Engrossments
Introduction		Posted on 02/02/2017

ARTICLE 1

APPROPRIATIONS

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

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

new text begin APPROPRIATIONS
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 154,334,000
new text end

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

new text begin Subd. 2. new text end

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

55,000,000

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

new text begin Subd. 3. new text end

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

28,267,000

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

new text begin Subd. 4. new text end

new text begin Health Sciences Education Facility
new text end

66,667,000

new text begin To demolish obsolete health sciences facilities
and to design, renovate, furnish, equip, and
construct a health science education facility
on the Twin Cities campus to meet the needs
of the Medical School and the Academic
Health Center.
new text end

new text begin Subd. 5. new text end

new text begin Plant Growth Research Facility
new text end

4,400,000

new text begin To demolish the existing biological sciences
greenhouse and to predesign, design,
construct, furnish, and equip a greenhouse to
support learning and research on the St. Paul
campus.
new text end

new text begin Subd. 6. new text end

new text begin University Share
new text end

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

new text begin Subd. 7. new text end

new text begin Unspent Appropriations
new text end

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 201,887,000
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

80,000,000

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

new text begin Subd. 3. new text end

new text begin Bemidji State University
new text end

18,897,000

new text begin To demolish Hagg-Sauer Hall and construct,
furnish, and equip its replacement, the
Academic Learning Center; to renovate and
renew, furnish, and equip Bensen Hall,
Sattgast Hall, Bangsberg Hall, and A.C. Clark
Library.
new text end

new text begin Subd. 4. new text end

new text begin Hibbing Community College
new text end

11,223,000

new text begin To demolish Building G and connecting links
or portions thereof, and to construct, renovate,
furnish, and equip buildings, links, and entry
spaces on the campus.
new text end

new text begin Subd. 5. new text end

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

(a) Fergus Falls campus

978,000

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

(b) Wadena campus

820,000

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

new text begin Subd. 6. new text end

new text begin Minnesota State University, Mankato
new text end

6,525,000

new text begin To complete design, renovate, furnish, and
equip space in Armstrong, Morris, Wissink,
and Wiecking Halls to repurpose space being
vacated by programs moving into the new
Clinical Sciences building, and complete
installation of a solar array on the new Clinical
Sciences building (Phase 1).
new text end

new text begin Subd. 7. new text end

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

826,000

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

new text begin Subd. 8. new text end

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

7,427,000

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

new text begin Subd. 9. new text end

new text begin Rochester Community and Technical
College
new text end

21,713,000

new text begin To complete design, demolish Memorial and
Plaza Halls, construct, equip, and furnish an
academic building expansion, and renovate,
equip, and furnish replacement space for
classrooms, labs, and office spaces.
new text end

new text begin Subd. 10. new text end

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

9,600,000

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

new text begin Subd. 11. new text end

new text begin St. Cloud State University
new text end

18,572,000

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

new text begin Subd. 12. new text end

new text begin Winona State University, Education
Village, Phase 2
new text end

25,306,000

new text begin To complete design, construct, renovate,
furnish, and equip Phase 2 of the Education
Village project, including the renovation of
Cathedral and Wabasha Halls and Wabasha
Rec, and remove obsolete portions of Wabasha
Rec and the Annex building between
Cathedral School and Wabasha Rec.
new text end

new text begin Subd. 13. 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. 14. new text end

new text begin Unspent Appropriations
new text end

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

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

Sec. 4. new text begin EDUCATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 17,570,000
new text end

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

new text begin Subd. 2. new text end

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

14,070,000

new text begin (a) This appropriation is from the maximum
effort school loan fund for a capital loan to
Independent School District No. 38, Red Lake,
as provided in Minnesota Statutes, sections
126C.60 to 126C.72. This appropriation is to
complete design and construction of a
connection structure between the Red Lake
Early Learning Childhood Center and Red
Lake Elementary School; renovations to
various classrooms, labs, and support rooms;
updating of mechanical systems; and
expansion of the cafeteria. Before any capital
loan contract is approved under this
subdivision, the district must provide
documentation acceptable to the commissioner
of education on how the capital loan will be
used.
new text end

new text begin (b) The commissioner of administration may
provide project management services to assist
the Department of Education with oversight
of the project. No money for construction may
be distributed by the commissioner of
education to the recipient school district until
bids have been received on 100 percent of the
construction documents and satisfactory
documentation has been submitted to the
commissioner of education indicating the
project can be fully completed with money
available for the project.
new text end

new text begin (c) Notwithstanding the timelines in Minnesota
Statutes, section 126C.69, subdivision 11,
Independent School District No. 38, Red Lake,
must submit the question authorizing the
borrowing of money for the facilities to voters
of the district at the first general election after
the effective date of this section.
new text end

new text begin (d) Notwithstanding Minnesota Statutes,
section 126C.69, subdivision 6, the application
submitted by Independent School District No.
38 on September 1, 2015, shall be considered
a sufficient application for this loan. The local
portion for this capital loan is $79,185 under
Minnesota Statutes, section 126C.69,
subdivision 9. This amount shall be disbursed
for the approved project prior to the state loan
reimbursement payments to the school district.
new text end

new text begin Subd. 3. new text end

new text begin Library Construction Grants
new text end

2,000,000

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

new text begin Subd. 4. new text end

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

1,500,000

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 2,650,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

2,000,000

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

new text begin Subd. 3. new text end

new text begin Campus Track
new text end

600,000

new text begin For the construction of a track located on the
Minnesota State Academy for the Blind
campus, subject to Minnesota Statutes, section
16A.695. This appropriation is not available
until the commissioner of management and
budget determines that an amount sufficient
to complete the project is committed from
nonstate sources.
new text end

new text begin Subd. 4. new text end

new text begin Security Corridor
new text end

50,000

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

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

new text begin $
new text end

new text begin 2,300,000
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 79,763,000
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 (c) Design-build may be utilized for the
reconstruction of the Soudan Underground
Mine.
new text end

new text begin Subd. 2. new text end

new text begin Natural Resources Asset Preservation
new text end

34,000,000

new text begin For the renovation of state-owned facilities
and recreational assets operated by the
commissioner of natural resources to be spent
in accordance with Minnesota Statutes, section
84.946. Notwithstanding Minnesota Statutes,
section 84.946: (1) the commissioner may use
this appropriation to replace buildings if,
considering the embedded energy in the
building, that is the most energy-efficient and
carbon-reducing method of renovation; and
(2) this appropriation may be used for projects
to remove life safety hazards such as building
code violations or structural defects.
new text end

new text begin Subd. 3. new text end

new text begin Flood Hazard Mitigation
new text end

6,500,000

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

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

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

new text begin (d) This appropriation includes money for the
following municipal projects: Montevideo and
Halstad.
new text end

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

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

new text begin Subd. 4. new text end

new text begin Buildings and Facilities Development
new text end

2,000,000

new text begin To design and construct office and storage
buildings, to replace buildings that are in poor
condition, outdated, and no longer support the
work of the department. This appropriation
includes money to predesign a consolidated
office in Bemidji.
new text end

new text begin Subd. 5. new text end

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

7,000,000

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

new text begin (b) This appropriation includes money for the
Bronson Dam in Lake Bronson State Park. If
the commissioner determines that the Bronson
project is not ready to proceed, this
appropriation may be used for other projects
on the commissioner's priority list.
new text end

new text begin Subd. 6. new text end

new text begin RIM Critical Habitat
new text end

2,000,000

new text begin To provide the state match for the critical
habitat private sector matching account under
Minnesota Statutes, section 84.943.
new text end

new text begin Subd. 7. new text end

new text begin Fish Hatchery Development
new text end

1,000,000

new text begin For improvements and system upgrades of a
capital nature to hatchery facilities owned by
the state and operated by the commissioner of
natural resources under Minnesota Statutes,
section 97A.045, subdivision 1, to prevent the
spread of invasive species and pathogens.
new text end

new text begin Subd. 8. new text end

new text begin Mille Lacs Lake Fisheries Management
Station
new text end

3,500,000

new text begin To design and construct a fishery management
station near Lake Mille Lacs to provide office,
hatchery, and storage space.
new text end

new text begin Subd. 9. new text end

new text begin Reforestation and Stand Improvement
new text end

2,000,000

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

new text begin Subd. 10. new text end

new text begin Native Prairie Bank Acquisition and
Development
new text end

2,000,000

new text begin To acquire native prairie bank easements
under Minnesota Statutes, section 84.96, and
to develop and restore prairie bank lands.
new text end

new text begin Subd. 11. new text end

new text begin Itasca State Park Renovations
new text end

3,000,000

new text begin To provide for the renovation of buildings and
infrastructure and for natural resources
restoration in Itasca State Park. Projects
include safety and accessibility improvements,
rehabilitation of the historic Nicollet Court
building, and erosion protection at the
headwaters.
new text end

new text begin Subd. 12. new text end

new text begin Wildlife Management Areas/ Aquatic
Management Areas Acquisition and
Development
new text end

9,500,000

new text begin To acquire wildlife management areas and
aquatic management areas and for
improvements to develop, protect, or improve
habitat under Minnesota Statutes, section
86A.05, subdivisions 8 and 14.
new text end

new text begin Subd. 13. new text end

new text begin State Park Campground Renovations
new text end

1,000,000

new text begin To rehabilitate and provide enhancements to
campgrounds, including meeting code
requirements and improving safety and
accessibility. This appropriation is for the
campground at Jay Cooke State Park and
high-priority work at other campgrounds.
new text end

new text begin Subd. 14. new text end

new text begin Park, State Recreation Area, and Trail
Development
new text end

2,000,000

new text begin For acquisition and development of
recreational features in state parks, state
recreation areas, and state trails. Priority
projects include Heartland Trail-Tower Hill,
Gitchi-Gami Trail at Tofte, Paul Bunyan Trail
at Bemidji, and design of the Lake Vermilion
visitor center.
new text end

new text begin Subd. 15. new text end

new text begin Scientific and Natural Area Acquisition
and Development
new text end

