1.1 	A bill for an act
1.2 	relating to capital investment; authorizing spending to acquire and better public 
1.3 	land and buildings and other improvements of a capital nature with certain 
1.4 	conditions; modifying previous appropriations; establishing new programs and 
1.5 	modifying existing programs; authorizing the sale and issuance of state bonds; 
1.6 	appropriating money;amending Minnesota Statutes 2016, sections 15B.32, 
1.7 	subdivision 4; 16A.967; 84.946, subdivision 2; 85.34, subdivision 1; 116J.8738, 
1.8 	subdivisions 2, 3; 174.50, subdivisions 5, 6b, 6c, 7, by adding a subdivision; 
1.9 	326B.124; 446A.072; 446A.073; 446A.081, subdivision 9; 446A.12, subdivision 
1.10 	1; 462A.37, subdivisions 2a, 2b, 5, by adding a subdivision; Laws 2006, chapter 
1.11 	258, section 18, subdivision 6, as amended; Laws 2012, chapter 293, sections 7, 
1.12 	subdivision 3; 17, subdivision 4; Laws 2014, chapter 294, article 1, sections 7, 
1.13 	subdivisions 11, 15; 17, subdivisions 6, 12; 21, subdivision 12, as amended; Laws 
1.14 	2015, First Special Session chapter 5, article 1, section 10, subdivisions 3, 7; 
1.15 	proposing coding for new law in Minnesota Statutes, chapters 16C; 219; repealing 
1.16 	Minnesota Statutes 2016, section 123A.446.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	APPROPRIATIONS

1.20	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.21 	The sums shown in the column under "Appropriations" are appropriated from the bond 
1.22 	proceeds fund, or another named fund, to the state agencies or officials indicated, to be 
1.23 	spent for public purposes. Appropriations of bond proceeds must be spent as authorized by 
1.24 	the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public 
1.25 	land and buildings and other public improvements of a capital nature, or as authorized by 
1.26 	the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless 
1.27 	otherwise specified, money appropriated in this article for a capital program or project may 
1.28 	be used to pay state agency staff costs that are attributed directly to the capital program or 
2.1 	project in accordance with accounting policies adopted by the commissioner of management 
2.2 	and budget. Unless otherwise specified, the appropriations in this act are available until the 
2.3 	project is completed or abandoned subject to Minnesota Statutes, section 16A.642. Unless 
2.4 	otherwise specified in this article, money appropriated in this article for activities under 
2.5 	Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, should not be used for projects 
2.6 	that can be financed within a reasonable time frame under Minnesota Statutes, section 
2.7 	16B.322 or 16C.144.

2.8						APPROPRIATIONS

2.9	Sec. 2. UNIVERSITY OF MINNESOTA

2.10	Subdivision 1.Total Appropriation
 			$
	119,934,000
	
2.11 	To the Board of Regents of the University of 
2.12 	Minnesota for the purposes specified in this 
2.13 	section.

2.14
2.15	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				20,600,000
	
2.16 	To be spent in accordance with Minnesota 
2.17 	Statutes, section 135A.046.

2.18
2.19	Subd. 3.Duluth - Chemical Sciences and 
Advanced Materials Science Building
 				28,267,000
	
2.20 	To design, construct, furnish, and equip a new 
2.21 	laboratory building on the Duluth campus, 
2.22 	including classrooms and research and 
2.23 	undergraduate instructional laboratories.

2.24
2.25	Subd. 4.Twin Cities - Health Sciences Education 
Facility
 				66,667,000
	
2.26 	To demolish obsolete health sciences facilities 
2.27 	and to design, renovate, furnish, equip, and 
2.28 	construct a health science education facility 
2.29 	on the Twin Cities campus to meet the needs 
2.30 	of the Medical School and the Academic 
2.31 	Health Center.

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

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

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

3.29
3.30	Sec. 3. MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

3.31	Subdivision 1.Total Appropriation
 			$
	92,325,000
	
3.32 	To the Board of Trustees of the Minnesota 
3.33 	State Colleges and Universities for the 
3.34 	purposes specified in this section.

4.1
4.2	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				25,000,000
	
4.3 	To be spent in accordance with Minnesota 
4.4 	Statutes, section 135A.046.

4.5	Subd. 3.Hibbing Community College
 				11,223,000
	
4.6 	To demolish Building G and connecting links 
4.7 	or portions thereof, and to construct, renovate, 
4.8 	furnish, and equip buildings, links, and entry 
4.9 	spaces on the campus.

4.10
4.11	Subd. 4.Minnesota State Community and 
Technical College

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

4.24	(b) Wadena Campus
				820,000
	
4.25 	To design, renovate, furnish, and equip the 
4.26 	relocation of the current library to 
4.27 	underutilized space and convert the vacated 
4.28 	space into a centralized student services center.

4.29
4.30	Subd. 5.Northland Community and Technical 
College, East Grand Forks
 				826,000
	
4.31 	To design, renovate, furnish, and equip science 
4.32 	and radiological lab space on the East Grand 
4.33 	Forks campus.

4.34	Subd. 6.South Central College, North Mankato
 				9,600,000
	
5.1 	To design, renovate, renew, furnish, and equip 
5.2 	laboratory, classroom, and office spaces on 
5.3 	the North Mankato campus.

5.4	Subd. 7.St. Cloud State University
 				18,572,000
	
5.5 	To construct, renovate, furnish, and equip 
5.6 	Eastman Hall for the relocation of 
5.7 	consolidated student health services and 
5.8 	academic programs.

5.95.10
	Subd. 8.Winona State University, Education 
Village, Phase 2
 				25,306,000
	
5.11 	To complete design, construct, renovate, 
5.12 	furnish, and equip Phase 2 of the Education 
5.13 	Village project, including the renovation of 
5.14 	Cathedral and Wabasha Halls and Wabasha 
5.15 	Rec, and remove obsolete portions of Wabasha 
5.16 	Rec and accomplishing related site work.

5.17	Subd. 9.Debt Service
 					
5.18 	(a) Except as provided in paragraph (b), the 
5.19 	Board of Trustees shall pay the debt service 
5.20 	on one-third of the principal amount of state 
5.21 	bonds sold to finance projects authorized by 
5.22 	this section. After each sale of general 
5.23 	obligation bonds, the commissioner of 
5.24 	management and budget shall notify the board 
5.25 	of the amounts assessed for each year for the 
5.26 	life of the bonds.
5.27 	(b) The board need not pay debt service on 
5.28 	bonds sold to finance HEAPR. Where a 
5.29 	nonstate match is required, the debt service is 
5.30 	due on a principal amount equal to one-third 
5.31 	of the total project cost, less the match 
5.32 	committed before the bonds are sold.
5.33 	(c) The commissioner of management and 
5.34 	budget shall reduce the board's assessment 
6.1 	each year by one-third of the net income from 
6.2 	investment of general obligation bond 
6.3 	proceeds in proportion to the amount of 
6.4 	principal and interest otherwise required to be 
6.5 	paid by the board. The board shall pay its 
6.6 	resulting net assessment to the commissioner 
6.7 	of management and budget by December 1 
6.8 	each year. If the board fails to make a payment 
6.9 	when due, the commissioner of management 
6.10 	and budget shall reduce allotments for 
6.11 	appropriations from the general fund otherwise 
6.12 	available to the board and apply the amount 
6.13 	of the reduction to cover the missed debt 
6.14 	service payment. The commissioner of 
6.15 	management and budget shall credit the 
6.16 	payments received from the board to the bond 
6.17 	debt service account in the state bond fund 
6.18 	each December 1 before money is transferred 
6.19 	from the general fund under Minnesota 
6.20 	Statutes, section 16A.641, subdivision 10.

6.21	Subd. 10.Unspent Appropriations
 					
6.22 	(a) Upon substantial completion of a project 
6.23 	authorized in this section and after written 
6.24 	notice to the commissioner of management 
6.25 	and budget, the board must use any money 
6.26 	remaining in the appropriation for that project 
6.27 	for HEAPR under Minnesota Statutes, section 
6.28 	135A.046. The Board of Trustees must report 
6.29 	by February 1 of each even-numbered year to 
6.30 	the chairs of the house of representatives and 
6.31 	senate committees with jurisdiction over 
6.32 	capital investment and higher education 
6.33 	finance, and to the chairs of the house of 
6.34 	representatives Ways and Means Committee 
6.35 	and the senate Finance Committee, on how 
7.1 	the remaining money has been allocated or 
7.2 	spent.
7.3 	(b) The unspent portion of an appropriation 
7.4 	for a project in this section that is complete is 
7.5 	available for HEAPR under this subdivision, 
7.6 	at the same campus as the project for which 
7.7 	the original appropriation was made and the 
7.8 	debt service requirement under this section is 
7.9 	reduced accordingly. Minnesota Statutes, 
7.10 	section 16A.642, applies from the date of the 
7.11 	original appropriation to the unspent amount 
7.12 	transferred.

7.13	Sec. 4. EDUCATION

7.14	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
7.15 	To the commissioner of education for the 
7.16 	purposes specified in this section.

7.17	Subd. 2.Library Construction Grants
 				2,000,000
	
7.18 	For library construction grants under 
7.19 	Minnesota Statutes, section 134.45.

7.20
7.21	Subd. 3.Olmsted County - Dyslexia Institute of 
Minnesota
 				1,500,000
	
7.22 	For a grant to Olmsted County to acquire land 
7.23 	for, and to predesign, design, construct, 
7.24 	furnish, and equip a facility in Olmsted County 
7.25 	to support the local, regional, and national 
7.26 	literacy work of the Dyslexia Institute of 
7.27 	Minnesota, subject to Minnesota Statutes, 
7.28 	section 16A.695. This appropriation is not 
7.29 	available until the commissioner of 
7.30 	management and budget determines that an 
7.31 	amount sufficient to complete the project is 
7.32 	committed to it from nonstate sources.

7.33	Subd. 4.Grand Rapids - Myles Reif Center
 				500,000
	
8.1 	From the general fund for a grant to 
8.2 	Independent School District No. 318, Grand 
8.3 	Rapids, to cover cost overruns for the Myles 
8.4 	Reif Center for the Performing Arts project in 
8.5 	Grand Rapids. This appropriation is added to 
8.6 	and is for the same purposes as the project in 
8.7 	Laws 2014, chapter 294, article 1, section 21, 
8.8 	subdivision 8. This appropriation does not 
8.9 	require a nonstate contribution.

8.10	Sec. 5. MINNESOTA STATE ACADEMIES

8.11	Subdivision 1.Total Appropriation
 			$
	2,050,000
	
8.12 	To the commissioner of administration for the 
8.13 	purposes specified in this section.

8.14	Subd. 2.Asset Preservation
 				2,000,000
	
8.15 	For capital asset preservation improvements 
8.16 	and betterments on both campuses of the 
8.17 	Minnesota State Academies, to be spent in 
8.18 	accordance with Minnesota Statutes, section 
8.19 	16B.307.

8.20	Subd. 3.Security Corridor
 				50,000
	
8.21 	For predesign for a safety corridor on the 
8.22 	Minnesota State Academy for the Deaf 
8.23 	campus.

8.24	Sec. 6. NATURAL RESOURCES

8.25	Subdivision 1.Total Appropriation
 			$
	67,203,000
	
8.26 	(a) To the commissioner of natural resources 
8.27 	for the purposes specified in this section.
8.28 	(b) The appropriations in this section are 
8.29 	subject to the requirements of the natural 
8.30 	resources capital improvement program under 
8.31 	Minnesota Statutes, section 86A.12, unless 
8.32 	this section or the statutes referred to in this 
9.1 	section provide more specific standards, 
9.2 	criteria, or priorities for projects than 
9.3 	Minnesota Statutes, section 86A.12.

9.4	Subd. 2.Natural Resources Asset Preservation
 				15,000,000
	
9.5 	For the renovation of state-owned facilities 
9.6 	and recreational assets operated by the 
9.7 	commissioner of natural resources to be spent 
9.8 	in accordance with Minnesota Statutes, section 
9.9 	84.946. Notwithstanding Minnesota Statutes, 
9.10 	section 84.946:
9.11 	(1) the commissioner may use this 
9.12 	appropriation to replace buildings if, 
9.13 	considering the embedded energy in the 
9.14 	building, that is the most energy-efficient and 
9.15 	carbon-reducing method of renovation; and
9.16 	(2) this appropriation may be used for projects 
9.17 	to remove life safety hazards such as building 
9.18 	code violations or structural defects.

9.19	Subd. 3.Flood Hazard Mitigation
 				11,555,000
	
9.20 	(a) For the state share of flood hazard 
9.21 	mitigation grants for publicly owned capital 
9.22 	improvements to prevent or alleviate flood 
9.23 	damage under Minnesota Statutes, section 
9.24 	103F.161.
9.25 	(b) Levee projects, to the extent practical, shall 
9.26 	meet the state standard of three feet above the 
9.27 	100-year flood elevation.
9.28 	(c) Project priorities shall be determined by 
9.29 	the commissioner as appropriate and based on 
9.30 	need.
9.31 	(d) This appropriation includes $1,700,000 for 
9.32 	the Cedar River Watershed District, $750,000 
10.1 	for the city of Browns Valley project, and 
10.2 	$1,800,000 for the city of Ortonville project.
10.3 	(e) For any project listed in this subdivision 
10.4 	that the commissioner determines is not ready 
10.5 	to proceed or does not expend all the money 
10.6 	allocated to it, the commissioner may allocate 
10.7 	that project's money to a project on the 
10.8 	commissioner's priority list.
10.9 	(f) To the extent that the cost of a project 
10.10 	exceeds two percent of the median household 
10.11 	income in a municipality or township 
10.12 	multiplied by the number of households in the 
10.13 	municipality or township, this appropriation 
10.14 	is also for the local share of the project.

10.15	Subd. 4.Dam Renovation, Repair, Removal
 				15,400,000
	
10.16 	(a) For design, engineering, and construction 
10.17 	to repair, reconstruct, or remove dams and 
10.18 	respond to dam safety emergencies. The 
10.19 	commissioner shall determine project priorities 
10.20 	as appropriate under Minnesota Statutes, 
10.21 	sections 103G.511 and 103G.515. Of this 
10.22 	appropriation:
10.23 	(1) $4,400,000 is for emergencies on 
10.24 	state-owned dams; for repairs to the Lake 
10.25 	Bronson dam; and for state dams at Brawner, 
10.26 	West Leaf Lake, Collinwood, Grindstone 
10.27 	River, Sullivan, and Willow River;
10.28 	(2) $4,000,000 is for a grant to the city of 
10.29 	Lanesboro for repair of the Lanesboro dam 
10.30 	and notwithstanding the match requirements 
10.31 	in Minnesota Statutes, section 103G.511, does 
10.32 	not require a nonstate contribution. This 
10.33 	includes funding for repairs of the hydropower 
10.34 	system;
11.1 	(3) $500,000 is for a grant to the city of 
11.2 	Pelican Rapids for engineering work on the 
11.3 	Pelican Rapids dam;
11.4 	(4) $200,000 is for a grant to the city of Pine 
11.5 	River for engineering work on the Norway 
11.6 	Lake dam;
11.7 	(5) $200,000 is for a grant to Yellow Medicine 
11.8 	County for the Canby R-6 impoundment dam;
11.9 	(6) $100,000 is for a grant to St. Louis County 
11.10 	for the Little Stone Lake dam; and
11.11 	(7) $6,000,000 is for a grant to Dakota County 
11.12 	to design and construct capital improvements 
11.13 	to the hydroelectric generating facility, 
11.14 	including replacement of obsolete turbines, at 
11.15 	the Byllesby Dam located on the Cannon 
11.16 	River.
11.17 	(b) If the commissioner determines that a 
11.18 	project is not ready to proceed, this 
11.19 	appropriation may be used for other projects 
11.20 	on the commissioner's priority list.

11.21	Subd. 5.Reforestation and Stand Improvement
 				1,000,000
	
11.22 	To provide for reforestation and stand 
11.23 	improvement on state forest lands to meet the 
11.24 	reforestation requirements of Minnesota 
11.25 	Statutes, section 89.002, subdivision 2, 
11.26 	including purchasing native seeds and native 
11.27 	seedlings, planting, seeding, site preparation, 
11.28 	and protection on state lands administered by 
11.29 	the commissioner.

11.30
11.31	Subd. 6.State Trail, Recreation Area, and Park 
Acquisition and Development
 				18,698,000
	
11.32 	(a) $2,590,000 is for the Glacial Lakes Trail, 
11.33 	to complete an approximately 6-1/4 mile trail 
11.34 	connection between New London and Sibley 
12.1 	State Park, and repair of the bicycle trail in 
12.2 	Sibley State Park.
12.3 	(b) $3,300,000 is to design, develop, and 
12.4 	complete the Heartland State Trail from 
12.5 	Detroit Lakes to Frazee and, to the extent there 
12.6 	is sufficient money, for work on the spur from 
12.7 	Park Rapids to Itasca State Park.
12.8 	(c) $3,600,000 is for acquisition and 
12.9 	development in the Cuyuna Country State 
12.10 	Recreation Area, including the Cuyuna 
12.11 	Mountain Bike System.
12.12 	(d) $1,600,000 is to construct, furnish, and 
12.13 	equip a multiuse state trail connection between 
12.14 	the city of Little Falls and the Soo Line Trails 
12.15 	as part of the Camp Ripley/Veterans State 
12.16 	Trail in Morrison County. The trail connection 
12.17 	may include separated segments to 
12.18 	accommodate recreational vehicles separately 
12.19 	from nonmotorized vehicles and pedestrians.
12.20 	(e) $3,500,000 is for continued development 
12.21 	of Lake Vermilion-Soudan Underground Mine 
12.22 	State Park recreational facilities.
12.23 	(f) $328,000 is for design and acquisition of 
12.24 	the Mill Towns State Trail from Faribault to 
12.25 	Northfield.
12.26 	(g) $3,130,000 is for acquisition and 
12.27 	development of the Gitchi-Gami State Trail, 
12.28 	from Grand Marais to Cascade State Park, and 
12.29 	through the town of Tofte.
12.30 	(h) The commissioner may allocate money 
12.31 	not needed to complete a project listed in this 
12.32 	subdivision to another project listed in this 
12.33 	subdivision that needs additional money to be 
12.34 	completed. For any project listed in this 
13.1 	subdivision that the commissioner determines 
13.2 	is not ready to proceed, the commissioner may 
13.3 	reallocate that project's money to another 
13.4 	project described in this subdivision or other 
13.5 	state trail, recreation area, or park 
13.6 	infrastructure. The chairs of the house of 
13.7 	representatives and senate committees with 
13.8 	jurisdiction over environment and natural 
13.9 	resources and legislators from the affected 
13.10 	legislative districts must be notified of any 
13.11 	changes.

13.12	Subd. 7.Champlin - Mill Pond
 				3,300,000
	
13.13 	For a grant to the city of Champlin to dredge 
13.14 	and remove sediment and for other capital 
13.15 	improvements to the Champlin Mill Pond 
13.16 	necessary to improve water quality, restore 
13.17 	fish habitat, and provide other public benefits.

13.18
13.19	Subd. 8.Lake County - Prospectors ATV Trail 
System
 				1,000,000
	
13.20 	For a grant to Lake County for construction, 
13.21 	including bridges, of the Prospectors ATV 
13.22 	Trail System linking the communities of Ely, 
13.23 	Babbitt, Embarrass, and Tower; Bear Head 
13.24 	Lake and Lake Vermilion-Soudan 
13.25 	Underground Mine State Parks; the Taconite 
13.26 	State Trail; and the Lake County Regional 
13.27 	ATV Trail System. This appropriation is not 
13.28 	available until the commissioner of 
13.29 	management and budget determines that an 
13.30 	equal amount is committed from other sources.

