Engrossments
Introduction		Posted on 02/06/2017
1st Engrossment		Posted on 05/08/2017
2nd Engrossment		Posted on 05/17/2017

ARTICLE 1

APPROPRIATIONS

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

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

new text begin APPROPRIATIONS
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 30,000,000
new text end

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

new text begin Subd. 2. new text end

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

30,000,000

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 36,244,000
new text end

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

new text begin Subd. 2. new text end

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

25,000,000

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

new text begin Subd. 3. new text end

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

(a) Fergus Falls Campus

978,000

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

(b) Wadena Campus

820,000

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

new text begin Subd. 4. new text end

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

826,000

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

new text begin Subd. 5. new text end

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

8,600,000

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

new text begin Subd. 6. new text end

new text begin Debt Service
new text end

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

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

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

new text begin Subd. 7. new text end

new text begin Unspent Appropriations
new text end

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

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

Sec. 4. new text begin EDUCATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 3,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Library Construction Grants
new text end

2,000,000

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

new text begin Subd. 3. new text end

new text begin Olmsted County - Dyslexia Institute of
Minnesota
new text end

1,500,000

new text begin For a grant to Olmsted County to acquire land
for, and to predesign, design, construct,
furnish, and equip a facility in Olmsted County
to support the local, regional, and national
literacy work of the Dyslexia Institute of
Minnesota, subject to Minnesota Statutes,
section 16A.695. This appropriation is not
available until the commissioner of
management and budget determines that an
amount sufficient to complete the project is
committed to it from nonstate sources.
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 2,050,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

2,000,000

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

new text begin Subd. 3. new text end

new text begin Security Corridor
new text end

50,000

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

Sec. 6. new text begin NATURAL RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 40,855,000
new text end

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

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

new text begin Subd. 2. new text end

new text begin Natural Resources Asset Preservation
new text end

15,000,000

new text begin For the renovation of state-owned facilities
and recreational assets operated by the
commissioner of natural resources to be spent
in accordance with Minnesota Statutes, section
84.946. Notwithstanding Minnesota Statutes,
section 84.946:
new text end

new text begin (1) the commissioner may use this
appropriation to replace buildings if,
considering the embedded energy in the
building, that is the most energy-efficient and
carbon-reducing method of renovation; and
new text end

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

new text begin Subd. 3. new text end

new text begin Flood Hazard Mitigation
new text end

11,555,000

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

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

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

new text begin (d) This appropriation includes $1,700,000 for
the Cedar River Watershed District, $750,000
for the city of Browns Valley project, and
$1,800,000 for the city of Ortonville project.
new text end

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

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

new text begin Subd. 4. new text end

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

9,000,000

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

new text begin (1) $500,000 is for emergencies on
state-owned dams;
new text end

new text begin (2) $3,600,000 is for a grant to the city of
Lanesboro for repair of the Lanesboro dam
and notwithstanding the match requirements
in Minnesota Statutes, section 103G.511, does
not require a nonstate contribution. This
includes funding for repairs of the hydropower
system;
new text end

new text begin (3) $2,500,000 is for repairs to the Lake
Bronson dam;
new text end

new text begin (4) $500,000 is for a grant to the city of
Pelican Rapids for engineering work on the
Pelican Rapids dam;
new text end

new text begin (5) $200,000 is for a grant to the city of Pine
River for engineering work on the Norway
Lake dam;
new text end

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

new text begin (7) $100,000 is for a grant to St. Louis County
for the Little Stone Lake dam; and
new text end

new text begin (8) $1,400,000 is for state dams at Brawner,
West Leaf Lake, Collinwood, Grindstone
River, and Sullivan.
new text end

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

new text begin Subd. 5. new text end

new text begin Reforestation and Stand Improvement
new text end

1,000,000

new text begin To provide for reforestation and stand
improvement on state forest lands to meet the
reforestation requirements of Minnesota
Statutes, section 89.002, subdivision 2,
including purchasing native seeds and native
seedlings, planting, seeding, site preparation,
and protection on state lands administered by
the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Champlin - Mill Pond
new text end

3,300,000

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

new text begin Subd. 7. new text end

new text begin Lake County - Prospectors ATV Trail
System
new text end

1,000,000

new text begin For a grant to Lake County for construction,
including bridges, of the Prospectors ATV
Trail System linking the communities of Ely,
Babbitt, Embarrass, and Tower; Bear Head
Lake and Lake Vermilion-Soudan
Underground Mine State Parks; the Taconite
State Trail; and the Lake County Regional
ATV Trail System. This appropriation is not
available until the commissioner of
management and budget determines that an
equal amount is committed from other sources.
new text end

new text begin Subd. 8. new text end

new text begin Unspent Appropriations
new text end

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

Sec. 7. new text begin POLLUTION CONTROL AGENCY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 21,955,000
new text end

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

new text begin Subd. 2. new text end

new text begin St. Louis River Cleanup
new text end

12,705,000

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

new text begin Subd. 3. new text end

new text begin Capital Assistance Program
new text end

9,250,000

new text begin This appropriation is for a grant to Polk
County under the solid waste capital assistance
grant program under Minnesota Statutes,
section 115A.54, in order to complete a
regional integrated solid waste management
system.
new text end

Sec. 8. new text begin BOARD OF WATER AND SOIL
RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 15,000,000
new text end

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

new text begin Subd. 2. new text end

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

10,000,000

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

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

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

new text begin Subd. 3. new text end

new text begin Local Government Roads Wetland
Replacement Program
new text end

5,000,000

new text begin To acquire land or permanent easements and
to restore, create, enhance, and preserve
wetlands to replace those wetlands drained or
filled as a result of the repair, reconstruction,
replacement, or rehabilitation of existing
public roads as required by Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m). The board may vary
the priority order of Minnesota Statutes,
section 103G.222, subdivision 3, paragraph
(a), to implement an in-lieu fee agreement
approved by the U.S. Army Corps of
Engineers under section 404 of the Clean
Water Act. The purchase price paid for
acquisition of land or perpetual easement must
be a fair market value as determined by the
board. The board may enter into agreements
with the federal government, other state
agencies, political subdivisions, nonprofit
organizations, fee title owners, or other
qualified private entities to acquire wetland
replacement credits in accordance with
Minnesota Rules, chapter 8420.
new text end

