SF 2839

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 05/03/2016 08:58am

A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and other improvements of a capital nature with certain
conditions; modifying previous appropriations; establishing new programs
and modifying existing programs; authorizing the sale and issuance of state
bonds; appropriating money; amending Minnesota Statutes 2014, sections
85.34, subdivision 1; 161.14, by adding a subdivision; 446A.072; 446A.073,
as amended; 446A.081, subdivision 9; 446A.12, subdivision 1; 462A.37, by
adding a subdivision; Minnesota Statutes 2015 Supplement, sections 16A.967;
462A.37, subdivision 5; Laws 2002, chapter 393, section 22, subdivision 6, as
amended; Laws 2011, First Special Session chapter 12, section 13, subdivision
8; Laws 2012, chapter 293, sections 7, subdivision 8; 17, subdivision 4; Laws
2014, chapter 294, article 1, section 17, subdivisions 6, 12; Laws 2015, First
Special Session chapter 5, article 1, section 19; proposing coding for new law
in Minnesota Statutes, chapters 16A; 115; 219; repealing Minnesota Statutes
2014, section 123A.446.

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

ARTICLE 1

APPROPRIATIONS

Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

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. Unless otherwise specified, an
appropriation that fully funds a project does not require a nonstate match. Unless otherwise
specified, general fund appropriations in this act are onetime and are in fiscal year 2017.

APPROPRIATIONS

Sec. 2. UNIVERSITY OF MINNESOTA

Subdivision 1. Total Appropriation

$

160,734,000

To the Board of Regents of the University
of Minnesota for the purposes specified in
this section.

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

61,500,000

To be spent in accordance with Minnesota
Statutes, section 135A.046.

Subd. 3. Duluth - Chemical Sciences and Advanced Materials Science Building

27,167,000

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

Subd. 4. Twin Cities - Health Sciences Education Facility

66,667,000

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.

Subd. 5. Twin Cities - Plant Growth Research Facility

4,400,000

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.

Subd. 6. Duluth - Glensheen Mansion

1,000,000

To predesign, design, construct, furnish,
and equip critical structural repairs and
renovation of the servants' porch.

Subd. 7. University Share

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.

Subd. 8. Unspent Appropriations

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.

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation

$

173,666,000

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

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

70,000,000

To be spent in accordance with Minnesota
Statutes, section 135A.046.

Subd. 3. Anoka Ramsey Community College

4,965,000

To design, renovate, furnish, and equip
the Humanities Building and to design the
Nursing and Active Learning Center and
related campus redevelopment.

Subd. 4. Bemidji State University

18,097,000

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.

Subd. 5. Century College

5,500,000

To create flexible space for classroom,
lab, and other learning use, to renovate the
adjacent welding laboratory, and to expand
robotic welding facilities.

Subd. 6. Hennepin Technical College Advanced Manufacturing Integration and Revitalization Phase I; Design and Renovation

8,231,000

For Phase I of the Advanced Manufacturing
Integration and Revitalization (AMIR)
project on the Brooklyn Park campus
of Hennepin Technical College that will
renovate and update approximately 25,530
square feet of skilled technical spaces. Phase
I includes design of the entire project; roof
replacement; construction, furnishing, and
equipping of a new entry to the AMIR
programs; and remodeling existing lab
spaces and classrooms associated with the
electronic, HVAC, and welding programs.

Subd. 7. Hibbing Community College

9,958,000

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.

Subd. 8. Minnesota State Community and Technical College

(a) Fergus Falls Campus

978,000

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.

(b) Wadena Campus

820,000

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.

Subd. 9. Northland Community and Technical College, East Grand Forks

826,000

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

Subd. 10. Rochester Community and Technical College

20,385,000

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.

Subd. 11. South Central College, North Mankato

8,600,000

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

Subd. 12. Winona State University, Education Village, Phase 2

25,306,000

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.

Subd. 13. Debt Service

(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.

(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.

(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.

Subd. 14. Unspent Appropriations

(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.

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

Sec. 4. EDUCATION

Subdivision 1. Total Appropriation

$

22,234,000

To the commissioner of education for the
purposes specified in this section.

Subd. 2. Library Construction Grants

2,000,000

For library construction grants under
Minnesota Statutes, section 134.45.

Subd. 3. Bagley - Library Furnishings

50,000

From the general fund for a grant to the city
of Bagley for improvements, furnishings,
and equipment for the city's library or
to reimburse the city for improvements,
furnishings, and equipment for the city's
library. This appropriation does not require a
nonstate contribution.

Subd. 4. Cambridge - East Central Regional Library

2,414,000

For a grant to the city of Cambridge to
acquire property for and to predesign, design,
construct, furnish, and equip a new public
library and headquarters for the East Central
Regional Library system, to be located in
the city of Cambridge. This appropriation
is not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 5. Grand Rapids - Myles Reif Center

500,000

From the general fund for a grant to
Independent School District No. 318, Grand
Rapids, to cover cost overruns for the Myles
Reif Center for the Performing Arts project
in Grand Rapids. This appropriation is added
to and is for the same purposes as the project
in Laws 2014, chapter 294, article 1, section
21, subdivision 8. This appropriation does
not require a nonstate contribution.

Subd. 6. Olmsted County - Dyslexia Institute of Minnesota

1,500,000

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.

Subd. 7. Red Lake - Independent School District No. 38 Facility Projects

14,070,000

(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.

(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.

Subd. 8. Warroad - Northwest Angle School Expansion

700,000

For a grant to the Warroad School District to
construct, furnish, and equip an expansion of
the Northwest Angle School. No nonstate
match is required.

Subd. 9. White Bear Lake - Independent School District No. 624 - Community Achievement Center

1,000,000

(a) For a grant to Independent School
District No. 624, White Bear Lake Area
Schools, to acquire land or real property for
a comprehensive service center to deliver
integrated services, including medical and
dental services for young children, county
human services, family support services, and
early childhood education to the northeast
metropolitan area.

(b) Any unspent portion of this appropriation
after completion of the acquisition in
paragraph (a) may be used for predesign and
design.

(c) This appropriation does not require a
nonstate match.

Sec. 5. MINNESOTA STATE ACADEMIES

Subdivision 1. Total Appropriation

$

2,210,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2. Asset Preservation

2,000,000

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.

Subd. 3. Minnesota State Academies Track

160,000

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.

Subd. 4. Minnesota State Academies Security Corridor

50,000

For predesign for a safety corridor on the
Minnesota State Academy for the Deaf
campus.

Sec. 6. PERPICH CENTER FOR ARTS EDUCATION

$

2,300,000

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.

Sec. 7. NATURAL RESOURCES

Subdivision 1. Total Appropriation

$

125,635,000

To the commissioner of natural resources
for the purposes specified in this section.
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.

Subd. 2. Natural Resources Asset Preservation

33,000,000

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.

Subd. 3. Buildings and Facilities Development

2,000,000

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.

Subd. 4. Flood Hazard Mitigation

20,000,000

(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.

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

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

(d) This appropriation includes money for
the following county and municipal projects:
Afton, Austin, Bloomington, Browns
Valley, Delano, Golden Valley, Halstad,
Hawley, Hendrum, Inver Grove Heights,
Maynard, Montevideo, Nielsville, Ortonville,
Owatonna, Perley, Rushford, and St. Vincent.

(e) This appropriation includes money for
projects in the following watersheds: Bois de
Sioux Watershed District, Buffalo Red River
Watershed District, Cedar River Watershed
District, Lower Minnesota River Watershed
District, Middle Snake Tamarac Rivers
Watershed District, Upper Minnesota River
Watershed District, Prior Lake-Spring Lake
Watershed District, Red Lake Watershed
District, Roseau River Watershed District,
Sand Hill River Watershed District, Shell
Rock River Watershed District, Two Rivers
Watershed District, and Wild Rice River
Watershed District.

(f) 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.

(g) 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.

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

(i) Wetlands established by flood control
projects funded in this subdivision that
are not needed for replacement credit as
part of a flood damage project funded in
this subdivision, are eligible for wetland
replacement credit under Minnesota Statutes,
sections 103G.222 to 103G.2243.

Subd. 5. Dam Renovation, Repair, Removal

10,000,000

To renovate or remove publicly owned dams.
The commissioner shall determine project
priorities as appropriate under Minnesota
Statutes, sections 103G.511 and 103G.515.
This appropriation does not require a nonstate
match for the Lanesboro Dam project.