13.31
13.32	Subd. 9.Morrison County - Soo Line Trail 
Bridge
 				400,000
	
13.33 	For a grant to Morrison County to predesign, 
13.34 	design, and construct the rehabilitation of the 
13.35 	Soo Line Trail bridge over the Mississippi 
14.1 	River, including specifically the bridge's piers 
14.2 	and abutments. This appropriation does not 
14.3 	require a nonstate match.

14.4	Subd. 10.St. Paul - Shade Tree Reforestation
 				1,500,000
	
14.5 	For a grant to St. Paul for the planting of 
14.6 	publicly owned shade trees on public land to 
14.7 	provide environmental benefits; replace trees 
14.8 	lost to forest pests, disease, or storm; or to 
14.9 	establish a more diverse community forest 
14.10 	better able to withstand disease and forest 
14.11 	pests. For purposes of this appropriation, 
14.12 	"shade tree" means a woody perennial grown 
14.13 	primarily for aesthetic or environmental 
14.14 	purposes with minimal to residual timber value 
14.15 	and no intent to harvest the tree for its wood. 
14.16 	Any tree planted with funding under this 
14.17 	subdivision must be a species native to 
14.18 	Minnesota.

14.19	Subd. 11.Unspent Appropriations
 					
14.20 	The unspent portion of an appropriation for a 
14.21 	project in this section that is complete, upon 
14.22 	written notice to the commissioner of 
14.23 	management and budget, is available for asset 
14.24 	preservation under Minnesota Statutes, section 
14.25 	84.946. Minnesota Statutes, section 16A.642, 
14.26 	applies from the date of the original 
14.27 	appropriation to the unspent amount 
14.28 	transferred.

14.29	Sec. 7. POLLUTION CONTROL AGENCY

14.30	Subdivision 1.Total Appropriation
 			$
	46,010,000
	
14.31 	To the Pollution Control Agency for the 
14.32 	purposes specified in this section.

14.33	Subd. 2.St. Louis River Cleanup
 				25,410,000
	
15.1 	To design and implement contaminated 
15.2 	sediment management actions identified in 
15.3 	the St. Louis River remedial action plan to 
15.4 	restore water quality in the St. Louis River 
15.5 	Area of Concern.

15.6	Subd. 3.Closed Landfill Cleanup
 				11,350,000
	
15.7 	To design and construct remedial systems and 
15.8 	acquire land at closed landfills throughout the 
15.9 	state in accordance with the closed landfill 
15.10 	program under Minnesota Statutes, sections 
15.11 	115B.39 to 115B.42. The agency must follow 
15.12 	the agency priorities, which includes a 
15.13 	construction project at the waste disposal 
15.14 	engineering (WDE) site in Anoka County.

15.15	Subd. 4.Capital Assistance Program
 				9,250,000
	
15.16 	For a grant to Polk County under the solid 
15.17 	waste capital assistance grant program under 
15.18 	Minnesota Statutes, section 115A.54, in order 
15.19 	to complete a regional integrated solid waste 
15.20 	management system.

15.21
15.22	Sec. 8. BOARD OF WATER AND SOIL 
RESOURCES

15.23	Subdivision 1.Total Appropriation
 			$
	15,000,000
	
15.24 	To the Board of Water and Soil Resources for 
15.25 	the purposes specified in this section.

15.26
15.27	Subd. 2.Reinvest in Minnesota (RIM) Reserve 
Program
 				10,000,000
	
15.28 	(a) To acquire conservation easements from 
15.29 	landowners to preserve, restore, create, and 
15.30 	enhance wetlands and associated uplands of 
15.31 	prairie and grasslands, and restore and enhance 
15.32 	rivers and streams, riparian lands, and 
15.33 	associated uplands of prairie and grasslands 
15.34 	in order to protect soil and water quality, 
16.1 	support fish and wildlife habitat, reduce flood 
16.2 	damage, and provide other public benefits. 
16.3 	The provisions of Minnesota Statutes, section 
16.4 	103F.515, apply to this program.
16.5 	(b) The board shall give priority to leveraging 
16.6 	federal money by enrolling targeted new lands 
16.7 	or enrolling environmentally sensitive lands 
16.8 	that have expiring federal conservation 
16.9 	agreements.
16.10 	(c) The board is authorized to enter into new 
16.11 	agreements and amend past agreements with 
16.12 	landowners as required by Minnesota Statutes, 
16.13 	section 103F.515, subdivision 5, to allow for 
16.14 	restoration. Of this appropriation, up to five 
16.15 	percent may be used for restoration and 
16.16 	enhancement.

16.17
16.18	Subd. 3.Local Government Roads Wetland 
Replacement Program
 				5,000,000
	
16.19 	To acquire land or permanent easements and 
16.20 	to restore, create, enhance, and preserve 
16.21 	wetlands to replace those wetlands drained or 
16.22 	filled as a result of the repair, reconstruction, 
16.23 	replacement, or rehabilitation of existing 
16.24 	public roads as required by Minnesota 
16.25 	Statutes, section 103G.222, subdivision 1, 
16.26 	paragraphs (l) and (m). The board may vary 
16.27 	the priority order of Minnesota Statutes, 
16.28 	section 103G.222, subdivision 3, paragraph 
16.29 	(a), to implement an in-lieu fee agreement 
16.30 	approved by the U.S. Army Corps of 
16.31 	Engineers under section 404 of the Clean 
16.32 	Water Act. The purchase price paid for 
16.33 	acquisition of land or perpetual easement must 
16.34 	be a fair market value as determined by the 
16.35 	board. The board may enter into agreements 
17.1 	with the federal government, other state 
17.2 	agencies, political subdivisions, nonprofit 
17.3 	organizations, fee title owners, or other 
17.4 	qualified private entities to acquire wetland 
17.5 	replacement credits in accordance with 
17.6 	Minnesota Rules, chapter 8420.
17.7 	Up to $560,000 of this appropriation may be 
17.8 	spent to replace wetlands drained or filled that 
17.9 	are associated with a new public road project 
17.10 	to improve public safety in a greater than 80 
17.11 	percent area, as defined in Minnesota Statutes, 
17.12 	section 103G.005, subdivision 10b.

17.13	Sec. 9. AGRICULTURE

17.14	Subdivision 1.Total Appropriations
 			$
	270,000
	
17.15 	To the commissioner of agriculture for the 
17.16 	purposes specified in this section.

17.17	Subd. 2.AURI
 				270,000
	
17.18 	From the general fund for a grant to 
17.19 	Agricultural Utilization Research Institute 
17.20 	(AURI) for construction of a development 
17.21 	kitchen, sensory lab, and safety and security 
17.22 	upgrades at AURI's Marshall facility and for 
17.23 	updated equipment and renovations at the 
17.24 	Waseca facility.

17.25
17.26	Sec. 10. MINNESOTA ZOOLOGICAL 
GARDEN

17.27	Subdivision 1.Total Appropriation
 			$
	4,000,000
	
17.28 	To the Minnesota Zoological Garden Board 
17.29 	for the purposes specified in this section.

17.30	Subd. 2.Asset Preservation
 				4,000,000
	
17.31 	For capital asset preservation improvements 
17.32 	and betterments to infrastructure and exhibits 
18.1 	at the Minnesota Zoo, to be spent in 
18.2 	accordance with Minnesota Statutes, section 
18.3 	16B.307. Notwithstanding the specified uses 
18.4 	of money under Minnesota Statutes, section 
18.5 	16B.307, the board may use this appropriation 
18.6 	to replace buildings that are in poor condition, 
18.7 	outdated, and no longer support the work of 
18.8 	the Minnesota Zoo and to construct and 
18.9 	renovate trails and roads on the Minnesota 
18.10 	Zoo site.

18.11	Sec. 11. ADMINISTRATION

18.12	Subdivision 1.Total Appropriation
 			$
	18,178,000
	
18.13 	To the commissioner of administration for the 
18.14 	purposes specified in this section.

18.15	Subd. 2.Centennial Parking Ramp
 				10,878,000
	
18.16 	(a) To complete design and for structural 
18.17 	repairs to the Centennial parking ramp, 
18.18 	including removal of the top deck green space 
18.19 	to provide additional parking capacity, 
18.20 	repairing damaged post-tension cables, and 
18.21 	installation of a deck surface protection 
18.22 	coating.
18.23 	(b) Any unexpended amount of this 
18.24 	appropriation after completing the project in 
18.25 	paragraph (a) may be used to design and 
18.26 	construct a storm water retention basin 
18.27 	adjacent to the Centennial parking ramp, if the 
18.28 	commissioner of administration determines 
18.29 	that the basin is feasible.

18.30
18.31	Subd. 3.Capital Asset Preservation and 
Replacement Account
 				5,000,000
	
18.32 	To be spent in accordance with Minnesota 
18.33 	Statutes, section 16A.632.

18.34	Subd. 4.Granite Falls - Pioneer Public Television
 				1,950,000
	
19.1 	From the general fund to provide an equipment 
19.2 	grant to Pioneer Public Television as part of 
19.3 	the station's construction of a new facility in 
19.4 	Granite Falls, Minnesota. The money may be 
19.5 	used to purchase and install equipment 
19.6 	necessary to the station's operation. This 
19.7 	appropriation does not require a nonstate 
19.8 	contribution.

19.919.10
	Subd. 5.Capitol Complex Monuments and 
Memorials
 				350,000
	
19.11 	To design and complete critical repairs to the 
19.12 	Peace Officers and Roy Wilkins Memorials 
19.13 	located on the Capitol complex.

19.14	Sec. 12. MN.IT
 			$
	$1,432,000
	
19.15 	To the commissioner of administration to 
19.16 	predesign, design, construct, renovate, furnish, 
19.17 	and equip existing state data center facilities 
19.18 	at the Bureau of Criminal Apprehension's 
19.19 	Maryland Avenue office building, at the 
19.20 	Centennial Office Building, and at the 
19.21 	Department of Revenue's Stassen Office 
19.22 	Building for the purpose of decommissioning 
19.23 	and repurposing into usable office space.

19.24	Sec. 13. MILITARY AFFAIRS

19.25	Subdivision 1. Total Appropriation
 			$
	2,500,000
	
19.26 	To the adjutant general for the purposes 
19.27 	specified in this section.

19.28	Subd. 2.Asset Preservation
 				2,500,000
	
19.29 	For asset preservation improvements and 
19.30 	betterments of a capital nature at military 
19.31 	affairs facilities statewide, to be spent in 
19.32 	accordance with Minnesota Statutes, section 
19.33 	16B.307.

20.1	Sec. 14. PUBLIC SAFETY

20.2	Subdivision 1.Total Appropriation
 			$
	3,521,000
	
20.3 	To the named official for the purposes 
20.4 	specified in this section.

20.5	Subd. 2.Camp Ripley Training Facility
 				3,521,000
	
20.6 	To the adjutant general to predesign, design, 
20.7 	construct, and equip a joint emergency railroad 
20.8 	and pipeline emergency response training 
20.9 	facility at Camp Ripley. The project includes 
20.10 	construction of stations and capital 
20.11 	infrastructure needed for mock disaster 
20.12 	training, including infrastructure for training 
20.13 	in hazardous materials abatement and site 
20.14 	recovery work.

20.15	Sec. 15. TRANSPORTATION

20.16	Subdivision 1.Total Appropriation
 			$
	254,918,000
	
20.17 	To the commissioner of transportation for the 
20.18 	purposes specified in this section.

20.19
20.20	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				49,212,000
	
20.21 	From the bond proceeds account in the state 
20.22 	transportation fund to match federal money 
20.23 	and to replace or rehabilitate local deficient 
20.24 	bridges as provided in Minnesota Statutes, 
20.25 	section 174.50.
20.26 	$31,875,000 of this appropriation is for a grant 
20.27 	under Minnesota Statutes, section 174.50, 
20.28 	subdivision 6d, to the city of Minneapolis to 
20.29 	repair and rehabilitate the bridge over the 
20.30 	Mississippi River that is aligned on the east 
20.31 	side of the river with 10th Avenue, also 
20.32 	designated Route 328, on the municipal 
20.33 	state-aid system, notwithstanding any law or 
21.1 	rule to the contrary. This appropriation does 
21.2 	not require a local match.
21.3 	$800,000 of this appropriation is for a grant 
21.4 	to the city of Isle for demolition and 
21.5 	construction necessary to replace the Malone 
21.6 	Island Bridge, including the replacement of 
21.7 	accompanying water and sewer lines.

21.8	Subd. 3.Local Road Improvement Fund Grants
 				115,932,000
	
21.9 	(a) From the bond proceeds account in the 
21.10 	state transportation fund as provided in 
21.11 	Minnesota Statutes, section 174.50, for trunk 
21.12 	highway corridor projects under Minnesota 
21.13 	Statutes, section 174.52, subdivision 2, for 
21.14 	construction and reconstruction of local roads 
21.15 	with statewide or regional significance under 
21.16 	Minnesota Statutes, section 174.52, 
21.17 	subdivision 4, or for grants to counties to assist 
21.18 	in paying the costs of rural road safety capital 
21.19 	improvement projects on county state-aid 
21.20 	highways under Minnesota Statutes, section 
21.21 	174.52, subdivision 4a.
21.22 	(b) Of this amount, $9,000,000 is for a grant 
21.23 	to Anoka County to realign and make 
21.24 	associated improvements to County State-Aid 
21.25 	Highway 23 (Lake Drive), County State-Aid 
21.26 	Highway 54 (West Freeway Drive), and to 
21.27 	Hornsby Street in the city of Columbus.
21.28 	(c) Of this amount, $3,246,000 is for a grant 
21.29 	to the city of Blaine to predesign, design, and 
21.30 	reconstruct 105th Avenue in the vicinity of 
21.31 	the National Sports Center in Blaine. The 
21.32 	reconstruction will include changing the street 
21.33 	from five lanes to four lanes with median, turn 
21.34 	lanes, sidewalk, trail, landscaping, lighting, 
21.35 	and consolidation of access driveways. This 
22.1 	appropriation is not available until the 
22.2 	commissioner of management and budget 
22.3 	determines that at least $3,000,000 is 
22.4 	committed to the project from sources 
22.5 	available to the city, including municipal state 
22.6 	aid and county turnback funds.
22.7 	(d) Of this amount, $25,000,000 is for a grant 
22.8 	to Hennepin County, the city of Minneapolis, 
22.9 	or both, for design, right-of-way acquisition, 
22.10 	engineering, and construction of public 
22.11 	improvements related to the Interstate 
22.12 	Highway 35W and Lake Street access project 
22.13 	and related improvements within the Interstate 
22.14 	Highway 35W corridor, notwithstanding any 
22.15 	provision of Minnesota Statutes, section 
22.16 	174.52, or rule to the contrary. This 
22.17 	appropriation is not available until the 
22.18 	commissioner of management and budget 
22.19 	determines that an amount sufficient to 
22.20 	complete this portion of the Interstate 
22.21 	Highway 35W and Lake Street access project 
22.22 	has been committed to this portion of the 
22.23 	project.
22.24 	(e) Of this amount, $10,500,000 is for a grant 
22.25 	to Carver County for environmental analysis 
22.26 	and to acquire right-of-way access, predesign, 
22.27 	design, engineer, and construct an interchange 
22.28 	at marked Trunk Highway 212 and Carver 
22.29 	County Road 44 in the city of Chaska, 
22.30 	including a new bridge and ramps, to support 
22.31 	the development of approximately 400 acres 
22.32 	of property in the city of Chaska's 
22.33 	comprehensive plan.
22.34 	(f) Of this amount, $700,000 is for a grant to 
22.35 	Redwood County for improvements to Nobles 
23.1 	Avenue, including paving, as the main access 
23.2 	road to a new State Veterans Cemetery to be 
23.3 	located in Paxton Township.
23.4 	(g) Of this amount, $1,000,000 is for a grant 
23.5 	to the town of Appleton in Swift County for 
23.6 	upgrades to an existing township road to 
23.7 	provide for a paved, ten-ton capacity township 
23.8 	road extending between marked Trunk 
23.9 	Highways 7 and 119.
23.10 	(h) Of this amount, $20,500,000 is for a grant 
23.11 	to Ramsey County for preliminary and final 
23.12 	design, right-of-way acquisition, engineering, 
23.13 	contract administration, and construction of 
23.14 	public improvements related to the 
23.15 	construction of the interchange of marked 
23.16 	Interstate Highway 694 and Rice Street, 
23.17 	Ramsey County State-Aid Highway 49, in 
23.18 	Ramsey County.
23.19 	(i) Of this amount, $11,300,000 is for a grant 
23.20 	to Hennepin County for preliminary and final 
23.21 	design, engineering, environmental analysis, 
23.22 	right-of-way acquisition, construction, and 
23.23 	reconstruction of local roads related to the (1) 
23.24 	realignment at the intersections of marked U.S. 
23.25 	Highway 12 with Hennepin County State-Aid 
23.26 	Highway 92; (2) realignment and safety 
23.27 	improvements at the intersection of marked 
23.28 	U.S. Highway 12 with Hennepin County 
23.29 	State-Aid Highway 90; and (3) safety median 
23.30 	improvements from the interchange with 
23.31 	Wayzata Boulevard in Wayzata to 
23.32 	approximately one-half mile east of the 
23.33 	interchange of marked U.S. Highway 12 with 
23.34 	Hennepin County State-Aid Highway 6.
24.1 	(j) Of this amount, $1,000,000 is  for a grant 
24.2 	to the city of Inver Grove Heights for 
24.3 	preliminary design, design, engineering, and 
24.4 	reconstruction of Broderick Boulevard 
24.5 	between 80th Street and Concord Boulevard 
24.6 	abutting Trunk Highway 52 and Inver Hills 
24.7 	Community College in Inver Grove Heights. 
24.8 	The project includes replacement or renovation 
24.9 	of public infrastructure, including water lines, 
24.10 	sanitary sewers, storm water sewers, and other 
24.11 	public utilities. This appropriation does not 
24.12 	require a nonstate contribution.
24.13 	(k) Of this amount, $2,350,000 is  for a grant 
24.14 	to McLeod County to acquire land or interests 
24.15 	in land and to design and construct a new 
24.16 	urban street extension of County State-Aid 
24.17 	Highway (CSAH) 15, including railroad 
24.18 	crossing, storm water, and drainage 
24.19 	improvements.
24.20 	(l) Of this amount, $6,000,000 is for a grant 
24.21 	to the city of Baxter for 50 percent of total 
24.22 	project cost for the acquisition of land or 
24.23 	interests in land, environmental analysis and 
24.24 	environmental cleanup, predesign, design, 
24.25 	engineering, and construction of improvements 
24.26 	to Cypress Drive, including expansion to a 
24.27 	four-lane divided urban roadway, between 
24.28 	Excelsior Road and College Road.

