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;
1.5 authorizing the sale and issuance of state bonds; appropriating money; amending
1.6 Minnesota Statutes 2024, sections 16A.501; 16B.97, subdivision 1; 16B.98,
1.7 subdivision 1; 116.182, subdivision 5; 142A.46, subdivision 1; 446A.07,
1.8 subdivision 8; 446A.072, subdivision 5a; 446A.073, subdivision 1; 446A.081,
1.9 subdivision 9; Laws 2013, chapter 143, article 12, section 21; proposing coding
1.10 for new law in Minnesota Statutes, chapters 16B; 115B; 446A; repealing Minnesota
1.11 Statutes 2024, sections 16A.662; 116J.417, subdivision 9.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 ARTICLE 1
1.14 APPROPRIATIONS
1.15Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
1.16 (a) The sums shown in the column under "Appropriations" are appropriated from the
1.17bond proceeds fund, or another named fund, to the state agencies or officials indicated, to
1.18be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
1.19by the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public
1.20land and buildings and other public improvements of a capital nature, or as authorized by
1.21the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless
1.22otherwise specified, money appropriated in this act:
1.23 (1) may be used to pay state agency staff costs that are attributed directly to the capital
1.24program or project in accordance with accounting policies adopted by the commissioner of
1.25management and budget;
1Article 1 Section 1.
25-03139 as introduced03/19/25 REVISOR JSK/AC
SENATE
STATE OF MINNESOTA
S.F. No. 3056NINETY-FOURTH SESSION
(SENATE AUTHORS: PAPPAS)
OFFICIAL STATUSD-PGDATE
Introduction and first reading03/27/2025
Referred to 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; and
2.6 (4) is available for a grant to a political subdivision after the commissioner of management
2.7and budget determines that an amount sufficient to complete the project as described in this
2.8act has been committed to the project, as required by Minnesota Statutes, section 16A.502.
2.9 (b) Unless otherwise specified, appropriations in this article from the general fund or
2.10from the trunk highway fund are made in fiscal year 2026 and are onetime appropriations.
2.11 APPROPRIATIONS
2.12Sec. 2. UNIVERSITY OF MINNESOTA
102,994,000$2.13Subdivision 1.Total Appropriation
2.14To the Board of Regents of the University of
2.15Minnesota for the purposes specified in this
2.16section.
102,994,000
2.17Subd. 2.Higher Education Asset Preservation
2.18and Replacement (HEAPR)
2.19To be spent in accordance with Minnesota
2.20Statutes, section 135A.046.
2.21Sec. 3. MINNESOTA STATE COLLEGES AND
2.22UNIVERSITIES
102,994,000$2.23Subdivision 1.Total Appropriation
2.24To the Board of Trustees of the Minnesota
2.25State Colleges and Universities for the
2.26purposes specified in this section.
102,994,000
2.27Subd. 2.Higher Education Asset Preservation
2.28and Replacement (HEAPR)
2.29To be spent in accordance with Minnesota
2.30Statutes, section 135A.046.
900,000$2.31Sec. 4. EDUCATION
2Article 1 Sec. 4.
25-03139 as introduced03/19/25 REVISOR JSK/AC 3.1To the commissioner of education for library
3.2construction grants under Minnesota Statutes,
3.3section 134.45.
3.4Sec. 5. MINNESOTA STATE ACADEMIES
1,950,000$3.5Subdivision 1.Total Appropriation
3.6To the commissioner of administration for the
3.7purposes specified in this section.
1,150,0003.8Subd. 2.Asset Preservation
3.9For capital asset preservation improvements
3.10and betterments on both campuses of the
3.11Minnesota State Academies, to be spent in
3.12accordance with Minnesota Statutes, section
3.1316B.307.
400,0003.14Subd. 3.Student Center Predesign
3.15To predesign the renovation or replacement
3.16of existing spaces for a new student center on
3.17the Deaf School Campus.
400,0003.18Subd. 4.Therapy Pool Improvements Predesign
3.19To predesign the construction of the
3.20replacement and relocation of the therapy pool
3.21and therapeutic hot tub and renovations to the
3.22existing pool area, including related building
3.23and site improvements.
1,530,000$
3.24Sec. 6. PERPICH CENTER FOR ARTS
3.25EDUCATION
3.26To the commissioner of administration for
3.27capital asset preservation improvements and
3.28betterments at the Perpich Center for Arts
3.29Education, to be spent in accordance with
3.30Minnesota Statutes, section 16B.307.
3.31Sec. 7. NATURAL RESOURCES
98,000,000$3.32Subdivision 1.Total Appropriation
3Article 1 Sec. 7.
25-03139 as introduced03/19/25 REVISOR JSK/AC 4.1(a) To the commissioner of natural resources
4.2for the purposes specified in this section.
4.3(b) The appropriations in this section are
4.4subject to the requirements of the natural
4.5resources capital improvement program under
4.6Minnesota Statutes, section 86A.12, unless
4.7this section or the statutes referred to in this
4.8section provide more specific standards,
4.9criteria, or priorities for projects than
4.10Minnesota Statutes, section 86A.12.
61,000,0004.11Subd. 2.Natural Resources Asset Preservation
4.12For the preservation and replacement of
4.13state-owned facilities and recreational assets
4.14operated by the commissioner of natural
4.15resources to be spent in accordance with
4.16Minnesota Statutes, section 84.946.
11,100,0004.17Subd. 3.Betterment of Buildings
4.18For acquisition, predesign, design, and
4.19construction to replace existing facilities that
4.20no longer meet the business needs of the
4.21department or to acquire or construct new
4.22facilities.
6,500,000
4.23Subd. 4.Acquisition and Betterment of Public
4.24Lands
4.25(a) For the betterment of public lands and
4.26other improvements of a capital nature. The
4.27commissioner shall determine project priorities
4.28as appropriate under Minnesota Statutes,
4.29section 86A.12. Any reforestation shall be
4.30conducted in accordance with Minnesota
4.31Statutes, section 89.002, subdivision 2.
4.32(b) For acquisition of public lands for the
4.33purposes described in Minnesota Statutes,
4.34section 86A.12, subdivision 2. The
4Article 1 Sec. 7.
25-03139 as introduced03/19/25 REVISOR JSK/AC 5.1commissioner shall determine project priorities
5.2as appropriate under Minnesota Statutes,
5.3section 86A.12.
1,900,0005.4Subd. 5.Accessibility
5.5For the design and construction of accessibility
5.6improvements at state parks, recreation areas,
5.7and wildlife management areas.
5,600,0005.8Subd. 6.Flood Hazard Mitigation
5.9(a) For the state share of flood hazard
5.10mitigation grants for publicly owned capital
5.11improvements to prevent or alleviate flood
5.12damage under Minnesota Statutes, section
5.13103F.161.
5.14(b) Project priorities shall be determined by
5.15the commissioner as appropriate, based on
5.16need and consideration of available leveraging
5.17of federal, state, and local funds.
5.18(c) To the extent practicable and consistent
5.19with the project, recipients of appropriations
5.20for flood control projects in this subdivision
5.21shall create wetlands that are eligible for
5.22wetland replacement credit to replace wetlands
5.23drained or filled as the result of repair,
5.24reconstruction, replacement, or rehabilitation
5.25of an existing public road under Minnesota
5.26Statutes, section 103G.222, subdivision 1,
5.27paragraphs (l) and (m).
5.28(d) To the extent that the cost of a municipal
5.29project exceeds two percent of the median
5.30household income in the municipality
5.31multiplied by the number of households in the
5.32municipality, this appropriation is also for the
5.33local share of the project.
5Article 1 Sec. 7.
25-03139 as introduced03/19/25 REVISOR JSK/AC 1,900,000
6.1Subd. 7.Parks and Trails Local and Regional
6.2Recreation Grants
6.3For matching grants under Minnesota Statutes,
6.4section 85.019.
