1.1 	A bill for an act
1.2 	relating to capital improvements; authorizing the sale and issuance of state 
1.3 	bonds; appropriating money for flood hazard mitigation grants.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. FLOOD HAZARD MITIGATION GRANTS; APPROPRIATION.
 1.6 		Subdivision 1.Appropriation. (a) $70,000,000 is appropriated from the bond 
1.7 	proceeds fund to the commissioner of natural resources for the state share of flood hazard 
1.8 	mitigation grants for publicly owned capital improvements to prevent or alleviate flood 
1.9 	damage under Minnesota  Statutes, section 103F.161. 
1.10 	(b) This appropriation includes money for county and municipal projects in the 
1.11 	Red River Valley, as prioritized by the commissioner based on need, including but not 
1.12 	limited to the following: Ada; Borup; Breckenridge; Clay County; Climax; Crookston; 
1.13 	Felton; Georgetown; Halstad; Hendrum; Moorhead; Nielsville; Oakport Township; Oslo; 
1.14 	Perley; Roseau; and Shelly.
1.15 	(c) This appropriation includes money for the following other county and municipal 
1.16 	projects, as prioritized by the commissioner, based on need: Afton; Austin; Granite Falls; 
1.17 	Inver Grove Heights; Montevideo; and Rushford.
1.18 	(d) This appropriation includes money for the following watershed district projects, 
1.19 	as prioritized by the commissioner based on need: Brandt Angus, Middle-Snake-Tamarac 
1.20 	Rivers Watershed District; Fountain Lake, Shell Rock River Watershed District; Grand 
1.21 	Marais Creek, Red Lake Watershed District; Hay Creek-Norland, Roseau Watershed 
1.22 	District; Manston Slough, Buffalo-Red River Watershed District; North Ottawa, Bois de 
1.23 	Sioux Watershed District; Red Path, Bois de Sioux Watershed District; Springbrook, Two 
1.24 	Rivers Watershed District; Thief River Falls, County Ditch No. 1, Red Lake Watershed 
2.1 	District; Upper Becker Dams, Wild Rice Watershed District; and Upper South Branch, 
2.2 	Buffalo-Red River Watershed District.
2.3 	(e) For any project listed in this subdivision that the commissioner determines is not 
2.4 	ready to proceed or does not expend all the money allocated to it, the commissioner may 
2.5 	allocate that project's money to a project on the commissioner's priority list. 
2.6 	(f) To the extent that the cost of a project in paragraph (b) or (c) exceeds two 
2.7 	percent of the median household income in the municipality multiplied by the number of 
2.8 	households in the municipality, this appropriation is also for the local share of the project.
2.9 		Subd. 2.Bond sale. To provide the money appropriated in this section from the 
2.10 	bond proceeds fund, the commissioner of management and budget shall sell and issue 
2.11 	bonds of the state in an amount up to $70,000,000 in the manner, upon the terms, and with 
2.12 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
2.13 	Minnesota Constitution, article XI, sections 4 to 7.

2.14 	Sec. 2. EFFECTIVE DATE.
 2.15 	Section 1 is effective the day following final enactment.