24.29
24.30	Subd. 4.Rail Grade Separation on Crude Oil 
Rail Corridors
 				71,124,000
	
24.31 	(a) Of this amount, $42,262,000 is for a grant 
24.32 	to the city of Moorhead for environmental 
24.33 	analysis, design, engineering, removal of an 
24.34 	existing structure, and construction of a rail 
25.1 	grade crossing separation in the vicinity of 
25.2 	21st Street South.
25.3 	(b) $14,100,000 is for a grant to Anoka County 
25.4 	for environmental analysis, design, 
25.5 	engineering, removal of an existing structure, 
25.6 	and construction of a rail grade crossing 
25.7 	separation at Anoka County State-Aid 
25.8 	Highway 78, known as Hanson Boulevard, in 
25.9 	Coon Rapids. Any unspent portion of the 
25.10 	appropriation under this paragraph may be 
25.11 	used by Anoka County for design costs of 
25.12 	other rail crossings in Anoka County that are 
25.13 	on the commissioner's rail safety priority list.
25.14 	(c) Of this amount, $14,762,000 is for a grant 
25.15 	to the city of Red Wing for environmental 
25.16 	analysis, design, engineering, removal of an 
25.17 	existing structure, and construction of a rail 
25.18 	grade crossing separation at Sturgeon Lake 
25.19 	Road.
25.20 	(d) Any unspent portion of this appropriation 
25.21 	after completion of a project in this 
25.22 	subdivision may be used for grants in 
25.23 	accordance with Minnesota Statutes, section 
25.24 	219.016.

25.25	Subd. 5.Railroad Warning Devices
 				1,000,000
	
25.26 	To design, construct, and equip replacement 
25.27 	of active highway-rail grade warning devices 
25.28 	that have reached the end of their useful life.

25.29	Subd. 6.Rail Service Improvement
 				1,000,000
	
25.30 	For rail service improvement grants under 
25.31 	Minnesota Statutes, section 222.50.

25.32
25.33	Subd. 7.Minnesota Valley Regional Railroad 
Authority
 				4,000,000
	
26.1 	For a grant to the Minnesota Valley Regional 
26.2 	Rail Authority for the rehabilitation of a 
26.3 	portion of the railroad track between Winthrop 
26.4 	and Hanley Falls. The grant under this 
26.5 	subdivision may also be used for any required 
26.6 	environmental documentation and 
26.7 	remediation, predesign, design, and 
26.8 	rehabilitation or replacement of bridges with 
26.9 	new bridges or culverts between Winthrop and 
26.10 	Hanley Falls. A grant under this section is in 
26.11 	addition to any grant, loan, or loan guarantee 
26.12 	for this project made by the commissioner 
26.13 	under Minnesota Statutes, sections 222.46 to 
26.14 	222.62. This appropriation is in addition to 
26.15 	the appropriations in Laws 2006, chapter 258, 
26.16 	section 16, subdivision 6; Laws 2008, chapter 
26.17 	179, section 16, subdivision 5; Laws 2009, 
26.18 	chapter 93, article 1, section 11, subdivision 
26.19 	4; Laws 2010, chapter 189, section 15, 
26.20 	subdivision 5; and Laws 2015, First Special 
26.21 	Session chapter 5, article 1, section 10, 
26.22 	subdivision 4.

26.23	Subd. 8.Hugo - Short Line Railway
 				1,500,000
	
26.24 	For a grant to Minnesota Commercial Railway 
26.25 	for construction of repairs and other capital 
26.26 	improvements to approximately 6.5 miles of 
26.27 	railroad track described as that portion of the 
26.28 	Minnesota Commercial Railway main running 
26.29 	lead, between M & D Junction in White Bear 
26.30 	Lake and the end of the track in Hugo. This 
26.31 	appropriation must be used for the purposes 
26.32 	set forth in the Minnesota Constitution, article 
26.33 	XI, section 5, clause (i), to improve and 
26.34 	rehabilitate railroad rights-of-way and other 
26.35 	rail facilities, whether public or private. This 
27.1 	appropriation does not require a nonstate 
27.2 	match.

27.3	Subd. 9.Port Development Assistance
 				5,000,000
	
27.4 	For grants under Minnesota Statutes, chapter 
27.5 	457A. Any improvements made with the 
27.6 	proceeds of these grants must be publicly 
27.7 	owned.

27.8
27.9	Subd. 10.International Falls-Koochiching 
County Airport Commission
 				3,000,000
	
27.10 	(a) For a grant to the International 
27.11 	Falls-Koochiching County Airport 
27.12 	Commission for the following improvements 
27.13 	to the Falls International Airport:
27.14 	(1) demolition of the existing terminal 
27.15 	building;
27.16 	(2) rehabilitation;
27.17 	(3) site preparation, including utilities and civil 
27.18 	work;
27.19 	(4) design, construction, furnishing, and 
27.20 	equipping Phase II of the new terminal 
27.21 	building, including a Transportation Safety 
27.22 	Administration office, weather office, 
27.23 	conference room, circulation corridor, airport 
27.24 	administration offices, United States Customs 
27.25 	and Border Protection storage rooms, offices, 
27.26 	restrooms, passenger-processing area, 
27.27 	wet-hold room, interview room, search room, 
27.28 	precustoms and postcustoms passenger waiting 
27.29 	areas, and vestibule; and
27.30 	(5) associated appurtenances of a capital 
27.31 	nature.
27.32 	(b) After completion of the improvements 
27.33 	under paragraph (a), any unspent money from 
28.1 	this appropriation may be used by the 
28.2 	International Falls-Koochiching County 
28.3 	Airport Commission for a commercial airline 
28.4 	apron expansion project at the Falls 
28.5 	International Airport.
28.6 	(c) This appropriation does not require a 
28.7 	nonstate contribution or match.

28.8	Subd. 11.Grand Rapids - Pedestrian Bridge
 				750,000
	
28.9 	For a grant to the city of Grand Rapids to 
28.10 	design the construction of a bridge over the 
28.11 	Mississippi River for pedestrian and bicycle 
28.12 	use to provide a safe alternative route to the 
28.13 	existing marked Trunk Highway 169 vehicle 
28.14 	bridge, and to serve as a connection to existing 
28.15 	trail systems on each side of the river. This 
28.16 	appropriation is not available until the 
28.17 	commissioner determines that at least an equal 
28.18 	amount has been committed to the project 
28.19 	from nonstate sources.

28.20	Subd. 12.Safe Routes to School
 				1,000,000
	
28.21 	For grants under Minnesota Statutes, section 
28.22 	174.40.

28.23	Subd. 13.Eden Prairie - Rail Grade Crossings
 				1,400,000
	
28.24 	For a grant to the city of Eden Prairie to (1) 
28.25 	design, construct, and equip new passive and 
28.26 	active rail grade crossing warning safety 
28.27 	devices at existing and proposed highway-rail 
28.28 	grade crossings, or (2) replace existing 
28.29 	highway-rail grade crossings. Upon request 
28.30 	by the city of Eden Prairie, the commissioner 
28.31 	of transportation must provide reasonable 
28.32 	technical assistance regarding highway-rail 
28.33 	grade crossing project development and the 
28.34 	establishment of rail quiet zones.

29.1	Sec. 16. METROPOLITAN COUNCIL

29.2	Subdivision 1.Total Appropriation
 			$
	45,044,000
	
29.3 	To the Metropolitan Council for the purposes 
29.4 	specified in this section.

29.5
29.6	Subd. 2.Metropolitan Regional Parks and Trails 
Capital Improvements
 				5,000,000
	
29.7 	For the cost of improvements and betterments 
29.8 	of a capital nature and acquisition by the 
29.9 	council and local government units of regional 
29.10 	recreational open-space lands in accordance 
29.11 	with the council's policy plan as provided in 
29.12 	Minnesota Statutes, section 473.147. This 
29.13 	appropriation must not be used to purchase 
29.14 	easements.

29.15
29.16	Subd. 3.Metropolitan Cities Inflow and 
Infiltration Grants
 				3,739,000
	
29.17 	For grants to cities within the metropolitan 
29.18 	area, as defined in Minnesota Statutes, section 
29.19 	473.121, subdivision 2, for capital 
29.20 	improvements in municipal wastewater 
29.21 	collection systems to reduce the amount of 
29.22 	inflow and infiltration to the Metropolitan 
29.23 	Council's metropolitan sanitary sewer disposal 
29.24 	system. Grants from this appropriation are for 
29.25 	up to 50 percent of the cost to mitigate inflow 
29.26 	and infiltration in the publicly owned 
29.27 	municipal wastewater collection systems. To 
29.28 	be eligible for a grant, a city must be identified 
29.29 	by the council as a contributor of excessive 
29.30 	inflow and infiltration in the metropolitan 
29.31 	disposal system or have a measured flow rate 
29.32 	within 20 percent of its allowable 
29.33 	council-determined inflow and infiltration 
29.34 	limits. The council must award grants based 
29.35 	on applications from cities that identify 
30.1 	eligible capital costs and include a timeline 
30.2 	for inflow and infiltration mitigation 
30.3 	construction, pursuant to guidelines 
30.4 	established by the council.

30.5	Subd. 4.Metro Orange Line BRT
 				12,100,000
	
30.6 	Up to $12,100,000, but an amount that is no 
30.7 	more than ten percent of the total project cost, 
30.8 	is for the Metropolitan Council, or for the 
30.9 	Metropolitan Council to make grants to 
30.10 	political subdivisions, for design, acquisition 
30.11 	of right-of-way, engineering, and construction 
30.12 	of capital improvements along the I-35W 
30.13 	corridor for completion of the Metro Orange 
30.14 	Bus Rapid Transit (BRT) Line.

30.15	Subd. 5.Mall of America Station
 				8,750,000
	
30.16 	For design and construction of improvements 
30.17 	to the Mall of America station on the Hiawatha 
30.18 	Corridor light rail transit line, subject to 
30.19 	Minnesota Statutes, section 16A.695. The 
30.20 	Metropolitan Council must consult with the 
30.21 	city of Bloomington throughout the design 
30.22 	and construction process.

30.23	Subd. 6.St. Paul - Como Zoo
 				15,000,000
	
30.24 	For a grant to the city of St. Paul for predesign, 
30.25 	design, engineering, and construction of Phase 
30.26 	I of the renovation of seal and sea lion habitat 
30.27 	at the Como Zoo. The renovated habitat will 
30.28 	support the zoo education programs. This 
30.29 	appropriation is not available until the 
30.30 	commissioner of management and budget 
30.31 	determines that at least $1,100,000 is 
30.32 	committed to the project from nonstate 
30.33 	sources.

31.1	Subd. 7.White Bear Lake Multiuse Trails
 				255,000
	
31.2 	To develop a multiuse pedestrian and bicycle 
31.3 	path around White Bear Lake. Of this amount, 
31.4 	$130,000 is for a grant to the city of White 
31.5 	Bear Lake to construct, furnish, and equip a 
31.6 	multiuse trail for pedestrians and bicycles on 
31.7 	Old White Bear Avenue between Lion's Park 
31.8 	and South Shore Boulevard/Hazel; $38,000 is 
31.9 	for grants to the cities of Mahtomedi and 
31.10 	Dellwood for preliminary engineering of a 
31.11 	multiuse trail for pedestrians and bicycles near 
31.12 	White Bear Lake in the cities of Mahtomedi 
31.13 	and Dellwood to be located within the 
31.14 	right-of-way to marked Trunk Highway 244; 
31.15 	$15,000 is for a grant to the city of Mahtomedi 
31.16 	for preliminary engineering for a multiuse trail 
31.17 	for pedestrians and bicycles near White Bear 
31.18 	Lake within the right-of-way to Birchwood 
31.19 	Road in the city of Mahtomedi and Hall 
31.20 	Avenue in the city of Birchwood; and $50,000 
31.21 	is for a grant to Ramsey County for 
31.22 	preliminary engineering of a multiuse trail for 
31.23 	pedestrians and bicycles to South Shore 
31.24 	Boulevard between White Bear Avenue and 
31.25 	Trunk Highway 120.

31.26
31.27	Subd. 8.West St. Paul - River to River Regional 
Greenway
 				200,000
	
31.28 	For a grant to the city of West St. Paul to 
31.29 	predesign, design, and construct a grade 
31.30 	separated crossing of Robert Street in the area 
31.31 	near Wentworth Avenue in West St. Paul for 
31.32 	the River to River Regional Greenway. This 
31.33 	appropriation may also be used to acquire 
31.34 	property or purchase rights-of-way needed for 
31.35 	construction. This appropriation is in addition 
31.36 	to the appropriation in Laws 2014, chapter 
32.1 	294, article 1, section 17, subdivision 12, as 
32.2 	amended by article 2.

32.3	Sec. 17. HUMAN SERVICES

32.4	Subdivision 1.Total Appropriation
 			$
	100,365,000
	
32.5 	To the commissioner of administration, or 
32.6 	another named agency, for the purposes 
32.7 	specified in this section.

32.8	Subd. 2.Minnesota Security Hospital - St. Peter
 				70,255,000
	
32.9 	To complete design, remodel, construct, 
32.10 	furnish, and equip the second phase of the 
32.11 	two-phase project to remodel existing, and to 
32.12 	develop new, residential, program, activity, 
32.13 	and ancillary facilities for the Minnesota 
32.14 	Security Hospital on the upper campus of the 
32.15 	St. Peter Regional Treatment Center. This 
32.16 	appropriation includes money to: demolish, 
32.17 	renovate, and remodel existing space; 
32.18 	construct new space; address fire and life 
32.19 	safety, and other building code deficiencies; 
32.20 	replace or renovate interior finishes; purchase 
32.21 	furnishings, fixtures, and equipment; replace 
32.22 	or renovate the Minnesota Security Hospital 
32.23 	building's HVAC, plumbing, electrical, 
32.24 	security, and life safety systems; tuck-point; 
32.25 	replace windows and doors; design and abate 
32.26 	asbestos and hazardous materials; and 
32.27 	complete site work necessary to support the 
32.28 	programmed use of the facilities on the St. 
32.29 	Peter Regional Treatment Center upper 
32.30 	campus.

32.31
32.32	Subd. 3.Child and Adolescent Behavioral Health 
Services
 				7,530,000
	
32.33 	(a) To predesign, design, construct, furnish, 
32.34 	and equip a new community-based 16-bed 
33.1 	psychiatric hospital facility to house the Child 
33.2 	and Adolescent Behavioral Health Services 
33.3 	(CABHS) program to be located in or near the 
33.4 	city of Willmar. This appropriation includes 
33.5 	funds for land purchase, surveying, predesign 
33.6 	and design fees, construction administration, 
33.7 	project management, site work, site and 
33.8 	building infrastructure, construction, and 
33.9 	furniture, fixtures, and equipment.
33.10 	(b) Notwithstanding any law to the contrary, 
33.11 	the 16 hospital beds licensed to the CABHS's 
33.12 	facility on January 1, 2017, by the Department 
33.13 	of Health, may transfer to this new facility 
33.14 	upon completion, and approved inspection by 
33.15 	the Departments of Health and Human 
33.16 	Services.

33.17
33.18	Subd. 4.Anoka Metro Regional Treatment 
Center - Safety and Security Renovations
 				2,250,000
	
33.19 	To provide security upgrades of a capital 
33.20 	nature at the Anoka Metro Regional Treatment 
33.21 	Center campus, including but not limited to 
33.22 	control centers, electronic monitoring and 
33.23 	perimeter security equipment, new or updated 
33.24 	security fencing, and other building security 
33.25 	renovations. This appropriation includes 
33.26 	money for: predesign, design, furnishing, 
33.27 	fixtures, and equipment; construction of safety 
33.28 	and security improvements to courtyards on 
33.29 	residential treatment units; securely enclosing 
33.30 	the nursing station on Unit G; and installing 
33.31 	a campus-wide closed-circuit television video 
33.32 	security system, a facility-wide personal 
33.33 	duress alarm system, a key control system, 
33.34 	and an electronic access control system.

33.35
33.36	Subd. 5.Hennepin County - Regional Medical 
Examiner's Facility
 				2,680,000
	
34.1 	To the commissioner of human services for a 
34.2 	grant to Hennepin County to design an 
34.3 	approximately 67,000 square foot regional, 
34.4 	state-of-the-art medical examiner's facility. 
34.5 	The facility shall: (1) provide forensic death 
34.6 	investigation and autopsy services for Dakota, 
34.7 	Hennepin, and Scott Counties with the 
34.8 	flexibility to accommodate future partner 
34.9 	counties and agencies; (2) serve as a teaching 
34.10 	facility for the state, on the science of forensic 
34.11 	pathology; and (3) be sited on property located 
34.12 	at 14300 County Road 62 in Minnetonka.

34.13	Subd. 6.Perspectives Family Center
 				600,000
	
34.14 	From the general fund to the commissioner of 
34.15 	human services for a grant to Perspectives, 
34.16 	Inc. to predesign and design the expansion and 
34.17 	renovation of the existing Perspectives Family 
34.18 	Center facility in St. Louis Park. The expanded 
34.19 	and renovated facility must be used to promote 
34.20 	the public welfare by providing any or all of 
34.21 	the following programs and services: (1) 
34.22 	supportive housing programs for homeless 
34.23 	women and their children; (2) mental and 
34.24 	chemical health programs; (3) employment 
34.25 	services; (4) academic, social skills, and 
34.26 	nutritional programs for homeless and at-risk 
34.27 	children; (5) an all-day therapeutic early 
34.28 	childhood development program for homeless 
34.29 	and at-risk children; and (6) a culturally 
34.30 	sensitive safe and nurturing environment for 
34.31 	at-risk children to meet with their 
34.32 	nonresidential parents. This appropriation is 
34.33 	not available until the commissioner of 
34.34 	management and budget has determined that 
34.35 	at least an equal amount has been expended 
34.36 	or committed to the project from nonstate 
35.1 	sources. Nonstate money spent on the project 
35.2 	since May 1, 2015, shall be included in the 
35.3 	determination of nonstate commitments to the 
35.4 	project.

35.5
35.6	Subd. 7.St. Paul - Dorothy Day Opportunity 
Center
 				12,000,000
	
35.7 	To the commissioner of human services for a 
35.8 	grant to the city of St. Paul to predesign, 
35.9 	design, construct, furnish, and equip an 
35.10 	opportunity center to serve as an integrated 
35.11 	one-stop delivery system connecting persons 
35.12 	at risk of becoming homeless, and persons 
35.13 	working to move up and out of homelessness, 
35.14 	and to provide services that improve their 
35.15 	health, income, housing stability, or 
35.16 	well-being, subject to Minnesota Statutes, 
35.17 	section 16A.695. This appropriation may be 
35.18 	used to acquire property for these purposes. 
35.19 	This appropriation is not available until the 
35.20 	commissioner of management and budget has 
35.21 	determined that at least an equal amount has 
35.22 	been committed to the project from nonstate 
35.23 	sources. This appropriation is in addition to 
35.24 	the appropriation in Laws 2014, chapter 294, 
35.25 	article 1, section 18, subdivision 9.

35.26
35.27	Subd. 8.Carver County - Regional Residential 
Crisis Stabilization Clinic
 				1,250,000
	
35.28 	To the commissioner of human services for a 
35.29 	grant to Carver County to design, construct, 
35.30 	furnish, and equip a facility in the city of 
35.31 	Chaska to provide regional residential crisis 
35.32 	stabilization services subject to Minnesota 
35.33 	Statutes, section 16A.695. This appropriation 
35.34 	shall be used for construction of a 12-bed 
35.35 	facility in conjunction with the expansion of 
35.36 	an existing hospital unit in Carver County, to 
36.1 	maximize the space available for more than 
36.2 	12 crisis stabilization beds. The new facility 
36.3 	shall provide acute stabilization for persons 
36.4 	with a primary or secondary mental health 
36.5 	diagnosis in lieu of inpatient psychiatric 
36.6 	hospitalization and must be open to referrals 
36.7 	from a hospital and freestanding emergency 
36.8 	room in Carver County, a critical access 
36.9 	hospital in Sibley County, and a critical access 
36.10 	hospital in Le Sueur County.

