1.1 	A bill for an act
1.2 	relating to capital investment; appropriating money for city of Montevideo flood 
1.3 	hazard mitigation grant; 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) $3,200,000 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 to the city of Montevideo project for publicly owned capital improvements to prevent 
1.9 	or alleviate flood damages under Minnesota Statutes, section 103F.161.
1.10 	(b) Project priorities shall be determined by the commissioner as appropriate, based on 
1.11 	need and consideration of available leveraging of federal, local, and state funds.
1.12 	(c) For any project listed in this subdivision that the commissioner determines is not 
1.13 	ready to proceed or does not expend all the money allocated to it, the commissioner may 
1.14 	allocate that project's money to a project on the commissioner's priority list.
1.15 	(d) Local project match may include all costs associated with planning, engineering, 
1.16 	acquisition, and construction. The project grants are based on a reimbursable payment 
1.17 	process, and final reconciliation of the project's shared costs are finalized upon project 
1.18 	completion certification.
1.19 	(e) To the extent that the cost of a project exceeds two percent of the median household 
1.20 	income in the municipality multiplied by the number of households in the municipality, this 
1.21 	appropriation is also for the local share of the project.
2.1 		Subd. 2.Bond sale. To provide the money appropriated in this section from the bond 
2.2 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.3 	the state in an amount up to $3,200,000 in the manner, upon the terms, and with the effect 
2.4 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.5 	Constitution, article XI, sections 4 to 7.

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