Subd. 6. RIM Critical Habitat

1,500,000

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

Subd. 7. Fish Hatchery Development

1,000,000

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.

Subd. 8. Mille Lacs Lake - Fisheries Management Station

3,500,000

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

Subd. 9. Reforestation and Stand Improvement

2,300,000

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.

Subd. 10. State Park Campground Renovations

1,000,000

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.

Subd. 11. Park, State Recreation Area, and Trail Development

19,740,000

(a) For acquisition, development, and
renovation of state trails under Minnesota
Statutes, section 85.015. Of this amount,
$2,000,000 is for the Gitchi-Gami Trail at
Tofte; $2,590,000 is for the Glacial Lakes
Trail; $1,300,000 is for the Goodhue Pioneer
Trail; $3,300,000 is for the Heartland Trail
from Detroit Lakes to Frazee; and $650,000
is for the Mill Town Trail.

(b) $1,900,000 is for acquisition and
development in the Cuyuna Country State
Recreation Area, including the Cuyuna
Mountain Bike System.

(c) $8,000,000 is for continued development
of recreational opportunities, including
construction of a visitor center and
rehabilitation of the elevator shaft, at the
Lake Vermilion-Soudan Underground Mine
State Park.

(d) The commissioner may allocate money
not needed to complete a project listed in
this section to another project listed in this
section that may need additional money
to be completed. For any project listed
in this subdivision that the commissioner
determines is not ready to proceed, the
commissioner may reallocate that project's
money to another state trail project
described in this section or other state trail
infrastructure. The commissioner of natural
resources must notify the chairs of the house
of representatives and senate committees
with jurisdiction over environment and
natural resources and legislators from the
affected legislative districts of any changes
made under this paragraph.

Subd. 12. Itasca State Park Renovations

6,900,000

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 of the
Mississippi River.

Subd. 13. West Leaf Lake Dam

50,000

For renovation of the West Leaf Lake Dam
under Minnesota Statutes, sections 103G.511
to 103G.515. This appropriation does not
require a nonstate match.

Subd. 14. Austin - Waterways Restoration

600,000

For a grant to the city of Austin to design,
construct, and equip improvements at the
site of the old 4th Avenue Mill and Dam,
including the construction of bituminous
trails, completion of landscaping work,
and renovation of the existing mill; for
stream bank stabilization throughout the
city, including the removal of downed
trees and debris, replacement of riprap,
and establishment of native vegetation.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 15. Champlin - Mill Pond Restoration

3,300,000

For a grant to the city of Champlin to
dredge and remove sediment and for other
capital improvements of the Champlin Mill
Pond necessary to improve water quality,
restore fish habitat, and provide other public
benefits. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 16. Dakota County - Byllesby Dam

6,000,000

For a grant to Dakota County to design
and construct capital improvements to the
hydro-electric generating facility, including
replacement of obsolete turbines, at the
Byllesby Dam, located on the Cannon
River. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 17. Dakota County - Minnesota River Regional Trail

2,500,000

For a grant to Dakota County under
Minnesota Statutes, section 85.019,
subdivision 4b, to design and construct
a 3.2-mile multiuse segment, including
upgrades to existing facilities and a new
trailhead at Lone Oak Road, of the Minnesota
River Regional Trail between Cedar Avenue
and Lone Oak Road in the city of Eagan.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 18. Golden Valley - Storm Water Infrastructure

8,400,000

For a grant to the city of Golden Valley for
storm water infrastructure within the DeCola
Ponds and Medicine Lake Road watershed
in the cities of Golden Valley, New Hope,
and Crystal, including creation of floodwater
storage, subwatershed diversion, and runoff
rate control projects. This appropriation
is not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 19. Itasca County - Popple River Recreation Bridge

385,000

For a grant to Itasca County to design and
construct a multiuse recreation bridge over
the Popple River and a paved trail connection
to Village Road in the city of Squaw Lake.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 20. Lake County - Prospectors ATV Trail System

1,000,000

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 nonstate
sources.

Subd. 21. St. Louis and Lake Counties Regional Rail Authority - Mesabi Trail

1,697,000

For a grant to the St. Louis and Lake
Counties Regional Railroad Authority to
continue construction of the Mesabi Trail,
starting near Whalston Road and going
toward the city of Tower. This appropriation
does not require a nonstate contribution.

Subd. 22. Two Harbors Small Craft Harbor Facility

763,000

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.

Subd. 23. Unspent Appropriations

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.

Sec. 8. POLLUTION CONTROL AGENCY

Subdivision 1. Total Appropriation

$

28,655,000

To the Pollution Control Agency for the
purposes specified in this section.

Subd. 2. Capital Assistance Program

11,750,000

(a) This appropriation is for the solid waste
capital assistance grant program under
Minnesota Statutes, section 115A.54.

(b) Of this appropriation, $9,250,000 is for a
grant to Polk County to complete a regional
integrated solid waste management system.
An additional renewable energy component
shall not be mandated as a requirement of
this project to qualify for funding under this
section.

(c) Of this appropriation, $2,500,000 is for
a grant to McLeod County to complete an
integrated solid waste system.

Subd. 3. Variance Assistance Reimbursement

300,000

From the general fund for deposit in the
variance assistance account under Minnesota
Statutes, section 115.441, to reimburse
municipalities for the cost of applying
for a variance from certain permitting
requirements.

Subd. 4. St. Louis River Area of Concern

12,705,000

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.

Subd. 5. Redwood-Cottonwood Rivers Joint Powers - Lake Redwood Reclamation and Enhancement Project

3,900,000

For a grant to the Redwood-Cottonwood
Rivers control area, a joint powers entity,
to predesign, design, construct, and equip
the reservoir reclamation and enhancement
of the 66-acre Lake Redwood Reservoir.
This appropriation is available after the
commissioner of management and budget
determines that $870,000 is committed from
nonstate sources.

Sec. 9. BOARD OF WATER AND SOIL RESOURCES

Subdivision 1. Total Appropriation

$

2,500,000

To the Board of Water and Soil Resources
for the purposes specified in this section.

Subd. 2. Reinvest in Minnesota (RIM) Reserve Program

1,500,000

(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.

(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.

(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.

Subd. 3. Local Government Roads Wetland Replacement Program

1,000,000

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.

Sec. 10. AGRICULTURE

Subdivision 1. Total Appropriations

$

2,824,000

To the commissioner of agriculture for the
purposes specified in this section.

Subd. 2. Agriculture Lab

2,218,000

From the general fund for equipment and
instruments for the agriculture laboratory.
This appropriation is available until June 30,
2022.

Subd. 3. AURI

606,000

From the general fund for a grant to
Agricultural Utilization Research Institute
(AURI) for construction of a development
kitchen, sensory lab, and safety and security
upgrades at AURI's Crookston facility
and for communications and information
technology upgrades at the Crookston,
Marshall, and Waseca facilities.

Sec. 11. RURAL FINANCE AUTHORITY

$

35,000,000

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.

Sec. 12. MINNESOTA ZOOLOGICAL GARDEN

Subdivision 1. Total Appropriation

$

21,780,000

To the Minnesota Zoological Garden Board
for the purposes specified in this section.

Subd. 2. Asset Preservation

4,000,000

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.

Subd. 3. Heart of the Zoo II

17,780,000

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.
This appropriation is in addition to the
appropriation in Laws 2014, chapter 294,
article 1, section 11, subdivision 3.

Sec. 13. ADMINISTRATION

Subdivision 1. Total Appropriation

$

40,203,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2. Capitol Complex - Physical Security Upgrades

18,500,000

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.

Subd. 3. Capitol Complex - Physical Security Upgrades

3,400,000

From the general fund in fiscal year 2017,
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
Andersen and Freeman Buildings.

Subd. 4. Centennial Parking Ramp

10,878,000

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

(b) Any unexpended amount of this
appropriation after completing the project
in paragraph (a) may be used to design and
construct a storm water retention basin,
adjacent to the Centennial parking ramp,
if the commissioner of administration
determines that the basin is feasible.

Subd. 5. Capital Asset Preservation and Replacement Account

2,500,000

To be spent in accordance with Minnesota
Statutes, section 16A.632.

Subd. 6. Agency Relocation

1,500,000

From the general fund in fiscal year 2017 to
relocate boards, councils, state agencies, and
other state entities as needed for the efficient
and effective operation of state government.
This appropriation is available until June 30,
2022.