36.11	Subd. 9.Minneapolis - The Family Partnership
 				1,600,000
	
36.12 	From the general fund to the commissioner of 
36.13 	human services for a grant to the Family 
36.14 	Partnership in Minneapolis to predesign and 
36.15 	design a facility to provide mental health, early 
36.16 	childhood education, and other services to 
36.17 	support children and families. This 
36.18 	appropriation is not available until at least an 
36.19 	equal amount of money is committed from 
36.20 	nonstate sources.

36.21	Subd. 10.Minneapolis - People's Center
 				2,200,000
	
36.22 	From the general fund to the commissioner of 
36.23 	human services for a grant to the People's 
36.24 	Center in Minneapolis to design, renovate, 
36.25 	improve, construct, and equip a facility that 
36.26 	provides medical, dental, mental health, and 
36.27 	wellness services to all patients, regardless of 
36.28 	their ability to pay. This appropriation is not 
36.29 	available until the commissioner of 
36.30 	management and budget confirms that an 
36.31 	amount sufficient to complete the project has 
36.32 	been committed from nonstate sources.

36.33	Sec. 18. VETERANS AFFAIRS

36.34	Subdivision 1.Total Appropriation
 			$
	12,881,000
	
37.1 	To the commissioner of administration for the 
37.2 	purposes specified in this section.

37.3	Subd. 2.Asset Preservation
 				5,000,000
	
37.4 	For asset preservation improvements and 
37.5 	betterments of a capital nature at the veterans 
37.6 	homes in Minneapolis, Hastings, Fergus Falls, 
37.7 	Silver Bay, and Luverne, to be spent in 
37.8 	accordance with Minnesota Statutes, section 
37.9 	16B.307.

37.10
37.11	Subd. 3.Minneapolis Veterans Home Truss 
Bridge Project
 				7,851,000
	
37.12 	To design, construct, renovate, and equip the 
37.13 	historic truss bridge on the Minneapolis 
37.14 	Veterans Home campus, including asbestos 
37.15 	and hazardous materials abatement and 
37.16 	associated site work.

37.17	Subd. 4.Rice County Veterans Memorial
 				30,000
	
37.18 	For a grant to Rice County to complete the 
37.19 	Rice County Veterans Memorial on the 
37.20 	grounds of the Rice County Court House in 
37.21 	Faribault. Because approximately $345,000 
37.22 	of nonstate money has been spent or 
37.23 	committed to the project before the enactment 
37.24 	of this appropriation, no further nonstate 
37.25 	contribution is required.

37.26	Sec. 19. CORRECTIONS

37.27	Subdivision 1.Total Appropriation
 			$
	39,600,000
	
37.28 	To the commissioner of administration for the 
37.29 	purposes specified in this section.

37.30	Subd. 2.Asset Preservation
 				20,000,000
	
37.31 	For asset preservation improvements and 
37.32 	betterments of a capital nature at Minnesota 
37.33 	correctional facilities statewide, to be spent in 
38.1 	accordance with Minnesota Statutes, section 
38.2 	16B.307.

38.3
38.4	Subd. 3.Minnesota Correctional Facility - St. 
Cloud
 				19,000,000
	
38.5 	To construct and equip a new intake unit and 
38.6 	a loading dock with a secure connection to a 
38.7 	new central warehouse at the St. Cloud 
38.8 	correctional facility.

38.9	Subd. 4.Northeast Regional Corrections Center
 				600,000
	
38.10 	For a grant to the Arrowhead Regional 
38.11 	Corrections Joint Powers Board to renovate, 
38.12 	remodel, and complete other capital 
38.13 	improvements to buildings that support 
38.14 	vocational, educational, and farm work 
38.15 	programming and experiences at the Northeast 
38.16 	Regional Corrections Center. Nonstate 
38.17 	contributions to improvements at the center 
38.18 	made before or after the enactment of this 
38.19 	subdivision are considered to be a sufficient 
38.20 	match and no further nonstate contribution is 
38.21 	required.

38.22	Subd. 5.Unspent Appropriations
 					
38.23 	The unspent portion of an appropriation for a 
38.24 	Department of Corrections project in this 
38.25 	section that is complete, upon written notice 
38.26 	to the commissioner of management and 
38.27 	budget, is available for asset preservation 
38.28 	under Minnesota Statutes, section 16B.307. 
38.29 	Minnesota Statutes, section 16A.642, applies 
38.30 	from the date of the original appropriation to 
38.31 	the unspent amount transferred.

38.32
38.33	Sec. 20. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

38.34	Subdivision 1.Total Appropriation
 			$
	101,402,000
	
39.1 	To the commissioner of employment and 
39.2 	economic development for the purposes 
39.3 	specified in this section.

39.4	Subd. 2.Asset Preservation
 				1,342,000
	
39.5 	For asset preservation improvements and 
39.6 	betterments of a capital nature at the South 
39.7 	Minneapolis Workforce Center, to be spent in 
39.8 	accordance with Minnesota Statutes, section 
39.9 	16B.307.

39.10	Subd. 3.Transportation Economic Development
 				3,500,000
	
39.11 	For grants under Minnesota Statutes, section 
39.12 	116J.436.

39.13
39.14	Subd. 4.Greater Minnesota Business 
Development Public Infrastructure Grants
 				12,000,000
	
39.15 	For grants under Minnesota Statutes, section 
39.16 	116J.431.

39.17
39.18	Subd. 5.Innovative Business Development Public 
Infrastructure Grants
 				1,158,000
	
39.19 	For grants under Minnesota Statutes, section 
39.20 	116J.435.

39.21
39.22	Subd. 6.Chisago County - Law Enforcement 
and Emergency Operations Center
 				3,000,000
	
39.23 	For a grant to Chisago County to predesign, 
39.24 	design, construct, furnish, and equip a 
39.25 	municipal complex that includes a law 
39.26 	enforcement and emergency operations center, 
39.27 	and related facilities and infrastructure, for 
39.28 	interconnection to the county emergency 
39.29 	communications center. This appropriation is 
39.30 	not available until the commissioner has 
39.31 	determined that at least an equal amount has 
39.32 	been committed to the project from nonstate 
39.33 	sources. Amounts expended by Chisago 
39.34 	County for project costs since July 1, 2015, 
39.35 	shall count toward the matching requirement.

40.1	Subd. 7.Duluth - Steam Plant
 				15,000,000
	
40.2 	The commissioner of management and budget 
40.3 	shall determine the balance remaining in the 
40.4 	renewable development account in the special 
40.5 	revenue fund established in 2017 S.F. No. 
40.6 	1456, article 10, section 3, if enacted, after all 
40.7 	appropriations are made from the account in 
40.8 	2017 S.F. No. 1456. Notwithstanding any law 
40.9 	to the contrary, the balance determined by the 
40.10 	commissioner, in an amount not to exceed 
40.11 	$15,000,000, is appropriated to the 
40.12 	commissioner of employment and economic 
40.13 	development in fiscal year 2018 for a grant to 
40.14 	the city of Duluth to upgrade the municipal 
40.15 	district heating facility and systems, including 
40.16 	conversion of the distribution system along 
40.17 	Superior Street from steam with no condensate 
40.18 	return to closed-loop hot water. This 
40.19 	appropriation (1) may be used for one or more 
40.20 	of the project elements or phases: predesign, 
40.21 	design, engineering, renovation, construction, 
40.22 	furnishing, and equipping the facility, systems, 
40.23 	and infrastructure; and (2) is available until 
40.24 	expended.

40.25	Subd. 8.Eagle Bend High School
 				1,500,000
	
40.26 	For a grant to Independent School District No. 
40.27 	786, Bertha-Hewitt, or other independent 
40.28 	school district to which that portion of the 
40.29 	territory of former Independent School District 
40.30 	No. 2759, Eagle Valley, containing the Eagle 
40.31 	Bend school is attached by action of the Todd 
40.32 	County Board, to prepare and develop the 
40.33 	Eagle Bend High School building site, 
40.34 	including demolition of buildings and 
40.35 	infrastructure, to remove life safety hazards 
41.1 	and to facilitate the redevelopment and reuse 
41.2 	of the site. This appropriation does not require 
41.3 	a nonstate contribution.

41.4	Subd. 9.Eagle's Healing Nest
 				500,000
	
41.5 	From the general fund for a grant to Eagle's 
41.6 	Healing Nest in Sauk Centre.

41.7
41.8	Subd. 10.Hennepin County - Hennepin Center 
for the Arts
 				3,000,000
	
41.9 	From the general fund for a grant to Hennepin 
41.10 	County for improvements and betterments of 
41.11 	a capital nature to renovate the historic 
41.12 	Hennepin Center for the Arts. This 
41.13 	appropriation is not available until the 
41.14 	commissioner of management and budget 
41.15 	determines that an amount sufficient to 
41.16 	complete the project has been committed from 
41.17 	nonstate sources.

41.18
41.19	Subd. 11.Hermantown - Arrowhead Regional 
Health and Wellness Center
 				8,000,000
	
41.20 	For a grant to the city of Hermantown to 
41.21 	prepare the middle school site on the 
41.22 	Hermantown School District campus, 
41.23 	including demolition of a portion of the middle 
41.24 	school, and to design, construct a new addition 
41.25 	to the middle school building and renovate the 
41.26 	remaining existing building, furnish, and equip 
41.27 	the facility as the Arrowhead Regional Health 
41.28 	and Wellness Center. The city may enter into 
41.29 	lease or management agreements under 
41.30 	Minnesota Statutes, section 16A.695, for 
41.31 	operation of the center. This appropriation is 
41.32 	not available until at least an equal amount is 
41.33 	committed to the project from nonstate 
41.34 	sources.

41.35
41.36	Subd. 12.LaSalle - Community Center and Fire 
Hall
 				100,000
	
42.1 	For a grant to the city of La Salle for 
42.2 	renovations to the community center and fire 
42.3 	hall in the city of LaSalle, including replacing 
42.4 	and resurfacing the roof and renovating the 
42.5 	interior of the building. This appropriation 
42.6 	may also be used to renovate a furnace room 
42.7 	in the community center and fire hall to 
42.8 	accommodate the city generator and to replace 
42.9 	carpet and tile. No local match is required.

42.10
42.11	Subd. 13.Litchfield - Phase 2 Power Generation 
Improvements
 				4,000,000
	
42.12 	For a grant to the city of Litchfield to design 
42.13 	and construct electrical generation 
42.14 	improvements in the city of Litchfield to 
42.15 	expand the current standby capacity. This 
42.16 	appropriation is not available until the 
42.17 	commissioner of management and budget 
42.18 	determines that at least an equal amount is 
42.19 	committed to the project from nonstate 
42.20 	sources.

42.21
42.22	Subd. 14.Minneapolis - Pioneers and Soldiers 
Cemetery Restoration
 				1,029,000
	
42.23 	For a grant to the city of Minneapolis to 
42.24 	restore the historic steel and limestone pillar 
42.25 	fence along Cedar Avenue and Lake Street, 
42.26 	install a new steel fence and pillars along 21st 
42.27 	Avenue South, and install a waterproofing 
42.28 	system for preservation of the fence and 
42.29 	pillars, at the Pioneer and Soldiers Cemetery. 
42.30 	This appropriation does not require a nonstate 
42.31 	contribution.

42.32	Subd. 15.Minneapolis - Norway House
 				5,000,000
	
42.33 	For a grant to the city of Minneapolis to 
42.34 	acquire land and predesign, design, construct, 
42.35 	furnish, and equip a conference and event 
43.1 	center at 913 East Franklin Avenue and 
43.2 	adjacent property in Minneapolis to celebrate 
43.3 	the culture of Norway and American 
43.4 	Norwegians, subject to Minnesota Statutes, 
43.5 	section 16A.695. This appropriation is not 
43.6 	available until the commissioner of 
43.7 	management and budget determines that an 
43.8 	amount sufficient to complete the project is 
43.9 	committed from nonstate sources.

43.10	Subd. 16.Minneapolis American Indian Center
 				155,000
	
43.11 	From the general fund for a grant to the 
43.12 	Minneapolis American Indian Center to 
43.13 	predesign the renovation of the center on 
43.14 	Franklin Avenue, taking into account and 
43.15 	protecting the significant and unique art and 
43.16 	features of the center.

43.17
43.18	Subd. 17.Mountain Iron - Enterprise Drive 
North
 				400,000
	
43.19 	For a grant to the city of Mountain Iron for its 
43.20 	share of the cost of improvements to 
43.21 	Enterprise Drive North where this road 
43.22 	intersects marked U.S. Highway 169 in 
43.23 	Mountain Iron. This project is due to and will 
43.24 	be done in conjunction with the reconstruction 
43.25 	of marked U.S. Highway 169.

43.26	Subd. 18.Red Wing - River Town Renaissance
 				4,400,000
	
43.27 	For a grant to the city of Red Wing to 
43.28 	complete removal and replacement of 250 
43.29 	linear feet of the harbor retaining wall; to 
43.30 	design, construct, furnish, and equip the  
43.31 	renovation of the historic T.B. Sheldon  
43.32 	Performing Arts Theater; and to design and 
43.33 	construct transient riverboat docking facilities, 
43.34 	levee wall extension, and levee promenade 
43.35 	improvements at Levee Park. This 
44.1 	appropriation is not available until the 
44.2 	commissioner of management and budget  
44.3 	determines that an amount sufficient to 
44.4 	complete the project has been committed from 
44.5 	nonstate sources.

44.6	Subd. 19.St. James - Public Infrastructure
 				5,943,000
	
44.7 	For a grant to the city of St. James. Of this 
44.8 	amount, $2,193,000 is for engineering, 
44.9 	right-of-way acquisition, and reconstruction 
44.10 	of streets, sidewalks, storm water and sanitary 
44.11 	sewer, water mains, lighting, utilities, and 
44.12 	other capital improvements of publicly owned 
44.13 	infrastructure required for the reconstruction 
44.14 	of marked Trunk Highway 4 in the city of St. 
44.15 	James, $1,250,000 is for replacement of the 
44.16 	storm sewer drain that serves St. James Lake 
44.17 	and the entire southern section of the city of 
44.18 	St. James, and $2,500,000 is to design, 
44.19 	engineer, and construct and install larger storm 
44.20 	sewers and a storm water retention pond.

44.21
44.22	Subd. 20.St. Paul - Science Museum of 
Minnesota Building Preservation
 				13,000,000
	
44.23 	For a grant to the city of St. Paul for predesign, 
44.24 	design, and construction work to replace 
44.25 	water-damaged elements of the Science 
44.26 	Museum of Minnesota's exterior envelope and 
44.27 	some resultant interior damage caused by 
44.28 	latent design and construction defects, subject 
44.29 	to Minnesota Statutes, section 16A.695. This 
44.30 	appropriation is not available until the 
44.31 	commissioner of management and budget 
44.32 	determines that an equal amount has been 
44.33 	committed to the project from nonstate 
44.34 	sources. Capital costs paid by the Science 
44.35 	Museum of Minnesota since January 1, 2014, 
45.1 	relating to the water intrusion damage, shall 
45.2 	count towards the match requirement.

45.3
45.4	Subd. 21.St. Paul - Minnesota Museum of 
American Art
 				6,000,000
	
45.5 	For a grant to the St. Paul Port Authority to 
45.6 	design, construct, furnish, and equip new 
45.7 	museum galleries and an art study facility for 
45.8 	the Minnesota Museum of American Art. This 
45.9 	facility provides space to celebrate the legacy 
45.10 	of Minnesota art and artists and is part of the 
45.11 	restoration of the historic Pioneer Endicott 
45.12 	Building, and a part of a multiphase project, 
45.13 	of which only the museum galleries and art 
45.14 	study facility constructed with this 
45.15 	appropriation shall be state bond financed 
45.16 	property subject to Minnesota Statutes, section 
45.17 	16A.695. This appropriation is not available 
45.18 	until the commissioner of management and 
45.19 	budget has determined that:
45.20 	(1) at least an amount equal to this 
45.21 	appropriation has been committed or 
45.22 	previously expended for design, construction, 
45.23 	and furnishing of the adjacent Minnesota 
45.24 	Museum of American Art Center for 
45.25 	Creativity facilities, which are not subject to 
45.26 	Minnesota Statutes, section 16A.695, with 
45.27 	funds from nonstate sources; and
45.28 	(2) sufficient other state and nonstate funds 
45.29 	are available, if funds beyond this 
45.30 	appropriation are required, to complete the 
45.31 	museum galleries and art study facility.
45.32 	Funds invested in the Minnesota Museum of 
45.33 	American Art Center for Creativity facilities 
45.34 	by an investor receiving an assignment of state 
45.35 	historic tax credits as provided in Minnesota 
46.1 	Statutes, section 290.0681, are nonstate funds 
46.2 	for purposes of this requirement. Only 
46.3 	expenditures made after January 1, 2012, shall 
46.4 	qualify for the required match. Due to the 
46.5 	integrated nature of the overall development, 
46.6 	public bidding shall not be required.

46.7	Subd. 22.Virginia - Miner's Memorial Building
 				12,000,000
	
46.8 	For a grant to the city of Virginia for phase I 
46.9 	of the renovation and reconstruction of the 
46.10 	Miner's Memorial Building in Virginia. This 
46.11 	appropriation is not available until the 
46.12 	commissioner of management and budget 
46.13 	determines an amount has been committed to 
46.14 	complete the project from nonstate sources.

46.15	Subd. 23.Waseca - Tink Larson Field
 				375,000
	
46.16 	For a grant to the city of Waseca for 
46.17 	construction of a new grandstand and athletic 
46.18 	facilities at Tink Larson Field, due to losses 
46.19 	incurred during a 2016 fire. Money raised for 
46.20 	this project and insurance proceeds received 
46.21 	for the fire loss satisfy the local match 
46.22 	requirement.

46.23	Sec. 21. PUBLIC FACILITIES AUTHORITY

46.24	Subdivision 1.Total Appropriation
 			$
	116,888,000
	
46.25 	To the Public Facilities Authority for the 
46.26 	purposes specified in this section. The Public 
46.27 	Facilities Authority may use the funds in this 
46.28 	section or other available funds to amend 
46.29 	project financing agreements awarded after 
46.30 	July 1, 2016, based on program changes to 
46.31 	Minnesota Statutes, sections 446A.072 and 
46.32 	446A.073, in article 2 of this act.

46.33	Subd. 2.State Match for Federal Grants
 				17,000,000
	
47.1 	To match federal grants for the clean water 
47.2 	revolving fund under Minnesota Statutes, 
47.3 	section 446A.07, and the drinking water 
47.4 	revolving fund under Minnesota Statutes, 
47.5 	section 446A.081. This appropriation must be 
47.6 	used for qualified capital projects.

47.7	Subd. 3.Water Infrastructure Funding Program
 				55,000,000
	
47.8 	(a) For grants to eligible municipalities under 
47.9 	the water infrastructure funding program under 
47.10 	Minnesota Statutes, section 446A.072.
47.11 	(b) $40,000,000 is for wastewater projects 
47.12 	listed on the Pollution Control Agency's 
47.13 	project priority list in the fundable range under 
47.14 	the clean water revolving fund program.
47.15 	(c) $15,000,000 is for drinking water projects 
47.16 	listed on the commissioner of health's project 
47.17 	priority list in the fundable range under the 
47.18 	drinking water revolving fund program.
47.19 	(d) After all eligible projects under paragraph 
47.20 	(b) or (c) have been funded, the Public 
47.21 	Facilities Authority may transfer any 
47.22 	remaining, uncommitted money to eligible 
47.23 	projects under a program defined in paragraph 
47.24 	(b) or (c) based on that program's project 
47.25 	priority list.
47.26 	(e) Notwithstanding Minnesota Statutes, 
47.27 	section 446A.072, subdivision 5a, paragraph 
47.28 	(b), the Western Lake Superior Sanitary 
47.29 	District is eligible for a grant to predesign, 
47.30 	design, construct, furnish, and equip a 
47.31 	combined heat and power system.

