SF 21

as introduced - 94th Legislature, 2025 1st Special Session (2025 - 2025) Posted on 06/10/2025 09:45am

A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and for other improvements of a capital nature with certain
conditions; establishing new programs and modifying existing programs; modifying
prior appropriations; authorizing the sale and issuance of state bonds; appropriating
money; amending Minnesota Statutes 2024, sections 16A.501; 116.182, subdivision
5; 446A.07, subdivision 8; 446A.072, subdivision 5a; 446A.073, subdivision 1,
as amended; 446A.081, subdivision 9; Laws 2013, chapter 143, article 12, section
21; Laws 2020, Fifth Special Session chapter 3, article 1, sections 16, subdivision
34; 17, subdivision 13, as amended; Laws 2023, chapter 71, article 1, sections 9,
subdivision 12; 11, subdivision 7; 14, subdivisions 24, 49, 67, as amended, 81, as
amended, 93, as amended, 97; 15, subdivisions 7, 16; Laws 2023, chapter 72,
article 1, sections 7, subdivision 18; 16, subdivision 15; article 2, section 2;
proposing coding for new law in Minnesota Statutes, chapters 115B; 446A; 462A;
repealing Minnesota Statutes 2024, sections 16A.662; 116J.417, subdivision 9.

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

ARTICLE 1

APPROPRIATIONS

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

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

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

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

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

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

new text begin APPROPRIATIONS new text end

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

new text begin $ new text end

new text begin 60,000,000 new text end

new text begin To the Board of Regents of the University of
Minnesota 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 84,000,000 new text end

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

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

new text begin 60,000,000 new text end

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

new text begin Subd. 3. new text end new text begin Alexandria Technical and Community College new text end

new text begin 24,000,000 new text end

new text begin To construct, furnish, and equip a new
Transportation Center building at Alexandria
Technical and Community College. This
appropriation may also be used for the
demolition of buildings rendered obsolete by
the new Transportation Center and for the
renovation, furnishing, and equipping of
student services spaces.
new text end

new text begin Subd. 4. 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. 5. new text end new text begin Unspent Appropriations new text end

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

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

Sec. 4. new text begin EDUCATION new text end

new text begin $ new text end

new text begin 750,000 new text end

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

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

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin To the commissioner of administration 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

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

new text begin $ new text end

new text begin 1,260,000 new text end

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

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

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

new text begin $ new text end

new text begin 44,000,000 new text end

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

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

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

new text begin 33,000,000 new text end

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

new text begin Subd. 3. new text end new text begin Accessibility new text end

new text begin 1,000,000 new text end

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

new text begin Subd. 4. new text end new text begin Flood Hazard Mitigation new text end

new text begin 9,000,000 new text end

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

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

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

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

new text begin Subd. 5. new text end new text begin Reforestation new text end

new text begin 1,000,000 new text end

new text begin 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 Unspent Appropriations new text end

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

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

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

new text begin $ new text end

new text begin 12,000,000 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 Statewide Drinking Water Contamination Mitigation Program new text end

new text begin 6,000,000 new text end

new text begin For projects or grants under Minnesota
Statutes, section 115B.245.
new text end

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

new text begin 6,000,000 new text end

new text begin For grants under the capital assistance program
under Minnesota Statutes, section 115A.54.
new text end

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

new text begin $ new text end

new text begin 5,000,000 new text end

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

Sec. 10. new text begin MINNESOTA ZOOLOGICAL GARDEN new text end

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

new text begin $ new text end

new text begin 13,740,000 new text end

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

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

new text begin 2,740,000 new text end

new text begin For capital asset preservation improvements
and betterments to infrastructure and exhibits
at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding the specified uses
of money under Minnesota Statutes, section
16B.307, this appropriation may be used to
replace buildings that are in poor condition,
outdated, and no longer support the work of
the Minnesota Zoological Garden; to construct
and renovate trails and roads on the Minnesota
Zoological Garden site; and to renovate animal
exhibits to meet modern animal welfare
standards, address animal and staff safety
issues, and improve the viewing experience
for guests.
new text end

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

new text begin 11,000,000 new text end

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

Sec. 11. new text begin ADMINISTRATION new text end

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

new text begin $ new text end

new text begin 11,500,000 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 Capital Asset Preservation and Replacement Account new text end

new text begin 1,000,000 new text end

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

new text begin Subd. 3. new text end new text begin Capitol Complex - Physical Security Upgrades Phase III new text end

new text begin 2,000,000 new text end

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

new text begin Subd. 4. new text end new text begin Capitol Tunnel new text end

new text begin 8,500,000 new text end

new text begin To design, construct, and equip improvements
to bring a portion of the tunnel under Rev. Dr.
Martin Luther King Jr. Boulevard and to the
east to the State Capitol into compliance with
the Americans with Disabilities Act.
new text end

Sec. 12. new text begin AMATEUR SPORTS COMMISSION new text end

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

new text begin $ new text end

new text begin 6,000,000 new text end

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

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

new text begin 5,000,000 new text end

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

new text begin Subd. 3. new text end new text begin Mighty Ducks new text end

new text begin 1,000,000 new text end

new text begin For grants to local units of government under
Minnesota Statutes, section 240A.09. This
appropriation must not be used to acquire ice
resurfacing or edging equipment.
new text end

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

new text begin $ new text end

new text begin 67,000,000 new text end

new text begin To the commissioner of administration to
design, construct, furnish, and equip a new
Bureau of Criminal Apprehension regional
office and laboratory facility in Mankato. This
appropriation may also be used to design and
complete hazardous materials abatement. This
appropriation may also be used to fund the
state's portion of the cost to extend Bassett
Drive to serve the project site.
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 80,000,000 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 Road Improvement Program new text end

new text begin 47,000,000 new text end

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

new text begin (b) $5,000,000 of this appropriation is for
grants to townships for capital improvements
to township roads.
new text end

new text begin Subd. 3. new text end new text begin Local Bridge Replacement Program new text end

new text begin 31,000,000 new text end

new text begin (a) 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 (b) $11,000,000 of this appropriation is for
grants for major local bridges under Minnesota
Statutes, section 174.50, subdivision 6d. The
appropriation under this paragraph may be
used for other costs, including design,
construction engineering, approach
reconstruction work identified within the
project limits, and right-of-way acquisition.
new text end

