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 GRANTS; APPROPRIATION.
 1.6 		Subdivision 1.Appropriation. (a) $55,000,000 is appropriated from the bond 
1.7 	proceeds fund to the commissioner of natural resources for the state share of flood hazard 
1.8 	mitigation grants for publicly owned capital improvements to prevent or alleviate flood 
1.9 	damage under Minnesota Statutes, section 103F.161. Levee projects, to the extent 
1.10 	practicable, shall meet the state standard of three feet above the 100-year flood elevation.
1.11 	(b) Project priorities shall be determined by the commissioner as appropriate, based 
1.12 	on need.
1.13 	(c) This appropriation includes money for the following county and municipal 
1.14 	projects as prioritized by the commissioner: Ada, Afton, Alvarado, Argyle, Austin, 
1.15 	Benson, Borup, Breckenridge, Brownton, Climax, Crookston, Delano, Douglas County, 
1.16 	Felton, Granite Falls, Halstad, Inver Grove Heights, Melrose, Montevideo, Moorhead, 
1.17 	Newport, Nielsville, Oakport Township, Oslo, Roseau, Rushford, St. Vincent, and Shelly.
1.18 	(d) This appropriation includes money for the following watershed projects: North 
1.19 	Ottawa, Bois de Sioux Watershed District; Redpath, Bois de Sioux Watershed District; 
1.20 	Upper Becker, Wild Rice Watershed District; Brandt-Angus, Middle Snake Tamarac 
1.21 	Watershed District; Thief River Falls, Red Lake Watershed District; Roseau Wildlife 
1.22 	Management Area, Roseau River Watershed District; Shell Rock Watershed District; Hay 
1.23 	Creek-Norlund, Roseau Watershed District; and Springbrook, Two Rivers Watershed 
1.24 	District.
2.1 	(e) For any project listed in this subdivision that the commissioner determines is not 
2.2 	ready to proceed or does not expend all the money allocated to it, the commissioner may 
2.3 	allocate that project's money to a project on the commissioner's priority list.
2.4 	(f) To the extent that the cost of a project exceeds two percent of the median 
2.5 	household income in the municipality multiplied by the number of households in the 
2.6 	municipality, this appropriation is also for the local share of the project.
2.7 		Subd. 2.Bond sale. To provide the money appropriated in this act from the bond 
2.8 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.9 	the state in an amount up to $55,000,000 in the manner, upon the terms, and with the effect 
2.10 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.11 	Constitution, article XI, sections 4 to 7.

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