10,000,0006.5Subd. 8.Dam Renovation, Repair, Removal
6.6(a) For design, engineering, and construction
6.7to repair, reconstruct, or remove publicly
6.8owned dams and respond to dam safety
6.9emergencies on publicly owned dams. The
6.10commissioner shall determine project priorities
6.11as appropriate under Minnesota Statutes,
6.12sections 103G.511 and 103G.515.
6.13(b) This appropriation includes money for the
6.14Rapidan Dam removal and bank stabilization
6.15project in Blue Earth County.
6.16(c) If the commissioner determines that a
6.17project is not ready to proceed, this
6.18appropriation may be used for other projects
6.19on the commissioner's priority list.
6.20Subd. 9.Unspent Appropriations
6.21The unspent portion of an appropriation for a
6.22project in this section that is complete, upon
6.23written notice to the commissioner of
6.24management and budget, is available for asset
6.25preservation under Minnesota Statutes, section
6.2684.946. Minnesota Statutes, section 16A.642,
6.27applies from the date of the original
6.28appropriation to the unspent amount
6.29transferred.
6.30Sec. 8. POLLUTION CONTROL AGENCY
8,000,000$6.31Subdivision 1.Total Appropriation
6.32To the Pollution Control Agency for the
6.33purposes specified in this section.
6Article 1 Sec. 8.
25-03139 as introduced03/19/25 REVISOR JSK/AC 8,000,000
7.1Subd. 2.Statewide Drinking Water
7.2Contamination Mitigation Program
7.3For projects or grants under Minnesota
7.4Statutes, section 115B.245.
7.5Sec. 9. BOARD OF WATER AND SOIL
7.6RESOURCES
12,900,000$7.7Subdivision 1.Total Appropriation
7.8To the Board of Water and Soil Resources for
7.9the purposes specified in this section.
3,600,000
7.10Subd. 2.Local Government Roads Wetland
7.11Replacement Program
7.12To acquire land or permanent easements and
7.13to restore, create, enhance, and preserve
7.14wetlands to replace those wetlands drained or
7.15filled as a result of the repair, reconstruction,
7.16replacement, or rehabilitation of existing
7.17public roads as required by Minnesota
7.18Statutes, section 103G.222, subdivision 1,
7.19paragraphs (l) and (m). Notwithstanding
7.20Minnesota Statutes, section 103G.222,
7.21subdivision 3, the board may implement the
7.22wetland replacement program statewide. The
7.23purchase price paid for acquisition of land or
7.24perpetual easement must be a fair market value
7.25as determined by the board. The board may
7.26enter into agreements with the federal
7.27government, other state agencies, political
7.28subdivisions, nonprofit organizations, fee title
7.29owners, or other qualified private entities to
7.30acquire wetland replacement credits in
7.31accordance with Minnesota Rules, chapter
7.328420. Up to five percent of this appropriation
7.33may be used for restoration and enhancement.
7Article 1 Sec. 9.
25-03139 as introduced03/19/25 REVISOR JSK/AC 9,300,000
8.1Subd. 3.Reinvest in Minnesota (RIM) Reserve
8.2Program
8.3To acquire conservation easements from
8.4landowners to preserve, restore, create, and
8.5enhance wetlands and associated uplands of
8.6prairie and grasslands, and to restore and
8.7enhance rivers and streams, riparian lands, and
8.8uplands of prairie and grasslands, in order to
8.9protect soil and water quality, support fish and
8.10wildlife habitat, reduce flood damage, and
8.11provide other public benefits. The provisions
8.12of Minnesota Statutes, section 103F.515, apply
8.13to this program. The board shall give priority
8.14to leveraging federal money by enrolling
8.15targeted new lands or enrolling
8.16environmentally sensitive lands that have
8.17expiring federal conservation agreements. The
8.18board is authorized to enter into new
8.19agreements and amend past agreements with
8.20landowners as required by Minnesota Statutes,
8.21section 103F.515, subdivision 5, to allow for
8.22restoration. Up to five percent of this
8.23appropriation may be used for restoration and
8.24enhancement.
8.25Sec. 10. MINNESOTA ZOOLOGICAL
8.26GARDEN
3,810,000$8.27Subdivision 1.Total Appropriation
8.28To the Minnesota Zoological Board for the
8.29purposes specified in this section.
3,810,0008.30Subd. 2.Asset Preservation
8.31For capital asset preservation improvements
8.32and betterments to infrastructure and exhibits
8.33at the Minnesota Zoo, to be spent in
8.34accordance with Minnesota Statutes, section
8.3516B.307. Notwithstanding the specified uses
8Article 1 Sec. 10.
25-03139 as introduced03/19/25 REVISOR JSK/AC 9.1of money under Minnesota Statutes, section
9.216B.307, this appropriation may be used to
9.3replace buildings that are in poor condition,
9.4outdated, and no longer support the work of
9.5the Minnesota Zoological Garden; to construct
9.6and renovate trails and roads on the Minnesota
9.7Zoological Garden site; and to renovate animal
9.8exhibits to meet modern animal welfare
9.9standards, address animal and staff safety
9.10issues, and improve the viewing experience
9.11for guests.
9.12Sec. 11. ADMINISTRATION
5,600,000$9.13Subdivision 1.Total Appropriation
9.14To the commissioner of administration for the
9.15purposes specified in this section.
1,900,000
9.16Subd. 2.Capital Asset Preservation and
9.17Replacement Account
9.18To be spent in accordance with Minnesota
9.19Statutes, section 16A.632.
3,700,000
9.20Subd. 3.Capitol Complex - Physical Security
9.21Upgrades Phase III
9.22For the continuation of the design,
9.23construction, and equipping required to
9.24upgrade the physical security elements and
9.25systems for the Capitol Mall and the buildings
9.26listed in this subdivision, their attached tunnel
9.27systems, their surrounding grounds, and
9.28parking facilities as identified in the 2017
9.29Minnesota State Capitol Complex Physical
9.30Security Predesign completed by Miller
9.31Dunwiddie and an updated assessment
9.32completed in 2022. Upgrades include but are
9.33not limited to the installation of bollards, blast
9.34protection, infrastructure security screen walls,
9.35door access controls, emergency call stations,
9Article 1 Sec. 11.
25-03139 as introduced03/19/25 REVISOR JSK/AC 10.1surveillance systems, security kiosks, lighting
10.2system upgrades, locking devices, and traffic
10.3and crowd control devices. This appropriation
10.4includes money for work associated with the
10.5following buildings: Administration,
10.6Ag/Health Lab, Andersen, BCA Maryland,
10.7Capitol, Centennial, Freeman, Governor's
10.8Residence, Judicial Center, Minnesota History
10.9Center, Capitol Complex Power Plant and
10.10Shops, Stassen, Senate, and Veterans Service.
10.11Sec. 12. AMATEUR SPORTS COMMISSION
9,500,000$10.12Subdivision 1.Total Appropriation
10.13To the Minnesota Amateur Sports
10.14Commission for the purposes specified in this
10.15section.
8,600,00010.16Subd. 2.Asset Preservation
10.17For asset preservation improvements and
10.18betterments of a capital nature at the National
10.19Sports Center in Blaine, to be spent in
10.20accordance with Minnesota Statutes, section
10.2116B.307.
900,00010.22Subd. 3.Mighty Ducks
10.23For grants to local units of government under
10.24Minnesota Statutes, section 240A.09,
10.25paragraph (b), to improve indoor air quality
10.26or eliminate R-22. This appropriation must
10.27not be used to acquire ice resurfacing or
10.28edging equipment.
10.29Sec. 13. MILITARY AFFAIRS
3,000,000$10.30Subdivision 1.Total Appropriation
10.31To the adjutant general for the purposes
10.32specified in this section.
3,000,00010.33Subd. 2.Duluth Hangar Design
10Article 1 Sec. 13.
25-03139 as introduced03/19/25 REVISOR JSK/AC 11.1To predesign and design the construction of
11.2a new hangar to hold aircraft at the Duluth
11.3International Airport in support of the 148th
11.4Fighter Wing of the Minnesota Air National
11.5Guard to replace existing hangars.
11.6Sec. 14. PUBLIC SAFETY
72,887,000$11.7Subdivision 1.Total Appropriation
11.8To the commissioner of administration for the
11.9purposes specified in this section.
