1.1 A bill for an act
1.2 relating to capital investment; authorizing spending to acquire and better public
1.3 land and buildings and for other improvements of a capital nature with certain
1.4 conditions; establishing new programs and modifying existing programs; modifying
1.5 prior appropriations; authorizing the sale and issuance of state bonds; appropriating
1.6 money; amending Minnesota Statutes 2024, sections 142A.46, subdivision 1;
1.7 473.5491, subdivisions 1, 2, 4; Laws 2023, chapter 71, article 1, section 14,
1.8 subdivision 21; proposing coding for new law in Minnesota Statutes, chapters
1.9 16B; 115B; 446A; repealing Minnesota Statutes 2024, sections 16A.662; 116J.417,
1.10 subdivision 9.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 ARTICLE 1
1.13 APPROPRIATIONS
1.14Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
1.15 (a) The sums shown in the column under "Appropriations" are appropriated from the
1.16bond proceeds fund, or another named fund, to the state agencies or officials indicated, to
1.17be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
1.18by the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public
1.19land and buildings and other public improvements of a capital nature, or as authorized by
1.20the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless
1.21otherwise specified, money appropriated in this act:
1.22 (1) may be used to pay state agency staff costs that are attributed directly to the capital
1.23program or project in accordance with accounting policies adopted by the commissioner of
1.24management and budget;
1Article 1 Section 1.
REVISOR JSK/VJ 25-0318902/06/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2485
NINETY-FOURTH SESSION
Authored by Lee, F.,03/17/2025
The bill was read for the first time and referred to the Committee on Capital Investment 2.1 (2) is available until the project is completed or abandoned subject to Minnesota Statutes,
2.2section 16A.642;
2.3 (3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
2.4should not be used for projects that can be financed within a reasonable time frame under
2.5Minnesota Statutes, section 16B.322 or 16C.144;
2.6 (4) is subject to the policies and procedures adopted by the commissioner of management
2.7and budget or otherwise specified in applicable law; and
2.8 (5) is available for a grant to a political subdivision after the commissioner of management
2.9and budget determines that an amount sufficient to complete the project as described in this
2.10act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
2.11 (b) Unless otherwise specified, appropriations in this article from the general fund or
2.12from the trunk highway fund are made in fiscal year 2026 and are onetime appropriations.
2.13 (c) Recipients of grants from money appropriated in this article must demonstrate to the
2.14commissioner of the agency making the grant that the recipient has the ability and a plan
2.15to fund the program intended for the facility. This paragraph does not apply to state agencies.
2.16 APPROPRIATIONS
2.17Sec. 2. UNIVERSITY OF MINNESOTA
40,000,000$2.18Subdivision 1.Total Appropriation
2.19To the Board of Regents of the University of
2.20Minnesota for the purposes specified in this
2.21section.
40,000,000
2.22Subd. 2.Higher Education Asset Preservation
2.23and Replacement (HEAPR)
2.24To be spent in accordance with Minnesota
2.25Statutes, section 135A.046.
2.26This appropriation must be used to fully fund
2.27improvements and betterments of a capital
2.28nature required to complete the following
2.29projects:
2.30(1) critical utility infrastructure improvements
2.31for the heating plant on the Crookston campus;
2Article 1 Sec. 2.
REVISOR JSK/VJ 25-0318902/06/25 3.1(2) the repair or replacement of the HVAC
3.2system in the Library Annex facility on the
3.3Duluth campus and other capital
3.4improvements to comply with federal, state,
3.5and local building code requirements;
3.6(3) improvements to the Multi-Ethnic
3.7Resource Center, originally constructed in
3.81899, on the Morris campus; and
3.9(4) the replacement of the pedestrian enclosure
3.10and suicide deterrent barriers on the
3.11Washington Avenue Pedestrian Bridge on the
3.12Twin Cities campus. The board must consult
3.13with persons impacted by suicide at this
3.14bridge, suicide prevention organizations, and
3.15experts in the field of suicide prevention in
3.16designing the project.
3.17Sec. 3. MINNESOTA STATE COLLEGES AND
3.18UNIVERSITIES
40,000,000$3.19Subdivision 1.Total Appropriation
3.20To the Board of Trustees of the Minnesota
3.21State Colleges and Universities for the
3.22purposes specified in this section.
40,000,000
3.23Subd. 2.Higher Education Asset Preservation
3.24and Replacement (HEAPR)
3.25To be spent in accordance with Minnesota
3.26Statutes, section 135A.046.
177,149,000$3.27Sec. 4. EDUCATION
3.28(a) To the commissioner of education for
3.29library construction grants under Minnesota
3.30Statutes, section 134.45.
3.31(b) Of this amount, $1,000,000 is for a grant
3.32to the city of Clara City to predesign, design,
3.33construct, furnish, and equip a new library
3.34building.
3Article 1 Sec. 4.
REVISOR JSK/VJ 25-0318902/06/25 4.1Sec. 5. MINNESOTA STATE ACADEMIES
1,227,000$4.2Subdivision 1.Total Appropriation
4.3To the commissioner of administration for the
4.4purposes specified in this section.
1,227,0004.5Subd. 2.Asset Preservation
4.6For capital asset preservation improvements
4.7and betterments on both campuses of the
4.8Minnesota State Academies, to be spent in
4.9accordance with Minnesota Statutes, section
4.1016B.307.
1,000,000$
4.11Sec. 6. PERPICH CENTER FOR ARTS
4.12EDUCATION
4.13To the commissioner of administration for
4.14capital asset preservation improvements and
4.15betterments at the Perpich Center for Arts
4.16Education, to be spent in accordance with
4.17Minnesota Statutes, section 16B.307.
4.18Sec. 7. NATURAL RESOURCES
58,400,000$4.19Subdivision 1.Total Appropriation
4.20(a) To the commissioner of natural resources
4.21for the purposes specified in this section.
4.22(b) The appropriations in this section are
4.23subject to the requirements of the natural
4.24resources capital improvement program under
4.25Minnesota Statutes, section 86A.12, unless
4.26this section or the statutes referred to in this
4.27section provide more specific standards,
4.28criteria, or priorities for projects than
4.29Minnesota Statutes, section 86A.12.
