1.1.................... moves to amend H.F. No. 575 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4APPROPRIATIONS

1.5
Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
1.6The sums shown in the column under "Appropriations" are appropriated from the bond
1.7proceeds fund, or another named fund, to the state agencies or officials indicated, to be
1.8spent for public purposes. Appropriations of bond proceeds must be spent as authorized by
1.9the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public
1.10land and buildings and other public improvements of a capital nature, or as authorized by
1.11the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless
1.12otherwise specified, money appropriated in this act for a capital program or project may be
1.13used to pay state agency staff costs that are attributed directly to the capital program or
1.14project in accordance with accounting policies adopted by the commissioner of management
1.15and budget. Unless otherwise specified, the appropriations in this act are available until the
1.16project is completed or abandoned subject to Minnesota Statutes, section 16A.642. Unless
1.17otherwise specified in this act, money appropriated in this act for activities under Minnesota
1.18Statutes, sections 16B.307, 84.946, and 135A.046, should not be used for projects that can
1.19be financed within a reasonable time frame under Minnesota Statutes, section 16B.322 or
1.2016C.144.
1.21
APPROPRIATIONS

1.22
Sec. 2. UNIVERSITY OF MINNESOTA
1.23
Subdivision 1.Total Appropriation
$
58,267,000
2.1To the Board of Regents of the University of
2.2Minnesota for the purposes specified in this
2.3section.
2.4
2.5
Subd. 2.Higher Education Asset Preservation
and Replacement (HEAPR)
30,000,000
2.6To be spent in accordance with Minnesota
2.7Statutes, section 135A.046.
2.8
2.9
Subd. 3.Duluth - Chemical Sciences and
Advanced Materials Science Building
28,267,000
2.10To design, construct, furnish, and equip a new
2.11laboratory building on the Duluth campus,
2.12including classrooms and research and
2.13undergraduate instructional laboratories.
2.14
Subd. 4.University Share
2.15Except for the appropriation for HEAPR, the
2.16appropriations in this section are intended to
2.17cover approximately two-thirds of the cost of
2.18each project. The remaining costs must be paid
2.19from university sources.
2.20
Subd. 5.Unspent Appropriations
2.21Upon substantial completion of a project
2.22authorized in this section and after written
2.23notice to the commissioner of management
2.24and budget, the Board of Regents must use
2.25any money remaining in the appropriation for
2.26that project for HEAPR under Minnesota
2.27Statutes, section 135A.046. The Board of
2.28Regents must report by February 1 of each
2.29even-numbered year to the chairs of the house
2.30of representatives and senate committees with
2.31jurisdiction over capital investment and higher
2.32education finance, and to the chairs of the
2.33house of representatives Ways and Means
2.34Committee and the senate Finance Committee,
3.1on how the remaining money has been
3.2allocated or spent.

3.3
3.4
Sec. 3. MINNESOTA STATE COLLEGES AND
UNIVERSITIES
3.5
Subdivision 1.Total Appropriation
$
36,244,000
3.6To the Board of Trustees of the Minnesota
3.7State Colleges and Universities for the
3.8purposes specified in this section.
3.9
3.10
Subd. 2.Higher Education Asset Preservation
and Replacement (HEAPR)
25,000,000
3.11To be spent in accordance with Minnesota
3.12Statutes, section 135A.046.
3.13
3.14
Subd. 3.Minnesota State Community and
Technical College
3.15
(a) Fergus Falls Campus
978,000
3.16To design, renovate, furnish, and equip a new
3.17Center for Student and Workforce Success
3.18(CSWS) that integrates the Regional
3.19Workforce Center. The board must enter into
3.20a lease agreement with the commissioner of
3.21employment and economic development, or
3.22partners of the commissioner, for use of the
3.23workforce center subject to Minnesota
3.24Statutes, section 16A.695. The board must use
3.25nonstate money for the remainder of the cost
3.26of the renovation.
3.27
(b) Wadena Campus
820,000
3.28To design, renovate, furnish, and equip the
3.29relocation of the current library to
3.30underutilized space and convert the vacated
3.31space into a centralized student services center.
3.32
3.33
Subd. 4.Northland Community and Technical
College, East Grand Forks
826,000
4.1To design, renovate, furnish, and equip science
4.2and radiological lab space on the East Grand
4.3Forks campus.
4.4
Subd. 5.South Central College, North Mankato
8,600,000
4.5To design, renovate, renew, furnish, and equip
4.6laboratory, classroom, and office spaces on
4.7the North Mankato campus.
4.8
Subd. 6.Debt Service
4.9(a) Except as provided in paragraph (b), the
4.10Board of Trustees shall pay the debt service
4.11on one-third of the principal amount of state
4.12bonds sold to finance projects authorized by
4.13this section. After each sale of general
4.14obligation bonds, the commissioner of
4.15management and budget shall notify the board
4.16of the amounts assessed for each year for the
4.17life of the bonds.
4.18(b) The board need not pay debt service on
4.19bonds sold to finance HEAPR. Where a
4.20nonstate match is required, the debt service is
4.21due on a principal amount equal to one-third
4.22of the total project cost, less the match
4.23committed before the bonds are sold.
4.24(c) The commissioner of management and
4.25budget shall reduce the board's assessment
4.26each year by one-third of the net income from
4.27investment of general obligation bond
4.28proceeds in proportion to the amount of
4.29principal and interest otherwise required to be
4.30paid by the board. The board shall pay its
4.31resulting net assessment to the commissioner
4.32of management and budget by December 1
4.33each year. If the board fails to make a payment
4.34when due, the commissioner of management
5.1and budget shall reduce allotments for
5.2appropriations from the general fund otherwise
5.3available to the board and apply the amount
5.4of the reduction to cover the missed debt
5.5service payment. The commissioner of
5.6management and budget shall credit the
5.7payments received from the board to the bond
5.8debt service account in the state bond fund
5.9each December 1 before money is transferred
5.10from the general fund under Minnesota
5.11Statutes, section 16A.641, subdivision 10.
5.12
Subd. 7.Unspent Appropriations
5.13(a) Upon substantial completion of a project
5.14authorized in this section and after written
5.15notice to the commissioner of management
5.16and budget, the board must use any money
5.17remaining in the appropriation for that project
5.18for HEAPR under Minnesota Statutes, section
5.19135A.046. The Board of Trustees must report
5.20by February 1 of each even-numbered year to
5.21the chairs of the house of representatives and
5.22senate committees with jurisdiction over
5.23capital investment and higher education
5.24finance, and to the chairs of the house of
5.25representatives Ways and Means Committee
5.26and the senate Finance Committee, on how
5.27the remaining money has been allocated or
5.28spent.
5.29(b) The unspent portion of an appropriation
5.30for a project in this section that is complete is
5.31available for HEAPR under this subdivision,
5.32at the same campus as the project for which
5.33the original appropriation was made and the
5.34debt service requirement under this section is
5.35reduced accordingly. Minnesota Statutes,
6.1section 16A.642, applies from the date of the
6.2original appropriation to the unspent amount
6.3transferred.

6.4
Sec. 4. EDUCATION
6.5
Subdivision 1.Total Appropriation
$
3,500,000
6.6To the commissioner of education for the
6.7purposes specified in this section.
6.8
Subd. 2.Library Construction Grants
2,000,000
6.9For library construction grants under
6.10Minnesota Statutes, section 134.45.
6.11
6.12
Subd. 3.Olmsted County - Dyslexia Institute of
Minnesota
1,500,000
6.13For a grant to Olmsted County to acquire land
6.14for, and to predesign, design, construct,
6.15furnish, and equip a facility in Olmsted County
6.16to support the local, regional, and national
6.17literacy work of the Dyslexia Institute of
6.18Minnesota, subject to Minnesota Statutes,
6.19section 16A.695. This appropriation is not
6.20available until the commissioner of
6.21management and budget determines that an
6.22amount sufficient to complete the project is
6.23committed to it from nonstate sources.

6.24
Sec. 5. MINNESOTA STATE ACADEMIES
6.25
Subdivision 1.Total Appropriation
$
2,050,000
6.26To the commissioner of administration for the
6.27purposes specified in this section.
6.28
Subd. 2.Asset Preservation
2,000,000
6.29For capital asset preservation improvements
6.30and betterments on both campuses of the
6.31Minnesota State Academies, to be spent in
7.1accordance with Minnesota Statutes, section
7.216B.307.
7.3
Subd. 3.Security Corridor
50,000
7.4For predesign for a safety corridor on the
7.5Minnesota State Academy for the Deaf
7.6campus.

7.7
Sec. 6. NATURAL RESOURCES
7.8
Subdivision 1.Total Appropriation
$
48,985,000
7.9(a) To the commissioner of natural resources
7.10for the purposes specified in this section.
7.11(b) The appropriations in this section are
7.12subject to the requirements of the natural
7.13resources capital improvement program under
7.14Minnesota Statutes, section 86A.12, unless
7.15this section or the statutes referred to in this
7.16section provide more specific standards,
7.17criteria, or priorities for projects than
7.18Minnesota Statutes, section 86A.12.
7.19
Subd. 2.Natural Resources Asset Preservation
15,000,000
7.20For the renovation of state-owned facilities
7.21and recreational assets operated by the
7.22commissioner of natural resources to be spent
7.23in accordance with Minnesota Statutes, section
7.2484.946. Notwithstanding Minnesota Statutes,
7.25section 84.946:
7.26(1) the commissioner may use this
7.27appropriation to replace buildings if,
7.28considering the embedded energy in the
7.29building, that is the most energy-efficient and
7.30carbon-reducing method of renovation; and
7.31(2) this appropriation may be used for projects
7.32to remove life safety hazards such as building
7.33code violations or structural defects.
8.1
Subd. 3.Flood Hazard Mitigation
11,555,000
8.2(a) For the state share of flood hazard
8.3mitigation grants for publicly owned capital
8.4improvements to prevent or alleviate flood
8.5damage under Minnesota Statutes, section
8.6103F.161.
8.7(b) Levee projects, to the extent practical, shall
8.8meet the state standard of three feet above the
8.9100-year flood elevation.
8.10(c) Project priorities shall be determined by
8.11the commissioner as appropriate and based on
8.12need.
8.13(d) This appropriation includes $1,700,000 for
8.14the Cedar River Watershed District, $750,000
8.15for the city of Browns Valley project, and
8.16$1,800,000 for the city of Ortonville project.
8.17(e) For any project listed in this subdivision
8.18that the commissioner determines is not ready
8.19to proceed or does not expend all the money
8.20allocated to it, the commissioner may allocate
8.21that project's money to a project on the
8.22commissioner's priority list.
8.23(f) To the extent that the cost of a project
8.24exceeds two percent of the median household
8.25income in a municipality or township
8.26multiplied by the number of households in the
8.27municipality or township, this appropriation
8.28is also for the local share of the project.
8.29
Subd. 4.Dam Renovation, Repair, Removal
15,000,000
8.30(a) For design, engineering, and construction
8.31to repair, reconstruct, or remove dams and
8.32respond to dam safety emergencies. The
8.33commissioner shall determine project priorities
8.34as appropriate under Minnesota Statutes,
9.1sections 103G.511 and 103G.515. Of this
9.2appropriation:
9.3(1) $500,000 is for emergencies on
9.4state-owned dams;
9.5(2) $3,600,000 is for a grant to the city of
9.6Lanesboro for repair of the Lanesboro dam
9.7and notwithstanding the match requirements
9.8in Minnesota Statutes, section 103G.511, does
9.9not require a nonstate contribution. This
9.10includes funding for repairs of the hydropower
9.11system;
9.12(3) $2,500,000 is for repairs to the Lake
9.13Bronson dam;
9.14(4) $500,000 is for a grant to the city of
9.15Pelican Rapids for engineering work on the
9.16Pelican Rapids dam;
9.17(5) $200,000 is for a grant to the city of Pine
9.18River for engineering work on the Norway
9.19Lake dam;
9.20(6) $200,000 is for a grant to Yellow Medicine
9.21County for the Canby R-6 impoundment dam;
9.22(7) $100,000 is for a grant to St. Louis County
9.23for the Little Stone Lake dam;
9.24(8) $6,000,000 is for a grant to Dakota County
9.25to design and construct capital improvements
9.26to the hydroelectric generating facility,
9.27including replacement of obsolete turbines, at
9.28the Byllesby Dam located on the Cannon
9.29River; and
9.30(9) $1,400,000 is for state dams at Brawner,
9.31West Leaf Lake, Collinwood, Grindstone
9.32River, and Sullivan.
10.1(b) If the commissioner determines that a
10.2project is not ready to proceed, this
10.3appropriation may be used for other projects
10.4on the commissioner's priority list.
10.5
Subd. 5.Reforestation and Stand Improvement
1,000,000
10.6To provide for reforestation and stand
10.7improvement on state forest lands to meet the
10.8reforestation requirements of Minnesota
10.9Statutes, section 89.002, subdivision 2,
10.10including purchasing native seeds and native
10.11seedlings, planting, seeding, site preparation,
10.12and protection on state lands administered by
10.13the commissioner.
10.14
10.15
Subd. 6.State Trail Acquisition and
Development
3,130,000
10.16For acquisition and development of the
10.17Gitchi-Gami State Trail, from Grand Marais
10.18to Cascade State Park, and through the town
10.19of Tofte.
10.20
Subd. 7.Champlin - Mill Pond
3,300,000
10.21For a grant to the city of Champlin to dredge
10.22and remove sediment and for other capital
10.23improvements to the Champlin Mill Pond
10.24necessary to improve water quality, restore
10.25fish habitat, and provide other public benefits.
10.26
Subd. 8.Unspent Appropriations
10.27The unspent portion of an appropriation for a
10.28project in this section that is complete, upon
10.29written notice to the commissioner of
10.30management and budget, is available for asset
10.31preservation under Minnesota Statutes, section
10.3284.946. Minnesota Statutes, section 16A.642,
10.33applies from the date of the original
10.34appropriation to the unspent amount
10.35transferred.