68,684,000
11.10Subd. 2.Southern Minnesota BCA Regional
11.11Office and Laboratory
11.12To complete design, construct, furnish, and
11.13equip a new Bureau of Criminal Apprehension
11.14regional office and laboratory facility in
11.15Mankato. This appropriation may also be used
11.16to design and complete hazardous materials
11.17abatement. This appropriation may also be
11.18used to fund the state's portion of the cost to
11.19extend Bassett Drive to serve the project site.
4,203,000
11.20Subd. 3.Bemidji BCA Regional Office and
11.21Laboratory Expansion
11.22For predesign, design, and land acquisition
11.23for the renovation and expansion of the Bureau
11.24of Criminal Apprehension's Bemidji Regional
11.25Office and Forensic Science Laboratory.
11.26Sec. 15. TRANSPORTATION
4,600,000$11.27Subdivision 1.Total Appropriation
11.28To the commissioner of transportation for the
11.29purposes specified in this section.
1,800,00011.30Subd. 2.Highway Rail Grade Crossings
11.31To design, construct, and equip the
11.32replacement of active highway rail grade
11.33warning devices that have reached the end of
11Article 1 Sec. 15.
25-03139 as introduced03/19/25 REVISOR JSK/AC 12.1their useful life or new highway rail grade
12.2warning devices.
2,800,00012.3Subd. 3.Port Development Assistance Program
12.4For grants under Minnesota Statutes, chapter
12.5457A. Any improvements made with the
12.6proceeds of these grants must be publicly
12.7owned.
12.8Sec. 16. METROPOLITAN COUNCIL
21,900,000$12.9Subdivision 1.Total Appropriation
12.10To the Metropolitan Council for the purposes
12.11specified in this section.
4,600,000
12.12Subd. 2.Metropolitan Cities Inflow and
12.13Infiltration Grants
12.14For grants to cities and townships within the
12.15metropolitan area, as defined in Minnesota
12.16Statutes, section 473.121, subdivision 2, for
12.17capital improvements in municipal wastewater
12.18collection systems to reduce the amount of
12.19inflow and infiltration to the Metropolitan
12.20Council's metropolitan sanitary sewer disposal
12.21system. Grants from this appropriation are for
12.22up to 50 percent of the cost to mitigate inflow
12.23and infiltration in the publicly owned
12.24municipal wastewater collection systems. To
12.25be eligible for a grant, a city or township must
12.26be identified by the council as a contributor
12.27of excessive inflow and infiltration in the
12.28metropolitan disposal system or have a
12.29measured flow rate within 20 percent of its
12.30allowable council-determined inflow and
12.31infiltration limits. The council must award
12.32grants based on applications from cities or
12.33townships that identify eligible capital costs
12.34and include a timeline for inflow and
12Article 1 Sec. 16.
25-03139 as introduced03/19/25 REVISOR JSK/AC 13.1infiltration mitigation construction, pursuant
13.2to guidelines established by the council.
2,300,00013.3Subd. 3.Metropolitan Regional Parks and Trails
13.4For the cost of improvements and betterments
13.5of a capital nature and acquisition by the
13.6council and metropolitan parks implementing
13.7agencies as defined in Minnesota Statutes,
13.8section 473.351, of regional recreational
13.9open-space lands in accordance with the
13.10council's policy plan as provided in Minnesota
13.11Statutes, section 473.147. This appropriation
13.12must not be used to purchase easements.
15,000,00013.13Subd. 4.Arterial Bus Rapid Transit
13.14For real property acquisition, predesign,
13.15design, engineering, and construction of
13.16arterial bus rapid transit, including utility
13.17relocation, demolition, and furnishing and
13.18equipping facilities for arterial bus rapid transit
13.19projects. The council must allocate the money
13.20among projects based on criteria in its
13.21transitway capital improvement plan
13.22including: consistency with the council's
13.23transportation policy plan; project readiness;
13.24potential current and forecasted ridership;
13.25expansion of the bus rapid transit system;
13.26availability of federal or other matching funds;
13.27coordination with other major projects; and
13.28additional criteria for priorities otherwise
13.29specified in state law or rule applicable to bus
13.30rapid transit, including state law authorizing
13.31state bond fund appropriations for a bus rapid
13.32transit project.
13.33Sec. 17. DIRECT CARE AND TREATMENT
26,430,000$13.34Subdivision 1.Total Appropriation
13Article 1 Sec. 17.
25-03139 as introduced03/19/25 REVISOR JSK/AC 14.1To the commissioner of administration for the
14.2purposes specified in this section.
11,430,00014.3Subd. 2.Asset Preservation
14.4For asset preservation improvements and
14.5betterments of a capital nature, to be spent in
14.6accordance with Minnesota Statutes, section
14.716B.307, at facilities operated by Direct Care
14.8and Treatment following the department's
14.9separation from the Department of Human
14.10Services.
15,000,000
14.11Subd. 3.St. Peter Water and Sewer
14.12Construction
14.13To design, construct, and equip upgrades and
14.14the replacement of water, sanitary, and storm
14.15sewer infrastructure at the St. Peter Campus.
14.16This appropriation may also be used to design
14.17and complete hazardous materials abatement.
14.18Sec. 18. CHILDREN, YOUTH, AND
14.19FAMILIES
2,700,000$14.20Subdivision 1.Total Appropriation
14.21To the commissioner of Children, Youth, and
14.22Families for the purposes specified in this
14.23section.
2,700,00014.24Subd. 2.Early Childhood Facilities Grants
14.25For grants under Minnesota Statutes, section
14.26142A.46, to predesign, design, construct,
14.27renovate, furnish, and equip early childhood
14.28learning facilities.
14.29Sec. 19. VETERANS AFFAIRS
29,344,000$14.30Subdivision 1.Total Appropriation
14.31To the commissioner of administration for the
14.32purposes specified in this section.
14Article 1 Sec. 19.
25-03139 as introduced03/19/25 REVISOR JSK/AC 11,940,00015.1Subd. 2.Asset Preservation
15.2For asset preservation improvements and
15.3betterments of a capital nature at the veterans
15.4homes in Minneapolis, Hastings, Fergus Falls,
15.5Silver Bay, and Luverne, and the state veterans
15.6cemeteries at Little Falls, Preston, and Duluth,
15.7to be spent in accordance with Minnesota
15.8Statutes, section 16B.307.
17,404,000
15.9Subd. 3.Minneapolis Veterans Home - Building
15.1016 Remodel
15.11To design, construct, furnish, and equip the
15.12renovation of the Minneapolis Veterans Home
15.13Building 16. This appropriation may also be
15.14used to design and complete hazardous
15.15materials abatement.
15.16Sec. 20. CORRECTIONS
123,544,000$15.17Subdivision 1.Total Appropriation
15.18To the commissioner of administration for the
15.19purposes specified in this section.
65,574,00015.20Subd. 2.Asset Preservation
15.21For asset preservation improvement and
15.22betterments of a capital nature at the
15.23Minnesota correctional facilities statewide to
15.24be spent in accordance with Minnesota
15.25Statutes, section 16B.307.
57,970,000
15.26Subd. 3.Minnesota Correctional Facility - Rush
15.27City
15.28To update predesign, design, construct,
15.29furnish, and equip a new building addition and
15.30to design, renovate, and equip existing space
15.31to provide incarcerated persons services at the
15.32Rush City Correctional Facility. This
15.33appropriation may also be used to design and
15.34complete hazardous materials abatement.
15Article 1 Sec. 20.
25-03139 as introduced03/19/25 REVISOR JSK/AC 16.1Subd. 4.Unspent Appropriations
16.2The unspent portion of an appropriation for a
16.3Department of Corrections project in this
16.4section that is complete, upon written notice
16.5to the commissioner of management and
16.6budget, is available for asset preservation
16.7under Minnesota Statutes, section 16B.307.
16.8Minnesota Statutes, section 16A.642, applies
16.9from the date of the original appropriation to
16.10the unspent amount transferred.