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

new text begin 1,000,000 new text end

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

new text begin Subd. 5. new text end new text begin Minnesota Rail Service Improvement Program new text end

new text begin 1,000,000 new text end

new text begin For rail service improvement grants under
Minnesota Statutes, section 222.50.
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 16,000,000 new text end

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

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

new text begin 15,000,000 new text end

new text begin For inflow and infiltration grants under
Minnesota Statutes, section 473.5491.
new text end

new text begin Subd. 3. new text end new text begin Community Tree-Planting Grants new text end

new text begin 1,000,000 new text end

new text begin For community tree-planting grants under
Minnesota Statutes, section 473.355.
new text end

Sec. 16. new text begin DIRECT CARE AND TREATMENT 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 62,500,000 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 Asset Preservation new text end

new text begin 7,500,000 new text end

new text begin For asset preservation improvements and
betterments of a capital nature, to be spent in
accordance with Minnesota Statutes, section
16B.307, at facilities operated by Direct Care
and Treatment following the department's
separation from the Department of Human
Services.
new text end

new text begin Subd. 3. new text end new text begin Miller Building Replacement new text end

new text begin 55,000,000 new text end

new text begin To design, construct, furnish, and equip a new
50-bed psychiatric residential treatment
facility and associated site improvements on
the campus of the Anoka Metro Regional
Treatment Center. This appropriation may also
be used to design and complete demolition of
the Miller Building located on the campus of
the Anoka Metro Regional Treatment Center,
and associated site improvements, and to
design and complete hazardous materials
abatement. Notwithstanding Minnesota
Statutes, section 16B.31, subdivision 2, the
Executive Board of Direct Care and Treatment
may use operating funds to complete the
project.
new text end

Sec. 17. new text begin CHILDREN, YOUTH, AND FAMILIES new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin To the commissioner of Children, Youth, and
Families for grants under Minnesota Statutes,
section 142A.46, to predesign, design,
construct, renovate, furnish, and equip early
childhood learning facilities.
new text end

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

new text begin $ new text end

new text begin 7,500,000 new text end

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

Sec. 19. new text begin CORRECTIONS new text end

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

new text begin $ new text end

new text begin 40,400,000 new text end

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

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

new text begin 33,000,000 new text end

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

new text begin Subd. 3. new text end new text begin Minnesota Correctional Facility - Lino Lakes new text end

new text begin 7,400,000 new text end

new text begin To construct, renovate, furnish, and equip an
existing building and complete associated site
work at the Minnesota Correctional Facility -
Lino Lakes to construct an incarcerated
persons programming and support space. The
renovation of the existing building includes
but is not limited to the removal of hazardous
materials, upgrades to comply with current
codes, interior demolition, and the construction
of spaces appropriate for programming
functions. This appropriation is in addition to
the appropriation for the same purpose in Laws
2023, chapter 72, article 1, section 20,
subdivision 3.
new text end

new text begin Subd. 4. new text end new text begin Unspent Appropriations new text end

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

Sec. 20. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

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

new text begin $ new text end

new text begin 3,000,000 new text end

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

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

new text begin 1,500,000 new text end

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

new text begin Subd. 3. new text end new text begin Transportation Economic Development Infrastructure new text end

new text begin 1,500,000 new text end

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

Sec. 21. new text begin PUBLIC FACILITIES AUTHORITY new text end

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

new text begin $ new text end

new text begin 176,000,000 new text end

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

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

new text begin 39,000,000 new text end

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

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

new text begin 87,000,000 new text end

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

new text begin (b) $43,500,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range under
the clean water revolving fund program.
new text end

new text begin (c) $43,500,000 is for drinking water projects
listed on the commissioner of health's project
priority list in the fundable range under the
drinking water revolving fund program.
new text end

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

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

new text begin 32,000,000 new text end

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

new text begin Subd. 5. new text end new text begin Emerging Contaminants Grant Program new text end

new text begin 18,000,000 new text end

new text begin For grants to eligible municipalities under the
Emerging Contaminants Grant Program under
Minnesota Statutes, section 446A.082.
new text end

Sec. 22. new text begin MINNESOTA HOUSING FINANCE 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 29,000,000 new text end

new text begin To the Minnesota Housing Finance Agency
for the purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Public Housing Rehabilitation new text end

new text begin 26,000,000 new text end

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

new text begin Subd. 3. new text end new text begin Cooperative Manufactured Housing Infrastructure new text end

new text begin 3,000,000 new text end

new text begin For grants under the cooperative manufactured
housing infrastructure grant program under
Minnesota Statutes, section 462A.2036.
new text end

Sec. 23. 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 5,000,000 new text end

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

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

new text begin 4,000,000 new text end

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

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

new text begin 1,000,000 new text end

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

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

new text begin (a) To provide the money appropriated in this act from the bond proceeds fund, and to
provide for expenses authorized in Minnesota Statutes, section 16A.641, subdivision 8,
paragraph (c), the commissioner of management and budget shall sell and issue bonds of
the state in an amount up to $649,365,000 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 (b) To provide the money appropriated in this act from the bond proceeds account in
the state transportation fund, and to provide for expenses authorized in Minnesota Statutes,
section 16A.641, subdivision 8, paragraph (c), the commissioner of management and budget
shall sell and issue bonds of the state in an amount up to $78,000,000 in the manner, upon
the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675,
and by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

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

new text begin The amounts of the general obligation bond proceeds appropriations listed in the
cancellation report submitted to the legislature in 2025, pursuant to Minnesota Statutes,
section 16A.642, are canceled on the effective date of this section, with the exception of
appropriations and related bond sale authorizations that are extended in article 3. The
corresponding bond sale authorizations are reduced by the same amounts. If an appropriation
in this section is canceled more than once, the cancellation must be given effect only once.
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, 2027, no more than
$1,205,280,000 will need to be transferred from the general fund to the state bond fund to
pay principal and interest due and to become due on outstanding state general obligation
bonds. During the biennium, before each sale of state general obligation bonds, the
commissioner of management and budget shall calculate the amount of debt service payments
needed on bonds previously issued and shall estimate the amount of debt service payments
that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
amount of bonds scheduled to be sold so as to remain within the limit set by this section.
The amount needed to make the debt service payments is appropriated from the general
fund as provided in Minnesota Statutes, section 16A.641.
new text end

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

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

ARTICLE 2

POLICY

Section 1.