11.1
Sec. 7. POLLUTION CONTROL AGENCY
11.2
Subdivision 1.Total Appropriation
$
46,000,000
11.3To the Pollution Control Agency for the
11.4purposes specified in this section.
11.5
Subd. 2.St. Louis River Cleanup
25,400,000
11.6To design and implement contaminated
11.7sediment management actions identified in
11.8the St. Louis River remedial action plan to
11.9restore water quality in the St. Louis River
11.10Area of Concern.
11.11
Subd. 3.Closed Landfill Cleanup
11,350,000
11.12To design and construct remedial systems and
11.13acquire land at closed landfills throughout the
11.14state in accordance with the closed landfill
11.15program under Minnesota Statutes, sections
11.16115B.39 to 115B.42. The agency must follow
11.17the agency priorities, which includes a
11.18construction project at the waste disposal
11.19engineering (WDE) site in Anoka County.
11.20
Subd. 4.Capital Assistance Program
9,250,000
11.21This appropriation is for a grant to Polk
11.22County under the solid waste capital assistance
11.23grant program under Minnesota Statutes,
11.24section 115A.54, in order to complete a
11.25regional integrated solid waste management
11.26system.

11.27
11.28
Sec. 8. BOARD OF WATER AND SOIL
RESOURCES
11.29
Subdivision 1.Total Appropriation
$
15,000,000
11.30To the Board of Water and Soil Resources for
11.31the purposes specified in this section.
11.32
11.33
Subd. 2.Reinvest in Minnesota (RIM) Reserve
Program
10,000,000
12.1(a) To acquire conservation easements from
12.2landowners to preserve, restore, create, and
12.3enhance wetlands and associated uplands of
12.4prairie and grasslands, and restore and enhance
12.5rivers and streams, riparian lands, and
12.6associated uplands of prairie and grasslands
12.7in order to protect soil and water quality,
12.8support fish and wildlife habitat, reduce flood
12.9damage, and provide other public benefits.
12.10The provisions of Minnesota Statutes, section
12.11103F.515, apply to this program.
12.12(b) The board shall give priority to leveraging
12.13federal money by enrolling targeted new lands
12.14or enrolling environmentally sensitive lands
12.15that have expiring federal conservation
12.16agreements.
12.17(c) The board is authorized to enter into new
12.18agreements and amend past agreements with
12.19landowners as required by Minnesota Statutes,
12.20section 103F.515, subdivision 5, to allow for
12.21restoration. Of this appropriation, up to five
12.22percent may be used for restoration and
12.23enhancement.
12.24
12.25
Subd. 3.Local Government Roads Wetland
Replacement Program
5,000,000
12.26To acquire land or permanent easements and
12.27to restore, create, enhance, and preserve
12.28wetlands to replace those wetlands drained or
12.29filled as a result of the repair, reconstruction,
12.30replacement, or rehabilitation of existing
12.31public roads as required by Minnesota
12.32Statutes, section 103G.222, subdivision 1,
12.33paragraphs (l) and (m). The board may vary
12.34the priority order of Minnesota Statutes,
12.35section 103G.222, subdivision 3, paragraph
13.1(a), to implement an in-lieu fee agreement
13.2approved by the U.S. Army Corps of
13.3Engineers under section 404 of the Clean
13.4Water Act. The purchase price paid for
13.5acquisition of land or perpetual easement must
13.6be a fair market value as determined by the
13.7board. The board may enter into agreements
13.8with the federal government, other state
13.9agencies, political subdivisions, nonprofit
13.10organizations, fee title owners, or other
13.11qualified private entities to acquire wetland
13.12replacement credits in accordance with
13.13Minnesota Rules, chapter 8420.
13.14Up to $560,000 of this appropriation may be
13.15spent to replace wetlands drained or filled
13.16associated with a new public road project to
13.17improve public safety in a greater than 80
13.18percent area, as defined in Minnesota Statutes,
13.19section 103G.005, subdivision 10b.

13.20
Sec. 9. MINNESOTA ZOOLOGICAL GARDEN
13.21
Subdivision 1.Total Appropriation
$
4,000,000
13.22To the Minnesota Zoological Garden Board
13.23for the purposes specified in this section.
13.24
Subd. 2.Asset Preservation
4,000,000
13.25For capital asset preservation improvements
13.26and betterments to infrastructure and exhibits
13.27at the Minnesota Zoo, to be spent in
13.28accordance with Minnesota Statutes, section
13.2916B.307. Notwithstanding the specified uses
13.30of money under Minnesota Statutes, section
13.3116B.307, the board may use this appropriation
13.32to replace buildings that are in poor condition,
13.33outdated, and no longer support the work of
13.34the Minnesota Zoo and to construct and
14.1renovate trails and roads on the Minnesota
14.2Zoo site.

14.3
Sec. 10. ADMINISTRATION
14.4
Subdivision 1.Total Appropriation
$
12,500,000
14.5To the commissioner of administration for the
14.6purposes specified in this section.
14.7
14.8
Subd. 2.Capitol Complex - Physical Security
Upgrades
10,500,000
14.9For the design, construction, and equipping
14.10required to upgrade the physical security
14.11elements and systems for one or more of the
14.12buildings listed below, their attached tunnel
14.13systems and surrounding grounds, and parking
14.14facilities as identified in the 2014 Minnesota
14.15State Capitol Complex Physical Security Study
14.16conducted by Miller Dunwiddie Architecture.
14.17Work includes but is not limited to the
14.18installation of bollards, blast protection,
14.19infrastructure security screen walls, door
14.20access controls, emergency call stations,
14.21security kiosks, locking devices, and traffic
14.22control to the extent these funds allow. This
14.23appropriation is for work associated with one
14.24or more of the following buildings:
14.25Administration, Centennial, Judicial,
14.26Ag/Health Lab, Minnesota History Center,
14.27Minnesota History Center Loading Dock,
14.28Capitol Complex Power Plant and Shops,
14.29Stassen, State Office, and Veterans Service.
14.30
14.31
Subd. 3.Capital Asset Preservation and
Replacement Account
2,000,000
14.32To be spent in accordance with Minnesota
14.33Statutes, section 16A.632.

14.34
Sec. 11. MN.IT
$
$1,432,000
15.1To the commissioner of administration to
15.2predesign, design, construct, renovate, furnish,
15.3and equip existing state data center facilities
15.4at the Bureau of Criminal Apprehension's
15.5Maryland Avenue office building, at the
15.6Centennial Office Building, and at the
15.7Department of Revenue's Stassen Office
15.8Building for the purpose of decommissioning
15.9and repurposing into usable office space.

15.10
Sec. 12. MILITARY AFFAIRS
15.11
Subdivision 1. Total Appropriation
$
2,500,000
15.12To the adjutant general for the purposes
15.13specified in this section.
15.14
Subd. 2.Asset Preservation
2,500,000
15.15For asset preservation improvements and
15.16betterments of a capital nature at military
15.17affairs facilities statewide, to be spent in
15.18accordance with Minnesota Statutes, section
15.1916B.307.

15.20
Sec. 13. PUBLIC SAFETY
15.21
Subdivision 1.Total Appropriation
$
3,521,000
15.22To the named official for the purposes
15.23specified in this section.
15.24
Subd. 2.Camp Ripley Training Facility
3,521,000
15.25To the adjutant general to predesign, design,
15.26construct, and equip a joint emergency railroad
15.27and pipeline emergency response training
15.28facility at Camp Ripley. The project includes
15.29construction of stations and capital
15.30infrastructure needed for mock disaster
15.31training, including infrastructure for training
16.1in hazardous materials abatement and site
16.2recovery work.

16.3
Sec. 14. TRANSPORTATION
16.4
Subdivision 1.Total Appropriation
$
248,717,000
16.5To the commissioner of transportation for the
16.6purposes specified in this section.
16.7
16.8
Subd. 2.Local Bridge Replacement and
Rehabilitation
59,000,000
16.9From the bond proceeds account in the state
16.10transportation fund to match federal money
16.11and to replace or rehabilitate local deficient
16.12bridges as provided in Minnesota Statutes,
16.13section 174.50.
16.14
Subd. 3.Local Road Improvement Fund Grants
104,691,000
16.15(a) From the bond proceeds account in the
16.16state transportation fund as provided in
16.17Minnesota Statutes, section 174.50, for trunk
16.18highway corridor projects under Minnesota
16.19Statutes, section 174.52, subdivision 2, for
16.20construction and reconstruction of local roads
16.21with statewide or regional significance under
16.22Minnesota Statutes, section 174.52,
16.23subdivision 4, or for grants to counties to assist
16.24in paying the costs of rural road safety capital
16.25improvement projects on county state-aid
16.26highways under Minnesota Statutes, section
16.27174.52, subdivision 4a.
16.28(b) Of this amount, $9,000,000 is for a grant
16.29to Anoka County to realign and make
16.30associated improvements to County State-Aid
16.31Highway 23 (Lake Drive), County State-Aid
16.32Highway 54 (West Freeway Drive), and to
16.33Hornsby Street in the city of Columbus.
17.1(c) Of this amount, $3,246,000 is for a grant
17.2to the city of Blaine to predesign, design, and
17.3reconstruct 105th Avenue in the vicinity of
17.4the National Sports Center in Blaine. The
17.5reconstruction will include changing the street
17.6from five lanes to four lanes with median, turn
17.7lanes, sidewalk, trail, landscaping, lighting,
17.8and consolidation of access driveways. This
17.9appropriation is not available until the
17.10commissioner of management and budget
17.11determines that at least $3,000,000 is
17.12committed to the project from sources
17.13available to the city, including municipal state
17.14aid and county turnback funds.
17.15(d) Of this amount, $25,000,000 is for a grant
17.16to Hennepin County, the city of Minneapolis,
17.17or both, for design, right-of-way acquisition,
17.18engineering, and construction of public
17.19improvements related to the Interstate
17.20Highway 35W and Lake Street access project
17.21and related improvements within the Interstate
17.22Highway 35W corridor. This appropriation is
17.23not available until the commissioner of
17.24management and budget determines that an
17.25amount sufficient to complete this portion of
17.26the Interstate Highway 35W and Lake Street
17.27access project has been committed to the
17.28project.
17.29(e) Of this amount $10,500,000 is for a grant
17.30to Carver County for environmental analysis
17.31and to acquire right-of-way access, predesign,
17.32design, engineer, and construct an interchange
17.33at marked Trunk Highway 212 and Carver
17.34County Road 44 in the city of Chaska,
17.35including a new bridge and ramps, to support
18.1the development of approximately 400 acres
18.2of property in the city of Chaska's
18.3comprehensive plan.
18.4(f) Of this amount, $700,000 is for a grant to
18.5Redwood County to pave Nobles Avenue as
18.6the main access road to a new State Veterans
18.7Cemetery to be located in Paxton Township.
18.8
18.9
Subd. 4.Rail Grade Separation on Crude Oil
Rail Corridors
69,624,000
18.10(a) Of this amount, $42,262,000 is for a grant
18.11to the city of Moorhead for environmental
18.12analysis, design, engineering, removal of an
18.13existing structure, and construction of a rail
18.14grade crossing separation in the vicinity of
18.1521st Street South.
18.16(b) $12,600,000 is for a grant to Anoka County
18.17for environmental analysis, design,
18.18engineering, removal of an existing structure,
18.19and construction of a rail grade crossing
18.20separation at Anoka County State-Aid
18.21Highway 78, known as Hanson Boulevard, in
18.22Coon Rapids.
18.23(c) Of this amount, $14,762,000 is for a grant
18.24to the city of Red Wing for environmental
18.25analysis, design, engineering, removal of an
18.26existing structure, and construction of a rail
18.27grade crossing separation at Sturgeon Lake
18.28Road.
18.29(d) Any unspent portion of this appropriation
18.30after completion of a project in this
18.31subdivision may be used for grants in
18.32accordance with Minnesota Statutes, section
18.33219.016.
18.34
Subd. 5.Railroad Warning Devices
1,000,000
19.1To design, construct, and equip replacement
19.2of active highway-rail grade warning devices
19.3that have reached the end of their useful life.
19.4
19.5
Subd. 6.Minnesota Valley Regional Railroad
Authority
4,000,000
19.6For a grant to the Minnesota Valley Regional
19.7Rail Authority for the rehabilitation of a
19.8portion of the railroad track between Winthrop
19.9and Hanley Falls. The grant under this
19.10subdivision may also be used for any required
19.11environmental documentation and
19.12remediation, predesign, design, and
19.13rehabilitation or replacement of bridges with
19.14new bridges or culverts between Winthrop and
19.15Hanley Falls. A grant under this section is in
19.16addition to any grant, loan, or loan guarantee
19.17for this project made by the commissioner
19.18under Minnesota Statutes, sections 222.46 to
19.19222.62. This appropriation is in addition to
19.20the appropriations in Laws 2006, chapter 258,
19.21section 16, subdivision 6; Laws 2008, chapter
19.22179, section 16, subdivision 5; Laws 2009,
19.23chapter 93, article 1, section 11, subdivision
19.244; Laws 2010, chapter 189, section 15,
19.25subdivision 5; and Laws 2015, First Special
19.26Session chapter 5, article 1, section 10,
19.27subdivision 4.
19.28
Subd. 7.Port Development Assistance
5,000,000
19.29For grants under Minnesota Statutes, chapter
19.30457A. Any improvements made with the
19.31proceeds of these grants must be publicly
19.32owned.
19.33
19.34
Subd. 8.International Falls-Koochiching County
Airport Commission
3,000,000
20.1(a) For a grant to the International
20.2Falls-Koochiching County Airport
20.3Commission for the following improvements
20.4to the Falls International Airport:
20.5(1) demolition of the existing terminal
20.6building;
20.7(2) rehabilitation;
20.8(3) site preparation, including utilities and civil
20.9work;
20.10(4) design, construction, furnishing, and
20.11equipping Phase II of the new terminal
20.12building, including a Transportation Safety
20.13Administration office, weather office,
20.14conference room, circulation corridor, airport
20.15administration offices, United States Customs
20.16and Border Protection storage rooms, offices,
20.17restrooms, passenger-processing area,
20.18wet-hold room, interview room, search room,
20.19precustoms and postcustoms passenger waiting
20.20areas, and vestibule; and
20.21(5) associated appurtenances of a capital
20.22nature.
20.23(b) After completion of the improvements
20.24under paragraph (a), any unspent money from
20.25this appropriation may be used by the
20.26International Falls-Koochiching County
20.27Airport Commission for a commercial airline
20.28apron expansion project at the Falls
20.29International Airport.
20.30(c) This appropriation does not require a
20.31nonstate contribution or match.
20.32
Subd. 9.Grand Rapids - Pedestrian Bridge
750,000
21.1For a grant to the city of Grand Rapids to
21.2design the construction of a bridge over the
21.3Mississippi River for pedestrian and bicycle
21.4use to provide a safe alternative route to the
21.5existing marked Trunk Highway 169 vehicle
21.6bridge, and to serve as a connection to existing
21.7trail systems on each side of the river. This
21.8appropriation is not available until the
21.9commissioner determines that at least an equal
21.10amount has been committed to the project
21.11from nonstate sources.
21.12
Subd. 10.Safe Routes to School
1,650,000
21.13For grants under Minnesota Statutes, section
21.14174.40.