16.11Sec. 21. EMPLOYMENT AND ECONOMIC
16.12DEVELOPMENT
4,500,000$16.13Subdivision 1.Total Appropriation
16.14To the commissioner of employment and
16.15economic development for the purposes
16.16specified in this section.
2,700,000
16.17Subd. 2.Greater Minnesota Business
16.18Development Public Infrastructure
16.19For grants under Minnesota Statutes, section
16.20116J.431.
1,800,000
16.21Subd. 3.Transportation Economic Development
16.22Infrastructure
16.23For grants under Minnesota Statutes, section
16.24116J.436.
16.25Sec. 22. PUBLIC FACILITIES AUTHORITY
99,012,000$16.26Subdivision 1.Total Appropriation
16.27To the Public Facilities Authority for the
16.28purposes specified in this section.
39,000,000
16.29Subd. 2.State Match for Federal Grants to State
16.30Revolving Loan Programs
16.31To match federal capitalization grants for the
16.32clean water revolving fund under Minnesota
16.33Statutes, section 446A.07, and the drinking
16.34water revolving fund under Minnesota
16Article 1 Sec. 22.
25-03139 as introduced03/19/25 REVISOR JSK/AC 17.1Statutes, section 446A.081. This appropriation
17.2must be used for qualified capital projects.
23,485,00017.3Subd. 3.Water Infrastructure Funding Program
17.4(a) For grants to eligible municipalities under
17.5the water infrastructure funding program under
17.6Minnesota Statutes, section 446A.072.
17.7(b) $10,000,000 is for wastewater projects
17.8listed on the Pollution Control Agency's
17.9project priority list in the fundable range under
17.10the clean water revolving fund program.
17.11(c) $13,485,000 is for drinking water projects
17.12listed on the commissioner of health's project
17.13priority list in the fundable range under the
17.14drinking water revolving fund program.
17.15(d) After all eligible projects under paragraph
17.16(b) or (c) have been funded in a fiscal year,
17.17the Public Facilities Authority may transfer
17.18any remaining, uncommitted money to eligible
17.19projects under a program defined in paragraph
17.20(b) or (c) based on that program's project
17.21priority list.
18,527,000
17.22Subd. 4.Point Source Implementation Grants
17.23Program
17.24For grants to eligible municipalities under the
17.25point source implementation grants program
17.26under Minnesota Statutes, section 446A.073.
17.27This appropriation must be used for qualified
17.28capital projects.
18,000,000
17.29Subd. 5.Emerging Contaminants Grant
17.30Program
17.31For grants to eligible municipalities under the
17.32Emerging Contaminants Grant Program under
17.33Minnesota Statutes, section 446A.082.
17Article 1 Sec. 22.
25-03139 as introduced03/19/25 REVISOR JSK/AC 7,000,000$
18.1Sec. 23. MINNESOTA HOUSING FINANCE
18.2AGENCY
18.3To the Minnesota Housing Finance Agency
18.4to finance the costs of rehabilitation to
18.5preserve public housing under Minnesota
18.6Statutes, section 462A.202, subdivision 3a.
18.7For purposes of this section, "public housing"
18.8means housing for low-income persons and
18.9households financed by the federal
18.10government and publicly owned. Priority may
18.11be given to proposals that maximize nonstate
18.12resources to finance the capital costs and
18.13requests that prioritize health, safety, and
18.14energy improvements. The priority in
18.15Minnesota Statutes, section 462A.202,
18.16subdivision 3a, for projects to increase the
18.17supply of affordable housing and the
18.18restrictions of Minnesota Statutes, section
18.19462A.202, subdivision 7, do not apply to this
18.20appropriation.
18.21Sec. 24. MINNESOTA HISTORICAL
18.22SOCIETY
6,115,000$18.23Subdivision 1.Total Appropriation
18.24To the Minnesota Historical Society for the
18.25purposes specified in this section.
5,215,00018.26Subd. 2.Historic Sites Asset Preservation
18.27For capital improvements and betterments at
18.28state historic sites, buildings, landscaping at
18.29historic buildings, exhibits, markers, and
18.30monuments, to be spent in accordance with
18.31Minnesota Statutes, section 16B.307. The
18.32society shall determine project priorities as
18.33appropriate based on need.
900,00018.34Subd. 3.County and Local Preservation Grants
18Article 1 Sec. 24.
25-03139 as introduced03/19/25 REVISOR JSK/AC 19.1For grants to county and local jurisdictions as
19.2matching money for historic preservation
19.3projects of a capital nature, as provided in
19.4Minnesota Statutes, section 138.0525.
19.5 Sec. 25. BOND SALE AUTHORIZATION.
19.6 To provide the money appropriated in this act from the bond proceeds fund, and to
19.7provide for expenses authorized in Minnesota Statutes, section 16A.641, subdivision 8,
19.8paragraph (c), the commissioner of management and budget shall sell and issue bonds of
19.9the state in an amount up to $790,000,000 in the manner, upon the terms, and with the effect
19.10prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
19.11Constitution, article XI, sections 4 to 7.
19.12Sec. 26. BOND SALE SCHEDULE.
19.13 The commissioner of management and budget shall schedule the sale of state general
19.14obligation bonds so that, during the biennium ending June 30, 2027, no more than
19.15$1,228,858,000 will need to be transferred from the general fund to the state bond fund to
19.16pay principal and interest due and to become due on outstanding state general obligation
19.17bonds. During the biennium, before each sale of state general obligation bonds, the
19.18commissioner of management and budget shall calculate the amount of debt service payments
19.19needed on bonds previously issued and shall estimate the amount of debt service payments
19.20that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
19.21amount of bonds scheduled to be sold so as to remain within the limit set by this section.
19.22The amount needed to make the debt service payments is appropriated from the general
19.23fund as provided in Minnesota Statutes, section 16A.641.
19.24Sec. 27. EFFECTIVE DATE.
19.25 This article is effective the day following final enactment.
19.26 ARTICLE 2
19.27 MISCELLANEOUS
19.28Section 1. Minnesota Statutes 2024, section 16A.501, is amended to read:
19.29 16A.501 REPORT ON EXPENDITURE OF BOND PROCEEDS.
19.30 (a) The commissioner of management and budget must report annually to the legislature
19.31on the degree to which entities receiving appropriations for capital projects in previous
19Article 2 Section 1.
25-03139 as introduced03/19/25 REVISOR JSK/AC 20.1omnibus capital improvement acts have encumbered or expended that money. The report
20.2must be submitted to the chairs of the house of representatives Ways and Means Committee
20.3and the senate Finance Committee by January 1 15 of each year.
20.4 (b) The commissioner of management and budget must report by January 15 of each
20.5year to the chairs and ranking minority members of the house of representatives and senate
20.6committees with jurisdiction over capital investment, finance, and ways and means on the
20.7amount and percentage of each agency's capital appropriation that is used to pay for the
20.8costs of staff directly attributable to capital programs or projects funded with state general
20.9obligation bond proceeds. The report must also include information on agencies' compliance
20.10with the commissioner's policies governing the use of general obligation bond proceeds to
20.11pay staff costs and any changes to the commissioner's policies.
20.12Sec. 2. [16B.851] STATE BUILDING RENEWABLE ENERGY, STORAGE, AND
20.13ELECTRIC VEHICLE ACCOUNT.
20.14 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
20.15the meanings given.
20.16 (b) "State agency" has the meaning given in section 16B.321, subdivision 5, and, in
20.17addition to the agencies listed in section 15.01, includes the Office of Higher Education,
20.18Housing Finance Agency, Pollution Control Agency, and Bureau of Mediation Services. It
20.19also includes agencies, boards, commissions, committees, councils, and authorities as defined
20.20in section 15.012.
20.21 (c) "State building" means a building or facility owned by the state of Minnesota.
20.22 (d) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1,
20.23paragraph (c), and includes thermal energy.
20.24 (e) "Renewable energy improvement" means the predesign, design, acquisition,
20.25construction, or installation of a renewable energy production system or energy storage
20.26equipment or system, and associated infrastructure and facilities that is designed to result
20.27in a demand-side net reduction in energy use by the state building's electrical, heating,
20.28ventilating, air-conditioning, or hot water systems.
