Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3056 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to capital investment; authorizing spending to acquire and better public
3	3	1.3 land and buildings and for other improvements of a capital nature with certain
4	4	1.4 conditions; establishing new programs and modifying existing programs;
5	5	1.5 authorizing the sale and issuance of state bonds; appropriating money; amending
6	6	1.6 Minnesota Statutes 2024, sections 16A.501; 16B.97, subdivision 1; 16B.98,
7	7	1.7 subdivision 1; 116.182, subdivision 5; 142A.46, subdivision 1; 446A.07,
8	8	1.8 subdivision 8; 446A.072, subdivision 5a; 446A.073, subdivision 1; 446A.081,
9	9	1.9 subdivision 9; Laws 2013, chapter 143, article 12, section 21; proposing coding
10	10	1.10 for new law in Minnesota Statutes, chapters 16B; 115B; 446A; repealing Minnesota
11	11	1.11 Statutes 2024, sections 16A.662; 116J.417, subdivision 9.
12	12	1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
13	13	1.13 ARTICLE 1
14	14	1.14 APPROPRIATIONS
15	15	1.15Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
16	16	1.16 (a) The sums shown in the column under "Appropriations" are appropriated from the
17	17	1.17bond proceeds fund, or another named fund, to the state agencies or officials indicated, to
18	18	1.18be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
19	19	1.19by the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public
20	20	1.20land and buildings and other public improvements of a capital nature, or as authorized by
21	21	1.21the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless
22	22	1.22otherwise specified, money appropriated in this act:
23	23	1.23 (1) may be used to pay state agency staff costs that are attributed directly to the capital
24	24	1.24program or project in accordance with accounting policies adopted by the commissioner of
25	25	1.25management and budget;
26	26	1Article 1 Section 1.
27	27	25-03139 as introduced03/19/25 REVISOR JSK/AC
28	28	SENATE
29	29	STATE OF MINNESOTA
30	30	S.F. No. 3056NINETY-FOURTH SESSION
31	31	(SENATE AUTHORS: PAPPAS)
32	32	OFFICIAL STATUSD-PGDATE
33	33	Introduction and first reading03/27/2025
34	34	Referred to Capital Investment 2.1 (2) is available until the project is completed or abandoned subject to Minnesota Statutes,
35	35	2.2section 16A.642;
36	36	2.3 (3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
37	37	2.4should not be used for projects that can be financed within a reasonable time frame under
38	38	2.5Minnesota Statutes, section 16B.322 or 16C.144; and
39	39	2.6 (4) is available for a grant to a political subdivision after the commissioner of management
40	40	2.7and budget determines that an amount sufficient to complete the project as described in this
41	41	2.8act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
42	42	2.9 (b) Unless otherwise specified, appropriations in this article from the general fund or
43	43	2.10from the trunk highway fund are made in fiscal year 2026 and are onetime appropriations.
44	44	2.11 APPROPRIATIONS
45	45	2.12Sec. 2. UNIVERSITY OF MINNESOTA
46	46	102,994,000$2.13Subdivision 1.Total Appropriation
47	47	2.14To the Board of Regents of the University of
48	48	2.15Minnesota for the purposes specified in this
49	49	2.16section.
50	50	102,994,000
51	51	2.17Subd. 2.Higher Education Asset Preservation
52	52	2.18and Replacement (HEAPR)
53	53	2.19To be spent in accordance with Minnesota
54	54	2.20Statutes, section 135A.046.
55	55	2.21Sec. 3. MINNESOTA STATE COLLEGES AND
56	56	2.22UNIVERSITIES
57	57	102,994,000$2.23Subdivision 1.Total Appropriation
58	58	2.24To the Board of Trustees of the Minnesota
59	59	2.25State Colleges and Universities for the
60	60	2.26purposes specified in this section.
61	61	102,994,000
62	62	2.27Subd. 2.Higher Education Asset Preservation
63	63	2.28and Replacement (HEAPR)
64	64	2.29To be spent in accordance with Minnesota
65	65	2.30Statutes, section 135A.046.
66	66	900,000$2.31Sec. 4. EDUCATION
67	67	2Article 1 Sec. 4.
68	68	25-03139 as introduced03/19/25 REVISOR JSK/AC 3.1To the commissioner of education for library
69	69	3.2construction grants under Minnesota Statutes,
70	70	3.3section 134.45.
71	71	3.4Sec. 5. MINNESOTA STATE ACADEMIES
72	72	1,950,000$3.5Subdivision 1.Total Appropriation
73	73	3.6To the commissioner of administration for the
74	74	3.7purposes specified in this section.
75	75	1,150,0003.8Subd. 2.Asset Preservation
76	76	3.9For capital asset preservation improvements
77	77	3.10and betterments on both campuses of the
78	78	3.11Minnesota State Academies, to be spent in
79	79	3.12accordance with Minnesota Statutes, section
80	80	3.1316B.307.
81	81	400,0003.14Subd. 3.Student Center Predesign
82	82	3.15To predesign the renovation or replacement
83	83	3.16of existing spaces for a new student center on
84	84	3.17the Deaf School Campus.
85	85	400,0003.18Subd. 4.Therapy Pool Improvements Predesign
86	86	3.19To predesign the construction of the
87	87	3.20replacement and relocation of the therapy pool
88	88	3.21and therapeutic hot tub and renovations to the
89	89	3.22existing pool area, including related building
90	90	3.23and site improvements.
91	91	1,530,000$
92	92	3.24Sec. 6. PERPICH CENTER FOR ARTS
93	93	3.25EDUCATION
94	94	3.26To the commissioner of administration for
95	95	3.27capital asset preservation improvements and
96	96	3.28betterments at the Perpich Center for Arts
97	97	3.29Education, to be spent in accordance with
98	98	3.30Minnesota Statutes, section 16B.307.
99	99	3.31Sec. 7. NATURAL RESOURCES
100	100	98,000,000$3.32Subdivision 1.Total Appropriation
101	101	3Article 1 Sec. 7.
102	102	25-03139 as introduced03/19/25 REVISOR JSK/AC 4.1(a) To the commissioner of natural resources
103	103	4.2for the purposes specified in this section.
104	104	4.3(b) The appropriations in this section are
105	105	4.4subject to the requirements of the natural
106	106	4.5resources capital improvement program under
107	107	4.6Minnesota Statutes, section 86A.12, unless
108	108	4.7this section or the statutes referred to in this
109	109	4.8section provide more specific standards,
110	110	4.9criteria, or priorities for projects than
111	111	4.10Minnesota Statutes, section 86A.12.
112	112	61,000,0004.11Subd. 2.Natural Resources Asset Preservation
113	113	4.12For the preservation and replacement of
114	114	4.13state-owned facilities and recreational assets
115	115	4.14operated by the commissioner of natural
116	116	4.15resources to be spent in accordance with
117	117	4.16Minnesota Statutes, section 84.946.
118	118	11,100,0004.17Subd. 3.Betterment of Buildings
119	119	4.18For acquisition, predesign, design, and
120	120	4.19construction to replace existing facilities that
121	121	4.20no longer meet the business needs of the
122	122	4.21department or to acquire or construct new
123	123	4.22facilities.
124	124	6,500,000
125	125	4.23Subd. 4.Acquisition and Betterment of Public
126	126	4.24Lands
127	127	4.25(a) For the betterment of public lands and
128	128	4.26other improvements of a capital nature. The
129	129	4.27commissioner shall determine project priorities
130	130	4.28as appropriate under Minnesota Statutes,
131	131	4.29section 86A.12. Any reforestation shall be
132	132	4.30conducted in accordance with Minnesota
133	133	4.31Statutes, section 89.002, subdivision 2.
134	134	4.32(b) For acquisition of public lands for the
135	135	4.33purposes described in Minnesota Statutes,
136	136	4.34section 86A.12, subdivision 2. The
137	137	4Article 1 Sec. 7.
138	138	25-03139 as introduced03/19/25 REVISOR JSK/AC 5.1commissioner shall determine project priorities
139	139	5.2as appropriate under Minnesota Statutes,
140	140	5.3section 86A.12.
141	141	1,900,0005.4Subd. 5.Accessibility
142	142	5.5For the design and construction of accessibility
143	143	5.6improvements at state parks, recreation areas,
144	144	5.7and wildlife management areas.
145	145	5,600,0005.8Subd. 6.Flood Hazard Mitigation
146	146	5.9(a) For the state share of flood hazard
147	147	5.10mitigation grants for publicly owned capital
148	148	5.11improvements to prevent or alleviate flood
149	149	5.12damage under Minnesota Statutes, section
150	150	5.13103F.161.
151	151	5.14(b) Project priorities shall be determined by
152	152	5.15the commissioner as appropriate, based on
153	153	5.16need and consideration of available leveraging
154	154	5.17of federal, state, and local funds.
155	155	5.18(c) To the extent practicable and consistent
156	156	5.19with the project, recipients of appropriations
157	157	5.20for flood control projects in this subdivision
158	158	5.21shall create wetlands that are eligible for
159	159	5.22wetland replacement credit to replace wetlands
160	160	5.23drained or filled as the result of repair,
161	161	5.24reconstruction, replacement, or rehabilitation
162	162	5.25of an existing public road under Minnesota
163	163	5.26Statutes, section 103G.222, subdivision 1,
164	164	5.27paragraphs (l) and (m).
165	165	5.28(d) To the extent that the cost of a municipal
166	166	5.29project exceeds two percent of the median
167	167	5.30household income in the municipality
168	168	5.31multiplied by the number of households in the
169	169	5.32municipality, this appropriation is also for the
170	170	5.33local share of the project.
171	171	5Article 1 Sec. 7.
172	172	25-03139 as introduced03/19/25 REVISOR JSK/AC 1,900,000
173	173	6.1Subd. 7.Parks and Trails Local and Regional
174	174	6.2Recreation Grants
175	175	6.3For matching grants under Minnesota Statutes,
176	176	6.4section 85.019.
177	177	10,000,0006.5Subd. 8.Dam Renovation, Repair, Removal
178	178	6.6(a) For design, engineering, and construction
179	179	6.7to repair, reconstruct, or remove publicly
180	180	6.8owned dams and respond to dam safety
181	181	6.9emergencies on publicly owned dams. The
182	182	6.10commissioner shall determine project priorities
183	183	6.11as appropriate under Minnesota Statutes,
184	184	6.12sections 103G.511 and 103G.515.