Subd. 7. Strategic Plan for Enterprise Facilities

1,475,000

From the general fund to create a strategic
facilities master plan for facilities used by
state agencies.

Subd. 8. Granite Falls - Pioneer Public Television

1,950,000

From the general fund to provide an
equipment grant to Pioneer Public Television
as part of the station's construction of a
new facility in Granite Falls, Minnesota.
The money may be used to purchase and
install equipment necessary to the station's
operation. This appropriation does not
require a nonstate contribution.

Sec. 14. MN.IT

$

$1,432,000

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

Sec. 15. MINNESOTA AMATEUR SPORTS COMMISSION

Subdivision 1. Total Appropriation

$

5,932,000

To the Minnesota Amateur Sports
Commission for the purposes specified in
this section.

Subd. 2. Asset Preservation

850,000

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.

Subd. 3. National Sports Center Expansion

5,082,000

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.

Sec. 16. MILITARY AFFAIRS

Subdivision 1. Total Appropriation

$

10,500,000

To the adjutant general for the purposes
specified in this section.

Subd. 2. Asset Preservation

2,500,000

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. Of this appropriation, $1,620,000
is for asset preservation at the Rochester
Readiness Center and $880,000 is for asset
preservation at the Willmar Readiness Center.

Subd. 3. St. Cloud Armory

3,500,000

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.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 4. West St. Paul Armory

4,500,000

To predesign, design, construct, furnish,
and equip a new National Guard Readiness
Center in a metropolitan county as defined
in Minnesota Statutes, section 473.121,
subdivision 4. This appropriation is intended
to support construction of a joint National
Guard Readiness Center and city of West
St. Paul municipal building located in the
city of West St. Paul, provided that the city
identifies suitable land to meet federal rules
for armory construction and agrees by the
end of 2016 to commit sufficient nonstate
funds to complete the project.

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.

Subd. 5. Unspent Appropriations

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.

Sec. 17. PUBLIC SAFETY

Subdivision 1. Total Appropriation

$

42,988,000

To the commissioner of public safety for the
purposes specified in this section.

Subd. 2. Arden Hills - State Emergency Operations Center

33,302,000

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.

Subd. 3. Camp Ripley - Railroad and Pipeline Incident Training Facility

3,521,000

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.

Subd. 4. Glenwood - Police and Fire Departments

300,000

For a grant to the city of Glenwood to
design, renovate, construct, furnish, and
equip a facility for the municipal police
and fire departments. This appropriation
is not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 5. Hallock - Fire Hall

290,000

For a grant to the city of Hallock to construct,
furnish, and equip a fire hall facility.
Notwithstanding Minnesota Statutes, section
16A.86, subdivision 4, this appropriation
is available after the commissioner of
management and budget determines that at
least $70,000 is committed from nonstate
sources.

Subd. 6. Mahnomen - Public Safety Facility

175,000

For a grant to the city of Mahnomen for
predesign of a public safety facility in the
city of Mahnomen to serve the counties of
Mahnomen, Clearwater, and Becker. This
appropriation is not available until at least
an equal amount is committed from nonstate
sources.

Subd. 7. Minneapolis Emergency Operations Training Facility (EOTF) Enhancement

2,500,000

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.

Subd. 8. Roseau - Fire Station Expansion

700,000

For a grant to the city of Roseau to design,
construct, furnish, and equip an addition to
the Roseau Fire Station. This appropriation
is not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 9. Windom - Regional Emergency Services Facility

2,200,000

For a grant to the city of Windom to
predesign, design, construct, furnish, and
equip a regional emergency services (fire
and ambulance) facility. Notwithstanding
Minnesota Statutes, section 16A.86,
subdivision 4, this appropriation is available
after the commissioner of management and
budget determines that at least $1,000,000
is committed to the project from nonstate
sources.

Sec. 18. TRANSPORTATION

Subdivision 1. Total Appropriation

$

378,090,000

To the commissioner of transportation for the
purposes specified in this section.

Subd. 2. Local Road Improvement Fund Grants

70,000,000

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

Subd. 3. Local Bridge Replacement and Rehabilitation

80,000,000

This appropriation is 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.

Subd. 4. Safe Routes to School

3,000,000

For grants under Minnesota Statutes, section
174.40.

Subd. 5. Golden Valley - Douglas Drive and Highway 55

3,000,000

For a grant to the city of Golden Valley
to reconstruct approximately one and
three-quarters miles of Douglas Drive north
of Highway 55, including on-street bicycle
lanes and off-street trails and sidewalks, and
to design, engineer, and construct public
safety improvements at the intersection of
Douglas Drive and Highway 55, including
a box culvert underpass across Highway
55, a roundabout and extended frontage
road south of Highway 55, retaining wall
construction, underground utility relocation,
sidewalk and trail connections to existing
facilities, Americans with Disabilities
Act-compliant facilities, and landscaping.
This appropriation does not require a
nonstate contribution.

Subd. 6. St. Joseph - Pedestrian Bridge

1,404,000

For a grant to the city of St. Joseph to
construct a pedestrian bridge over County
Road 75 in Stearns County.

Subd. 7. Port Development Assistance

14,500,000

For grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly
owned. Wabasha shall be a priority project
for a grant under this appropriation.

Subd. 8. Rail Grade Separation on Crude Oil Rail Corridors

65,478,000

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

(1) $39,729,000 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;

(2) $13,762,000 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

(3) $11,987,000 is for a grant to Anoka
County for environmental analysis, design,
engineering, removal of an existing structure,
and construction of a rail grade crossing
separation at Anoka County State-Aid
Highway 78, known as Hanson Boulevard,
in Coon Rapids.

(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.

Subd. 9. Railroad Warning Devices

5,000,000

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

Subd. 10. Rail Service Improvement

2,000,000

For the rail service improvement program
to be spent for the purposes set forth
in Minnesota Statutes, section 222.50,
subdivision 7.

Subd. 11. Goodview and Minnesota City - Rail Quiet Zone

301,000

For a grant to the city of Goodview for
construction of a railroad crossing quiet zone
that consists of construction and installation
of concrete median barriers and associated
road improvements at five Canadian Pacific
railroad crossings in the cities of Goodview
and Minnesota City. This appropriation does
not require a local match.

Subd. 12. St. Louis Park - Quiet Zone

105,000

For a grant to the city of St. Louis Park to
install safety improvements that reduce or
eliminate the need for rail horns and whistles
in St. Louis Park. This appropriation is
not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 13. Blaine - 105th Avenue Reconstruction

3,246,000

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

Subd. 14. Bloomington - Interstate Highway 494 and Highway 28

8,000,000

For preliminary engineering, engineering,
design, environmental analysis,
environmental work, right-of-way
acquisition, and construction of interchange
access to westbound marked Interstate
Highway 494 from Hennepin County
State-Aid Highway 28, known as East
Bush Lake Road in Bloomington, including
modifications to adjacent ramps, roadways,
and intersections. This appropriation is
not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 15. Chaska - Trunk Highway 212 Interchange

28,000,000

From the bond proceeds account in the trunk
highway fund for right-of-way acquisition
and construction of an interchange at marked
Trunk Highway 212 and Carver County
Road 140 in the city of Chaska, to support
the development of approximately 400
acres of property in the city of Chaska's
comprehensive plan. Notwithstanding
Minnesota Statutes, section 16A.28, this
appropriation is available for five years after
the effective date of this act.

Subd. 16. Duluth Airport Authority

5,900,000

From the state airports fund in fiscal year
2017 to provide the federal match to design
and construct runway infrastructure at
the Duluth International and Sky Harbor
Airports 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 for costs
incurred after March 1, 2016, and is available
until and must be encumbered by June 30,
2017. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 17. Grand Rapids Pedestrian Bridge

750,000

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.

Subd. 18. Hennepin County - U.S. Highway 12

15,000,000

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

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

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

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

Subd. 19. Hennepin County - Interstate Highway 35W and Lake Street Access Project

25,000,000

From the bond proceeds account in the
state transportation fund for a grant to
Hennepin County for design, right-of-way
acquisition, engineering, and construction
of public improvements related to the
Interstate Highway 35W and Lake Street
access project and related improvements
within the Interstate Highway 35W corridor.
This appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete the project has been committed to
the project.