21.15
Sec. 15. METROPOLITAN COUNCIL
21.16
Subdivision 1.Total Appropriation
$
20,839,000
21.17To the Metropolitan Council for the purposes
21.18specified in this section.
21.19
21.20
Subd. 2.Metropolitan Regional Parks and Trails
Capital Improvements
5,000,000
21.21For the cost of improvements and betterments
21.22of a capital nature and acquisition by the
21.23council and local government units of regional
21.24recreational open-space lands in accordance
21.25with the council's policy plan as provided in
21.26Minnesota Statutes, section 473.147. This
21.27appropriation must not be used to purchase
21.28easements.
21.29
21.30
Subd. 3.Metropolitan Cities Inflow and
Infiltration Grants
3,739,000
21.31For grants to cities within the metropolitan
21.32area, as defined in Minnesota Statutes, section
21.33473.121, subdivision 2, for capital
21.34improvements in municipal wastewater
22.1collection systems to reduce the amount of
22.2inflow and infiltration to the Metropolitan
22.3Council's metropolitan sanitary sewer disposal
22.4system. Grants from this appropriation are for
22.5up to 50 percent of the cost to mitigate inflow
22.6and infiltration in the publicly owned
22.7municipal wastewater collection systems. To
22.8be eligible for a grant, a city must be identified
22.9by the council as a contributor of excessive
22.10inflow and infiltration in the metropolitan
22.11disposal system or have a measured flow rate
22.12within 20 percent of its allowable
22.13council-determined inflow and infiltration
22.14limits. The council must award grants based
22.15on applications from cities that identify
22.16eligible capital costs and include a timeline
22.17for inflow and infiltration mitigation
22.18construction, pursuant to guidelines
22.19established by the council.
22.20
Subd. 4.Metro Orange Line BRT
12,100,000
22.21Up to $12,100,000, but an amount that is no
22.22more than ten percent of the total project cost,
22.23is for the Metropolitan Council, or for the
22.24Metropolitan Council to make grants to
22.25political subdivisions, for design, acquisition
22.26of right-of-way, engineering, and construction
22.27of capital improvements along the I-35W
22.28corridor for completion of the Metro Orange
22.29Bus Rapid Transit (BRT) Line.

22.30
Sec. 16. HUMAN SERVICES
22.31
Subdivision 1.Total Appropriation
$
92,035,000
22.32To the commissioner of administration, or
22.33another named agency, for the purposes
22.34specified in this section.
23.1
Subd. 2.Minnesota Security Hospital - St. Peter
70,255,000
23.2To complete design, remodel, construct,
23.3furnish, and equip the second phase of the
23.4two-phase project to remodel existing, and to
23.5develop new, residential, program, activity,
23.6and ancillary facilities for the Minnesota
23.7Security Hospital on the upper campus of the
23.8St. Peter Regional Treatment Center. This
23.9appropriation includes money to: demolish,
23.10renovate, and remodel existing space;
23.11construct new space; address fire and life
23.12safety, and other building code deficiencies;
23.13replace or renovate interior finishes; purchase
23.14furnishings, fixtures, and equipment; replace
23.15or renovate the Minnesota Security Hospital
23.16building's HVAC, plumbing, electrical,
23.17security, and life safety systems; tuck-point;
23.18replace windows and doors; design and abate
23.19asbestos and hazardous materials; and
23.20complete site work necessary to support the
23.21programmed use of the facilities on the St.
23.22Peter Regional Treatment Center upper
23.23campus.
23.24
23.25
Subd. 3.Child and Adolescent Behavioral Health
Services
7,530,000
23.26(a) To predesign, design, construct, furnish,
23.27and equip a new community-based 16-bed
23.28psychiatric hospital facility to house the Child
23.29and Adolescent Behavioral Health Services
23.30(CABHS) program to be located in or near the
23.31city of Willmar. This appropriation includes
23.32funds for land purchase, surveying, predesign
23.33and design fees, construction administration,
23.34project management, site work, site and
23.35building infrastructure, construction, and
23.36furniture, fixtures, and equipment.
24.1(b) Notwithstanding any law to the contrary,
24.2the 16 hospital beds licensed to the CABHS's
24.3facility on January 1, 2017, by the Department
24.4of Health, may transfer to this new facility
24.5upon completion, and approved inspection by
24.6the Departments of Health and Human
24.7Services.
24.8
24.9
Subd. 4.Anoka Metro Regional Treatment
Center - Safety and Security Renovations
2,250,000
24.10To provide security upgrades of a capital
24.11nature at the Anoka Metro Regional Treatment
24.12Center campus, including but not limited to
24.13control centers, electronic monitoring and
24.14perimeter security equipment, new or updated
24.15security fencing, and other building security
24.16renovations. This appropriation includes
24.17money for: predesign, design, furnishing,
24.18fixtures, and equipment; construction of safety
24.19and security improvements to courtyards on
24.20residential treatment units; securely enclosing
24.21the nursing station on Unit G; and installing
24.22a campus-wide closed-circuit television video
24.23security system, a facility-wide personal
24.24duress alarm system, a key control system,
24.25and an electronic access control system.
24.26
24.27
Subd. 5.St. Paul - Dorothy Day Opportunity
Center
12,000,000
24.28To the commissioner of human services for a
24.29grant to the city of St. Paul to predesign,
24.30design, construct, furnish, and equip an
24.31opportunity center to serve as an integrated
24.32one-stop delivery system connecting persons
24.33at risk of becoming homeless, and persons
24.34working to move up and out of homelessness,
24.35and to provide services that improve their
24.36health, income, housing stability, or
25.1well-being, subject to Minnesota Statutes,
25.2section 16A.695. This appropriation may be
25.3used to acquire property for these purposes.
25.4This appropriation is not available until the
25.5commissioner of management and budget has
25.6determined that at least an equal amount has
25.7been committed to the project from nonstate
25.8sources.

25.9
Sec. 17. VETERANS AFFAIRS
25.10
Subdivision 1.Total Appropriation
$
12,851,000
25.11To the commissioner of administration for the
25.12purposes specified in this section.
25.13
Subd. 2.Asset Preservation
5,000,000
25.14For asset preservation improvements and
25.15betterments of a capital nature at the veterans
25.16homes in Minneapolis, Hastings, Fergus Falls,
25.17Silver Bay, and Luverne, to be spent in
25.18accordance with Minnesota Statutes, section
25.1916B.307.
25.20
25.21
Subd. 3.Minneapolis Veterans Home Truss
Bridge Project
7,851,000
25.22To design, construct, renovate, and equip the
25.23historic truss bridge on the Minneapolis
25.24Veterans Home campus, including asbestos
25.25and hazardous materials abatement and
25.26associated site work.

25.27
Sec. 18. CORRECTIONS
25.28
Subdivision 1.Total Appropriation
$
39,000,000
25.29To the commissioner of administration for the
25.30purposes specified in this section.
25.31
Subd. 2.Asset Preservation
20,000,000
26.1For asset preservation improvements and
26.2betterments of a capital nature at Minnesota
26.3correctional facilities statewide, to be spent in
26.4accordance with Minnesota Statutes, section
26.516B.307.
26.6
26.7
Subd. 3.Minnesota Correctional Facility - St.
Cloud
19,000,000
26.8To construct and equip a new intake unit and
26.9a loading dock with a secure connection to a
26.10new central warehouse at the St. Cloud
26.11correctional facility.

26.12
26.13
Sec. 19. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
26.14
Subdivision 1.Total Appropriation
$
42,272,000
26.15To the commissioner of employment and
26.16economic development for the purposes
26.17specified in this section.
26.18
Subd. 2.Transportation Economic Development
7,000,000
26.19For grants under Minnesota Statutes, section
26.20116J.436.
26.21
26.22
Subd. 3.Greater Minnesota Business
Development Public Infrastructure Grants
12,000,000
26.23For grants under Minnesota Statutes, section
26.24116J.431.
26.25
26.26
Subd. 4.Innovative Business Development Public
Infrastructure Grants
2,500,000
26.27For grants under Minnesota Statutes, section
26.28116J.435.
26.29
Subd. 5.Eagle's Healing Nest
300,000
26.30From the general fund for a grant to Eagle's
26.31Healing Nest in Sauk Centre.
26.32
26.33
Subd. 6.Chisago County Law Enforcement and
Emergency Operations Center
3,000,000
27.1For a grant to Chisago County to predesign,
27.2design, construct, furnish, and equip a
27.3municipal complex that includes a law
27.4enforcement and emergency operations center,
27.5and related facilities and infrastructure, for
27.6interconnection to the county emergency
27.7communications center. This appropriation is
27.8not available until the commissioner has
27.9determined that at least an equal amount has
27.10been committed to the project from nonstate
27.11sources. Amounts expended by Chisago
27.12County for project costs since July 1, 2015,
27.13shall count toward the matching requirement.
27.14
27.15
Subd. 7.Litchfield - Phase 2 Power Generation
Improvements
3,000,000
27.16For a grant to the city of Litchfield to design
27.17and construct electrical generation
27.18improvements in the city of Litchfield to
27.19expand the current standby capacity. This
27.20appropriation is not available until the
27.21commissioner of management and budget
27.22determines that at least an equal amount is
27.23committed to the project from nonstate
27.24sources.
27.25
27.26
Subd. 8.Minneapolis - Pioneers and Soldiers
Cemetery Restoration
1,029,000
27.27For a grant to the city of Minneapolis to
27.28restore the historic steel and limestone pillar
27.29fence along Cedar Avenue and Lake Street,
27.30install a new steel fence and pillars along 21st
27.31Avenue South, and install a waterproofing
27.32system for preservation of the fence and
27.33pillars, at the Pioneer and Soldiers Cemetery.
27.34This appropriation does not require a nonstate
27.35contribution.
27.36
Subd. 9.St. James - Public Infrastructure
3,443,000
28.1For a grant to the city of St. James. Of this
28.2amount, $2,193,000 is for engineering,
28.3right-of-way acquisition, and reconstruction
28.4of streets, sidewalks, storm water and sanitary
28.5sewer, water mains, lighting, utilities, and
28.6other capital improvements of publicly owned
28.7infrastructure required for the reconstruction
28.8of marked Trunk Highway 4 in the city of St.
28.9James, and $1,250,000 is for replacement of
28.10the storm sewer drain that serves St. James
28.11Lake and the entire southern section of the
28.12city of St. James.
28.13
28.14
Subd. 10.St. Paul - Science Museum of
Minnesota Building Preservation
13,000,000
28.15For a grant to the city of St. Paul for predesign,
28.16design, and construction work to replace
28.17water-damaged elements of the Science
28.18Museum of Minnesota's exterior envelope and
28.19some resultant interior damage caused by
28.20latent design and construction defects, subject
28.21to Minnesota Statutes, section 16A.695. This
28.22appropriation is not available until the
28.23commissioner of management and budget
28.24determines that an equal amount has been
28.25committed to the project from nonstate
28.26sources. Capital costs paid by the Science
28.27Museum of Minnesota since January 1, 2014,
28.28relating to the water intrusion damage, shall
28.29count towards the match requirement.