185	185	6.13(b) This appropriation includes money for the
186	186	6.14Rapidan Dam removal and bank stabilization
187	187	6.15project in Blue Earth County.
188	188	6.16(c) If the commissioner determines that a
189	189	6.17project is not ready to proceed, this
190	190	6.18appropriation may be used for other projects
191	191	6.19on the commissioner's priority list.
192	192	6.20Subd. 9.Unspent Appropriations
193	193	6.21The unspent portion of an appropriation for a
194	194	6.22project in this section that is complete, upon
195	195	6.23written notice to the commissioner of
196	196	6.24management and budget, is available for asset
197	197	6.25preservation under Minnesota Statutes, section
198	198	6.2684.946. Minnesota Statutes, section 16A.642,
199	199	6.27applies from the date of the original
200	200	6.28appropriation to the unspent amount
201	201	6.29transferred.
202	202	6.30Sec. 8. POLLUTION CONTROL AGENCY
203	203	8,000,000$6.31Subdivision 1.Total Appropriation
204	204	6.32To the Pollution Control Agency for the
205	205	6.33purposes specified in this section.
206	206	6Article 1 Sec. 8.
207	207	25-03139 as introduced03/19/25 REVISOR JSK/AC 8,000,000
208	208	7.1Subd. 2.Statewide Drinking Water
209	209	7.2Contamination Mitigation Program
210	210	7.3For projects or grants under Minnesota
211	211	7.4Statutes, section 115B.245.
212	212	7.5Sec. 9. BOARD OF WATER AND SOIL
213	213	7.6RESOURCES
214	214	12,900,000$7.7Subdivision 1.Total Appropriation
215	215	7.8To the Board of Water and Soil Resources for
216	216	7.9the purposes specified in this section.
217	217	3,600,000
218	218	7.10Subd. 2.Local Government Roads Wetland
219	219	7.11Replacement Program
220	220	7.12To acquire land or permanent easements and
221	221	7.13to restore, create, enhance, and preserve
222	222	7.14wetlands to replace those wetlands drained or
223	223	7.15filled as a result of the repair, reconstruction,
224	224	7.16replacement, or rehabilitation of existing
225	225	7.17public roads as required by Minnesota
226	226	7.18Statutes, section 103G.222, subdivision 1,
227	227	7.19paragraphs (l) and (m). Notwithstanding
228	228	7.20Minnesota Statutes, section 103G.222,
229	229	7.21subdivision 3, the board may implement the
230	230	7.22wetland replacement program statewide. The
231	231	7.23purchase price paid for acquisition of land or
232	232	7.24perpetual easement must be a fair market value
233	233	7.25as determined by the board. The board may
234	234	7.26enter into agreements with the federal
235	235	7.27government, other state agencies, political
236	236	7.28subdivisions, nonprofit organizations, fee title
237	237	7.29owners, or other qualified private entities to
238	238	7.30acquire wetland replacement credits in
239	239	7.31accordance with Minnesota Rules, chapter
240	240	7.328420. Up to five percent of this appropriation
241	241	7.33may be used for restoration and enhancement.
242	242	7Article 1 Sec. 9.
243	243	25-03139 as introduced03/19/25 REVISOR JSK/AC 9,300,000
244	244	8.1Subd. 3.Reinvest in Minnesota (RIM) Reserve
245	245	8.2Program
246	246	8.3To acquire conservation easements from
247	247	8.4landowners to preserve, restore, create, and
248	248	8.5enhance wetlands and associated uplands of
249	249	8.6prairie and grasslands, and to restore and
250	250	8.7enhance rivers and streams, riparian lands, and
251	251	8.8uplands of prairie and grasslands, in order to
252	252	8.9protect soil and water quality, support fish and
253	253	8.10wildlife habitat, reduce flood damage, and
254	254	8.11provide other public benefits. The provisions
255	255	8.12of Minnesota Statutes, section 103F.515, apply
256	256	8.13to this program. The board shall give priority
257	257	8.14to leveraging federal money by enrolling
258	258	8.15targeted new lands or enrolling
259	259	8.16environmentally sensitive lands that have
260	260	8.17expiring federal conservation agreements. The
261	261	8.18board is authorized to enter into new
262	262	8.19agreements and amend past agreements with
263	263	8.20landowners as required by Minnesota Statutes,
264	264	8.21section 103F.515, subdivision 5, to allow for
265	265	8.22restoration. Up to five percent of this
266	266	8.23appropriation may be used for restoration and
267	267	8.24enhancement.
268	268	8.25Sec. 10. MINNESOTA ZOOLOGICAL
269	269	8.26GARDEN
270	270	3,810,000$8.27Subdivision 1.Total Appropriation
271	271	8.28To the Minnesota Zoological Board for the
272	272	8.29purposes specified in this section.
273	273	3,810,0008.30Subd. 2.Asset Preservation
274	274	8.31For capital asset preservation improvements
275	275	8.32and betterments to infrastructure and exhibits
276	276	8.33at the Minnesota Zoo, to be spent in
277	277	8.34accordance with Minnesota Statutes, section
278	278	8.3516B.307. Notwithstanding the specified uses
279	279	8Article 1 Sec. 10.
280	280	25-03139 as introduced03/19/25 REVISOR JSK/AC 9.1of money under Minnesota Statutes, section
281	281	9.216B.307, this appropriation may be used to
282	282	9.3replace buildings that are in poor condition,
283	283	9.4outdated, and no longer support the work of
284	284	9.5the Minnesota Zoological Garden; to construct
285	285	9.6and renovate trails and roads on the Minnesota
286	286	9.7Zoological Garden site; and to renovate animal
287	287	9.8exhibits to meet modern animal welfare
288	288	9.9standards, address animal and staff safety
289	289	9.10issues, and improve the viewing experience
290	290	9.11for guests.
291	291	9.12Sec. 11. ADMINISTRATION
292	292	5,600,000$9.13Subdivision 1.Total Appropriation
293	293	9.14To the commissioner of administration for the
294	294	9.15purposes specified in this section.
295	295	1,900,000
296	296	9.16Subd. 2.Capital Asset Preservation and
297	297	9.17Replacement Account
298	298	9.18To be spent in accordance with Minnesota
299	299	9.19Statutes, section 16A.632.
300	300	3,700,000
301	301	9.20Subd. 3.Capitol Complex - Physical Security
302	302	9.21Upgrades Phase III
303	303	9.22For the continuation of the design,
304	304	9.23construction, and equipping required to
305	305	9.24upgrade the physical security elements and
306	306	9.25systems for the Capitol Mall and the buildings
307	307	9.26listed in this subdivision, their attached tunnel
308	308	9.27systems, their surrounding grounds, and
309	309	9.28parking facilities as identified in the 2017
310	310	9.29Minnesota State Capitol Complex Physical
311	311	9.30Security Predesign completed by Miller
312	312	9.31Dunwiddie and an updated assessment
313	313	9.32completed in 2022. Upgrades include but are
314	314	9.33not limited to the installation of bollards, blast
315	315	9.34protection, infrastructure security screen walls,
316	316	9.35door access controls, emergency call stations,
317	317	9Article 1 Sec. 11.
318	318	25-03139 as introduced03/19/25 REVISOR JSK/AC 10.1surveillance systems, security kiosks, lighting
319	319	10.2system upgrades, locking devices, and traffic
320	320	10.3and crowd control devices. This appropriation
321	321	10.4includes money for work associated with the
322	322	10.5following buildings: Administration,
323	323	10.6Ag/Health Lab, Andersen, BCA Maryland,
324	324	10.7Capitol, Centennial, Freeman, Governor's
325	325	10.8Residence, Judicial Center, Minnesota History
326	326	10.9Center, Capitol Complex Power Plant and
327	327	10.10Shops, Stassen, Senate, and Veterans Service.
328	328	10.11Sec. 12. AMATEUR SPORTS COMMISSION
329	329	9,500,000$10.12Subdivision 1.Total Appropriation
330	330	10.13To the Minnesota Amateur Sports
331	331	10.14Commission for the purposes specified in this
332	332	10.15section.
333	333	8,600,00010.16Subd. 2.Asset Preservation
334	334	10.17For asset preservation improvements and
335	335	10.18betterments of a capital nature at the National
336	336	10.19Sports Center in Blaine, to be spent in
337	337	10.20accordance with Minnesota Statutes, section
338	338	10.2116B.307.
339	339	900,00010.22Subd. 3.Mighty Ducks
340	340	10.23For grants to local units of government under
341	341	10.24Minnesota Statutes, section 240A.09,
342	342	10.25paragraph (b), to improve indoor air quality
343	343	10.26or eliminate R-22. This appropriation must
344	344	10.27not be used to acquire ice resurfacing or
345	345	10.28edging equipment.
346	346	10.29Sec. 13. MILITARY AFFAIRS
347	347	3,000,000$10.30Subdivision 1.Total Appropriation
348	348	10.31To the adjutant general for the purposes
349	349	10.32specified in this section.
350	350	3,000,00010.33Subd. 2.Duluth Hangar Design
351	351	10Article 1 Sec. 13.
352	352	25-03139 as introduced03/19/25 REVISOR JSK/AC 11.1To predesign and design the construction of
353	353	11.2a new hangar to hold aircraft at the Duluth
354	354	11.3International Airport in support of the 148th
355	355	11.4Fighter Wing of the Minnesota Air National
356	356	11.5Guard to replace existing hangars.
357	357	11.6Sec. 14. PUBLIC SAFETY
358	358	72,887,000$11.7Subdivision 1.Total Appropriation
359	359	11.8To the commissioner of administration for the
360	360	11.9purposes specified in this section.
361	361	68,684,000
362	362	11.10Subd. 2.Southern Minnesota BCA Regional
363	363	11.11Office and Laboratory
364	364	11.12To complete design, construct, furnish, and
365	365	11.13equip a new Bureau of Criminal Apprehension
366	366	11.14regional office and laboratory facility in
367	367	11.15Mankato. This appropriation may also be used
368	368	11.16to design and complete hazardous materials
369	369	11.17abatement. This appropriation may also be
370	370	11.18used to fund the state's portion of the cost to
371	371	11.19extend Bassett Drive to serve the project site.
