund programnew text begin or the drinking water revolving fund programnew text end with
additional information as required by the authority. In accordance with section 116.182,
the Pollution Control Agencynew text begin or the commissioner of healthnew text end shall:

(1) calculate the essential project component percentagenew text begin based on the portion of
project costs necessary to convey or treat the existing wastewater flows and loadings or,
for drinking water projects, to provide safe drinking water to meet existing needs,
new text end which
must be multiplied by the total project cost to determine the eligible project costnew text begin for the
program under this section
new text end ; and

(2) review and certify approved projects to the authority.

(d) Each fiscal year the authority shall make funds available for projects based on
their ranking on the Pollution Control Agency's project priority listnew text begin or the commissioner
of health's project priority list
new text end . The authority shall reserve funds for a project when
the applicant receives a funding commitment from the United States Department of
Agriculture Rural Development (USDA/RECD) or deleted text begin submits plans and specifications todeleted text end new text begin
the project is certified by
new text end the Pollution Control Agencynew text begin or the commissioner of healthnew text end .
Funds must be reserved in an amount based on the project cost estimate submitted to the
authority deleted text begin prior to the appropriation of the funds and awarded based on the lesser of that
amount or the as-bid cost
deleted text end new text begin when the project is certified or the as-bid cost, whichever is lessnew text end .

Subd. 5a.

Type and amount of assistance.

(a) For a governmental unit receiving
grant funding from the USDA/RECD, the authority may provide assistance in the form
of a grant of up to 65 percent of the eligible grant need determined by USDA/RECD. A
governmental unit may not receive a grant under this paragraph for more than deleted text begin $4,000,000
deleted text end new text begin $5,000,000new text end per project or deleted text begin $15,000deleted text end new text begin $20,000new text end per existing connection, whichever is less,
unless specifically approved by law.

(b) For a governmental unit receiving a loan from the clean water revolving fund
under section 446A.07, the authority may provide assistance under this section in the form
of a grant if the average annual residential wastewater system cost after completion of the
project would otherwise exceed 1.4 percent of the median household income of the project
service area. In determining whether the average annual residential wastewater system
cost would exceed 1.4 percent, the authority must consider the total costs associated with
building, operating, and maintaining the wastewater system, including existing wastewater
debt service, debt service on the eligible project cost, and operation and maintenance
costs. Debt service costs for the proposed project are calculated based on the maximum
loan term permitted for the clean water revolving fund loan under section 446A.07,
subdivision 7
. The amount of the grant is equal to 80 percent of the amount needed to
reduce the average annual residential wastewater system cost to 1.4 percent of median
household income in the project service area, to a maximum of deleted text begin $4,000,000deleted text end new text begin $5,000,000new text end per
project or deleted text begin $15,000deleted text end new text begin $20,000new text end per existing connection, whichever is less, unless specifically
approved by law. The eligible project cost is determined by multiplying the total project
costs minus any other grants by the essential project component percentage calculated
under subdivision 3, paragraph (c), clause (1). In no case may the amount of the grant
exceed 80 percent of the eligible project cost.

new text begin (c) For a governmental unit receiving a loan from the drinking water revolving
fund under section 446A.081, the authority may provide assistance under this section in
the form of a grant if the average annual residential drinking water system cost after
completion of the project would otherwise exceed 1.2 percent of the median household
income of the project service area. In determining whether the average annual residential
drinking water system cost would exceed 1.2 percent, the authority must consider the total
costs associated with building, operating, and maintaining the drinking water system,
including existing drinking water debt service, debt service on the eligible project cost,
and operation and maintenance costs. Debt service costs for the proposed project are
calculated based on the maximum loan term permitted for the drinking water revolving
fund loan under section 446A.081, subdivision 8, paragraph (c). The amount of the grant
is equal to 80 percent of the amount needed to reduce the average annual residential
drinking water system cost to 1.2 percent of median household income in the project
service area, to a maximum of $5,000,000 per project or $20,000 per existing connection,
whichever is less, unless specifically approved by law. The eligible project cost is
determined by multiplying the total project costs minus any other grants by the essential
project component percentage calculated under subdivision 3, paragraph (c), clause (1). In
no case may the amount of the grant exceed 80 percent of the eligible project cost.
new text end

deleted text begin (c)deleted text end new text begin (d)new text end Notwithstanding the limits in paragraphs (a) deleted text begin anddeleted text end new text begin ,new text end (b),new text begin and (c),new text end for a
governmental unit receiving supplemental assistance under this section after January 1,
2002, if the authority determines that the governmental unit's construction and installation
costs are significantly increased due to geological conditions of crystalline bedrock or karst
areas and discharge limits that are more stringent than secondary treatment, the maximum
award under this section shall not be more than $25,000 per existing connection.

deleted text begin Subd. 5b. deleted text end

deleted text begin Special assessment deferral. deleted text end

deleted text begin A governmental unit receiving a loan
under subdivision 5a that levies special assessments to repay the loan under subdivision
5a or section 446A.07 may defer payment of such assessments under the provisions of
sections 435.193 to 435.195.
deleted text end

Subd. 6.

