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

1.6 	Section 1. FLOOD HAZARD MITIGATION.
 1.7 		Subdivision 1.Appropriation. (a) $52,200,000 is appropriated from the bond proceeds 
1.8 	fund to the commissioner of natural resources for the state share of flood hazard mitigation 
1.9 	grants for publicly owned capital improvements to prevent or alleviate flood damage under 
1.10 	Minnesota Statutes, section 103F.161.
1.11 	(b) Levee projects, to the extent practicable, shall meet the state standard of three feet 
1.12 	above the 100-year flood elevation. Project priorities shall be determined by the commissioner 
1.13 	as appropriate, based on need and consideration of available leveraging of federal, state, 
1.14 	and local funds.
1.15 	(c) Notwithstanding paragraph (b), $14,710,000 of this appropriation is for projects in 
1.16 	the city of Moorhead to mitigate and acquire flood-prone properties to address the North 
1.17 	Moorhead Project (Oakport area) and gaps in citywide protection consistent with and 
1.18 	compatible with the Fargo-Moorhead metropolitan diversion project. Any unspent portion 
1.19 	of this appropriation remaining after completion of the flood mitigation and land acquisition 
1.20 	is, after written notice to the commissioner of management and budget, available for a grant 
1.21 	to the Moorhead-Clay County Joint Powers Authority to construct improvements and acquire 
1.22 	land necessary for Fargo-Moorhead metropolitan diversion project components in Clay 
1.23 	County and Wilkin County.
2.1 	(d) To the extent that the cost of a project exceeds two percent of the median household 
2.2 	income in a municipality multiplied by the number of households in the municipality, this 
2.3 	appropriation is also for the local share of the project.
2.4 		Subd. 2.Bond sale. To provide the money appropriated in this section from the bond 
2.5 	proceeds fund, the commissioner of management and budget shall sell and issue bonds of 
2.6 	the state in an amount up to $52,200,000 in the manner, upon the terms, and with the effect 
2.7 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
2.8 	Constitution, article XI, sections 4 to 7.

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