372	372	4,203,000
373	373	11.20Subd. 3.Bemidji BCA Regional Office and
374	374	11.21Laboratory Expansion
375	375	11.22For predesign, design, and land acquisition
376	376	11.23for the renovation and expansion of the Bureau
377	377	11.24of Criminal Apprehension's Bemidji Regional
378	378	11.25Office and Forensic Science Laboratory.
379	379	11.26Sec. 15. TRANSPORTATION
380	380	4,600,000$11.27Subdivision 1.Total Appropriation
381	381	11.28To the commissioner of transportation for the
382	382	11.29purposes specified in this section.
383	383	1,800,00011.30Subd. 2.Highway Rail Grade Crossings
384	384	11.31To design, construct, and equip the
385	385	11.32replacement of active highway rail grade
386	386	11.33warning devices that have reached the end of
387	387	11Article 1 Sec. 15.
388	388	25-03139 as introduced03/19/25 REVISOR JSK/AC 12.1their useful life or new highway rail grade
389	389	12.2warning devices.
390	390	2,800,00012.3Subd. 3.Port Development Assistance Program
391	391	12.4For grants under Minnesota Statutes, chapter
392	392	12.5457A. Any improvements made with the
393	393	12.6proceeds of these grants must be publicly
394	394	12.7owned.
395	395	12.8Sec. 16. METROPOLITAN COUNCIL
396	396	21,900,000$12.9Subdivision 1.Total Appropriation
397	397	12.10To the Metropolitan Council for the purposes
398	398	12.11specified in this section.
399	399	4,600,000
400	400	12.12Subd. 2.Metropolitan Cities Inflow and
401	401	12.13Infiltration Grants
402	402	12.14For grants to cities and townships within the
403	403	12.15metropolitan area, as defined in Minnesota
404	404	12.16Statutes, section 473.121, subdivision 2, for
405	405	12.17capital improvements in municipal wastewater
406	406	12.18collection systems to reduce the amount of
407	407	12.19inflow and infiltration to the Metropolitan
408	408	12.20Council's metropolitan sanitary sewer disposal
409	409	12.21system. Grants from this appropriation are for
410	410	12.22up to 50 percent of the cost to mitigate inflow
411	411	12.23and infiltration in the publicly owned
412	412	12.24municipal wastewater collection systems. To
413	413	12.25be eligible for a grant, a city or township must
414	414	12.26be identified by the council as a contributor
415	415	12.27of excessive inflow and infiltration in the
416	416	12.28metropolitan disposal system or have a
417	417	12.29measured flow rate within 20 percent of its
418	418	12.30allowable council-determined inflow and
419	419	12.31infiltration limits. The council must award
420	420	12.32grants based on applications from cities or
421	421	12.33townships that identify eligible capital costs
422	422	12.34and include a timeline for inflow and
423	423	12Article 1 Sec. 16.
424	424	25-03139 as introduced03/19/25 REVISOR JSK/AC 13.1infiltration mitigation construction, pursuant
425	425	13.2to guidelines established by the council.
426	426	2,300,00013.3Subd. 3.Metropolitan Regional Parks and Trails
427	427	13.4For the cost of improvements and betterments
428	428	13.5of a capital nature and acquisition by the
429	429	13.6council and metropolitan parks implementing
430	430	13.7agencies as defined in Minnesota Statutes,
431	431	13.8section 473.351, of regional recreational
432	432	13.9open-space lands in accordance with the
433	433	13.10council's policy plan as provided in Minnesota
434	434	13.11Statutes, section 473.147. This appropriation
435	435	13.12must not be used to purchase easements.
436	436	15,000,00013.13Subd. 4.Arterial Bus Rapid Transit
437	437	13.14For real property acquisition, predesign,
438	438	13.15design, engineering, and construction of
439	439	13.16arterial bus rapid transit, including utility
440	440	13.17relocation, demolition, and furnishing and
441	441	13.18equipping facilities for arterial bus rapid transit
442	442	13.19projects. The council must allocate the money
443	443	13.20among projects based on criteria in its
444	444	13.21transitway capital improvement plan
445	445	13.22including: consistency with the council's
446	446	13.23transportation policy plan; project readiness;
447	447	13.24potential current and forecasted ridership;
448	448	13.25expansion of the bus rapid transit system;
449	449	13.26availability of federal or other matching funds;
450	450	13.27coordination with other major projects; and
451	451	13.28additional criteria for priorities otherwise
452	452	13.29specified in state law or rule applicable to bus
453	453	13.30rapid transit, including state law authorizing
454	454	13.31state bond fund appropriations for a bus rapid
455	455	13.32transit project.
456	456	13.33Sec. 17. DIRECT CARE AND TREATMENT
457	457	26,430,000$13.34Subdivision 1.Total Appropriation
458	458	13Article 1 Sec. 17.
459	459	25-03139 as introduced03/19/25 REVISOR JSK/AC 14.1To the commissioner of administration for the
460	460	14.2purposes specified in this section.
461	461	11,430,00014.3Subd. 2.Asset Preservation
462	462	14.4For asset preservation improvements and
463	463	14.5betterments of a capital nature, to be spent in
464	464	14.6accordance with Minnesota Statutes, section
465	465	14.716B.307, at facilities operated by Direct Care
466	466	14.8and Treatment following the department's
467	467	14.9separation from the Department of Human
468	468	14.10Services.
469	469	15,000,000
470	470	14.11Subd. 3.St. Peter Water and Sewer
471	471	14.12Construction
472	472	14.13To design, construct, and equip upgrades and
473	473	14.14the replacement of water, sanitary, and storm
474	474	14.15sewer infrastructure at the St. Peter Campus.
475	475	14.16This appropriation may also be used to design
476	476	14.17and complete hazardous materials abatement.
477	477	14.18Sec. 18. CHILDREN, YOUTH, AND
478	478	14.19FAMILIES
479	479	2,700,000$14.20Subdivision 1.Total Appropriation
480	480	14.21To the commissioner of Children, Youth, and
481	481	14.22Families for the purposes specified in this
482	482	14.23section.
483	483	2,700,00014.24Subd. 2.Early Childhood Facilities Grants
484	484	14.25For grants under Minnesota Statutes, section
485	485	14.26142A.46, to predesign, design, construct,
486	486	14.27renovate, furnish, and equip early childhood
487	487	14.28learning facilities.
488	488	14.29Sec. 19. VETERANS AFFAIRS
489	489	29,344,000$14.30Subdivision 1.Total Appropriation
490	490	14.31To the commissioner of administration for the
491	491	14.32purposes specified in this section.
492	492	14Article 1 Sec. 19.
493	493	25-03139 as introduced03/19/25 REVISOR JSK/AC 11,940,00015.1Subd. 2.Asset Preservation
494	494	15.2For asset preservation improvements and
495	495	15.3betterments of a capital nature at the veterans
496	496	15.4homes in Minneapolis, Hastings, Fergus Falls,
497	497	15.5Silver Bay, and Luverne, and the state veterans
498	498	15.6cemeteries at Little Falls, Preston, and Duluth,
499	499	15.7to be spent in accordance with Minnesota
500	500	15.8Statutes, section 16B.307.
501	501	17,404,000
502	502	15.9Subd. 3.Minneapolis Veterans Home - Building
503	503	15.1016 Remodel
504	504	15.11To design, construct, furnish, and equip the
505	505	15.12renovation of the Minneapolis Veterans Home
506	506	15.13Building 16. This appropriation may also be
507	507	15.14used to design and complete hazardous
508	508	15.15materials abatement.
509	509	15.16Sec. 20. CORRECTIONS
510	510	123,544,000$15.17Subdivision 1.Total Appropriation
511	511	15.18To the commissioner of administration for the
512	512	15.19purposes specified in this section.
513	513	65,574,00015.20Subd. 2.Asset Preservation
514	514	15.21For asset preservation improvement and
515	515	15.22betterments of a capital nature at the
516	516	15.23Minnesota correctional facilities statewide to
517	517	15.24be spent in accordance with Minnesota
518	518	15.25Statutes, section 16B.307.
519	519	57,970,000
520	520	15.26Subd. 3.Minnesota Correctional Facility - Rush
521	521	15.27City
522	522	15.28To update predesign, design, construct,
523	523	15.29furnish, and equip a new building addition and
524	524	15.30to design, renovate, and equip existing space
525	525	15.31to provide incarcerated persons services at the
526	526	15.32Rush City Correctional Facility. This
527	527	15.33appropriation may also be used to design and
528	528	15.34complete hazardous materials abatement.
529	529	15Article 1 Sec. 20.
530	530	25-03139 as introduced03/19/25 REVISOR JSK/AC 16.1Subd. 4.Unspent Appropriations
531	531	16.2The unspent portion of an appropriation for a
532	532	16.3Department of Corrections project in this
533	533	16.4section that is complete, upon written notice
534	534	16.5to the commissioner of management and
535	535	16.6budget, is available for asset preservation
536	536	16.7under Minnesota Statutes, section 16B.307.
537	537	16.8Minnesota Statutes, section 16A.642, applies
538	538	16.9from the date of the original appropriation to
539	539	16.10the unspent amount transferred.
540	540	16.11Sec. 21. EMPLOYMENT AND ECONOMIC
541	541	16.12DEVELOPMENT
542	542	4,500,000$16.13Subdivision 1.Total Appropriation
543	543	16.14To the commissioner of employment and
544	544	16.15economic development for the purposes
545	545	16.16specified in this section.
546	546	2,700,000
547	547	16.17Subd. 2.Greater Minnesota Business
548	548	16.18Development Public Infrastructure
549	549	16.19For grants under Minnesota Statutes, section
550	550	16.20116J.431.
551	551	1,800,000
552	552	16.21Subd. 3.Transportation Economic Development
553	553	16.22Infrastructure
554	554	16.23For grants under Minnesota Statutes, section
555	555	16.24116J.436.
556	556	16.25Sec. 22. PUBLIC FACILITIES AUTHORITY
557	557	99,012,000$16.26Subdivision 1.Total Appropriation
558	558	16.27To the Public Facilities Authority for the
559	559	16.28purposes specified in this section.
560	560	39,000,000
561	561	16.29Subd. 2.State Match for Federal Grants to State
562	562	16.30Revolving Loan Programs
563	563	16.31To match federal capitalization grants for the
564	564	16.32clean water revolving fund under Minnesota
565	565	16.33Statutes, section 446A.07, and the drinking
566	566	16.34water revolving fund under Minnesota
567	567	16Article 1 Sec. 22.