1,000,000

new text begin To acquire land for scientific and natural areas
and for improvements to develop, protect, or
improve scientific and natural areas under
Minnesota Statutes, sections 84.033 and
86A.05, subdivision 5.
new text end

new text begin Subd. 16. new text end

new text begin Two Harbors - Small Craft Harbor
Facility
new text end

763,000

new text begin For a grant to the City of Two Harbors to
design and engineer a small craft harbor within
the City of Two Harbors. This appropriation
is not available until the commissioner of
management and budget confirms that an
amount sufficient to complete the project is
committed from nonstate sources.
new text end

new text begin Subd. 17. new text end

new text begin St. Paul - Shade Tree Reforestation
new text end

1,500,000

new text begin For a grant to St. Paul for the planting of
publicly owned shade trees on public land to
provide environmental benefits; replace trees
lost to forest pests, disease, or storm; or to
establish a more diverse community forest
better able to withstand disease and forest
pests. For purposes of this appropriation,
"shade tree" means a woody perennial grown
primarily for aesthetic or environmental
purposes with minimal to residual timber value
and no intent to harvest the tree for its wood.
Any tree planted with funding under this
subdivision must be a species native to
Minnesota.
new text end

new text begin Subd. 18. new text end

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

1,000,000

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

new text begin Subd. 19. 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 57,000,000
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 St. Louis River Cleanup
new text end

25,400,000

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

new text begin Subd. 3. new text end

new text begin Closed Landfill Cleanup
new text end

11,350,000

new text begin To design and construct remedial systems and
acquire land at closed landfills throughout the
state in accordance with the closed landfill
program under Minnesota Statutes, sections
115B.39 to 115B.42. The agency must follow
the agency priorities, which includes a
construction project at the waste disposal
engineering (WDE) site in Anoka County.
new text end

new text begin Subd. 4. new text end

new text begin Capital Assistance Program
new text end

20,250,000

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

new text begin (b) Of this appropriation, $9,250,000 is for a
grant to Polk County, $8,500,000 is for a grant
to Clay County, and $2,500,000 is for a grant
to McLeod County.
new text end

Sec. 9. new text begin AGRICULTURE
new text end

new text begin $
new text end

new text begin 2,908,000
new text end

new text begin From the general fund in fiscal year 2018 to
the commissioner of agriculture for equipment
and instruments for the agriculture laboratory.
This appropriation is available until June 30,
2022.
new text end

new text begin $690,000 of this appropriation is for a grant
to the Agricultural Utilization Research
Institute (AURI) for construction of a
development kitchen, sensory lab, and safety
and security upgrades at AURI's Marshall
facility and for updated equipment and
renovations at the Waseca facility.
new text end

Sec. 10. new text begin RURAL FINANCE AUTHORITY
new text end

new text begin $
new text end

new text begin 35,000,000
new text end

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

Sec. 11. new text begin BOARD OF WATER AND SOIL
RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 40,000,000
new text end

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

new text begin Subd. 2. new text end

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

30,000,000

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

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

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

new text begin Subd. 3. new text end

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

10,000,000

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

Sec. 12. 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 24,680,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

4,000,000

new text begin For capital asset preservation improvements
and betterments to infrastructure and exhibits
at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307.
new text end

new text begin Subd. 3. new text end

new text begin Heart of the Zoo II
new text end

20,680,000

new text begin To complete the Heart of the Zoo II project,
including renovation of the snow monkey
exhibit and surrounding public spaces and
construction of a meerkat exhibit.
new text end

Sec. 13. 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 38,228,000
new text end

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

new text begin Subd. 2. new text end

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

18,500,000

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

new text begin Subd. 3. new text end

new text begin Centennial Parking Ramp
new text end

10,878,000

new text begin For structural repairs throughout the
Centennial parking ramp, including damaged
post-tension cables and the vapor barrier under
the top deck green space, and installation of
a deck surface protection coating and a storm
water retention basin.
new text end

new text begin Subd. 4. new text end

new text begin Visitor and Staff Parking Facilities
new text end

3,500,000

new text begin To acquire property, prepare design documents
and demolish existing structures, complete
hazardous materials abatement and cleanup,
and design, construct, and equip additional
visitor and staff surface parking in the Capitol
Area.
new text end

new text begin Subd. 5. new text end

new text begin Capitol Complex Monuments and
Memorials
new text end

350,000

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

new text begin Subd. 6. new text end

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

5,000,000

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

Sec. 14. new text begin MN.IT
new text end

new text begin $
new text end

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

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

Sec. 15. new text begin MINNESOTA 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 5,582,000
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 National Sports Center Expansion
new text end

5,082,000

new text begin To prepare a site for, including demolition,
and to construct maintenance facilities,
parking lots, roads, athletic fields, and other
infrastructure necessary to complete the
tournament field expansion at the National
Sports Center in Blaine.
new text end

new text begin Subd. 3. new text end

new text begin Asset Preservation
new text end

500,000

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

Sec. 16. new text begin MILITARY AFFAIRS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 10,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

2,500,000

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

new text begin Subd. 3. new text end

new text begin St. Cloud Armory
new text end

4,500,000

new text begin To complete design, renovation, expansion,
furnishing, and equipping of the St. Cloud
Readiness Center. The renovation includes
but is not limited to: installing HVAC systems,
improving life/safety systems, increasing
energy efficiency, and upgrading the facility
to serve a dual gender force.
new text end

new text begin Subd. 4. new text end

new text begin Brainerd Armory
new text end

3,500,000

new text begin To complete design, renovation, expansion,
furnishing, and equipping of the Brainerd
Readiness Center. The renovation includes
but is not limited to: installing HVAC systems,
improving life/safety systems, increasing
energy efficiency, and upgrading the facility
to serve a dual gender force.
new text end

new text begin Subd. 5. new text end

new text begin Unspent Appropriations
new text end

new text begin The unspent portion of an appropriation for a
project in this section that is complete, upon
written notice to the commissioner of
management and budget, is available for
statewide 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. 17. new text begin PUBLIC SAFETY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 39,323,000
new text end

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

new text begin Subd. 2. new text end

new text begin State Emergency Operations Center
new text end

33,302,000

new text begin For the design, site development, construction,
and equipping of a new state emergency
operations center (SEOC) for the Department
of Public Safety at Arden Hills. The facility
will serve as the location for coordinating state
support to local governments during
emergencies and disasters. It will also be a
critical continuity of government (COG)
facility for state government leaders during
an incident at the Capitol complex.
new text end

new text begin Subd. 3. new text end

new text begin Camp Ripley Training Facility
new text end

3,521,000

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

new text begin Subd. 4. new text end

new text begin Minneapolis Emergency Operations
Training Facility (EOTF) Enhancement
new text end

2,500,000

new text begin For a grant to the city of Minneapolis for the
predesign, design, engineering, and
construction of the expansion of the
Emergency Operation Center and Fire
Training Facility. This appropriation is not
available until the commissioner of
management and budget determines that an
equal amount is committed to the project from
nonstate sources.
new text end

Sec. 18. 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 343,476,000
new text end

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

new text begin Subd. 2. new text end

new text begin Local Bridge Replacement and
Rehabilitation
new text end

70,000,000

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

new text begin Subd. 3. new text end

new text begin Local Road Improvement Fund Grants
new text end

115,500,000

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

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

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

new text begin Subd. 4. new text end

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

69,624,000

new text begin (a) To design and construct rail safety projects
at highway railroad grade crossings in
accordance with Minnesota Statutes, section
219.016. Of this appropriation:
new text end

new text begin (1) $42,262,000 is for a grant to the city of
Moorhead for environmental analysis, design,
engineering, removal of an existing structure,
and construction of a rail grade crossing
separation in the vicinity of 21st Street South;
new text end

new text begin (2) $14,762,000 is for a grant to the city of
Red Wing for environmental analysis, design,
engineering, removal of an existing structure,
and construction of a rail grade crossing
separation at Sturgeon Lake Road; and
new text end

new text begin (3) $12,600,000 is for a grant to Anoka County
for environmental analysis, design,
engineering, removal of an existing structure,
and construction of a rail grade crossing
separation at Anoka County State-Aid
Highway 78, known as Hanson Boulevard, in
Coon Rapids.
new text end