Sec. 9. new text begin MINNESOTA ZOOLOGICAL GARDEN
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 4,000,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

4,000,000

new text begin For capital asset preservation improvements
and betterments to infrastructure and exhibits
at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding the specified uses
of money under Minnesota Statutes, section
16B.307, the board may use this appropriation
to replace buildings that are in poor condition,
outdated, and no longer support the work of
the Minnesota Zoo and to construct and
renovate trails and roads on the Minnesota
Zoo site.
new text end

Sec. 10. new text begin ADMINISTRATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 12,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Capitol Complex - Physical Security
Upgrades
new text end

10,500,000

new text begin For the design, construction, and equipping
required to upgrade the physical security
elements and systems for one or more of the
buildings listed below, their attached tunnel
systems and surrounding grounds, and parking
facilities as identified in the 2014 Minnesota
State Capitol Complex Physical Security Study
conducted by Miller Dunwiddie Architecture.
Work includes but is not limited to the
installation of bollards, blast protection,
infrastructure security screen walls, door
access controls, emergency call stations,
security kiosks, locking devices, and traffic
control to the extent these funds allow. This
appropriation is for work associated with one
or more of the following buildings:
Administration, Centennial, Judicial,
Ag/Health Lab, Minnesota History Center,
Minnesota History Center Loading Dock,
Capitol Complex Power Plant and Shops,
Stassen, State Office, and Veterans Service.
new text end

new text begin Subd. 3. new text end

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

2,000,000

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

Sec. 11. new text begin MN.IT
new text end

new text begin $
new text end

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

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

Sec. 12. new text begin MILITARY AFFAIRS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 2,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

2,500,000

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

Sec. 13. new text begin PUBLIC SAFETY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 3,521,000
new text end

new text begin To the named official for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Camp Ripley Training Facility
new text end

3,521,000

new text begin To the adjutant general to predesign, design,
construct, and equip a joint emergency railroad
and pipeline emergency response training
facility at Camp Ripley. The project includes
construction of stations and capital
infrastructure needed for mock disaster
training, including infrastructure for training
in hazardous materials abatement and site
recovery work.
new text end

Sec. 14. new text begin TRANSPORTATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 238,565,000
new text end

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

new text begin Subd. 2. new text end

new text begin Local Bridge Replacement and
Rehabilitation
new text end

59,000,000

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

new text begin Subd. 3. new text end

new text begin Local Road Improvement Fund Grants
new text end

107,691,000

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

new text begin (b) Of this amount, $9,000,000 is for a grant
to Anoka County to realign and make
associated improvements to County State-Aid
Highway 23 (Lake Drive), County State-Aid
Highway 54 (West Freeway Drive), and to
Hornsby Street in the city of Columbus.
new text end

new text begin (c) Of this amount, $3,246,000 is for a grant
to the city of Blaine to predesign, design, and
reconstruct 105th Avenue in the vicinity of
the National Sports Center in Blaine. The
reconstruction will include changing the street
from five lanes to four lanes with median, turn
lanes, sidewalk, trail, landscaping, lighting,
and consolidation of access driveways. This
appropriation is not available until the
commissioner of management and budget
determines that at least $3,000,000 is
committed to the project from sources
available to the city, including municipal state
aid and county turnback funds.
new text end

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

new text begin (e) Of this amount $10,500,000 is for one or
more grants to Carver County, the city of
Chaska, or both, for environmental analysis
and to acquire land, predesign, design,
engineer, and construct local road
improvements related to the marked U.S.
Highway 212 interchange project in Chaska.
new text end

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

new text begin Subd. 4. new text end

new text begin Rail Grade Separation on Crude Oil
Rail Corridors
new text end

57,024,000

new text begin (a) Of this amount, $42,262,000 is for a grant
to the city of Moorhead for environmental
analysis, design, engineering, removal of an
existing structure, and construction of a rail
grade crossing separation in the vicinity of
21st Street South.
new text end

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

new text begin (c) Any unspent portion of this appropriation
after completion of a project in this
subdivision may be used for grants in
accordance with Minnesota Statutes, section
219.016.
new text end

new text begin Subd. 5. new text end

new text begin Railroad Warning Devices
new text end

1,000,000

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

new text begin Subd. 6. new text end

new text begin Minnesota Valley Regional Railroad
Authority
new text end

4,000,000

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

new text begin Subd. 7. new text end

new text begin Hugo
new text end

1,100,000

new text begin For a grant to the Minnesota Commercial
Railway for construction, repairs, and other
capital improvements to approximately 6.5
miles of railroad track described as that portion
of the Minnesota Commercial Railway main
running lead, between M & D Junction in
White Bear Lake and the end of the track in
Hugo. This appropriation must be used for the
purposes set forth in the Minnesota
Constitution, article XI, section 5, clause (i),
to improve and rehabilitate railroad
rights-of-way and other rail facilities, whether
public or private.
new text end

new text begin Subd. 8. new text end

new text begin Port Development Assistance
new text end

5,000,000

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

new text begin Subd. 9. new text end

new text begin International Falls-Koochiching County
Airport Commission
new text end