47.32
47.33	Subd. 4.Point Source Implementation Grants 
Program
 				33,737,000
	
48.1 	For grants to eligible municipalities under the 
48.2 	point source implementation grants program 
48.3 	under Minnesota Statutes, section 446A.073. 
48.4 	This appropriation must be used for qualified 
48.5 	capital projects.
48.6 	Notwithstanding the limitations on grants in 
48.7 	Minnesota Statutes, section 446A.073, 
48.8 	subdivision 1, the city of Detroit Lakes is 
48.9 	eligible to receive a grant for up to 80 percent 
48.10 	of eligible project costs of the city's 
48.11 	wastewater treatment facility phosphorus 
48.12 	removal project.

48.13
48.14	Subd. 5.Big Lake Area Sanitary District - Sewer 
System and Force Main
 				1,200,000
	
48.15 	For a grant to the Big Lake Area Sanitary 
48.16 	District to construct a pressure sewer system 
48.17 	and force main to convey sewage to the 
48.18 	Western Lake Superior Sanitary District 
48.19 	connection in the city of Cloquet. This 
48.20 	appropriation is not available until the 
48.21 	commissioner of management and budget 
48.22 	determines that an equal amount is committed 
48.23 	from nonstate sources. This appropriation is 
48.24 	in addition to the appropriation in Laws 2014, 
48.25 	chapter 294, article 1, section 22, subdivision 
48.26 	4.

48.27	Subd. 6.Clearbrook - Infrastructure Restoration
 				850,000
	
48.28 	For a grant to the city of Clearbrook to 
48.29 	predesign, design, engineer, and construct 
48.30 	public infrastructure improvements 
48.31 	necessitated by the city's water and wastewater 
48.32 	improvements, including street, curb, and 
48.33 	boulevard restoration. This appropriation does 
48.34 	not require a nonstate contribution.

49.1
49.2	Subd. 7.Clear Lake and Clearwater - 
Wastewater Treatment Facility
 				300,000
	
49.3 	For a grant to the Clear Lake-Clearwater 
49.4 	Sewer Authority to remove and replace the 
49.5 	existing wastewater treatment facility. This 
49.6 	project is intended to prevent the discharge of 
49.7 	phosphorus into the Mississippi River. This 
49.8 	appropriation is not available until the 
49.9 	commissioner of management and budget 
49.10 	determines that at least $200,000 is committed 
49.11 	to the project from nonstate sources and the 
49.12 	authority has applied for at least two grants to 
49.13 	offset the cost. Any money received by the 
49.14 	authority from grants must be returned to the 
49.15 	general fund and are appropriated to the Public 
49.16 	Facilities Authority for the purposes specified 
49.17 	in Minnesota Statutes, section 446A.072, and 
49.18 	subject to Minnesota Statutes, section 
49.19 	16A.642, from the date of the original 
49.20 	appropriation.

49.21
49.22	Subd. 8.Dennison - Sewage Treatment System 
Improvements
 				726,000
	
49.23 	For a grant to the city of Dennison to 
49.24 	predesign, design, and construct a new lift 
49.25 	station and make sewage pond improvements. 
49.26 	This appropriation does not require a nonstate 
49.27 	contribution.

49.28
49.29	Subd. 9.East Grand Forks - Wastewater 
Interconnection Infrastructure
 				5,300,000
	
49.30 	For a grant to the city of East Grand Forks to 
49.31 	design and construct wastewater infrastructure 
49.32 	improvements interconnecting the wastewater 
49.33 	system of East Grand Forks to the wastewater 
49.34 	treatment system in Grand Forks, North 
49.35 	Dakota, and to design and construct the 
49.36 	decommissioning of the wastewater 
50.1 	stabilization ponds in East Grand Forks, 
50.2 	Minnesota. This appropriation may not be used 
50.3 	for improvements outside the state. This 
50.4 	appropriation is in addition to grants under 
50.5 	Minnesota Statutes, section 446A.072. A 
50.6 	nonstate match is not required.

50.7
50.8	Subd. 10.Lilydale - Highway 13 Storm Water 
Conveyance
 				275,000
	
50.9 	From the general fund for a grant to the city 
50.10 	of Lilydale to design, acquire, construct, and 
50.11 	install a storm water sewer and drop structure 
50.12 	along Trunk Highway 13 in Lilydale that will 
50.13 	be large enough to effectively collect water 
50.14 	from springs and storm water runoff from 
50.15 	above the road and safely convey the water to 
50.16 	below the bluff. The city must coordinate this 
50.17 	project with the Department of 
50.18 	Transportation's Trunk Highway 13 project. 
50.19 	The appropriation and project also include 
50.20 	capital repairs and improvements to existing 
50.21 	drainage structures along the Big Rivers 
50.22 	Regional Trail at the base of the bluff. This 
50.23 	appropriation may be used in part or in whole 
50.24 	to reimburse the city for project costs already 
50.25 	paid for and does not require a nonstate 
50.26 	contribution.

50.27
50.28	Subd. 11.Koochiching County - Voyageurs 
National Park Clean Water Project
 				2,000,000
	
50.29 	(a) For a grant to Koochiching County to 
50.30 	acquire land or interests in land, and to design, 
50.31 	engineer, construct, and equip sanitary sewage 
50.32 	systems and facilities to implement a portion 
50.33 	or portions of the Voyageurs National Park 
50.34 	clean water project comprehensive plan. This 
50.35 	appropriation is available after the 
50.36 	commissioner of management and budget 
51.1 	determines that $4,500,000 is committed from 
51.2 	nonstate sources.
51.3 	(b) This appropriation is in addition to the 
51.4 	appropriation in Laws 2014, chapter 294, 
51.5 	article 1, section 22, subdivision 7. 
51.6 	Notwithstanding the match requirement in 
51.7 	Laws 2014, chapter 294, article 1, section 22, 
51.8 	subdivision 7, the nonstate match required for 
51.9 	this appropriation and the 2014 appropriation 
51.10 	for a grant to Koochiching County is 25 
51.11 	percent of the state grant amounts. Any money 
51.12 	remaining from this appropriation after 
51.13 	completion of the projects in paragraph (a) is 
51.14 	available for grants to Koochiching or St. 
51.15 	Louis County to be used for other capital 
51.16 	projects described in the comprehensive plan 
51.17 	and as determined by the Voyageurs National 
51.18 	Park Clean Water Joint Powers Board.

51.19
51.20	Subd. 12.Oronoco - Wastewater Collection and 
Treatment Facilities
 				500,000
	
51.21 	From the general fund for a grant to the city 
51.22 	of Oronoco to commission a study to evaluate 
51.23 	options for solving the wastewater 
51.24 	infrastructure needs for the region including 
51.25 	the city of Oronoco, the city of Pine Island, or 
51.26 	the city of Rochester. This appropriation does 
51.27 	not require a nonstate match.

51.28
51.29	Sec. 22. MINNESOTA HOUSING FINANCE 
AGENCY
 			$
	10,000,000
	
51.30 	For transfer to the housing development fund 
51.31 	to finance the costs of rehabilitation to 
51.32 	preserve public housing under Minnesota 
51.33 	Statutes, section 462A.202, subdivision 3a. 
51.34 	For purposes of this section, "public housing" 
51.35 	means housing for low-income persons and 
52.1 	households financed by the federal 
52.2 	government and owned and operated by the 
52.3 	public housing authorities and agencies formed 
52.4 	by cities and counties. Public housing 
52.5 	authorities receiving a public housing 
52.6 	assessment composite score of 80 or above or 
52.7 	an equivalent designation are eligible to 
52.8 	receive funding. Priority must be given to 
52.9 	proposals that maximize federal or local 
52.10 	resources to finance the capital costs. The 
52.11 	priority in Minnesota Statutes, section 
52.12 	462A.202, subdivision 3a, for projects to 
52.13 	increase the supply of affordable housing and 
52.14 	the restrictions of Minnesota Statutes, section 
52.15 	462A.202, subdivision 7, do not apply to this 
52.16 	appropriation.

52.17
52.18	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

52.19	Subdivision 1.Total Appropriation
 			$
	6,500,000
	
52.20 	To the Minnesota Historical Society for the 
52.21 	purposes specified in this section.

52.22	Subd. 2.Historic Sites Asset Preservation
 				2,500,000
	
52.23 	For capital improvements and betterments at 
52.24 	state historic sites, buildings, landscaping at 
52.25 	historic buildings, exhibits, markers, and 
52.26 	monuments, to be spent in accordance with 
52.27 	Minnesota Statutes, section 16B.307. The 
52.28 	society shall determine project priorities as 
52.29 	appropriate based on need.

52.30	Subd. 3.Historic Fort Snelling
 				4,000,000
	
52.31 	To design facilities to support visitor services 
52.32 	and history programs at Historic Fort Snelling.

52.33	Sec. 24. BOND SALE EXPENSES
 			$
	1,039,000
	
53.1 	To the commissioner of management and 
53.2 	budget for bond sale expenses under 
53.3 	Minnesota Statutes, section 16A.641, 
53.4 	subdivision 8.

53.5 	Sec. 25. BOND SALE AUTHORIZATION.
 53.6 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
53.7 	the bond proceeds fund, the commissioner of management and budget shall sell and issue 
53.8 	bonds of the state in an amount up to $873,366,000 in the manner, upon the terms, and with 
53.9 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
53.10 	Minnesota Constitution, article XI, sections 4 to 7.
53.11 		Subd. 2.Transportation fund. To provide the money appropriated in this act from the 
53.12 	state transportation fund, the commissioner of management and budget shall sell and issue 
53.13 	bonds of the state in an amount up to $165,144,000 in the manner, upon the terms, and with 
53.14 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
53.15 	Minnesota Constitution, article XI, sections 4 to 7.

53.16 	Sec. 26. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
 53.17 	(a) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
53.18 	1990, chapter 610, are canceled and the bond sale authorization in Laws 1990, chapter 610, 
53.19 	article 1, section 30, subdivision 1, as amended, is reduced by $3,129.
53.20 	(b) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
53.21 	1994, chapter 643, are canceled and the bond sale authorization in Laws 1994, chapter 643, 
53.22 	section 31, subdivision 1, as amended, is reduced by $24,480.
53.23 	(c) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
53.24 	1997, Second Special Session chapter 2, are canceled and the bond sale authorization in 
53.25 	Laws 1997, Second Special Session chapter 2, section 12, as amended, is reduced by $96,992.
53.26 	(d) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
53.27 	1999, chapter 240, are canceled and the bond sale authorization in Laws 1999, chapter 240, 
53.28 	article 1, section 13, subdivision 1, as amended, is reduced by $212,472.
53.29 	(e) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
53.30 	2000, chapter 492, are canceled and the bond sale authorization in Laws 2000, chapter 492, 
53.31 	article 1, section 26, subdivision 1, as amended, is reduced by $7,933,538.
54.1 	(f) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
54.2 	2002, chapter 393, are canceled and the bond sale authorization in Laws 2002, chapter 393, 
54.3 	section 30, subdivision 1, as amended, is reduced by $188,471.
54.4 	(g) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
54.5 	2002, First Special Session chapter 1, are canceled and the bond sale authorization in Laws 
54.6 	2002, First Special Session chapter 1, section 9, subdivision 1, is reduced by $217,959.
54.7 	(h) The remaining uncommitted appropriations from the trunk highway bond proceeds 
54.8 	fund in Laws 2003, First Special Session chapter 19, article 3, are canceled and the bond 
54.9 	sale authorization in Laws 2003, First Special Session chapter 19, article 3, section 2, is 
54.10 	reduced by $201,530.
54.11 	(i) The remaining uncommitted appropriations from the trunk highway bond proceeds 
54.12 	fund in Laws 2003, First Special Session chapter 19, article 4, are canceled and the bond 
54.13 	sale authorization in Laws 2003, First Special Session chapter 19, article 4, section 4, is 
54.14 	reduced by $326,534.
54.15 	(j) The remaining uncommitted appropriations from the bond proceeds fund in Laws 
54.16 	2005, chapter 20, are canceled and the bond sale authorization in Laws 2005, chapter 20, 
54.17 	article 1, section 28, subdivision 1, as amended, is reduced by $3,366,628.
54.18 	(k) The $300,000 appropriation from the general fund in Laws 2015, First Special Session 
54.19 	chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.
54.20 	(l) The uncommitted and unobligated amount of the appropriation from the bond proceeds 
54.21 	fund in Laws 2014, chapter 294, article 1, section 18, subdivision 8, for the Arrowhead 
54.22 	Economic Opportunity Agency and Range Mental Health Center, estimated to be $1,200,000, 
54.23 	is canceled, and the bond sale authorization in Laws 2014, chapter 294, article 1, section 
54.24 	26, subdivision 1, is reduced by the same amount.
54.25 	(m) The amounts of the general obligation bond proceeds appropriations, general fund 
54.26 	appropriations, and trunk highway bond proceeds appropriations listed in the cancellation 
54.27 	report submitted to the legislature in January 2017, pursuant to Minnesota Statutes, section 
54.28 	16A.642, are canceled on the effective date of this section, with the exception of the 
54.29 	cancellation of Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 
54.30 	2013, chapter 136, section 13, that is reauthorized in article 2, section 24, of this act. The 
54.31 	corresponding bond sale authorizations are reduced by the same amounts. If an appropriation 
54.32 	in this section is canceled more than once, the cancellation must be given effect only once.

55.1 	Sec. 27. BOND SALE SCHEDULE.
 55.2 	The commissioner of management and budget shall schedule the sale of state general 
55.3 	obligation bonds so that, during the biennium ending June 30, 2019, no more than 
55.4 	$1,555,301,000 will need to be transferred from the general fund to the state bond fund to 
55.5 	pay principal and interest due and to become due on outstanding state general obligation 
55.6 	bonds. During the biennium, before each sale of state general obligation bonds, the 
55.7 	commissioner of management and budget shall calculate the amount of debt service payments 
55.8 	needed on bonds previously issued and shall estimate the amount of debt service payments 
55.9 	that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the 
55.10 	amount of bonds scheduled to be sold so as to remain within the limit set by this section. 
55.11 	The amount needed to make the debt service payments is appropriated from the general 
55.12 	fund as provided in Minnesota Statutes, section 16A.641.

55.13 	Sec. 28. EFFECTIVE DATE.
 55.14 	Except as otherwise provided, this article is effective the day following final enactment.

55.15 	ARTICLE 2
55.16 	MISCELLANEOUS

55.17 	Section 1. Minnesota Statutes 2016, section 15B.32, subdivision 4, is amended to read:
55.18 		Subd. 4.Officers and meetings. (a) The governor is the chair of the commission. The 
55.19 	lieutenant governor is the vice-chair of the commission and may act as the chair of the 
55.20 	commission in the absence of the governor. The governor may designate a staff member to 
55.21 	attend commission meetings and vote on the governor's behalf in the absence of the governor.
55.22 	(b) The commission shall meet at least quarterly annually and at other times at the call 
55.23 	of the chair. Meetings of the commission are subject to chapter 13D.