20.29 (f) "Energy storage" means the predesign, design, acquisition, construction, or installation
20.30of technology which stores and delivers electric or thermal energy.
20.31 (g) "Electric vehicle service equipment" or "EVSE" means electric vehicle service
20.32equipment, including charging equipment and associated infrastructure and site upgrades.
20Article 2 Sec. 2.
25-03139 as introduced03/19/25 REVISOR JSK/AC 21.1 Subd. 2.Establishment.A state building renewable energy, storage, and electric vehicle
21.2account is established in the special revenue fund to provide money to:
21.3 (1) state agencies to design, construct, and equip renewable energy improvement and
21.4renewable energy storage projects at state buildings;
21.5 (2) state agencies to purchase state fleet electric vehicles in accordance with section
21.616C.135;
21.7 (3) state agencies to purchase and install EVSE;
21.8 (4) the commissioner of administration to manage the program;
21.9 Subd. 3.Account management.The commissioner shall manage and administer the
21.10state building renewable energy, storage, and electric vehicle account.
21.11 Subd. 4.Accepting funds.(a) The commissioner or state agency designated by the
21.12commissioner shall be responsible for making application to the federal government on
21.13behalf of the state of Minnesota for state projects eligible for elective payments under
21.14sections 6417 and 6418 of the Internal Revenue Code, as added by Public Law 117-169.
21.15 (b) The commissioner may apply for, receive, and expend money made available from
21.16federal, state, or other sources for the purposes of carrying out the duties in this section.
21.17 (c) Notwithstanding section 16A.72, all funds received under this subdivision shall be
21.18deposited into the state building renewable energy, storage, and electric vehicle account
21.19and appropriated to the commissioner for the purposes of subdivision 2 and as permitted
21.20under this section.
21.21 (d) Money in the state building renewable energy, storage, and electric vehicle account
21.22does not cancel and is available until expended.
21.23 Subd. 5.Application.A state agency applying for state building renewable energy,
21.24storage, EVSE, and electric fleet vehicle funds must submit an application to the
21.25commissioner on a form, in the manner, and at the time prescribed by the commissioner.
21.26 Subd. 6.Treatment of certain payments received from federal government.(a)
21.27Federal payments received for eligible renewable energy improvement and storage projects,
21.28and EVSE projects, made with appropriations from general obligation bonds, may be
21.29transferred to the state bond fund if consistent with federal treasury regulations.
21.30 (b) Federal payments received for eligible electric fleet vehicle purchases by the
21.31Department of Administration's fleet division shall be transferred to the motor pool revolving
21.32account established in section 16B.54, subdivision 8.
21Article 2 Sec. 2.
25-03139 as introduced03/19/25 REVISOR JSK/AC 22.1 (c) Federal payments received for eligible electric fleet vehicle purchases made directly
22.2by a state agency shall be transferred to the fund from which the purchase was made.
22.3 Sec. 3. Minnesota Statutes 2024, section 16B.97, subdivision 1, is amended to read:
22.4 Subdivision 1.Grant agreement.(a) A grant agreement is a written instrument or
22.5electronic document defining a legal relationship between a granting agency and a grantee
22.6when the principal purpose of the relationship is to transfer cash or something of value to
22.7the recipient to support a public purpose authorized by law instead of acquiring by
22.8professional or technical contract, purchase, lease, or barter property or services for the
22.9direct benefit or use of the granting agency.
22.10 (b) This section does not apply to general obligation grants as defined by section 16A.695
22.11and, capital project grants to political subdivisions as defined by section 16A.86, or capital
22.12project grants otherwise subject to section 16A.642, which grants shall be subject to the
22.13policies and procedures adopted by the commissioner of management and budget or otherwise
22.14specified in applicable law.
22.15Sec. 4. Minnesota Statutes 2024, section 16B.98, subdivision 1, is amended to read:
22.16 Subdivision 1.Limitation.(a) As a condition of receiving a grant from an appropriation
22.17of state funds, the recipient of the grant must agree to minimize administrative costs. The
22.18granting agency is responsible for negotiating appropriate limits to these costs so that the
22.19state derives the optimum benefit for grant funding.
22.20 (b) This section does not apply to general obligation grants as defined by section 16A.695
22.21and also, capital project grants to political subdivisions as defined by section 16A.86, or
22.22capital project grants otherwise subject to section 16A.642.
22.23Sec. 5. [115B.245] STATEWIDE DRINKING WATER CONTAMINATION
22.24MITIGATION PROGRAM.
22.25 Subdivision 1.Program established.The commissioner may design and construct, or
22.26may make grants to eligible grantees as provided under this section to design and construct,
22.27projects to provide safe drinking water, due to contamination of drinking water by hazardous
22.28substances, through projects such as treatment systems, new drinking water wells, sealing
22.29contaminated wells, and connecting to alternative drinking water sources. The criteria for
22.30selecting projects must follow the criteria and rules established under section 115B.17.
22.31 Subd. 2.Definitions.(a) For purposes of this section, the following terms have the
22.32meanings given.
22Article 2 Sec. 5.
25-03139 as introduced03/19/25 REVISOR JSK/AC 23.1 (b) "Eligible grantee" means:
23.2 (1) for projects funded from the statewide drinking water contamination mitigation
23.3account in the bond proceeds fund, a city, county, school district, joint powers board, or
23.4other political subdivision of the state; and
23.5 (2) for projects funded from the statewide drinking water contamination mitigation
23.6account in the general fund, any person.
23.7 (c) "Private infrastructure projects" means improvements made to nonpublicly owned
23.8infrastructure such as sealing of private wells, connecting private properties to water mains,
23.9water service fees, treatment systems, and drilling new private wells in an unimpaired
23.10drinking water aquifer.
23.11 (d) "Public infrastructure projects" means improvements made to publicly owned
23.12infrastructure such as water main installation, public water system improvements, treatment
23.13systems, and associated improvements.
23.14 Subd. 3.Accounts.(a) A statewide drinking water contamination mitigation account is
23.15established in the bond proceeds fund. The account consists of state bond proceeds
23.16appropriated to the commissioner for this purpose. Money in the account may only be
23.17expended to acquire land or an interest in land and predesign, design, construct, and improve
23.18public infrastructure projects that further the purposes of this section. Notwithstanding
23.19section 115B.17, subdivision 6 or 16, any money recovered in a civil action for a project
23.20financed with bonds under this section shall be transferred to the commissioner of
23.21management and budget and applied toward principal and interest on outstanding bonds.
23.22 (b) A statewide drinking water contamination mitigation account is established in the
23.23general fund. The account consists of money as provided by law and any other money
23.24donated, allotted, transferred, or otherwise provided to the account. Money in the account
23.25may only be expended on public or private infrastructure projects that further the purposes
23.26of this section.
23.27Sec. 6. Minnesota Statutes 2024, section 116.182, subdivision 5, is amended to read:
23.28 Subd. 5.Rules.(a) The agency shall adopt rules for the administration of the financial
23.29assistance program. For wastewater treatment projects, the rules must include:
23.30 (1) application requirements;
23Article 2 Sec. 6.
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
24.2type of project and the degree of environmental impact, and scenic and wild river standards;
24.3and
24.4 (3) criteria for determining essential project components.
24.5 (b) Notwithstanding any provision in Minnesota Rules, chapter 7077, to the contrary,
24.6for purposes of Minnesota Rules, parts 7077.0117, 7077.0118, and 7077.0119, the
24.7commissioner must assign 40 points if a municipality is proposing a project to address
24.8emerging contaminants, as defined by the United States Environmental Protection Agency.
24.9This paragraph expires June 30, 2030.
24.10Sec. 7. Minnesota Statutes 2024, section 142A.46, subdivision 1, is amended to read:
24.11 Subdivision 1.Grant authority.The commissioner may make grants to state agencies
24.12and political subdivisions to construct or rehabilitate facilities for early childhood programs,
24.13crisis nurseries, or parenting time centers. The following requirements apply:
24.14 (1) The facilities must be owned by the state or a political subdivision, but may be leased
24.15under section 16A.695 to organizations that operate the programs. The commissioner must
24.16prescribe the terms and conditions of the leases.