15,000,0004.30Subd. 2.Natural Resources Asset Preservation
4.31For the preservation and replacement of
4.32state-owned facilities and recreational assets
4.33operated by the commissioner of natural
4Article 1 Sec. 7.
REVISOR JSK/VJ 25-0318902/06/25 5.1resources to be spent in accordance with
5.2Minnesota Statutes, section 84.946.
18,000,0005.3Subd. 3.Badoura State Forest Nursery
5.4To predesign, design, and construct facility
5.5capital improvements and associated facility
5.6components at the Badoura State Forest
5.7Nursery.
2,000,0005.8Subd. 4.Accessibility
5.9For the design and construction of accessibility
5.10improvements at state parks, recreation areas,
5.11and wildlife management areas.
5,000,0005.12Subd. 5.Flood Hazard Mitigation
5.13(a) For the state share of flood hazard
5.14mitigation grants for publicly owned capital
5.15improvements to prevent or alleviate flood
5.16damage under Minnesota Statutes, section
5.17103F.161.
5.18(b) Project priorities shall be determined by
5.19the commissioner as appropriate, based on
5.20need and consideration of available leveraging
5.21of federal, state, and local funds.
5.22(c) To the extent practicable and consistent
5.23with the project, recipients of appropriations
5.24for flood control projects in this subdivision
5.25shall create wetlands that are eligible for
5.26wetland replacement credit to replace wetlands
5.27drained or filled as the result of repair,
5.28reconstruction, replacement, or rehabilitation
5.29of an existing public road under Minnesota
5.30Statutes, section 103G.222, subdivision 1,
5.31paragraphs (l) and (m).
5.32(d) To the extent that the cost of a municipal
5.33project exceeds two percent of the median
5Article 1 Sec. 7.
REVISOR JSK/VJ 25-0318902/06/25 6.1household income in the municipality
6.2multiplied by the number of households in the
6.3municipality, this appropriation is also for the
6.4local share of the project.
6,000,0006.5Subd. 6.Community Tree Planting
6.6For grants under Minnesota Statutes, section
6.784.705. This appropriation must be used for
6.8qualified capital projects.
2,400,0006.9Subd. 7.Reforestation
6.10For reforestation and stand improvement on
6.11state forest lands to meet the reforestation
6.12requirements of Minnesota Statutes, section
6.1389.002, subdivision 2, including purchasing
6.14native seeds and native seedlings, planting,
6.15seeding, site preparation, and protection on
6.16state lands administered by the commissioner.
10,000,0006.17Subd. 8.Dam Renovation, Repair, Removal
6.18(a) For design, engineering, and construction
6.19to repair, reconstruct, or remove publicly
6.20owned dams and respond to dam safety
6.21emergencies on publicly owned dams. The
6.22commissioner must first use this appropriation
6.23for removal of the Rapidan Dam, including
6.24associated improvements for stream and
6.25stream bank stabilization and mitigation of
6.26public safety hazards. Any unspent portion of
6.27this appropriation remaining after completion
6.28of the Rapidan Dam project may be applied
6.29toward other project priorities as determined
6.30by the commissioner, in accordance with
6.31Minnesota Statutes, sections 103G.511 and
6.32103G.515.
6.33(b) If the commissioner determines that a
6.34project is not ready to proceed, this
6Article 1 Sec. 7.
REVISOR JSK/VJ 25-0318902/06/25 7.1appropriation may be used for other projects
7.2on the commissioner's priority list.
7.3Subd. 9.Unspent Appropriations
7.4The unspent portion of an appropriation for a
7.5project in this section that is complete, upon
7.6written notice to the commissioner of
7.7management and budget, is available for asset
7.8preservation under Minnesota Statutes, section
7.984.946. Minnesota Statutes, section 16A.642,
7.10applies from the date of the original
7.11appropriation to the unspent amount
7.12transferred.
7.13Sec. 8. POLLUTION CONTROL AGENCY
8,000,000$7.14Subdivision 1.Total Appropriation
7.15To the Pollution Control Agency for the
7.16purposes specified in this section.
8,000,000
7.17Subd. 2.Statewide Drinking Water
7.18Contamination Mitigation Program
7.19For projects or grants under Minnesota
7.20Statutes, section 115B.245.
7.21Sec. 9. BOARD OF WATER AND SOIL
7.22RESOURCES
6,500,000$7.23Subdivision 1.Total Appropriation
7.24To the Board of Water and Soil Resources for
7.25the purposes specified in this section.
2,500,000
7.26Subd. 2.Local Government Roads Wetland
7.27Replacement Program
7.28To acquire land or permanent easements and
7.29to restore, create, enhance, and preserve
7.30wetlands to replace those wetlands drained or
7.31filled as a result of the repair, reconstruction,
7.32replacement, or rehabilitation of existing
7.33public roads as required by Minnesota
7Article 1 Sec. 9.
REVISOR JSK/VJ 25-0318902/06/25 8.1Statutes, section 103G.222, subdivision 1,
8.2paragraphs (l) and (m). Notwithstanding
8.3Minnesota Statutes, section 103G.222,
8.4subdivision 3, the board may implement the
8.5wetland replacement program consistent with
8.6section 404 of the federal Clean Water Act.
8.7The purchase price paid for acquisition of land
8.8or perpetual easement must be a fair market
8.9value as determined by the board. The board
8.10may enter into agreements with the federal
8.11government, other state agencies, political
8.12subdivisions, nonprofit organizations, fee title
8.13owners, or other qualified private entities to
8.14acquire wetland replacement credits in
8.15accordance with Minnesota Rules, chapter
8.168420. Up to five percent of this appropriation
8.17may be used for restoration and enhancement.
4,000,000
8.18Subd. 3.Reinvest in Minnesota (RIM) Reserve
8.19Program
8.20To acquire conservation easements from
8.21landowners to preserve, restore, create, and
8.22enhance wetlands and associated uplands of
8.23prairie and grasslands, and to restore and
8.24enhance rivers and streams, riparian lands, and
8.25associated uplands of prairie and grasslands,
8.26in order to protect soil and water quality,
8.27support fish and wildlife habitat, reduce flood
8.28damage, and provide other public benefits.