Minnesota Statutes 2024, section 16A.501, is amended to read:

16A.501 REPORT ON EXPENDITURE OF BOND PROCEEDS.

(a) The commissioner of management and budget must report annually to the legislature
on the degree to which entities receiving appropriations for capital projects in previous
omnibus capital improvement acts have encumbered or expended that money. The report
must be submitted to the chairs of the house of representatives Ways and Means Committee
and the senate Finance Committee by January deleted text begin 1 deleted text end new text begin 15 new text end of each year.

(b) The commissioner of management and budget must report by January 15 of each
year to the chairs and ranking minority members of the house of representatives and senate
committees with jurisdiction over capital investment, finance, and ways and means on the
amount and percentage of each agency's capital appropriation that is used to pay for the
costs of staff directly attributable to capital programs or projects funded with state general
obligation bond proceeds. The report must also include information on agencies' compliance
with the commissioner's policies governing the use of general obligation bond proceeds to
pay staff costs and any changes to the commissioner's policies.

Sec. 2.

new text begin [115B.245] STATEWIDE DRINKING WATER CONTAMINATION
MITIGATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The commissioner may design and construct, or
may make grants to eligible grantees as provided under this section to design and construct,
projects to provide safe drinking water, due to contamination of drinking water by hazardous
substances, through projects such as treatment systems, new drinking water wells, sealing
contaminated wells, and connecting to alternative drinking water sources. The criteria for
selecting projects must follow the criteria and rules established under section 115B.17.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Eligible grantee" means:
new text end

new text begin (1) for projects funded from the statewide drinking water contamination mitigation
account in the bond proceeds fund, a city, county, school district, joint powers board, or
other political subdivision of the state; and
new text end

new text begin (2) for projects funded from the statewide drinking water contamination mitigation
account in the general fund, any person.
new text end

new text begin (c) "Private infrastructure projects" means improvements made to nonpublicly owned
infrastructure such as sealing of private wells, connecting private properties to water mains,
water service fees, treatment systems, and drilling new private wells in an unimpaired
drinking water aquifer.
new text end

new text begin (d) "Public infrastructure projects" means improvements made to publicly owned
infrastructure such as water main installation, public water system improvements, treatment
systems, and associated improvements.
new text end

new text begin Subd. 3. new text end

new text begin Accounts. new text end

new text begin (a) A statewide drinking water contamination mitigation account is
established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner for this purpose. Money in the account may only be
expended to acquire land or an interest in land and predesign, design, construct, and improve
public infrastructure projects that further the purposes of this section. Notwithstanding
section 115B.17, subdivision 6 or 16, any money recovered in a civil action for a project
financed with bonds under this section shall be transferred to the commissioner of
management and budget and applied toward principal and interest on outstanding bonds.
new text end

new text begin (b) A statewide drinking water contamination mitigation account is established in the
general fund. The account consists of money as provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on public or private infrastructure projects that further the purposes
of this section.
new text end

Sec. 3.

Minnesota Statutes 2024, section 116.182, subdivision 5, is amended to read:

Subd. 5.

Rules.

new text begin (a) new text end The agency shall adopt rules for the administration of the financial
assistance program. For wastewater treatment projects, the rules must include:

(1) application requirements;

(2) criteria for the ranking of projects in order of priority based on factors including the
type of project and the degree of environmental impact, and scenic and wild river standards;
and

(3) criteria for determining essential project components.

new text begin (b) Notwithstanding any provision in Minnesota Rules, chapter 7077, to the contrary,
for purposes of Minnesota Rules, parts 7077.0117, 7077.0118, and 7077.0119, the
commissioner must assign 40 points if a municipality is proposing a project to address
emerging contaminants, as defined by the United States Environmental Protection Agency.
This paragraph expires June 30, 2030.
new text end

Sec. 4.

Minnesota Statutes 2024, section 446A.07, subdivision 8, is amended to read:

Subd. 8.

Other uses of revolving fund.

(a) The clean water revolving fund may be used
as provided in title VI of the Federal Water Pollution Control Act, including the following
uses:

(1) to buy or refinance the debt obligation of governmental units for treatment works
where debt was incurred and construction begun after March 7, 1985, at or below market
rates;

(2) to guarantee or purchase 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 loan guarantees, loans, or set-aside for similar revolving funds established
by a governmental unit other than state agencies, or state agencies under sections 17.117,
103F.725, subdivision 1a, and 116J.617;

(5) to earn interest on fund accounts; new text begin and
new text end

(6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency
of administering the fund and conducting activities required under the Federal Water Pollution
Control Act, including water quality management planning under section 205(j) of the act
and water quality standards continuing planning under section 303(e) of the act deleted text begin ; deleted text end new text begin .
new text end

new text begin (b) The clean water revolving fund may be used to provide additional subsidization as
permitted under the Federal Water Pollution Control Act and other federal laws to provide
principal forgiveness or grants:
new text end

deleted text begin (7) to provide principal forgiveness or grants to the extent permitted under the Federal
Water Pollution Control Act and other federal law, deleted text end new text begin (1) new text end based on deleted text begin the deleted text end new text begin affordability new text end criteria
and requirements established for the deleted text begin wastewater deleted text end new text begin water new text end infrastructure funding program under
section 446A.072; deleted text begin and
deleted text end

deleted text begin (8) to provide loans, principal forgiveness, or grants to the extent permitted under the
Federal Water Pollution Control Act and other federal law deleted text end new text begin (2) for 25 percent of project costs
up to a maximum of $1,000,000 for projects new text end to address green infrastructure, water or energy
efficiency improvements, or other environmentally innovative activities deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) for 50 percent of project costs up to a maximum of $3,000,000 for projects that
address emerging contaminants as defined by the United States Environmental Protection
Agency.
new text end

deleted text begin (b) Amounts spent under paragraph (a), clause (6), may not exceed the amount allowed
under the Federal Water Pollution Control Act.
deleted text end

deleted text begin (c) Principal forgiveness or grants provided under paragraph (a), clause (8), may not
exceed 25 percent of the eligible project costs as determined by the Pollution Control Agency
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 end

Sec. 5.