24.17 (2) A grant for an individual facility must not exceed $500,000 for each program that
24.18is housed in the facility, up to a maximum of $2,000,000 for a facility that houses three
24.19programs or more. Programs include Head Start, School Readiness, Early Childhood Family
24.20Education, licensed child care, and other early childhood intervention programs.
24.21 (3) State appropriations must be matched on a 50 25 percent basis with nonstate funds.
24.22The matching requirement must apply program wide and not to individual grants.
24.23Sec. 8. Minnesota Statutes 2024, section 446A.07, subdivision 8, is amended to read:
24.24 Subd. 8.Other uses of revolving fund.(a) The clean water revolving fund may be used
24.25as provided in title VI of the Federal Water Pollution Control Act, including the following
24.26uses:
24.27 (1) to buy or refinance the debt obligation of governmental units for treatment works
24.28where debt was incurred and construction begun after March 7, 1985, at or below market
24.29rates;
24.30 (2) to guarantee or purchase insurance for local obligations to improve credit market
24.31access or reduce interest rates;
24Article 2 Sec. 8.
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
25.2on revenue or general obligation bonds issued by the authority if the bond proceeds are
25.3deposited in the fund;
25.4 (4) to provide loan guarantees, loans, or set-aside for similar revolving funds established
25.5by a governmental unit other than state agencies, or state agencies under sections 17.117,
25.6103F.725, subdivision 1a, and 116J.617;
25.7 (5) to earn interest on fund accounts; and
25.8 (6) to pay the reasonable costs incurred by the authority and the Pollution Control Agency
25.9of administering the fund and conducting activities required under the Federal Water Pollution
25.10Control Act, including water quality management planning under section 205(j) of the act
25.11and water quality standards continuing planning under section 303(e) of the act;.
25.12 (b) The clean water revolving fund may be used to provide additional subsidization as
25.13permitted under the Federal Water Pollution Control Act and other federal laws to provide
25.14principal forgiveness or grants:
25.15 (7) to provide principal forgiveness or grants to the extent permitted under the Federal
25.16Water Pollution Control Act and other federal law, (1) based on the affordability criteria
25.17and requirements established for the wastewater water infrastructure funding program under
25.18section 446A.072; and
25.19 (8) to provide loans, principal forgiveness, or grants to the extent permitted under the
25.20Federal Water Pollution Control Act and other federal law (2) for 25 percent of project costs
25.21up to a maximum of $1,000,000 for projects to address green infrastructure, water or energy
25.22efficiency improvements, or other environmentally innovative activities.; and
25.23 (3) for 50 percent of project costs up to a maximum of $3,000,000 for projects that
25.24address emerging contaminants as defined by the United States Environmental Protection
25.25Agency.
25.26 (b) Amounts spent under paragraph (a), clause (6), may not exceed the amount allowed
25.27under the Federal Water Pollution Control Act.
25.28 (c) Principal forgiveness or grants provided under paragraph (a), clause (8), may not
25.29exceed 25 percent of the eligible project costs as determined by the Pollution Control Agency
25.30for project components directly related to green infrastructure, water or energy efficiency
25.31improvements, or other environmentally innovative activities, up to a maximum of
25.32$1,000,000.
25Article 2 Sec. 8.
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:
26.2 Subd. 5a.Type and amount of assistance.(a) For a governmental unit receiving grant
26.3funding from the USDA/RECD, the authority may provide assistance in the form of a grant
26.4of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental
26.5unit may not receive a grant under this paragraph for more than $5,000,000 $10,000,000
26.6per project or $20,000 per existing connection, whichever is less, unless specifically approved
26.7by law.
26.8 (b) For a governmental unit receiving a loan from the clean water revolving fund under
26.9section 446A.07, the authority may provide assistance under this section in the form of a
26.10grant if the average annual residential wastewater system cost after completion of the project
26.11would otherwise exceed 1.4 percent of the median household income of the project service
26.12area. In determining whether the average annual residential wastewater system cost would
26.13exceed 1.4 percent, the authority must consider the total costs associated with building,
26.14operating, and maintaining the wastewater system, including existing wastewater debt
26.15service, debt service on the eligible project cost, and operation and maintenance costs. Debt
26.16service costs for the proposed project are calculated based on the maximum loan term
26.17permitted for the clean water revolving fund loan under section 446A.07, subdivision 7.
26.18The amount of the grant is equal to 80 percent of the amount needed to reduce the average
26.19annual residential wastewater system cost to 1.4 percent of median household income in
26.20the project service area, to a maximum of $5,000,000 $10,000,000 per project or $20,000
26.21per existing connection, whichever is less, unless specifically approved by law. The eligible
26.22project cost is determined by multiplying the total project costs minus any other grants by
26.23the essential project component percentage calculated under subdivision 3, paragraph (c),
26.24clause (1). In no case may the amount of the grant exceed 80 percent of the eligible project
26.25cost.
26.26 (c) For a governmental unit receiving a loan from the drinking water revolving fund
26.27under section 446A.081, the authority may provide assistance under this section in the form
26.28of a grant if the average annual residential drinking water system cost after completion of
26.29the project would otherwise exceed 1.2 percent of the median household income of the
26.30project service area. In determining whether the average annual residential drinking water
26.31system cost would exceed 1.2 percent, the authority must consider the total costs associated
26.32with building, operating, and maintaining the drinking water system, including existing
26.33drinking water debt service, debt service on the eligible project cost, and operation and
26.34maintenance costs. Debt service costs for the proposed project are calculated based on the
26.35maximum loan term permitted for the drinking water revolving fund loan under section
26Article 2 Sec. 9.
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
27.2the amount needed to reduce the average annual residential drinking water system cost to
27.31.2 percent of median household income in the project service area, to a maximum of
27.4$5,000,000 $10,000,000 per project or $20,000 per existing connection, whichever is less,
27.5unless specifically approved by law. The eligible project cost is determined by multiplying
27.6the total project costs minus any other grants by the essential project component percentage
27.7calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the
27.8grant exceed 80 percent of the eligible project cost.
27.9 (d) Notwithstanding the limits in paragraphs (a), (b), and (c), for a governmental unit
27.10receiving supplemental assistance under this section after January 1, 2002, if the authority
27.11determines that the governmental unit's construction and installation costs are significantly
27.12increased due to geological conditions of crystalline bedrock or karst areas and discharge
27.13limits that are more stringent than secondary treatment, the maximum award under this
27.14section shall not be more than $25,000 per existing connection.
27.15Sec. 10. Minnesota Statutes 2024, section 446A.073, subdivision 1, is amended to read:
27.16 Subdivision 1.Program established.When money is appropriated for grants under this
27.17program, the authority shall award grants up to a maximum of $7,000,000 $12,000,000 to
27.18governmental units to cover 80 percent of the cost of water infrastructure projects made
27.19necessary by:
27.20 (1) a wasteload reduction prescribed under a total maximum daily load plan required by
27.21section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
27.22 (2) a phosphorus concentration or mass limit which requires discharging one milligram
27.23per liter or less at permitted design flow which is incorporated into a permit issued by the
27.24Pollution Control Agency;
27.25 (3) any other water quality-based effluent limit established under section 115.03,
27.26subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution
27.27Control Agency that exceeds secondary treatment limits; or
27.28 (4) a total nitrogen concentration or mass limit that requires discharging ten milligrams
27.29per liter or less at permitted design flow.
27.30Sec. 11. Minnesota Statutes 2024, section 446A.081, subdivision 9, is amended to read:
27.31 Subd. 9.Other uses of fund.(a) The drinking water revolving loan fund may be used
27.32as provided in the act, including the following uses:
27Article 2 Sec. 11.