8.29The provisions of Minnesota Statutes, section
8.30103F.515, apply to this program. The board
8.31shall give priority to leveraging federal money
8.32by enrolling targeted new lands or enrolling
8.33environmentally sensitive lands that have
8.34expiring federal conservation agreements. The
8.35board is authorized to enter into new
8.36agreements and amend past agreements with
8Article 1 Sec. 9.
REVISOR JSK/VJ 25-0318902/06/25 9.1landowners as required by Minnesota Statutes,
9.2section 103F.515, subdivision 5, to allow for
9.3restoration. Up to ten percent of this
9.4appropriation may be used for restoration,
9.5rehabilitation, and enhancement.
15,000,000$
9.6Sec. 10. MINNESOTA ZOOLOGICAL
9.7GARDEN
9.8To the Minnesota Zoological Board to design,
9.9construct, furnish, and equip a new animal
9.10hospital building at the Minnesota Zoological
9.11Garden.
9.12Sec. 11. ADMINISTRATION
26,044,000$9.13Subdivision 1.Total Appropriation
9.14To the commissioner of administration for the
9.15purposes specified in this section.
8,500,0009.16Subd. 2.Capitol Tunnel
9.17To design, construct, and equip improvements
9.18to bring a portion of the tunnel under Rev. Dr.
9.19Martin Luther King Jr. Boulevard and to the
9.20east to the State Capitol into compliance with
9.21the Americans with Disabilities Act.
2,044,000
9.22Subd. 3.Capital Asset Preservation and
9.23Replacement Account
9.24To be spent in accordance with Minnesota
9.25Statutes, section 16A.632.
3,500,0009.26Subd. 4.ADA Accessibility
9.27To be spent in accordance with Minnesota
9.28Statutes, section 16B.308.
12,000,0009.29Subd. 5.Capitol Mall Improvements
9.30To predesign, design, construct, furnish, and
9.31equip improvements and betterments of a
9.32capital nature within the Capitol Area,
9.33consistent with the Capitol Mall Design
9Article 1 Sec. 11.
REVISOR JSK/VJ 25-0318902/06/25 10.1Framework update required by Laws 2023,
10.2chapter 62, article 2, section 124.
10.3Sec. 12. AMATEUR SPORTS COMMISSION
7,000,000$10.4Subdivision 1.Total Appropriation
10.5To the Minnesota Amateur Sports
10.6Commission for the purposes specified in this
10.7section.
6,000,00010.8Subd. 2.Asset Preservation
10.9For asset preservation improvements and
10.10betterments of a capital nature at the National
10.11Sports Center in Blaine, to be spent in
10.12accordance with Minnesota Statutes, section
10.1316B.307.
1,000,00010.14Subd. 3.Mighty Ducks
10.15For grants to local government units under
10.16Minnesota Statutes, section 240A.09,
10.17paragraph (b), for projects that eliminate R-22.
10.18Sec. 13. MILITARY AFFAIRS
3,000,000$10.19Subdivision 1.Total Appropriation
10.20To the adjutant general for the purposes
10.21specified in this section.
3,000,00010.22Subd. 2.Duluth Hangar Design
10.23To predesign and design the construction of
10.24a new hangar to hold aircraft at the Duluth
10.25International Airport in support of the 148th
10.26Fighter Wing of the Minnesota Air National
10.27Guard to replace existing hangars.
10.28Sec. 14. PUBLIC SAFETY
47,998,000$10.29Subdivision 1.Total Appropriation
10.30To the commissioner of administration for the
10.31purposes specified in this section.
10Article 1 Sec. 14.
REVISOR JSK/VJ 25-0318902/06/25 47,998,000
11.1Subd. 2.Southern Minnesota BCA Regional
11.2Office and Laboratory
11.3To construct, furnish, and equip a new Bureau
11.4of Criminal Apprehension regional office and
11.5laboratory facility in Mankato.
11.6Sec. 15. TRANSPORTATION
94,621,000$11.7Subdivision 1.Total Appropriation
11.8To the commissioner of transportation for the
11.9purposes specified in this section.
35,000,000
11.10Subd. 2.Major Local Bridge Replacement and
11.11Rehabilitation Program
11.12From the bond proceeds account in the state
11.13transportation fund for grants under Minnesota
11.14Statutes, section 174.50, subdivision 6d.
3,000,00011.15Subd. 3.Port Development Assistance Program
11.16For grants under Minnesota Statutes, chapter
11.17457A. Any improvements made with the
11.18proceeds of these grants must be publicly
11.19owned.
20,000,000
11.20Subd. 4.Local Bridge Replacement and
11.21Rehabilitation
11.22From the bond proceeds account in the state
11.23transportation fund to match federal money
11.24and to replace or rehabilitate local deficient
11.25bridges as provided in Minnesota Statutes,
11.26section 174.50.
36,621,00011.27Subd. 5.Local Road Improvement Fund Grants
11.28From the bond proceeds account in the state
11.29transportation fund as provided in Minnesota
11.30Statutes, section 174.50, for eligible trunk
11.31highway corridor improvement projects under
11.32Minnesota Statutes, section 174.52,
11.33subdivision 2; for construction and
11Article 1 Sec. 15.
REVISOR JSK/VJ 25-0318902/06/25 12.1reconstruction of local roads with statewide
12.2or regional significance under Minnesota
12.3Statutes, section 174.52, subdivision 4; or for
12.4grants to counties to assist in paying the costs
12.5of rural road safety capital improvement
12.6projects on county state-aid highways under
12.7Minnesota Statutes, section 174.52,
12.8subdivision 4a. Of this appropriation,
12.9$5,000,000 is for projects on town roads.
12.10Sec. 16. METROPOLITAN COUNCIL
14,125,000$12.11Subdivision 1.Total Appropriation
12.12To the Metropolitan Council for the purposes
12.13specified in this section.
10,000,000
12.14Subd. 2.Metropolitan Cities Inflow and
12.15Infiltration Grants
12.16For grants under Minnesota Statutes, section
12.17473.5491.
4,125,00012.18Subd. 3.Metropolitan Regional Parks and Trails
12.19For the cost of improvements and betterments
12.20of a capital nature and acquisition by the
12.21council and local government units of regional
12.22recreational open-space lands in accordance
12.23with the council's policy plan as provided in
12.24Minnesota Statutes, section 473.147. This
12.25appropriation must not be used to purchase
12.26easements.