Subd. 20. Hugo - Short Line Railway

1,100,000

For a grant to Minnesota Commercial
Railway for construction of repairs and
other capital improvements to approximately
6.5 miles of railroad track described as
that portion of the Minnesota Commercial
Railway main running lead, between M &
D Junction in White Bear Lake and the end
of the track in Hugo. This appropriation
must be used for the purposes set forth in the
Minnesota Constitution, article XI, section
5, clause (i), to improve and rehabilitate
railroad rights-of-way and other rail facilities,
whether public or private. This appropriation
does not require a nonstate match.

Subd. 21. International Falls-Koochiching County Airport Commission

3,000,000

(a) From the state airports fund for a grant to
the International Falls-Koochiching County
Airport Commission for the following
improvements to the Falls International
Airport:

(1) demolition of the existing terminal
building;

(2) rehabilitation;

(3) site preparation, including utilities and
civil work;

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

(5) associated appurtenances of a capital
nature.

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

(c) This appropriation does not require a
nonstate contribution or match.

Subd. 22. Minnesota Valley Regional Rail Authority

3,000,000

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

Subd. 23. Ramsey - Rail Grade Separation at County Road 56

1,500,000

For a grant to the city of Ramsey for predesign
and design of a highway-rail grade separation
at the intersection of Anoka County Road
56, also known as Ramsey Boulevard, with
the Burlington Northern Santa Fe mainline.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 24. Ramsey County - I-694 Rice Street Interchange

15,421,000

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.
This appropriation is available after the
commissioner of management and budget
determines that $6,600,000 is committed
from nonstate sources.

Subd. 25. Rochester International Airport

4,985,000

From the general fund 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, 2017. This
appropriation is not available until the
commissioner of management and budget
determines that an equal amount is committed
from nonstate sources.

Subd. 26. Rosemount - County Road 42 and Marked Trunk Highway 52 Interchange

2,000,000

From the bond proceeds account in the
state transportation fund for the city of
Rosemount local share of the project that
reconstructs the interchange of County Road
42 at marked Trunk Highway 52 in Dakota
County. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 27. St. Paul - Rail Grade Separation at Westminster Junction and Division Street

1,000,000

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 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.

Subd. 28. Virginia - Highway 53 Relocation

3,400,000

From the bond proceeds account in the state
transportation fund for grants to the city of
Virginia and the 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 Highway
53. This appropriation does not require a
nonstate contribution.

Subd. 29. West St. Paul - Robert Street Reconstruction

12,000,000

From the trunk highway fund for a grant
to the city of West St. Paul to complete
the reconstruction of South Robert
Street, marked as Trunk Highway 952.
This appropriation is available after the
commissioner of management and budget
determines that $7,363,000 is committed
from nonstate sources.

Sec. 19. METROPOLITAN COUNCIL

Subdivision 1. Total Appropriation

$

42,750,000

To the Metropolitan Council for the purposes
specified in this section.

Subd. 2. Metropolitan Regional Parks and Trails Capital Improvements

10,000,000

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.

Subd. 3. Metropolitan Cities Inflow and Infiltration Grants

5,000,000

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.

Subd. 4. Bloomington - Mall of America Transit Station

8,750,000

For design and construction of improvements
to the Mall of America Station on the
Hiawatha Corridor light rail transit line. The
Metropolitan Council must consult with the
city of Bloomington throughout the design
and construction process.

Subd. 5. Minneapolis - Sculpture Garden

500,000

From the general fund for a grant to the
Minneapolis Parks and Recreation Board
for noncapital expenses relating to the
renovation of the Minneapolis Sculpture
Garden. This appropriation is available
until June 30, 2019. This appropriation is in
addition to the appropriation in Laws 2014,
chapter 194, article 1, section 17, subdivision
8. This appropriation does not require a
nonstate match.

Subd. 6. St. Paul - Como Zoo

14,500,000

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.

Subd. 7. Washington County - Gateway Corridor Transitway

3,000,000

For a grant to Washington County for
environmental analysis, design, and
engineering for the Gateway Corridor
Transitway, also known as the Metro Gold
Line. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 8. Washington County - Red Rock Corridor Transitway

1,000,000

For a grant to the Washington County
Regional Railroad Authority for engineering
and environmental analysis for the Red Rock
Corridor transitway. This appropriation
is not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Sec. 20. HEALTH

$

2,335,000

From the general fund in fiscal year 2017 to
the commissioner of health for equipment
and instruments for the public health
laboratory. Notwithstanding Minnesota
Statutes, section 16A.642, this appropriation
is available until June 30, 2022.

Sec. 21. HUMAN SERVICES

Subdivision 1. Total Appropriation

$

135,135,000

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

Subd. 2. Asset Preservation

5,000,000

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.

Subd. 3. Minnesota Security Hospital - St. Peter

70,255,000

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.

Subd. 4. Minnesota Sex Offender Program – St. Peter

14,500,000

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.

Subd. 5. Anoka Metro Regional Treatment Center Safety and Security Renovations

2,250,000

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.

Subd. 6. Early Childhood Learning Facilities

5,000,000

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

Subd. 7. Hennepin County - Perspectives Family Center

600,000

From the general fund to the commissioner
of human services in fiscal year 2017 for a
grant to Hennepin County to predesign and
design the expansion and renovation of the
existing Perspectives Family Center facility
in St. Louis Park, subject to Minnesota
Statutes, section 16A.695. 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.

Subd. 8. Minneapolis - The Family Partnership

1,000,000

From the general fund 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.

Subd. 9. Red Lake Indian Reservation - Social Service Building Construction and Whitefeather/Moe Education Technology Center Remodel

17,000,000

(a) From the general fund for a grant to the
Red Lake Indian Reservation to:

(1) construct a building to house the social
services of Oshkiimaajitahdah in Redby; and

(2) remodel the Whitefeather/Moe Education
Technology Center to return space to
classrooms and laboratories for educational
purposes.

(b) This appropriation is available until the
project is completed or abandoned, subject to
Minnesota Statutes, section 16A.642.

(c) This appropriation is available after the
commissioner of management and budget
determines that $200,000 is committed or has
been expended by nonstate sources. Money
spent for site preparation shall count toward
the $200,000 nonstate contribution.

Subd. 10. St. Paul - Dorothy Day Opportunity Center

12,000,000

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. This appropriation is in addition to
the appropriation in Laws 2014, chapter 294,
article 1, section 18, subdivision 9.

Subd. 11. Willmar - Child and Adolescent Behavioral Health Services (CABHS)

7,530,000

For a grant to the city of Willmar to
purchase land in or near the city of Willmar
for, and to predesign, design, construct,
furnish, and equip, a 16-bed psychiatric
hospital facility of approximately 17,500
to 18,000 square feet that will house the
Child and Adolescent Behavioral Health
Services (CABHS) program. The facility
shall include space for single bedrooms,
bathing and toilets, dining, living, group and
treatment rooms, education space, visitation,
clinic/professional staff, operations staff,
patient storage, operations storage, food
preparation, HVAC/telecommunications/data
equipment, a small area for indoor recreation,
and a secure outdoor activity space. The
property for the facility will provide for staff
and visitor parking, outdoor activities, and
appropriate side, front, and rear setbacks.
This appropriation does not require a
nonstate match.

Sec. 22. VETERANS AFFAIRS

Subdivision 1. Total Appropriation

$

22,851,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2. Asset Preservation

5,000,000

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.

Subd. 3. Minneapolis Veterans Home Truss Bridge Project

7,851,000

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.

Subd. 4. Bemidji and Montevideo Veterans Homes

10,000,000

(a) $5,000,000 of this appropriation is to
design, construct, furnish, and equip a
veterans home in Montevideo to provide a
continuum of care, including skilled nursing
care, to veterans.

(b) $5,000,000 of this appropriation is to
design, construct, furnish, and equip a new
veterans home in Bemidji to provide a
continuum of care, including skilled nursing
care, to veterans.

(c) The commissioner of administration
may accept contributions of land or money
from private individuals, businesses, local
governments, veterans service organizations,
and other nonstate sources for the purpose of
providing matching funding when soliciting
federal funding for the development of the
homes.

Sec. 23. CORRECTIONS

Subdivision 1. Total Appropriation

$

52,253,000

To the commissioner of administration for
the purposes specified in this section.

Subd. 2. Asset Preservation

20,000,000

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.

Subd. 3. Lino Lakes - Minnesota Correctional Facility

5,000,000

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.