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

new text begin Subd. 5. new text end

new text begin Railroad Warning Devices
new text end

5,000,000

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

new text begin Subd. 6. new text end

new text begin Facilities Capital Program
new text end

40,000,000

new text begin From the bond proceeds account in the trunk
highway fund for the transportation facilities
capital program under Minnesota Statutes,
section 174.13, which supports the agency's
building infrastructure needs.
new text end

new text begin Subd. 7. new text end

new text begin Passenger Rail Program
new text end

1,000,000

new text begin To implement capital improvements and
betterments for intercity passenger rail projects
as identified in the statewide freight and
passenger rail plan under Minnesota Statutes,
section 174.03, subdivision 1b, that are
determined to be eligible for United States
Department of Transportation funding.
Notwithstanding any law to the contrary, a
portion or phase of an intercity passenger rail
project may be accomplished with one or more
state appropriations and an intercity passenger
rail project need not be completed with any
one appropriation. Capital improvements and
betterments include preliminary engineering,
project administration, design, engineering,
environmental analysis, and mitigation,
acquisition of land and right-of-way, and
construction.
new text end

new text begin Subd. 8. new text end

new text begin Rail Quiet Zones
new text end

10,000,000

new text begin For grants under Minnesota Statutes, section
219.166. Up to ten percent of this
appropriation may be used for eligible
activities necessary to support the
implementation and delivery of the program.
new text end

new text begin Subd. 9. new text end

new text begin Port Development Assistance
new text end

10,000,000

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

new text begin Subd. 10. new text end

new text begin Stone Arch Bridge
new text end

2,500,000

new text begin From the general fund in fiscal year 2018 for
plan development, repairs and rehabilitation,
and construction oversight of the Stone Arch
Bridge in Minneapolis.
new text end

new text begin Subd. 11. new text end

new text begin Duluth Airport Authority
new text end

6,619,000

new text begin From the state airports fund in fiscal year 2018
for a grant to the Duluth Airport Authority to
provide the federal match to design and
construct runway infrastructure at the Duluth
International Airport in accordance with
Minnesota Statutes, section 360.017. For the
purposes of this appropriation, the
commissioner may waive the requirements of
Minnesota Statutes, section 360.305,
subdivision 4, paragraph (b). This
appropriation is available until and must be
encumbered by June 30, 2019.
new text end

new text begin Subd. 12. new text end

new text begin Rochester International Airport
new text end

2,333,000

new text begin From the state airports fund in fiscal year 2018
for a grant to the city of Rochester to design,
construct, renovate, and improve the Rochester
International Airport, in accordance with
Minnesota Statutes, section 360.017. For the
purposes of this appropriation, the
commissioner may waive the requirements of
Minnesota Statutes, section 360.305,
subdivision 4, paragraph (b). This
appropriation is available until and must be
encumbered by June 30, 2019.
new text end

new text begin Subd. 13. new text end

new text begin St. Cloud Regional Airport Study
new text end

250,000

new text begin Notwithstanding Minnesota Statutes, section
360.017, from the state airports fund in fiscal
year 2018 for a grant to the city of St. Cloud
for an air transport optimization planning
study for the St. Cloud Regional Airport. The
study must be comprehensive and
market-based, using economic development
and air service expertise to research, analyze,
and develop models and strategies that
maximize the return on investments made to
enhance the use and impact of the St. Cloud
Regional Airport. By January 5, 2018, the city
of St. Cloud shall submit a report to the
governor and the chairs and ranking minority
members of the legislative committees with
jurisdiction over capital investment,
transportation, and economic development
with recommendations based on the findings
of the study.
new text end

new text begin Subd. 14. new text end

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

3,000,000

new text begin For a grant to the International
Falls-Koochiching County Airport
Commission to demolish the remainder of the
existing terminal building, for site preparation,
and to design, construct, furnish, and equip
Phase II of a new terminal building. This
appropriation is not available until at least
$1,500,000 is committed to the project from
nonstate sources.
new text end

new text begin Subd. 15. new text end

new text begin Ramsey County Rail Grade Separation
new text end

1,000,000

new text begin For a grant to the Ramsey County Regional
Railroad Authority for environmental analysis
and design of rail grade separation of Union
Pacific and Burlington Northern Santa Fe track
between Westminster Junction and Division
Street/Hoffman Interlocking in St. Paul. This
appropriation is not available until the
commissioner determines that an equal amount
has been committed to the project from
nonstate sources.
new text end

new text begin Subd. 16. new text end

new text begin Grand Rapids Pedestrian Bridge
new text end

750,000

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

new text begin Subd. 17. new text end

new text begin Minnesota Rail Service Improvement
new text end

1,000,000

new text begin This is a onetime appropriation from the rail
service improvement account in the special
revenue fund to the commissioner of
transportation for a grant to the city of Grand
Rapids to fund rail planning studies, design,
and preliminary engineering relating to the
construction of a freight rail line located in the
counties of Itasca, St. Louis, and Lake to serve
local producers and shippers. The city of
Grand Rapids shall collaborate with the Itasca
Economic Development Corporation and the
Itasca County Regional Railroad Authority in
the activities funded with the proceeds of this
grant. This appropriation is available until June
30, 2022.
new text end

new text begin Subd. 18. new text end

new text begin Virginia - Highway 53 Utility
Relocation
new text end

4,900,000

new text begin From the general fund for grants to the city of
Virginia and the city of Virginia Public
Utilities Commission to acquire land for and
to predesign, design, construct, furnish, and
equip relocated public utilities, including
sanitary and storm water sewers and water,
electrical, and gas utilities, and to demolish
and remove old utility infrastructure, all
associated with the relocation of marked Trunk
Highway 53. This appropriation does not
require a nonstate contribution.
new text end

Sec. 19. 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 39,455,000
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 Regional Parks and Trails
Capital Improvements
new text end

10,000,000

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

new text begin Subd. 3. new text end

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

5,000,000

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

new text begin Subd. 4. new text end

new text begin St. Paul - Como Zoo Project
new text end

15,455,000

new text begin For a grant to the city of St. Paul for predesign,
design, and engineering of Phase I of the
renovation of seal and sea lion habitat at the
Como Zoo. The renovated habitat will support
the zoo education programs. This
appropriation is not available until the
commissioner of management and budget
determines that at least $1,100,000 is
committed to the project from nonstate
sources.
new text end

new text begin Subd. 5. new text end

new text begin St. Paul - Environmental Learning
Center
new text end

3,000,000

new text begin For a grant to the city of St. Paul to design an
Environmental Learning Center project and
adjacent site development in Crosby Farms
Regional Park. The project will integrate
environmental education, river access, and
river and nature-based recreation, along with
increasing safe access to and awareness by the
public of the Mississippi River. The
Environmental Learning Center is an
opportunity to build on the history and
interconnectedness to the river, create an
authentic, signature destination that positions
the state nationally and internationally,
improve the quality of life for residents and
visitors, and cultivate a constituency that
values the river and will care for it into the
future.
new text end

new text begin Subd. 6. new text end

new text begin St. Paul - Wakan Tipi Center
new text end

3,000,000

new text begin For a grant to the city of St. Paul to predesign,
design, furnish, and equip Wakan Tipi Center
in the Bruce Vento Nature Sanctuary in St.
Paul that will be used for programs that the
city determines meet regional and city park
purpose requirements. The city may enter into
a lease or management agreement under
Minnesota Statutes, section 16A.695, to
operate the programs in the center. This
appropriation is not available until the
commissioner of management and budget
determines that at least an equal amount is
committed to the project from nonstate
sources.
new text end

new text begin Subd. 7. new text end

new text begin Washington County - Gateway Corridor
new text end

3,000,000

new text begin For a grant to Washington County to complete
engineering and environmental analysis related
to the Gateway Corridor transitway. This
appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete the project has been committed to
the project from nonstate sources.
new text end

Sec. 20. new text begin HEALTH
new text end

new text begin $
new text end

new text begin 2,335,000
new text end

new text begin From the general fund in fiscal year 2018 to
the commissioner of health for equipment and
instruments for the public health laboratory.
This appropriation is available until June 30,
2022.
new text end

Sec. 21. new text begin HUMAN SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 141,960,000
new text end

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

new text begin Subd. 2. new text end

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

70,255,000

new text begin To complete design, remodel, construct,
furnish, and equip the second phase of the
two-phase project to remodel existing and to
develop new residential, program, activity,
and ancillary facilities for the Minnesota
Security Hospital on the upper campus of the
St. Peter Regional Treatment Center. This
appropriation includes money to: demolish,
renovate, and remodel existing space;
construct new space; address fire and life
safety, and other building code deficiencies;
replace or renovate interior finishes; purchase
furnishings, fixtures, and equipment; replace
or renovate the Minnesota Security Hospital
building's HVAC, plumbing, electrical,
security, and life safety systems; tuck-point;
replace windows and doors; design and abate
asbestos and hazardous materials; and
complete site work necessary to support the
programmed use of the facilities on the St.
Peter Regional Treatment Center upper
campus.
new text end

new text begin Subd. 3. new text end

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

2,250,000

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

new text begin Subd. 4. new text end

new text begin Minnesota Sex Offender Program – St.
Peter
new text end

14,500,000

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

new text begin Subd. 5. new text end

new text begin Minnesota Sex Offender Program –
Less Restrictive Alternatives
new text end

12,420,000

new text begin To acquire land for, and to predesign, design,
construct, furnish, and equip two new
community-based residential treatment
facilities, including any necessary site work,
for the Minnesota Sex Offender Program as
less restrictive alternatives to the program's
existing secure facilities.
new text end

new text begin Subd. 6. new text end

new text begin St. Paul - Dorothy Day Opportunity
Center
new text end

12,000,000

new text begin To the commissioner of human services for a
grant to the city of St. Paul to predesign,
design, construct, furnish, and equip an
opportunity center to serve as an integrated
one-stop delivery system connecting persons
at risk of becoming homeless, and persons
working to move up and out of homelessness,
and to provide services that improve their
health, income, housing stability, or
well-being, subject to Minnesota Statutes,
section 16A.695. This appropriation may be
used to acquire property for these purposes.
This appropriation is not available until the
commissioner of management and budget has
determined that at least an equal amount has
been committed to the project from nonstate
sources.
new text end

new text begin Subd. 7. new text end

new text begin Early Childhood Learning Child
Facilities
new text end

15,000,000

new text begin To the commissioner of human services for
grants under Minnesota Statutes, section
256E.37, to construct and rehabilitate early
childhood learning facilities.
new text end