55.24 	Sec. 2. Minnesota Statutes 2016, section 16A.967, is amended to read:
55.25 	16A.967 LEWIS AND CLARK APPROPRIATION BONDS.
55.26 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
55.27 	(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of 
55.28 	the state payable during a biennium from one or more of the following sources:
56.1 	(1) money appropriated by law from the general fund in any biennium for debt service 
56.2 	due with respect to obligations described in subdivision 2, paragraph (c)subdivisions 2a 
56.3 	and 2b;
56.4 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c)
56.5 	subdivisions 2a and 2b;
56.6 	(3) payments received for that purpose under agreements and ancillary arrangements 
56.7 	described in subdivision 2, paragraph (e) (d); and
56.8 	(4) investment earnings on amounts in clauses (1) to (3).
56.9 	(c) "Debt service" means the amount payable in any biennium of principal, premium, if 
56.10 	any, and interest on appropriation bonds.
56.11 		Subd. 2.Authorization to issue appropriation bonds. (a) Subject to the limitations of 
56.12 	this subdivision, the commissioner may sell and issue appropriation bonds of the state under 
56.13 	this section for public purposes as provided by law, including, in particular, the financing 
56.14 	of the land acquisition, design, engineering, and construction of facilities and infrastructure 
56.15 	necessary to complete the next phase of the Lewis and Clark Regional Water System project, 
56.16 	including completion of the pipeline to Magnolia, extension of the project to the 
56.17 	Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design, 
56.18 	and easement acquisition for the final phase of the project to Worthington. No bonds shall 
56.19 	be sold until the commissioner determines that a nonstate match of at least $9,000,000 is 
56.20 	committed to this project phase. Grant agreements entered into under this section must 
56.21 	provide for reimbursement to the state from any federal money provided for the project, 
56.22 	consistent with the Lewis and Clark Regional Water System, Inc., agreement.
56.23 	(b) The appropriation bonds may be issued and sold only after the commissioner 
56.24 	determines that the construction and administration for work done on the project will comply 
56.25 	with (1) all federal requirements and regulations associated with the Lewis and Clark Rural 
56.26 	Water System Act of 2000, and (2) the cooperative agreement between the United States 
56.27 	Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds 
56.28 	of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond 
56.29 	proceeds fund in the state treasury. All income from investment of the bond proceeds, as 
56.30 	estimated by the commissioner, is appropriated to the commissioner for the payment of 
56.31 	principal and interest on the appropriation bonds.
56.32 	(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the 
56.33 	commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of 
56.34 	costs of issuance, for the purposes as provided under paragraph (a), and pay debt service 
57.1 	including capitalized interest, costs of issuance, costs of credit enhancement, or make 
57.2 	payments under other agreements entered into under paragraph (e).
57.3 	(d) (c) Appropriation bonds may be issued in one or more issues or series on the terms 
57.4 	and conditions the commissioner determines to be in the best interests of the state, but the 
57.5 	term on any series of appropriation bonds may not exceed 25 years. The appropriation bonds 
57.6 	of each issue and series thereof shall be dated and bear interest, and may be includable in 
57.7 	or excludable from the gross income of the owners for federal income tax purposes.
57.8 	(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
57.9 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner may 
57.10 	enter into agreements and ancillary arrangements relating to the appropriation bonds, 
57.11 	including but not limited to trust indentures, grant agreements, lease or use agreements, 
57.12 	operating agreements, management agreements, liquidity facilities, remarketing or dealer 
57.13 	agreements, letter of credit agreements, insurance policies, guaranty agreements, 
57.14 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
57.15 	payments made or received according to the agreement or ancillary arrangement shall be 
57.16 	made from or deposited as provided in the agreement or ancillary arrangement. The 
57.17 	determination of the commissioner included in an interest exchange agreement that the 
57.18 	agreement relates to an appropriation bond shall be conclusive.
57.19 	(f) (e) The commissioner may enter into written agreements or contracts relating to the 
57.20 	continuing disclosure of information necessary to comply with or facilitate the issuance of 
57.21 	appropriation bonds in accordance with federal securities laws, rules, and regulations, 
57.22 	including Securities and Exchange Commission rules and regulations in Code of Federal 
57.23 	Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants 
57.24 	with purchasers and holders of appropriation bonds set forth in the order or resolution 
57.25 	authorizing the issuance of the appropriation bonds, or a separate document authorized by 
57.26 	the order or resolution.
57.27 	(g) (f) The appropriation bonds are not subject to chapter 16C.
57.28 		Subd. 2a.Project authorization. Appropriation bonds may be sold and issued in amounts 
57.29 	that, in the opinion of the commissioner, are necessary to provide sufficient money to the 
57.30 	Public Facilities Authority under subdivision 7, paragraph (a), not to exceed $19,000,000 
57.31 	net of costs of issuance, for the purposes as provided under this subdivision, and pay debt 
57.32 	service including capitalized interest, costs of issuance, costs of credit enhancement, or 
57.33 	make payments under other agreements entered into under subdivision 2, paragraph (d). 
57.34 	The bonds authorized by this subdivision are for the purposes of financing the land 
58.1 	acquisition, design, engineering, and construction of facilities and infrastructure necessary 
58.2 	to complete Phase 2 of the Lewis and Clark Regional Water System project, including 
58.3 	completion of the pipeline to Magnolia; extension of the project to the Lincoln-Pipestone 
58.4 	Rural Water System connection near Adrian; engineering, design, and easement acquisition 
58.5 	for the final phase of the project to Worthington; and to begin and proceed with Phase 3, 
58.6 	described in subdivision 2b. No bonds shall be sold under this subdivision until the 
58.7 	commissioner determines that a nonstate match of at least $9,000,000 is committed to this 
58.8 	project phase. Upon certification by the Lewis and Clark Joint Powers Board that the bond 
58.9 	sale authorization provided by this subdivision has fully met the needs of Phase 2 of the 
58.10 	project, and to the extent there is additional authorization remaining, this authorization is 
58.11 	also available for the purposes of and on the same conditions as subdivision 2b.
58.12 		Subd. 2b.Additional project authorization. Appropriation bonds may be sold and 
58.13 	issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient 
58.14 	money to the Public Facilities Authority under subdivision 7, paragraph (b), not to exceed 
58.15 	$3,500,000 net of costs of issuance, for the purposes as provided under this subdivision, 
58.16 	and pay debt service including capitalized interest, costs of issuance, costs of credit 
58.17 	enhancement, or make payments under other agreements entered into under subdivision 2, 
58.18 	paragraph (d). The bonds authorized by this subdivision are for the purposes of financing 
58.19 	the land acquisition, design, engineering, and construction of facilities and infrastructure 
58.20 	necessary to complete Phase 3 of the Lewis and Clark Regional Water System project, 
58.21 	including extension of the project from the Lincoln-Pipestone Rural Water System connection 
58.22 	near Adrian to Worthington, construction of a reservoir in Nobles County and a meter 
58.23 	building in Worthington, and acquisition and installation of a supervisory control and data 
58.24 	acquisition (SCADA) system. No bonds shall be sold under this subdivision until the 
58.25 	commissioner determines that a nonstate match of at least $9,000,000 is committed to the 
58.26 	final phase of the project.
58.27 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form of bonds, 
58.28 	notes, or other similar instruments, and in the manner provided in section 16A.672. In the 
58.29 	event that any provision of section 16A.672 conflicts with this section, this section shall 
58.30 	control.
58.31 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
58.32 	established in subdivision 6.
58.33 	(c) Appropriation bonds may be sold at either public or private sale upon such terms as 
58.34 	the commissioner shall determine are not inconsistent with this section and may be sold at 
58.35 	any price or percentage of par value. Any bid received may be rejected.
59.1 	(d) Appropriation bonds must bear interest at a fixed or variable rate.
59.2 	(e) Notwithstanding any other law, appropriation bonds issued under this section shall 
59.3 	be fully negotiable.
59.4 		Subd. 4.Refunding bonds. The commissioner may issue appropriation bonds for the 
59.5 	purpose of refunding any appropriation bonds then outstanding, including the payment of 
59.6 	any redemption premiums on the bonds, any interest accrued or to accrue to the redemption 
59.7 	date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any 
59.8 	refunding bonds may, in the discretion of the commissioner, be applied to the purchase or 
59.9 	payment at maturity of the appropriation bonds to be refunded, to the redemption of the 
59.10 	outstanding appropriation bonds on any redemption date, or to pay interest on the refunding 
59.11 	bonds and may, pending application, be placed in escrow to be applied to the purchase, 
59.12 	payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be 
59.13 	invested and reinvested in obligations that are authorized investments under section 11A.24. 
59.14 	The income earned or realized on the investment may also be applied to the payment of the 
59.15 	appropriation bonds to be refunded or interest or premiums on the refunded appropriation 
59.16 	bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been 
59.17 	fully satisfied, any balance of the proceeds and any investment income may be returned to 
59.18 	the general fund or, if applicable, the special appropriation Lewis and Clark bond proceeds 
59.19 	fund for use in any lawful manner. All refunding bonds issued under this subdivision must 
59.20 	be prepared, executed, delivered, and secured by appropriations in the same manner as the 
59.21 	appropriation bonds to be refunded.
59.22 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities may 
59.23 	legally invest any sinking funds, money, or other funds belonging to them or under their 
59.24 	control in any appropriation bonds issued under this section:
59.25 	(1) the state, the investment board, public officers, municipal corporations, political 
59.26 	subdivisions, and public bodies;
59.27 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
59.28 	savings banks and institutions, investment companies, insurance companies, insurance 
59.29 	associations, and other persons carrying on a banking or insurance business; and
59.30 	(3) personal representatives, guardians, trustees, and other fiduciaries.
59.31 		Subd. 6.No full faith and credit; state not required to make appropriations. The 
59.32 	appropriation bonds are not public debt of the state, and the full faith, credit, and taxing 
59.33 	powers of the state are not pledged to the payment of the appropriation bonds or to any 
59.34 	payment that the state agrees to make under this section. Appropriation bonds shall not be 
60.1 	obligations paid directly, in whole or in part, from a tax of statewide application on any 
60.2 	class of property, income, transaction, or privilege. Appropriation bonds shall be payable 
60.3 	in each fiscal year only from amounts that the legislature may appropriate for debt service 
60.4 	for any fiscal year, provided that nothing in this section shall be construed to require the 
60.5 	state to appropriate money sufficient to make debt service payments with respect to the 
60.6 	appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no 
60.7 	longer be outstanding on the earlier of (1) the first day of a fiscal year for which the 
60.8 	legislature shall not have appropriated amounts sufficient for debt service, or (2) the date 
60.9 	of final payment of the principal of and interest on the appropriation bonds.
60.10 		Subd. 7.Appropriation of proceeds. (a) The proceeds of appropriation bonds issued 
60.11 	under subdivision 2a and interest credited to the special appropriation Lewis and Clark bond 
60.12 	proceeds fund are appropriated as follows:
60.13 	(1) to the commissioner Public Facilities Authority for a grant to the Lewis and Clark 
60.14 	Joint Powers Board for payment of capital expenses for the purposes provided by as specified 
60.15 	in subdivision 2, paragraph (a), 2a; and
60.16 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
60.17 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and 
60.18 	payments under any agreements entered into under subdivision 2, paragraph (e) (d), each 
60.19 	as permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise 
60.20 	provided for the public purposes provided by subdivision 2, paragraph (a).
60.21 	(b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited 
60.22 	to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:
60.23 	(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers 
60.24 	Board for payment of capital expenses as specified in subdivision 2b; and
60.25 	(2) to the commissioner for debt service on the bonds including capitalized interest, 
60.26 	nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and 
60.27 	payments under any agreements entered into under subdivision 2, paragraph (d), each as 
60.28 	permitted by state and federal law.
60.29 		Subd. 8.Appropriation for debt service and other purposes. (a) An amount, up to 
60.30 	$1,351,000 needed to pay principal and interest on appropriation bonds issued under this 
60.31 	section subdivision 2a is appropriated each fiscal year from the general fund to the 
60.32 	commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
60.33 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
61.1 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
61.2 	appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.
61.3 	(b) An amount up to $265,000 needed to pay principal and interest on appropriation 
61.4 	bonds issued under subdivision 2b is appropriated each fiscal year from the general fund 
61.5 	to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, 
61.6 	otherwise pursuant to subdivision 6, for deposit into the bond payments account established 
61.7 	for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The 
61.8 	appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.
61.9 		Subd. 9.Waiver of immunity. The waiver of immunity by the state provided for by 
61.10 	section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary 
61.11 	contracts to which the commissioner is a party.

61.12 	Sec. 3. [16C.054] ACCOMMODATION FOR HARD-OF-HEARING IN 
61.13 	STATE-FUNDED CAPITAL PROJECTS.
61.14 		Subdivision 1.Definition. For purposes of this section, "public gathering space" means 
61.15 	a space that is constructed or renovated as part of the project: (1) that accommodates and 
61.16 	is intended to be used for gatherings of 15 or more people; and (2) in which audible 
61.17 	communications are integral to a use of the space.
61.18 		Subd. 2.Accommodation for hard-of-hearing in state-funded capital projects. No 
61.19 	commissioner or agency head may approve a contract or grant state funds for a capital 
61.20 	improvement project to construct or renovate a public gathering space in a building unless:
61.21 	(1) the project includes equipping the public gathering space, if the public gathering 
61.22 	space has or will have a permanent audio-amplification system, with audio-induction loops 
61.23 	to provide an electromagnetic signal for hearing aids and cochlear implants; and
61.24 	(2) the project includes meeting the American National Standards Institute Acoustical 
61.25 	Performance Criteria, Design Requirements and Guidelines for Schools on maximum 
61.26 	background noise level and reverberation times in the public gathering space.
61.27 		Subd. 3.Exemption. A commissioner or agency head may approve a contract or grant 
61.28 	state funds for a capital improvement project to construct or renovate a building that does 
61.29 	not meet a requirement of subdivision 2, when the commissioner or agency head determines 
61.30 	that meeting that requirement is not feasible, is in conflict with other requirements in law, 
61.31 	is in conflict with other project requirements, or that costs outweigh the benefits. The 
61.32 	commissioner must consult with the Commission of Deaf, Deafblind, and Hard-of-Hearing 
61.33 	Minnesotans before making the determination.
62.1 		Subd. 4.Exemption reports. A commissioner or agency head who determines a contract 
62.2 	is exempt under subdivision 3 must report the exemption to the Commission of Deaf, 
62.3 	Deafblind, and Hard-of-Hearing Minnesotans within three months of making the 
62.4 	determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing 
62.5 	Minnesotans shall submit a report to the chairs and ranking minority members of the 
62.6 	committees in the house of representatives and senate with jurisdiction over state contracting 
62.7 	by January 30 of even-numbered years beginning in 2020 identifying each exemption 
62.8 	reported in the previous two calendar years.

62.9 	EFFECTIVE DATE. (a) This section is effective the day following final enactment, 
62.10 	and, except as provided in paragraph (b), applies to any project funded with an appropriation 
62.11 	enacted after January 1, 2017.
62.12 	(b) This section does not apply to a project that has completed schematic design on the 
62.13 	effective date of this section, but the commissioner and agency heads are encouraged to 
62.14 	comply with it.

62.15 	Sec. 4. Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:
62.16 		Subd. 2.Standards. (a) An appropriation for asset preservation may be used only for a 
62.17 	capital expenditure on a capital asset previously owned by the state, within the meaning of 
62.18 	generally accepted accounting principles as applied to public expenditures. The commissioner 
62.19 	of natural resources will consult with the commissioner of management and budget to the 
62.20 	extent necessary to ensure this and will furnish the commissioner of management and budget 
62.21 	a list of projects to be financed from the account in order of their priority. The legislature 
62.22 	assumes that many projects for preservation and replacement of portions of existing capital 
62.23 	assets will constitute betterments and capital improvements within the meaning of the 
62.24 	Constitution and capital expenditures under generally accepted accounting principles, and 
62.25 	will be financed more efficiently and economically under this section than by direct 
62.26 	appropriations for specific projects.
62.27 	(b) An appropriation for asset preservation must not be used to acquire land or to acquire 
62.28 	or construct buildings or other facilities.
62.29 	(c) Capital budget expenditures for natural resource asset preservation and replacement 
62.30 	projects must be for one or more of the following types of capital projects that support the 
62.31 	existing programmatic mission of the department: code compliance including health and 
62.32 	safety, Americans with Disabilities Act requirements, hazardous material abatement, access 
62.33 	improvement, or air quality improvement; building energy efficiency improvements using 
62.34 	current best practices; building or infrastructure repairs necessary to preserve the interior 
63.1 	and exterior of existing buildings; projects to remove life safety hazards such as building 
63.2 	code violations or structural defects; or renovation of other existing improvements to land, 
63.3 	including but not limited to trails and bridges.
63.4 	(d) Up to ten percent of an appropriation awarded under this section may be used for 
63.5 	design costs for projects eligible to be funded from this account in anticipation of future 
63.6 	funding from the account.

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

63.27 	Sec. 6. Minnesota Statutes 2016, section 116J.8738, subdivision 2, is amended to read:
63.28 		Subd. 2.Qualified business. (a) A business is a qualified business if it satisfies the 
63.29 	requirement of this paragraph and is not disqualified under the provisions of paragraph (b). 
63.30 	To qualify, the business must:
63.31 	(1) have operated its trade or business in a city or cities in greater Minnesota for at least 
63.32 	one year before applying under subdivision 3;
64.1 	(2) pay or agree to pay in the future each employee compensation, including benefits 
64.2 	not mandated by law, that on an annualized basis equal at least 120 percent of the federal 
64.3 	poverty level for a family of four;
64.4 	(3) plan and agree to expand its employment in one or more cities in greater Minnesota 
64.5 	by the minimum number of employees required under subdivision 3, paragraph (c); and
64.6 	(4) have received certification from the commissioner under subdivision 3 that it is a 
64.7 	qualified business.
64.8 	(b) A business is not a qualified business if it is either:
64.9 	(1) primarily engaged in making retail sales to purchasers who are physically present at 
64.10 	the business's location or locations in greater Minnesota;
64.11 	(2) a public utility, as defined in section 336B.01; or
64.12 	(3) primarily engaged in lobbying; gambling; entertainment; professional sports; political 
64.13 	consulting; leisure; hospitality; or professional services provided by attorneys, accountants, 
64.14 	business consultants, physicians, or health care consultants.
64.15 	(c) The requirements in paragraph (a) that the business's operations and expansion be 
64.16 	located in a city do not apply to an agricultural processing facility or a project designed to 
64.17 	qualify under section 41A.20.

64.18 	Sec. 7. Minnesota Statutes 2016, section 116J.8738, subdivision 3, is amended to read:
64.19 		Subd. 3.Certification of qualified business. (a) A business may apply to the 
64.20 	commissioner for certification as a qualified business under this section. The commissioner 
64.21 	shall specify the form of the application, the manner and times for applying, and the 
64.22 	information required to be included in the application. The commissioner may impose an 
64.23 	application fee in an amount sufficient to defray the commissioner's cost of processing 
64.24 	certifications. Application fees are deposited in the greater Minnesota business expansion 
64.25 	administration account in the special revenue fund. A business must file a copy of its 
64.26 	application with the chief clerical officer of the city at the same time it applies to the 
64.27 	commissioner. For an agricultural processing facility or a project designed to qualify under 
64.28 	section 41A.20 located outside the boundaries of a city, the business must file a copy of the 
64.29 	application with the county auditor.
64.30 	(b) The commissioner shall certify each business as a qualified business that:
64.31 	(1) satisfies the requirements of subdivision 2;
65.1 	(2) the commissioner determines would not expand its operations in greater Minnesota 
65.2 	without the tax incentives available under subdivision 4; and
65.3 	(3) enters a business subsidy agreement with the commissioner that pledges to satisfy 
65.4 	the minimum expansion requirements of paragraph (c) within three years or less following 
65.5 	execution of the agreement.
65.6 	The commissioner must act on an application within 90 days after its filing. Failure by 
65.7 	the commissioner to take action within the 90-day period is deemed approval of the 
65.8 	application.
65.9 	(c) The business must increase the number of full-time equivalent employees in greater 
65.10 	Minnesota from the time the business subsidy agreement is executed by two employees or 
65.11 	ten percent, whichever is greater.
65.12 	(d) The city, or a county for an agricultural processing facility or a project designed to 
65.13 	qualify under section 41A.20 located outside the boundaries of a city, in which the business 
65.14 	proposes to expand its operations may file comments supporting or opposing the application 
65.15 	with the commissioner. The comments must be filed within 30 days after receipt by the city 
65.16 	or county of the application and may include a notice of any contribution the city or county 
65.17 	intends to make to encourage or support the business expansion, such as the use of tax 
65.18 	increment financing, property tax abatement, additional city or county services, or other 
65.19 	financial assistance.
65.20 	(e) Certification of a qualified business is effective for the seven-year period beginning 
65.21 	on the first day of the calendar month immediately following the date that the commissioner 
65.22 	informs the business of the award of the benefit.

65.23 	Sec. 8. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
65.24 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
65.25 	disbursement of an appropriation made from the fund to the commissioner of transportation 
65.26 	for grants to subdivisions of the state, the commissioner shall must certify that:
65.27 	(1) that the project for which the grant is made has been reviewed as provided in 
65.28 	subdivision 4;
65.29 	(2) that the project conforms to the program authorized by the appropriation law and 
65.30 	rules adopted by the Department of Transportation consistent therewith; and
65.31 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
65.32 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
66.1 	subdivision, or by a grant from an agency of the federal government, within the amount of 
66.2 	funds then appropriated to that agency and allocated by it to projects within the state, and 
66.3 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
66.4 	use all funds so made available exclusively for the project, and to pay any additional amount 
66.5 	by which the cost exceeds the estimate through appropriation to the construction fund of 
66.6 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

66.7 	Sec. 9. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
66.8 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
66.9 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
66.10 	less for design, engineering, and construction of bridges on city streets.
66.11 	(b) Grants under this subdivision are subject to the procedures and criteria established 
66.12 	under subdivisions 5, 6, and 7.
66.13 	(c) (b) Grants may be used for:
66.14 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
66.15 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
66.16 	(3) 100 percent of the bridge construction work costs.

66.17 	Sec. 10. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
66.18 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
66.19 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
66.20 	eligible for a grant under this subdivision, the project must produce a bridge structure:
66.21 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
66.22 	(2) whose failure of a main component will not result in the collapse of the bridge.
66.23 	(b) A grant under this subdivision is subject to the procedures and criteria established 
66.24 	under subdivisions 5 and 6.

66.25 	Sec. 11. Minnesota Statutes 2016, section 174.50, is amended by adding a subdivision to 
66.26 	read:
66.27 		Subd. 6d.Major local bridges. For an appropriation made specifically for purposes of 
66.28 	this subdivision, the commissioner may make a grant under this section to any political 
66.29 	subdivision for replacement or rehabilitation of a major local bridge in which the grant 
66.30 	award is $7,000,000 or more. If in any year money appropriated for local bridge replacement 
67.1 	and rehabilitation projects under this subdivision remains available after all identified and 
67.2 	eligible projects under this subdivision have been funded, the commissioner may use 
67.3 	remaining funds to make grants under this section for less than $7,000,000.

