1.1 	A bill for an act
1.2 	relating to capital investment; appropriating money for flood hazard mitigation 
1.3 	projects in the Red River Basin; 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. RED RIVER BASIN FLOOD DAMAGE REDUCTION PROJECTS.
 1.6 		Subdivision 1.Appropriation. $57,338,000 is appropriated from the bond proceeds 
1.7 	fund to the commissioner of natural resources for the state share of flood hazard mitigation 
1.8 	grants for publicly owned capital improvements to prevent or alleviate flood damage under 
1.9 	Minnesota Statutes, section 103F.161, subdivision 3, and to enhance natural resources. 
1.10 	Notwithstanding Minnesota Statutes, section 103F.161, subdivision 2, a grant for 
1.11 	implementation of a flood hazard mitigation project in the Red River basin, consistent with 
1.12 	the 1998 mediation agreement and approved by the Red River flood damage reduction work 
1.13 	group, may be for up to 75 percent of the cost of the proposed mitigation measures. Of this 
1.14 	appropriation:
1.15 	(1) $2,000,000 is for the community grant program to remove the city of Newfolden 
1.16 	from the 100-year floodplain to the Middle-Snake-Tamarac Rivers Watershed District;
1.17 	(2) $11,300,000 is for increasing storage capacity and improving water level control at 
1.18 	Nelson Slough/JD 19 improvement project to the Middle-Snake-Tamarac Rivers Watershed 
1.19 	District;
1.20 	(3) $16,732,000 is for final engineering, permitting, land acquisition, and construction 
1.21 	of Phases 1 and 2 of the Klondike Clean Water Retention Project to the Two Rivers 
1.22 	Watershed District;
2.1 	(4) $13,700,000 is for the construction of the Mustinka River Rehabilitation - Redpath 
2.2 	Impoundment Project to the Bois de Sioux Watershed District;
2.3 	(5) $9,000,000 is for the construction of the Roseau Lake Rehabilitation project to the 
2.4 	Roseau River Watershed District;
2.5 	(6) $4,500,000 is for permitting, plans, easement acquisition, and final design of the 
2.6 	Whitney Lake retention sites to the Whitney Lake Project to the Roseau River Watershed 
2.7 	District; and
2.8 	(7) $106,000 is for the Chiefs Coulee Project to reduce flood damage in the city of Thief 
2.9 	River Falls to the Red Lake Watershed District.
2.10 	(b) For the purpose of determining any local match required, the project includes all 
2.11 	local flood-related activities.
2.12 	(c) To the extent that the cost of the project exceeds two percent of the median household 
2.13 	income in the municipality multiplied by the number of households in the municipality, this  
2.14 	appropriation is also for the local share of the project.
2.15 		Subd. 2.Bond sale. To provide the money appropriated in this section from the bond 
2.16 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.17 	the state in an amount up to $57,338,000 in the manner, upon the terms, and with the effect 
2.18 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.19 	Constitution, article XI, sections 4 to 7.

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