3,000,000

new text begin (a) For a grant to the International
Falls-Koochiching County Airport
Commission for the following improvements
to the Falls International Airport:
new text end

new text begin (1) demolition of the existing terminal
building;
new text end

new text begin (2) rehabilitation;
new text end

new text begin (3) site preparation, including utilities and civil
work;
new text end

new text begin (4) design, construction, furnishing, and
equipping Phase II of the new terminal
building, including a Transportation Safety
Administration office, weather office,
conference room, circulation corridor, airport
administration offices, United States Customs
and Border Protection storage rooms, offices,
restrooms, passenger-processing area,
wet-hold room, interview room, search room,
precustoms and postcustoms passenger waiting
areas, and vestibule; and
new text end

new text begin (5) associated appurtenances of a capital
nature.
new text end

new text begin (b) After completion of the improvements
under paragraph (a), any unspent money from
this appropriation may be used by the
International Falls-Koochiching County
Airport Commission for a commercial airline
apron expansion project at the Falls
International Airport.
new text end

new text begin (c) This appropriation does not require a
nonstate contribution or match.
new text end

new text begin Subd. 10. new text end

new text begin Grand Rapids - Pedestrian Bridge
new text end

750,000

new text begin For a grant to the city of Grand Rapids to
design the construction of a bridge over the
Mississippi River for pedestrian and bicycle
use to provide a safe alternative route to the
existing marked Trunk Highway 169 vehicle
bridge, and to serve as a connection to existing
trail systems on each side of the river. This
appropriation is not available until the
commissioner determines that at least an equal
amount has been committed to the project
from nonstate sources.
new text end

Sec. 15. new text begin METROPOLITAN COUNCIL
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 3,739,000
new text end

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

new text begin Subd. 2. new text end

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

3,739,000

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

Sec. 16. new text begin HUMAN SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 9,780,000
new text end

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

new text begin Subd. 2. new text end

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

7,530,000

new text begin (a) To predesign, design, construct, furnish,
and equip a new community-based 16-bed
psychiatric hospital facility to house the Child
and Adolescent Behavioral Health Services
(CABHS) program to be located in or near the
city of Willmar. This appropriation includes
funds for land purchase, surveying, predesign
and design fees, construction administration,
project management, site work, site and
building infrastructure, construction, and
furniture, fixtures, and equipment.
new text end

new text begin (b) Notwithstanding any law to the contrary,
the 16 hospital beds licensed to the CABHS's
facility on January 1, 2017, by the Department
of Health, may transfer to this new facility
upon completion, and approved inspection by
the Departments of Health and Human
Services.
new text end

new text begin Subd. 3. new text end

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

2,250,000

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

Sec. 17. new text begin VETERANS AFFAIRS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 5,000,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

5,000,000

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

Sec. 18. new text begin CORRECTIONS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 20,000,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

20,000,000

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

Sec. 19. new text begin EMPLOYMENT AND ECONOMIC
DEVELOPMENT
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 42,272,000
new text end

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

new text begin Subd. 2. new text end

new text begin Transportation Economic Development
new text end

7,000,000

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

new text begin Subd. 3. new text end

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

12,000,000

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

new text begin Subd. 4. new text end

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

2,500,000

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

new text begin Subd. 5. new text end

new text begin Eagle's Healing Nest
new text end

300,000

new text begin From the general fund for a grant to Eagle's
Healing Nest in Sauk Centre.
new text end

new text begin Subd. 6. new text end

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

3,000,000

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

new text begin Subd. 7. new text end

new text begin Minneapolis - Pioneers and Soldiers
Cemetery Restoration
new text end

1,029,000

new text begin For a grant to the city of Minneapolis to
restore the historic steel and limestone pillar
fence along Cedar Avenue and Lake Street,
install a new steel fence and pillars along 21st
Avenue South, and install a waterproofing
system for preservation of the fence and
pillars, at the Pioneer and Soldiers Cemetery.
This appropriation does not require a nonstate
contribution.
new text end

new text begin Subd. 8. new text end

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

3,443,000

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

new text begin Subd. 9. new text end

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

13,000,000

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

Sec. 20. new text begin PUBLIC FACILITIES AUTHORITY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 114,963,000
new text end

new text begin To the Public Facilities Authority for the
purposes specified in this section. The Public
Facilities Authority may use the funds in this
section or other available funds to amend
project financing agreements awarded after
July 1, 2016, based on program changes to
Minnesota Statutes, sections 446A.072 and
446A.073, in article 2 of this act.
new text end

new text begin Subd. 2. new text end

new text begin State Match for Federal Grants
new text end

17,000,000

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

new text begin Subd. 3. new text end

new text begin Water Infrastructure Funding Program
new text end

55,000,000

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

new text begin (b) $40,000,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range under
the clean water revolving fund program.
new text end

new text begin (c) $15,000,000 is for drinking water projects
listed on the Department of Health's project
priority list in the fundable range under the
drinking water revolving fund program.
new text end

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

new text begin Subd. 4. new text end

new text begin Point Source Implementation Grants
Program
new text end

33,737,000

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

new text begin Subd. 5. new text end

new text begin Big Lake Area Sanitary District - Sewer
System and Force Main
new text end

1,200,000

new text begin For a grant to the Big Lake Area Sanitary
District to construct a pressure sewer system
and force main to convey sewage to the
Western Lake Superior Sanitary District
connection in the city of Cloquet. This
appropriation is not available until the
commissioner of management and budget
determines that an equal amount is committed
from nonstate sources. This appropriation is
in addition to the appropriation in Laws 2014,
chapter 294, article 1, section 22, subdivision
4.
new text end

new text begin Subd. 6. new text end

new text begin Dennison - Sewage Treatment System
Improvements
new text end

726,000

new text begin For a grant to the city of Dennison to
predesign, design, and construct a new lift
station and make sewage pond improvements.
This appropriation does not require a nonstate
contribution.
new text end

new text begin Subd. 7. new text end

new text begin East Grand Forks - Wastewater
Interconnection Infrastructure
new text end

5,300,000

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

new text begin Subd. 8. new text end

new text begin Koochiching County - Voyageurs
National Park Clean Water Project
new text end