28.30
Sec. 20. PUBLIC FACILITIES AUTHORITY
28.31
Subdivision 1.Total Appropriation
$
114,963,000
28.32To the Public Facilities Authority for the
28.33purposes specified in this section. The Public
28.34Facilities Authority may use the funds in this
28.35section or other available funds to amend
29.1project financing agreements awarded after
29.2July 1, 2016, based on program changes to
29.3Minnesota Statutes, sections 446A.072 and
29.4446A.073, in article 2 of this act.
29.5
Subd. 2.State Match for Federal Grants
17,000,000
29.6To match federal grants for the clean water
29.7revolving fund under Minnesota Statutes,
29.8section 446A.07, and the drinking water
29.9revolving fund under Minnesota Statutes,
29.10section 446A.081. This appropriation must be
29.11used for qualified capital projects.
29.12
Subd. 3.Water Infrastructure Funding Program
55,000,000
29.13(a) For grants to eligible municipalities under
29.14the water infrastructure funding program under
29.15Minnesota Statutes, section 446A.072.
29.16(b) $40,000,000 is for wastewater projects
29.17listed on the Pollution Control Agency's
29.18project priority list in the fundable range under
29.19the clean water revolving fund program.
29.20(c) $15,000,000 is for drinking water projects
29.21listed on the Department of Health's project
29.22priority list in the fundable range under the
29.23drinking water revolving fund program.
29.24(d) After all eligible projects under paragraph
29.25(b) or (c) have been funded, the Public
29.26Facilities Authority may transfer any
29.27remaining, uncommitted money to eligible
29.28projects under a program defined in paragraph
29.29(b) or (c) based on that program's project
29.30priority list.
29.31
29.32
Subd. 4.Point Source Implementation Grants
Program
33,737,000
29.33For grants to eligible municipalities under the
29.34point source implementation grants program
30.1under Minnesota Statutes, section 446A.073.
30.2This appropriation must be used for qualified
30.3capital projects.
30.4
30.5
Subd. 5.Big Lake Area Sanitary District - Sewer
System and Force Main
1,200,000
30.6For a grant to the Big Lake Area Sanitary
30.7District to construct a pressure sewer system
30.8and force main to convey sewage to the
30.9Western Lake Superior Sanitary District
30.10connection in the city of Cloquet. This
30.11appropriation is not available until the
30.12commissioner of management and budget
30.13determines that an equal amount is committed
30.14from nonstate sources. This appropriation is
30.15in addition to the appropriation in Laws 2014,
30.16chapter 294, article 1, section 22, subdivision
30.174.
30.18
30.19
Subd. 6.Dennison - Sewage Treatment System
Improvements
726,000
30.20For a grant to the city of Dennison to
30.21predesign, design, and construct a new lift
30.22station and make sewage pond improvements.
30.23This appropriation does not require a nonstate
30.24contribution.
30.25
30.26
Subd. 7.East Grand Forks - Wastewater
Interconnection Infrastructure
5,300,000
30.27For a grant to the city of East Grand Forks to
30.28design and construct Phase I of the wastewater
30.29infrastructure improvements interconnecting
30.30the wastewater system of East Grand Forks to
30.31the wastewater treatment system in Grand
30.32Forks, North Dakota, and to design and
30.33construct Phase II, decommissioning of the
30.34wastewater stabilization ponds in East Grand
30.35Forks, Minnesota. This appropriation may not
30.36be used for improvements outside the state.
31.1This appropriation is in addition to grants
31.2under Minnesota Statutes, section 446A.072.
31.3A nonstate match is not required.
31.4
31.5
Subd. 8.Koochiching County - Voyageurs
National Park Clean Water Project
2,000,000
31.6(a) For a grant to Koochiching County to
31.7acquire land or interests in land, and to design,
31.8engineer, construct, and equip sanitary sewage
31.9systems and facilities to implement a portion
31.10or portions of the Voyageurs National Park
31.11clean water project comprehensive plan. This
31.12appropriation is available after the
31.13commissioner of management and budget
31.14determines that $4,500,000 is committed from
31.15nonstate sources.
31.16(b) This appropriation is in addition to the
31.17appropriation in Laws 2014, chapter 294,
31.18article 1, section 22, subdivision 7.
31.19Notwithstanding the match requirement in
31.20Laws 2014, chapter 294, article 1, section 22,
31.21subdivision 7, the nonstate match required for
31.22this appropriation and the 2014 appropriation
31.23for a grant to Koochiching County is 25
31.24percent of the state grant amounts. Any money
31.25remaining from this appropriation after
31.26completion of the projects in paragraph (a) is
31.27available for grants to Koochiching County
31.28or St. Louis County to be used for other capital
31.29projects described in the comprehensive plan
31.30and as determined by the Voyageurs National
31.31Park Clean Water Joint Powers Board.

31.32
31.33
Sec. 21. MINNESOTA HOUSING FINANCE
AGENCY
$
10,000,000
31.34For transfer to the housing development fund
31.35to finance the costs of rehabilitation to
32.1preserve public housing under Minnesota
32.2Statutes, section 462A.202, subdivision 3a.
32.3For purposes of this section, "public housing"
32.4means housing for low-income persons and
32.5households financed by the federal
32.6government and owned and operated by the
32.7public housing authorities and agencies formed
32.8by cities and counties. Public housing
32.9authorities receiving a public housing
32.10assessment composite score of 80 or above or
32.11an equivalent designation are eligible to
32.12receive funding. Priority must be given to
32.13proposals that maximize federal or local
32.14resources to finance the capital costs. The
32.15priority in Minnesota Statutes, section
32.16462A.202, subdivision 3a, for projects to
32.17increase the supply of affordable housing and
32.18the restrictions of Minnesota Statutes, section
32.19462A.202, subdivision 7, do not apply to this
32.20appropriation.

32.21
32.22
Sec. 22. MINNESOTA HISTORICAL
SOCIETY
32.23
Subdivision 1.Total Appropriation
$
2,500,000
32.24To the Minnesota Historical Society for the
32.25purposes specified in this section.
32.26
Subd. 2.Historic Sites Asset Preservation
2,500,000
32.27For capital improvements and betterments at
32.28state historic sites, buildings, landscaping at
32.29historic buildings, exhibits, markers, and
32.30monuments, to be spent in accordance with
32.31Minnesota Statutes, section 16B.307. The
32.32society shall determine project priorities as
32.33appropriate based on need.

32.34
Sec. 23. BOND SALE EXPENSES
$
821,000
33.1To the commissioner of management and
33.2budget for bond sale expenses under
33.3Minnesota Statutes, section 16A.641,
33.4subdivision 8.

33.5    Sec. 24. BOND SALE AUTHORIZATION.
33.6    Subdivision 1. Bond proceeds fund. To provide the money appropriated in this act from
33.7the bond proceeds fund, the commissioner of management and budget shall sell and issue
33.8bonds of the state in an amount up to $656,986,000 in the manner, upon the terms, and with
33.9the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
33.10Minnesota Constitution, article XI, sections 4 to 7.
33.11    Subd. 2. Transportation fund. To provide the money appropriated in this act from the
33.12state transportation fund, the commissioner of management and budget shall sell and issue
33.13bonds of the state in an amount up to $163,691,000 in the manner, upon the terms, and with
33.14the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
33.15Minnesota Constitution, article XI, sections 4 to 7.

33.16    Sec. 25. CANCELLATIONS; BOND SALE AUTHORIZATION REDUCTIONS.
33.17(a) The remaining uncommitted appropriations from the bond proceeds fund in Laws
33.181990, chapter 610, are canceled and the bond sale authorization in Laws 1990, chapter 610,
33.19article 1, section 30, subdivision 1, as amended, is reduced by $3,129.
33.20(b) The remaining uncommitted appropriations from the bond proceeds fund in Laws
33.211994, chapter 643, are canceled and the bond sale authorization in Laws 1994, chapter 643,
33.22section 31, subdivision 1, as amended, is reduced by $24,480.
33.23(c) The remaining uncommitted appropriations from the bond proceeds fund in Laws
33.241997, Second Special Session chapter 2, are canceled and the bond sale authorization in
33.25Laws 1997, Second Special Session chapter 2, section 12, as amended, is reduced by $96,992.
33.26(d) The remaining uncommitted appropriations from the bond proceeds fund in Laws
33.271999, chapter 240, are canceled and the bond sale authorization in Laws 1999, chapter 240,
33.28article 1, section 13, subdivision 1, as amended, is reduced by $212,472.
33.29(e) The remaining uncommitted appropriations from the bond proceeds fund in Laws
33.302000, chapter 492, are canceled and the bond sale authorization in Laws 2000, chapter 492,
33.31article 1, section 26, subdivision 1, as amended, is reduced by $7,933,538.
34.1(f) The remaining uncommitted appropriations from the bond proceeds fund in Laws
34.22002, chapter 393, are canceled and the bond sale authorization in Laws 2002, chapter 393,
34.3section 30, subdivision 1, as amended, is reduced by $188,471.
34.4(g) The remaining uncommitted appropriations from the bond proceeds fund in Laws
34.52002, First Special Session chapter 1, are canceled and the bond sale authorization in Laws
34.62002, First Special Session chapter 1, section 9, subdivision 1, is reduced by $217,959.
34.7(h) The remaining uncommitted appropriations from the trunk highway bond proceeds
34.8fund in Laws 2003, First Special Session chapter 19, article 3, are canceled and the bond
34.9sale authorization in Laws 2003, First Special Session chapter 19, article 3, section 2, is
34.10reduced by $201,530.
34.11(i) The remaining uncommitted appropriations from the trunk highway bond proceeds
34.12fund in Laws 2003, First Special Session chapter 19, article 4, are canceled and the bond
34.13sale authorization in Laws 2003, First Special Session chapter 19, article 4, section 4, is
34.14reduced by $326,534.
34.15(j) The remaining uncommitted appropriations from the bond proceeds fund in Laws
34.162005, chapter 20, are canceled and the bond sale authorization in Laws 2005, chapter 20,
34.17article 1, section 28, subdivision 1, as amended, is reduced by $3,366,628.
34.18(k) The $700,000 appropriation from the bond proceeds fund in Laws 2011, First Special
34.19Session chapter 12, section 13, subdivision 8, for St. Louis Park noise barriers, is canceled
34.20and the bond sale authorization in Laws 2011, First Special Session chapter 12, section 23,
34.21subdivision 1, is reduced by the same amount.
34.22(l) The $2,285,000 appropriation from the bond proceeds fund in Laws 2012, First
34.23Special Session chapter 1, article 1, section 3, subdivision 2, to the commissioner of public
34.24safety for disaster relief, is canceled and the bond sale authorization in Laws 2012, First
34.25Special Session chapter 1, article 1, section 16, subdivision 1, is reduced by the same amount.
34.26(m) $1,380,000 of the appropriation from the bond proceeds fund in Laws 2012, First
34.27Special Session chapter 1, article 1, section 6, to the Public Facilities Authority for disaster
34.28relief, is canceled and the bond sale authorization in Laws 2012, First Special Session chapter
34.291, article 1, section 16, subdivision 1, is reduced by the same amount.
34.30(n) The $300,000 appropriation from the general fund in Laws 2015, First Special Session
34.31chapter 5, article 1, section 14, subdivision 4, for Eagle's Healing Nest is canceled.

35.1    Sec. 26. BOND SALE SCHEDULE.
35.2The commissioner of management and budget shall schedule the sale of state general
35.3obligation bonds so that, during the biennium ending June 30, 2019, no more than
35.4$1,142,817,000 will need to be transferred from the general fund to the state bond fund to
35.5pay principal and interest due and to become due on outstanding state general obligation
35.6bonds. During the biennium, before each sale of state general obligation bonds, the
35.7commissioner of management and budget shall calculate the amount of debt service payments
35.8needed on bonds previously issued and shall estimate the amount of debt service payments
35.9that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
35.10amount of bonds scheduled to be sold so as to remain within the limit set by this section.
35.11The amount needed to make the debt service payments is appropriated from the general
35.12fund as provided in Minnesota Statutes, section 16A.641.

35.13    Sec. 27. EFFECTIVE DATE.
35.14    Except as otherwise provided, this article is effective the day following final enactment.

