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

1.5 	Section 1. FLOOD HAZARD MITIGATION GRANTS; APPROPRIATIONS.
 1.6 		Subdivision 1.Appropriation. (a) $26,000,000 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 	damages under Minnesota Statutes, section 103F.161. To the extent practical, community 
1.10 	levee projects shall meet the state standard of three feet above the 100-year flood elevation.
1.11 	(b) Project priorities shall be determined by the commissioner as appropriate, based 
1.12 	on need and consideration of available leveraging of federal, local, and state funds.
1.13 	(c) This appropriation includes money for the following county and municipal 
1.14 	projects: Afton, Austin, Bloomington, Browns Valley, Delano, Golden Valley, Halstad, 
1.15 	Hawley, Hendrum, Inver Grove Heights, Montevideo, Nielsville, Ortonville, Owatonna, 
1.16 	Perley, Rushford, and St. Vincent.
1.17 	(d) This appropriation includes money for projects in the following watersheds: 
1.18 	Bois de Sioux Watershed District, Buffalo Red River Watershed District, Cedar River 
1.19 	Watershed District, Lower Minnesota River Watershed District, Middle Snake Tamarac 
1.20 	Rivers Watershed District, Minnesota River Watershed District, Prior Lake-Spring Lake 
1.21 	Watershed District, Red Lake Watershed District, Roseau River Watershed District, Sand 
1.22 	Lake Watershed District, Shell Rock River Watershed District, Two Rivers Watershed 
1.23 	District, and Wild Rice River Watershed District.
2.1 	(e) For any project listed in this subdivision that the commissioner determines is not 
2.2 	ready to proceed or does not expend all the money allocated to it, the commissioner may 
2.3 	allocate that project's money to a priority project on the commissioner's list.
2.4 	(f) To the extent that the cost of a municipal project exceeds two percent of the 
2.5 	median household income in the municipality multiplied by the number of households in 
2.6 	the municipality, this appropriation is also for the local share of the project.
2.7 		Subd. 2.Bond sale. To provide the money appropriated in this section from the 
2.8 	bond proceeds fund, the commissioner of management and budget shall sell and issue 
2.9 	bonds of the state in an amount up to $26,000,000 in the manner, upon the terms, and with 
2.10 	the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
2.11 	Minnesota Constitution, article XI, sections 4 to 7.

2.12 	EFFECTIVE DATE. This section is effective the day following final enactment.