2,000,000

new text begin (a) For a grant to Koochiching County to
acquire land or interests in land, and to design,
engineer, construct, and equip sanitary sewage
systems and facilities to implement a portion
or portions of the Voyageurs National Park
clean water project comprehensive plan. This
appropriation is available after the
commissioner of management and budget
determines that $4,500,000 is committed from
nonstate sources.
new text end

new text begin (b) This appropriation is in addition to the
appropriation in Laws 2014, chapter 294,
article 1, section 22, subdivision 7.
Notwithstanding the match requirement in
Laws 2014, chapter 294, article 1, section 22,
subdivision 7, the nonstate match required for
this appropriation and the 2014 appropriation
for a grant to Koochiching County is 25
percent of the state grant amounts. Any money
remaining from this appropriation after
completion of the projects in paragraph (a) is
available for grants to Koochiching County
or St. Louis County to be used for other capital
projects described in the comprehensive plan
and as determined by the Voyageurs National
Park Clean Water Joint Powers Board.
new text end

Sec. 21. new text begin MINNESOTA HOUSING FINANCE
AGENCY
new text end

new text begin $
new text end

new text begin 10,000,000
new text end

new text begin For transfer to the housing development fund
to finance the costs of rehabilitation to
preserve public housing under Minnesota
Statutes, section 462A.202, subdivision 3a.
For purposes of this section, "public housing"
means housing for low-income persons and
households financed by the federal
government and owned and operated by the
public housing authorities and agencies formed
by cities and counties. Public housing
authorities receiving a public housing
assessment composite score of 80 or above or
an equivalent designation are eligible to
receive funding. Priority must be given to
proposals that maximize federal or local
resources to finance the capital costs. The
priority in Minnesota Statutes, section
462A.202, subdivision 3a, for projects to
increase the supply of affordable housing and
the restrictions of Minnesota Statutes, section
462A.202, subdivision 7, do not apply to this
appropriation.
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 2,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Historic Sites Asset Preservation
new text end

2,500,000

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

Sec. 23. new text begin BOND SALE EXPENSES
new text end

new text begin $
new text end

new text begin 621,000
new text end

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

Sec. 24. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this act from
the bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $453,986,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Transportation fund. new text end

new text begin To provide the money appropriated in this act from the
state transportation fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $166,691,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

Sec. 25. new text begin CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
new text end

new text begin (a) The remaining uncommitted appropriations from the bond proceeds fund in Laws
1990, chapter 610, are canceled and the bond sale authorization in Laws 1990, chapter 610,
article 1, section 30, subdivision 1, as amended, is reduced by $3,129.
new text end

new text begin (b) The remaining uncommitted appropriations from the bond proceeds fund in Laws
1994, chapter 643, are canceled and the bond sale authorization in Laws 1994, chapter 643,
section 31, subdivision 1, as amended, is reduced by $24,480.
new text end

new text begin (c) The remaining uncommitted appropriations from the bond proceeds fund in Laws
1997, Second Special Session chapter 2, are canceled and the bond sale authorization in
Laws 1997, Second Special Session chapter 2, section 12, as amended, is reduced by $96,992.
new text end

new text begin (d) The remaining uncommitted appropriations from the bond proceeds fund in Laws
1999, chapter 240, are canceled and the bond sale authorization in Laws 1999, chapter 240,
article 1, section 13, subdivision 1, as amended, is reduced by $212,472.
new text end

new text begin (e) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2000, chapter 492, are canceled and the bond sale authorization in Laws 2000, chapter 492,
article 1, section 26, subdivision 1, as amended, is reduced by $7,933,538.
new text end

new text begin (f) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2002, chapter 393, are canceled and the bond sale authorization in Laws 2002, chapter 393,
section 30, subdivision 1, as amended, is reduced by $188,471.
new text end

new text begin (g) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2002, First Special Session chapter 1, are canceled and the bond sale authorization in Laws
2002, First Special Session chapter 1, section 9, subdivision 1, is reduced by $217,959.
new text end

new text begin (h) The remaining uncommitted appropriations from the trunk highway bond proceeds
fund in Laws 2003, First Special Session chapter 19, article 3, are canceled and the bond
sale authorization in Laws 2003, First Special Session chapter 19, article 3, section 2, is
reduced by $201,530.
new text end

new text begin (i) The remaining uncommitted appropriations from the trunk highway bond proceeds
fund in Laws 2003, First Special Session chapter 19, article 4, are canceled and the bond
sale authorization in Laws 2003, First Special Session chapter 19, article 4, section 4, is
reduced by $326,534.
new text end

new text begin (j) The remaining uncommitted appropriations from the bond proceeds fund in Laws
2005, chapter 20, are canceled and the bond sale authorization in Laws 2005, chapter 20,
article 1, section 28, subdivision 1, as amended, is reduced by $3,366,628.
new text end

new text begin (k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First Special
Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is canceled
and the bond sale authorization in Laws 2011, First Special Session chapter 12, section 23,
subdivision 1, is reduced by the same amount.
new text end

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

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

new text begin (n) The $300,000 appropriation from the general fund in Laws 2015, First Special Session
chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.
new text end

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

new text begin The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2019, no more than $.......
will need to be transferred from the general fund to the state bond fund to pay principal and
interest due and to become due on outstanding state general obligation bonds. During the
biennium, before each sale of state general obligation bonds, the commissioner of
management and budget shall calculate the amount of debt service payments needed on
bonds previously issued and shall estimate the amount of debt service payments that will
be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount of
bonds scheduled to be sold so as to remain within the limit set by this section. The amount
needed to make the debt service payments is appropriated from the general fund as provided
in Minnesota Statutes, section 16A.641.
new text end

Sec. 27. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2016, section 16A.967, subdivision 2, is amended to read:

Subd. 2.

Authorization to issue appropriation bonds.