35.15ARTICLE 2
35.16MISCELLANEOUS

35.17    Section 1. Minnesota Statutes 2016, section 16A.967, is amended to read:
35.1816A.967 LEWIS AND CLARK APPROPRIATION BONDS.
35.19    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
35.20(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of
35.21the state payable during a biennium from one or more of the following sources:
35.22(1) money appropriated by law from the general fund in any biennium for debt service
35.23due with respect to obligations described in subdivision 2, paragraph (c) subdivisions 2a
35.24and 2b;
35.25(2) proceeds of the sale of obligations described in subdivision 2, paragraph (c)
35.26subdivisions 2a and 2b;
35.27(3) payments received for that purpose under agreements and ancillary arrangements
35.28described in subdivision 2, paragraph (e) (d); and
35.29(4) investment earnings on amounts in clauses (1) to (3).
35.30(c) "Debt service" means the amount payable in any biennium of principal, premium, if
35.31any, and interest on appropriation bonds.
36.1    Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the limitations of
36.2this subdivision, the commissioner may sell and issue appropriation bonds of the state under
36.3this section for public purposes as provided by law, including, in particular, the financing
36.4of the land acquisition, design, engineering, and construction of facilities and infrastructure
36.5necessary to complete the next phase of the Lewis and Clark Regional Water System project,
36.6including completion of the pipeline to Magnolia, extension of the project to the
36.7Lincoln-Pipestone Rural Water System connection near Adrian, and engineering, design,
36.8and easement acquisition for the final phase of the project to Worthington. No bonds shall
36.9be sold until the commissioner determines that a nonstate match of at least $9,000,000 is
36.10committed to this project phase. Grant agreements entered into under this section must
36.11provide for reimbursement to the state from any federal money provided for the project,
36.12consistent with the Lewis and Clark Regional Water System, Inc., agreement.
36.13(b) The appropriation bonds may be issued and sold only after the commissioner
36.14determines that the construction and administration for work done on the project will comply
36.15with (1) all federal requirements and regulations associated with the Lewis and Clark Rural
36.16Water System Act of 2000, and (2) the cooperative agreement between the United States
36.17Department of the Interior and the Lewis and Clark Regional Water System, Inc. Proceeds
36.18of the appropriation bonds must be credited to a special appropriation Lewis and Clark bond
36.19proceeds fund in the state treasury. All income from investment of the bond proceeds, as
36.20estimated by the commissioner, is appropriated to the commissioner for the payment of
36.21principal and interest on the appropriation bonds.
36.22(c) Appropriation bonds may be sold and issued in amounts that, in the opinion of the
36.23commissioner, are necessary to provide sufficient money, not to exceed $19,000,000 net of
36.24costs of issuance, for the purposes as provided under paragraph (a), and pay debt service
36.25including capitalized interest, costs of issuance, costs of credit enhancement, or make
36.26payments under other agreements entered into under paragraph (e).
36.27(d) (c) Appropriation bonds may be issued in one or more issues or series on the terms
36.28and conditions the commissioner determines to be in the best interests of the state, but the
36.29term on any series of appropriation bonds may not exceed 25 years. The appropriation bonds
36.30of each issue and series thereof shall be dated and bear interest, and may be includable in
36.31or excludable from the gross income of the owners for federal income tax purposes.
36.32(e) (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
36.33time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
36.34enter into agreements and ancillary arrangements relating to the appropriation bonds,
36.35including but not limited to trust indentures, grant agreements, lease or use agreements,
37.1operating agreements, management agreements, liquidity facilities, remarketing or dealer
37.2agreements, letter of credit agreements, insurance policies, guaranty agreements,
37.3reimbursement agreements, indexing agreements, or interest exchange agreements. Any
37.4payments made or received according to the agreement or ancillary arrangement shall be
37.5made from or deposited as provided in the agreement or ancillary arrangement. The
37.6determination of the commissioner included in an interest exchange agreement that the
37.7agreement relates to an appropriation bond shall be conclusive.
37.8(f) (e) The commissioner may enter into written agreements or contracts relating to the
37.9continuing disclosure of information necessary to comply with or facilitate the issuance of
37.10appropriation bonds in accordance with federal securities laws, rules, and regulations,
37.11including Securities and Exchange Commission rules and regulations in Code of Federal
37.12Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
37.13with purchasers and holders of appropriation bonds set forth in the order or resolution
37.14authorizing the issuance of the appropriation bonds, or a separate document authorized by
37.15the order or resolution.
37.16(g) (f) The appropriation bonds are not subject to chapter 16C.
37.17    Subd. 2a. Project authorization. Appropriation bonds may be sold and issued in amounts
37.18that, in the opinion of the commissioner, are necessary to provide sufficient money to the
37.19Public Facilities Authority under subdivision 7, paragraph (a), not to exceed $19,000,000
37.20net of costs of issuance, for the purposes as provided under this subdivision, and pay debt
37.21service including capitalized interest, costs of issuance, costs of credit enhancement, or
37.22make payments under other agreements entered into under subdivision 2, paragraph (d).
37.23The bonds authorized by this subdivision are for the purposes of financing the land
37.24acquisition, design, engineering, and construction of facilities and infrastructure necessary
37.25to complete Phase 2 of the Lewis and Clark Regional Water System project, including
37.26completion of the pipeline to Magnolia; extension of the project to the Lincoln-Pipestone
37.27Rural Water System connection near Adrian; engineering, design, and easement acquisition
37.28for the final phase of the project to Worthington; and to begin and proceed with Phase 3,
37.29described in subdivision 2b. No bonds shall be sold under this subdivision until the
37.30commissioner determines that a nonstate match of at least $9,000,000 is committed to this
37.31project phase. Upon certification by the Lewis and Clark Joint Powers Board that the bond
37.32sale authorization provided by this subdivision has fully met the needs of Phase 2 of the
37.33project, and to the extent there is additional authorization remaining, this authorization is
37.34also available for the purposes of and on the same conditions as subdivision 2b.
38.1    Subd. 2b. Additional project authorization. Appropriation bonds may be sold and
38.2issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient
38.3money to the Public Facilities Authority under subdivision 7, paragraph (b), not to exceed
38.4$3,500,000 net of costs of issuance, for the purposes as provided under this subdivision,
38.5and pay debt service including capitalized interest, costs of issuance, costs of credit
38.6enhancement, or make payments under other agreements entered into under subdivision 2,
38.7paragraph (d). The bonds authorized by this subdivision are for the purposes of financing
38.8the land acquisition, design, engineering, and construction of facilities and infrastructure
38.9necessary to complete Phase 3 of the Lewis and Clark Regional Water System project,
38.10including extension of the project from the Lincoln-Pipestone Rural Water System connection
38.11near Adrian to Worthington, construction of a reservoir in Nobles County and a meter
38.12building in Worthington, and acquisition and installation of a supervisory control and data
38.13acquisition (SCADA) system. No bonds shall be sold under this subdivision until the
38.14commissioner determines that a nonstate match of at least $9,000,000 is committed to the
38.15final phase of the project.
38.16    Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form of bonds,
38.17notes, or other similar instruments, and in the manner provided in section 16A.672. In the
38.18event that any provision of section 16A.672 conflicts with this section, this section shall
38.19control.
38.20(b) Every appropriation bond shall include a conspicuous statement of the limitation
38.21established in subdivision 6.
38.22(c) Appropriation bonds may be sold at either public or private sale upon such terms as
38.23the commissioner shall determine are not inconsistent with this section and may be sold at
38.24any price or percentage of par value. Any bid received may be rejected.
38.25(d) Appropriation bonds must bear interest at a fixed or variable rate.
38.26(e) Notwithstanding any other law, appropriation bonds issued under this section shall
38.27be fully negotiable.
38.28    Subd. 4. Refunding bonds. The commissioner may issue appropriation bonds for the
38.29purpose of refunding any appropriation bonds then outstanding, including the payment of
38.30any redemption premiums on the bonds, any interest accrued or to accrue to the redemption
38.31date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any
38.32refunding bonds may, in the discretion of the commissioner, be applied to the purchase or
38.33payment at maturity of the appropriation bonds to be refunded, to the redemption of the
38.34outstanding appropriation bonds on any redemption date, or to pay interest on the refunding
39.1bonds and may, pending application, be placed in escrow to be applied to the purchase,
39.2payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be
39.3invested and reinvested in obligations that are authorized investments under section 11A.24.
39.4The income earned or realized on the investment may also be applied to the payment of the
39.5appropriation bonds to be refunded or interest or premiums on the refunded appropriation
39.6bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been
39.7fully satisfied, any balance of the proceeds and any investment income may be returned to
39.8the general fund or, if applicable, the special appropriation Lewis and Clark bond proceeds
39.9fund for use in any lawful manner. All refunding bonds issued under this subdivision must
39.10be prepared, executed, delivered, and secured by appropriations in the same manner as the
39.11appropriation bonds to be refunded.
39.12    Subd. 5. Appropriation bonds as legal investments. Any of the following entities may
39.13legally invest any sinking funds, money, or other funds belonging to them or under their
39.14control in any appropriation bonds issued under this section:
39.15(1) the state, the investment board, public officers, municipal corporations, political
39.16subdivisions, and public bodies;
39.17(2) banks and bankers, savings and loan associations, credit unions, trust companies,
39.18savings banks and institutions, investment companies, insurance companies, insurance
39.19associations, and other persons carrying on a banking or insurance business; and
39.20(3) personal representatives, guardians, trustees, and other fiduciaries.
39.21    Subd. 6. No full faith and credit; state not required to make appropriations. The
39.22appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
39.23powers of the state are not pledged to the payment of the appropriation bonds or to any
39.24payment that the state agrees to make under this section. Appropriation bonds shall not be
39.25obligations paid directly, in whole or in part, from a tax of statewide application on any
39.26class of property, income, transaction, or privilege. Appropriation bonds shall be payable
39.27in each fiscal year only from amounts that the legislature may appropriate for debt service
39.28for any fiscal year, provided that nothing in this section shall be construed to require the
39.29state to appropriate money sufficient to make debt service payments with respect to the
39.30appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
39.31longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
39.32legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
39.33of final payment of the principal of and interest on the appropriation bonds.
40.1    Subd. 7. Appropriation of proceeds. (a) The proceeds of appropriation bonds issued
40.2under subdivision 2a and interest credited to the special appropriation Lewis and Clark bond
40.3proceeds fund are appropriated as follows:
40.4(1) to the commissioner Public Facilities Authority for a grant to the Lewis and Clark
40.5Joint Powers Board for payment of capital expenses for the purposes provided by as specified
40.6in subdivision 2, paragraph (a), 2a; and
40.7(2) to the commissioner for debt service on the bonds including capitalized interest,
40.8nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds and
40.9payments under any agreements entered into under subdivision 2, paragraph (e) (d), each
40.10as permitted by state and federal law, and such proceeds may be granted, loaned, or otherwise
40.11provided for the public purposes provided by subdivision 2, paragraph (a).
40.12(b) The proceeds of appropriation bonds issued under subdivision 2b and interest credited
40.13to the special appropriation Lewis and Clark bond proceeds fund are appropriated as follows:
40.14(1) to the Public Facilities Authority for a grant to the Lewis and Clark Joint Powers
40.15Board for payment of capital expenses as specified in subdivision 2b; and
40.16(2) to the commissioner for debt service on the bonds including capitalized interest,
40.17nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and
40.18payments under any agreements entered into under subdivision 2, paragraph (d), each as
40.19permitted by state and federal law.
40.20    Subd. 8. Appropriation for debt service and other purposes. (a) An amount, up to
40.21$1,351,000 needed to pay principal and interest on appropriation bonds issued under this
40.22section subdivision 2a is appropriated each fiscal year from the general fund to the
40.23commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
40.24otherwise pursuant to subdivision 6, for deposit into the bond payments account established
40.25for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
40.26appropriation is available beginning in fiscal year 2017 and through fiscal year 2038.
40.27(b) An amount up to $265,000 needed to pay principal and interest on appropriation
40.28bonds issued under subdivision 2b is appropriated each fiscal year from the general fund
40.29to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation,
40.30otherwise pursuant to subdivision 6, for deposit into the bond payments account established
40.31for such purpose in the special Lewis and Clark appropriation bond proceeds fund. The
40.32appropriation is available beginning in fiscal year 2018 and through fiscal year 2039.
41.1    Subd. 9. Waiver of immunity. The waiver of immunity by the state provided for by
41.2section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
41.3contracts to which the commissioner is a party.

41.4    Sec. 2. [16C.054] ACCOMMODATION FOR HARD-OF-HEARING IN
41.5STATE-FUNDED CAPITAL PROJECTS.
41.6    Subdivision 1. Definition. For purposes of this section, "public gathering space" means
41.7a space that is constructed or renovated as part of the project: (1) that accommodates and
41.8is intended to be used for gatherings of 15 or more people; and (2) in which audible
41.9communications are integral to a use of the space.
41.10    Subd. 2. Accommodation for hard-of-hearing in state-funded capital projects. No
41.11commissioner or agency head may approve a contract or grant state funds for a capital
41.12improvement project to construct or renovate a public gathering space in a building unless:
41.13(1) the project includes equipping the public gathering space, if the public gathering
41.14space has or will have a permanent audio-amplification system, with audio-induction loops
41.15to provide an electromagnetic signal for hearing aids and cochlear implants; and
41.16(2) the project includes meeting the American National Standards Institute Acoustical
41.17Performance Criteria, Design Requirements and Guidelines for Schools on maximum
41.18background noise level and reverberation times in the public gathering space.
41.19    Subd. 3. Exemption. A commissioner or agency head may approve a contract or grant
41.20state funds for a capital improvement project to construct or renovate a building that does
41.21not meet a requirement of subdivision 2, when the commissioner or agency head determines
41.22that meeting that requirement is not feasible, is in conflict with other requirements in law,
41.23is in conflict with other project requirements, or that costs outweigh the benefits. The
41.24commissioner must consult with the Commission of Deaf, Deafblind, and Hard-of-Hearing
41.25Minnesotans before making the determination.
41.26    Subd. 4. Exemption reports. A commissioner or agency head who determines a contract
41.27is exempt under subdivision 3 must report the exemption to the Commission of Deaf,
41.28Deafblind, and Hard-of-Hearing Minnesotans within three months of making the
41.29determination. The chair of the Commission of Deaf, Deafblind, and Hard-of-Hearing
41.30Minnesotans shall submit a report to the chairs and ranking minority members of the
41.31committees in the house of representatives and senate with jurisdiction over state contracting
41.32by January 30 of even-numbered years beginning in 2020 identifying each exemption
41.33reported in the previous two calendar years.
42.1EFFECTIVE DATE.(a) This section is effective the day following final enactment,
42.2and, except as provided in paragraph (b), applies to any project funded with an appropriation
42.3enacted after January 1, 2017.
42.4(b) This section does not apply to a project that has completed schematic design on the
42.5effective date of this section, but the commissioner and agency heads are encouraged to
42.6comply with it.