Disbursements.

Disbursements of grants deleted text begin or loansdeleted text end awarded under this
section by the authority to recipients must be made for eligible project costs as incurred by
the recipients, and must be made by the authority in accordance with the project financing
agreement and applicable state and federal laws and rules governing the payments.

deleted text begin Subd. 7. deleted text end

deleted text begin Loan repayments. deleted text end

deleted text begin Notwithstanding the limitations set forth in section
475.54, subdivision 1, this subdivision shall govern the maturities and mandatory sinking
fund redemptions of the loans under this section. A governmental unit receiving a loan
under this section shall repay the loan in semiannual payment amounts determined by
the authority. The payment amount must be based on the average payments on the
governmental unit's clean water revolving fund loan or, if greater, the minimum amount
required to fully repay the loan by the maturity date. Payments must begin within one year
of the date of the governmental unit's final payment on the clean water revolving fund
loan. The final maturity date of the loan under this section must be no later than 20 years
from the date of the first payment on the loan under this section and no later than 40 years
from the date of the first payment on the clean water revolving fund loan.
deleted text end

Subd. 8.

Eligibility.

A governmental unit is eligible for assistance under this section
only after applying for grant funding from other sources and funding has been obtained,
rejected, or the authority has determined that the potential funding is unlikely.

Subd. 9.

Funding limitation.

Supplemental assistance may not be used to reduce
the deleted text begin sewerdeleted text end service charges of a significant deleted text begin wastewater contributordeleted text end new text begin industrial user that has a
separate service charge agreement with the recipient
new text end , or a single user that has caused the
need for the project or whose current or projected deleted text begin flow and load exceeddeleted text end new text begin usage exceeds
new text end one-half of the current wastewater deleted text begin treatment plant'sdeleted text end new text begin or drinking water systemnew text end capacity.

Subd. 11.

Report on needs.

By February 1 of each even-numbered year, the
authority, in conjunction with the Pollution Control Agencynew text begin and the commissioner of
health
new text end , shall prepare a report to the Finance Division of the senate Environment and
Natural Resources Committee and the house of representatives Environment and Natural
Resources Finance Committee on wastewaternew text begin and drinking waternew text end funding assistance needs
of governmental units under this section.

Subd. 12.

System replacement fund.

Each governmental unit receiving a deleted text begin loan or
deleted text end grant under this section shall establish a system replacement fund and shall annually
deposit a minimum of $.50 per 1,000 gallons of flow for major rehabilitation deleted text begin ordeleted text end new text begin ,new text end expansionnew text begin ,
or replacement
new text end of the deleted text begin treatmentdeleted text end new text begin wastewater or drinking waternew text end systemdeleted text begin , or replacement of
the treatment system at the end of its useful life
deleted text end . Money must remain in the account for the
life of the new text begin corresponding project new text end loan from the authority or USDA/RECD, unless use of
the fund is approved in writing by the authority for major rehabilitation, expansion, or
replacement of the deleted text begin treatmentdeleted text end new text begin wastewater or drinking waternew text end system. By March 1 each year
during the life of the loan, each recipient shall submit a report to the authority regarding
the amount deposited and the fund balance for the prior calendar year. new text begin A recipient is not
required to maintain a fund balance greater than the amount of the grant received.
new text end Failure
to comply with the requirements of this subdivision shall result in the authority assessing a
penalty fee to the recipient equal to one percent of the supplemental assistance amount for
each year of noncompliance. deleted text begin Failure to make the required deposit or pay the penalty fee as
required constitutes a default on the loan.
deleted text end

Subd. 14.

Consistency with land use plans.

A governmental unit applying for a
project in an unsewered area shall include in its application to the authority a certification
from the county in which the project is located that:

(1) the project is consistent with the county comprehensive land use plan, if the
county has adopted one;

(2) the project is consistent with the county water plan, if the county has adopted
one; and

(3) the county has adopted specific land use ordinances or controls so as to meet or
exceed the requirements of Minnesota Rules, part 7080.0305.

Sec. 11.

Minnesota Statutes 2014, section 446A.073, as amended by Laws 2015, First
Special Session chapter 4, article 4, sections 127, 128, and 129, is amended to read:


446A.073 POINT SOURCE IMPLEMENTATION GRANTS.