67.4 	Sec. 12. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
67.5 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
67.6 	shall develop rules, procedures for application for grants, conditions of grant administration, 
67.7 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
67.8 	cooperation with road authorities of political subdivisions, for use in the administration of 
67.9 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
67.10 	Grants under this section are subject to the procedures and criteria established in this 
67.11 	subdivision and in subdivisions 5 and 6.
67.12 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
67.13 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
67.14 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
67.15 	must be ten feet or more in length.
67.16 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
67.17 	road authorities, establish a minimum distance between any two bridges that cross over the 
67.18 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
67.19 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
67.20 	distance requirement or procedures for obtaining a variance.
67.21 	(d) Political subdivisions may use grants made under this section to construct or 
67.22 	reconstruct bridges, including but not limited to:
67.23 	(1) matching federal aid grants to construct or reconstruct key bridges;
67.24 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
67.25 	replacement but where no replacement will be made; and
67.26 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
67.27 	existing bridge if the commissioner determines that the bridge is deficient, and that 
67.28 	construction of the road or street is more economical than replacement of the existing bridge.
67.29 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
67.30 	fund shall be segregated from the highway tax user distribution fund and other funds created 
67.31 	by article XIV of the Minnesota Constitution.
68.1 	(f) Except as provided in subdivision 6d, the commissioner is prohibited from awarding 
68.2 	a grant under this section for a local bridge replacement or rehabilitation project with a total 
68.3 	project cost estimate of $7,000,000 or more.
68.4 	(g) Notwithstanding paragraph (f), the commissioner may award a grant under this 
68.5 	section for a portion of a local bridge replacement or rehabilitation project with a total 
68.6 	project cost estimate of $7,000,000 or more if every other local bridge replacement or 
68.7 	rehabilitation project on the commissioner's priority list with a total project cost estimate 
68.8 	of less than $7,000,000 has been fully funded.

68.9 	Sec. 13. [219.016] HAZARDOUS MATERIALS RAIL SAFETY.
68.10 		Subdivision 1.Program established. A hazardous materials rail safety program is 
68.11 	established for the purpose of reducing the risks associated with the transportation of oil, 
68.12 	ethanol, and other hazardous material by rail.
68.13 		Subd. 2.Accounts established. Two hazardous materials rail safety program accounts 
68.14 	are created, one in the special revenue fund and one in the bond proceeds fund. The account 
68.15 	in the special revenue fund consists of money as provided by law, and any other money 
68.16 	donated, allotted, transferred, or otherwise provided to the account. Money in each account 
68.17 	is appropriated to the commissioner of transportation to make grants as provided in this 
68.18 	section.
68.19 		Subd. 3.Eligible applicant. A county, statutory or home rule charter city, or town that 
68.20 	is responsible for establishing and maintaining public highway-rail grade crossings on rail 
68.21 	corridors transporting crude oil and other hazardous materials may apply to the commissioner 
68.22 	for financial assistance under this section.
68.23 		Subd. 4.Eligible project. (a) A project is eligible for a grant from the account in the 
68.24 	bond proceeds fund if the project is for the acquisition or betterment of public land, buildings, 
68.25 	and other public improvements of a capital nature within the meaning of the Minnesota 
68.26 	Constitution, article XI, section 5, clause (a) or (i), including capital costs associated with 
68.27 	hazardous materials rail safety projects on public highway-rail grade crossings. Qualifying 
68.28 	capital costs include but are not limited to upgrades to existing protection systems, the 
68.29 	closing of crossings and necessary roadwork, and reconstruction of at-grade crossings to 
68.30 	full grade separations.
68.31 	(b) A project is eligible for a grant from the account in the special revenue fund if it is 
68.32 	for purposes described in paragraph (a) or other capital facility improvement purposes that 
68.33 	support the purposes for which this grant program is established, including capital costs 
69.1 	associated with planning, engineering, administration, and construction of public highway-rail 
69.2 	grade crossing improvements on rail corridors transporting crude oil and other hazardous 
69.3 	materials. Improvements may include upgrades to existing protection systems, the closing 
69.4 	of crossings and necessary roadwork, and reconstruction of at-grade crossings to full grade 
69.5 	separations.
69.6 		Subd. 5.Grants; criteria for grant award. The commissioner must consider the 
69.7 	following criteria to evaluate applications for a grant award under this section:
69.8 	(1) whether the crossing was identified as a potential candidate for grade separation in 
69.9 	the Department of Transportation's crude by rail grade crossing study (Improvements to 
69.10 	Highway Grade Crossings and Rail Safety, December 2014);
69.11 	(2) roadway traffic volumes and speeds;
69.12 	(3) train volumes and speeds;
69.13 	(4) adjacent land use;
69.14 	(5) crash history;
69.15 	(6) use of the crossing by emergency vehicles;
69.16 	(7) use of the crossing by vehicles carrying hazardous materials; and
69.17 	(8) local financial contributions to the project.
69.18 		Subd. 6.Process. The commissioner must develop forms and procedures for soliciting 
69.19 	and reviewing applications for grants under this section. An applicant must apply for a grant 
69.20 	in the manner and at the times determined by the commissioner.
69.21 		Subd. 7.Grant cancellation. If, five years after execution of a grant agreement, the 
69.22 	commissioner determines that the grantee has not proceeded in a timely manner with 
69.23 	implementation of the project funded, the commissioner must cancel the grant and the 
69.24 	grantee must repay to the commissioner all grant money paid to the grantee. Section 16A.642 
69.25 	applies to any appropriations made from the bond proceeds fund to the commissioner under 
69.26 	this section that have not been awarded as financial assistance.

69.27 	Sec. 14. Minnesota Statutes 2016, section 326B.124, is amended to read:
69.28 	326B.124 EXEMPTIONS.
69.29 	(a) The commissioner may exempt a part of a historic building occupied by the state 
69.30 	from the state or another building, fire, safety, or other code if the exemption is necessary 
69.31 	to preserve the historic or esthetic character of the building or to prevent theft, vandalism, 
70.1 	terrorism, or another crime. When the commissioner grants an exemption, the commissioner 
70.2 	shall consider providing equivalent protection. A certificate of occupancy may not be denied 
70.3 	because of an exemption under this section.
70.4 	(b) The house of representatives and senate chambers located in the State Capitol are 
70.5 	exempt from any State Building Code and State Fire Code requirements pertaining to: (1) 
70.6 	exit sign placement at exit access doors; and (2) occupancy limit signs. The house of 
70.7 	representatives and senate may install exit and occupancy limit signs within the house of 
70.8 	representatives and senate chambers located in the State Capitol that are minimal in size 
70.9 	and historic in appearance as appropriate for each chamber. Any sign installed by the house 
70.10 	of representatives or the senate under the authority provided in this paragraph is not subject 
70.11 	to the approval of the commissioner.

70.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

70.13 	Sec. 15. Minnesota Statutes 2016, section 446A.072, is amended to read:
70.14 	446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING PROGRAM.
70.15 		Subdivision 1.Establishment of program. The authority will establish a wastewater
70.16 	water infrastructure funding program to provide supplemental assistance to governmental 
70.17 	units receiving funding through the clean water revolving fund program, the drinking water 
70.18 	revolving fund program, or the United States Department of Agriculture Rural Economic 
70.19 	and Community Development's (USDA/RECD) Water and Waste Disposal Loans and 
70.20 	Grants program for the predesign, design, and construction of municipal wastewater treatment
70.21 	and drinking water systems, including purchase of land and easements. The purpose of the 
70.22 	program is to assist governmental units demonstrating financial need to build cost-effective 
70.23 	projects to address existing environmental or public health problems. To implement the 
70.24 	program, the authority shall establish a wastewater water infrastructure fund to provide 
70.25 	grants and loans for the purposes authorized under title VI of the Federal Water Pollution 
70.26 	Control Act and the federal Safe Drinking Water Act. The fund shall be credited with all 
70.27 	investment income from the fund and all repayments of loans, grants, and penalties.
70.28 		Subd. 3.Program administration. (a) The authority shall provide supplemental 
70.29 	assistance, as provided in subdivision 5a to governmental units:
70.30 	(1) whose projects are listed on the Pollution Control Agency's project priority list or 
70.31 	the Department of Health's project priority list;
70.32 	(2) that demonstrate their projects are a cost-effective solution to an existing 
70.33 	environmental or public health problem; and
71.1 	(3) whose projects are approved by the USDA/RECD or certified by the commissioner 
71.2 	of the Pollution Control Agency or the Department of Health.
71.3 	(b) For a governmental unit receiving grant funding from the USDA/RECD, applications 
71.4 	must be made to the USDA/RECD with additional information submitted to the authority 
71.5 	as required by the authority. Eligible project costs and affordability criteria shall be 
71.6 	determined by the USDA/RECD.
71.7 	(c) For a governmental unit not receiving grant funding from the USDA/RECD, 
71.8 	application must be made to the authority on forms prescribed by the authority for the clean 
71.9 	water revolving fund program or the drinking water revolving fund program with additional 
71.10 	information as required by the authority. In accordance with section 116.182, the Pollution 
71.11 	Control Agency or Department of Health shall:
71.12 	(1) calculate the essential project component percentage based on the portion of project 
71.13 	costs necessary to convey or treat the existing wastewater flows and loadings or, for drinking 
71.14 	water projects, to provide safe drinking water to meet existing needs, which must be 
71.15 	multiplied by the total project cost to determine the eligible project cost for the program 
71.16 	under this section; and
71.17 	(2) review and certify approved projects to the authority.
71.18 	(d) Each fiscal year the authority shall make funds available for projects based on their 
71.19 	ranking on the Pollution Control Agency's project priority list or the Department of Health's 
71.20 	project priority list. The authority shall reserve funds for a project when the applicant receives 
71.21 	a funding commitment from the United States Department of Agriculture Rural Development 
71.22 	(USDA/RECD) or submits plans and specifications to the project is certified by the Pollution 
71.23 	Control Agency or Department of Health. Funds must be reserved in an amount based on 
71.24 	the project cost estimate submitted to the authority prior to the appropriation of the funds 
71.25 	and awarded based on the lesser of that amount or the as-bid cost when the project is certified 
71.26 	or the as-bid cost, whichever is less.
71.27 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
71.28 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
71.29 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
71.30 	unit may not receive a grant under this paragraph for more than $4,000,000 $5,000,000 per 
71.31 	project or $15,000 $20,000 per existing connection, whichever is less, unless specifically 
71.32 	approved by law.
71.33 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
71.34 	section 446A.07, the authority may provide assistance under this section in the form of a 
72.1 	grant if the average annual residential wastewater system cost after completion of the project 
72.2 	would otherwise exceed 1.4 percent of the median household income of the project service 
72.3 	area. In determining whether the average annual residential wastewater system cost would 
72.4 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
72.5 	operating, and maintaining the wastewater system, including existing wastewater debt 
72.6 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
72.7 	service costs for the proposed project are calculated based on the maximum loan term 
72.8 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
72.9 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
72.10 	annual residential wastewater system cost to 1.4 percent of median household income in 
72.11 	the project service area, to a maximum of $4,000,000 $5,000,000 per project or $15,000
72.12 	$20,000 per existing connection, whichever is less, unless specifically approved by law. 
72.13 	The eligible project cost is determined by multiplying the total project costs minus any other 
72.14 	grants by the essential project component percentage calculated under subdivision 3, 
72.15 	paragraph (c), clause (1). In no case may the amount of the grant exceed 80 percent of the 
72.16 	eligible project cost.
72.17 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
72.18 	under section 446A.081, the authority may provide assistance under this section in the form 
72.19 	of a grant if the average annual residential drinking water system cost after completion of 
72.20 	the project would otherwise exceed 1.2 percent of the median household income of the 
72.21 	project service area. In determining whether the average annual residential drinking water 
72.22 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
72.23 	with building, operating, and maintaining the drinking water system, including existing 
72.24 	drinking water debt service, debt service on the eligible project cost, and operation and 
72.25 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
72.26 	maximum loan term permitted for the drinking water revolving fund loan under section 
72.27 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
72.28 	the amount needed to reduce the average annual residential drinking water system cost to 
72.29 	1.2 percent of median household income in the project service area, to a maximum of 
72.30 	$5,000,000 per project or $20,000 per existing connection, whichever is less, unless 
72.31 	specifically approved by law. The eligible project cost is determined by multiplying the 
72.32 	total project costs minus any other grants by the essential project component percentage 
72.33 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
72.34 	grant exceed 80 percent of the eligible project cost.
73.1 	(c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a governmental 
73.2 	unit receiving supplemental assistance under this section after January 1, 2002, if the authority 
73.3 	determines that the governmental unit's construction and installation costs are significantly 
73.4 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
73.5 	limits that are more stringent than secondary treatment, the maximum award under this 
73.6 	section shall not be more than $25,000 per existing connection.
73.7 		Subd. 5b.Special assessment deferral. A governmental unit receiving a loan under 
73.8 	subdivision 5a that levies special assessments to repay the loan under subdivision 5a or 
73.9 	section 446A.07 may defer payment of such assessments under the provisions of sections 
73.10 	435.193 to 435.195.
73.11 		Subd. 6.Disbursements. Disbursements of grants or loans awarded under this section 
73.12 	by the authority to recipients must be made for eligible project costs as incurred by the 
73.13 	recipients, and must be made by the authority in accordance with the project financing 
73.14 	agreement and applicable state and federal laws and rules governing the payments.
73.15 		Subd. 7.Loan repayments. Notwithstanding the limitations set forth in section 475.54, 
73.16 	subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund 
73.17 	redemptions of the loans under this section. A governmental unit receiving a loan under 
73.18 	this section shall repay the loan in semiannual payment amounts determined by the authority. 
73.19 	The payment amount must be based on the average payments on the governmental unit's 
73.20 	clean water revolving fund loan or, if greater, the minimum amount required to fully repay 
73.21 	the loan by the maturity date. Payments must begin within one year of the date of the 
73.22 	governmental unit's final payment on the clean water revolving fund loan. The final maturity 
73.23 	date of the loan under this section must be no later than 20 years from the date of the first 
73.24 	payment on the loan under this section and no later than 40 years from the date of the first 
73.25 	payment on the clean water revolving fund loan.
73.26 		Subd. 8.Eligibility. A governmental unit is eligible for assistance under this section 
73.27 	only after applying for grant funding from other sources and funding has been obtained, 
73.28 	rejected, or the authority has determined that the potential funding is unlikely.
73.29 		Subd. 9.Funding limitation. Supplemental assistance may not be used to reduce the 
73.30 	sewer service charges of a significant wastewater contributor industrial user that has a 
73.31 	separate service charge agreement with the recipient, or a single user that has caused the 
73.32 	need for the project or whose current or projected flow and load exceed usage exceeds
73.33 	one-half of the current wastewater treatment plant's or drinking water system capacity.
74.1 		Subd. 11.Report on needs. By February 1 of each even-numbered year, the authority, 
74.2 	in conjunction with the Pollution Control Agency and the Department of Health, shall 
74.3 	prepare a report to the Finance Division of the senate Environment and Natural Resources 
74.4 	Committee and the house of representatives Environment and Natural Resources Finance 
74.5 	Committee on wastewater and drinking water funding assistance needs of governmental 
74.6 	units under this section.
74.7 		Subd. 12.System replacement fund. Each governmental unit receiving a loan or grant 
74.8 	under this section shall establish a system replacement fund and shall annually deposit a 
74.9 	minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, or 
74.10 	replacement of the treatment wastewater or drinking water system, or replacement of the 
74.11 	treatment system at the end of its useful life. Money must remain in the account for the life 
74.12 	of the corresponding project loan from the authority or USDA/RECD, unless use of the 
74.13 	fund is approved in writing by the authority for major rehabilitation, expansion, or 
74.14 	replacement of the treatment wastewater or drinking water system. By March 1 each year 
74.15 	during the life of the loan, each recipient shall submit a report to the authority regarding the 
74.16 	amount deposited and the fund balance for the prior calendar year. A recipient is not required 
74.17 	to maintain a fund balance greater than the amount of the grant received. Failure to comply 
74.18 	with the requirements of this subdivision shall result in the authority assessing a penalty 
74.19 	fee to the recipient equal to one percent of the supplemental assistance amount for each 
74.20 	year of noncompliance. Failure to make the required deposit or pay the penalty fee as 
74.21 	required constitutes a default on the loan.
74.22 		Subd. 14.Consistency with land use plans. A governmental unit applying for a project 
74.23 	in an unsewered area shall include in its application to the authority a certification from the 
74.24 	county in which the project is located that:
74.25 	(1) the project is consistent with the county comprehensive land use plan, if the county 
74.26 	has adopted one;
74.27 	(2) the project is consistent with the county water plan, if the county has adopted one; 
74.28 	and
74.29 	(3) the county has adopted specific land use ordinances or controls so as to meet or 
74.30 	exceed the requirements of Minnesota Rules, part 7082.0050.

74.31 	Sec. 16. Minnesota Statutes 2016, section 446A.073, is amended to read:
74.32 	446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
75.1 		Subdivision 1.Program established. When money is appropriated for grants under this 
75.2 	program, the authority shall award grants up to a maximum of $3,000,000 $7,000,000 to 
75.3 	governmental units to cover up to one-half 80 percent of the cost of water infrastructure 
75.4 	projects made necessary by:
75.5 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
75.6 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
75.7 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
75.8 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
75.9 	Pollution Control Agency;
75.10 	(3) any other water quality-based effluent limit established under section 115.03, 
75.11 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution 
75.12 	Control Agency that exceeds secondary treatment limits; or
75.13 	(4) a total nitrogen concentration or mass limit of that requires discharging ten milligrams 
75.14 	per liter or less for a land-based treatment system at permitted design flow.
75.15 		Subd. 2.Grant application. Application for a grant must be made to the authority on 
75.16 	forms prescribed by the authority for the total maximum daily load grant program, with 
75.17 	additional information as required by the authority, including a project schedule and cost 
75.18 	estimate for the work necessary to comply with the point source wasteload allocation
75.19 	requirements listed in subdivision 1. The Pollution Control Agency shall:
75.20 	(1) in accordance with section 116.182, calculate the essential project component 
75.21 	percentage, which must be multiplied by the total project cost to determine the eligible 
75.22 	project cost; and
75.23 	(2) review and certify to the authority those projects that have plans and specifications 
75.24 	approved under section 115.03, subdivision 1, paragraph (f).
75.25 		Subd. 3.Project priorities. When money is appropriated for grants under this program,
75.26 	The authority shall accept applications under this program during the month of July and. 
75.27 	When a project is certified by the Pollution Control Agency the authority shall reserve 
75.28 	money for projects expected to proceed with construction by the end of the fiscal year the 
75.29 	project in the order listed on the Pollution Control Agency's project priority list and in an 
75.30 	amount based on the cost estimate submitted to the authority in the grant application when 
75.31 	the project is certified or the as-bid costs, whichever is less. Notwithstanding Minnesota 
75.32 	Rules, chapter 7077, the Pollution Control Agency may rank a drinking water infrastructure 
76.1 	project on the agency's project priority list if the project is necessary to meet an applicable 
76.2 	requirement in subdivision 1.
76.3 		Subd. 4.Grant approval. The authority must make a grant for an eligible project only 
76.4 	after:
76.5 	(1) the applicant has submitted the as-bid cost for the water infrastructure project;
76.6 	(2) the Pollution Control Agency has approved the as-bid costs and certified the grant 
76.7 	eligible portion of the project; and
76.8 	(3) the authority has determined that the additional financing necessary to complete the 
76.9 	project has been committed from other sources.
76.10 		Subd. 5.Grant disbursement. Disbursement of a grant must be made for eligible project 
76.11 	costs as incurred by the governmental unit and in accordance with a project financing 
76.12 	agreement and applicable state and federal laws and rules governing the payments.