(a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law, including, in particular, the financing
of the land acquisition, design, engineering, and construction of facilities and infrastructure
necessary to complete the next phase of the Lewis and Clark Regional Water System project,
including completion of the pipeline to Magnolia, extension of the project to the
Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design,
and easement acquisition for the final phase of the project to Worthington. No bonds shall
be sold until the commissioner determines that a nonstate match of at least $9,000,000 is
committed to this project phase. Grant agreements entered into under this section must
provide for reimbursement to the state from any federal money provided for the project,
consistent with the Lewis and Clark Regional Water System, Inc., agreement.

(b) The appropriation bonds may be issued and sold only after the commissioner
determines that the construction and administration for work done on the project will comply
with (1) all federal requirements and regulations associated with the Lewis and Clark Rural
Water System Act of 2000, and (2) the cooperative agreement between the United States
Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds
of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond
proceeds fund in the state treasury. All income from investment of the bond proceeds, as
estimated by the commissioner, is appropriated to the commissioner for the payment of
principal and interest on the appropriation bonds.

(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the
commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of
costs of issuance, for the purposes as provided under paragraph (a), and pay debt service
including capitalized interest, costs of issuance, costs of credit enhancement, or make
payments under other agreements entered into under paragraph (e).

(d) Appropriation bonds may be issued in one or more issues or series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of appropriation bonds may not exceed 25 years. The appropriation bonds of
each issue and series thereof shall be dated and bear interest, and may be includable in or
excludable from the gross income of the owners for federal income tax purposes.

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

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

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

new text begin (h) Upon certification to the commissioner by the Lewis and Clark Joint Powers Board
that the bond sale authorization provided in paragraph (c) has fully met the needs of the
project described in paragraph (a), and to the extent there is additional authorization
remaining, this authorization is also available for land acquisition, design, engineering, and
construction of facilities and infrastructure necessary for Phase 3 of the Lewis and Clark
Regional Water System project. Phase 3 includes extension of the project from the
Lincoln-Pipestone Rural Water System connection near Adrian to Worthington, construction
of a reservoir in Nobles County and a meter building in Worthington, and acquisition and
installation of a supervisory control and data acquisition system.
new text end

Sec. 2.

Minnesota Statutes 2016, section 16A.967, subdivision 7, is amended to read:

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds and interest
credited to the special appropriation Lewis and Clark bond proceeds fund are appropriated
new text begin as follows: (1) new text end to the deleted text begin commissionerdeleted text end new text begin Public Facilities Authoritynew text end for new text begin a grant or grants to the
Lewis and Clark Joint Powers Board for new text end payment of capital expenses for the purposes
provided by subdivision 2, deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)deleted text begin ,deleted text end new text begin and (h); and (2) to the commissioner
for new text end debt service on the bonds including capitalized interest, nonsalary costs of issuance of
the bonds, costs of credit enhancement of the bonds and payments under any agreements
entered into under subdivision 2, paragraph (e), each as permitted by state and federal lawdeleted text begin ,
and such proceeds may be granted, loaned, or otherwise provided for the public purposes
provided by subdivision 2, paragraph (a)deleted text end .

Sec. 3.

new text begin [16C.053] ACCOMMODATION FOR HARD-OF-HEARING IN
STATE-FUNDED CAPITAL PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "public gathering space" means
a space that is constructed or renovated as part of the project: (1) that accommodates and
is intended to be used for gatherings of 15 or more people; and (2) in which audible
communications are integral to a use of the space.
new text end

new text begin Subd. 2. new text end

new text begin Accommodation for hard-of-hearing in state-funded capital projects. new text end

new text begin No
commissioner or agency head may approve a contract or grant state funds for a capital
improvement project to construct or renovate a public gathering space in a building unless:
new text end

new text begin (1) the project includes equipping the public gathering space, if the public gathering
space has or will have a permanent audio-amplification system, with audio-induction loops
to provide an electromagnetic signal for hearing aids and cochlear implants; and
new text end

new text begin (2) the project includes meeting the American National Standards Institute Acoustical
Performance Criteria, Design Requirements and Guidelines for Schools on maximum
background noise level and reverberation times in the public gathering space.
new text end

new text begin Subd. 3. new text end

new text begin Exemption. new text end

new text begin A commissioner or agency head may approve a contract or grant
state funds for a capital improvement project to construct or renovate a building that does
not meet a requirement of subdivision 2, when the commissioner or agency head determines
that meeting that requirement is not feasible, is in conflict with other requirements in law,
is in conflict with other project requirements, or that costs outweigh the benefits. The
commissioner must consult with the Commission of Deaf, Deafblind, and Hard-of-Hearing
Minnesotans before making the determination.
new text end

new text begin Subd. 4. new text end

new text begin Exemption reports. new text end

new text begin A commissioner or agency head who determines a contract
is exempt under subdivision 3 must report the exemption to the Commission of Deaf,
Deafblind, and Hard-of-Hearing Minnesotans within three months of making the
determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing
Minnesotans shall submit a report to the chairs and ranking minority members of the
committees in the house of representatives and senate with jurisdiction over state contracting
by January 30 of even-numbered years beginning in 2020 identifying each exemption
reported in the previous two calendar years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective the day following final enactment,
and, except as provided in paragraph (b), applies to any project funded with an appropriation
enacted after January 1, 2017.
new text end

new text begin (b) This section does not apply to a project that has completed schematic design on the
effective date of this section, but the commissioner and agency heads are encouraged to
comply with it.
new text end

Sec. 4.

Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:

Subd. 2.

Standards.

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

(b) An appropriation for asset preservation must not be used to acquire land or to acquire
or construct buildings or other facilities.