Subdivision 1.

Program established.

When money is appropriated for grants
under this program, the authority shall award grants up to a maximum of deleted text begin $3,000,000
deleted text end new text begin $7,000,000new text end to governmental units to cover deleted text begin up to one-halfdeleted text end new text begin 80 percent ofnew text end the cost of water
infrastructure projects made necessary by:

(1) a wasteload reduction prescribed under a total maximum daily load plan required
by section 303(d) of the federal Clean Water Act, United States Code, title 33, section
1313(d);

(2) a phosphorus concentration or mass limit which requires discharging one
milligram per liter or less at permitted design flow which is incorporated into a permit
issued by the Pollution Control Agency;

(3) any other water quality-based effluent limit established under section 115.03,
subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the
Pollution Control Agency that exceeds secondary treatment limits; or

(4) a total nitrogen new text begin concentration or mass new text end limit deleted text begin ofdeleted text end new text begin that requires dischargingnew text end ten
milligrams per liter or less deleted text begin for a land-based treatment systemdeleted text end new text begin at permitted design flownew text end .

Subd. 2.

Grant application.

Application for a grant must be made to the authority
on forms prescribed by the authority deleted text begin for the total maximum daily load grant program, with
additional information as required by the authority
deleted text end , including a project schedule and cost
estimate for the work necessary to comply with the deleted text begin point source wasteload allocation
deleted text end new text begin requirements listed in subdivision 1new text end . The Pollution Control Agency shalldeleted text begin :
deleted text end

deleted text begin (1) in accordance with section 116.182, calculate the essential project component
percentage, which must be multiplied by the total project cost to determine the eligible
project cost; and
deleted text end

deleted text begin (2)deleted text end review and certify to the authority those projects that have plans and
specifications approved under section 115.03, subdivision 1, paragraph (f).

Subd. 3.

Project priorities.

deleted text begin When money is appropriated for grants under this
program,
deleted text end The authority shall accept applicationsnew text begin under this programnew text end during the month of
July and reserve money for projects expected to proceed with construction by the end of
the fiscal year in the order listed on the Pollution Control Agency's project priority list and
in an amount based on the cost estimate submitted to the authority in the grant application
or the as-bid costs, whichever is less. Notwithstanding Minnesota Rules, chapter 7077,
the Pollution Control Agency may rank a drinking water infrastructure project on the
agency's project priority list if the project is necessary to meet an applicable requirement
in subdivision 1.

Subd. 4.

Grant approval.

The authority must make a grant for an eligible project
only after:

(1) the applicant has submitted the as-bid cost for the water infrastructure project;

(2) the Pollution Control Agency has approved the as-bid costs and certified the
grant eligible portion of the project; and

(3) the authority has determined that the additional financing necessary to complete
the project has been committed from other sources.

Subd. 5.

Grant disbursement.

Disbursement of a grant must be made for eligible
project costs as incurred by the governmental unit and in accordance with a project
financing agreement and applicable state and federal laws and rules governing the
payments.

Sec. 12.

Minnesota Statutes 2014, 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) notwithstanding Minnesota Rules, part 7380.0280, to provide principal
forgiveness or grants to the extent permitted under the federal Safe Drinking Water Act
and other federal lawnew text begin , based on the criteria and requirements established for drinking
water projects under the water infrastructure funding program under section 446A.072
new text end ;

(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; and

(10) to provide principal forgiveness, or grants for 50 percent of the project cost up
to a maximum of $10,000 for projects needed to comply with national primary drinking
water standards for an existing community or noncommunity public water system.

deleted text begin (b) Principal forgiveness or grants under paragraph (a), clause (8), must only be
provided if the average annual residential drinking water system cost after completion of
the project would otherwise exceed 1.2 percent of the median household income in the
project service area. In determining whether the average annual residential drinking
water system cost would exceed 1.2 percent, the authority must consider the total costs
associated with building, operating, and maintaining the drinking water system, including
debt service and operation and maintenance costs. Debt service costs for the proposed
project must be calculated based on the maximum loan term permitted for the drinking
water revolving fund loan under this section. The amount of the principal forgiveness or
grant must be equal to 80 percent of the amount needed to reduce the average annual
residential drinking water system cost to 1.2 percent of median household income in the
project service area, to a maximum of $4,000,000 or $15,000 per connection, whichever is
less, and not to exceed 80 percent of the total project cost.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end 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.

deleted text begin (d) The authority may reduce the percentage of median household income at which a
loan term could extend to 30 years under subdivision 8, paragraph (c), and at which
principal forgiveness or grants could be provided under paragraph (b) if it determines that
the federal money allotted to the state cannot be fully utilized without the reduction. If it
determines that the reduction is necessary to fully utilize the federal money, the authority
must effect the change through its approval of the annual intended use plan.
deleted text end

Sec. 13.