Subd. 4. Moose Lake - Minnesota Correctional Facility

1,900,000

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.

Subd. 5. St. Cloud - Minnesota Correctional Facility

19,000,000

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

Subd. 6. Togo - Minnesota Correctional Facility

2,000,000

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.

Subd. 7. Willow River - Minnesota Correctional Facility

1,500,000

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.

Subd. 8. Northeast Regional Corrections Center

2,853,000

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.

Subd. 9. Unspent Appropriations

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.

Sec. 24. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1. Total Appropriation

$

158,304,000

To the commissioner of employment and
economic development for the purposes
specified in this section.

Subd. 2. Asset Preservation

1,342,000

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.

Subd. 3. Transportation Economic Development

20,000,000

For grants under Minnesota Statutes, section
116J.436.

Subd. 4. Greater Minnesota Business Development Public Infrastructure Grants

15,000,000

For grants under Minnesota Statutes, section
116J.431.

Subd. 5. Innovative Business Development Public Infrastructure Grants

5,000,000

For grants under Minnesota Statutes, section
116J.435.

Subd. 6. Redevelopment Grant Program

4,328,000

(a) From the general fund for purposes of
the redevelopment account under Minnesota
Statutes, sections 116J.571 to 116J.575.

(b) Of this appropriation, $3,500,000 is for a
grant to the city of Albert Lea for predesign,
design, site work, and construction, including
the relocation of Front Street, for Phase I of
the Blazing Star Landing project to redevelop
the former Farmland Foods property along
Albert Lea Lake. This appropriation is
not available until the commissioner of
management and budget determines that an
equal amount is committed from nonstate
sources.

Subd. 7. Bemidji - Regional Dental Facility

6,000,000

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.

Subd. 8. Duluth - Lake Superior Zoo

1,909,000

For a grant to the city of Duluth to design,
construct, furnish, and equip an outdoor
amphitheater at the Lake Superior Zoo.
This appropriation is not available until the
commissioner determines that at least an
equal amount is committed to the project
from nonstate sources.

Subd. 9. Hastings - Riverfront Renaissance

1,500,000

For a grant to the city of Hastings for
the design, engineering, constructing,
and equipping of improvements to
the city's sewer, electrical, utility, and
street infrastructure; for renovations and
improvements to Oliver's Grove Park; and
screening of an electrical substation. These
projects are part of the rehabilitation of
Hastings' historic downtown and Levee
Park along the Mississippi River. This
appropriation is not available until the
commissioner of management and budget
determines that an equal amount is committed
from nonstate sources. Expenditures made
for Phases 1 and 2 of this project shall count
towards the nonstate match.

Subd. 10. Hennepin County - Cedar Cultural Center

3,000,000

From the general fund for a grant to the
Cedar Cultural Center to predesign, design,
construct, furnish, and equip the renovation
of the historic Cedar Cultural Center.

Subd. 11. Hennepin County - Hennepin Center for the Arts

6,000,000

For a grant to Hennepin County for
improvements and betterments of a capital
nature to renovate the historic Hennepin
Center for the Arts, subject to Minnesota
Statutes, section 16A.695. Notwithstanding
Minnesota Statutes, section 16A.86,
subdivision 4, this appropriation is available
after the commissioner of management and
budget determines that $3,000,000 has been
committed to complete the project from
nonstate sources.

Subd. 12. Hermantown - Arrowhead Regional Health and Wellness Center

8,000,000

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 a 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.

Subd. 13. Jackson - Memorial Park Redevelopment Phase I

282,000

For a grant to the city of Jackson to complete
Phase I of the redevelopment of Memorial
Park, including trails, landscaping, a
canoe launch, and other amenities. 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. This appropriation does not require
a nonstate match.

Subd. 14. Litchfield - Power Generation Improvements

5,000,000

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.

Subd. 15. Madelia - Public Infrastructure

98,000

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

Subd. 16. Medford - Municipal Complex

2,940,000

For a grant to the city of Medford to
predesign, design, construct, furnish, and
equip a municipal complex that includes an
emergency operations center/storm shelter or
safe area for use during a public emergency,
public meeting and community room, fire
department offices and facilities, and city
hall offices. Money spent by the city for this
project before the effective date of this section
is the nonstate contribution to the project and
no further nonstate contribution is required.

Subd. 17. Minneapolis - Northern Metals

5,000,000

From the general fund for a grant to Northern
Metals, Inc., for costs of relocation due to
the closure of St. Anthony Falls Lock on the
Mississippi River. This appropriation does
not require a nonstate match.

Subd. 18. Minneapolis - Norway House

5,000,000

From the general fund for a grant to
the Norway House to acquire land and
predesign, design, construct, furnish, and
equip a conference and event center at 913
East Franklin Avenue and adjacent property
in Minneapolis to celebrate the culture of
Norway and American Norwegians. This
appropriation is not available until at least
an equal amount is committed from nonstate
sources. Land purchased for this expansion
project shall count toward the nonstate match.

Subd. 19. Minneapolis - Pioneers and Soldiers Cemetery Restoration

1,029,000

For a grant to the city of Minneapolis to
restore the historic steel and limestone pillar
fence along Cedar Avenue and Lake Street,
install a new steel fence and pillars along 21st
Avenue South, and install a waterproofing
system for preservation of the fence and
pillars, at the Pioneer and Soldiers Cemetery.
This appropriation is available after the
commissioner of management and budget
determines that $394,000 is committed from
nonstate sources.

Subd. 20. Moose Lake - Riverside Center

600,000

For a grant to the city of Moose Lake to
design, construct, and equip an addition of
5,000 square feet to include public restrooms,
a concessions area, changing rooms, meeting
space, accessibility improvements for
Americans with Disabilities Act (ADA)
compliance, and other improvements of
a capital nature to the Riverside Center.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 21. Parkers Prairie - Community Pool

250,000

For a grant to the city of Parkers Prairie
to renovate the city swimming pool,
including accessibility improvements.
This appropriation is not available until
the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 22. Plymouth - Ice Center Renovation

2,203,000

For a grant to the city of Plymouth to
predesign, design, construct, furnish, and
equip the renovation of the Plymouth Ice
Center, and to complete related work for the
state-mandated transition of R-22 refrigerant
to an ammonia-based system. The project
also includes resizing an existing ice sheet for
energy efficiencies, roof repairs, and parking
lot enhancements. This appropriation is
not available until the commissioner of
management and budget determines that at
least $2,119,000 is committed to the project
from nonstate sources.

Subd. 23. Polk County - North Country Food Bank in Crookston

3,000,000

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.

Subd. 24. Red Wing - River Town Renaissance

4,480,000

For a grant to the city of Red Wing to
complete removal and replacement of
approximately 250 lineal 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.

Subd. 25. Roseau County - Transportation Facility

3,900,000

For a grant to Roseau County to construct,
furnish, and equip a multipurpose
transportation facility adjacent to an existing
transportation facility in Roseau. This
appropriation is not available until at least
an equal amount is committed from nonstate
sources.

Subd. 26. St. Cloud - Friedrich Regional Park

1,505,000

For a grant to the city of St. Cloud to
acquire land for and to predesign and
design site improvements including trails,
picnic and parking areas, restrooms, and
other public facilities and amenities for the
development of Friedrich Regional Park.
This appropriation is available after the
commissioner of management and budget
determines that $300,000 is committed from
nonstate sources.

Subd. 27. St. Louis County - Arrowhead Economic Development Center and Mental Health Facility

12,975,000

For a grant to St. Louis County to design,
construct, furnish, and equip a new building
at 701 4th Street N in Virginia, to house a
jobs and economic development center and a
mental health facility. St. Louis County may
enter into one or more lease or management
agreements for the facility, subject to
Minnesota Statutes, section 16A.695. This
appropriation is not available until the
commissioner has determined that an amount
sufficient to complete the project has been
committed from nonstate sources.

Subd. 28. St. Paul - Bruce Vento Nature Sanctuary

3,000,000

For a grant to the city of St. Paul to predesign,
design, furnish, and equip a center in the
Bruce Vento Nature Sanctuary in St. Paul
that will be used for uses and 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.

Subd. 29. St. Paul - East Side Freedom Library

500,000

From the general fund for a grant to the city
of St. Paul to complete the design and to
renovate, restore, construct, furnish, and
equip capital improvements to the Carnegie
Library formerly known as the Arlington
Hills Public Library. This appropriation does
not require a nonstate match.