(c) Capital budget expenditures for natural resource asset preservation and replacement
projects must be for one or more of the following types of capital projects that support the
existing programmatic mission of the department: code compliance including health and
safety, Americans with Disabilities Act requirements, hazardous material abatement, access
improvement, or air quality improvement; building energy efficiency improvements using
current best practices; building or infrastructure repairs necessary to preserve the interior
and exterior of existing buildings; new text begin projects to remove life safety hazards such as building
code violations or structural defects; new text end or renovation of other existing improvements to land,
including but not limited to trails and bridges.

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

Sec. 5.

Minnesota Statutes 2016, section 85.34, subdivision 1, is amended to read:

Subdivision 1.

Upper bluff; lease terms.

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

Sec. 6.

Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:

Subd. 5.

Certification and disbursal for project of political subdivision.

Before
disbursement of an appropriation made from the fund to the commissioner of transportation
for grants to subdivisions of the state, the commissioner shall certifynew text begin thatnew text end :

(1) deleted text begin that the project for which the grant is made has been reviewed as provided in
subdivision 4;
deleted text end

deleted text begin (2) thatdeleted text end the project conforms to the program authorized by the appropriation law and
rules adopted by the Department of Transportation consistent therewith; and

deleted text begin (3) thatdeleted text end new text begin (2)new text end the financing of any estimated cost of the project in excess of the amount of
the grant is assured by the appropriation of the proceeds of bonds or other funds of the
subdivision, or by a grant from an agency of the federal government, within the amount of
funds then appropriated to that agency and allocated by it to projects within the state, and
by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to
use all funds so made available exclusively for the project, and to pay any additional amount
by which the cost exceeds the estimate through appropriation to the construction fund of
additional funds or the proceeds of additional bonds to be issued by the subdivision.

Sec. 7.

Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:

Subd. 6b.

Bridge costs in smaller cities.

(a) The commissioner may make grants from
the state transportation fund to a home rule or statutory city with a population of 5,000 or
less for design, engineering, and construction of bridges on city streets.

deleted text begin (b) Grants under this subdivision are subject to the procedures and criteria established
under subdivisions 5, 6, and 7.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end Grants may be used for:

(1) 100 percent of the design and engineering costs that are in excess of $10,000;

(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and

(3) 100 percent of the bridge construction work costs.

Sec. 8.

Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:

Subd. 6c.

Fracture-critical bridges.

deleted text begin (a)deleted text end The commissioner may make a grant to any
political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be
eligible for a grant under this subdivision, the project must produce a bridge structure:

(1) that is no longer classified as fracture critical, by having alternate load paths; and

(2) whose failure of a main component will not result in the collapse of the bridge.

deleted text begin (b) A grant under this subdivision is subject to the procedures and criteria established
under subdivisions 5 and 6.
deleted text end

Sec. 9.

Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:

Subd. 7.

Bridge grant program; rulemaking.

(a) The commissioner of transportation
shall develop rules, procedures for application for grants, conditions of grant administration,
standards, and criteria as provided under subdivision 6, including bridge specifications, in
cooperation with road authorities of political subdivisions, for use in the administration of
funds appropriated to the commissioner and for the administration of grants to subdivisions.
new text begin Grants under this section are subject to the procedures and criteria established in this
subdivision and in subdivisions 5 and 6.
new text end

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

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

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

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

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

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

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

new text begin (f) The maximum grant amount for a local bridge replacement or rehabilitation project
under this section is $7,000,000. If, in any year, money appropriated for local bridge
replacement or rehabilitation projects remains available after all projects on the
commissioner's priority list for which the state share is $7,000,000 or less have been funded,
the commissioner may make grants for more than $7,000,000.
new text end

Sec. 10.

new text begin [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin A hazardous materials rail safety program is established for
the purpose of reducing the risks associated with the transportation of hazardous material
by rail.
new text end

new text begin Subd. 2. new text end

new text begin Creation of account. new text end

new text begin A hazardous materials rail safety program account is
established in the bond proceeds fund. Money in the account may only be used for capital
costs associated with planning, engineering, administration, and construction of public
highway-rail grade crossing improvements on rail corridors transporting crude oil and other
hazardous materials. Improvements may include upgrades to existing protection systems,
the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings
to full grade separations.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The commissioner may approve grants for financial assistance to
eligible applicants for capital costs associated with hazardous materials rail safety projects
on public highway-rail grade crossings. Qualifying capital costs include, but are not limited
to, upgrades to existing protection systems, the closing of crossings and necessary roadwork,
and reconstruction of at-grade crossings to full grade separations.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

new text begin Counties, statutory or home rule charter cities, or towns
that are responsible for establishing and maintaining public highway-rail grade crossings
on rail corridors transporting crude oil and other hazardous materials may apply to the
commissioner for financial assistance for the purposes in this section.
new text end

new text begin Subd. 5. new text end

new text begin Criteria for grant award. new text end

new text begin The commissioner shall consider the following
criteria to evaluate applications for a grant award for a hazardous materials rail safety project:
new text end

new text begin (1) whether the crossing was identified as a potential candidate for grade separation in
MnDOT's crude by rail grade crossing study (Improvements to Highway Grade Crossings
and Rail Safety, December 2014);
new text end

new text begin (2) roadway traffic volumes and speeds;
new text end

new text begin (3) train volumes and speeds;
new text end

new text begin (4) adjacent land use;
new text end

new text begin (5) crash history;
new text end

new text begin (6) use of the crossing by emergency vehicles;
new text end

new text begin (7) use of the crossing by vehicles carrying hazardous materials; and
new text end

new text begin (8) local financial contributions to the project.
new text end

Sec. 11.

Minnesota Statutes 2016, section 446A.072, is amended to read:

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

Subdivision 1.

Establishment of program.

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

Subd. 3.

Program administration.

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

(1) whose projects are listed on the Pollution Control Agency's project priority listnew text begin or
the Department of Health's project priority listnew text end ;

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

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

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

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

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

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

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

Subd. 5a.

Type and amount of assistance.

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

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

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

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

deleted text begin Subd. 5b. deleted text end

deleted text begin Special assessment deferral. deleted text end

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

Subd. 6.