Minnesota Statutes 2024, section 446A.072, subdivision 5a, is amended to read:

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 $5,000,000 deleted text end new text begin $10,000,000 new text end
per project or $20,000 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 $5,000,000 deleted text end new text begin $10,000,000 new text end 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.

(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
deleted text begin $5,000,000 deleted text end new text begin $10,000,000 new text end 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.

(d) Notwithstanding the limits in paragraphs (a), (b), and (c), 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.

Sec. 6.

Minnesota Statutes 2024, section 446A.073, subdivision 1, as amended by Laws
2025, chapter 20, section 266, is amended to read:

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 $7,000,000 deleted text end new text begin $12,000,000 new text end to
governmental units to cover 80 percent of 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 (a), clause (5), item (viii), and incorporated into a permit issued
by the Pollution Control Agency that exceeds secondary treatment limits; or

(4) a total nitrogen concentration or mass limit that requires discharging ten milligrams
per liter or less at permitted design flow.

Sec. 7.

Minnesota Statutes 2024, 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; new text begin and
new text end

(7) to develop and administer programs for water system supervision, source water
protection, and related programs required under the act deleted text begin ; deleted text end new text begin .
new text end

new text begin (b) The drinking water revolving fund may be used to provide additional subsidization
as permitted under the federal Safe Drinking Water Act and other federal law to
disadvantaged communities to provide principal forgiveness or grants:
new text end

deleted text begin (8) to provide principal forgiveness or grants to the extent permitted under the federal
Safe Drinking Water Act and other federal law, deleted text end new text begin (1) new text end based on deleted text begin the deleted text end new text begin affordability new text end criteria and
requirements established for drinking water projects under the water infrastructure funding
program under section 446A.072;

deleted text begin (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;
deleted text end

deleted text begin (10) to provide principal forgiveness, or grants deleted text end new text begin (2) new text end for 80 percent of project costs up to
a maximum of $100,000 for projects needed to comply with national primary drinking water
standards for an existing nonmunicipal community public water system;

deleted text begin (11) to provide principal forgiveness or grants deleted text end new text begin (3) new text end to the extent permitted under the
federal Safe Drinking Water Act and other federal laws for projects to replace the privately
owned portion of drinking water lead service lines; deleted text begin and
deleted text end

deleted text begin (12) to provide principal forgiveness or grants deleted text end new text begin (4) new text end to the extent permitted under the
federal Safe Drinking Water Act and other federal laws for 50 percent of project costs up
to a maximum of $3,000,000 for projects to address emerging contaminants in drinking
water as defined by the United States Environmental Protection Agency deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) for 50 percent of project costs up to a maximum of $3,000,000 for projects needed
to comply with a maximum contaminant level as defined by the federal Safe Drinking Water
Act.
new text end

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

Sec. 8.

new text begin [446A.082] EMERGING CONTAMINANTS GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin When money is appropriated under this program,
the authority shall award grants to a governmental unit for up to 50 percent of the cost of
drinking water infrastructure projects to address a confirmed exceedance of a health advisory
level for a drinking water emerging contaminant as defined by the Environmental Protection
Agency.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An eligible project for this program must:
new text end

new text begin (1) be listed on the Drinking Water Revolving Fund Project Priority List under Minnesota
Rules, part 4720.9015;
new text end

new text begin (2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
new text end

new text begin (3) be certified by the commissioner of health under Minnesota Rules, part 4720.9060.
new text end

new text begin Subd. 3. new text end

new text begin Application and reservation of funds. new text end

new text begin (a) Grant applications to the authority
may be made at any time on forms prescribed by the authority, including a project schedule
and cost estimate for the work necessary to comply with the purpose described in subdivision
2.
new text end

new text begin (b) The commissioner of health shall review and certify to the authority those projects
that have plans and specifications approved under Minnesota Rules, part 4720.9060. When
a project is certified by the commissioner of health, the authority shall reserve grant funds
for the project in the order listed on the commissioner of health's project priority list and in
an amount based on the cost estimate in the commissioner of health's certification or the
as-bid costs, whichever is less.
new text end

new text begin Subd. 4. new text end

new text begin Grant amount. new text end

new text begin The grant amount for an eligible project under this program
shall be for an amount up to 50 percent of the eligible as-bid project cost up to $5,000,000,
minus the amount of federal emerging contaminant funds the project receives under section
446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant
funds.
new text end

new text begin Subd. 5. new text end

new text begin Grant approval. new text end

new text begin The authority shall award a grant for an eligible project only
after:
new text end

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

new text begin (2) the commissioner of health has certified the grant eligible portion of the project; and
new text end

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

new text begin Subd. 6. new text end

new text begin Grant disbursement. new text end

new text begin Grant funds shall be disbursed by the authority as eligible
project costs are incurred by the governmental unit and in accordance with a project financing
agreement and applicable state laws and rules governing the disbursements.
new text end

new text begin Subd. 7. new text end

new text begin Recovering expenses. new text end

new text begin Money granted to a grantee under this program may be
recovered in a civil action brought by the attorney general against any person who may be
liable under section 115B.04 or any other law. To be eligible for recovery, the expenses
must be reasonable and necessary expenses, including all response costs, and administrative
and legal expenses. The authority, Department of Health, and Pollution Control Agency's
certification of expenses shall be prima facie evidence that the expenses are reasonable and
necessary. Any money recovered in a civil action for a project financed with bonds under
this section shall be transferred to the commissioner of management and budget for deposit
in the state bond proceeds fund and applied toward principal interest on outstanding bonds.
new text end

Sec. 9.