Subd. 30. St. Paul - Science Museum of Minnesota Building Preservation

13,000,000

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.

Subd. 31. St. Paul Port Authority - Minnesota Museum of American Art

6,000,000

From the general fund for a grant to the St.
Paul Port Authority to design, construct,
furnish, and equip improvements for the
Minnesota Museum of American Art for
the historic Pioneer Endicott Building
renovation. The project shall include
galleries and education facilities, art storage,
access to the St. Paul skyway, museum
loading, and other capital improvements
required for a museum and related education
facility. The appropriation shall be available
upon a determination by the commissioner
that at least $8,500,000 of nonstate funds
have been raised for the project and there
are sufficient funds to complete the overall
project.

Subd. 32. St. Paul Port Authority - Roy Wilkins Auditorium; RiverCentre Parking

1,900,000

For a grant to the St. Paul Port Authority to
complete predesign for and to design a new
Roy Wilkins Center to replace the existing
Roy Wilkins Auditorium and RiverCentre
parking ramp. This appropriation does not
require a nonstate contribution.

Subd. 33. St. Peter - Minnesota Square Park Pavilion

855,000

For a grant to the city of St. Peter to demolish
the existing pavilion and to predesign,
design, construct, furnish, and equip a new
park pavilion in Minnesota Square Park.
This appropriation is also for a grant to the
city of St. Peter to design and construct a
veterans memorial to be located at the corner
of Highway 169 and West College Avenue in
St. Peter. 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.

Subd. 34. Silver Bay - Black Beach Municipal Campground

1,708,000

For a grant to the city of Silver Bay to
predesign, design, construct, furnish, and
equip a campground adjacent to the Black
Beach recreational beach in Silver Bay,
including: camping sites; electrical, water,
and sewer infrastructure; a playground;
a pavilion; lavatory vaults; a shower
and lavatory building; and a main office
building. This appropriation may also be
used to design, construct, furnish, and equip
a walking trail from the campground to
the Black Beach recreational site. This
appropriation is not available until $548,000
is committed from nonstate sources. The
nonstate contribution may be in kind. In-kind
contributions may include the value of site
preparation.

Subd. 35. Thief River Falls - Wellness Center

7,000,000

From the general fund in fiscal year 2017
for a grant to the city of Thief River Falls
to predesign, design, construct, furnish, and
equip a wellness center. This appropriation
is available after the commissioner of
management and budget determines that
$18,000,000 is committed from nonstate
sources.

Subd. 36. Virginia - Miner's Memorial Building Renovation Phase I

4,000,000

For a grant to the city of Virginia for Phase
I of the renovation and reconstruction of the
Miner's Memorial Building in Virginia. This
appropriation is not available until at least
an equal amount is committed from nonstate
sources.

Sec. 25. PUBLIC FACILITIES AUTHORITY

Subdivision 1. Total Appropriation

$

197,831,000

To the Public Facilities Authority for the
purposes specified in this section.

Subd. 2. State Match for Federal Grants

25,000,000

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.

Subd. 3. Water Infrastructure Funding Program

80,000,000

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

(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.

(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.

(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.

Subd. 4. Point Source Implementation Grants Program

62,000,000

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.

Subd. 5. Big Lake Area Sanitary District - Sewer System and Force Main

1,200,000

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

Subd. 6. Brainerd - Airport Water and Sewer

6,000,000

For a grant to the city of Brainerd to
design, construct, and equip publicly owned
infrastructure to increase the water supply
and expand sewer and water service to the
Brainerd Lakes Regional Airport.

Subd. 7. Clear Lake and Clearwater - Wastewater Treatment Facility

1,400,000

For a grant to the Clear Lake-Clearwater
Sewer Authority to remove and replace
the existing wastewater treatment facility.
This appropriation is not available until
the commissioner of management and
budget determines that at least $200,000
is committed to the project from nonstate
sources and the authority has applied for
at least two grants to offset the cost. Any
money received by the authority from grants
will be returned to the general fund.

Subd. 8. Dennison - Sewage Treatment System Improvements

726,000

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.

Subd. 9. East Grand Forks - Wastewater Infrastructure

5,275,000

For a grant to East Grand Forks to design
and construct wastewater infrastructure
improvements interconnecting the
wastewater system of East Grand Forks to
the wastewater treatment system in Grand
Forks, North Dakota. This appropriation
may not be used for improvements outside
the state. This appropriation is in addition
to grants under Minnesota Statutes, section
446A.072. This appropriation is not available
until the commissioner of management and
budget determines that an equal amount is
committed from nonstate sources.

Subd. 10. Koochiching County - Voyageurs National Park Clean Water Project

6,240,000

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

(b) This appropriation is in addition to
the appropriation in Laws 2014, chapter
294, article 1, section 22, subdivision 7.
Notwithstanding the match requirement in
Laws 2014, chapter 294, article 1, section
22, subdivision 7, the nonstate match
required for this appropriation and the 2014
appropriation for a grant to Koochiching
County is 25 percent of the state grant
amounts. Any money remaining from this
appropriation after completion of the projects
in paragraph (a) is available for grants to
Koochiching County or St. Louis County to
be used for other projects described in the
comprehensive plan.

Subd. 11. Lilydale - Highway 13 Storm Water Conveyance

140,000

From the general fund 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.

Subd. 12. Oronoco - Wastewater Collection and Treatment Facilities

500,000

From the general fund for a grant to the
city of Oronoco to commission a study to
evaluate options for solving the wastewater
infrastructure needs for the region including
the city of Oronoco, the city of Pine Island,
or the city of Rochester. This appropriation
does not require a nonstate match.

Subd. 13. St. James - Storm Sewer Line Replacement

1,250,000

For a grant to the city of St. James to
replace a storm sewer line in St. James. This
appropriation is not available until at least
an equal amount is committed from nonstate
sources.

Subd. 14. Western Lake Superior Sanitary District - Combined Heat and Power System

8,100,000

For a grant to the Sanitary Board of the
Western Lake Superior Sanitary District
for Phase I and II of a project to design,
construct, furnish, and equip a combined heat
and power system to capture process heat
and generate electricity for use at the Western
Lake Superior Sanitary District wastewater
treatment facilities. This appropriation is not
available until the commissioner determines
that at least an equal amount is committed to
the project from state and nonstate sources.
Loans obtained from the Public Facilities
Authority shall count toward the match
requirement.

Sec. 26. MINNESOTA HOUSING FINANCE AGENCY

$

20,000,000

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.

Sec. 27. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. Total Appropriation

$

38,000,000

To the Minnesota Historical Society for the
purposes specified in this section.

Subd. 2. Historic Sites Asset Preservation

2,500,000

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.

Subd. 3. Historic Fort Snelling

34,000,000

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

(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).

(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.

Subd. 4. County and Local Preservation Grants

1,500,000

To be allocated to county and local
jurisdictions as matching money for historic
preservation projects of a capital nature,
as provided in Minnesota Statutes, section
138.0525.

Sec. 28. OFFICE OF THE LEGISLATIVE AUDITOR - ASSET PRESERVATION FUNDING REPORT

$

50,000

From the general fund to the Office of the
Legislative Auditor for the report on options
for funding asset preservation, as described
in article 2, section 19.

Sec. 29. MINNESOTA SUPREME COURT

$

6,000,000

From the general fund to the chief justice of
the Supreme Court for a competitive grant
program established by the chief justice for
the distribution of grants to government
entities for capital improvements to make
courthouses or other facilities where court
proceedings are held safe and secure. Grant
recipients must provide a 50 percent nonstate
match.

Sec. 30. BOND SALE EXPENSES

Subdivision 1. Total Appropriation

$

1,648,000

To the commissioner of management and
budget for the purposes specified in this
section.

Subd. 2. Bond Proceeds Fund

1,605,000

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

Subd. 3. Trunk Highway Fund

43,000

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.

Sec. 31.

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

Sec. 19. BOND SALE SCHEDULE.

The commissioner of management and budget shall schedule the sale of state
general obligation bonds so that, during the biennium ending June 30, 2017, no more
than $1,267,459,000 $1,250,738,000 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.

Sec. 32. BOND SALE AUTHORIZATION.

Subdivision 1.

Bond proceeds fund.

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 $1,412,061,000 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.

Subd. 2.

Transportation fund.

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 $180,400,000 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.

Subd. 3.

Trunk highway fund.