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
28.2systems for drinking water systems, where the debt was incurred after the date of enactment
28.3of the act, for the purposes of construction of the necessary improvements to comply with
28.4the national primary drinking water regulations under the federal Safe Drinking Water Act;
28.5 (2) to purchase or guarantee insurance for local obligations to improve credit market
28.6access or reduce interest rates;
28.7 (3) to provide a source of revenue or security for the payment of principal and interest
28.8on revenue or general obligation bonds issued by the authority if the bond proceeds are
28.9deposited in the fund;
28.10 (4) to provide loans or loan guarantees for similar revolving funds established by a
28.11governmental unit or state agency;
28.12 (5) to earn interest on fund accounts;
28.13 (6) to pay the reasonable costs incurred by the authority, the Department of Employment
28.14and Economic Development, and the Department of Health for conducting activities as
28.15authorized and required under the act up to the limits authorized under the act; and
28.16 (7) to develop and administer programs for water system supervision, source water
28.17protection, and related programs required under the act;.
28.18 (b) The drinking water revolving fund may be used to provide additional subsidization
28.19as permitted under the federal Safe Drinking Water Act and other federal law to
28.20disadvantaged communities to provide principal forgiveness or grants:
28.21 (8) to provide principal forgiveness or grants to the extent permitted under the federal
28.22Safe Drinking Water Act and other federal law, (1) based on the affordability criteria and
28.23requirements established for drinking water projects under the water infrastructure funding
28.24program under section 446A.072;
28.25 (9) to provide loans, principal forgiveness or grants to the extent permitted under the
28.26federal Safe Drinking Water Act and other federal law to address green infrastructure, water
28.27or energy efficiency improvements, or other environmentally innovative activities;
28.28 (10) to provide principal forgiveness, or grants (2) for 80 percent of project costs up to
28.29a maximum of $100,000 for projects needed to comply with national primary drinking water
28.30standards for an existing nonmunicipal community public water system;
28Article 2 Sec. 11.
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
29.2federal Safe Drinking Water Act and other federal laws for projects to replace the privately
29.3owned portion of drinking water lead service lines; and
29.4 (12) to provide principal forgiveness or grants (4) to the extent permitted under the
29.5federal Safe Drinking Water Act and other federal laws for 50 percent of project costs up
29.6to a maximum of $3,000,000 for projects to address emerging contaminants in drinking
29.7water as defined by the United States Environmental Protection Agency.; and
29.8 (5) for 50 percent of project costs up to a maximum of $3,000,000 for projects needed
29.9to comply with a maximum contaminant level as defined by the federal Safe Drinking Water
29.10Act.
29.11 (b) Principal forgiveness or grants provided under paragraph (a), clause (9), may not
29.12exceed 25 percent of the eligible project costs as determined by the Department of Health
29.13for project components directly related to green infrastructure, water or energy efficiency
29.14improvements, or other environmentally innovative activities, up to a maximum of
29.15$1,000,000.
29.16Sec. 12. [446A.082] EMERGING CONTAMINANTS GRANTS.
29.17 Subdivision 1.Program established.When money is appropriated under this program,
29.18the authority shall award grants to a governmental unit for up to 80 percent of the cost of
29.19drinking water infrastructure projects to address a confirmed exceedance of a health advisory
29.20level for a drinking water emerging contaminant as defined by the Environmental Protection
29.21Agency.
29.22 Subd. 2.Eligibility.An eligible project for this program must:
29.23 (1) be listed on the Drinking Water Revolving Fund Project Priority List per Minnesota
29.24Rules, part 4720.9000;
29.25 (2) receive priority points under Minnesota Rules, part 4720.9020, subpart 4a; and
29.26 (3) be certified by the Department of Health per Minnesota Rules, part 4720.9060.
29.27 Subd. 3.Application and reservation of funds.Grant applications to the authority may
29.28be made at any time on forms prescribed by the authority, including a project schedule and
29.29cost estimate for the work necessary to comply with the purpose described in subdivision
29.301. The Department of Health shall review and certify to the authority those projects that
29.31have plans and specifications approved under Minnesota Rules, part 4720.9060. When a
29.32project is certified by the Department of Health, the authority shall reserve grant funds for
29Article 2 Sec. 12.
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
30.2amount based on the cost estimate in the Department of Health certification or the as-bid
30.3costs, whichever is less.
30.4 Subd. 4.Grant amount.The grant amount for an eligible project under this program
30.5shall be for an amount up to 80 percent of the eligible as-bid project cost up to $12,000,000,
30.6minus the amount of federal emerging contaminant funds the project receives under section
30.7446A.081, subdivision 9, paragraph (a), clause (12), or other federal emerging contaminant
30.8funds.
30.9 Subd. 5.Grant approval.The authority shall award a grant for an eligible project only
30.10after:
30.11 (1) the applicant has submitted the as-bid project cost;
30.12 (2) the Department of Health has certified the grant eligible portion of the project; and
30.13 (3) the authority has determined that the additional financing necessary to complete the
30.14project has been committed from other sources.
30.15 Subd. 6.Grant disbursement.Grant funds shall be disbursed by the authority as eligible
30.16project costs are incurred by the governmental unit and in accordance with a project financing
30.17agreement and applicable state laws and rules governing the disbursements.
30.18 Subd. 7.Recovering expenses.Money granted to a grantee under this program may be
30.19recovered in a civil action brought by the attorney general against any person who may be
30.20liable under section 115B.04 or any other law. To be eligible for recovery, the expenses
30.21must be reasonable and necessary expenses, including all response costs, and administrative
30.22and legal expenses. The authority, Department of Health, and Pollution Control Agency's
30.23certification of expenses shall be prima facie evidence that the expenses are reasonable and
30.24necessary. Any money recovered in a civil action for a project financed with bonds under
30.25this section shall be transferred to the commissioner of management and budget for deposit
30.26in the state bond fund and applied toward principal and interest on outstanding bonds.
30.27Sec. 13. Laws 2013, chapter 143, article 12, section 21, is amended to read:
30.28Sec. 21. LEGISLATIVE OFFICE FACILITIES.
30.29 (a) The commissioner of administration may enter into a long-term lease-purchase
30.30agreement for a term of up to 25 years, to predesign, design, construct, and equip offices,
30.31hearing rooms, and parking facilities for legislative and other functions. The facility must
30.32be located on the block bounded by Sherburne Avenue on the north, Park Street on the west,
30Article 2 Sec. 13.
25-03139 as introduced03/19/25 REVISOR JSK/AC 31.1University Avenue on the south, and North Capitol Boulevard on the east. The legislative
31.2office facility must provide office accommodations for all senators and senate staff who do
31.3not have offices in the Capitol building and on-site parking facilities for all members and
31.4staff and disabled visitors to senate offices. A parking structure may also be built on the
31.5state-owned land located in the block bounded by Sherburne Avenue on the north, Park
31.6Street on the east, University Avenue on the south, and Rice Street on the west. The
31.7commissioner of management and budget may issue lease revenue bonds or certificates of
31.8participation associated with the lease-purchase agreement. The lease-purchase agreements
31.9must not be terminated, except for nonappropriation of money. The lease-purchase
31.10agreements must provide the state with a unilateral right to purchase the leased premises at
31.11specified times for specified amounts. The lease-purchase agreements are exempt from
31.12Minnesota Statutes, section 16B.24, subdivisions 6 and 6a.
31.13 (b) The facilities under the lease-purchase agreement are exempt from the design
31.14competition requirement under Minnesota Statutes, section 15B.10. Notwithstanding anything
31.15to the contrary under Minnesota Statutes, sections 16C.32 and 16C.33, if the commissioner
31.16of administration elects to use a design-build delivery method to design and construct one
31.17or more facilities under this appropriation, the Capitol Area Architectural and Planning
31.18Board, in cooperation with the commissioner, shall create a selection committee to act as
31.19the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design and
31.20construction of the facilities. Notwithstanding Minnesota Statutes, section 16B.33, if the
31.21commissioner elects to contract with a primary designer to design one or more facilities
31.22under this appropriation, the Capitol Area Architectural and Planning Board, in cooperation
31.23with the commissioner, shall create a selection committee to conduct the selection process
31.24in accordance with standards under Minnesota Statutes, chapters 15B, 16B, and 16C. A
31.25selection committee created under this section must contain no more than seven members,
31.26including at least three representatives designated by the senate Committee on Rules and
31.27Administration and three representatives designated by the speaker of the house.