new text begin [462A.2036] COOPERATIVE MANUFACTURED HOUSING
INFRASTRUCTURE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The agency may make grants to counties
and cities to provide up to 50 percent of the capital costs of housing infrastructure necessary
for an eligible cooperative manufactured housing development project. The agency shall
prioritize a grant award after determining that nonstate resources are committed to complete
the project. The nonstate contribution may be either cash or in kind. In-kind contributions
may include the value of the site, whether the site is prepared before or after the law
appropriating money for the grant is enacted.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "housing infrastructure" means publicly
owned physical infrastructure necessary to support cooperative manufactured housing
development projects, including but not limited to sewers, water supply systems, utility
extensions, streets, wastewater treatment systems, stormwater management systems, and
facilities for pretreatment of wastewater to remove phosphorus.
new text end

new text begin Subd. 3. new text end

new text begin Eligible projects. new text end

new text begin Housing infrastructure eligible for a grant under this section
shall serve manufactured housing cooperatives as defined in section 273.124, subdivision
3a.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) The agency must develop forms and procedures for soliciting,
reviewing, and prioritizing applications for grants under this section. At a minimum, a
county or city may include in its application a resolution of the county or city council
certifying that the required nonstate match is available. The agency must evaluate complete
applications for funding for eligible projects to determine that:
new text end

new text begin (1) the project is necessary to increase sites available for housing development that will
provide adequate housing stock for the current or future workforce; and
new text end

new text begin (2) the increase in workforce housing will result in substantial public and private capital
investment in the county or city in which the project would be located.
new text end

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

new text begin Subd. 5. new text end

new text begin Maximum grant amount. new text end

new text begin A county or city may receive no more than $60,000
per manufactured housing lot.
new text end

Sec. 10.

Laws 2013, chapter 143, article 12, section 21, is amended to read:

Sec. 21.

LEGISLATIVE OFFICE FACILITIES.

(a) The commissioner of administration may enter into a long-term lease-purchase
agreement for a term of up to 25 years, to predesign, design, construct, and equip offices,
hearing rooms, and parking facilities for legislative and other functions. The facility must
be located on the block bounded by Sherburne Avenue on the north, Park Street on the west,
University Avenue on the south, and North Capitol Boulevard on the east. The legislative
office facility must provide office accommodations for all senators and senate staff who do
not have offices in the Capitol building and on-site parking facilities for all members and
staff and disabled visitors to senate offices. A parking structure may also be built on the
state-owned land located in the block bounded by Sherburne Avenue on the north, Park
Street on the east, University Avenue on the south, and Rice Street on the west. The
commissioner of management and budget may issue lease revenue bonds or certificates of
participation associated with the lease-purchase agreement. The lease-purchase agreements
must not be terminated, except for nonappropriation of money. The lease-purchase
agreements must provide the state with a unilateral right to purchase the leased premises at
specified times for specified amounts. The lease-purchase agreements are exempt from
Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.

(b) The facilities under the lease-purchase agreement are exempt from the design
competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding anything
to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner
of administration elects to use a design-build delivery method to design and construct one
or more facilities under this appropriation, the Capitol Area Architectural and Planning
Board, in cooperation with the commissioner, shall create a selection committee to act as
the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design and
construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if the
commissioner elects to contract with a primary designer to design one or more facilities
under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation
with the commissioner, shall create a selection committee to conduct the selection process
in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A
selection committee created under this section must contain no more than seven members,
including at least three representatives designated by the senate Committee on Rules and
Administration and three representatives designated by the speaker of the house.

(c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections 16C.32
and 16C.33, if the commissioner of administration elects to use a design-build delivery
method to design, construct, and equip one or more facilities and associated infrastructure
to provide audio and video broadcast services for the Capitol building, State Office Building,
and a new legislative office building, if applicable, the commissioner shall create a selection
committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, to
design, build, and equip the facilities. The selected design-builder may self-perform trade
work or name an audio and video subcontractor as a member of the design-builder's team.
If an audio and video subcontractor is named as a member of the design-builder's team, the
design-builder is not required to competitively bid the trade work. Notwithstanding Minnesota
Statutes, section 16C.33, subdivision 5, paragraph (b), after obtaining and evaluating
qualifications from each design-builder, in accordance with the weighted criteria and
subcriteria and procedures provided in the request for qualifications, the selection committee
shall select a short list of up to five proposals. If the commissioner does not receive any
proposals, the commissioner may either:

(1) solicit new proposals;

(2) revise the request for qualifications and thereafter solicit new proposals using the
revised request for qualifications; or

(3) request selection of a primary designer under Minnesota Statutes, section 16B.33,
16C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota Statutes,
sections 16C.25 to 16C.29.

(d) The commissioner of administration may enter into a ground lease for state-owned
property in the capitol area in conjunction with the execution of a lease-purchase agreement
entered into under this section for any improvements constructed on that site. Notwithstanding
the requirements of Minnesota Statutes, section 16A.695, subdivision 2, paragraph (b), the
ground lease must be for a term equal to the term of the lease-purchase agreement, and must
include an option to purchase the land at its then fair market value, if the improvements are
not purchased by the state at the end of the term of the lease-purchase agreement, or at any
earlier time that the lease-purchase agreement is terminated.

(e) The commissioner of administration must not prepare final plans and specifications
for any construction authorized under this section until the program plan and cost estimates
for all elements necessary to complete the project have been approved by the senate
Committee on Rules and Administration.

(f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the
commissioner of administration for predesign and design of facilities authorized under
paragraph (a). This appropriation is available for expenditure the day following final
enactment and until June 30, 2015.

(g) The commissioner of administration may reserve a portion of money from
appropriations for office space costs of the legislature to fund future repairs for facilities
constructed under the authority provided in this section. Money reserved under this paragraph
must be credited to a segregated account for each building in the special revenue fund and
is appropriated to the commissioner to make the repairs. When the state acquires title to a
building with an account established under this paragraph, the account for that building
must be abolished and the balance remaining in the account must be transferred to the
appropriate asset preservation and replacement account.