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 $43,043,000 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.

Subd. 4.

Maximum effort school loan fund.

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.

Sec. 33. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.

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

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

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

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

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

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

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

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

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

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

Sec. 34. EFFECTIVE DATE.

Except as otherwise provided, this article is effective the day following final
enactment.

ARTICLE 2

MISCELLANEOUS

Section 1.

[16A.693] CERTAIN ENTITIES INELIGIBLE FOR CONTRACTS.

Notwithstanding any law to the contrary, the following entities involved in the latent
design and construction defects necessitating the appropriation in article 1, section 24,
subdivision 30, of this act, the general contractor (PCL Construction Services), the design
firm (AECOM), and the masonry company (B&D Associates, Inc.), or their successors or
assigns, may not enter into any contract to furnish labor, skill, material, or other goods
or services related to any project that is funded in whole or in part with an appropriation
of state bond proceeds or other state appropriation. This section applies to any building,
design, or construction contract contemplated on or after the day following final enactment.

Sec. 2.

Minnesota Statutes 2015 Supplement, 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 subdivision 2, paragraph (c)
subdivisions 2a and 2b;

(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c)
subdivisions 2a and 2b;

(3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (e) (d); 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 law, including, in particular, the
financing of the land acquisition, design, engineering, and construction of facilities and
infrastructure necessary to complete the next phase of the Lewis and Clark Regional Water
System project, including completion of the pipeline to Magnolia, extension of the project
to the Lincoln-Pipestone Rural Water System connection near Adrian, and engineering,
design, and easement acquisition for the final phase of the project to Worthington. No
bonds shall be sold until the commissioner determines that a nonstate match of at least
$9,000,000 is committed to this project phase. Grant agreements entered into under this
section must provide for reimbursement to the state from any federal money provided for
the project, consistent with the Lewis and Clark Regional Water System, Inc., agreement.

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

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

(d) (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 25 years. The
appropriation bonds of each issue and series thereof shall be dated and bear interest,
and may be includable in or excludable from the gross income of the owners for federal
income tax purposes.

(e) (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.

(f) (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.

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

Subd. 2a.

Project authorization.

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.

Subd. 2b.

Additional project authorization.

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.

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.

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

(1) to the commissioner Public Facilities Authority for a grant to the Lewis and
Clark Joint Powers Board for payment of capital expenses for the purposes provided by as
specified in subdivision 2, paragraph (a), 2a; and

(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 (e) (d), each
as permitted by state and federal law, and such proceeds may be granted, loaned, or
otherwise provided for the public purposes provided by subdivision 2, paragraph (a).

(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:

(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

(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.

Subd. 8.

Appropriation for debt service and other purposes.

(a) An amount, up
to $1,351,000 needed to pay principal and interest on appropriation bonds issued under
this section subdivision 2a 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.

(b) An amount up to $855,000 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.

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. 3.

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

Subdivision 1.

Upper bluff; lease terms.

The commissioner of natural resources
with the approval of the Executive Council may lease for purposes of restoration,
preservation, historical, recreational, educational, and commercial use and development,
that portion of Fort Snelling State Park known as the upper bluff consisting of officer's
row, area J, the polo grounds, the adjacent golf course, and all buildings and improvements
located thereon, all lying within an area bounded by Minneapolis-St. Paul International
Airport, Trunk Highways numbered 5 and 55, and Bloomington Road. The lease or leases
shall be in a form approved by the attorney general and for a term of not to exceed 99
years. The lease or leases may provide for the provision of capital improvements or
other performance by the tenant or tenants in lieu of all or some of the payments of rent
that would otherwise be required.

Sec. 4.

[115.441] VARIANCE ASSISTANCE FOR MUNICIPALITIES.

Subdivision 1.

Reimbursement account.

A variance assistance account is
established as an account in the special revenue fund.

Subd. 2.

Eligible expenditures.

Money in the variance assistance account may be
used to reimburse an eligible municipality for up to 95 percent of the fee charged under
Minnesota Rules, part 7002.0253, for an application for a variance under section 116.07,
subdivision 5.

Subd. 3.

Eligible municipality.

To be eligible for a reimbursement from the
account established in this section, a municipality must demonstrate need for financial
assistance in one of the following ways:

(1) a score of 2.0 or less on the Minnesota Pollution Control Agency's multifactor
index of financial hardship;

(2) a score greater than 2.0 and up to 2.5 on the financial hardship index and a
description of unique extenuating financial circumstances that exist for the municipality
resulting in an inability to afford the variance application fee; or

(3) a municipality with a population under 1,000.

Subd. 4.

Term of a variance.

A variance granted for an entity that receives a
reimbursement under this section shall be effective until the municipality secures funding
for remediation.

Sec. 5.

Minnesota Statutes 2014, section 161.14, is amended by adding a subdivision
to read:

Subd. 82.

James Metzen Street.

Notwithstanding section 10.49, that segment
of marked Trunk Highway 952 located within Dakota County is designated as "James
Metzen Street." Notwithstanding section 161.139, the commissioner shall adopt a suitable
design to mark this highway and erect appropriate signs.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6.

[219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY
ACCOUNT AND GRANT PROGRAM.

Subdivision 1.

Purpose.

A hazardous materials rail safety program is established for
the purpose of reducing the risks associated with transporting hazardous material by rail.

Subd. 2.

Creation of account.

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.

Subd. 3.

Grants.

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.

Subd. 4.

Eligible applicants.

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.

Subd. 5.

Criteria for grant award.

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

(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);

(2) roadway traffic volumes and speeds;

(3) train volumes and speeds;

(4) adjacent land use;

(5) crash history;

(6) use of the crossing by emergency vehicles;

(7) use of the crossing by vehicles carrying hazardous materials;

(8) local financial contributions to the project; and

(9) private financial contributions to the project.

Sec. 7.

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

446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING
PROGRAM.

Subdivision 1.

Establishment of program.

The authority will establish a
wastewater water infrastructure funding program to provide supplemental assistance to
governmental units receiving funding through the clean water revolving fund program, the
drinking water revolving fund program, 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 treatment and drinking water 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 wastewater
water infrastructure fund to provide grants and loans for the purposes authorized under
title VI of the Federal Water Pollution Control Act and the federal Safe Drinking Water
Act. 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 list or
the commissioner of health's project priority list;

(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 Agency or the commissioner of health.

(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 program or the drinking water revolving fund program with
additional information as required by the authority. In accordance with section 116.182,
the Pollution Control Agency or the commissioner of health shall:

(1) calculate the essential project component percentage 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, which
must be multiplied by the total project cost to determine the eligible project cost for the
program under this section; 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 list or the commissioner
of health's project priority list. 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 submits plans and specifications to
the project is certified by the Pollution Control Agency or the commissioner of health.
Funds must be reserved in an amount based on the project cost estimate submitted to the
authority prior to the appropriation of the funds and awarded based on the lesser of that
amount or the as-bid cost when the project is certified or the as-bid cost, whichever is less.

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 $4,000,000
$5,000,000 per project or $15,000 $20,000 per existing connection, whichever is less,
unless specifically approved by law.

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

(c) For a governmental unit receiving a loan from the drinking water revolving
fund under section 446A.081, the authority may provide assistance under this section in
the form of a grant if the average annual residential drinking water system cost after
completion of the project would otherwise exceed 1.2 percent of the median household
income of the project service area. In determining whether the average annual residential
drinking water system cost would exceed 1.2 percent, the authority must consider the total
costs associated with building, operating, and maintaining the drinking water system,
including existing drinking water debt service, debt service on the eligible project cost,
and operation and maintenance costs. Debt service costs for the proposed project are
calculated based on the maximum loan term permitted for the drinking water revolving
fund loan under section 446A.081, subdivision 8, paragraph (c). The amount of the grant
is equal to 80 percent of the amount needed to reduce the average annual residential
drinking water system cost to 1.2 percent of median household income in the project
service area, to a maximum of $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.

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

Subd. 5b.

Special assessment deferral.

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.

Subd. 6.

Disbursements.

Disbursements of grants or loans 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.

Subd. 7.

Loan repayments.

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.

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 sewer service charges of a significant wastewater contributor industrial user that has a
separate service charge agreement with the recipient, or a single user that has caused the
need for the project or whose current or projected flow and load exceed usage exceeds
one-half of the current wastewater treatment plant's or drinking water system capacity.

Subd. 11.