568	568	25-03139 as introduced03/19/25 REVISOR JSK/AC 17.1Statutes, section 446A.081. This appropriation
569	569	17.2must be used for qualified capital projects.
570	570	23,485,00017.3Subd. 3.Water Infrastructure Funding Program
571	571	17.4(a) For grants to eligible municipalities under
572	572	17.5the water infrastructure funding program under
573	573	17.6Minnesota Statutes, section 446A.072.
574	574	17.7(b) $10,000,000 is for wastewater projects
575	575	17.8listed on the Pollution Control Agency's
576	576	17.9project priority list in the fundable range under
577	577	17.10the clean water revolving fund program.
578	578	17.11(c) $13,485,000 is for drinking water projects
579	579	17.12listed on the commissioner of health's project
580	580	17.13priority list in the fundable range under the
581	581	17.14drinking water revolving fund program.
582	582	17.15(d) After all eligible projects under paragraph
583	583	17.16(b) or (c) have been funded in a fiscal year,
584	584	17.17the Public Facilities Authority may transfer
585	585	17.18any remaining, uncommitted money to eligible
586	586	17.19projects under a program defined in paragraph
587	587	17.20(b) or (c) based on that program's project
588	588	17.21priority list.
589	589	18,527,000
590	590	17.22Subd. 4.Point Source Implementation Grants
591	591	17.23Program
592	592	17.24For grants to eligible municipalities under the
593	593	17.25point source implementation grants program
594	594	17.26under Minnesota Statutes, section 446A.073.
595	595	17.27This appropriation must be used for qualified
596	596	17.28capital projects.
597	597	18,000,000
598	598	17.29Subd. 5.Emerging Contaminants Grant
599	599	17.30Program
600	600	17.31For grants to eligible municipalities under the
601	601	17.32Emerging Contaminants Grant Program under
602	602	17.33Minnesota Statutes, section 446A.082.
603	603	17Article 1 Sec. 22.
604	604	25-03139 as introduced03/19/25 REVISOR JSK/AC 7,000,000$
605	605	18.1Sec. 23. MINNESOTA HOUSING FINANCE
606	606	18.2AGENCY
607	607	18.3To the Minnesota Housing Finance Agency
608	608	18.4to finance the costs of rehabilitation to
609	609	18.5preserve public housing under Minnesota
610	610	18.6Statutes, section 462A.202, subdivision 3a.
611	611	18.7For purposes of this section, "public housing"
612	612	18.8means housing for low-income persons and
613	613	18.9households financed by the federal
614	614	18.10government and publicly owned. Priority may
615	615	18.11be given to proposals that maximize nonstate
616	616	18.12resources to finance the capital costs and
617	617	18.13requests that prioritize health, safety, and
618	618	18.14energy improvements. The priority in
619	619	18.15Minnesota Statutes, section 462A.202,
620	620	18.16subdivision 3a, for projects to increase the
621	621	18.17supply of affordable housing and the
622	622	18.18restrictions of Minnesota Statutes, section
623	623	18.19462A.202, subdivision 7, do not apply to this
624	624	18.20appropriation.
625	625	18.21Sec. 24. MINNESOTA HISTORICAL
626	626	18.22SOCIETY
627	627	6,115,000$18.23Subdivision 1.Total Appropriation
628	628	18.24To the Minnesota Historical Society for the
629	629	18.25purposes specified in this section.
630	630	5,215,00018.26Subd. 2.Historic Sites Asset Preservation
631	631	18.27For capital improvements and betterments at
632	632	18.28state historic sites, buildings, landscaping at
633	633	18.29historic buildings, exhibits, markers, and
634	634	18.30monuments, to be spent in accordance with
635	635	18.31Minnesota Statutes, section 16B.307. The
636	636	18.32society shall determine project priorities as
637	637	18.33appropriate based on need.
638	638	900,00018.34Subd. 3.County and Local Preservation Grants
639	639	18Article 1 Sec. 24.
640	640	25-03139 as introduced03/19/25 REVISOR JSK/AC 19.1For grants to county and local jurisdictions as
641	641	19.2matching money for historic preservation
642	642	19.3projects of a capital nature, as provided in
643	643	19.4Minnesota Statutes, section 138.0525.
644	644	19.5 Sec. 25. BOND SALE AUTHORIZATION.
645	645	19.6 To provide the money appropriated in this act from the bond proceeds fund, and to
646	646	19.7provide for expenses authorized in Minnesota Statutes, section 16A.641, subdivision 8,
647	647	19.8paragraph (c), the commissioner of management and budget shall sell and issue bonds of
648	648	19.9the state in an amount up to $790,000,000 in the manner, upon the terms, and with the effect
649	649	19.10prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
650	650	19.11Constitution, article XI, sections 4 to 7.
651	651	19.12Sec. 26. BOND SALE SCHEDULE.
652	652	19.13 The commissioner of management and budget shall schedule the sale of state general
653	653	19.14obligation bonds so that, during the biennium ending June 30, 2027, no more than
654	654	19.15$1,228,858,000 will need to be transferred from the general fund to the state bond fund to
655	655	19.16pay principal and interest due and to become due on outstanding state general obligation
656	656	19.17bonds. During the biennium, before each sale of state general obligation bonds, the
657	657	19.18commissioner of management and budget shall calculate the amount of debt service payments
658	658	19.19needed on bonds previously issued and shall estimate the amount of debt service payments
659	659	19.20that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
660	660	19.21amount of bonds scheduled to be sold so as to remain within the limit set by this section.
661	661	19.22The amount needed to make the debt service payments is appropriated from the general
662	662	19.23fund as provided in Minnesota Statutes, section 16A.641.
663	663	19.24Sec. 27. EFFECTIVE DATE.
664	664	19.25 This article is effective the day following final enactment.
665	665	19.26 ARTICLE 2
666	666	19.27 MISCELLANEOUS
667	667	19.28Section 1. Minnesota Statutes 2024, section 16A.501, is amended to read:
668	668	19.29 16A.501 REPORT ON EXPENDITURE OF BOND PROCEEDS.
669	669	19.30 (a) The commissioner of management and budget must report annually to the legislature
670	670	19.31on the degree to which entities receiving appropriations for capital projects in previous
671	671	19Article 2 Section 1.
672	672	25-03139 as introduced03/19/25 REVISOR JSK/AC 20.1omnibus capital improvement acts have encumbered or expended that money. The report
673	673	20.2must be submitted to the chairs of the house of representatives Ways and Means Committee
674	674	20.3and the senate Finance Committee by January 1 15 of each year.
675	675	20.4 (b) The commissioner of management and budget must report by January 15 of each
676	676	20.5year to the chairs and ranking minority members of the house of representatives and senate
677	677	20.6committees with jurisdiction over capital investment, finance, and ways and means on the
678	678	20.7amount and percentage of each agency's capital appropriation that is used to pay for the
679	679	20.8costs of staff directly attributable to capital programs or projects funded with state general
680	680	20.9obligation bond proceeds. The report must also include information on agencies' compliance
681	681	20.10with the commissioner's policies governing the use of general obligation bond proceeds to
682	682	20.11pay staff costs and any changes to the commissioner's policies.
683	683	20.12Sec. 2. [16B.851] STATE BUILDING RENEWABLE ENERGY, STORAGE, AND
684	684	20.13ELECTRIC VEHICLE ACCOUNT.
685	685	20.14 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
686	686	20.15the meanings given.
687	687	20.16 (b) "State agency" has the meaning given in section 16B.321, subdivision 5, and, in
688	688	20.17addition to the agencies listed in section 15.01, includes the Office of Higher Education,
689	689	20.18Housing Finance Agency, Pollution Control Agency, and Bureau of Mediation Services. It
690	690	20.19also includes agencies, boards, commissions, committees, councils, and authorities as defined
691	691	20.20in section 15.012.
692	692	20.21 (c) "State building" means a building or facility owned by the state of Minnesota.
693	693	20.22 (d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1,
694	694	20.23paragraph (c), and includes thermal energy.
695	695	20.24 (e) "Renewable energy improvement" means the predesign, design, acquisition,
696	696	20.25construction, or installation of a renewable energy production system or energy storage
697	697	20.26equipment or system, and associated infrastructure and facilities that is designed to result
698	698	20.27in a demand-side net reduction in energy use by the state building's electrical, heating,
699	699	20.28ventilating, air-conditioning, or hot water systems.
700	700	20.29 (f) "Energy storage" means the predesign, design, acquisition, construction, or installation
701	701	20.30of technology which stores and delivers electric or thermal energy.
702	702	20.31 (g) "Electric vehicle service equipment" or "EVSE" means electric vehicle service
703	703	20.32equipment, including charging equipment and associated infrastructure and site upgrades.
704	704	20Article 2 Sec. 2.
705	705	25-03139 as introduced03/19/25 REVISOR JSK/AC 21.1 Subd. 2.Establishment.A state building renewable energy, storage, and electric vehicle
706	706	21.2account is established in the special revenue fund to provide money to:
707	707	21.3 (1) state agencies to design, construct, and equip renewable energy improvement and
708	708	21.4renewable energy storage projects at state buildings;
709	709	21.5 (2) state agencies to purchase state fleet electric vehicles in accordance with section
710	710	21.616C.135;
711	711	21.7 (3) state agencies to purchase and install EVSE;
712	712	21.8 (4) the commissioner of administration to manage the program;
713	713	21.9 Subd. 3.Account management.The commissioner shall manage and administer the
714	714	21.10state building renewable energy, storage, and electric vehicle account.
715	715	21.11 Subd. 4.Accepting funds.(a) The commissioner or state agency designated by the
716	716	21.12commissioner shall be responsible for making application to the federal government on
717	717	21.13behalf of the state of Minnesota for state projects eligible for elective payments under
718	718	21.14sections 6417 and 6418 of the Internal Revenue Code, as added by Public Law 117-169.
719	719	21.15 (b) The commissioner may apply for, receive, and expend money made available from
720	720	21.16federal, state, or other sources for the purposes of carrying out the duties in this section.
721	721	21.17 (c) Notwithstanding section 16A.72, all funds received under this subdivision shall be
722	722	21.18deposited into the state building renewable energy, storage, and electric vehicle account
723	723	21.19and appropriated to the commissioner for the purposes of subdivision 2 and as permitted
724	724	21.20under this section.