new text begin Subd. 8. new text end

new text begin Perspectives Family Center
new text end

2,000,000

new text begin From the general fund to the commissioner of
human services in fiscal year 2018 for a grant
to Perspectives, Inc., to predesign, design,
construct, furnish, and equip the expansion
and renovation of the existing Perspectives
Family Center facility in St. Louis Park. The
expanded and renovated facility must be used
to promote the public welfare by providing
any or all of the following programs and
services: (1) supportive housing programs for
homeless women and their children; (2) mental
and chemical health programs; (3)
employment services; (4) academic, social
skills, and nutritional programs for homeless
and at-risk children; (5) an all-day therapeutic
early childhood development program for
homeless and at-risk children; and (6) a
culturally sensitive safe and nurturing
environment for at-risk children to meet with
their nonresidential parents. This appropriation
is not available until the commissioner of
management and budget has determined that
at least an equal amount has been expended
or committed to the project from nonstate
sources. Nonstate money spent on the project
since May 1, 2015, shall be included in the
determination of nonstate commitments to the
project.
new text end

new text begin Subd. 9. new text end

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

7,530,000

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

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

new text begin Subd. 10. new text end

new text begin Minneapolis - People's Center
new text end

2,750,000

new text begin From the general fund to the commissioner of
human services for a grant to the People's
Center in Minneapolis to design, renovate,
improve, construct, and equip a facility that
provides medical, dental, mental health, and
wellness services to all patients, regardless of
their ability to pay. This appropriation is not
available until the commissioner of
management and budget confirms that at least
$1,500,000 is committed to the project from
nonstate sources.
new text end

new text begin Subd. 11. new text end

new text begin Minneapolis - American Indian Center
new text end

155,000

new text begin From the general fund in fiscal year 2018 for
a grant to the Minneapolis American Indian
Center to predesign the renovation of the
center on Franklin Avenue, taking into account
and protecting the significant and unique art
and features of the center.
new text end

new text begin Subd. 12. new text end

new text begin Minneapolis - The Family Partnership
new text end

1,600,000

new text begin From the general fund in fiscal year 2018 to
the commissioner of human services for a
grant to the Family Partnership in Minneapolis
to predesign and design a facility to provide
mental health, early childhood education, and
other services to support children and families.
This appropriation is not available until at least
an equal amount of money is committed from
nonstate resources. This appropriation is
available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.
new text end

new text begin Subd. 13. new text end

new text begin Hermantown - Arrowhead Regional
Health and Wellness Center
new text end

8,000,000

new text begin For a grant to the city of Hermantown to
prepare the middle school site on the
Hermantown School District campus,
including demolition of a portion of the middle
school, and to design, construct a new addition
to the middle school building, and renovate
the remaining existing building, furnish, and
equip the facility as the Arrowhead Regional
Health and Wellness Center. The city may
enter into lease or management agreements
under Minnesota Statutes, section 16A.695,
for operation of the center. This appropriation
is not available until at least an equal amount
is committed to the project from nonstate
sources.
new text end

new text begin Subd. 14. new text end

new text begin Asset Preservation
new text end

1,500,000

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

Sec. 22. new text begin VETERANS AFFAIRS
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 12,851,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

5,000,000

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

new text begin Subd. 3. new text end

new text begin Minneapolis Veterans Home Truss
Bridge Project
new text end

7,851,000

new text begin To design, construct, renovate, and equip the
historic truss bridge on the Minneapolis
Veterans Home campus, including asbestos
and hazardous materials abatement and
associated site work.
new text end

Sec. 23. 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 56,653,000
new text end

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

new text begin Subd. 2. new text end

new text begin Asset Preservation
new text end

20,000,000

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

new text begin Subd. 3. new text end

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

23,400,000

new text begin (a) For capital improvements at the Minnesota
Correctional Facility - St. Cloud, as provided
in the following paragraphs.
new text end

new text begin (b) $19,000,000 of this appropriation is to
construct and equip a new intake unit and a
loading dock with a secure connection to a
new central warehouse at the facility.
new text end

new text begin (c) $4,400,000 of this appropriation is to
remove and replace deteriorated mortar with
new mortar on the granite perimeter wall
surrounding the facility.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Correctional Facility -
Willow River
new text end

1,500,000

new text begin To design, construct, renovate, furnish, and
equip new and existing buildings to increase
living unit and programming capacity for the
challenge incarceration program by at least 45
beds at the Minnesota Correctional Facility –
Willow River.
new text end

new text begin Subd. 5. new text end

new text begin Minnesota Correctional Facility - Togo
new text end

2,000,000

new text begin To design, construct, renovate, furnish, and
equip existing buildings, including
improvements to the wastewater and septic
systems, and to increase the program capacity
for the challenge incarceration program by at
least 30 beds at the Minnesota Correctional
Facility – Togo.
new text end

new text begin Subd. 6. new text end

new text begin Minnesota Correctional Facility - Lino
Lakes
new text end

5,000,000

new text begin To design, renovate, and equip an existing
vacant building into an offender living unit
that will add at least 60 beds to the capacity
at the Minnesota Correctional Facility – Lino
Lakes. The renovation includes removal of
hazardous materials, upgrades to comply with
current building codes, and construction of
functional living and program space.
new text end

new text begin Subd. 7. new text end

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

1,900,000

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

new text begin Subd. 8. new text end

new text begin Northeast Regional Corrections Center
new text end

2,853,000

new text begin For a grant to the Arrowhead Regional
Corrections Joint Powers Board to demolish
an existing facility and update, renovate, and
expand buildings used for vocational and
educational programming at the Northeast
Regional Corrections Center. This project will
expand the processing facility, add a
packaging facility, and improve farm
operations and vocational buildings, including
the replacement or repair of roofs and air
handling systems. Nonstate contributions to
improvements at the center made before or
after the enactment of this subdivision are
considered to be a sufficient match, and no
further nonstate match is required.
new text end

new text begin Subd. 9. 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. 24. 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 117,945,000
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 Asset Preservation
new text end

1,342,000

new text begin For asset preservation improvements and
betterments of a capital nature at the South
Minneapolis WorkForce Center, 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 Transportation Economic Development
new text end

10,000,000

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

new text begin Subd. 4. new text end

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

5,000,000

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

new text begin Subd. 5. new text end

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

21,000,000

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

new text begin Subd. 6. new text end

new text begin Anoka County - Regional Warehouse,
Distribution, and Office Facility
new text end

18,000,000

new text begin For a grant to Anoka County to predesign,
design, purchase land for, construct, furnish,
and equip a regional charitable food
warehouse, distribution, and office facility in
the city of Fridley. The county may enter into
lease or management agreements under
Minnesota Statutes, section 16A.695, for
operation of the facility. This appropriation is
not available until the commissioner
determines that an equal amount has been
committed to the project from nonstate
sources. Amounts expended for this project
by nonstate sources since June 1, 2016, shall
count toward the nonstate match.
new text end

new text begin Subd. 7. new text end

new text begin Bemidji - Regional Dental Facility
new text end

4,500,000

new text begin For a grant to the city of Bemidji to acquire
land for and to predesign, design, construct,
renovate, furnish, and equip a regional dental
facility in Bemidji, subject to Minnesota
Statutes, section 16A.695. This appropriation
is not available until the commissioner of
management and budget has determined that
at least $3,000,000 has been committed to the
project from nonstate sources. The value of
the land purchased or acquired by the city after
January 1, 2016, for this facility shall count
toward the nonstate match.
new text end

new text begin Subd. 8. new text end

new text begin Eagle's Healing Nest
new text end

300,000

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

new text begin Subd. 9. new text end

new text begin Hennepin County - Regional Medical
Examiner's Facility
new text end

25,932,000

new text begin For a grant to Hennepin County to design,
construct, furnish, and equip a 67,000 square
foot regional, state-of-the-art medical
examiner's facility. The facility shall: (1)
provide forensic death investigation and
autopsy services for Dakota, Hennepin, and
Scott Counties with the flexibility to
accommodate future partner counties and
agencies; (2) serve as a teaching facility for
the state, on the science of forensic pathology;
and (3) be located in southern Hennepin
County at a site that best supports access needs
for the three founding counties and reasonable
scene response times for the geographic
service area. This appropriation is not
available until the commissioner of
management and budget determines that an
amount sufficient to complete the project has
been committed from nonstate sources.
new text end

new text begin Subd. 10. new text end

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

3,000,000

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

new text begin Subd. 11. new text end

new text begin Madelia - Public Infrastructure
new text end

98,000

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

new text begin Subd. 12. new text end

new text begin Melrose - Public Infrastructure
new text end

3,850,000

new text begin (a) For a grant to the city of Melrose. Of this
appropriation:
new text end

new text begin (b) $2,950,000 is for the construction of an
electric substation and loop. This portion of
the appropriation is not available until the
commissioner determines that an amount
sufficient to complete the project has been
committed from nonstate sources; and
new text end

new text begin (c) $900,000 is for improvements of a capital
nature to repair and replace public
infrastructure damaged by a fire in Melrose
in September 2016. This portion of the
appropriation does not require a nonstate
contribution.
new text end

new text begin Subd. 13. new text end

new text begin Polk County - North Country Food
Bank
new text end

3,000,000

new text begin For a grant to Polk County to predesign,
design, construct, renovate, furnish, and equip
a regional charitable food warehouse,
distribution, and office facility in the city of
Crookston, subject to Minnesota Statutes,
section 16A.695. This appropriation is not
available until the commissioner of
management and budget determines that an
equal amount has been committed to the
project from nonstate sources. The value of
the land purchased or acquired by the county
after January 1, 2013, for this facility shall
count toward the nonstate match.
new text end

new text begin Subd. 14. new text end

new text begin Red Wing - River Town Renaissance
new text end

4,480,000

new text begin For a grant to the city of Red Wing to
complete removal and replacement of 250
linear feet of the harbor retaining wall; to
design, construct, furnish, and equip the
renovation of the historic T.B. Sheldon
Performing Arts Theater; and to design and
construct transient riverboat docking facilities,
levee wall extension, and levee promenade
improvements at Levee Park. This
appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete the project has been committed from
nonstate sources.
new text end

new text begin Subd. 15. new text end

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

3,443,000

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

new text begin Subd. 16. new text end

new text begin St. Paul - RiverCentre Parking Ramp
new text end

1,000,000

new text begin For a grant to the city of St. Paul for predesign
and design for a new RiverCentre parking
ramp to replace the existing RiverCentre
parking ramp. This appropriation is not
available until the commissioner of
management and budget determines that an
equal amount has been committed to the
project from nonstate sources. Predesign and
design costs paid by the RiverCentre since
January 1, 2017, count toward the match
requirement.
new text end

new text begin Subd. 17. new text end

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

13,000,000

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

Sec. 25. 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 167,866,000
new text end

new text begin To the Public Facilities Authority for the
purposes specified in this section. The Public
Facilities Authority may use the funds in this
section or other available funds to amend
project financing agreements awarded after
July 1, 2016, based on program changes in
article 2, sections 9 and 10.
new text end

new text begin Subd. 2. new text end

new text begin State Match for Federal Grants
new text end

25,000,000

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

new text begin Subd. 3. new text end

new text begin Water Infrastructure Funding Program
new text end

80,000,000

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

new text begin (b) $55,000,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range under
the clean water revolving fund program.
new text end

new text begin (c) $25,000,000 is for drinking water projects
listed on the Department of Health's project
priority list in the fundable range under the
drinking water revolving fund program.
new text end