Minnesota Statutes 2014, section 446A.12, subdivision 1, is amended to read:


Subdivision 1.

Bonding authority.

The authority may issue negotiable bonds in a
principal amount that the authority determines necessary to provide sufficient funds for
achieving its purposes, including the making of loans and purchase of securities, the
payment of interest on bonds of the authority, the establishment of reserves to secure its
bonds, the payment of fees to a third party providing credit enhancement, and the payment
of all other expenditures of the authority incident to and necessary or convenient to carry
out its corporate purposes and powers, but not including the making of grants. Bonds of
the authority may be issued as bonds or notes or in any other form authorized by law.
The principal amount of bonds issued and outstanding under this section at any time
may not exceed deleted text begin $1,500,000,000deleted text end new text begin $2,000,000,000new text end , excluding bonds for which refunding
bonds or crossover refunding bonds have been issued, and excluding any bonds issued
for the credit enhanced bond program or refunding or crossover refunding bonds issued
under the program. The principal amount of bonds issued and outstanding under section
446A.087, may not exceed $500,000,000, excluding bonds for which refunding bonds or
crossover refunding bonds have been issued.

Sec. 14.

Laws 2002, chapter 393, section 22, subdivision 6, as amended by Laws 2005,
chapter 20, article 1, section 43, and Laws 2013, chapter 136, section 10, is amended to
read:


Subd. 6.

Fergus Falls Regional Treatment
Center

3,000,000

To design, renovate, construct, furnish,
and equip ancillary support and program
facilities, including improvements to basic
infrastructure, such as sanitary and storm
sewer and water lines, public streets,
curb, gutter, street lights, or sidewalks, to
make improvements for building envelope
and structural integrity for the purposes
of stabilizing the buildings for sale, for
hazardous materials abatement, and for
demolition of all or portions of surplus,
nonfunctional, or deteriorated facilities
and infrastructure or to renovate surplus,
nonfunctional, or deteriorated facilities and
infrastructure to facilitate the redevelopment
of the Fergus Falls Regional Treatment
Center campus. If the property is sold or
transferred to a local unit of government, the
unspent portion of this appropriation may be
granted to the local unit of government that
acquires the campus for the purposes stated
in this subdivision.

Notwithstanding Minnesota Statutes, section
16A.642, the bond sale authorization and
appropriation of bond proceeds in this
subdivision are available until December 31,
deleted text begin 2016deleted text end new text begin 2018new text end .

Sec. 15.

Laws 2010, chapter 189, section 7, subdivision 5, is amended to read:


Subd. 5.

Dam Renovation and Removal

4,750,000

To renovate or remove publicly owned dams.
The commissioner shall determine project
priorities as appropriate under Minnesota
Statutes, sections 103G.511 and 103G.515.

This appropriation includes money for the
following projects:

(a) Byllesby Dam, Dakota and Goodhue
Counties

(b) Champlin Mill Pond Dam, Hennepin
County

(c) Clayton Lake Dam, Pine County

(d) Drayton Dam, Kittson County

(e) Hallock Dam, Kittson County

(f) Lake Bronson Dam, Kittson County

(g) Lanesboro Dam, Fillmore County

(h) Milaca Dam, Mille Lacs County

(i) Montevideo Dam, Chippewa County

(j) Pike River Dam, St. Louis County

Notwithstanding Minnesota Statutes, section
16A.69, subdivision 2, upon the award of
final contracts for the completion of a project
listed in this subdivision, the commissioner
may transfer the unencumbered balance in the
project account to any other dam renovation
or removal project on the commissioner's
priority list.new text begin Notwithstanding the match
requirements in Minnesota Statutes, section
103G.511, a grant to the city of Lanesboro
does not require any nonstate match.
new text end

Sec. 16.

Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:


Subd. 3.

Dam Repair, Reconstruction, and
Removal

3,000,000

To renovate or remove publicly owned dams.
The commissioner shall determine project
priorities as appropriate under Minnesota
Statutes, sections 103G.511 and 103G.515.new text begin
Notwithstanding the match requirements
in Minnesota Statutes, section 103G.511,
a grant to the city of Lanesboro does not
require any nonstate match.
new text end

Sec. 17.

Laws 2012, chapter 293, section 17, subdivision 4, is amended to read:


Subd. 4.