725	725	21.21 (d) Money in the state building renewable energy, storage, and electric vehicle account
726	726	21.22does not cancel and is available until expended.
727	727	21.23 Subd. 5.Application.A state agency applying for state building renewable energy,
728	728	21.24storage, EVSE, and electric fleet vehicle funds must submit an application to the
729	729	21.25commissioner on a form, in the manner, and at the time prescribed by the commissioner.
730	730	21.26 Subd. 6.Treatment of certain payments received from federal government.(a)
731	731	21.27Federal payments received for eligible renewable energy improvement and storage projects,
732	732	21.28and EVSE projects, made with appropriations from general obligation bonds, may be
733	733	21.29transferred to the state bond fund if consistent with federal treasury regulations.
734	734	21.30 (b) Federal payments received for eligible electric fleet vehicle purchases by the
735	735	21.31Department of Administration's fleet division shall be transferred to the motor pool revolving
736	736	21.32account established in section 16B.54, subdivision 8.
737	737	21Article 2 Sec. 2.
738	738	25-03139 as introduced03/19/25 REVISOR JSK/AC 22.1 (c) Federal payments received for eligible electric fleet vehicle purchases made directly
739	739	22.2by a state agency shall be transferred to the fund from which the purchase was made.
740	740	22.3 Sec. 3. Minnesota Statutes 2024, section 16B.97, subdivision 1, is amended to read:
741	741	22.4 Subdivision 1.Grant agreement.(a) A grant agreement is a written instrument or
742	742	22.5electronic document defining a legal relationship between a granting agency and a grantee
743	743	22.6when the principal purpose of the relationship is to transfer cash or something of value to
744	744	22.7the recipient to support a public purpose authorized by law instead of acquiring by
745	745	22.8professional or technical contract, purchase, lease, or barter property or services for the
746	746	22.9direct benefit or use of the granting agency.
747	747	22.10 (b) This section does not apply to general obligation grants as defined by section 16A.695
748	748	22.11and, capital project grants to political subdivisions as defined by section 16A.86, or capital
749	749	22.12project grants otherwise subject to section 16A.642, which grants shall be subject to the
750	750	22.13policies and procedures adopted by the commissioner of management and budget or otherwise
751	751	22.14specified in applicable law.
752	752	22.15Sec. 4. Minnesota Statutes 2024, section 16B.98, subdivision 1, is amended to read:
753	753	22.16 Subdivision 1.Limitation.(a) As a condition of receiving a grant from an appropriation
754	754	22.17of state funds, the recipient of the grant must agree to minimize administrative costs. The
755	755	22.18granting agency is responsible for negotiating appropriate limits to these costs so that the
756	756	22.19state derives the optimum benefit for grant funding.
757	757	22.20 (b) This section does not apply to general obligation grants as defined by section 16A.695
758	758	22.21and also, capital project grants to political subdivisions as defined by section 16A.86, or
759	759	22.22capital project grants otherwise subject to section 16A.642.
760	760	22.23Sec. 5. [115B.245] STATEWIDE DRINKING WATER CONTAMINATION
761	761	22.24MITIGATION PROGRAM.
762	762	22.25 Subdivision 1.Program established.The commissioner may design and construct, or
763	763	22.26may make grants to eligible grantees as provided under this section to design and construct,
764	764	22.27projects to provide safe drinking water, due to contamination of drinking water by hazardous
765	765	22.28substances, through projects such as treatment systems, new drinking water wells, sealing
766	766	22.29contaminated wells, and connecting to alternative drinking water sources. The criteria for
767	767	22.30selecting projects must follow the criteria and rules established under section 115B.17.
768	768	22.31 Subd. 2.Definitions.(a) For purposes of this section, the following terms have the
769	769	22.32meanings given.
770	770	22Article 2 Sec. 5.
771	771	25-03139 as introduced03/19/25 REVISOR JSK/AC 23.1 (b) "Eligible grantee" means:
772	772	23.2 (1) for projects funded from the statewide drinking water contamination mitigation
773	773	23.3account in the bond proceeds fund, a city, county, school district, joint powers board, or
774	774	23.4other political subdivision of the state; and
775	775	23.5 (2) for projects funded from the statewide drinking water contamination mitigation
776	776	23.6account in the general fund, any person.
777	777	23.7 (c) "Private infrastructure projects" means improvements made to nonpublicly owned
778	778	23.8infrastructure such as sealing of private wells, connecting private properties to water mains,
779	779	23.9water service fees, treatment systems, and drilling new private wells in an unimpaired
780	780	23.10drinking water aquifer.
781	781	23.11 (d) "Public infrastructure projects" means improvements made to publicly owned
782	782	23.12infrastructure such as water main installation, public water system improvements, treatment
783	783	23.13systems, and associated improvements.
784	784	23.14 Subd. 3.Accounts.(a) A statewide drinking water contamination mitigation account is
785	785	23.15established in the bond proceeds fund. The account consists of state bond proceeds
786	786	23.16appropriated to the commissioner for this purpose. Money in the account may only be
787	787	23.17expended to acquire land or an interest in land and predesign, design, construct, and improve
788	788	23.18public infrastructure projects that further the purposes of this section. Notwithstanding
789	789	23.19section 115B.17, subdivision 6 or 16, any money recovered in a civil action for a project
790	790	23.20financed with bonds under this section shall be transferred to the commissioner of
791	791	23.21management and budget and applied toward principal and interest on outstanding bonds.
792	792	23.22 (b) A statewide drinking water contamination mitigation account is established in the
793	793	23.23general fund. The account consists of money as provided by law and any other money
794	794	23.24donated, allotted, transferred, or otherwise provided to the account. Money in the account
795	795	23.25may only be expended on public or private infrastructure projects that further the purposes
796	796	23.26of this section.
797	797	23.27Sec. 6. Minnesota Statutes 2024, section 116.182, subdivision 5, is amended to read:
798	798	23.28 Subd. 5.Rules.(a) The agency shall adopt rules for the administration of the financial
799	799	23.29assistance program. For wastewater treatment projects, the rules must include:
800	800	23.30 (1) application requirements;
801	801	23Article 2 Sec. 6.
802	802	25-03139 as introduced03/19/25 REVISOR JSK/AC 24.1 (2) criteria for the ranking of projects in order of priority based on factors including the
803	803	24.2type of project and the degree of environmental impact, and scenic and wild river standards;
804	804	24.3and
805	805	24.4 (3) criteria for determining essential project components.
806	806	24.5 (b) Notwithstanding any provision in Minnesota Rules, chapter 7077, to the contrary,
807	807	24.6for purposes of Minnesota Rules, parts 7077.0117, 7077.0118, and 7077.0119, the
808	808	24.7commissioner must assign 40 points if a municipality is proposing a project to address
809	809	24.8emerging contaminants, as defined by the United States Environmental Protection Agency.
810	810	24.9This paragraph expires June 30, 2030.
811	811	24.10Sec. 7. Minnesota Statutes 2024, section 142A.46, subdivision 1, is amended to read:
812	812	24.11 Subdivision 1.Grant authority.The commissioner may make grants to state agencies
813	813	24.12and political subdivisions to construct or rehabilitate facilities for early childhood programs,
814	814	24.13crisis nurseries, or parenting time centers. The following requirements apply:
815	815	24.14 (1) The facilities must be owned by the state or a political subdivision, but may be leased
816	816	24.15under section 16A.695 to organizations that operate the programs. The commissioner must
817	817	24.16prescribe the terms and conditions of the leases.
818	818	24.17 (2) A grant for an individual facility must not exceed $500,000 for each program that
819	819	24.18is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three
820	820	24.19programs or more. Programs include Head Start, School Readiness, Early Childhood Family
821	821	24.20Education, licensed child care, and other early childhood intervention programs.
822	822	24.21 (3) State appropriations must be matched on a 50 25 percent basis with nonstate funds.
823	823	24.22The matching requirement must apply program wide and not to individual grants.
824	824	24.23Sec. 8. Minnesota Statutes 2024, section 446A.07, subdivision 8, is amended to read:
825	825	24.24 Subd. 8.Other uses of revolving fund.(a) The clean water revolving fund may be used
826	826	24.25as provided in title VI of the Federal Water Pollution Control Act, including the following
827	827	24.26uses:
828	828	24.27 (1) to buy or refinance the debt obligation of governmental units for treatment works
829	829	24.28where debt was incurred and construction begun after March 7, 1985, at or below market
830	830	24.29rates;
831	831	24.30 (2) to guarantee or purchase insurance for local obligations to improve credit market
832	832	24.31access or reduce interest rates;
833	833	24Article 2 Sec. 8.
834	834	25-03139 as introduced03/19/25 REVISOR JSK/AC 25.1 (3) to provide a source of revenue or security for the payment of principal and interest
835	835	25.2on revenue or general obligation bonds issued by the authority if the bond proceeds are
836	836	25.3deposited in the fund;
837	837	25.4 (4) to provide loan guarantees, loans, or set-aside for similar revolving funds established
838	838	25.5by a governmental unit other than state agencies, or state agencies under sections 17.117,
839	839	25.6103F.725, subdivision 1a, and 116J.617;
840	840	25.7 (5) to earn interest on fund accounts; and
841	841	25.8 (6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency
842	842	25.9of administering the fund and conducting activities required under the Federal Water Pollution
843	843	25.10Control Act, including water quality management planning under section 205(j) of the act
844	844	25.11and water quality standards continuing planning under section 303(e) of the act;.
845	845	25.12 (b) The clean water revolving fund may be used to provide additional subsidization as
846	846	25.13permitted under the Federal Water Pollution Control Act and other federal laws to provide
847	847	25.14principal forgiveness or grants:
848	848	25.15 (7) to provide principal forgiveness or grants to the extent permitted under the Federal
849	849	25.16Water Pollution Control Act and other federal law, (1) based on the affordability criteria
850	850	25.17and requirements established for the wastewater water infrastructure funding program under
851	851	25.18section 446A.072; and
852	852	25.19 (8) to provide loans, principal forgiveness, or grants to the extent permitted under the
853	853	25.20Federal Water Pollution Control Act and other federal law (2) for 25 percent of project costs
854	854	25.21up to a maximum of $1,000,000 for projects to address green infrastructure, water or energy
855	855	25.22efficiency improvements, or other environmentally innovative activities.; and
856	856	25.23 (3) for 50 percent of project costs up to a maximum of $3,000,000 for projects that
857	857	25.24address emerging contaminants as defined by the United States Environmental Protection
858	858	25.25Agency.