42.7    Sec. 3. Minnesota Statutes 2016, section 84.946, subdivision 2, is amended to read:
42.8    Subd. 2. Standards. (a) An appropriation for asset preservation may be used only for a
42.9capital expenditure on a capital asset previously owned by the state, within the meaning of
42.10generally accepted accounting principles as applied to public expenditures. The commissioner
42.11of natural resources will consult with the commissioner of management and budget to the
42.12extent necessary to ensure this and will furnish the commissioner of management and budget
42.13a list of projects to be financed from the account in order of their priority. The legislature
42.14assumes that many projects for preservation and replacement of portions of existing capital
42.15assets will constitute betterments and capital improvements within the meaning of the
42.16Constitution and capital expenditures under generally accepted accounting principles, and
42.17will be financed more efficiently and economically under this section than by direct
42.18appropriations for specific projects.
42.19(b) An appropriation for asset preservation must not be used to acquire land or to acquire
42.20or construct buildings or other facilities.
42.21(c) Capital budget expenditures for natural resource asset preservation and replacement
42.22projects must be for one or more of the following types of capital projects that support the
42.23existing programmatic mission of the department: code compliance including health and
42.24safety, Americans with Disabilities Act requirements, hazardous material abatement, access
42.25improvement, or air quality improvement; building energy efficiency improvements using
42.26current best practices; building or infrastructure repairs necessary to preserve the interior
42.27and exterior of existing buildings; projects to remove life safety hazards such as building
42.28code violations or structural defects; or renovation of other existing improvements to land,
42.29including but not limited to trails and bridges.
42.30(d) Up to ten percent of an appropriation awarded under this section may be used for
42.31design costs for projects eligible to be funded from this account in anticipation of future
42.32funding from the account.

43.1    Sec. 4. Minnesota Statutes 2016, section 85.34, subdivision 1, is amended to read:
43.2    Subdivision 1. Upper bluff; lease terms. The commissioner of natural resources with
43.3the approval of the Executive Council may lease for purposes of restoration, preservation,
43.4historical, recreational, educational, and commercial use and development, that portion of
43.5Fort Snelling State Park known as the upper bluff consisting of officer's row, area J, the
43.6polo grounds, the adjacent golf course, and all buildings and improvements located thereon,
43.7all lying within an area bounded by Minneapolis-St. Paul International Airport, Trunk
43.8Highways numbered 5 and 55, and Bloomington Road. The lease or leases shall be in a
43.9form approved by the attorney general and for a term of not to exceed 99 years. The lease
43.10or leases may provide for the provision of capital improvements or other performance by
43.11the tenant or tenants in lieu of all or some of the payments of rent that would otherwise be
43.12required. Notwithstanding the continuing ownership of the upper bluff by the state, any
43.13lease of one or more buildings improved with state general obligation bond proceeds that
43.14exceeds 50 years shall be treated as a sale of the buildings for purposes of section 16A.695,
43.15subdivision 3. Any disposition proceeds payable to the commissioner upon execution of a
43.16lease relating to state-bond-financed buildings at the upper bluff shall be applied according
43.17to section 16A.695, subdivision 3, and used to pay, redeem, or defease state general obligation
43.18bonds issued for purposes of improving those buildings. Any lease revenues paid to the
43.19commissioner subsequent to the payment, redemption, or defeasance of state general
43.20obligation bonds shall be used by the commissioner as further described in this section.

43.21    Sec. 5. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
43.22    Subd. 5. Certification and disbursal for project of political subdivision. Before
43.23disbursement of an appropriation made from the fund to the commissioner of transportation
43.24for grants to subdivisions of the state, the commissioner shall must certify that:
43.25(1) that the project for which the grant is made has been reviewed as provided in
43.26subdivision 4;
43.27(2) that the project conforms to the program authorized by the appropriation law and
43.28rules adopted by the Department of Transportation consistent therewith; and
43.29(3) that (2) the financing of any estimated cost of the project in excess of the amount of
43.30the grant is assured by the appropriation of the proceeds of bonds or other funds of the
43.31subdivision, or by a grant from an agency of the federal government, within the amount of
43.32funds then appropriated to that agency and allocated by it to projects within the state, and
43.33by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to
43.34use all funds so made available exclusively for the project, and to pay any additional amount
44.1by which the cost exceeds the estimate through appropriation to the construction fund of
44.2additional funds or the proceeds of additional bonds to be issued by the subdivision.

44.3    Sec. 6. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
44.4    Subd. 6b. Bridge costs in smaller cities. (a) The commissioner may make grants from
44.5the state transportation fund to a home rule or statutory city with a population of 5,000 or
44.6less for design, engineering, and construction of bridges on city streets.
44.7(b) Grants under this subdivision are subject to the procedures and criteria established
44.8under subdivisions 5, 6, and 7.
44.9(c) (b) Grants may be used for:
44.10(1) 100 percent of the design and engineering costs that are in excess of $10,000;
44.11(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
44.12(3) 100 percent of the bridge construction work costs.

44.13    Sec. 7. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
44.14    Subd. 6c. Fracture-critical bridges. (a) The commissioner may make a grant to any
44.15political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be
44.16eligible for a grant under this subdivision, the project must produce a bridge structure:
44.17(1) that is no longer classified as fracture critical, by having alternate load paths; and
44.18(2) whose failure of a main component will not result in the collapse of the bridge.
44.19(b) A grant under this subdivision is subject to the procedures and criteria established
44.20under subdivisions 5 and 6.

44.21    Sec. 8. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
44.22    Subd. 7. Bridge grant program; rulemaking. (a) The commissioner of transportation
44.23shall develop rules, procedures for application for grants, conditions of grant administration,
44.24standards, and criteria as provided under subdivision 6, including bridge specifications, in
44.25cooperation with road authorities of political subdivisions, for use in the administration of
44.26funds appropriated to the commissioner and for the administration of grants to subdivisions.
44.27Grants under this section are subject to the procedures and criteria established in this
44.28subdivision and in subdivisions 5 and 6.
44.29(b) The maximum use of standardized bridges is encouraged. Regardless of the size of
44.30the existing bridge, a bridge or replacement bridge is eligible for assistance from the state
45.1transportation fund if a hydrological survey indicates that the bridge or replacement bridge
45.2must be ten feet or more in length.
45.3(c) As part of the standards or rules, the commissioner shall, in consultation with local
45.4road authorities, establish a minimum distance between any two bridges that cross over the
45.5same river, stream, or waterway, so that only one of the bridges is eligible for a grant under
45.6this section. As appropriate, the commissioner may establish exceptions from the minimum
45.7distance requirement or procedures for obtaining a variance.
45.8(d) Political subdivisions may use grants made under this section to construct or
45.9reconstruct bridges, including but not limited to:
45.10(1) matching federal aid grants to construct or reconstruct key bridges;
45.11(2) paying the costs to abandon an existing bridge that is deficient and in need of
45.12replacement but where no replacement will be made; and
45.13(3) paying the costs to construct a road or street to facilitate the abandonment of an
45.14existing bridge if the commissioner determines that the bridge is deficient, and that
45.15construction of the road or street is more economical than replacement of the existing bridge.
45.16(e) Funds appropriated to the commissioner from the Minnesota state transportation
45.17fund shall be segregated from the highway tax user distribution fund and other funds created
45.18by article XIV of the Minnesota Constitution.
45.19(f) The commissioner is prohibited from awarding a grant under this section for a local
45.20bridge replacement or rehabilitation project with a total project cost estimate of $7,000,000
45.21or more.
45.22(g) Notwithstanding paragraph (f), the commissioner may award a grant under this
45.23section for a portion of a local bridge replacement or rehabilitation project with a total
45.24project cost estimate of $7,000,000 or more if every other local bridge replacement or
45.25rehabilitation project on the commissioner's priority list with a total project cost estimate
45.26of less than $7,000,000 has been fully funded.

45.27    Sec. 9. [219.016] HAZARDOUS MATERIALS RAIL SAFETY.
45.28    Subdivision 1. Program established. A hazardous materials rail safety program is
45.29established for the purpose of reducing the risks associated with the transportation of oil,
45.30ethanol, and other hazardous material by rail.
45.31    Subd. 2. Accounts established. Two hazardous materials rail safety program accounts
45.32are created, one in the special revenue fund and one in the bond proceeds fund. The account
46.1in the special revenue fund consists of money as provided by law, and any other money
46.2donated, allotted, transferred, or otherwise provided to the account. Money in each account
46.3is appropriated to the commissioner of transportation to make grants as provided in this
46.4section. Money in the accounts is available until spent, notwithstanding section 16A.28 or
46.516A.642.
46.6    Subd. 3. Eligible applicant. A county, statutory or home rule charter city, or town that
46.7is responsible for establishing and maintaining public highway-rail grade crossings on rail
46.8corridors transporting crude oil and other hazardous materials may apply to the commissioner
46.9for financial assistance under this section.
46.10    Subd. 4. Eligible project. (a) A project is eligible for a grant from the account in the
46.11bond proceeds fund if the project is for the acquisition or betterment of public land, buildings,
46.12and other public improvements of a capital nature within the meaning of the Minnesota
46.13Constitution, article XI, section 5, clause (a) or (i), including capital costs associated with
46.14hazardous materials rail safety projects on public highway-rail grade crossings. Qualifying
46.15capital costs include but are not limited to upgrades to existing protection systems, the
46.16closing of crossings and necessary roadwork, and reconstruction of at-grade crossings to
46.17full grade separations.
46.18(b) A project is eligible for a grant from the account in the special revenue fund if it is
46.19for purposes described in paragraph (a) or other capital facility improvement purposes that
46.20support the purposes for which this grant program is established, including capital costs
46.21associated with planning, engineering, administration, and construction of public highway-rail
46.22grade crossing improvements on rail corridors transporting crude oil and other hazardous
46.23materials. Improvements may include upgrades to existing protection systems, the closing
46.24of crossings and necessary roadwork, and reconstruction of at-grade crossings to full grade
46.25separations.
46.26    Subd. 5. Grants; criteria for grant award. The commissioner must consider the
46.27following criteria to evaluate applications for a grant award under this section:
46.28    (1) whether the crossing was identified as a potential candidate for grade separation in
46.29the Department of Transportation's crude by rail grade crossing study (Improvements to
46.30Highway Grade Crossings and Rail Safety, December 2014);
46.31    (2) roadway traffic volumes and speeds;
46.32    (3) train volumes and speeds;
46.33    (4) adjacent land use;
47.1    (5) crash history;
47.2    (6) use of the crossing by emergency vehicles;
47.3    (7) use of the crossing by vehicles carrying hazardous materials; and
47.4    (8) local financial contributions to the project.
47.5    Subd. 6. Process. The commissioner must develop forms and procedures for soliciting
47.6and reviewing applications for grants under this section. An applicant must apply for a grant
47.7in the manner and at the times determined by the commissioner. The grant agreement must
47.8be approved by the commissioner of management and budget and is subject to cancellation
47.9under subdivision 7.
47.10    Subd. 7. Grant cancellation. If the commissioner determines that a grantee is unable
47.11to proceed with an approved project or has not expended or obligated the grant money within
47.12four years of entering into the grant agreement with the commissioner, the commissioner
47.13must cancel the grant. Money canceled under this subdivision is available for the
47.14commissioner to make other grants under this section.