31.28 (c) Notwithstanding any provision to the contrary in Minnesota Statutes, sections 16C.32
31.29and 16C.33, if the commissioner of administration elects to use a design-build delivery
31.30method to design, construct, and equip one or more facilities and associated infrastructure
31.31to provide audio and video broadcast services for the Capitol building, State Office Building,
31.32and a new legislative office building, if applicable, the commissioner shall create a selection
31.33committee to act as the board under Minnesota Statutes, sections 16C.32 and 16C.33, to
31.34design, build, and equip the facilities. The selected design-builder may self-perform trade
31.35work or name an audio and video subcontractor as a member of the design-builder's team.
31Article 2 Sec. 13.
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
32.2design-builder is not required to competitively bid the trade work. Notwithstanding Minnesota
32.3Statutes, section 16C.33, subdivision 5, paragraph (b), after obtaining and evaluating
32.4qualifications from each design-builder, in accordance with the weighted criteria and
32.5subcriteria and procedures provided in the request for qualifications, the selection committee
32.6shall select a short list of up to five proposals. If the commissioner does not receive any
32.7proposals, the commissioner may either:
32.8 (1) solicit new proposals;
32.9 (2) revise the request for qualifications and thereafter solicit new proposals using the
32.10revised request for qualifications; or
32.11 (3) request selection of a primary designer under Minnesota Statutes, section 16B.33,
32.1216C.08, or 16C.095, and proceed with competitive bidding pursuant to Minnesota Statutes,
32.13sections 16C.25 to 16C.29.
32.14 (d) The commissioner of administration may enter into a ground lease for state-owned
32.15property in the capitol area in conjunction with the execution of a lease-purchase agreement
32.16entered into under this section for any improvements constructed on that site. Notwithstanding
32.17the requirements of Minnesota Statutes, section 16A.695, subdivision 2, paragraph (b), the
32.18ground lease must be for a term equal to the term of the lease-purchase agreement, and must
32.19include an option to purchase the land at its then fair market value, if the improvements are
32.20not purchased by the state at the end of the term of the lease-purchase agreement, or at any
32.21earlier time that the lease-purchase agreement is terminated.
32.22 (e) The commissioner of administration must not prepare final plans and specifications
32.23for any construction authorized under this section until the program plan and cost estimates
32.24for all elements necessary to complete the project have been approved by the senate
32.25Committee on Rules and Administration.
32.26 (f) $3,000,000 is appropriated in fiscal year 2014 from the general fund to the
32.27commissioner of administration for predesign and design of facilities authorized under
32.28paragraph (a). This appropriation is available for expenditure the day following final
32.29enactment and until June 30, 2015.
32.30 (g) The commissioner of administration may reserve a portion of money from
32.31appropriations for office space costs of the legislature to fund future repairs for facilities
32.32constructed under the authority provided in this section. Money reserved under this paragraph
32.33must be credited to a segregated account for each building in the special revenue fund and
32.34is appropriated to the commissioner to make the repairs. When the state acquires title to a
32Article 2 Sec. 13.
25-03139 as introduced03/19/25 REVISOR JSK/AC 33.1building with an account established under this paragraph, the account for that building
33.2must be abolished and the balance remaining in the account must be transferred to the
33.3appropriate asset preservation and replacement account.
33.4 (h) Certificates of participation or lease revenue bonds issued by the commissioner of
33.5management and budget may be issued by public or private sale and in one or more series
33.6on the terms and conditions the commissioner of management and budget determines to be
33.7in the best interests of the state, shall be dated and bear interest at a fixed or variable rate,
33.8may be includable in or excludable from the gross income of the owners for federal income
33.9tax purposes, and may be sold at any price or percentage of par value. Any bid received
33.10may be rejected.
33.11 (i) At the time of, or in anticipation of, issuing the lease revenue bonds or certificates
33.12of participation, and at any time thereafter, so long as the bonds or certificates are outstanding,
33.13the commissioner of management and budget may enter into agreements and ancillary
33.14arrangements relating to the bonds or certificates, including but not limited to trust indentures,
33.15grant agreements, lease or use agreements, operating agreements, management agreements,
33.16liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance
33.17policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest
33.18exchange agreements. Any payments made or received according to the agreement or
33.19ancillary arrangement shall be made from or deposited as provided in the agreement or
33.20ancillary arrangement. The determination of the commissioner of management and budget
33.21included in an interest exchange agreement that the agreement relates to a certificate or
33.22bond shall be conclusive.
33.23 (j) The commissioner of management and budget may enter into written agreements or
33.24contracts relating to the continuing disclosure of information necessary to comply with or
33.25facilitate the issuance of the lease-purchase agreement and the related lease revenue bonds
33.26or certificates of participation in accordance with federal securities laws, rules, and
33.27regulations, including Securities and Exchange Commission rules and regulations in Code
33.28of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of
33.29covenants with purchasers and holders of certificates or bonds set forth in the order or
33.30resolution authorizing the issuance of the certificates or bonds or in a separate document
33.31authorized by the order or resolution.
33.32 (k) The commissioner of administration from time to time may enter into a new
33.33lease-purchase agreement and the commissioner of management and budget may issue and
33.34sell lease revenue bonds or certificates of participation for the purpose of refunding any
33.35lease-purchase agreement authorized under this section and related lease revenue bonds or
33Article 2 Sec. 13.
25-03139 as introduced03/19/25 REVISOR JSK/AC 34.1certificates of participation then outstanding, including the payment of any redemption
34.2premiums, any interest accrued or that is to accrue to the redemption date, and costs related
34.3to the issuance and sale of such refunding bonds or certificates. The proceeds of any refunding
34.4bonds or certificates may, in the discretion of the commissioner of management and budget,
34.5be applied to the purchase or payment at maturity of the bonds or certificates to be refunded,
34.6to the redemption of the outstanding lease-purchase agreements and bonds or certificates
34.7on any redemption date, or to pay interest on the refunding lease-purchase agreements and
34.8bonds or certificates and may, pending such application, be placed in escrow to be applied
34.9to such purchase, payment, retirement, or redemption. Any escrowed proceeds, pending
34.10such use, may be invested and reinvested in obligations that are authorized investments
34.11under section 11A.24. The income earned or realized on any authorized investment may
34.12also be applied to the payment of the lease-purchase agreements and bonds or certificates
34.13to be refunded, to interest or premiums on the refunded bonds or certificates, or to pay
34.14interest on the refunding lease-purchase agreements and bonds or certificates. After the
34.15terms of the escrow have been fully satisfied, any balance of proceeds and any investment
34.16income may be returned to the general fund for use in a lawful manner. All refunding
34.17lease-purchase agreements and bonds or certificates issued under the provisions of this
34.18subdivision must be prepared, executed, delivered, and secured by appropriations in the
34.19same manner as the lease-purchase agreements and bonds or certificates to be refunded.
34.20 (l) The waiver of immunity by the state provided for by section 3.751, subdivision 1,
34.21shall be applicable to lease revenue bonds or certificates of participation issued under this
34.22section and any ancillary contracts to which the commissioner is a party.
34.23Sec. 14. REPEALER.
34.24 (a) Minnesota Statutes 2024, section 16A.662, is repealed.
34.25 (b) Minnesota Statutes 2024, section 116J.417, subdivision 9, is repealed effective
34.26retroactively from June 2, 2023.
34.27Sec. 15. EFFECTIVE DATE.
34.28 Except as otherwise specified, this article is effective the day following final enactment.
34Article 2 Sec. 15.
25-03139 as introduced03/19/25 REVISOR JSK/AC Page.Ln 1.13APPROPRIATIONS...............................................................................ARTICLE 1
Page.Ln 19.26MISCELLANEOUS...............................................................................ARTICLE 2
1
APPENDIX
Article locations for 25-03139 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: 25-03139 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: 25-03139