1.1 	A bill for an act
1.2 	relating to capital investment; appropriating money for flood hazard mitigation 
1.3 	grants; authorizing the sale and issuance of state bonds.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. FLOOD HAZARD MITIGATION GRANT; APPROPRIATION.
 1.6 		Subdivision 1.Appropriation. (a) $20,000,000 is appropriated from the bond proceeds 
1.7 	fund to the commissioner of natural resources for the state share of flood hazard mitigation 
1.8 	grants for publicly owned capital improvements to prevent or alleviate flood damage under 
1.9 	Minnesota Statutes, section 103F.161.
1.10 	(b) To the extent practical, levee projects shall meet the state standard of three feet above 
1.11 	the 100-year flood elevation.
1.12 	(c) Project priorities shall be determined by the commissioner as appropriate, based on 
1.13 	need and consideration of available leveraging of federal, state, and local funds.
1.14 	(d) This appropriation may be used for projects in the following municipalities: Afton, 
1.15 	Austin, Breckenridge, Carver, Delano, Faribault, Golden Valley, Hawley, Inver Grove 
1.16 	Heights, Jordan, Montevideo, Moorhead, Newfolden, Nielsville, Owatonna, Round Lake 
1.17 	Township in Jackson County, Sioux Valley Township in Jackson County, and Waseca.
1.18 	(e) This appropriation also may be used for projects in the following watershed districts: 
1.19 	Bois de Sioux Watershed District, Buffalo-Red River Watershed District, Cedar River 
1.20 	Watershed District, Lower Minnesota River Watershed District, Middle Snake Tamarac 
1.21 	Rivers Watershed District, Prior Lake-Spring Lake Watershed District, Red Lake Watershed 
1.22 	District, Roseau River Watershed District, Shell Rock River Watershed District, Two Rivers 
2.1 	Watershed District, Upper Minnesota River Watershed District, Valley Branch Watershed 
2.2 	District, and Wild Rice River Watershed District.
2.3 	(f) This appropriation may be used to alleviate high water on landlocked basins.
2.4 	(g) For any project listed in this subdivision that the commissioner determines is not 
2.5 	ready to proceed, does not have the nonstate match committed, or does not expend all the 
2.6 	money granted to it, the commissioner may allocate that project's unexpended money to a 
2.7 	priority project on the commissioner's list.
2.8 	(h) To the extent practicable and consistent with the project, recipients of appropriations 
2.9 	for flood control projects in this subdivision shall create wetlands that are eligible for wetland 
2.10 	replacement credit to replace wetlands drained or filled as the result of repair, reconstruction, 
2.11 	replacement, or rehabilitation of an existing public road under Minnesota Statutes, section 
2.12 	103G.222, subdivision 1, paragraphs (l) and (m).
2.13 	(i) To the extent that the cost of a project exceeds two percent of the median household 
2.14 	income in a municipality or township multiplied by the number of households in the 
2.15 	municipality or township, this appropriation is also for the local share of the project.
2.16 		Subd. 2.Bond Sale. To provide the money appropriated in this act from the bond 
2.17 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.18 	the state in an amount up to $20,000,000 in the manner, upon the terms, and with the effect 
2.19 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.20 	Constitution, article XI, sections 4 to 7.

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