47.15    Sec. 10. Minnesota Statutes 2016, section 446A.072, is amended to read:
47.16446A.072 WASTEWATER WATER INFRASTRUCTURE FUNDING PROGRAM.
47.17    Subdivision 1. Establishment of program. The authority will establish a wastewater
47.18water infrastructure funding program to provide supplemental assistance to governmental
47.19units receiving funding through the clean water revolving fund program, the drinking water
47.20revolving fund program, or the United States Department of Agriculture Rural Economic
47.21and Community Development's (USDA/RECD) Water and Waste Disposal Loans and
47.22Grants program for the predesign, design, and construction of municipal wastewater treatment
47.23and drinking water systems, including purchase of land and easements. The purpose of the
47.24program is to assist governmental units demonstrating financial need to build cost-effective
47.25projects to address existing environmental or public health problems. To implement the
47.26program, the authority shall establish a wastewater water infrastructure fund to provide
47.27grants and loans for the purposes authorized under title VI of the Federal Water Pollution
47.28Control Act and the federal Safe Drinking Water Act. The fund shall be credited with all
47.29investment income from the fund and all repayments of loans, grants, and penalties.
47.30    Subd. 3. Program administration. (a) The authority shall provide supplemental
47.31assistance, as provided in subdivision 5a to governmental units:
48.1    (1) whose projects are listed on the Pollution Control Agency's project priority list or
48.2the Department of Health's project priority list;
48.3    (2) that demonstrate their projects are a cost-effective solution to an existing
48.4environmental or public health problem; and
48.5    (3) whose projects are approved by the USDA/RECD or certified by the commissioner
48.6of the Pollution Control Agency or the Department of Health.
48.7    (b) For a governmental unit receiving grant funding from the USDA/RECD, applications
48.8must be made to the USDA/RECD with additional information submitted to the authority
48.9as required by the authority. Eligible project costs and affordability criteria shall be
48.10determined by the USDA/RECD.
48.11    (c) For a governmental unit not receiving grant funding from the USDA/RECD,
48.12application must be made to the authority on forms prescribed by the authority for the clean
48.13water revolving fund program or the drinking water revolving fund program with additional
48.14information as required by the authority. In accordance with section 116.182, the Pollution
48.15Control Agency or Department of Health shall:
48.16    (1) calculate the essential project component percentage based on the portion of project
48.17costs necessary to convey or treat the existing wastewater flows and loadings or, for drinking
48.18water projects, to provide safe drinking water to meet existing needs, which must be
48.19multiplied by the total project cost to determine the eligible project cost for the program
48.20under this section; and
48.21    (2) review and certify approved projects to the authority.
48.22    (d) Each fiscal year the authority shall make funds available for projects based on their
48.23ranking on the Pollution Control Agency's project priority list or the Department of Health's
48.24project priority list. The authority shall reserve funds for a project when the applicant receives
48.25a funding commitment from the United States Department of Agriculture Rural Development
48.26(USDA/RECD) or submits plans and specifications to the project is certified by the Pollution
48.27Control Agency or Department of Health. Funds must be reserved in an amount based on
48.28the project cost estimate submitted to the authority prior to the appropriation of the funds
48.29and awarded based on the lesser of that amount or the as-bid cost when the project is certified
48.30or the as-bid cost, whichever is less.
48.31    Subd. 5a. Type and amount of assistance. (a) For a governmental unit receiving grant
48.32funding from the USDA/RECD, the authority may provide assistance in the form of a grant
48.33of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental
49.1unit may not receive a grant under this paragraph for more than $4,000,000 $5,000,000 per
49.2project or $15,000 $20,000 per existing connection, whichever is less, unless specifically
49.3approved by law.
49.4    (b) For a governmental unit receiving a loan from the clean water revolving fund under
49.5section 446A.07, the authority may provide assistance under this section in the form of a
49.6grant if the average annual residential wastewater system cost after completion of the project
49.7would otherwise exceed 1.4 percent of the median household income of the project service
49.8area. In determining whether the average annual residential wastewater system cost would
49.9exceed 1.4 percent, the authority must consider the total costs associated with building,
49.10operating, and maintaining the wastewater system, including existing wastewater debt
49.11service, debt service on the eligible project cost, and operation and maintenance costs. Debt
49.12service costs for the proposed project are calculated based on the maximum loan term
49.13permitted for the clean water revolving fund loan under section 446A.07, subdivision 7.
49.14The amount of the grant is equal to 80 percent of the amount needed to reduce the average
49.15annual residential wastewater system cost to 1.4 percent of median household income in
49.16the project service area, to a maximum of $4,000,000 $5,000,000 per project or $15,000
49.17$20,000 per existing connection, whichever is less, unless specifically approved by law.
49.18The eligible project cost is determined by multiplying the total project costs minus any other
49.19grants by the essential project component percentage calculated under subdivision 3,
49.20paragraph (c), clause (1). In no case may the amount of the grant exceed 80 percent of the
49.21eligible project cost.
49.22(c) For a governmental unit receiving a loan from the drinking water revolving fund
49.23under section 446A.081, the authority may provide assistance under this section in the form
49.24of a grant if the average annual residential drinking water system cost after completion of
49.25the project would otherwise exceed 1.2 percent of the median household income of the
49.26project service area. In determining whether the average annual residential drinking water
49.27system cost would exceed 1.2 percent, the authority must consider the total costs associated
49.28with building, operating, and maintaining the drinking water system, including existing
49.29drinking water debt service, debt service on the eligible project cost, and operation and
49.30maintenance costs. Debt service costs for the proposed project are calculated based on the
49.31maximum loan term permitted for the drinking water revolving fund loan under section
49.32446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of
49.33the amount needed to reduce the average annual residential drinking water system cost to
49.341.2 percent of median household income in the project service area, to a maximum of
49.35$5,000,000 per project or $20,000 per existing connection, whichever is less, unless
50.1specifically approved by law. The eligible project cost is determined by multiplying the
50.2total project costs minus any other grants by the essential project component percentage
50.3calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the
50.4grant exceed 80 percent of the eligible project cost.
50.5    (c) (d) Notwithstanding the limits in paragraphs (a) and, (b), and (c), for a governmental
50.6unit receiving supplemental assistance under this section after January 1, 2002, if the authority
50.7determines that the governmental unit's construction and installation costs are significantly
50.8increased due to geological conditions of crystalline bedrock or karst areas and discharge
50.9limits that are more stringent than secondary treatment, the maximum award under this
50.10section shall not be more than $25,000 per existing connection.
50.11    Subd. 5b. Special assessment deferral. A governmental unit receiving a loan under
50.12subdivision 5a that levies special assessments to repay the loan under subdivision 5a or
50.13section 446A.07 may defer payment of such assessments under the provisions of sections
50.14435.193 to 435.195.
50.15    Subd. 6. Disbursements. Disbursements of grants or loans awarded under this section
50.16by the authority to recipients must be made for eligible project costs as incurred by the
50.17recipients, and must be made by the authority in accordance with the project financing
50.18agreement and applicable state and federal laws and rules governing the payments.
50.19    Subd. 7. Loan repayments. Notwithstanding the limitations set forth in section 475.54,
50.20subdivision 1, this subdivision shall govern the maturities and mandatory sinking fund
50.21redemptions of the loans under this section. A governmental unit receiving a loan under
50.22this section shall repay the loan in semiannual payment amounts determined by the authority.
50.23The payment amount must be based on the average payments on the governmental unit's
50.24clean water revolving fund loan or, if greater, the minimum amount required to fully repay
50.25the loan by the maturity date. Payments must begin within one year of the date of the
50.26governmental unit's final payment on the clean water revolving fund loan. The final maturity
50.27date of the loan under this section must be no later than 20 years from the date of the first
50.28payment on the loan under this section and no later than 40 years from the date of the first
50.29payment on the clean water revolving fund loan.
50.30    Subd. 8. Eligibility. A governmental unit is eligible for assistance under this section
50.31only after applying for grant funding from other sources and funding has been obtained,
50.32rejected, or the authority has determined that the potential funding is unlikely.
50.33    Subd. 9. Funding limitation. Supplemental assistance may not be used to reduce the
50.34sewer service charges of a significant wastewater contributor industrial user that has a
51.1separate service charge agreement with the recipient, or a single user that has caused the
51.2need for the project or whose current or projected flow and load exceed usage exceeds
51.3one-half of the current wastewater treatment plant's or drinking water system capacity.
51.4    Subd. 11. Report on needs. By February 1 of each even-numbered year, the authority,
51.5in conjunction with the Pollution Control Agency and the Department of Health, shall
51.6prepare a report to the Finance Division of the senate Environment and Natural Resources
51.7Committee and the house of representatives Environment and Natural Resources Finance
51.8Committee on wastewater and drinking water funding assistance needs of governmental
51.9units under this section.
51.10    Subd. 12. System replacement fund. Each governmental unit receiving a loan or grant
51.11under this section shall establish a system replacement fund and shall annually deposit a
51.12minimum of $.50 per 1,000 gallons of flow for major rehabilitation or, expansion, or
51.13replacement of the treatment wastewater or drinking water system, or replacement of the
51.14treatment system at the end of its useful life. Money must remain in the account for the life
51.15of the corresponding project loan from the authority or USDA/RECD, unless use of the
51.16fund is approved in writing by the authority for major rehabilitation, expansion, or
51.17replacement of the treatment wastewater or drinking water system. By March 1 each year
51.18during the life of the loan, each recipient shall submit a report to the authority regarding the
51.19amount deposited and the fund balance for the prior calendar year. A recipient is not required
51.20to maintain a fund balance greater than the amount of the grant received. Failure to comply
51.21with the requirements of this subdivision shall result in the authority assessing a penalty
51.22fee to the recipient equal to one percent of the supplemental assistance amount for each
51.23year of noncompliance. Failure to make the required deposit or pay the penalty fee as
51.24required constitutes a default on the loan.
51.25    Subd. 14. Consistency with land use plans. A governmental unit applying for a project
51.26in an unsewered area shall include in its application to the authority a certification from the
51.27county in which the project is located that:
51.28(1) the project is consistent with the county comprehensive land use plan, if the county
51.29has adopted one;
51.30(2) the project is consistent with the county water plan, if the county has adopted one;
51.31and
51.32(3) the county has adopted specific land use ordinances or controls so as to meet or
51.33exceed the requirements of Minnesota Rules, part 7082.0050.

52.1    Sec. 11. Minnesota Statutes 2016, section 446A.073, is amended to read:
52.2446A.073 POINT SOURCE IMPLEMENTATION GRANTS.
52.3    Subdivision 1. Program established. When money is appropriated for grants under this
52.4program, the authority shall award grants up to a maximum of $3,000,000 $7,000,000 to
52.5governmental units to cover up to one-half 80 percent of the cost of water infrastructure
52.6projects made necessary by:
52.7(1) a wasteload reduction prescribed under a total maximum daily load plan required by
52.8section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
52.9(2) a phosphorus concentration or mass limit which requires discharging one milligram
52.10per liter or less at permitted design flow which is incorporated into a permit issued by the
52.11Pollution Control Agency;
52.12(3) any other water quality-based effluent limit established under section 115.03,
52.13subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution
52.14Control Agency that exceeds secondary treatment limits; or
52.15(4) a total nitrogen concentration or mass limit of that requires discharging ten milligrams
52.16per liter or less for a land-based treatment system at permitted design flow.
52.17    Subd. 2. Grant application. Application for a grant must be made to the authority on
52.18forms prescribed by the authority for the total maximum daily load grant program, with
52.19additional information as required by the authority, including a project schedule and cost
52.20estimate for the work necessary to comply with the point source wasteload allocation
52.21requirements listed in subdivision 1. The Pollution Control Agency shall:
52.22(1) in accordance with section 116.182, calculate the essential project component
52.23percentage, which must be multiplied by the total project cost to determine the eligible
52.24project cost; and
52.25(2) review and certify to the authority those projects that have plans and specifications
52.26approved under section 115.03, subdivision 1, paragraph (f).
52.27    Subd. 3. Project priorities. When money is appropriated for grants under this program,
52.28The authority shall accept applications under this program during the month of July and.
52.29When a project is certified by the Pollution Control Agency the authority shall reserve
52.30money for projects expected to proceed with construction by the end of the fiscal year the
52.31project in the order listed on the Pollution Control Agency's project priority list and in an
52.32amount based on the cost estimate submitted to the authority in the grant application when
52.33the project is certified or the as-bid costs, whichever is less. Notwithstanding Minnesota
53.1Rules, chapter 7077, the Pollution Control Agency may rank a drinking water infrastructure
53.2project on the agency's project priority list if the project is necessary to meet an applicable
53.3requirement in subdivision 1.
53.4    Subd. 4. Grant approval. The authority must make a grant for an eligible project only
53.5after:
53.6(1) the applicant has submitted the as-bid cost for the water infrastructure project;
53.7(2) the Pollution Control Agency has approved the as-bid costs and certified the grant
53.8eligible portion of the project; and
53.9(3) the authority has determined that the additional financing necessary to complete the
53.10project has been committed from other sources.
53.11    Subd. 5. Grant disbursement. Disbursement of a grant must be made for eligible project
53.12costs as incurred by the governmental unit and in accordance with a project financing
53.13agreement and applicable state and federal laws and rules governing the payments.

53.14    Sec. 12. Minnesota Statutes 2016, section 446A.081, subdivision 9, is amended to read:
53.15    Subd. 9. Other uses of fund. (a) The drinking water revolving loan fund may be used
53.16as provided in the act, including the following uses:
53.17(1) to buy or refinance the debt obligations, at or below market rates, of public water
53.18systems for drinking water systems, where the debt was incurred after the date of enactment
53.19of the act, for the purposes of construction of the necessary improvements to comply with
53.20the national primary drinking water regulations under the federal Safe Drinking Water Act;
53.21(2) to purchase or guarantee insurance for local obligations to improve credit market
53.22access or reduce interest rates;
53.23(3) to provide a source of revenue or security for the payment of principal and interest
53.24on revenue or general obligation bonds issued by the authority if the bond proceeds are
53.25deposited in the fund;
53.26(4) to provide loans or loan guarantees for similar revolving funds established by a
53.27governmental unit or state agency;
53.28(5) to earn interest on fund accounts;
53.29(6) to pay the reasonable costs incurred by the authority, the Department of Employment
53.30and Economic Development, and the Department of Health for conducting activities as
53.31authorized and required under the act up to the limits authorized under the act;
54.1(7) to develop and administer programs for water system supervision, source water
54.2protection, and related programs required under the act;
54.3(8) notwithstanding Minnesota Rules, part 7380.0280, to provide principal forgiveness
54.4or grants to the extent permitted under the federal Safe Drinking Water Act and other federal
54.5law, based on the criteria and requirements established for drinking water projects under
54.6the water infrastructure funding program under section 446A.072;
54.7(9) to provide loans, principal forgiveness or grants to the extent permitted under the
54.8federal Safe Drinking Water Act and other federal law to address green infrastructure, water
54.9or energy efficiency improvements, or other environmentally innovative activities; and
54.10(10) to provide principal forgiveness, or grants for 50 percent of the project cost up to
54.11a maximum of $10,000 for projects needed to comply with national primary drinking water
54.12standards for an existing community or noncommunity public water system.
54.13(b) Principal forgiveness or grants under paragraph (a), clause (8), must only be provided
54.14if the average annual residential drinking water system cost after completion of the project
54.15would otherwise exceed 1.2 percent of the median household income in the project service
54.16area. In determining whether the average annual residential drinking water system cost
54.17would exceed 1.2 percent, the authority must consider the total costs associated with building,
54.18operating, and maintaining the drinking water system, including debt service and operation
54.19and maintenance costs. Debt service costs for the proposed project must be calculated based
54.20on the maximum loan term permitted for the drinking water revolving fund loan under this
54.21section. The amount of the principal forgiveness or grant must be equal to 80 percent of the
54.22amount needed to reduce the average annual residential drinking water system cost to 1.2
54.23percent of median household income in the project service area, to a maximum of $4,000,000
54.24or $15,000 per connection, whichever is less, and not to exceed 80 percent of the total project
54.25cost.
54.26(c) (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not
54.27exceed 25 percent of the eligible project costs as determined by the Department of Health
54.28for project components directly related to green infrastructure, water or energy efficiency
54.29improvements, or other environmentally innovative activities, up to a maximum of
54.30$1,000,000.
54.31(d) The authority may reduce the percentage of median household income at which a
54.32loan term could extend to 30 years under subdivision 8, paragraph (c), and at which principal
54.33forgiveness or grants could be provided under paragraph (b) if it determines that the federal
54.34money allotted to the state cannot be fully utilized without the reduction. If it determines
55.1that the reduction is necessary to fully utilize the federal money, the authority must effect
55.2the change through its approval of the annual intended use plan.