859	859	25.26 (b) Amounts spent under paragraph (a), clause (6), may not exceed the amount allowed
860	860	25.27under the Federal Water Pollution Control Act.
861	861	25.28 (c) Principal forgiveness or grants provided under paragraph (a), clause (8), may not
862	862	25.29exceed 25 percent of the eligible project costs as determined by the Pollution Control Agency
863	863	25.30for project components directly related to green infrastructure, water or energy efficiency
864	864	25.31improvements, or other environmentally innovative activities, up to a maximum of
865	865	25.32$1,000,000.
866	866	25Article 2 Sec. 8.
867	867	25-03139 as introduced03/19/25 REVISOR JSK/AC 26.1 Sec. 9. Minnesota Statutes 2024, section 446A.072, subdivision 5a, is amended to read:
868	868	26.2 Subd. 5a.Type and amount of assistance.(a) For a governmental unit receiving grant
869	869	26.3funding from the USDA/RECD, the authority may provide assistance in the form of a grant
870	870	26.4of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental
871	871	26.5unit may not receive a grant under this paragraph for more than $5,000,000 $10,000,000
872	872	26.6per project or $20,000 per existing connection, whichever is less, unless specifically approved
873	873	26.7by law.
874	874	26.8 (b) For a governmental unit receiving a loan from the clean water revolving fund under
875	875	26.9section 446A.07, the authority may provide assistance under this section in the form of a
876	876	26.10grant if the average annual residential wastewater system cost after completion of the project
877	877	26.11would otherwise exceed 1.4 percent of the median household income of the project service
878	878	26.12area. In determining whether the average annual residential wastewater system cost would
879	879	26.13exceed 1.4 percent, the authority must consider the total costs associated with building,
880	880	26.14operating, and maintaining the wastewater system, including existing wastewater debt
881	881	26.15service, debt service on the eligible project cost, and operation and maintenance costs. Debt
882	882	26.16service costs for the proposed project are calculated based on the maximum loan term
883	883	26.17permitted for the clean water revolving fund loan under section 446A.07, subdivision 7.
884	884	26.18The amount of the grant is equal to 80 percent of the amount needed to reduce the average
885	885	26.19annual residential wastewater system cost to 1.4 percent of median household income in
886	886	26.20the project service area, to a maximum of $5,000,000 $10,000,000 per project or $20,000
887	887	26.21per existing connection, whichever is less, unless specifically approved by law. The eligible
888	888	26.22project cost is determined by multiplying the total project costs minus any other grants by
889	889	26.23the essential project component percentage calculated under subdivision 3, paragraph (c),
890	890	26.24clause (1). In no case may the amount of the grant exceed 80 percent of the eligible project
891	891	26.25cost.
892	892	26.26 (c) For a governmental unit receiving a loan from the drinking water revolving fund
893	893	26.27under section 446A.081, the authority may provide assistance under this section in the form
894	894	26.28of a grant if the average annual residential drinking water system cost after completion of
895	895	26.29the project would otherwise exceed 1.2 percent of the median household income of the
896	896	26.30project service area. In determining whether the average annual residential drinking water
897	897	26.31system cost would exceed 1.2 percent, the authority must consider the total costs associated
898	898	26.32with building, operating, and maintaining the drinking water system, including existing
899	899	26.33drinking water debt service, debt service on the eligible project cost, and operation and
900	900	26.34maintenance costs. Debt service costs for the proposed project are calculated based on the
901	901	26.35maximum loan term permitted for the drinking water revolving fund loan under section
902	902	26Article 2 Sec. 9.
903	903	25-03139 as introduced03/19/25 REVISOR JSK/AC 27.1446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of
904	904	27.2the amount needed to reduce the average annual residential drinking water system cost to
905	905	27.31.2 percent of median household income in the project service area, to a maximum of
906	906	27.4$5,000,000 $10,000,000 per project or $20,000 per existing connection, whichever is less,
907	907	27.5unless specifically approved by law. The eligible project cost is determined by multiplying
908	908	27.6the total project costs minus any other grants by the essential project component percentage
909	909	27.7calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the
910	910	27.8grant exceed 80 percent of the eligible project cost.
911	911	27.9 (d) Notwithstanding the limits in paragraphs (a), (b), and (c), for a governmental unit
912	912	27.10receiving supplemental assistance under this section after January 1, 2002, if the authority
913	913	27.11determines that the governmental unit's construction and installation costs are significantly
914	914	27.12increased due to geological conditions of crystalline bedrock or karst areas and discharge
915	915	27.13limits that are more stringent than secondary treatment, the maximum award under this
916	916	27.14section shall not be more than $25,000 per existing connection.
917	917	27.15Sec. 10. Minnesota Statutes 2024, section 446A.073, subdivision 1, is amended to read:
918	918	27.16 Subdivision 1.Program established.When money is appropriated for grants under this
919	919	27.17program, the authority shall award grants up to a maximum of $7,000,000 $12,000,000 to
920	920	27.18governmental units to cover 80 percent of the cost of water infrastructure projects made
921	921	27.19necessary by:
922	922	27.20 (1) a wasteload reduction prescribed under a total maximum daily load plan required by
923	923	27.21section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
924	924	27.22 (2) a phosphorus concentration or mass limit which requires discharging one milligram
925	925	27.23per liter or less at permitted design flow which is incorporated into a permit issued by the
926	926	27.24Pollution Control Agency;
927	927	27.25 (3) any other water quality-based effluent limit established under section 115.03,
928	928	27.26subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution
929	929	27.27Control Agency that exceeds secondary treatment limits; or
930	930	27.28 (4) a total nitrogen concentration or mass limit that requires discharging ten milligrams
931	931	27.29per liter or less at permitted design flow.
932	932	27.30Sec. 11. Minnesota Statutes 2024, section 446A.081, subdivision 9, is amended to read:
933	933	27.31 Subd. 9.Other uses of fund.(a) The drinking water revolving loan fund may be used
934	934	27.32as provided in the act, including the following uses:
935	935	27Article 2 Sec. 11.
936	936	25-03139 as introduced03/19/25 REVISOR JSK/AC 28.1 (1) to buy or refinance the debt obligations, at or below market rates, of public water
937	937	28.2systems for drinking water systems, where the debt was incurred after the date of enactment
938	938	28.3of the act, for the purposes of construction of the necessary improvements to comply with
939	939	28.4the national primary drinking water regulations under the federal Safe Drinking Water Act;
940	940	28.5 (2) to purchase or guarantee insurance for local obligations to improve credit market
941	941	28.6access or reduce interest rates;
942	942	28.7 (3) to provide a source of revenue or security for the payment of principal and interest
943	943	28.8on revenue or general obligation bonds issued by the authority if the bond proceeds are
944	944	28.9deposited in the fund;
945	945	28.10 (4) to provide loans or loan guarantees for similar revolving funds established by a
946	946	28.11governmental unit or state agency;
947	947	28.12 (5) to earn interest on fund accounts;
948	948	28.13 (6) to pay the reasonable costs incurred by the authority, the Department of Employment
949	949	28.14and Economic Development, and the Department of Health for conducting activities as
950	950	28.15authorized and required under the act up to the limits authorized under the act; and
951	951	28.16 (7) to develop and administer programs for water system supervision, source water
952	952	28.17protection, and related programs required under the act;.
953	953	28.18 (b) The drinking water revolving fund may be used to provide additional subsidization
954	954	28.19as permitted under the federal Safe Drinking Water Act and other federal law to
955	955	28.20disadvantaged communities to provide principal forgiveness or grants:
956	956	28.21 (8) to provide principal forgiveness or grants to the extent permitted under the federal
957	957	28.22Safe Drinking Water Act and other federal law, (1) based on the affordability criteria and
958	958	28.23requirements established for drinking water projects under the water infrastructure funding
959	959	28.24program under section 446A.072;
960	960	28.25 (9) to provide loans, principal forgiveness or grants to the extent permitted under the
961	961	28.26federal Safe Drinking Water Act and other federal law to address green infrastructure, water
962	962	28.27or energy efficiency improvements, or other environmentally innovative activities;
963	963	28.28 (10) to provide principal forgiveness, or grants (2) for 80 percent of project costs up to
964	964	28.29a maximum of $100,000 for projects needed to comply with national primary drinking water
965	965	28.30standards for an existing nonmunicipal community public water system;
966	966	28Article 2 Sec. 11.
967	967	25-03139 as introduced03/19/25 REVISOR JSK/AC 29.1 (11) to provide principal forgiveness or grants (3) to the extent permitted under the
968	968	29.2federal Safe Drinking Water Act and other federal laws for projects to replace the privately
969	969	29.3owned portion of drinking water lead service lines; and
970	970	29.4 (12) to provide principal forgiveness or grants (4) to the extent permitted under the
971	971	29.5federal Safe Drinking Water Act and other federal laws for 50 percent of project costs up
972	972	29.6to a maximum of $3,000,000 for projects to address emerging contaminants in drinking
973	973	29.7water as defined by the United States Environmental Protection Agency.; and
974	974	29.8 (5) for 50 percent of project costs up to a maximum of $3,000,000 for projects needed
975	975	29.9to comply with a maximum contaminant level as defined by the federal Safe Drinking Water
976	976	29.10Act.
977	977	29.11 (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not
978	978	29.12exceed 25 percent of the eligible project costs as determined by the Department of Health
979	979	29.13for project components directly related to green infrastructure, water or energy efficiency
980	980	29.14improvements, or other environmentally innovative activities, up to a maximum of
981	981	29.15$1,000,000.
982	982	29.16Sec. 12. [446A.082] EMERGING CONTAMINANTS GRANTS.
983	983	29.17 Subdivision 1.Program established.When money is appropriated under this program,
984	984	29.18the authority shall award grants to a governmental unit for up to 80 percent of the cost of
985	985	29.19drinking water infrastructure projects to address a confirmed exceedance of a health advisory
986	986	29.20level for a drinking water emerging contaminant as defined by the Environmental Protection
987	987	29.21Agency.
988	988	29.22 Subd. 2.Eligibility.An eligible project for this program must:
989	989	29.23 (1) be listed on the Drinking Water Revolving Fund Project Priority List per Minnesota
990	990	29.24Rules, part 4720.9000;
991	991	29.25 (2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
992	992	29.26 (3) be certified by the Department of Health per Minnesota Rules, part 4720.9060.