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

new text begin Subd. 4. new text end

new text begin Point Source Implementation Grants
Program
new text end

62,000,000

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

new text begin Subd. 5. new text end

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

726,000

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

new text begin Subd. 6. new text end

new text begin Lilydale - Highway 13 Storm Water
Conveyance
new text end

140,000

new text begin From the general fund in fiscal year 2018 for
a grant to the city of Lilydale to design,
acquire, construct, and install a storm water
sewer and drop structure along Trunk
Highway 13 in Lilydale that will be large
enough to effectively collect water from
springs and storm water runoff from above
the road and safely convey the water to below
the bluff. The city must coordinate this project
with the Department of Transportation's Trunk
Highway 13 project. The appropriation and
project also include capital repairs and
improvements to existing drainage structures
along the Big Rivers Regional Trail at the base
of the bluff. This appropriation does not
require a nonstate contribution.
new text end

Sec. 26. new text begin MINNESOTA HOUSING FINANCE
AGENCY
new text end

new text begin $
new text end

new text begin 20,000,000
new text end

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

Sec. 27. 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 36,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Historic Fort Snelling
new text end

34,000,000

new text begin (a) To design, renovate, construct, furnish, and
equip facilities to support visitor services and
history programs at Historic Fort Snelling.
new text end

new text begin (b) This appropriation includes up to
$4,000,000 to design facilities to support
visitor services and history programs at
Historic Fort Snelling. Money for design is
available the day following final enactment
and is not contingent on demonstrating a
nonstate contribution to the project. Upon
completion of the design, the unspent portion
of the amount specified in this paragraph is
available for the purposes of paragraph (c).
new text end

new text begin (c) The balance of this appropriation is to
demolish the existing visitor center, renovate,
construct, furnish, and equip facilities,
including landscaping and wayfinding, at
Historic Fort Snelling. This appropriation is
not available until the commissioner of
management and budget determines that an
amount sufficient to complete the project has
been committed from nonstate sources.
new text end

new text begin Subd. 3. new text end

new text begin Historic Sites Asset Preservation
new text end

2,500,000

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end

new text begin 1,562,000
new text end

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

new text begin Subd. 2. new text end

new text begin Bond Proceeds Fund
new text end

1,522,000

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

new text begin Subd. 3. new text end

new text begin Trunk Highway Fund
new text end

40,000

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

Sec. 29. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this act from
the bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $1,394,859,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Transportation fund. new text end

new text begin To provide the money appropriated in this act from the
state transportation fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $185,500,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 3. new text end

new text begin Trunk highway fund. new text end

new text begin To provide the money appropriated in this act from the
bond proceeds account in the trunk highway fund, the commissioner of management and
budget shall sell and issue bonds of the state in an amount up to $40,040,000 in the manner,
upon the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to
167.52, and by the Minnesota Constitution, article XIV, section 11, at the times and in the
amounts requested by the commissioner of transportation. The proceeds of the bonds, except
accrued interest and any premium received from the sale of the bonds, must be deposited
in the bond proceeds account in the trunk highway fund.
new text end

new text begin Subd. 4. new text end

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

new text begin To provide the money appropriated in this
act from the maximum effort school loan fund, the commissioner of management and budget
shall sell and issue bonds of the state in an amount up to $14,070,000 in the manner, upon
the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675,
and by the Minnesota Constitution, article XI, sections 4 to 7.
new text end

Sec. 30. new text begin CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (n) $1,085,000 of the appropriation from the bond proceeds fund in Laws 2012, First
Special Session chapter 1, article 1, section 9, subdivision 2, to the commissioner of natural
resources for disaster relief, is canceled, and the bond sale authorization in Laws 2012, First
Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
new text end

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

Sec. 31. 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, 2018, no more than
$1,188,820,000 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. 32. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 2

MISCELLANEOUS

Section 1.

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

16A.967 LEWIS AND CLARK APPROPRIATION BONDS.

Subdivision 1.

Definitions.

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

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

(1) money appropriated by law from the general fund in any biennium for debt service
due with respect to obligations described in deleted text begin subdivision 2, paragraph (c) deleted text end new text begin subdivisions 2a
and 2bnew text end ;

(2) proceeds of the sale of obligations described in deleted text begin subdivision 2, paragraph (c)
deleted text end new text begin subdivisions 2a and 2bnew text end ;

(3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph deleted text begin (e)deleted text end new text begin (d)new text end ; and

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

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

Subd. 2.

Authorization to issue appropriation bonds.

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

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

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

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

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

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

deleted text begin (g)deleted text end new text begin (f)new text end The appropriation bonds are not subject to chapter 16C.

new text begin Subd. 2a. new text end

new text begin Project authorization. new text end

new text begin Appropriation bonds may be sold and issued in amounts
that, in the opinion of the commissioner, are necessary to provide sufficient money to the
Public Facilities Authority under subdivision 7, paragraph (a), not to exceed $19,000,000
net of costs of issuance, for the purposes as provided under this subdivision, and pay debt
service including capitalized interest, costs of issuance, costs of credit enhancement, or
make payments under other agreements entered into under subdivision 2, paragraph (d).
The bonds authorized by this subdivision are for the purposes of financing the land
acquisition, design, engineering, and construction of facilities and infrastructure necessary
to complete Phase 2 of the Lewis and Clark Regional Water System project, including
completion of the pipeline to Magnolia; extension of the project to the Lincoln-Pipestone
Rural Water System connection near Adrian; and engineering, design, and easement
acquisition for the final phase of the project to Worthington. No bonds shall be sold under
this subdivision until the commissioner determines that a nonstate match of at least
$9,000,000 is committed to this project phase. Upon certification by the Lewis and Clark
Joint Powers Board that the bond sale authorization provided by this subdivision has fully
met the needs of Phase 2 of the project, and to the extent there is additional authorization
remaining, this authorization is also available for the purposes of and on the same conditions
as subdivision 2b.
new text end

new text begin Subd. 2b. new text end

new text begin Additional project authorization. new text end

new text begin Appropriation bonds may be sold and
issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient
money to the Public Facilities Authority under subdivision 7, paragraph (b), not to exceed
$11,500,000 net of costs of issuance, for the purposes as provided under this subdivision,
and pay debt service including capitalized interest, costs of issuance, costs of credit
enhancement, or make payments under other agreements entered into under subdivision 2,
paragraph (d). The bonds authorized by this subdivision are for the purposes of financing
the land acquisition, design, engineering, and construction of facilities and infrastructure
necessary to complete Phase 3 of the Lewis and Clark Regional Water System project,
including extension of the project from the Lincoln-Pipestone Rural Water System connection
near Adrian to Worthington, construction of a reservoir in Nobles County and a meter
building in Worthington, and acquisition and installation of a supervisory control and data
acquisition (SCADA) system. No bonds shall be sold under this subdivision until the
commissioner determines that a nonstate match of at least $9,000,000 is committed to the
final phase of the project.
new text end

Subd. 3.

Form; procedure.

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

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

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

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

(e) Notwithstanding any other law, appropriation bonds issued under this section shall
be fully negotiable.

Subd. 4.

Refunding bonds.

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

Subd. 5.

Appropriation bonds as legal investments.

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

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

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

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

Subd. 6.

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

The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.

Subd. 7.

Appropriation of proceeds.

new text begin (a) new text end The proceeds of appropriation bonds new text begin issued
under subdivision 2anew text end and interest credited to the special appropriation Lewis and Clark bond
proceeds fund are appropriatednew text begin as follows:
new text end

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

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

new text begin (b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited
to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:
new text end

new text begin (1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers
Board for payment of capital expenses as specified in subdivision 2b; and
new text end

new text begin (2) to the commissioner for debt service on the bonds including capitalized interest,
nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and
payments under any agreements entered into under subdivision 2, paragraph (d), each as
permitted by state and federal law.
new text end

Subd. 8.

Appropriation for debt service and other purposes.

new text begin (a) new text end An amount, up to
$1,351,000 needed to pay principal and interest on appropriation bonds issued under deleted text begin this
sectiondeleted text end new text begin subdivision 2anew text end is appropriated each fiscal year from the general fund to the
commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
otherwise pursuant to subdivision 6, for deposit into the bond payments account established
for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.

new text begin (b) An amount up to $876,000 needed to pay principal and interest on appropriation
bonds issued under subdivision 2b is appropriated each fiscal year from the general fund
to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
otherwise pursuant to subdivision 6, for deposit into the bond payments account established
for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
appropriation is available beginning in fiscal year 2018 and through fiscal year 2039. The
appropriation in fiscal year 2018 is limited to $438,000.
new text end

Subd. 9.