55.3    Sec. 13. Minnesota Statutes 2016, section 446A.12, subdivision 1, is amended to read:
55.4    Subdivision 1. Bonding authority. The authority may issue negotiable bonds in a
55.5principal amount that the authority determines necessary to provide sufficient funds for
55.6achieving its purposes, including the making of loans and purchase of securities, the payment
55.7of interest on bonds of the authority, the establishment of reserves to secure its bonds, the
55.8payment of fees to a third party providing credit enhancement, and the payment of all other
55.9expenditures of the authority incident to and necessary or convenient to carry out its corporate
55.10purposes and powers, but not including the making of grants. Bonds of the authority may
55.11be issued as bonds or notes or in any other form authorized by law. The principal amount
55.12of bonds issued and outstanding under this section at any time may not exceed
55.13$1,500,000,000 $2,000,000,000, excluding bonds for which refunding bonds or crossover
55.14refunding bonds have been issued, and excluding any bonds issued for the credit enhanced
55.15bond program or refunding or crossover refunding bonds issued under the program. The
55.16principal amount of bonds issued and outstanding under section 446A.087, may not exceed
55.17$500,000,000, excluding bonds for which refunding bonds or crossover refunding bonds
55.18have been issued.

55.19    Sec. 14. Minnesota Statutes 2016, section 462A.37, subdivision 2a, is amended to read:
55.20    Subd. 2a. Additional authorization. In addition to the amount authorized in subdivision
55.212, the agency may issue up to $80,000,000 $95,000,000 of housing infrastructure bonds in
55.22one or more series to which the payments made under this section may be pledged.

55.23    Sec. 15. Minnesota Statutes 2016, section 462A.37, subdivision 2b, is amended to read:
55.24    Subd. 2b. Additional authorization. In addition to the amount authorized in subdivisions
55.252 and 2a, the agency may issue up to $10,000,000 $15,000,000 of housing infrastructure
55.26bonds in one or more series to which the payments made under this section may be pledged.

55.27    Sec. 16. Minnesota Statutes 2016, section 462A.37, is amended by adding a subdivision
55.28to read:
55.29    Subd. 2c. Additional authorization. In addition to the amount authorized in subdivisions
55.302, 2a, and 2b, the agency may issue up to $35,000,000 in housing infrastructure bonds in
55.31one or more series to which the payments under this section may be pledged.

56.1    Sec. 17. Minnesota Statutes 2016, section 462A.37, subdivision 5, is amended to read:
56.2    Subd. 5. Additional appropriation. (a) The agency must certify annually to the
56.3commissioner of management and budget the actual amount of annual debt service on each
56.4series of bonds issued under subdivisions 2a and, 2b, and 2c.
56.5(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
56.6bonds issued under subdivision 2a remain outstanding, the commissioner of management
56.7and budget must transfer to the housing infrastructure bond account established under section
56.8462A.21, subdivision 33 , the amount certified under paragraph (a), not to exceed $6,400,000
56.9annually. The amounts necessary to make the transfers are appropriated from the general
56.10fund to the commissioner of management and budget.
56.11(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
56.12bonds issued under subdivision 2b remain outstanding, the commissioner of management
56.13and budget must transfer to the housing infrastructure bond account established under section
56.14462A.21, subdivision 33 , the amount certified under paragraph (a), not to exceed $800,000
56.15annually. The amounts necessary to make the transfers are appropriated from the general
56.16fund to the commissioner of management and budget.
56.17(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure
56.18bonds issued under subdivision 2c remain outstanding, the commissioner of management
56.19and budget must transfer to the housing infrastructure bond account established under section
56.20462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $1,250,000
56.21in fiscal year 2018 and $2,800,000 annually thereafter. The amounts necessary to make the
56.22transfers are appropriated from the general fund to the commissioner of management and
56.23budget.
56.24(e) The agency may pledge to the payment of the housing infrastructure bonds the
56.25payments to be made by the state under this section.

56.26    Sec. 18. Laws 2006, chapter 258, section 18, subdivision 6, as amended by Laws 2013,
56.27chapter 136, section 13, is amended to read:
56.28
56.29
Subd. 6.Systemwide Redevelopment, Reuse, or
Demolition
5,000,000
56.30To abate hazardous materials, design,
56.31construct, or improve basic infrastructure,
56.32including sanitary and storm sewer and water
56.33lines, public streets, curb, gutter, street lights,
57.1or sidewalks, to make improvements for
57.2building envelope and structural integrity for
57.3the purposes of stabilizing the buildings for
57.4sale, demolish all or portions of surplus,
57.5nonfunctional, or deteriorated facilities and
57.6infrastructure or to renovate surplus,
57.7nonfunctional, or deteriorated facilities and
57.8infrastructure to facilitate redevelopment of
57.9Department of Human Services campuses that
57.10the commissioner of administration is
57.11authorized to convey to a local unit of
57.12government under Laws 2005, chapter 20,
57.13article 1, section 46, or other law. These
57.14projects must facilitate the redevelopment or
57.15reuse of these campuses and must be
57.16implemented consistent with the
57.17comprehensive redevelopment plans
57.18developed and approved under Laws 2003,
57.19First Special Session chapter 14, article 6,
57.20section 64, subdivision 2, unless expressly
57.21provided otherwise. If a surplus campus is sold
57.22or transferred to a local unit of government,
57.23unspent portions of this appropriation may be
57.24granted to that local unit of government for
57.25the purposes stated in this subdivision.
57.26Notwithstanding the inclusion of the
57.27unencumbered and unobligated balance of the
57.28bond sale authorization and appropriation of
57.29bond proceeds in this subdivision in the report
57.30submitted to the legislature in January 2017
57.31pursuant to Minnesota Statutes, section
57.3216A.642 , the unencumbered and obligated
57.33balance of the bond sale authorization and
57.34appropriation of bond proceeds in this
57.35subdivision are, estimated to be $1,991,456.32,
58.1is reauthorized and available until December
58.231, 2016 2020.

58.3    Sec. 19. Laws 2012, chapter 293, section 7, subdivision 3, is amended to read:
58.4
58.5
Subd. 3.Dam Repair, Reconstruction, and
Removal
3,000,000
58.6To renovate or remove publicly owned dams.
58.7The commissioner shall determine project
58.8priorities as appropriate under Minnesota
58.9Statutes, sections 103G.511 and 103G.515.
58.10Notwithstanding the match requirements in
58.11Minnesota Statutes, section 103G.511, a grant
58.12to the city of Lanesboro does not require any
58.13nonstate match.

58.14    Sec. 20. Laws 2012, chapter 293, section 17, subdivision 4, is amended to read:
58.15
Subd. 4.Phillips Community Center
1,750,000
58.16For a grant to the Minneapolis Park and
58.17Recreation Board to predesign, design,
58.18engineer, reconstruct, renovate, furnish, and
58.19equip the Phillips Community Center indoor
58.20competitive swimming pool and to predesign,
58.21design, engineer, and construct an additional
58.22indoor multipurpose family pool and facilities
58.23associated with an aquatic center in the
58.24community center, subject to Minnesota
58.25Statutes, section 16A.695.
58.26This appropriation is not available until the
58.27commissioner determines that at least
58.28$350,000 is committed from nonstate sources.
58.29Notwithstanding Minnesota Statutes, section
58.3016A.642, the bond sale authorization and
58.31appropriation of bond proceeds for this project
58.32are available until December 31, 2022.

59.1    Sec. 21. Laws 2014, chapter 294, article 1, section 17, subdivision 12, is amended to read:
59.2
59.3
Subd. 12.West St. Paul - North Urban River to
River Regional Trail Bridge Greenway
2,000,000
59.4For a grant to the city of West St. Paul to
59.5predesign, design, and construct a pedestrian
59.6bridge for the North Urban Regional Trail as
59.7an overpass grade separated crossing of Robert
59.8Street in the area near Wentworth Avenue in
59.9West St. Paul for the River to River Regional
59.10Greenway. This appropriation may also be
59.11used to acquire property or purchase
59.12rights-of-way needed for bridge construction.
59.13A nonstate match is not required.

59.14    Sec. 22. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 3,
59.15is amended to read:
59.16
Subd. 3.Local Road Improvement Fund Grants
8,910,000
59.17(a) From the bond proceeds account in the
59.18state transportation fund as provided in
59.19Minnesota Statutes, section 174.50, for
59.20construction and reconstruction of local roads
59.21with statewide or regional significance under
59.22Minnesota Statutes, section 174.52,
59.23subdivision 4
, or for grants to counties to assist
59.24in paying the costs of rural road safety capital
59.25improvement projects on county state-aid
59.26highways under Minnesota Statutes, section
59.27174.52, subdivision 4a .
59.28(b) This appropriation includes $850,000 for
59.29a grant to the city of Sandstone for predesign,
59.30design, engineering, and construction of a road
59.31extending south off of marked Trunk Highway
59.3223 across from Lundorff Drive to the airport
59.33area, and including a bridge over Skunk Creek
59.34in Sandstone, in order to facilitate repurposing
60.1of an area of the airport into a business park.
60.2This appropriation is not available until the
60.3commissioner of management and budget
60.4determines that sufficient resources to
60.5complete the project are committed to it from
60.6other sources, including any funds made
60.7available from the commissioner of
60.8transportation.
60.9(c) This appropriation includes $3,770,000 for
60.10a grant to Kandiyohi County for construction
60.11and reconstruction of local roads to facilitate
60.12the construction of highway-rail grade
60.13separations at U.S. Highway 12 and Minnesota
60.14Highway 40 as part of in conjunction with the
60.15Willmar Wye project as well as to re-establish
60.16the local road network on the southwest side
60.17of Willmar.

60.18    Sec. 23. Laws 2015, First Special Session chapter 5, article 1, section 10, subdivision 7,
60.19is amended to read:
60.20
Subd. 7.Richfield - 77th Street Underpass
10,000,000
60.21For a grant to the city of Richfield for
60.22right-of-way acquisition and construction of
60.23for an extension of 77th Street under marked
60.24Trunk Highway 77/Cedar Avenue in the city
60.25of Richfield to provide local and regional
60.26access between Richfield, the Minneapolis/St.
60.27Paul International Airport, the city of
60.28Bloomington, and the Mall of America. After
60.29right-of-way acquisition is completed, the city
60.30may use any remaining money appropriated
60.31in this subdivision for construction of the
60.32extension. Notwithstanding Minnesota
60.33Statutes, section 16A.642, the bond sale
60.34authorization and appropriation of bond
61.1proceeds for the project in this subdivision are
61.2available until December 31, 2021.

61.3    Sec. 24. NATIONAL SPORTS CENTER; LEASE.
61.4Notwithstanding Minnesota Statutes, sections 16A.695, 16B.24, and 240A.03, subdivision
61.56, the Minnesota Amateur Sports Commission may lease for educational purposes that
61.6portion of property described as a portion of the property acquired by the commission
61.7pursuant to Laws 1987, chapter 400, section 8, subdivision 3, not currently needed for
61.8amateur sports purposes to Independent School District No. 16, Spring Lake Park. The lease
61.9shall be in a form approved by the attorney general and for a term not to exceed 99 years.
61.10The lease may provide for the provision of capital improvements or other performance by
61.11the tenant in lieu of all or some of the payments of rent that would otherwise be required.
61.12Any lease revenues paid to the commission are appropriated to the commission.

61.13    Sec. 25. REVISOR'S INSTRUCTION.
61.14In Minnesota Statutes, the revisor of statutes shall replace references to Minnesota
61.15Statutes, section 123A.446, with Minnesota Statutes, section 123A.445.

61.16    Sec. 26. REPEALER.
61.17Minnesota Statutes 2016, section 123A.446, is repealed.

61.18    Sec. 27. EFFECTIVE DATE.
61.19Except as otherwise provided, this article is effective the day following final enactment."
61.20Delete the title and insert:
61.21"A bill for an act
61.22relating to capital investment; authorizing spending to acquire and better public
61.23land and buildings and other improvements of a capital nature with certain
61.24conditions; modifying previous appropriations; establishing new programs and
61.25modifying existing programs; authorizing the sale and issuance of state bonds;
61.26appropriating money;amending Minnesota Statutes 2016, sections 16A.967;
61.2784.946, subdivision 2; 85.34, subdivision 1; 174.50, subdivisions 5, 6b, 6c, 7;
61.28446A.072; 446A.073; 446A.081, subdivision 9; 446A.12, subdivision 1; 462A.37,
61.29subdivisions 2a, 2b, 5, by adding a subdivision; Laws 2006, chapter 258, section
61.3018, subdivision 6, as amended; Laws 2012, chapter 293, sections 7, subdivision
61.313; 17, subdivision 4; Laws 2014, chapter 294, article 1, section 17, subdivision
61.3212; Laws 2015, First Special Session chapter 5, article 1, section 10, subdivisions
61.333, 7; proposing coding for new law in Minnesota Statutes, chapters 16C; 219;
61.34repealing Minnesota Statutes 2016, section 123A.446."