993	993	29.27 Subd. 3.Application and reservation of funds.Grant applications to the authority may
994	994	29.28be made at any time on forms prescribed by the authority, including a project schedule and
995	995	29.29cost estimate for the work necessary to comply with the purpose described in subdivision
996	996	29.301. The Department of Health shall review and certify to the authority those projects that
997	997	29.31have plans and specifications approved under Minnesota Rules, part 4720.9060. When a
998	998	29.32project is certified by the Department of Health, the authority shall reserve grant funds for
999	999	29Article 2 Sec. 12.
1000	1000	25-03139 as introduced03/19/25 REVISOR JSK/AC 30.1the project in the order listed on the Department of Health's project priority list and in an
1001	1001	30.2amount based on the cost estimate in the Department of Health certification or the as-bid
1002	1002	30.3costs, whichever is less.
1003	1003	30.4 Subd. 4.Grant amount.The grant amount for an eligible project under this program
1004	1004	30.5shall be for an amount up to 80 percent of the eligible as-bid project cost up to $12,000,000,
1005	1005	30.6minus the amount of federal emerging contaminant funds the project receives under section
1006	1006	30.7446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant
1007	1007	30.8funds.
1008	1008	30.9 Subd. 5.Grant approval.The authority shall award a grant for an eligible project only
1009	1009	30.10after:
1010	1010	30.11 (1) the applicant has submitted the as-bid project cost;
1011	1011	30.12 (2) the Department of Health has certified the grant eligible portion of the project; and
1012	1012	30.13 (3) the authority has determined that the additional financing necessary to complete the
1013	1013	30.14project has been committed from other sources.
1014	1014	30.15 Subd. 6.Grant disbursement.Grant funds shall be disbursed by the authority as eligible
1015	1015	30.16project costs are incurred by the governmental unit and in accordance with a project financing
1016	1016	30.17agreement and applicable state laws and rules governing the disbursements.
1017	1017	30.18 Subd. 7.Recovering expenses.Money granted to a grantee under this program may be
1018	1018	30.19recovered in a civil action brought by the attorney general against any person who may be
1019	1019	30.20liable under section 115B.04 or any other law. To be eligible for recovery, the expenses
1020	1020	30.21must be reasonable and necessary expenses, including all response costs, and administrative
1021	1021	30.22and legal expenses. The authority, Department of Health, and Pollution Control Agency's
1022	1022	30.23certification of expenses shall be prima facie evidence that the expenses are reasonable and
1023	1023	30.24necessary. Any money recovered in a civil action for a project financed with bonds under
1024	1024	30.25this section shall be transferred to the commissioner of management and budget for deposit
1025	1025	30.26in the state bond fund and applied toward principal and interest on outstanding bonds.
1026	1026	30.27Sec. 13. Laws 2013, chapter 143, article 12, section 21, is amended to read:
1027	1027	30.28Sec. 21. LEGISLATIVE OFFICE FACILITIES.
1028	1028	30.29 (a) The commissioner of administration may enter into a long-term lease-purchase
1029	1029	30.30agreement for a term of up to 25 years, to predesign, design, construct, and equip offices,
1030	1030	30.31hearing rooms, and parking facilities for legislative and other functions. The facility must
1031	1031	30.32be located on the block bounded by Sherburne Avenue on the north, Park Street on the west,
1032	1032	30Article 2 Sec. 13.
1033	1033	25-03139 as introduced03/19/25 REVISOR JSK/AC 31.1University Avenue on the south, and North Capitol Boulevard on the east. The legislative
1034	1034	31.2office facility must provide office accommodations for all senators and senate staff who do
1035	1035	31.3not have offices in the Capitol building and on-site parking facilities for all members and
1036	1036	31.4staff and disabled visitors to senate offices. A parking structure may also be built on the
1037	1037	31.5state-owned land located in the block bounded by Sherburne Avenue on the north, Park
1038	1038	31.6Street on the east, University Avenue on the south, and Rice Street on the west. The
1039	1039	31.7commissioner of management and budget may issue lease revenue bonds or certificates of
1040	1040	31.8participation associated with the lease-purchase agreement. The lease-purchase agreements
1041	1041	31.9must not be terminated, except for nonappropriation of money. The lease-purchase
1042	1042	31.10agreements must provide the state with a unilateral right to purchase the leased premises at
1043	1043	31.11specified times for specified amounts. The lease-purchase agreements are exempt from
1044	1044	31.12Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.
1045	1045	31.13 (b) The facilities under the lease-purchase agreement are exempt from the design
1046	1046	31.14competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding anything
1047	1047	31.15to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner
1048	1048	31.16of administration elects to use a design-build delivery method to design and construct one
1049	1049	31.17or more facilities under this appropriation, the Capitol Area Architectural and Planning
1050	1050	31.18Board, in cooperation with the commissioner, shall create a selection committee to act as
1051	1051	31.19the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design and
1052	1052	31.20construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if the
1053	1053	31.21commissioner elects to contract with a primary designer to design one or more facilities
1054	1054	31.22under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation
1055	1055	31.23with the commissioner, shall create a selection committee to conduct the selection process
1056	1056	31.24in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A
1057	1057	31.25selection committee created under this section must contain no more than seven members,
1058	1058	31.26including at least three representatives designated by the senate Committee on Rules and
1059	1059	31.27Administration and three representatives designated by the speaker of the house.
1060	1060	31.28 (c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections 16C.32
1061	1061	31.29and 16C.33, if the commissioner of administration elects to use a design-build delivery
1062	1062	31.30method to design, construct, and equip one or more facilities and associated infrastructure
1063	1063	31.31to provide audio and video broadcast services for the Capitol building, State Office Building,
1064	1064	31.32and a new legislative office building, if applicable, the commissioner shall create a selection
1065	1065	31.33committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, to
1066	1066	31.34design, build, and equip the facilities. The selected design-builder may self-perform trade
1067	1067	31.35work or name an audio and video subcontractor as a member of the design-builder's team.
1068	1068	31Article 2 Sec. 13.
1069	1069	25-03139 as introduced03/19/25 REVISOR JSK/AC 32.1If an audio and video subcontractor is named as a member of the design-builder's team, the
1070	1070	32.2design-builder is not required to competitively bid the trade work. Notwithstanding Minnesota
1071	1071	32.3Statutes, section 16C.33, subdivision 5, paragraph (b), after obtaining and evaluating
1072	1072	32.4qualifications from each design-builder, in accordance with the weighted criteria and
1073	1073	32.5subcriteria and procedures provided in the request for qualifications, the selection committee
1074	1074	32.6shall select a short list of up to five proposals. If the commissioner does not receive any
1075	1075	32.7proposals, the commissioner may either:
1076	1076	32.8 (1) solicit new proposals;
1077	1077	32.9 (2) revise the request for qualifications and thereafter solicit new proposals using the
1078	1078	32.10revised request for qualifications; or
1079	1079	32.11 (3) request selection of a primary designer under Minnesota Statutes, section 16B.33,
1080	1080	32.1216C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota Statutes,
1081	1081	32.13sections 16C.25 to 16C.29.
1082	1082	32.14 (d) The commissioner of administration may enter into a ground lease for state-owned
1083	1083	32.15property in the capitol area in conjunction with the execution of a lease-purchase agreement
1084	1084	32.16entered into under this section for any improvements constructed on that site. Notwithstanding
1085	1085	32.17the requirements of Minnesota Statutes, section 16A.695, subdivision 2, paragraph (b), the
1086	1086	32.18ground lease must be for a term equal to the term of the lease-purchase agreement, and must
1087	1087	32.19include an option to purchase the land at its then fair market value, if the improvements are
1088	1088	32.20not purchased by the state at the end of the term of the lease-purchase agreement, or at any
1089	1089	32.21earlier time that the lease-purchase agreement is terminated.
1090	1090	32.22 (e) The commissioner of administration must not prepare final plans and specifications
1091	1091	32.23for any construction authorized under this section until the program plan and cost estimates
1092	1092	32.24for all elements necessary to complete the project have been approved by the senate
1093	1093	32.25Committee on Rules and Administration.
1094	1094	32.26 (f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the
1095	1095	32.27commissioner of administration for predesign and design of facilities authorized under
1096	1096	32.28paragraph (a). This appropriation is available for expenditure the day following final
1097	1097	32.29enactment and until June 30, 2015.
1098	1098	32.30 (g) The commissioner of administration may reserve a portion of money from
1099	1099	32.31appropriations for office space costs of the legislature to fund future repairs for facilities
1100	1100	32.32constructed under the authority provided in this section. Money reserved under this paragraph
1101	1101	32.33must be credited to a segregated account for each building in the special revenue fund and
1102	1102	32.34is appropriated to the commissioner to make the repairs. When the state acquires title to a
1103	1103	32Article 2 Sec. 13.
1104	1104	25-03139 as introduced03/19/25 REVISOR JSK/AC 33.1building with an account established under this paragraph, the account for that building
1105	1105	33.2must be abolished and the balance remaining in the account must be transferred to the
1106	1106	33.3appropriate asset preservation and replacement account.
1107	1107	33.4 (h) Certificates of participation or lease revenue bonds issued by the commissioner of
1108	1108	33.5management and budget may be issued by public or private sale and in one or more series
1109	1109	33.6on the terms and conditions the commissioner of management and budget determines to be
1110	1110	33.7in the best interests of the state, shall be dated and bear interest at a fixed or variable rate,
1111	1111	33.8may be includable in or excludable from the gross income of the owners for federal income
1112	1112	33.9tax purposes, and may be sold at any price or percentage of par value. Any bid received
1113	1113	33.10may be rejected.
1114	1114	33.11 (i) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates
1115	1115	33.12of participation, and at any time thereafter, so long as the bonds or certificates are outstanding,
1116	1116	33.13the commissioner of management and budget may enter into agreements and ancillary
1117	1117	33.14arrangements relating to the bonds or certificates, including but not limited to trust indentures,
1118	1118	33.15grant agreements, lease or use agreements, operating agreements, management agreements,
1119	1119	33.16liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance
1120	1120	33.17policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest
1121	1121	33.18exchange agreements. Any payments made or received according to the agreement or
1122	1122	33.19ancillary arrangement shall be made from or deposited as provided in the agreement or
1123	1123	33.20ancillary arrangement. The determination of the commissioner of management and budget
1124	1124	33.21included in an interest exchange agreement that the agreement relates to a certificate or
1125	1125	33.22bond shall be conclusive.