8,000,000$12.27Sec. 17. DIRECT CARE AND TREATMENT
12.28To the commissioner of administration for
12.29asset preservation improvements and
12.30betterments of a capital nature at Department
12.31of Direct Care and Treatment facilities
12.32statewide, to be spent in accordance with
12.33Minnesota Statutes, section 16B.307.
12Article 1 Sec. 17.
REVISOR JSK/VJ 25-0318902/06/25 4,500,000$
13.1Sec. 18. CHILDREN, YOUTH, AND
13.2FAMILIES
13.3To the commissioner of children, youth, and
13.4families for grants under Minnesota Statutes,
13.5section 142A.46, to predesign, design,
13.6construct, renovate, furnish, and equip early
13.7childhood learning facilities.
13.8Sec. 19. VETERANS AFFAIRS
25,045,000$13.9Subdivision 1.Total Appropriation
13.10To the commissioner of administration for the
13.11purposes specified in this section.
9,000,00013.12Subd. 2.Asset Preservation
13.13For asset preservation improvements and
13.14betterments of a capital nature at the veterans
13.15homes in Minneapolis, Hastings, Fergus Falls,
13.16Silver Bay, and Luverne, and the state veterans
13.17cemeteries at Little Falls, Preston, and Duluth,
13.18to be spent in accordance with Minnesota
13.19Statutes, section 16B.307.
16,045,000
13.20Subd. 3.Minneapolis Veterans Home - Building
13.2116 Remodel
13.22To design, construct, furnish, and equip the
13.23renovation of the Minneapolis Veterans Home
13.24Building 16.
13.25Sec. 20. CORRECTIONS
86,585,000$13.26Subdivision 1.Total Appropriation
13.27To the commissioner of administration for the
13.28purposes specified in this section.
40,000,00013.29Subd. 2.Asset Preservation
13.30For asset preservation improvement and
13.31betterments of a capital nature at the
13.32Minnesota correctional facilities statewide to
13Article 1 Sec. 20.
REVISOR JSK/VJ 25-0318902/06/25 14.1be spent in accordance with Minnesota
14.2Statutes, section 16B.307.
46,585,000
14.3Subd. 3.Minnesota Correctional Facility - Rush
14.4City
14.5To design, construct, furnish, and equip a new
14.6building addition and to renovate existing
14.7space to provide incarcerated persons services
14.8at the Rush City Correctional Facility.
14.9Subd. 4.Unspent Appropriations
14.10The unspent portion of an appropriation for a
14.11Department of Corrections project in this
14.12section that is complete, upon written notice
14.13to the commissioner of management and
14.14budget, is available for asset preservation
14.15under Minnesota Statutes, section 16B.307.
14.16Minnesota Statutes, section 16A.642, applies
14.17from the date of the original appropriation to
14.18the unspent amount transferred.
14.19Sec. 21. EMPLOYMENT AND ECONOMIC
14.20DEVELOPMENT
4,000,000$14.21Subdivision 1.Total Appropriation
14.22To the commissioner of employment and
14.23economic development for the purposes
14.24specified in this section.
2,000,000
14.25Subd. 2.Greater Minnesota Business
14.26Development Public Infrastructure
14.27For grants under Minnesota Statutes, section
14.28116J.431.
2,000,000
14.29Subd. 3.Transportation Economic Development
14.30Infrastructure
14.31For grants under Minnesota Statutes, section
14.32116J.436.
14.33Sec. 22. PUBLIC FACILITIES AUTHORITY
100,011,000$14.34Subdivision 1.Total Appropriation
14Article 1 Sec. 22.
REVISOR JSK/VJ 25-0318902/06/25 15.1To the Public Facilities Authority for the
15.2purposes specified in this section.
39,000,000
15.3Subd. 2.State Match for Federal Grants to State
15.4Revolving Loan Programs
15.5To match federal capitalization grants for the
15.6clean water revolving fund under Minnesota
15.7Statutes, section 446A.07, and the drinking
15.8water revolving fund under Minnesota
15.9Statutes, section 446A.081. This appropriation
15.10must be used for qualified capital projects.
35,484,00015.11Subd. 3.Water Infrastructure Funding Program
15.12(a) For grants to eligible municipalities under
15.13the water infrastructure funding program under
15.14Minnesota Statutes, section 446A.072.
15.15(b) $17,742,000 is for wastewater projects
15.16listed on the Pollution Control Agency's
15.17project priority list in the fundable range under
15.18the clean water revolving fund program.
15.19(c) $17,742,000 is for drinking water projects
15.20listed on the commissioner of health's project
15.21priority list in the fundable range under the
15.22drinking water revolving fund program.
15.23(d) After all eligible projects under paragraph
15.24(b) or (c) have been funded in a fiscal year,
15.25the Public Facilities Authority may transfer
15.26any remaining, uncommitted money to eligible
15.27projects under a program defined in paragraph
15.28(b) or (c) based on that program's project
15.29priority list.
18,527,000
15.30Subd. 4.Point Source Implementation Grants
15.31Program
15.32For grants to eligible municipalities under the
15.33point source implementation grants program
15.34under Minnesota Statutes, section 446A.073.
15Article 1 Sec. 22.
REVISOR JSK/VJ 25-0318902/06/25 16.1This appropriation must be used for qualified
16.2capital projects.
7,000,000
16.3Subd. 5.Emerging Contaminants Grant
16.4Program
16.5For grants to eligible municipalities under the
16.6Emerging Contaminants Grant Program under
16.7Minnesota Statutes, section 446A.082.
16.8Sec. 23. MINNESOTA HOUSING FINANCE
16.9AGENCY
14,500,000$16.10Subdivision 1.Total Appropriation
16.11To the Minnesota Housing Finance Agency
16.12for the purposes specified in this section.
10,000,00016.13Subd. 2.Public Housing Rehabilitation
16.14To the Minnesota Housing Finance Agency
16.15to finance the costs of rehabilitation to
16.16preserve public housing under Minnesota
16.17Statutes, section 462A.202, subdivision 3a.