new text begin (h) Certificates of participation or lease revenue bonds issued by the commissioner of
management and budget may be issued by public or private sale and in one or more series
on the terms and conditions the commissioner of management and budget determines to be
in the best interests of the state, shall be dated and bear interest at a fixed or variable rate,
may be includable in or excludable from the gross income of the owners for federal income
tax purposes, and may be sold at any price or percentage of par value. Any bid received
may be rejected.
new text end

new text begin (i) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates
of participation, and at any time thereafter, so long as the bonds or certificates are outstanding,
the commissioner of management and budget may enter into agreements and ancillary
arrangements relating to the bonds or certificates, 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 of management and budget
included in an interest exchange agreement that the agreement relates to a certificate or
bond shall be conclusive.
new text end

new text begin (j) The commissioner of management and budget may enter into written agreements or
contracts relating to the continuing disclosure of information necessary to comply with or
facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds
or certificates of participation 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 certificates or bonds set forth in the order or
resolution authorizing the issuance of the certificates or bonds or in a separate document
authorized by the order or resolution.
new text end

new text begin (k) The commissioner of administration from time to time may enter into a new
lease-purchase agreement and the commissioner of management and budget may issue and
sell lease revenue bonds or certificates of participation for the purpose of refunding any
lease-purchase agreement authorized under this section and related lease revenue bonds or
certificates of participation then outstanding, including the payment of any redemption
premiums, any interest accrued or that is to accrue to the redemption date, and costs related
to the issuance and sale of such refunding bonds or certificates. The proceeds of any refunding
bonds or certificates may, in the discretion of the commissioner of management and budget,
be applied to the purchase or payment at maturity of the bonds or certificates to be refunded,
to the redemption of the outstanding lease-purchase agreements and bonds or certificates
on any redemption date, or to pay interest on the refunding lease-purchase agreements and
bonds or certificates and may, pending such application, be placed in escrow to be applied
to such purchase, payment, retirement, or redemption. Any escrowed proceeds, pending
such use, may be invested and reinvested in obligations that are authorized investments
under Minnesota Statutes, section 11A.24. The income earned or realized on any authorized
investment may also be applied to the payment of the lease-purchase agreements and bonds
or certificates to be refunded, to interest or premiums on the refunded bonds or certificates,
or to pay interest on the refunding lease-purchase agreements and bonds or certificates.
After the terms of the escrow have been fully satisfied, any balance of proceeds and any
investment income may be returned to the general fund for use in a lawful manner. All
refunding lease-purchase agreements and bonds or certificates issued under the provisions
of this section must be prepared, executed, delivered, and secured by appropriations in the
same manner as the lease-purchase agreements and bonds or certificates to be refunded.
new text end

new text begin (l) The waiver of immunity by the state provided for by Minnesota Statutes, section
3.751, subdivision 1, shall be applicable to lease revenue bonds or certificates of participation
issued under this section and any ancillary contracts to which the commissioner is a party.
new text end

Sec. 11. new text begin DEPARTMENT OF PUBLIC SAFETY; LAND ACQUISITION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16B.31, subdivision 2, at the request of
the commissioner of public safety, the commissioner of administration is authorized to
acquire land adjacent to the Bureau of Criminal Apprehension facility in the city of Bemidji.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 16A.662, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2024, section 116J.417, subdivision 9, new text end new text begin is repealed effective
retroactively from June 2, 2023.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 3

MODIFICATIONS

Section 1.

Laws 2020, Fifth Special Session chapter 3, article 1, section 16, subdivision
34, is amended to read:

Subd. 34. Chisago County; U.S. Highway 8 Reconstruction

8,000,000

(a) For a grant to Chisago County to
predesign, design, engineer, and construct a
reconstruction of marked U.S. Highway 8
from Karmel Avenue in Chisago City to
Interstate 35 and pedestrian and bike trails
along and crossings of this portion of U.S.
Highway 8. This reconstruction may include
expanding segments of U.S. Highway 8 to
four lanes, constructing or reconstructing
frontage roads and backage roads, and
realigning local roads to consolidate, remove,
and relocate access onto and off of U.S.
Highway 8. This appropriation is for the
portion of the project that is eligible for use
of proceeds of general obligation bonds. deleted text begin This
appropriation is available until the project is
completed or abandoned deleted text end new text begin 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, 2029 new text end .

(b) Amounts planned by the Department of
Transportation for the resurfacing of U.S.
Highway 8, as reflected in MnDOT's Metro
District Ten-Year Capital Highway Investment
Study 2020-2029, shall instead be applied to
the reconstruction of U.S. Highway 8 to
supplement appropriations for that purpose
from any fund in this section.

Sec. 2.

Laws 2020, Fifth Special Session chapter 3, article 1, section 17, subdivision 13,
as amended by Laws 2023, chapter 72, article 3, section 23, is amended to read:

Subd. 13. White Bear Lake Communities; Lake Links Trail

3,600,000

new text begin (a) new text end For grants to complete design and
construction of a multiuse paved trail and route
for pedestrians, bicycles, and wheelchairs
around White Bear Lake in Ramsey and
Washington Counties, as follows:

(1) $2,600,000 of this appropriation is for deleted text begin a
grant deleted text end new text begin one or more grants new text end to the city of
Dellwood in Washington County to design,
engineer, construct, and equip trail
improvements consistent with the completed
preliminary engineering along or parallel with
the shore of White Bear Lake between the
Mahtomedi city limits and the western line of
Washington County. This appropriation may
also be used for the acquisition of permanent
easements and right-of-way;

(2) $500,000 of this appropriation is for a
grant to White Bear Township in Ramsey
County to design, engineer, construct, and
equip trail improvements along and parallel
with the shore of White Bear Lake between
the Washington County line and the city limits
of the city of White Bear Lake, Ramsey
County; and

(3) $500,000 of this appropriation is for a
grant to the city of White Bear Lake in
Ramsey County to design, engineer, construct,
and equip trail improvements along or parallel
with the shore of White Bear Lake between
the eastern city limits of White Bear Lake and
Pacific Avenue.

new text begin (b) The city of Dellwood may complete the
trail improvements funded under paragraph
(a), clause (1), in the following segments and
in any order, and may enter into separate grant
agreements for each trail segment or any
combination of segments:
new text end

new text begin (1) Echo Street to Dwinnell Avenue, along the
railway bed;
new text end

new text begin (2) Yellow Birch Road to Echo Street, along
Dellwood Avenue;
new text end

new text begin (3) Meadow Lane to Yellow Birch Road,
along Dellwood Avenue; and
new text end

new text begin (4) from the intersection of Dellwood Road
and Dellwood Avenue to the intersection of
Meadow Lane and Dellwood Avenue, along
Dellwood Avenue.
new text end

new text begin Amounts remaining after substantial
completion of a trail segment or combination
of segments under this paragraph may be
applied to any other trail segment or
combination of segments described in this
paragraph.
new text end

new text begin (c) new text end Notwithstanding Minnesota Statutes,
section 16A.642, the bond sale authorization
and appropriation of bond proceeds for this
project is available until December 31, deleted text begin 2026 deleted text end new text begin
2028 new text end .