Waiver of immunity.

The waiver of immunity by the state provided for by
section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
contracts to which the commissioner is a party.

Sec. 2.

new text begin [16A.968] DULUTH STEAM PLANT APPROPRIATION BONDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

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

new text begin (1) money appropriated by law from the general fund in any biennium for debt service
due with respect to obligations described in subdivision 2, paragraph (a);
new text end

new text begin (2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);
new text end

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

new text begin (4) investment earnings on amounts in clauses (1) to (3).
new text end

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

new text begin Subd. 2. new text end

new text begin Authorization to issue appropriation bonds. new text end

new text begin (a) Subject to the limitations of
this subdivision, the commissioner may sell and issue appropriation bonds of the state under
this section for public purposes as provided by law, including, in particular, for the purposes
of financing the predesign, design, engineering, renovation, construction, furnishing, and
equipping of facilities and infrastructure to upgrade the Duluth district heating facility and
systems, including conversion of the distribution system along Superior Street from steam
with no condensate return, to closed-loop hot water. Appropriation bonds may be sold and
issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient
money to the commissioner of employment and economic development under subdivision
7, not to exceed $21,000,000 net of costs of issuance, for the purposes as provided under
this subdivision, and to pay debt service including capitalized interest, costs of issuance,
costs of credit enhancement, or make payments under other agreements entered into under
paragraph (d). No bonds shall be sold under this subdivision until the commissioner
determines that amounts sufficient to complete the project have been committed.
new text end

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

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

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

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

new text begin (f) The appropriation bonds are not subject to chapter 16C.
new text end

new text begin Subd. 3. new text end

new text begin Form; procedure. new text end

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

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

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

new text begin (d) Appropriation bonds must bear interest at a fixed or variable rate.
new text end

new text begin (e) Notwithstanding any other law, appropriation bonds issued under this section shall
be fully negotiable.
new text end

new text begin Subd. 4. new text end

new text begin Refunding bonds. new text end

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

new text begin Subd. 5. new text end

new text begin Appropriation bonds as legal investments. new text end

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

new text begin (1) the state, the Investment Board, public officers, municipal corporations, political
subdivisions, and public bodies;
new text end

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

new text begin (3) personal representatives, guardians, trustees, and other fiduciaries.
new text end

new text begin Subd. 6. new text end

new text begin No full faith and credit; state not required to make appropriations. new text end

new text begin The
appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
powers of the state are not pledged to the payment of the appropriation bonds or to any
payment that the state agrees to make under this section. Appropriation bonds shall not be
obligations paid directly, in whole or in part, from a tax of statewide application on any
class of property, income, transaction, or privilege. Appropriation bonds shall be payable
in each fiscal year only from amounts that the legislature may appropriate for debt service
for any fiscal year, provided that nothing in this section shall be construed to require the
state to appropriate money sufficient to make debt service payments with respect to the
appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
of final payment of the principal of and interest on the appropriation bonds.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation of proceeds. new text end

new text begin The proceeds of appropriation bonds issued under
subdivision 2, paragraph (a), and interest credited to the special appropriation Duluth Steam
Plant bond proceeds fund are appropriated as follows:
new text end

new text begin (1) to the commissioner of employment and economic development for a grant to the
city of Duluth for payment of capital expenses as specified in subdivision 2, paragraph (a);
and
new text end

new text begin Subd. 8. new text end

new text begin Appropriation for debt service and other purposes. new text end

new text begin An amount, up to
$1,600,000 needed to pay principal and interest on appropriation bonds issued under
subdivision 2, paragraph (a), is appropriated each fiscal year from the general fund to the
commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
otherwise pursuant to subdivision 6, for deposit into the bond payments account established
for such purpose in the special Duluth Steam Plant appropriation bond proceeds fund. The
appropriation is available beginning in fiscal year 2018 and through fiscal year 2039. The
appropriation in fiscal year 2018 is limited to $800,000.
new text end

new text begin Subd. 9. new text end

new text begin Waiver of immunity. new text end

new text begin The waiver of immunity by the state provided for by
section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
contracts to which the commissioner is a party.
new text end

Sec. 3.

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

Subd. 2.

Standards.

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

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

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

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

Sec. 4.

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

Subdivision 1.

Upper bluff; lease terms.

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

Sec. 5.

new text begin [174.13] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; accounts. new text end

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Standards. new text end

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

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

new text begin Subd. 3. new text end

new text begin Eligible expenditures; limitations. new text end

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

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

new text begin Subd. 4. new text end

new text begin Criteria for priorities. new text end

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

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

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

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

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

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

Sec. 6.

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

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

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

new text begin Subd. 2. new text end

new text begin Creation of account. new text end

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

new text begin Subd. 3. new text end

new text begin Grants. new text end

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

new text begin Subd. 4. new text end

new text begin Eligible applicants. new text end

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

new text begin Subd. 5. new text end

new text begin Criteria for grant award. new text end

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

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

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

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

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

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

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

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

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

Sec. 7.

Minnesota Statutes 2016, section 219.166, is amended to read:

219.166 ESTABLISHMENT OF QUIET ZONES.

new text begin Subdivision 1. new text end

new text begin Eligible applicants. new text end

A county, statutory or home rule charter city, or
town may apply to the Federal Railroad Administration for the establishment of a "quiet
zone" new text begin at a public highway-rail grade crossing new text end in which the sounding of horns, whistles, or
other audible warnings by locomotives is regulated or prohibited. All quiet zones, regulations,
and ordinances adopted under this section must conform to federal law and the regulations
of the Federal Railroad Administration under deleted text begin United Statesdeleted text end Codenew text begin of Federal Regulationsnew text end ,
title 49, deleted text begin section 20153deleted text end new text begin parts 222 and 229new text end .

new text begin Subd. 2. new text end

new text begin Purpose of program. new text end

new text begin A public highway-rail grade crossing quiet zone program
is established for the purpose of improving and rehabilitating railroad rights-of-way and
other public and private rail facilities, including necessary safety-related capital improvements
at public highway-rail grade crossings where quiet zones are established.
new text end

new text begin Subd. 3. new text end

new text begin Creation of account. new text end

new text begin A public highway-rail grade crossing quiet zone account
is established in the bond proceeds fund. Money in the account may only be used for capital
costs associated with the establishment of a quiet zone at a public highway-rail grade
crossing.
new text end

new text begin Subd. 4. new text end

new text begin Eligible applicants for state assistance. new text end

new text begin Counties, statutory or home rule
charter cities, or towns that are responsible for traffic control or law enforcement at a public
highway-rail grade crossing qualify as eligible applicants to the Federal Railroad
Administration (FRA) for the establishment of a quiet zone may apply to the commissioner
for financial assistance for establishment of a quiet zone.
new text end

new text begin Subd. 5. new text end

new text begin Grants. new text end

new text begin The commissioner may approve grants for financial assistance to
eligible applicants for capital costs associated with the establishment of a quiet zone at a
public highway-rail grade crossing. Qualifying capital costs include, but are not limited to,
the installation of grade crossing active warning devices and other traffic control devices
and associated roadwork necessary to meet the FRA criteria for approval of the quiet zone.
new text end

new text begin Subd. 6. new text end

new text begin Criteria for grant award. new text end

new text begin The commissioner shall consider the following
criteria to evaluate applications for a grant award for a quiet zone project:
new text end

new text begin (1) the number of residents that will benefit from the establishment of the quiet zone
through a reduction in train horn noise;
new text end

new text begin (2) the number of existing grade crossings that will be closed, thereby improving public
safety;
new text end

new text begin (3) evidence that the project meets FRA qualifications and requirements for a quiet zone,
without the need for additional annual review by FRA per federal quiet zone regulations;
new text end

new text begin (4) nonstate financial participation as a percentage of total project cost; and
new text end

new text begin (5) the amount of state financial participation per resident benefiting from the project.
new text end

Sec. 8.

Minnesota Statutes 2016, section 256E.37, is amended to read:

256E.37 EARLY CHILDHOOD LEARNING AND CHILD PROTECTION
FACILITIES.

Subdivision 1.

Grant authority.

The commissioner may make grants to state agencies
and political subdivisions to construct or rehabilitate facilities for early childhood programsdeleted text begin ,
crisis nurseries, or parenting time centersdeleted text end . The following requirements apply:

(1) The facilities must be owned by the state or a political subdivision, but may be leased
under section 16A.695 to organizations that operate the programs. The commissioner must
prescribe the terms and conditions of the leases.

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

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

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

Subd. 2.

Grant priority.

(a) The commissioner must give priority to:

(1) new text begin projects located in counties not included in the definition under section 473.121,
subdivision 4;
new text end

new text begin (2) new text end projects in counties or municipalities with the highest percentage of children living
in poverty;

deleted text begin (2)deleted text end new text begin (3)new text end grants that involve collaboration among sponsors of programs under this section;
and

deleted text begin (3)deleted text end new text begin (4)new text end where feasible, grants for programs that utilize Youthbuild under sections
116L.361 to 116L.366deleted text begin for at least 25 percent of each grant awarded or $50,000 of the labor
portion of the construction, whichever is less, if:deleted text end new text begin .
new text end

deleted text begin (i) the work is appropriate for Youthbuild, as mutually agreed upon by the grantee and
the local Youthbuild program, considering safety and skills needed;
deleted text end

deleted text begin (ii) it is demonstrated by Youthbuild that using Youthbuild will not increase the overall
cost of the project; and
deleted text end

deleted text begin (iii) eligible programs consult with appropriate labor organizations to deliver education
and training.
deleted text end

(b) The commissioner may give priority to:

(1) projects that collaborate with child care providers, including all-day and school-age
child care programs, special needs care, sick child care, nontraditional hour care, and
programs that include services to refugee and immigrant families;new text begin and
new text end

deleted text begin (2) grants for programs that will increase their child care workers' wages as a result of
the grant; and
deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end projects that will improve the quality of early childhood programs.