16.18For purposes of this section, "public housing"
16.19means housing for low-income persons and
16.20households financed by the federal
16.21government and publicly owned. Priority may
16.22be given to proposals that maximize nonstate
16.23resources to finance the capital costs and
16.24requests that prioritize health, safety, and
16.25energy improvements. The priority in
16.26Minnesota Statutes, section 462A.202,
16.27subdivision 3a, for projects to increase the
16.28supply of affordable housing and the
16.29restrictions of Minnesota Statutes, section
16.30462A.202, subdivision 7, do not apply to this
16.31appropriation.
16Article 1 Sec. 23.
REVISOR JSK/VJ 25-0318902/06/25 4,500,000
17.1Subd. 3.Greater Minnesota Housing
17.2Infrastructure Grants
17.3For grants under Minnesota Statutes, section
17.4462A.395, subdivision 3.
17.5Sec. 24. MINNESOTA HISTORICAL
17.6SOCIETY
6,588,000$17.7Subdivision 1.Total Appropriation
17.8To the Minnesota Historical Society for the
17.9purposes specified in this section.
5,588,00017.10Subd. 2.Historic Sites Asset Preservation
17.11For capital improvements and betterments at
17.12state historic sites, buildings, landscaping at
17.13historic buildings, exhibits, markers, and
17.14monuments, to be spent in accordance with
17.15Minnesota Statutes, section 16B.307. The
17.16society shall determine project priorities as
17.17appropriate based on need.
1,000,00017.18Subd. 3.County and Local Preservation Grants
17.19For grants to county and local jurisdictions as
17.20matching money for historic preservation
17.21projects of a capital nature, as provided in
17.22Minnesota Statutes, section 138.0525.
1,300,000$
17.23Sec. 25. MINNESOTA MANAGEMENT AND
17.24BUDGET
17.25From the general fund to the commissioner of
17.26management and budget to prepay or defease
17.27any outstanding state general obligation bonds
17.28used for improvements and betterments at the
17.29University of Minnesota Cloquet Forestry
17.30Center, and other associated financing costs,
17.31to facilitate the university's goal of returning
17.32this land to the Fond du Lac Band of Lake
17.33Superior Chippewa. This amount may be
17.34deposited, invested, and applied to accomplish
17Article 1 Sec. 25.
REVISOR JSK/VJ 25-0318902/06/25 18.1the purposes of this section as provided in
18.2Minnesota Statutes, section 475.67,
18.3subdivisions 5 to 10, and 13. Upon the
18.4prepayment or defeasance of associated debt
18.5on the real property and improvements, all
18.6conditions set forth in Minnesota Statutes,
18.7section 16A.695, subdivision 3, shall be
18.8deemed to have been satisfied and the real
18.9property and improvements shall no longer
18.10constitute state bond financed property under
18.11Minnesota Statutes, section 16A.695.
18.12Sec. 26. BOND SALE AUTHORIZATIONS.
18.13 Subdivision 1.Bond proceeds fund.To provide the money appropriated in this act from
18.14the bond proceeds fund, and to provide for expenses authorized in Minnesota Statutes,
18.15section 16A.641, subdivision 8, paragraph (c), the commissioner of management and budget
18.16shall sell and issue bonds of the state in an amount up to $703,375,000 in the manner, upon
18.17the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675,
18.18and by the Minnesota Constitution, article XI, sections 4 to 7.
18.19 Subd. 2.Transportation fund.To provide the money appropriated in this act from the
18.20bond proceeds account in the state transportation fund, the commissioner of management
18.21and budget shall sell and issue bonds of the state in an amount up to $86,621,000 in the
18.22manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
18.2316A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.
18.24Sec. 27. BOND SALE SCHEDULE.
18.25 The commissioner of management and budget shall schedule the sale of state general
18.26obligation bonds so that, during the biennium ending June 30, 2027, no more than
18.27$1,221,106,000 will need to be transferred from the general fund to the state bond fund to
18.28pay principal and interest due and to become due on outstanding state general obligation
18.29bonds. During the biennium, before each sale of state general obligation bonds, the
18.30commissioner of management and budget shall calculate the amount of debt service payments
18.31needed on bonds previously issued and shall estimate the amount of debt service payments
18.32that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
18.33amount of bonds scheduled to be sold so as to remain within the limit set by this section.
18Article 1 Sec. 27.
REVISOR JSK/VJ 25-0318902/06/25 19.1The amount needed to make the debt service payments is appropriated from the general
19.2fund as provided in Minnesota Statutes, section 16A.641.
19.3 Sec. 28. EFFECTIVE DATE.
19.4 Except as otherwise provided, this article is effective the day following final enactment.
19.5 ARTICLE 2
19.6 MISCELLANEOUS
19.7 Section 1. [16B.308] ACCESSIBILITY ACCOUNT.
19.8 Subdivision 1.Establishment.An accessibility account is established in the state bond
19.9proceeds fund to receive state bond proceeds appropriated to the commissioner of
19.10administration to be expended for the purpose and in accordance with the standards and
19.11criteria in this section.
19.12 Subd. 2.Standards.(a) An expenditure may be made from the account only when it is
19.13a capital expenditure on a capital asset owned by the state, within the meaning of accepted
19.14accounting principles as applied to public expenditures. The commissioner of administration
19.15must consult with the commissioner of management and budget to the extent necessary to
19.16ensure that an expenditure meets the criteria of the Minnesota Constitution, article XI,
19.17section 5, clause (a).
19.18 (b) An expenditure may be made from the account to predesign, design, construct,
19.19renovate, furnish, and equip accessibility improvements on state-owned property. For
19.20purposes of this section, "state-owned property" does not include property controlled or
19.21managed by the University of Minnesota.
19.22 (c) Categories of projects considered likely to be most needed and appropriate for
19.23financing are:
19.24 (1) removal of architectural barriers from a building or site; and
19.25 (2) improvements to meet state and federal requirements for accessibility for people
19.26with disabilities.
19.27 Subd. 3.Applications; project selection.The commissioner of administration must:
19.28 (1) provide instructions to state agencies to apply for funding of capital expenditures
19.29from the accessibility account;
19.30 (2) review applications for funding;
19Article 2 Section 1.