1126	1126	33.23 (j) The commissioner of management and budget may enter into written agreements or
1127	1127	33.24contracts relating to the continuing disclosure of information necessary to comply with or
1128	1128	33.25facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds
1129	1129	33.26or certificates of participation in accordance with federal securities laws, rules, and
1130	1130	33.27regulations, including Securities and Exchange Commission rules and regulations in Code
1131	1131	33.28of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of
1132	1132	33.29covenants with purchasers and holders of certificates or bonds set forth in the order or
1133	1133	33.30resolution authorizing the issuance of the certificates or bonds or in a separate document
1134	1134	33.31authorized by the order or resolution.
1135	1135	33.32 (k) The commissioner of administration from time to time may enter into a new
1136	1136	33.33lease-purchase agreement and the commissioner of management and budget may issue and
1137	1137	33.34sell lease revenue bonds or certificates of participation for the purpose of refunding any
1138	1138	33.35lease-purchase agreement authorized under this section and related lease revenue bonds or
1139	1139	33Article 2 Sec. 13.
1140	1140	25-03139 as introduced03/19/25 REVISOR JSK/AC 34.1certificates of participation then outstanding, including the payment of any redemption
1141	1141	34.2premiums, any interest accrued or that is to accrue to the redemption date, and costs related
1142	1142	34.3to the issuance and sale of such refunding bonds or certificates. The proceeds of any refunding
1143	1143	34.4bonds or certificates may, in the discretion of the commissioner of management and budget,
1144	1144	34.5be applied to the purchase or payment at maturity of the bonds or certificates to be refunded,
1145	1145	34.6to the redemption of the outstanding lease-purchase agreements and bonds or certificates
1146	1146	34.7on any redemption date, or to pay interest on the refunding lease-purchase agreements and
1147	1147	34.8bonds or certificates and may, pending such application, be placed in escrow to be applied
1148	1148	34.9to such purchase, payment, retirement, or redemption. Any escrowed proceeds, pending
1149	1149	34.10such use, may be invested and reinvested in obligations that are authorized investments
1150	1150	34.11under section 11A.24. The income earned or realized on any authorized investment may
1151	1151	34.12also be applied to the payment of the lease-purchase agreements and bonds or certificates
1152	1152	34.13to be refunded, to interest or premiums on the refunded bonds or certificates, or to pay
1153	1153	34.14interest on the refunding lease-purchase agreements and bonds or certificates. After the
1154	1154	34.15terms of the escrow have been fully satisfied, any balance of proceeds and any investment
1155	1155	34.16income may be returned to the general fund for use in a lawful manner. All refunding
1156	1156	34.17lease-purchase agreements and bonds or certificates issued under the provisions of this
1157	1157	34.18subdivision must be prepared, executed, delivered, and secured by appropriations in the
1158	1158	34.19same manner as the lease-purchase agreements and bonds or certificates to be refunded.
1159	1159	34.20 (l) The waiver of immunity by the state provided for by section 3.751, subdivision 1,
1160	1160	34.21shall be applicable to lease revenue bonds or certificates of participation issued under this
1161	1161	34.22section and any ancillary contracts to which the commissioner is a party.
1162	1162	34.23Sec. 14. REPEALER.
1163	1163	34.24 (a) Minnesota Statutes 2024, section 16A.662, is repealed.
1164	1164	34.25 (b) Minnesota Statutes 2024, section 116J.417, subdivision 9, is repealed effective
1165	1165	34.26retroactively from June 2, 2023.
1166	1166	34.27Sec. 15. EFFECTIVE DATE.
1167	1167	34.28 Except as otherwise specified, this article is effective the day following final enactment.
1168	1168	34Article 2 Sec. 15.
1169	1169	25-03139 as introduced03/19/25 REVISOR JSK/AC Page.Ln 1.13APPROPRIATIONS...............................................................................ARTICLE 1
1170	1170	Page.Ln 19.26MISCELLANEOUS...............................................................................ARTICLE 2
1171	1171	1
1172	1172	APPENDIX
1173	1173	Article locations for 25-03139 16A.662 INFRASTRUCTURE DEVELOPMENT BONDS.
1174	1174	Subdivision 1.Infrastructure development fund.The infrastructure development fund is
1175	1175	created as an account in the state treasury. The commissioner of management and budget shall
1176	1176	credit to the fund income from the sources provided by law. The commissioner of management and
1177	1177	budget shall from time to time certify to the State Board of Investment the assets of the fund not
1178	1178	currently needed. The amount certified must be invested by the State Board of Investment subject
1179	1179	to section 11A.24. Investment income and investment losses attributable to investment of fund
1180	1180	assets must be credited to or borne by the fund.
1181	1181	Subd. 2.Bonds authorized.When authorized by law enacted in accordance with the constitution,
1182	1182	article XI, sections 5 and 7, the commissioner may by order sell and issue bonds of the state
1183	1183	evidencing public debt incurred for any purpose stated in the law. The bonds are general obligations
1184	1184	of the state, and the full faith and credit of the state are pledged for their payment.
1185	1185	Subd. 3.Manner of issuance; maturities.The bonds must be issued and sold in accordance
1186	1186	with section 16A.641. Sections 16A.672 and 16A.675 apply to the bonds.
1187	1187	Subd. 4.Debt service account; appropriation of debt service account money.There is
1188	1188	established within the state bond fund a separate and special account designated as the infrastructure
1189	1189	development bond debt service account. The money on hand in the debt service account must be
1190	1190	used solely for the payment of the principal of and interest on bonds issued under Laws 1990,
1191	1191	chapter 610, article 1, section 30, subdivision 2, and is appropriated for this purpose. This
1192	1192	appropriation does not cancel as long as any of the bonds remain outstanding.
1193	1193	Subd. 5.Assessment to higher education systems.(a) In order to reduce the amount otherwise
1194	1194	required to be transferred to the state bond fund with respect to bonds heretofore or hereafter issued
1195	1195	under Laws 1990, chapter 610, article 1, section 30, subdivision 2, the commissioner of management
1196	1196	and budget shall assess each higher education system for one-third the amount that would otherwise
1197	1197	need to be transferred with respect to those bonds sold to finance capital improvement projects at
1198	1198	institutions under the control of the system; provided that, to the extent that the amount to be
1199	1199	transferred is for payment of principal and interest on bonds sold to finance life safety improvements,
1200	1200	the commissioner must not assess the higher education systems for the transfer.
1201	1201	(b) After each sale of the bonds, the commissioner of management and budget shall notify the
1202	1202	Board of Trustees of the Minnesota State Colleges and Universities and the regents of the University
1203	1203	of Minnesota of the amounts for which each system is responsible for each year for the life of the
1204	1204	bonds. The amounts payable each year are reduced by one-third of the net income from investment
1205	1205	of those bond proceeds that must be allocated among the systems in proportion to the amount of
1206	1206	principal and interest otherwise required to be paid by each. Each higher education system shall
1207	1207	pay its annual share of debt service payments to the commissioner of management and budget by
1208	1208	December 1 each year. If a higher education system fails to make a payment when due, the
1209	1209	commissioner of management and budget shall reduce allotments for appropriations from the general
1210	1210	fund otherwise payable to the system to cover the amount of the missed debt service payment. The
1211	1211	commissioner of management and budget shall credit the payments received from the higher
1212	1212	education systems to the infrastructure development bond debt service account in the state bond
1213	1213	fund each December 1 before the transfer is made under subdivision 4.
1214	1214	Subd. 6.Appropriation from general fund.There is annually appropriated from the general
1215	1215	fund for transfer to the infrastructure development bond debt service account the amount that, added
1216	1216	to the amount in the infrastructure development bond debt service account on December 1 each
1217	1217	year, after giving effect to subdivisions 4 and 5, is equal to the full amount of principal and interest
1218	1218	to come due on all bonds to and including July 1 in the second ensuing year.
1219	1219	Subd. 7.Constitutional tax levy.Under the constitution, article XI, section 7, the state auditor
1220	1220	must levy each year on all taxable property within the state a tax sufficient, with the amount then
1221	1221	on hand in the infrastructure development bond debt service account, to pay all principal and interest
1222	1222	on the bonds due and to become due to and including July 1 in the second ensuing year. The tax is
1223	1223	not subject to limit as to rate or amount. However, the amount of money appropriated from other
1224	1224	sources as provided in subdivisions 4, 5, and 6, and actually received and on hand before the levy
1225	1225	in any year, reduces the amount of the tax otherwise required to be levied. The proceeds of the tax
1226	1226	must be credited to the infrastructure development bond debt service account.
1227	1227	Subd. 8.Application and appropriation of proceeds.The proceeds of the bonds must be
1228	1228	deposited and spent as provided in this subdivision and are appropriated for those purposes. Any
1229	1229	accrued interest and any premium received on the sale of the bonds must be credited to the
1230	1230	infrastructure development bond debt service account. Except as otherwise required by law, the
1231	1231	1R
1232	1232	APPENDIX
1233	1233	Repealed Minnesota Statutes: 25-03139 balance of the bond proceeds shall be credited to the infrastructure development fund and spent for
1234	1234	the purposes specified in the law authorizing the issuance of the bonds. So much of the proceeds
1235	1235	as is necessary must be used to pay costs incurred in issuing and selling the bonds.
1236	1236	116J.417 GREATER MINNESOTA CHILD CARE FACILITY CAPITAL GRANT
1237	1237	PROGRAM.
1238	1238	Subd. 9.Cancellation of grant; return of money.If the commissioner determines that a grantee
1239	1239	is unable to proceed with an approved project or has not expended or obligated the grant money
1240	1240	within five years of entering into the grant agreement with the commissioner, the commissioner
1241	1241	shall cancel the grant and the money is available for the commissioner to make other grants under
1242	1242	this section. Money made available to the commissioner from a canceled grant is subject to
1243	1243	cancellation under section 16A.642 as if it had been appropriated to the program in the year in
1244	1244	which the grant is canceled.
1245	1245	2R
1246	1246	APPENDIX
1247	1247	Repealed Minnesota Statutes: 25-03139