Report on needs.

By February 1 of each even-numbered year, the
authority, in conjunction with the Pollution Control Agency and the commissioner of
health, 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 wastewater and drinking water funding assistance needs
of governmental units under this section.

Subd. 12.

System replacement fund.

Each governmental unit receiving a loan or
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 or, expansion,
or replacement of the treatment wastewater or drinking water system, or replacement of
the treatment system at the end of its useful life. Money must remain in the account for the
life of the corresponding project 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 treatment wastewater or drinking water 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. A recipient is not
required to maintain a fund balance greater than the amount of the grant received. 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. Failure to make the required deposit or pay the penalty fee as
required constitutes a default on the loan.

Subd. 14.

Consistency with land use plans.

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

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

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

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

Sec. 8.

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

446A.073 POINT SOURCE IMPLEMENTATION GRANTS.

Subdivision 1.

Program established.

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

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

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

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

(4) a total nitrogen concentration or mass limit of that requires discharging ten
milligrams per liter or less for a land-based treatment system at permitted design flow.

Subd. 2.

Grant application.

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

(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

(2) 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.

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

Subd. 4.

Grant approval.

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

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

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

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

Subd. 5.

Grant disbursement.

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

Sec. 9.

Minnesota Statutes 2014, section 446A.081, subdivision 9, is amended to read:

Subd. 9.

Other uses of fund.

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

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

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

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

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

(5) to earn interest on fund accounts;

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

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

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

(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.

(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.

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

(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.

Sec. 10.

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

Subdivision 1.

Bonding authority.

The authority may issue negotiable bonds in a
principal amount that the authority determines necessary to provide sufficient funds for
achieving its purposes, including the making of loans and purchase of securities, the
payment of interest on bonds of the authority, the establishment of reserves to secure its
bonds, the payment of fees to a third party providing credit enhancement, and the payment
of all other expenditures of the authority incident to and necessary or convenient to carry
out its corporate purposes and powers, but not including the making of grants. Bonds of
the authority may be issued as bonds or notes or in any other form authorized by law.
The principal amount of bonds issued and outstanding under this section at any time
may not exceed $1,500,000,000 $2,000,000,000, 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. 11.

Minnesota Statutes 2014, section 462A.37, is amended by adding a
subdivision to read:

Subd. 2c.

Additional authorization.

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.

Sec. 12.

Minnesota Statutes 2015 Supplement, 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 and, 2b, and 2c.

(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.

(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
$5,600,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.

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

Sec. 13.

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

Subd. 6. Fergus Falls Regional Treatment Center

3,000,000

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

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 14.

Laws 2011, First Special Session chapter 12, section 13, subdivision 8,
is amended to read:

Subd. 8. Rail Service Improvement - St. Louis Park Noise Barrier

700,000

For a grant to the city of St. Louis Park to
predesign, design, construct, and install noise
mitigation barriers associated with route
changes for freight rail. This appropriation
may be used to design and construct trail
safety improvements for the Beltline trail
bridge, the Wooddale trail underpass, and the
Louisiana trail underpass. Notwithstanding
Minnesota Statutes, section 16A.642, this
appropriation is available until January 1,
2018.

Sec. 15.

Laws 2012, chapter 293, section 7, subdivision 8, is amended to read:

Subd. 8. Lake Zumbro

3,000,000

For a grant to Olmsted County for the
removal of sedimentation in Lake Zumbro,
including final engineering, dredging,
and dredged soil disposal from the sites
identified in the Preliminary Engineering
Report for Dredging Lake Zumbro.
This project is designed to improve the
recreational economy, water quality, and
habitat, and increase water storage capacity
within the lake to achieve renewable
energy goals by optimizing long-term
hydroelectric operations. This appropriation
is not available until the commissioner
has determined that at least an equal
amount has been committed to the project
from nonstate sources. Notwithstanding
Minnesota Statutes, section 16A.642, the
bond authorization and appropriation of bond
proceeds for this project are available until
December 31, 2018.

Sec. 16.

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

Subd. 4. Phillips Community Center

1,750,000

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

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

Sec. 17.

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

Subd. 6. Inver Grove Heights - Heritage Village Park

2,000,000

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

Sec. 18.

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

Subd. 12. West St. Paul - North Urban Regional Trail Bridge River-to-River Greenway Crossing

2,000,000

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

Sec. 19. OFFICE OF LEGISLATIVE AUDITOR REPORT - FUNDING FOR
ASSET PRESERVATION.

Subdivision 1.

Report.

By November 15, 2016, the legislative auditor shall report to
the chairs and ranking minority members of the committees in the senate with jurisdiction
over finance and capital investment and in the house of representatives with jurisdiction
over ways and means and capital investment, with recommendations for sustainable,
reliable, predictable funding for preservation of capital assets owned by agencies.

Subd. 2.

Funding options and approaches.

The report shall assess the feasibility of
implementing the following options and may include evaluation of other feasible options:

(1) establishing a standing appropriation from the general fund to pay a portion of
certified asset preservation needs;

(2) establishing a standing appropriation from the bond proceeds fund, and
authorizing the sale of general obligation bonds, to pay a portion of certified asset
preservation needs;

(3) dedicating a specified portion of fees collected by agencies to use for asset
preservation; and

(4) shifting asset preservation from the capital budget to the operating budget so that
asset preservation is built into the base budget.

Evaluations should include a comparison to current law and practice.

Subd. 3.

Real property portfolio management system.

The commissioner
of administration shall provide assistance, as requested by the legislative auditor, for
preparing the report, including providing data from the ARCHIBUS real property portfolio
management system.

Subd. 4.

Demolition.

The report shall evaluate whether the metrics and process
used by each agency to recommend demolition of capital assets are comprehensive enough
to reflect what is in the best interest of the state.

Subd. 5.

Definition.

"Agencies" as used in this section means all executive branch
agencies, the Board of Regents of the University of Minnesota, and the Board of Trustees
of Minnesota State Colleges and Universities.

Sec. 20. VETERANS HOMES; MONTEVIDEO AND BEMIDJI.

The fiscal year 2018 and fiscal year 2019 general fund base appropriation for
veterans homes is increased by $10,000,000 each fiscal year. This increase is for the
operating costs of 143 skilled nursing beds added after July 1, 2016, in one or more
veteran homes, including Montevideo and Bemidji. None of this increased amount may
be used for operating costs at a veterans home in Minneapolis.

Sec. 21. APPROPRIATION; WATER SUPPLY SUSTAINABILITY STUDY.

(a) $1,780,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of natural resources.

(b) Of this amount:

(1) $1,500,000 is for a study to evaluate long-term water supply sustainability in the
north and east metro, identify options to address any challenges identified to the north
and east metro's long-term water supply sustainability, and assess the feasibility and costs
of those options. The study must consider available information concerning interactions
between the region's surface water and groundwater systems, including White Bear
Lake. The commissioner must conduct this study in consultation and coordination with
affected communities, the Metropolitan Council and other state and regional agencies,
water utilities, watershed districts, counties, industrial water permit holders, and other
entities with a demonstrated interest in the water supply challenges facing the north
and east metro. The commissioner must complete a report summarizing study findings
regarding long-term water supply sustainability challenges in the north and east metro
and the feasibility of various options for addressing those challenges. Efficient water use
and water reuse options must be included in the report. The commissioner's report must
consider sufficient detail regarding preliminary design considerations, including supply
source, treatment, distribution, operation, and financing, of all feasible options evaluated.
The report must be provided no later than January 15, 2018, to the chairs and ranking
minority members of the house of representatives and senate committees and divisions
with jurisdiction over environment and natural resources finance and policy and the clean
water fund. No detailed design may be undertaken by the commissioner without legislative
approval. A copy of the draft report will be provided to all affected local agencies for
review and comment prior to finalization and presentation by the commissioner to the
legislature. The appropriation in this clause is available until June 30, 2018; and

(2) $280,000 is for water quality monitoring, modeling, and data analysis to
establish baseline water quality conditions and to assess the water quality impacts and
other potential ecological effects of augmenting White Bear Lake with water from Vadnais
Lake on both White Bear Lake and Vadnais Lake. The appropriation in this clause
is available until June 30, 2018.

Sec. 22. REPEALER.

Minnesota Statutes 2014, section 123A.446, is repealed.

Sec. 23. EFFECTIVE DATE.

Except as otherwise provided, this act is effective the day following final enactment.