Disbursements.

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

deleted text begin Subd. 7. deleted text end

deleted text begin Loan repayments. deleted text end

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

Subd. 8.

Eligibility.

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

Subd. 9.

Funding limitation.

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

Subd. 11.

Report on needs.

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

Subd. 12.

System replacement fund.

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

Subd. 14.

Consistency with land use plans.

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

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

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

(3) the county has adopted specific land use ordinances or controls so as to meet or
exceed the requirements of Minnesota Rules, part 7082.0050.

Sec. 12.

Minnesota Statutes 2016, section 446A.073, is amended to read:

446A.073 POINT SOURCE IMPLEMENTATION GRANTS.

Subdivision 1.

Program established.

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

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

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

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

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

Subd. 2.

Grant application.

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

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

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

Subd. 3.

Project priorities.

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

Subd. 4.

Grant approval.

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

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

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

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

Subd. 5.

Grant disbursement.

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

Sec. 13.

Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:

Subd. 9.

Other uses of fund.

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

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

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

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

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

(5) to earn interest on fund accounts;

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

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

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

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

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

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

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

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

Sec. 14.

Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

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

Sec. 15.

Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:

Subd. 2a.

Additional authorization.

In addition to the amount authorized in subdivision
2, the agency may issue up to deleted text begin $80,000,000deleted text end new text begin $95,000,000new text end of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.

Sec. 16.

Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:

Subd. 2b.

Additional authorization.

In addition to the amount authorized in subdivisions
2 and 2a, the agency may issue up to deleted text begin $10,000,000deleted text end new text begin $15,000,000new text end of housing infrastructure
bonds in one or more series to which the payments made under this section may be pledged.

Sec. 17.

Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 2013,
chapter 136, section 13, is amended to read:

Subd. 6.

Systemwide Redevelopment, Reuse, or
Demolition

5,000,000

To abate hazardous materials, design,
construct, or improve basic infrastructure,
including sanitary and storm sewer and water
lines, public streets, curb, gutter, street lights,
or sidewalks, to make improvements for
building envelope and structural integrity for
the purposes of stabilizing the buildings for
sale, demolish all or portions of surplus,
nonfunctional, or deteriorated facilities and
infrastructure or to renovate surplus,
nonfunctional, or deteriorated facilities and
infrastructure to facilitate redevelopment of
Department of Human Services campuses that
the commissioner of administration is
authorized to convey to a local unit of
government under Laws 2005, chapter 20,
article 1, section 46, or other law. These
projects must facilitate the redevelopment or
reuse of these campuses and must be
implemented consistent with the
comprehensive redevelopment plans
developed and approved under Laws 2003,
First Special Session chapter 14, article 6,
section 64, subdivision 2, unless expressly
provided otherwise. If a surplus campus is sold
or transferred to a local unit of government,
unspent portions of this appropriation may be
granted to that local unit of government for
the purposes stated in this subdivision.
Notwithstanding new text begin the inclusion of the
unencumbered and unobligated balance of the
bond sale authorization and appropriation of
bond proceeds in this subdivision in the report
submitted to the legislature in January 2017
pursuant to new text end Minnesota Statutes, section
16A.642, thenew text begin unencumbered and obligated
balance of thenew text end bond sale authorization and
appropriation of bond proceeds in this
subdivision deleted text begin aredeleted text end new text begin , estimated to be $1,991,456.32,
is reauthorized andnew text end available until December
31, deleted text begin 2016deleted text end new text begin 2020new text end .

Sec. 18.

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

Subd. 3.

Dam Repair, Reconstruction, and
Removal

3,000,000

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

Sec. 19.

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

Subd. 12.

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

2,000,000

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

Sec. 20.

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

Subd. 3.

Local Road Improvement Fund Grants

8,910,000

(a) From the bond proceeds account in the
state transportation fund as provided in
Minnesota Statutes, section 174.50, for
construction and reconstruction of local roads
with statewide or regional significance under
Minnesota Statutes, section 174.52,
subdivision 4, or for grants to counties to assist
in paying the costs of rural road safety capital
improvement projects on county state-aid
highways under Minnesota Statutes, section
174.52, subdivision 4a.

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

(c) This appropriation includes $3,770,000 for
a grant to Kandiyohi County for construction
and reconstruction of local roads deleted text begin to facilitate
the construction of highway-rail grade
separations at U.S. Highway 12 and Minnesota
Highway 40 as part ofdeleted text end new text begin in conjunction with new text end the
Willmar Wye projectnew text begin as well as to re-establish
the local road network on the southwest side
of Willmarnew text end .

Sec. 21.

Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7,
is amended to read:

Subd. 7.

Richfield - 77th Street Underpass

10,000,000

For a grant to the city of Richfield for
right-of-way acquisition deleted text begin and construction ofdeleted text end new text begin
fornew text end an extension of 77th Street under marked
Trunk Highway 77/Cedar Avenue in the city
of Richfield to provide local and regional
access between Richfield, the Minneapolis/St.
Paul International Airport, the city of
Bloomington, and the Mall of America.new text begin After
right-of-way acquisition is completed, the city
may use any remaining money appropriated
in this subdivision for construction of the
extension. Notwithstanding Minnesota
Statutes, section 16A.642, the bond sale
authorization and appropriation of bond
proceeds for the project in this subdivision are
available until December 31, 2021.
new text end

Sec. 22. new text begin NATIONAL SPORTS CENTER; LEASE.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 16A.695, 16B.24, and 240A.03, subdivision
6, the Minnesota Amateur Sports Commission may lease for educational purposes that
portion of property described as a portion of the property acquired by the commission
pursuant to Laws 1987, chapter 400, section 8, subdivision 3, not currently needed for
amateur sports purposes to Independent School District No. 16, Spring Lake Park. The lease
shall be in a form approved by the attorney general and for a term not to exceed 99 years.
The lease may provide for the provision of capital improvements or other performance by
the tenant in lieu of all or some of the payments of rent that would otherwise be required.
Any lease revenues paid to the commission are appropriated to the commission.
new text end