Sec. 9.

Minnesota Statutes 2016, section 363A.36, is amended to read:

363A.36 CERTIFICATES OF COMPLIANCE FOR PUBLIC CONTRACTS.

Subdivision 1.

Scope of application.

(a) For all contracts for goods and services in
excess of $100,000, no department or agency of the state shall accept any bid or proposal
for a contract or agreement from any business having more than 40 full-time employees
within this state on a single working day during the previous 12 months, unless the
commissioner is in receipt of the business' affirmative action plan for the employment of
minority persons, women, and qualified disabled individuals. No department or agency of
the state shall execute any such contract or agreement until the affirmative action plan has
been approved by the commissioner. Receipt of a certificate of compliance issued by the
commissioner shall signify that a firm or business has an affirmative action plan that has
been approved by the commissioner. A certificate shall be valid for a period of four years.
A municipality as defined in section 466.01, subdivision 1, that receives state money for
any reason is encouraged to prepare and implement an affirmative action plan for the
employment of minority persons, women, and the qualified disabled and submit the plan
to the commissioner.

(b) This paragraph applies to a contract for goods or services in excess of $100,000 to
be entered into between a department or agency of the state and a business that is not subject
to paragraph (a), but that has more than 40 full-time employees on a single working day
during the previous 12 months in the state where the business has its primary place of
business. A department or agency of the state may not execute a contract or agreement with
a business covered by this paragraph unless the business has a certificate of compliance
issued by the commissioner under paragraph (a) or the business certifies that it is in
compliance with federal affirmative action requirements.

(c) This section does not apply to contracts entered into by the State Board of Investment
for investment options under section 356.645.

(d) The commissioner shall issue a certificate of compliance or notice of denial within
15 days of the application submitted by the business or firm.

new text begin (e) The requirements in paragraphs (a) and (b) apply to all contracts or agreements
executed by public officers or agencies for goods and services in excess of $100,000 for
projects subject to section 16A.695.
new text end

Subd. 2.

Filing fee; account; appropriation.

The commissioner shall collect a $150
fee for each certificate of compliance issued by the commissioner or the commissioner's
designated agent. The proceeds of the fee must be deposited in a human rights fee special
revenue account. Money in the account is appropriated to the commissioner to fund the cost
of issuing certificates and investigating grievances.

Subd. 3.

Revocation of certificate.

Certificates of compliance may be suspended or
revoked by the commissioner if a holder of a certificate has not made a good faith effort to
implement an affirmative action plan that has been approved by the commissioner. If a
contractor does not effectively implement an affirmative action plan approved by the
commissioner pursuant to subdivision 1, or fails to make a good faith effort to do so, the
commissioner may refuse to approve subsequent plans submitted by that firm or business.

Subd. 4.

Revocation of contract.

A contract awarded by a department or agency of the
statenew text begin , or any other public officer or agency subject to section 16A.695,new text end may be terminated
or abridged by the department or agencynew text begin , or other public officer or agency subject to section
16A.695,new text end because of suspension or revocation of a certificate based upon a contractor's
failure to implement or make a good faith effort to implement an affirmative action plan
approved by the commissioner under this section. If a contract is awarded to a person who
does not have a contract compliance certificate required under subdivision 1, the
commissioner may void the contract on behalf of the state.

Subd. 5.

Technical assistance.

In the case of a contractor whose certificate of compliance
has been suspended, the commissioner shall provide technical assistance that may enable
the contractor to be recertified within 90 days after the contractor's certificate has been
suspended.

Sec. 10.

Minnesota Statutes 2016, section 363A.44, subdivision 1, is amended to read:

Subdivision 1.

Scope.

(a) No department, agency of the state, the Metropolitan Council,
or an agency subject to section 473.143, subdivision 1, shall execute a contract for goods
or services or an agreement for goods or services in excess of $500,000 with a business that
has 40 or more full-time employees in this state or a state where the business has its primary
place of business on a single day during the prior 12 months, unless the business has an
equal pay certificate or it has certified in writing that it is exempt. A certificate is valid for
four years.

(b) This section does not apply to a business with respect to a specific contract if the
commissioner of administration determines that application of this section would cause
undue hardship to the contracting entity. This section does not apply to a contract to provide
goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I,
256L, and 268A, with a business that has a license, certification, registration, provider
agreement, or provider enrollment contract that is prerequisite to providing those goods and
services. This section does not apply to contracts entered into by the State Board of
Investment for investment options under section 352.965, subdivision 4.

new text begin (c) The requirements in paragraph (a) apply to all contracts or agreements executed by
public officers or agencies for goods and services in excess of $500,000 for projects subject
to section 16A.695.
new text end

Sec. 11.

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

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

Subdivision 1.

Establishment of program.

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

Subd. 3.

Program administration.

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

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

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

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

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

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

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

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

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

Subd. 5a.

Type and amount of assistance.

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

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

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

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

deleted text begin Subd. 5b. deleted text end

deleted text begin Special assessment deferral. deleted text end

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

Subd. 6.

Disbursements.

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

deleted text begin Subd. 7. deleted text end

deleted text begin Loan repayments. deleted text end

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

Subd. 8.

Eligibility.

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

Subd. 9.

Funding limitation.

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

Subd. 11.

Report on needs.

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

Subd. 12.

System replacement fund.

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

Subd. 14.

Consistency with land use plans.

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

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

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

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

Sec. 12.

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

446A.073 POINT SOURCE IMPLEMENTATION GRANTS.

Subdivision 1.

Program established.

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

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

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

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

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

Subd. 2.

Grant application.

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

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

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

Subd. 3.

Project priorities.

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

Subd. 4.

Grant approval.

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

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

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

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

Subd. 5.

Grant disbursement.

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

Sec. 13.

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

Subd. 9.

Other uses of fund.

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

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

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

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

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

(5) to earn interest on fund accounts;

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

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

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

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

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

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

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

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

Sec. 14.

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

Subdivision 1.

Bonding authority.

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

Sec. 15.

Minnesota Statutes 2016, section 462A.37, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

deleted text begin (b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

deleted text begin (d)deleted text end new text begin (c)new text end "Debt service" means the amount payable in any fiscal year of principal, premium,
if any, and interest on housing infrastructure bonds and the fees, charges, and expenses
related to the bonds.

deleted text begin (e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.
deleted text end

deleted text begin (f)deleted text end new text begin (d)new text end "Housing infrastructure bonds" means bonds issued by the agency under this
chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the
Internal Revenue Code, finance qualified residential rental projects within the meaning of
Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private
activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the
purpose of financing or refinancing affordable housing authorized under this chapter.

deleted text begin (g)deleted text end new text begin (e)new text end "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

new text begin (f) "Senior" means a person 55 years of age or older with an annual household income
not greater than 50 percent of:
new text end

new text begin (1) the metropolitan area median income for persons in the metropolitan area as defined
in section 473.121, subdivision 2; or
new text end

new text begin (2) the statewide median income for persons outside the metropolitan area.
new text end

new text begin (g) "Senior housing" means housing intended and operated for occupancy by at least
one senior per unit with at least 80 percent of the units occupied and for which there is
publication of, and adherence to, policies and procedures that demonstrate an intent by the
owner or manager to provide housing for seniors. Senior housing may be developed in
conjunction with and as a distinct portion of mixed-income senior housing developments
which use a variety of public or private financing sources.
new text end

(h) "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
bonds authorized in 2016 and thereafter.
new text end

Sec. 16.

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

Subd. 2.

Authorization.

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

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

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

deleted text begin (3)deleted text end new text begin (2)new text end to finance that portion of the costs of acquisition of property that is attributable
to the land to be leased by community land trusts to low- and moderate-income homebuyers;
deleted text begin and
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in part,
outstanding bonds previously issued by the agency or another government unit to finance
or refinance such costsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing.
new text end

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

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

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

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

new text begin (1) demonstrate a commitment to maintaining the housing financed as affordable to
seniors;
new text end

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

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

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

new text begin (5) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area as defined in section 473.121, subdivision 2.
To the extent practicable, the agency shall balance the loans made between projects in the
metropolitan area, as defined in section 473.121, subdivision 2, and projects outside the
metropolitan area. Of the loans made to projects outside the metropolitan area, the agency
shall, to the extent practicable, balance the loans made between projects in counties or cities
with a population of 20,000 or less, as established by the most recent decennial census, and
projects in counties or cities with populations in excess of 20,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
bonds authorized in 2016 and thereafter.
new text end

Sec. 17.

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

Subd. 2a.

Additional authorization.

In addition to the amount authorized in subdivision
2, the agency may issue up to deleted text begin $80,000,000deleted text end new text begin $97,000,000new text end of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.

Sec. 18.

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

Subd. 2b.

Additional authorization.

In addition to the amount authorized in subdivisions
2 and 2a, the agency may issue up to deleted text begin $10,000,000deleted text end new text begin $13,000,000new text end of housing infrastructure
bonds in one or more series to which the payments made under this section may be pledged.

Sec. 19.

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

new text begin Subd. 2c. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2, 2a, and 2b, the agency may issue up to $70,000,000 in housing infrastructure bonds in
one or more series to which the payments under this section may be pledged.
new text end

Sec. 20.

Minnesota Statutes 2016, section 462A.37, subdivision 5, is amended to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on each
series of bonds issued under subdivisions 2a deleted text begin anddeleted text end new text begin ,new text end 2bnew text begin , and 2cnew text end .