REVISOR JSK/VJ 25-0318902/06/25 20.1 (3) make initial allocations among eligible projects;
20.2 (4) determine priorities for funding in collaboration with the Minnesota Council on
20.3Disability; and
20.4 (5) allocate money in priority order until the available appropriation has been committed.
20.5 Subd. 4.Report.On or before January 15 annually the commissioner of administration
20.6must submit to the commissioner of management and budget and the chairs and ranking
20.7minority members of the committees in the senate and the house of representatives with
20.8jurisdiction over capital investment a list of the projects that were funded with money from
20.9the accessibility account during the preceding calendar year, as well as a list of priority
20.10projects for which accessibility appropriations will be requested in that year's legislative
20.11session.
20.12Sec. 2. [115B.245] STATEWIDE DRINKING WATER CONTAMINATION
20.13MITIGATION PROGRAM.
20.14 Subdivision 1.Program established.(a) The commissioner may design and construct,
20.15or may make grants to eligible grantees as provided under this section to design and construct,
20.16projects to provide safe drinking water, due to contamination of drinking water by hazardous
20.17substances, through projects such as treatment systems, new drinking water wells, sealing
20.18contaminated wells, and connecting to alternative drinking water sources. The criteria for
20.19selecting projects must follow the criteria and rules established under section 115B.17.
20.20 (b) The commissioner must prioritize projects located in a census block group with a
20.21supplemental demographic index score in the 70th percentile or higher within the state of
20.22Minnesota.
20.23 Subd. 2.Definitions.(a) For purposes of this section, the following terms have the
20.24meanings given.
20.25 (b) "Commissioner" means the commissioner of the Pollution Control Agency.
20.26 (c) "Eligible grantee" means:
20.27 (1) for projects funded from proceeds of bonds authorized by the Minnesota Constitution,
20.28article XI, section 5, clause (a), a city, county, school district, joint powers board, or other
20.29political subdivision of the state; and
20.30 (2) for projects funded from appropriations from the general fund, any person.
20.31 (d) "Private infrastructure projects" means improvements made to nonpublicly owned
20.32infrastructure such as sealing of private wells, connecting private properties to water mains,
20Article 2 Sec. 2.
REVISOR JSK/VJ 25-0318902/06/25 21.1water service fees, treatment systems, and drilling new private wells in an unimpaired
21.2drinking water aquifer.
21.3 (e) "Public infrastructure projects" means improvements made to publicly owned
21.4infrastructure such as water main installation, public water system improvements, treatment
21.5systems, and associated improvements.
21.6 (f) "Supplemental demographic index" means an index in the Environmental Justice
21.7Screening and Mapping Tool developed by the United States Environmental Protection
21.8Agency that is based on socioeconomic indicators, including low income, unemployment,
21.9less than high school education, limited English speaking, and low life expectancy.
21.10 Subd. 3.Eligible projects.(a) The proceeds of state general obligation bonds may only
21.11be expended to acquire land or an interest in land and to predesign, design, construct, and
21.12improve public infrastructure projects that further the purposes of this section.
21.13Notwithstanding section 115B.17, subdivision 6 or 16, any money recovered in a civil action
21.14for a project financed with bonds under this section shall be deposited by the commissioner
21.15in the statewide drinking water contamination mitigation account in the special revenue
21.16fund for the purpose of funding additional projects under this section.
21.17 (b) Appropriations from the general fund may only be expended on public or private
21.18infrastructure projects that further the purposes of this section.
21.19Sec. 3. Minnesota Statutes 2024, section 142A.46, subdivision 1, is amended to read:
21.20 Subdivision 1.Grant authority.The commissioner may make grants to state agencies
21.21and, political subdivisions, nonprofit organizations, Indian Tribal governments, or private
21.22child care providers licensed as child care centers or to provide in-home family child care
21.23to construct or rehabilitate facilities for early childhood programs, crisis nurseries, or
21.24parenting time centers. The following requirements apply:
21.25 (1) for grants funded with general obligation bonds, the facilities must be owned by the
21.26state or a political subdivision, but may be leased under section 16A.695 to organizations
21.27that operate the programs. The commissioner must prescribe the terms and conditions of
21.28the leases.;
21.29 (2) for grants funded with general fund appropriations, the facilities may be owned by
21.30a political subdivision, nonprofit organization, Tribal government, or private child care
21.31provider licensed as a child care center or to provide in-home family child care;
21.32 (2) (3) a grant for an individual facility must not exceed $500,000 for each program that
21.33is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three
21Article 2 Sec. 3.
REVISOR JSK/VJ 25-0318902/06/25 22.1programs or more. Programs include Head Start, School Readiness, Early Childhood Family
22.2Education, licensed child care, and other early childhood intervention programs.;
22.3 (3) (4) state appropriations must be matched on a 50 25 percent basis with nonstate
22.4funds. The matching requirement must apply program wide and not to individual grants.
22.5 Sec. 4. [446A.082] EMERGING CONTAMINANTS GRANTS.
22.6 Subdivision 1.Definition.For the purposes of this section, "supplemental demographic
22.7index" means an index in the Environmental Justice Screening and Mapping Tool developed
22.8by the United States Environmental Protection Agency that is based on socioeconomic
22.9indicators, including low income, unemployment, less than high school education, limited
22.10English speaking, and low life expectancy.
22.11 Subd. 2.Program established.When money is appropriated under this program, the
22.12authority shall award grants to a governmental unit for up to 80 percent of the cost of drinking
22.13water infrastructure projects to address a confirmed exceedance of a health advisory level
22.14for a drinking water emerging contaminant as defined by the Environmental Protection
22.15Agency.
22.16 Subd. 3.Eligibility.An eligible project for this program must:
22.17 (1) be listed on the Drinking Water Revolving Fund Project Priority List per Minnesota
22.18Rules, part 4720.9015;
22.19 (2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
22.20 (3) be certified by the commissioner of health per Minnesota Rules, part 4720.9060.
22.21 Subd. 4.Application and reservation of funds.(a) Grant applications to the authority
22.22may be made at any time on forms prescribed by the authority, including a project schedule
22.23and cost estimate for the work necessary to comply with the purpose described in subdivision
22.242.