76.13 	Sec. 17. Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:
76.14 		Subd. 9.Other uses of fund. (a) The drinking water revolving loan fund may be used 
76.15 	as provided in the act, including the following uses:
76.16 	(1) to buy or refinance the debt obligations, at or below market rates, of public water 
76.17 	systems for drinking water systems, where the debt was incurred after the date of enactment 
76.18 	of the act, for the purposes of construction of the necessary improvements to comply with 
76.19 	the national primary drinking water regulations under the federal Safe Drinking Water Act;
76.20 	(2) to purchase or guarantee insurance for local obligations to improve credit market 
76.21 	access or reduce interest rates;
76.22 	(3) to provide a source of revenue or security for the payment of principal and interest 
76.23 	on revenue or general obligation bonds issued by the authority if the bond proceeds are 
76.24 	deposited in the fund;
76.25 	(4) to provide loans or loan guarantees for similar revolving funds established by a 
76.26 	governmental unit or state agency;
76.27 	(5) to earn interest on fund accounts;
76.28 	(6) to pay the reasonable costs incurred by the authority, the Department of Employment 
76.29 	and Economic Development, and the Department of Health for conducting activities as 
76.30 	authorized and required under the act up to the limits authorized under the act;
77.1 	(7) to develop and administer programs for water system supervision, source water 
77.2 	protection, and related programs required under the act;
77.3 	(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal forgiveness 
77.4 	or grants to the extent permitted under the federal Safe Drinking Water Act and other federal 
77.5 	law, based on the criteria and requirements established for drinking water projects under 
77.6 	the water infrastructure funding program under section 446A.072;
77.7 	(9) to provide loans, principal forgiveness or grants to the extent permitted under the 
77.8 	federal Safe Drinking Water Act and other federal law to address green infrastructure, water 
77.9 	or energy efficiency improvements, or other environmentally innovative activities; and
77.10 	(10) to provide principal forgiveness, or grants for 50 percent of the project cost up to 
77.11 	a maximum of $10,000 for projects needed to comply with national primary drinking water 
77.12 	standards for an existing community or noncommunity public water system.
77.13 	(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be provided 
77.14 	if the average annual residential drinking water system cost after completion of the project 
77.15 	would otherwise exceed 1.2 percent of the median household income in the project service 
77.16 	area. In determining whether the average annual residential drinking water system cost 
77.17 	would exceed 1.2 percent, the authority must consider the total costs associated with building, 
77.18 	operating, and maintaining the drinking water system, including debt service and operation 
77.19 	and maintenance costs. Debt service costs for the proposed project must be calculated based 
77.20 	on the maximum loan term permitted for the drinking water revolving fund loan under this 
77.21 	section. The amount of the principal forgiveness or grant must be equal to 80 percent of the 
77.22 	amount needed to reduce the average annual residential drinking water system cost to 1.2 
77.23 	percent of median household income in the project service area, to a maximum of $4,000,000 
77.24 	or $15,000 per connection, whichever is less, and not to exceed 80 percent of the total project 
77.25 	cost.
77.26 	(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not 
77.27 	exceed 25 percent of the eligible project costs as determined by the Department of Health 
77.28 	for project components directly related to green infrastructure, water or energy efficiency 
77.29 	improvements, or other environmentally innovative activities, up to a maximum of 
77.30 	$1,000,000.
77.31 	(d) The authority may reduce the percentage of median household income at which a 
77.32 	loan term could extend to 30 years under subdivision 8, paragraph (c), and at which principal 
77.33 	forgiveness or grants could be provided under paragraph (b) if it determines that the federal 
77.34 	money allotted to the state cannot be fully utilized without the reduction. If it determines 
78.1 	that the reduction is necessary to fully utilize the federal money, the authority must effect 
78.2 	the change through its approval of the annual intended use plan.

78.3 	Sec. 18. Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:
78.4 		Subdivision 1.Bonding authority. The authority may issue negotiable bonds in a 
78.5 	principal amount that the authority determines necessary to provide sufficient funds for 
78.6 	achieving its purposes, including the making of loans and purchase of securities, the payment 
78.7 	of interest on bonds of the authority, the establishment of reserves to secure its bonds, the 
78.8 	payment of fees to a third party providing credit enhancement, and the payment of all other 
78.9 	expenditures of the authority incident to and necessary or convenient to carry out its corporate 
78.10 	purposes and powers, but not including the making of grants. Bonds of the authority may 
78.11 	be issued as bonds or notes or in any other form authorized by law. The principal amount 
78.12 	of bonds issued and outstanding under this section at any time may not exceed 
78.13 	$1,500,000,000 $2,000,000,000, excluding bonds for which refunding bonds or crossover 
78.14 	refunding bonds have been issued, and excluding any bonds issued for the credit enhanced 
78.15 	bond program or refunding or crossover refunding bonds issued under the program. The 
78.16 	principal amount of bonds issued and outstanding under section 446A.087, may not exceed 
78.17 	$500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds 
78.18 	have been issued.

78.19 	Sec. 19. Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:
78.20 		Subd. 2a.Additional authorization. In addition to the amount authorized in subdivision 
78.21 	2, the agency may issue up to $80,000,000 $95,000,000 of housing infrastructure bonds in 
78.22 	one or more series to which the payments made under this section may be pledged.

78.23 	Sec. 20. Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:
78.24 		Subd. 2b.Additional authorization. In addition to the amount authorized in subdivisions 
78.25 	2 and 2a, the agency may issue up to $10,000,000 $15,000,000 of housing infrastructure 
78.26 	bonds in one or more series to which the payments made under this section may be pledged.

78.27 	Sec. 21. Minnesota Statutes 2016, section 462A.37, is amended by adding a subdivision 
78.28 	to read:
78.29 		Subd. 2c.Additional authorization. In addition to the amount authorized in subdivisions 
78.30 	2, 2a, and 2b, the agency may issue up to $35,000,000 in housing infrastructure bonds in 
78.31 	one or more series to which the payments under this section may be pledged.

79.1 	Sec. 22. Minnesota Statutes 2016, section 462A.37, subdivision 5, is amended to read:
79.2 		Subd. 5.Additional appropriation. (a) The agency must certify annually to the 
79.3 	commissioner of management and budget the actual amount of annual debt service on each 
79.4 	series of bonds issued under subdivisions 2a and, 2b, and 2c.
79.5 	(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure 
79.6 	bonds issued under subdivision 2a remain outstanding, the commissioner of management 
79.7 	and budget must transfer to the housing infrastructure bond account established under section 
79.8 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000 
79.9 	annually. The amounts necessary to make the transfers are appropriated from the general 
79.10 	fund to the commissioner of management and budget.
79.11 	(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure 
79.12 	bonds issued under subdivision 2b remain outstanding, the commissioner of management 
79.13 	and budget must transfer to the housing infrastructure bond account established under section 
79.14 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000 
79.15 	annually. The amounts necessary to make the transfers are appropriated from the general 
79.16 	fund to the commissioner of management and budget.
79.17 	(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure 
79.18 	bonds issued under subdivision 2c remain outstanding, the commissioner of management 
79.19 	and budget must transfer to the housing infrastructure bond account established under section 
79.20 	462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000 
79.21 	annually. The amounts necessary to make the transfers are appropriated from the general 
79.22 	fund to the commissioner of management and budget.
79.23 	(e) The agency may pledge to the payment of the housing infrastructure bonds the 
79.24 	payments to be made by the state under this section.

79.25 	Sec. 23. Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 2013, 
79.26 	chapter 136, section 13, is amended to read:

79.27
79.28	Subd. 6.Systemwide Redevelopment, Reuse, or 
Demolition
 				5,000,000
	
79.29 	To abate hazardous materials, design, 
79.30 	construct, or improve basic infrastructure, 
79.31 	including sanitary and storm sewer and water 
79.32 	lines, public streets, curb, gutter, street lights, 
79.33 	or sidewalks, to make improvements for 
80.1 	building envelope and structural integrity for 
80.2 	the purposes of stabilizing the buildings for 
80.3 	sale, demolish all or portions of surplus, 
80.4 	nonfunctional, or deteriorated facilities and 
80.5 	infrastructure or to renovate surplus, 
80.6 	nonfunctional, or deteriorated facilities and 
80.7 	infrastructure to facilitate redevelopment of 
80.8 	Department of Human Services campuses that 
80.9 	the commissioner of administration is 
80.10 	authorized to convey to a local unit of 
80.11 	government under Laws 2005, chapter 20, 
80.12 	article 1, section 46, or other law. These 
80.13 	projects must facilitate the redevelopment or 
80.14 	reuse of these campuses and must be 
80.15 	implemented consistent with the 
80.16 	comprehensive redevelopment plans 
80.17 	developed and approved under Laws 2003, 
80.18 	First Special Session chapter 14, article 6, 
80.19 	section 64, subdivision 2, unless expressly 
80.20 	provided otherwise. If a surplus campus is sold 
80.21 	or transferred to a local unit of government, 
80.22 	unspent portions of this appropriation may be 
80.23 	granted to that local unit of government for 
80.24 	the purposes stated in this subdivision. 
80.25 	Notwithstanding the inclusion of the 
80.26 	unencumbered and unobligated balance of the 
80.27 	bond sale authorization and appropriation of 
80.28 	bond proceeds in this subdivision in the report 
80.29 	submitted to the legislature in January 2017 
80.30 	pursuant to Minnesota Statutes, section 
80.31 	16A.642, the unencumbered and unobligated 
80.32 	balance of the bond sale authorization and 
80.33 	appropriation of bond proceeds in this 
80.34 	subdivision are, estimated to be $1,991,456.32, 
80.35 	is reauthorized and available until December 
80.36 	31, 2016 2020.

81.1 	Sec. 24. Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:

81.2
81.3	Subd. 3.Dam Repair, Reconstruction, and 
Removal
 				3,000,000
	
81.4 	To renovate or remove publicly owned dams. 
81.5 	The commissioner shall determine project 
81.6 	priorities as appropriate under Minnesota 
81.7 	Statutes, sections 103G.511 and 103G.515.
81.8 	Notwithstanding the match requirements in 
81.9 	Minnesota Statutes, section 103G.511, a grant 
81.10 	to the city of Lanesboro does not require any 
81.11 	nonstate match.

81.12 	Sec. 25. Laws 2012, chapter 293, section 17, subdivision 4, is amended to read:

81.13	Subd. 4.Phillips Community Center
 				1,750,000
	
81.14 	For a grant to the Minneapolis Park and 
81.15 	Recreation Board to predesign, design, 
81.16 	engineer, reconstruct, renovate, furnish, and 
81.17 	equip the Phillips Community Center indoor 
81.18 	competitive swimming pool and to predesign, 
81.19 	design, engineer, and construct an additional 
81.20 	indoor multipurpose family pool and facilities 
81.21 	associated with an aquatic center in the 
81.22 	community center, subject to Minnesota 
81.23 	Statutes, section 16A.695.
81.24 	This appropriation is not available until the 
81.25 	commissioner determines that at least 
81.26 	$350,000 is committed from nonstate sources.
81.27 	Notwithstanding Minnesota Statutes, section 
81.28 	16A.642, the bond sale authorization and 
81.29 	appropriation of bond proceeds for this project 
81.30 	are available until December 31, 2022.

81.31 	Sec. 26. Laws 2014, chapter 294, article 1, section 7, subdivision 11, is amended to read:

81.32	Subd. 11.Central Minnesota Regional Parks
 				500,000
	
82.1 	For a grant to the city of Sartell to acquire land 
82.2 	and develop recreation facilities at Sauk River 
82.3 	Regional Park in the city of Sartell and to 
82.4 	acquire up to 68 acres of land located along 
82.5 	the Sauk River near the confluence of the 
82.6 	Mississippi to serve as part of the Central 
82.7 	Minnesota Regional Parks and Trails.
82.8 	Notwithstanding Minnesota Statutes, section 
82.9 	16A.642, the bond sale authorization and 
82.10 	appropriation of bond proceeds for this project 
82.11 	are available until June 30, 2020.

82.12 	Sec. 27. Laws 2014, chapter 294, article 1, section 7, subdivision 15, is amended to read:

82.13	Subd. 15.Grant County Trail Grant
 				100,000
	
82.14 	For a grant to Grant County for predesign, 
82.15 	acquisition, and or improvements for a trail 
82.16 	from the city of Elbow Lake to Pomme de 
82.17 	Terre Lake. The commissioner of natural 
82.18 	resources may allocate any amount not needed 
82.19 	to complete this project to state trail 
82.20 	acquisition and improvements under 
82.21 	Minnesota Statutes, section 85.015.

82.22 	Sec. 28. Laws 2014, chapter 294, article 1, section 17, subdivision 6, is amended to read:

82.23
82.24	Subd. 6.Inver Grove Heights - Heritage Village 
Park
 				2,000,000
	
82.25 	$1,500,000 of this appropriation is for a grant 
82.26 	to the city of Inver Grove Heights and 
82.27 	$500,000 of this appropriation is for a grant 
82.28 	to Dakota County. This appropriation is for 
82.29 	public infrastructure improvements and land 
82.30 	acquisition in and adjacent to the Heritage 
82.31 	Village Park, the Mississippi River Trail, and 
82.32 	the Rock Island Swing Bridge. These 
82.33 	improvements will include but are not limited 
82.34 	to motor vehicle access, utility service, 
83.1 	stormwater treatment, and trail and sidewalk 
83.2 	connections. This appropriation is not 
83.3 	available until the commissioner of 
83.4 	management and budget has determined that 
83.5 	at least an equal amount has been committed 
83.6 	to the project from nonstate sources.

83.7 	Sec. 29. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to read:

83.8
83.9	Subd. 12.West St. Paul - North UrbanRiver to 
River Regional Trail Bridge Greenway
 				2,000,000
	
83.10 	For a grant to the city of West St. Paul to 
83.11 	predesign, design, and construct a pedestrian 
83.12 	bridge for the North Urban Regional Trail as 
83.13 	an overpassgrade separated crossing of Robert 
83.14 	Street in the area near Wentworth Avenue in 
83.15 	West St. Paul for the River to River Regional 
83.16 	Greenway. This appropriation may also be 
83.17 	used to acquire property or purchase 
83.18 	rights-of-way needed for bridge construction. 
83.19 	A nonstate match is not required.

83.20 	Sec. 30. Laws 2014, chapter 294, article 1, section 21, subdivision 12, as amended by 
83.21 	Laws 2015, First Special Session chapter 5, article 3, section 19, is amended to read:

83.22
83.23	Subd. 12.Minneapolis - Brian Coyle Community 
Center
 				330,000
	
83.24 	(a) For a grant to the Minneapolis Park and 
83.25 	Recreation Board to predesign and design the 
83.26 	renovation and expansion of the Brian Coyle 
83.27 	Community Center, subject to Minnesota 
83.28 	Statutes, section 16A.695. This appropriation 
83.29 	does not require a local match.
83.30 	(b) The Minneapolis Park and Recreation 
83.31 	Board, the Pillsbury United Communities, 
83.32 	Hennepin County, institutions of higher 
83.33 	education, and neighborhood organizations 
83.34 	shall develop an agreement for the use of the 
84.1 	existing Brian Coyle Community Center. The 
84.2 	lease between the Minneapolis Park and 
84.3 	Recreation Board and Pillsbury United 
84.4 	Communities shall be reformed prior to the 
84.5 	expenditure of any funds for predesign and 
84.6 	design.
84.7 	(c) The appropriation under this subdivision 
84.8 	may also be used toward the renovation and 
84.9 	expansion of the Brian Coyle Community 
84.10 	Center.
84.11 	(d) Notwithstanding any limitation in 
84.12 	paragraphs (a) to (c), the appropriation under 
84.13 	this subdivision may be used by the 
84.14 	Minneapolis Park and Recreation Board for 
84.15 	capital costs of any recreation project or 
84.16 	facility in the Cedar Riverside neighborhood.

84.17 	Sec. 31. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 3, 
84.18 	is amended to read:

84.19	Subd. 3.Local Road Improvement Fund Grants
 				8,910,000
	
84.20 	(a) From the bond proceeds account in the 
84.21 	state transportation fund as provided in 
84.22 	Minnesota Statutes, section 174.50, for 
84.23 	construction and reconstruction of local roads 
84.24 	with statewide or regional significance under 
84.25 	Minnesota Statutes, section 174.52, 
84.26 	subdivision 4, or for grants to counties to assist 
84.27 	in paying the costs of rural road safety capital 
84.28 	improvement projects on county state-aid 
84.29 	highways under Minnesota Statutes, section 
84.30 	174.52, subdivision 4a.
84.31 	(b) This appropriation includes $850,000 for 
84.32 	a grant to the city of Sandstone for predesign, 
84.33 	design, engineering, and construction of a road 
84.34 	extending south off of marked Trunk Highway 
85.1 	23 across from Lundorff Drive to the airport 
85.2 	area, and including a bridge over Skunk Creek 
85.3 	in Sandstone, in order to facilitate repurposing 
85.4 	of an area of the airport into a business park. 
85.5 	This appropriation is not available until the 
85.6 	commissioner of management and budget 
85.7 	determines that sufficient resources to 
85.8 	complete the project are committed to it from 
85.9 	other sources, including any funds made 
85.10 	available from the commissioner of 
85.11 	transportation.
85.12 	(c) This appropriation includes $3,770,000 for 
85.13 	a grant to Kandiyohi County for construction 
85.14 	and reconstruction of local roads to facilitate 
85.15 	the construction of highway-rail grade 
85.16 	separations at U.S. Highway 12 and Minnesota 
85.17 	Highway 40 as part ofin conjunction with the 
85.18 	Willmar Wye project as well as to re-establish 
85.19 	the local road network on the southwest side 
85.20 	of Willmar.

85.21 	Sec. 32. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7, 
85.22 	is amended to read:

85.23	Subd. 7.Richfield - 77th Street Underpass
 				10,000,000
	
85.24 	For a grant to the city of Richfield for 
85.25 	right-of-way acquisition and construction of
85.26 	for an extension of 77th Street under marked 
85.27 	Trunk Highway 77/Cedar Avenue in the city 
85.28 	of Richfield to provide local and regional 
85.29 	access between Richfield, the Minneapolis/St. 
85.30 	Paul International Airport, the city of 
85.31 	Bloomington, and the Mall of America. After 
85.32 	right-of-way acquisition is completed, the city 
85.33 	may use any remaining money appropriated 
85.34 	in this subdivision for construction of the 
86.1 	extension. Notwithstanding Minnesota 
86.2 	Statutes, section 16A.642, the bond sale 
86.3 	authorization and appropriation of bond 
86.4 	proceeds for the project in this subdivision are 
86.5 	available until December 31, 2021.

86.6 	Sec. 33. NATIONAL SPORTS CENTER; LEASE.
 86.7 	Notwithstanding Minnesota Statutes, sections 16A.695, 16B.24, and 240A.03, subdivision 
86.8 	6, the Minnesota Amateur Sports Commission may lease, sell, and license for educational 
86.9 	purposes that portion of property described as a portion of the property acquired by the 
86.10 	commission pursuant to Laws 1987, chapter 400, section 8, subdivision 3, not currently 
86.11 	needed for amateur sports purposes to Independent School District No. 16, Spring Lake 
86.12 	Park. A lease shall be in a form approved by the attorney general and for a term not to 
86.13 	exceed 99 years. A lease may provide for the provision of capital improvements or other 
86.14 	performance by the tenant in lieu of all or some of the payments of rent that would otherwise 
86.15 	be required. Any lease revenues, sale proceeds, or license fees paid to the commission are 
86.16 	appropriated to the commission.

86.17 	Sec. 34. REVISOR'S INSTRUCTION.
 86.18 	In Minnesota Statutes, the revisor of statutes shall replace references to Minnesota 
86.19 	Statutes, section 123A.446, with Minnesota Statutes, section 123A.445.

86.20 	Sec. 35.  REPEALER.
 86.21 	Minnesota Statutes 2016, section 123A.446, is repealed.

86.22 	Sec. 36. EFFECTIVE DATE.
 86.23 	Except as otherwise provided, this article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 171-H0005-1 

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