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

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

new text begin (d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,500,000
in fiscal year 2018 and $5,000,000 annually thereafter. The amounts necessary to make the
transfers are appropriated from the general fund to the commissioner of management and
budget.
new text end

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

Sec. 21.

Laws 2015, chapter 75, article 1, section 3, subdivision 3, is amended to read:

Subd. 3.

State Roads

(a) Operations and Maintenance

288,405,000

290,916,000

The base appropriation in fiscal year 2018 is
$292,140,000 and in fiscal year 2019 is
$301,545,000.

(b) Program Planning and Delivery

237,529,000

231,252,000

$130,000 in each year is available for
administrative costs of the targeted group
business program.

$266,000 in each year is available for grants
to metropolitan planning organizations outside
the seven-county metropolitan area.

$900,000 in each year is available for grants
for transportation studies outside the
metropolitan area to identify critical concerns,
problems, and issues. These grants are
available: (1) to regional development
commissions; (2) in regions where no regional
development commission is functioning, to
joint powers boards established under
agreement of two or more political
subdivisions in the region to exercise the
planning functions of a regional development
commission; and (3) in regions where no
regional development commission or joint
powers board is functioning, to the
department's district office for that region.

$1,000,000 in each year is available for
management of contaminated and regulated
material on property owned by the Department
of Transportation, including mitigation of
property conveyances, facility acquisition or
expansion, chemical release at maintenance
facilities, and spills on the trunk highway
system where there is no known responsible
party. If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

$6,804,000 in the first year and $1,000,000 in
the second year are available for the purposes
stated in Minnesota Statutes, section 12A.16,
subdivision 2.

The base appropriation for program planning
and delivery in fiscal year 2018 is
$227,004,000 and in fiscal year 2019 is
$234,331,000.

779,664,000

744,166,000

This appropriation is for the actual
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts, internal department costs associated
with delivering the construction program, and
consultant usage to support these activities.
This includes the cost of actual payment to
landowners for lands acquired for highway
rights-of-way, payment to lessees, interest
subsidies, and relocation expenses.

$1,000,000 in the first year is to complete
projects using funds made available to the
commissioner of transportation under title XII
of the American Recovery and Reinvestment
Act of 2009, Public Law 111-5, and
implemented under Minnesota Statutes,
section 161.36, subdivision 7.

$10,000,000 in each year is for the
transportation economic development program
under Minnesota Statutes, section 174.12.

The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.

The commissioner may transfer up to
$15,000,000 each year to the transportation
revolving loan fund.

The commissioner may receive money
covering other shares of the cost of partnership
projects. These receipts are appropriated to
the commissioner for these projects.

The base appropriation for state road
construction in each of fiscal years 2018 and
2019 is $695,800,000.

(d) Highway Debt Service

197,381,000

231,199,000
234,386,000

$187,881,000 the first year and deleted text begin $221,699,000deleted text end new text begin
$224,886,000new text end the second year are for transfer
to the state bond fund. If this appropriation is
insufficient to make all transfers required in
the year for which it is made, the
commissioner of management and budget shall
transfer the deficiency amount under the
statutory open appropriation, and notify the
chairs and ranking minority members of the
legislative committees with jurisdiction over
transportation finance and the chairs of the
senate Committee on Finance and the house
of representatives Committee on Ways and
Means of the amount of the deficiency. Any
excess appropriation cancels to the trunk
highway fund.

(e) Statewide Radio Communications

5,358,000

5,486,000

Appropriations by Fund
	2016	2017
General	35,000	3,000
Trunk Highway	5,323,000	5,483,000

$3,000 in each year is from the general fund
to equip and operate the Roosevelt signal
tower for Lake of the Woods weather
broadcasting.

$32,000 in the first year is from the general
fund for a weather transmitter in Lake of the
Woods County.

The base appropriation from the trunk
highway fund in fiscal year 2018 is $5,645,000
and in fiscal year 2019 is $5,826,000.

Sec. 22. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, sections 123A.44, 123A.441, 123A.482, 123A.64, and 123A.065,
the revisor of statutes shall replace the range reference "sections 123A.44 to 123A.446"
with "sections 123A.44 to 123A.445."
new text end

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

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

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

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

SF 640

Bill Text Versions

ARTICLE 1

APPROPRIATIONS

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

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

new text begin Subd. 3. new text end

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

new text begin Subd. 4. new text end

new text begin Health Sciences Education Facility new text end

new text begin Subd. 5. new text end

new text begin Plant Growth Research Facility new text end

new text begin Subd. 6. new text end

new text begin University Share new text end

new text begin Subd. 7. new text end

new text begin Unspent Appropriations new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

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

new text begin Subd. 3. new text end

new text begin Bemidji State University new text end

new text begin Subd. 4. new text end

new text begin Hibbing Community College new text end

new text begin Subd. 5. new text end

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

new text begin Subd. 6. new text end

new text begin Minnesota State University, Mankato new text end

new text begin Subd. 7. new text end

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

new text begin Subd. 8. new text end

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

new text begin Subd. 9. new text end

new text begin Rochester Community and Technical College new text end

new text begin Subd. 10. new text end

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

new text begin Subd. 11. new text end

new text begin St. Cloud State University new text end

new text begin Subd. 12. new text end

new text begin Winona State University, Education Village, Phase 2 new text end

new text begin Subd. 13. new text end

new text begin Debt Service new text end

new text begin Subd. 14. new text end

new text begin Unspent Appropriations new text end

Sec. 4. new text begin EDUCATIONnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

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

new text begin Subd. 3. new text end

new text begin Library Construction Grants new text end

new text begin Subd. 4. new text end

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Asset Preservation new text end

new text begin Subd. 3. new text end

new text begin Campus Track new text end

new text begin Subd. 4. new text end

new text begin Security Corridor new text end

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

Sec. 7. new text begin NATURAL RESOURCESnew text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation new text end

new text begin Subd. 2. new text end

new text begin Natural Resources Asset Preservation new text end

new text begin Subd. 3. new text end

new text begin Flood Hazard Mitigation new text end

new text begin Subd. 4. new text end

new text begin Buildings and Facilities Development new text end

new text begin Subd. 5. new text end

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

new text begin Subd. 6. new text end

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

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

new text begin Total Appropriation
new text end

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

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

new text begin Health Sciences Education Facility
new text end

new text begin Plant Growth Research Facility
new text end

new text begin University Share
new text end

new text begin Unspent Appropriations
new text end

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

new text begin Total Appropriation
new text end

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

new text begin Bemidji State University
new text end

new text begin Hibbing Community College
new text end

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

new text begin Minnesota State University, Mankato
new text end

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

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

new text begin Rochester Community and Technical
College
new text end

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

new text begin St. Cloud State University
new text end

new text begin Winona State University, Education
Village, Phase 2
new text end

new text begin Debt Service
new text end

new text begin Unspent Appropriations
new text end

Sec. 4. new text begin EDUCATION
new text end

new text begin Total Appropriation
new text end

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

new text begin Library Construction Grants
new text end

new text begin Olmsted County - Dyslexia Institute of
Minnesota
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Sec. 5. new text begin MINNESOTA STATE ACADEMIES
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new text begin Total Appropriation
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new text begin Asset Preservation
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new text begin Campus Track
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new text begin Security Corridor
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Sec. 6. new text begin PERPICH CENTER FOR ARTS
EDUCATION
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Sec. 7. new text begin NATURAL RESOURCES
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new text begin Total Appropriation
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new text begin Natural Resources Asset Preservation
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new text begin Flood Hazard Mitigation
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new text begin Buildings and Facilities Development
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new text begin Dam Renovation, Repair, Removal
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new text begin RIM Critical Habitat
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new text begin Fish Hatchery Development
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new text begin Mille Lacs Lake Fisheries Management
Station
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new text begin Reforestation and Stand Improvement
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new text begin Native Prairie Bank Acquisition and
Development
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new text begin Itasca State Park Renovations
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new text begin Wildlife Management Areas/ Aquatic
Management Areas Acquisition and
Development
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new text begin State Park Campground Renovations
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new text begin Park, State Recreation Area, and Trail
Development
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new text begin Scientific and Natural Area Acquisition
and Development
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new text begin Two Harbors - Small Craft Harbor
Facility
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new text begin St. Paul - Shade Tree Reforestation
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new text begin Lake County - Prospectors ATV Trail
System
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new text begin Unspent Appropriations
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Sec. 8. new text begin POLLUTION CONTROL AGENCY
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new text begin Total Appropriation
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new text begin St. Louis River Cleanup
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new text begin Closed Landfill Cleanup
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new text begin Capital Assistance Program
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Sec. 9. new text begin AGRICULTURE
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Sec. 10. new text begin RURAL FINANCE AUTHORITY
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Sec. 11. new text begin BOARD OF WATER AND SOIL
RESOURCES
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new text begin Total Appropriation
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new text begin Reinvest in Minnesota (RIM) Reserve
Program
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new text begin Local Government Roads Wetland
Replacement Program
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Sec. 12. new text begin MINNESOTA ZOOLOGICAL
GARDEN
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new text begin Total Appropriation
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new text begin Asset Preservation
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new text begin Heart of the Zoo II
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Sec. 13. new text begin ADMINISTRATION
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new text begin Total Appropriation
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new text begin Capitol Complex - Physical Security
Upgrades
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new text begin Centennial Parking Ramp
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new text begin Visitor and Staff Parking Facilities
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new text begin Capitol Complex Monuments and
Memorials
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new text begin Capital Asset Preservation and
Replacement Account
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Sec. 14. new text begin MN.IT
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Sec. 15. new text begin MINNESOTA AMATEUR SPORTS
COMMISSION
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new text begin Total Appropriation
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