22.25 (b) The commissioner of health shall review and certify to the authority those projects
22.26that have plans and specifications approved under Minnesota Rules, part 4720.9060. The
22.27commissioner of health must also indicate in the certification the supplemental demographic
22.28index scores of the projects.
22.29 (c) When a project is certified by the commissioner of health, the authority shall first
22.30reserve grant funds for projects located in a census block group with a supplemental
22.31demographic index score in the 70th percentile or higher within the state of Minnesota. Any
22.32remaining funds shall be reserved for projects in the order listed on the commissioner of
22Article 2 Sec. 4.
REVISOR JSK/VJ 25-0318902/06/25 23.1health's project priority list and in an amount based on the cost estimate in the commissioner
23.2of health certification or the as-bid costs, whichever is less.
23.3 Subd. 5.Grant amount.The grant amount for an eligible project under this program
23.4shall be for an amount up to 80 percent of the eligible as-bid project cost up to $12,000,000,
23.5minus the amount of federal emerging contaminant funds the project receives under section
23.6446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant
23.7funds.
23.8 Subd. 6.Grant approval.The authority shall award a grant for an eligible project only
23.9after:
23.10 (1) the applicant has submitted the as-bid project cost;
23.11 (2) the commissioner of health has certified the grant eligible portion of the project; and
23.12 (3) the authority has determined that the additional financing necessary to complete the
23.13project has been committed from other sources.
23.14 Subd. 7.Grant disbursement.Grant funds shall be disbursed by the authority as eligible
23.15project costs are incurred by the governmental unit and in accordance with a project financing
23.16agreement and applicable state laws and rules governing the disbursements.
23.17Sec. 5. Minnesota Statutes 2024, section 473.5491, subdivision 1, is amended to read:
23.18 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
23.19the meanings given.
23.20 (b) "Affordability criteria" means an inflow and infiltration project service area that is
23.21located, in whole or in part, in a census tract where at least three of the following apply as
23.22determined using the most recently published data from the United States Census Bureau
23.23or United States Centers for Disease Control and Prevention:
23.24 (1) 20 percent or more of the residents have income below the federal poverty thresholds;
23.25 (2) the tract has a United States Centers for Disease Control and Prevention Social
23.26Vulnerability Index greater than 0.80;
23.27 (3) the upper limit of the lowest quintile of household income is less than the state upper
23.28limit of the lowest quintile;
23.29 (4) the housing vacancy rate is greater than the state average; or
23.30 (5) the percent of the population receiving Supplemental Nutrition Assistance Program
23.31(SNAP) benefits is greater than the state average.
23Article 2 Sec. 5.
REVISOR JSK/VJ 25-0318902/06/25 24.1 (c) (b) "City" means a statutory or home rule charter city located within the metropolitan
24.2area.
24.3 (c) "Supplemental demographic index" means an index in the Environmental Justice
24.4Screening and Mapping Tool developed by the United States Environmental Protection
24.5Agency that is based on socioeconomic indicators, including low income, unemployment,
24.6less than high school education, limited English speaking, and low life expectancy.
24.7 Sec. 6. Minnesota Statutes 2024, section 473.5491, subdivision 2, is amended to read:
24.8 Subd. 2.Grants.(a) The council shall make grants to cities for capital improvements
24.9in municipal wastewater collection systems to reduce the amount of inflow and infiltration
24.10to the council's metropolitan sanitary sewer disposal system.
24.11 (b) A grant under this section may be made in an amount up to 50 percent of the cost to
24.12mitigate inflow and infiltration in the publicly owned municipal wastewater collection
24.13system. The council may award a grant up to 100 percent of the cost to mitigate inflow and
24.14infiltration in the publicly owned municipal wastewater collection system if the project
24.15meets affordability criteria is located in a census block group with a supplemental
24.16demographic index score in the 70th percentile or higher within the state of Minnesota.
24.17Sec. 7. Minnesota Statutes 2024, section 473.5491, subdivision 4, is amended to read:
24.18 Subd. 4.Application.The council must award grants based on applications from cities
24.19that identify eligible capital costs and include a timeline for inflow and infiltration mitigation
24.20construction, pursuant to guidelines established by the council. The council must prioritize
24.21applications that meet affordability criteria for projects located in a census block group with
24.22a supplemental demographic index score in the 70th percentile or higher within the state of
24.23Minnesota.
24.24Sec. 8. Laws 2023, chapter 71, article 1, section 14, subdivision 21, is amended to read:
2,000,000
24.25Subd. 21.Inver Grove Heights; Heritage Village
24.26Park
24.27For a grant to the city of Inver Grove Heights
24.28to predesign, design, construct, furnish, and
24.29equip an inclusive accessible play structure
24.30structures for children and to predesign,
24.31design, construct, furnish, and equip accessible
24Article 2 Sec. 8.
REVISOR JSK/VJ 25-0318902/06/25 25.1restrooms, water fountains, and a fixed-shade
25.2structure structures, at Heritage Village Park.
25.3 Sec. 9. CLOQUET FORESTRY CENTER; LAND TRANSFER.
25.4 (a) The commissioner of administration must convey for no consideration all state-owned
25.5land within boundaries of the Cloquet Forestry Center to the Board of Regents of the
25.6University of Minnesota to facilitate the university's goal of returning this land, and similarly
25.7situated land currently owned by the university, to the Fond du Lac Band of Lake Superior
25.8Chippewa.
25.9 (b) The conveyance must be in a form approved by the attorney general. The attorney
25.10general may make changes to the land description to correct errors and ensure accuracy.
25.11 (c) The land to be conveyed is located in Carlton County and is described as follows:
25.12 (1) the Southeast Quarter of the Northwest Quarter of Section 30, Township 49 North,
25.13Range 17 West;
25.14 (2) the East Half of the Northeast Quarter of Section 36, Township 49 North, Range 18
25.15West;
25.16 (3) the Northwest Quarter of the Southeast Quarter of Section 29, Township 49 North,
25.17Range 17 West;
25.18 (4) the Northwest Quarter of the Northwest Quarter of Section 29, Township 49 North,
25.19Range 17 West;
25.20 (5) the Northwest Quarter of the Southwest Quarter (or Lot 3) of Section 30, Township
25.2149 North, Range 17 West;
25.22 (6) the Southwest Quarter of the Northwest Quarter (or Lot 2) of Section 31, Township
25.2349 North, Range 17 West;
25.24 (7) the Southeast Quarter of the Northeast Quarter of Section 32, Township 49 North,
25.25Range 17 West; and
25.26 (8) the North Half of the Northeast Quarter of Section 32, Township 49 North, Range
25.2717 West.
25.28Sec. 10. REPEALER.