Sec. 3.

Laws 2023, chapter 71, article 1, section 9, subdivision 12, is amended to read:

Subd. 12. Marshall; MERIT Training Center

2,250,000

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

Sec. 4.

Laws 2023, chapter 71, article 1, section 11, subdivision 7, is amended to read:

Subd. 7. Dellwood; Lake Links Trail

2,000,000

For deleted text begin a grant deleted text end new text begin one or more grants new text end to the city of
Dellwood in Washington County to design,
engineer, construct, and equip trail
improvements consistent with the completed
preliminary engineering along or parallel with
the shore of White Bear Lake between the
Mahtomedi city limits and the western border
of Washington County. This appropriation
may also be used for the acquisition of
permanent easements and right-of-way. This
appropriation is in addition to the
appropriation in Laws 2020, Fifth Special
Session chapter 3, article 1, section 17,
subdivision 13, for the same purposes. new text begin
Notwithstanding Minnesota Statutes, section
16A.642, the appropriation for this project is
available until December 31, 2028.
new text end

Sec. 5.

Laws 2023, chapter 71, article 1, section 14, subdivision 24, is amended to read:

Subd. 24. Maple Grove; Community Center

6,000,000

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

Sec. 6.

Laws 2023, chapter 71, article 1, section 14, subdivision 49, is amended to read:

Subd. 49. St. Cloud; CentraCare

5,000,000

For a grant to CentraCare to design new text begin , construct,
renovate, furnish, and equip new text end a University of
Minnesota Medical School Campus on the
CentraCare Health System Campus in the city
of St. Cloud.

Sec. 7.

Laws 2023, chapter 71, article 1, section 14, subdivision 67, as amended by Laws
2024, chapter 88, article 1, section 23, is amended to read:

Subd. 67. Isuroon

3,000,000

new text begin (a) new text end For a grant to Isuroon to predesign, design,
construct, and renovate the property located
at 1600 East Lake Street, in the city of
Minneapolis, to carry out the mission of the
organization to support immigrant women and
provide mental health counseling. This
appropriation may be used to reimburse
Isuroon for costs incurred for this project after
June 1, 2023.

new text begin (b) Any money remaining after the project in
paragraph (a) is completed may be used to
acquire property for, and to predesign, design,
furnish, equip, renovate, and construct a
specialty care center for women's maternal
health located in Ramsey County.
new text end

Sec. 8.

Laws 2023, chapter 71, article 1, section 14, subdivision 81, as amended by Laws
2024, chapter 88, article 1, section 26, is amended to read:

Subd. 81. Open Arms

500,000

For a grant to Open Arms of Minnesota to
acquire deleted text begin items of capital equipment to be used
for a new kitchen and nutrition counseling
center in Ramsey County to expand access to
medically tailored meals for Minnesotans with
life-threatening illnesses deleted text end new text begin capital equipment to
be used in the kitchen and for HVAC
improvements for the nutrition counseling
center building in the city of Minneapolis new text end . This
appropriation is available for expenditures
made on or after July 1, 2023.

Sec. 9.

Laws 2023, chapter 71, article 1, section 14, subdivision 93, as amended by Laws
2024, chapter 88, article 1, section 28, is amended to read:

Subd. 93. Somali Museum

3,900,000

For a grant to the Somali Museum to deleted text begin acquire
land, predesign, deleted text end new text begin acquire property for and to new text end
design, construct, furnish, and equip a facility
in the city of Minneapolis to be used for a
museum of Somali relics and artifacts, Somali
cultural history, and education.

Sec. 10.

Laws 2023, chapter 71, article 1, section 14, subdivision 97, is amended to read:

Subd. 97. The Link

5,000,000

For a grant to The Link for land acquisition
and to predesign deleted text begin , deleted text end new text begin and new text end design deleted text begin , construct,
furnish, and equip deleted text end a new multiuse facility in
North Minneapolis. The new building would
include a youth program and recreational
space, administrative and program office
space, and between 40 to 45 new units of
housing for unaccompanied homeless youth,
sex-trafficked youth, and young families
experiencing homelessness.

Sec. 11.

Laws 2023, chapter 71, article 1, section 15, subdivision 7, is amended to read:

Subd. 7. First District Association; Wastewater Industrial Pretreatment Facility

5,000,000

For a grant to the First District Association, a
dairy cooperative located in the city of
Litchfield, new text begin to acquire land for, and new text end to design,
engineer, construct, equip, and furnish, a new
wastewater industrial pretreatment facility in
the city of Litchfield with a processing
capacity of up to 1,750,000 gallons per day of
high strength wastewater, a biosolids handling
process, and renewable gas production.

Sec. 12.

Laws 2023, chapter 71, article 1, section 15, subdivision 16, is amended to read:

Subd. 16. Western Lake Superior Sanitary District; Clarifiers

17,500,000

For a grant to the Western Lake Superior
Sanitary District to design, construct, and
rehabilitate four secondary clarifiers in the
district's wastewater treatment system. new text begin
Notwithstanding Minnesota Statutes, section
16A.642, this appropriation is available until
December 31, 2029.
new text end

Sec. 13.

Laws 2023, chapter 72, article 1, section 7, subdivision 18, is amended to read:

Subd. 18. Heartland State Trail

2,950,000

(a) For capital improvements to the Heartland
State Trail. Of this amount, (1) $550,000 is
for construction of a trail segment of the
Heartland State Trail between Detroit Lakes
and Frazee; and (2) $2,400,000 is for the
environmental review, predesign, design, and
construction of a paved multiple-use trail to
connect Itasca State Park to the Heartland
State Trail beginning from the park contact
station to the park's southeast boundary and
through a Phase 1 tunnel to be constructed
under marked U.S. Highway 71, and
continuing from there for about two miles.

(b) This appropriation is in addition to the
appropriations in Laws 2017, First Special
Session chapter 8, article 1, section 6,
subdivision 6, and Laws 2020, Fifth Special
Session chapter 3, article 1, section 7,
subdivision 12.

new text begin (c) Any unspent portion of the appropriation
remaining after completion of the project listed
in paragraph (a), clause (1), after written notice
to the commissioner of management and
budget, is available for the purposes of
environmental review, engineering, and design
of the following segments of the Heartland
State Trail: from the west Becker County line
to Detroit Lakes, from Park Rapids to Osage,
and from Osage to Frazee.
new text end

Sec. 14.

