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

1.5 	Section 1. RED RIVER BASIN FLOOD DAMAGE REDUCTION PROJECTS; 
1.6 	FLOOD HAZARD MITIGATION GRANTS.
 1.7 		Subdivision 1.Appropriation; Moorhead. (a) $24,000,000 is appropriated from 
1.8 	the bond proceeds to fund to the commissioner of natural resources for the state share 
1.9 	of flood hazard mitigation grants for publicly owned capital improvements to prevent 
1.10 	or alleviate flood damage under Minnesota Statutes, section 103F.161, and enhance 
1.11 	natural resources consistent with the flood damage reduction mediation agreement. Of 
1.12 	this appropriation:
1.13 	(1) $12,000,000 is for interim flood mitigation infrastructure and  property acquisition 
1.14 	in Moorhead; and
1.15 	(2) $12,000,000 is for the United States Army Corps of Engineers Fargo-Moorhead 
1.16 	metropolitan project.
1.17 	(b) For the purposes of determining any local match required, the project is defined 
1.18 	to include all local flood-related activities after April 2009 and projects resulting from the 
1.19 	United States Army Corps of Engineers Fargo-Moorhead Metropolitan Feasibility Study.
1.20 	(c) To the extent that the cost of the project exceeds two percent of the median 
1.21 	household income in the municipality multiplied by the number of households in the 
1.22 	municipality, this appropriation is also for the local share of the project.
2.1 		Subd. 2.Appropriation; Clay County. (a) $9,700,000 is appropriated from the 
2.2 	bond proceeds fund to the commissioner of natural resources for the state share of flood 
2.3 	hazard mitigation grants for publicly owned capital improvements to prevent or alleviate 
2.4 	flood damage under Minnesota Statutes, section 103F.161, and enhance natural resources 
2.5 	consistent with the flood damage reduction mediation agreement. Of this appropriation:
2.6 	(1) $6,110,000 is for property acquisition in Clay County;
2.7 	(2) $1,790,000 is to repair damages to Clay County State-Aid Highway 10 caused 
2.8 	by the 2009 flood response; and
2.9 	(3) $1,800,000 is for flood mitigation infrastructure in Clay County to protect the 
2.10 	Clay County government campus.
2.11 	(b) The match required for a project funded under paragraph (a), clause (1) or (2), 
2.12 	is an amount equal to two percent of the median household income in the township 
2.13 	multiplied by the number of households in the township in which the project is located.
2.14 	(c) The match required for a project funded under paragraph (a), clause (3), is an 
2.15 	amount equal to 12-1/2 percent of the cost of the project.
2.16 		Subd. 3.Appropriation; Buffalo-Red River Watershed District. (a) $4,900,000 
2.17 	is appropriated from the bond proceeds fund to the commissioner of natural resources for 
2.18 	the state share of a flood hazard mitigation grant to the Buffalo‑Red River Watershed 
2.19 	District for publicly owned capital improvements to prevent or alleviate flood damage 
2.20 	under Minnesota Statutes, section 103F.161. Of this appropriation:
2.21 	(1) $3,500,000 is for the project in Oakport Township; 
2.22 	(2) $1,000,000 is for the Manston Slough restoration project in the Buffalo‑Red 
2.23 	River Watershed District. Funding for this project must meet the state criteria in the 
2.24 	mediation agreement for natural resources enhancements; and
2.25 	(3) $400,000 is for the construction of critical lake outlets to address flooding and 
2.26 	high water levels affecting public roads and homes in the Buffalo‑Red River Watershed 
2.27 	District.
2.28 	(b) To the extent the cost of the project in Oakport Township exceeds two percent of 
2.29 	the median household income in the township multiplied by the number of households in 
2.30 	the township, this appropriation is also for the local share of the project.
2.31 		Subd. 4.Bond sale. To provide the money appropriated in this section from the 
2.32 	bond proceeds fund, the commissioner of management and budget shall sell and issue 
2.33 	bonds of the state in an amount up to $38,600,000 in the manner, upon the terms, and with 
2.34 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
2.35 	Minnesota Constitution, article XI, sections 4 to 7.

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