25.29 (a) Minnesota Statutes 2024, section 16A.662, is repealed.
25.30 (b) Minnesota Statutes 2024, section 116J.417, subdivision 9, is repealed.
25Article 2 Sec. 10.
REVISOR JSK/VJ 25-0318902/06/25 26.1 EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
26.2Paragraph (b) is effective retroactively from June 2, 2023.
26.3 Sec. 11. EFFECTIVE DATE.
26.4 Except as otherwise provided, this article is effective the day following final enactment.
26Article 2 Sec. 11.
REVISOR JSK/VJ 25-0318902/06/25 Page.Ln 1.12APPROPRIATIONS...............................................................................ARTICLE 1
Page.Ln 19.5MISCELLANEOUS...............................................................................ARTICLE 2
1
APPENDIX
Article locations for 25-03189 16A.662 INFRASTRUCTURE DEVELOPMENT BONDS.
Subdivision 1.Infrastructure development fund.The infrastructure development fund is
created as an account in the state treasury. The commissioner of management and budget shall
credit to the fund income from the sources provided by law. The commissioner of management and
budget shall from time to time certify to the State Board of Investment the assets of the fund not
currently needed. The amount certified must be invested by the State Board of Investment subject
to section 11A.24. Investment income and investment losses attributable to investment of fund
assets must be credited to or borne by the fund.
Subd. 2.Bonds authorized.When authorized by law enacted in accordance with the constitution,
article XI, sections 5 and 7, the commissioner may by order sell and issue bonds of the state
evidencing public debt incurred for any purpose stated in the law. The bonds are general obligations
of the state, and the full faith and credit of the state are pledged for their payment.
Subd. 3.Manner of issuance; maturities.The bonds must be issued and sold in accordance
with section 16A.641. Sections 16A.672 and 16A.675 apply to the bonds.
Subd. 4.Debt service account; appropriation of debt service account money.There is
established within the state bond fund a separate and special account designated as the infrastructure
development bond debt service account. The money on hand in the debt service account must be
used solely for the payment of the principal of and interest on bonds issued under Laws 1990,
chapter 610, article 1, section 30, subdivision 2, and is appropriated for this purpose. This
appropriation does not cancel as long as any of the bonds remain outstanding.
Subd. 5.Assessment to higher education systems.(a) In order to reduce the amount otherwise
required to be transferred to the state bond fund with respect to bonds heretofore or hereafter issued
under Laws 1990, chapter 610, article 1, section 30, subdivision 2, the commissioner of management
and budget shall assess each higher education system for one-third the amount that would otherwise
need to be transferred with respect to those bonds sold to finance capital improvement projects at
institutions under the control of the system; provided that, to the extent that the amount to be
transferred is for payment of principal and interest on bonds sold to finance life safety improvements,
the commissioner must not assess the higher education systems for the transfer.
(b) After each sale of the bonds, the commissioner of management and budget shall notify the
Board of Trustees of the Minnesota State Colleges and Universities and the regents of the University
of Minnesota of the amounts for which each system is responsible for each year for the life of the
bonds. The amounts payable each year are reduced by one-third of the net income from investment
of those bond proceeds that must be allocated among the systems in proportion to the amount of
principal and interest otherwise required to be paid by each. Each higher education system shall
pay its annual share of debt service payments to the commissioner of management and budget by
December 1 each year. If a higher education system fails to make a payment when due, the
commissioner of management and budget shall reduce allotments for appropriations from the general
fund otherwise payable to the system to cover the amount of the missed debt service payment. The
commissioner of management and budget shall credit the payments received from the higher
education systems to the infrastructure development bond debt service account in the state bond
fund each December 1 before the transfer is made under subdivision 4.
Subd. 6.Appropriation from general fund.There is annually appropriated from the general
fund for transfer to the infrastructure development bond debt service account the amount that, added
to the amount in the infrastructure development bond debt service account on December 1 each
year, after giving effect to subdivisions 4 and 5, is equal to the full amount of principal and interest
to come due on all bonds to and including July 1 in the second ensuing year.
Subd. 7.Constitutional tax levy.Under the constitution, article XI, section 7, the state auditor
must levy each year on all taxable property within the state a tax sufficient, with the amount then
on hand in the infrastructure development bond debt service account, to pay all principal and interest
on the bonds due and to become due to and including July 1 in the second ensuing year. The tax is
not subject to limit as to rate or amount. However, the amount of money appropriated from other
sources as provided in subdivisions 4, 5, and 6, and actually received and on hand before the levy
in any year, reduces the amount of the tax otherwise required to be levied. The proceeds of the tax
must be credited to the infrastructure development bond debt service account.
Subd. 8.Application and appropriation of proceeds.The proceeds of the bonds must be
deposited and spent as provided in this subdivision and are appropriated for those purposes. Any
accrued interest and any premium received on the sale of the bonds must be credited to the
infrastructure development bond debt service account. Except as otherwise required by law, the
1R
APPENDIX
Repealed Minnesota Statutes: 25-03189 balance of the bond proceeds shall be credited to the infrastructure development fund and spent for
the purposes specified in the law authorizing the issuance of the bonds. So much of the proceeds
as is necessary must be used to pay costs incurred in issuing and selling the bonds.
116J.417 GREATER MINNESOTA CHILD CARE FACILITY CAPITAL GRANT
PROGRAM.
Subd. 9.Cancellation of grant; return of money.If the commissioner determines that a grantee
is unable to proceed with an approved project or has not expended or obligated the grant money
within five years of entering into the grant agreement with the commissioner, the commissioner
shall cancel the grant and the money is available for the commissioner to make other grants under
this section. Money made available to the commissioner from a canceled grant is subject to
cancellation under section 16A.642 as if it had been appropriated to the program in the year in
which the grant is canceled.
2R
APPENDIX
Repealed Minnesota Statutes: 25-03189