Laws 2023, chapter 72, article 1, section 16, subdivision 15, is amended to read:

Subd. 15. Savage; Road and Bridge Improvements

800,000

From the bond proceeds account in the state
transportation fund, as provided in Minnesota
Statutes, section 174.50, for a grant to the city
of Savage to predesign and design the
expansion of Quentin Avenue and
reconstruction of two railroad bridges that pass
over Quentin Avenue. deleted text begin The project area for this
project is from approximately 600 feet to the
south to approximately 600 feet to the north
of the two railroad bridges that pass over
Quentin Avenue. deleted text end new text begin 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, 2029.
new text end

Sec. 15.

Laws 2023, chapter 72, article 2, section 2, is amended to read:

Sec. 2. MINNESOTA STATE COLLEGES AND UNIVERSITIES

$

1,347,000

To the board of trustees of the Minnesota State
Colleges and Universities to design the
renovation of space for Career and Technical
Education programs new text begin and to construct the first
phase of the roof replacement new text end at the Heintz
Center at Rochester Community and Technical
College.

Sec. 16. new text begin EFFECTIVE DATE.
new text end

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

APPENDIX

Repealed Minnesota Statutes: 25-05718

16A.662 INFRASTRUCTURE DEVELOPMENT BONDS.

Subdivision 1.

Infrastructure development fund.

The infrastructure development fund is created as an account in the state treasury. The commissioner of management and budget shall credit to the fund income from the sources provided by law. The commissioner of management and budget shall from time to time certify to the State Board of Investment the assets of the fund not currently needed. The amount certified must be invested by the State Board of Investment subject to section 11A.24. Investment income and investment losses attributable to investment of fund assets must be credited to or borne by the fund.

Subd. 2.

Bonds authorized.

When authorized by law enacted in accordance with the constitution, article XI, sections 5 and 7, the commissioner may by order sell and issue bonds of the state evidencing public debt incurred for any purpose stated in the law. The bonds are general obligations of the state, and the full faith and credit of the state are pledged for their payment.

Subd. 3.

Manner of issuance; maturities.

The bonds must be issued and sold in accordance with section 16A.641. Sections 16A.672 and 16A.675 apply to the bonds.

Subd. 4.

Debt service account; appropriation of debt service account money.

There is established within the state bond fund a separate and special account designated as the infrastructure development bond debt service account. The money on hand in the debt service account must be used solely for the payment of the principal of and interest on bonds issued under Laws 1990, chapter 610, article 1, section 30, subdivision 2, and is appropriated for this purpose. This appropriation does not cancel as long as any of the bonds remain outstanding.

Subd. 5.

Assessment to higher education systems.

(a) In order to reduce the amount otherwise required to be transferred to the state bond fund with respect to bonds heretofore or hereafter issued under Laws 1990, chapter 610, article 1, section 30, subdivision 2, the commissioner of management and budget shall assess each higher education system for one-third the amount that would otherwise need to be transferred with respect to those bonds sold to finance capital improvement projects at institutions under the control of the system; provided that, to the extent that the amount to be transferred is for payment of principal and interest on bonds sold to finance life safety improvements, the commissioner must not assess the higher education systems for the transfer.

(b) After each sale of the bonds, the commissioner of management and budget shall notify the Board of Trustees of the Minnesota State Colleges and Universities and the regents of the University of Minnesota of the amounts for which each system is responsible for each year for the life of the bonds. The amounts payable each year are reduced by one-third of the net income from investment of those bond proceeds that must be allocated among the systems in proportion to the amount of principal and interest otherwise required to be paid by each. Each higher education system shall pay its annual share of debt service payments to the commissioner of management and budget by December 1 each year. If a higher education system fails to make a payment when due, the commissioner of management and budget shall reduce allotments for appropriations from the general fund otherwise payable to the system to cover the amount of the missed debt service payment. The commissioner of management and budget shall credit the payments received from the higher education systems to the infrastructure development bond debt service account in the state bond fund each December 1 before the transfer is made under subdivision 4.

Subd. 6.

Appropriation from general fund.

There is annually appropriated from the general fund for transfer to the infrastructure development bond debt service account the amount that, added to the amount in the infrastructure development bond debt service account on December 1 each year, after giving effect to subdivisions 4 and 5, is equal to the full amount of principal and interest to come due on all bonds to and including July 1 in the second ensuing year.

Subd. 7.

Constitutional tax levy.

Under the constitution, article XI, section 7, the state auditor must levy each year on all taxable property within the state a tax sufficient, with the amount then on hand in the infrastructure development bond debt service account, to pay all principal and interest on the bonds due and to become due to and including July 1 in the second ensuing year. The tax is not subject to limit as to rate or amount. However, the amount of money appropriated from other sources as provided in subdivisions 4, 5, and 6, and actually received and on hand before the levy in any year, reduces the amount of the tax otherwise required to be levied. The proceeds of the tax must be credited to the infrastructure development bond debt service account.

Subd. 8.

Application and appropriation of proceeds.

The proceeds of the bonds must be deposited and spent as provided in this subdivision and are appropriated for those purposes. Any accrued interest and any premium received on the sale of the bonds must be credited to the infrastructure development bond debt service account. Except as otherwise required by law, the balance of the bond proceeds shall be credited to the infrastructure development fund and spent for the purposes specified in the law authorizing the issuance of the bonds. So much of the proceeds as is necessary must be used to pay costs incurred in issuing and selling the bonds.

116J.417 GREATER MINNESOTA CHILD CARE FACILITY CAPITAL GRANT PROGRAM.

Subd. 9.

Cancellation of grant; return of money.

If the commissioner determines that a grantee is unable to proceed with an approved project or has not expended or obligated the grant money within five years of entering into the grant agreement with the commissioner, the commissioner shall cancel the grant and the money is available for the commissioner to make other grants under this section. Money made available to the commissioner from a canceled grant is subject to cancellation under section 16A.642 as if it had been appropriated to the program in the year in which the grant is canceled.