Sec. 23. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall replace references to Minnesota
Statutes, section 123A.446, with Minnesota Statutes, section 123A.445.
new text end

Sec. 24. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 123A.446, new text end new text begin is repealed.
new text end

Sec. 25. new text begin EFFECTIVE DATE.
new text end

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

HF 892

Bill Text Versions

ARTICLE 1

APPROPRIATIONS

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

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

new text begin Subd. 3. new text end

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

new text begin Subd. 4. new text end

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

new text begin Subd. 5. new text end

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

new text begin Subd. 6. new text end

new text begin Debt Service new text end

new text begin Subd. 7. new text end

new text begin Unspent Appropriations new text end

Sec. 4. new text begin EDUCATIONnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Library Construction Grants new text end

new text begin Subd. 3. new text end

new text begin Olmsted County - Dyslexia Institute of Minnesota new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Asset Preservation new text end

new text begin Subd. 3. new text end

new text begin Security Corridor new text end

Sec. 6. new text begin NATURAL RESOURCESnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Natural Resources Asset Preservation new text end

new text begin Subd. 3. new text end

new text begin Flood Hazard Mitigation new text end

new text begin Subd. 4. new text end

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

new text begin Subd. 5. new text end

new text begin Reforestation and Stand Improvement new text end

new text begin Subd. 6. new text end

new text begin Champlin - Mill Pond new text end

new text begin Subd. 7. new text end

new text begin Lake County - Prospectors ATV Trail System new text end

new text begin Subd. 8. new text end

new text begin Unspent Appropriations new text end

Sec. 7. new text begin POLLUTION CONTROL AGENCYnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin St. Louis River Cleanup new text end

new text begin Subd. 3. new text end

new text begin Capital Assistance Program new text end

Sec. 8. new text begin BOARD OF WATER AND SOIL RESOURCESnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

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

new text begin Subd. 3. new text end

new text begin Local Government Roads Wetland Replacement Program new text end

Sec. 9. new text begin MINNESOTA ZOOLOGICAL GARDENnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Asset Preservation new text end

Sec. 10. new text begin ADMINISTRATIONnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Capitol Complex - Physical Security Upgrades new text end

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

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

new text begin Total Appropriation
new text end

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

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

new text begin Total Appropriation
new text end

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

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

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

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

new text begin Debt Service
new text end

new text begin Unspent Appropriations
new text end

Sec. 4. new text begin EDUCATION
new text end

new text begin Total Appropriation
new text end

new text begin Library Construction Grants
new text end

new text begin Olmsted County - Dyslexia Institute of
Minnesota
new text end

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

new text begin Total Appropriation
new text end

new text begin Asset Preservation
new text end

new text begin Security Corridor
new text end

Sec. 6. new text begin NATURAL RESOURCES
new text end

new text begin Total Appropriation
new text end

new text begin Natural Resources Asset Preservation
new text end

new text begin Flood Hazard Mitigation
new text end

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

new text begin Reforestation and Stand Improvement
new text end

new text begin Champlin - Mill Pond
new text end

new text begin Lake County - Prospectors ATV Trail
System
new text end

new text begin Unspent Appropriations
new text end

Sec. 7. new text begin POLLUTION CONTROL AGENCY
new text end

new text begin Total Appropriation
new text end

new text begin St. Louis River Cleanup
new text end

new text begin Capital Assistance Program
new text end

Sec. 8. new text begin BOARD OF WATER AND SOIL
RESOURCES
new text end

new text begin Total Appropriation
new text end

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

new text begin Local Government Roads Wetland
Replacement Program
new text end

Sec. 9. new text begin MINNESOTA ZOOLOGICAL GARDEN
new text end

new text begin Total Appropriation
new text end

new text begin Asset Preservation
new text end

Sec. 10. new text begin ADMINISTRATION
new text end

new text begin Total Appropriation
new text end

new text begin Capitol Complex - Physical Security
Upgrades
new text end

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

Sec. 11. new text begin MN.IT
new text end

Sec. 12. new text begin MILITARY AFFAIRS
new text end

new text begin Total Appropriation
new text end

new text begin Asset Preservation
new text end

Sec. 13. new text begin PUBLIC SAFETY
new text end

new text begin Total Appropriation
new text end

new text begin Camp Ripley Training Facility
new text end

Sec. 14. new text begin TRANSPORTATION
new text end

new text begin Total Appropriation
new text end

new text begin Local Bridge Replacement and
Rehabilitation
new text end

new text begin Local Road Improvement Fund Grants
new text end

new text begin Rail Grade Separation on Crude Oil
Rail Corridors
new text end

new text begin Railroad Warning Devices
new text end

new text begin Minnesota Valley Regional Railroad
Authority
new text end

new text begin Hugo
new text end

new text begin Port Development Assistance
new text end

new text begin International Falls-Koochiching County
Airport Commission
new text end

new text begin Grand Rapids - Pedestrian Bridge
new text end

Sec. 15. new text begin METROPOLITAN COUNCIL
new text end

new text begin Total Appropriation
new text end

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

Sec. 16. new text begin HUMAN SERVICES
new text end

new text begin Total Appropriation
new text end

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

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

Sec. 17. new text begin VETERANS AFFAIRS
new text end

new text begin Total Appropriation
new text end

new text begin Asset Preservation
new text end

Sec. 18. new text begin CORRECTIONS
new text end

new text begin Total Appropriation
new text end

new text begin Asset Preservation
new text end

Sec. 19. new text begin EMPLOYMENT AND ECONOMIC
DEVELOPMENT
new text end

new text begin Total Appropriation
new text end

new text begin Transportation Economic Development
new text end

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

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