Phillips Community Center

1,750,000

For a grant to the Minneapolis Park and
Recreation Board to predesign, design,
engineer, reconstruct, renovate, furnish,
and equip the Phillips Community Center
indoor competitive swimming pool and to
predesign, design, engineer, and construct
an additional indoor multipurpose family
pool and facilities associated with an aquatic
center in the community center, subject to
Minnesota Statutes, section 16A.695.

This appropriation is not available until
the commissioner determines that at least
$350,000 is committed from nonstate
sources.new text begin Notwithstanding Minnesota
Statutes, section 16A.642, the bond
authorization and appropriation of bond
proceeds for this project are available until
December 31, 2018.
new text end

Sec. 18.

Laws 2014, chapter 294, article 1, section 7, subdivision 15, is amended to read:


Subd. 15.

Grant County Trail Grant

100,000

For a grant to Grant County for predesign,
acquisition, deleted text begin anddeleted text end new text begin ornew text end improvements for a trail
from the city of Elbow Lake to Pomme de
Terre Lake. The commissioner of natural
resources may allocate any amount not
needed to complete this project to state
trail acquisition and improvements under
Minnesota Statutes, section 85.015.

Sec. 19.

Laws 2014, chapter 294, article 1, section 17, subdivision 6, is amended to read:


Subd. 6.

Inver Grove Heights - Heritage
Village Park

2,000,000

new text begin $1,500,000 of this appropriation is new text end for a
grant to the city of Inver Grove Heights new text begin
and $500,000 of this appropriation is for a
grant to Dakota County. This appropriation
is
new text end for public infrastructure improvements
and land acquisition in and adjacent to the
Heritage Village Park, the Mississippi River
Trail, and the Rock Island Swing Bridge.
These improvements will include but are
not limited to motor vehicle access, utility
service, stormwater treatment, and trail and
sidewalk connections. This appropriation
is not available until the commissioner of
management and budget has determined that
at least an equal amount has been committed
to the project from nonstate sources.

Sec. 20.

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


Subd. 12.

West St. Paul - deleted text begin North Urbandeleted text end new text begin River
to River
new text end Regional deleted text begin Trail Bridgedeleted text end new text begin Greenway
new text end

2,000,000

For a grant to the city of West St. Paul to
predesign, design, and construct a deleted text begin pedestrian
bridge for the North Urban Regional Trail
as an overpass
deleted text end new text begin grade separated crossing new text end of
Robert Street in the area near Wentworth
Avenue in West St. Paulnew text begin for the River to River
Regional Greenway
new text end . This appropriation may
also be used to acquire property or purchase
rights-of-way needed for deleted text begin bridgedeleted text end construction.
A nonstate match is not required.

Sec. 21.

Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision
3, is amended to read:


Subd. 3.

Local Road Improvement Fund
Grants

8,910,000

(a) From the bond proceeds account in
the state transportation fund as provided
in Minnesota Statutes, section 174.50, 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.

(b) This appropriation includes $850,000 for
a grant to the city of Sandstone for predesign,
design, engineering, and construction of a
road extending south off of marked Trunk
Highway 23 across from Lundorff Drive
to the airport area, and including a bridge
over Skunk Creek in Sandstone, in order to
facilitate repurposing of an area of the airport
into a business park. This appropriation
is not available until the commissioner of
management and budget determines that
sufficient resources to complete the project
are committed to it from other sources,
including any funds made available from the
commissioner of transportation.

(c) This appropriation includes $3,770,000
for a grant to Kandiyohi County for
construction and reconstruction of local
roads to facilitate the construction of
highway-rail grade separations at deleted text begin U.S.
Highway 12 and Minnesota Highway 40
as part of
deleted text end new text begin one or more of the following
highway-rail intersections associated with
new text end the Willmar Wye projectnew text begin : U.S. Highway 12,
marked Trunk Highway 40, and Kandiyohi
County State-Aid Highway 55
new text end .

Sec. 22. new text begin REPORT ON FUTURE OF GLENSHEEN.
new text end

new text begin The Board of Regents of the University of Minnesota must develop a plan for the
future of Glensheen, the historic Congdon estate in Duluth, in cooperation and consultation
with the city of Duluth, the Minnesota Historical Society, and other interested parties. The
plan must address facility ownership, a multiphased asset renewal plan, programmatic
operations, and cultural interpretation. The plan must be submitted by January 16, 2017,
to the chairs and ranking minority members of the legislative committees with jurisdiction
over higher education policy and finance, and capital investment, and as provided in
Minnesota Statutes, section 3.195.
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 123A.446, new text end new text begin is repealed.
new text end

Sec. 24. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this article is effective the day following final
enactment.
new text end