1.1 	A bill for an act
1.2 	relating to capital investment; changing the source of funding for previously 
1.3 	authorized capital projects; authorizing spending to acquire and better public land 
1.4 	and buildings and other improvements of a capital nature with certain conditions; 
1.5 	authorizing the sale and issuance of state bonds; appropriating money; modifying 
1.6 	prior appropriations;amending Minnesota Statutes 2018, sections 116P.08, 
1.7 	subdivision 1; 161.088, subdivision 2; Laws 2018, chapter 214, article 1, sections 
1.8 	16, subdivisions 2, 7, 11; 17, subdivision 7; 21, subdivision 28; 22, subdivision 4; 
1.9 	25, subdivision 3; 26, subdivision 1; article 3, sections 7, subdivision 1; 11; 13; 
1.10 	14; 15; repealing Minnesota Statutes 2018, section 16A.969; Laws 2018, chapter 
1.11 	214, article 3, sections 7, subdivision 2; 8, subdivision 2; 9, subdivision 2; 10, 
1.12 	subdivision 2; article 6, section 4.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	APPROPRIATIONS

1.16	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.17 	The sums shown in the column under "Appropriations" are appropriated from the bond 
1.18 	proceeds fund, or another named fund, to the state agencies or officials indicated, to be 
1.19 	spent for public purposes. Appropriations of bond proceeds must be spent as authorized by 
1.20 	the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public 
1.21 	land and buildings and other public improvements of a capital nature, or as authorized by 
1.22 	the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless 
1.23 	otherwise specified, money appropriated in this act:
1.24 	(1) may be used to pay state agency staff costs that are attributed directly to the capital 
1.25 	program or project in accordance with accounting policies adopted by the commissioner of 
1.26 	management and budget;
2.1 	(2) is available until the project is completed or abandoned subject to Minnesota Statutes, 
2.2 	section 16A.642;
2.3 	(3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046, 
2.4 	should not be used for projects that can be financed within a reasonable time frame under 
2.5 	Minnesota 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 
2.7 	and budget determines that an amount sufficient to complete the project as described in this 
2.8 	act has been committed to the project, as required by Minnesota Statutes, section 16A.502.

2.9						APPROPRIATIONS

2.10	Sec. 2. NATURAL RESOURCES

2.11	Subdivision 1.Total Appropriation
 			$
	13,000,000
	
2.12 	(a) To the commissioner of natural resources 
2.13 	for the purposes specified in this section.
2.14 	(b) The appropriations in this section are 
2.15 	subject to the requirements of the natural 
2.16 	resources capital improvement program under 
2.17 	Minnesota Statutes, section 86A.12, unless 
2.18 	this section or the statutes referred to in this 
2.19 	section provide more specific standards, 
2.20 	criteria, or priorities for projects than 
2.21 	Minnesota Statutes, section 86A.12.

2.22	Subd. 2.Natural Resources Asset Preservation
 				3,419,000
	
2.23 	For the renovation of state-owned facilities 
2.24 	and recreational assets operated by the 
2.25 	commissioner of natural resources to be spent 
2.26 	in accordance with Minnesota Statutes, section 
2.27 	84.946. Notwithstanding Minnesota Statutes, 
2.28 	section 84.946, the commissioner may use this 
2.29 	appropriation to replace buildings if, 
2.30 	considering the embedded energy in the 
2.31 	building, that is the most energy-efficient and 
2.32 	carbon-reducing method of renovation.

2.33	Subd. 3.Elk River - Lake Orono
 				1,500,000
	
3.1 	For a grant to the city of Elk River to dredge 
3.2 	Lake Orono.

3.3	Subd. 4.Lake Redwood Reclamation
 				7,300,000
	
3.4 	For a grant to the Redwood-Cottonwood 
3.5 	Rivers Control Area, a joint powers entity, to 
3.6 	predesign, design, construct, and equip the 
3.7 	reservoir reclamation and enhancement of the 
3.8 	66-acre Lake Redwood Reservoir, to remove 
3.9 	approximately 650,000 cubic yards of 
3.10 	sediment and increase its depth from 
3.11 	approximately 2.8 feet to 20 feet in order to 
3.12 	secure renewable energy capacity of the 
3.13 	hydroelectric dam which is impeded by lack 
3.14 	of water capacity, reduce the flow of pollutants 
3.15 	to the Minnesota River, increase fish habitat, 
3.16 	and enhance recreational opportunities.

3.17	Subd. 5.South St. Paul - Seidl's Lake
 				781,000
	
3.18 	For a grant to the city of South St. Paul for 
3.19 	capital improvements to improve the water 
3.20 	quality of Seidl's Lake. The capital 
3.21 	improvements include design, engineering, 
3.22 	construction, and equipping of a storm water 
3.23 	lift station to discharge excess storm water 
3.24 	into the city of South St. Paul's storm sewer 
3.25 	system to minimize the fluctuating water 
3.26 	levels of the lake. This project may be 
3.27 	implemented jointly by the cities of South St. 
3.28 	Paul, Inver Grove Heights, and West St. Paul.

3.29	Sec. 3. POLLUTION CONTROL AGENCY
 			$
	10,300,000
	
3.30 	To the Pollution Control Agency to design 
3.31 	and construct remedial systems, including 
3.32 	cleanup and removal of a leaking hazardous 
3.33 	waste pit and protection of groundwater, at 
3.34 	the Waste Disposal Engineering site in Anoka 
4.1 	County in accordance with the closed landfill 
4.2 	program under Minnesota Statutes, sections 
4.3 	115B.39 to 115B.42.

4.4
4.5	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 			$
	10,000,000
	
4.6 	(a) To the Board of Water and Soil Resources 
4.7 	to acquire conservation easements from 
4.8 	landowners to preserve, restore, create, and 
4.9 	enhance wetlands and associated uplands of 
4.10 	prairie and grasslands, and restore and enhance 
4.11 	rivers and streams, riparian lands, and 
4.12 	associated uplands of prairie and grasslands 
4.13 	in order to protect soil and water quality, 
4.14 	support fish and wildlife habitat, reduce flood 
4.15 	damage, and provide other public benefits. 
4.16 	The provisions of Minnesota Statutes, section 
4.17 	103F.515, apply to this program.
4.18 	(b) The board shall give priority to leveraging 
4.19 	federal money by enrolling targeted new lands 
4.20 	or enrolling environmentally sensitive lands 
4.21 	that have expiring federal conservation 
4.22 	agreements.
4.23 	(c) The board is authorized to enter into new 
4.24 	agreements and amend past agreements with 
4.25 	landowners as required by Minnesota Statutes, 
4.26 	section 103F.515, subdivision 5, to allow for 
4.27 	restoration.
4.28 	(d) Of this appropriation, up to five percent 
4.29 	may be used for restoration, rehabilitation, and 
4.30 	enhancement, and no more than $1,000,000 
4.31 	may be used to acquire working lands 
4.32 	easements.

4.33	Sec. 5. METROPOLITAN COUNCIL
 			$
	10,000,000
	
5.1 	To the Metropolitan Council for the cost of 
5.2 	improvements and betterments of a capital 
5.3 	nature and acquisition by the council and local 
5.4 	government units of regional recreational 
5.5 	open-space lands in accordance with the 
5.6 	council's policy plan as provided in Minnesota 
5.7 	Statutes, section 473.147. This appropriation 
5.8 	must not be used to purchase easements.

5.9	Sec. 6. PUBLIC FACILITIES AUTHORITY

5.10	Subdivision 1.Total Appropriation
 			$
	59,000,000
	
5.11 	To the Public Facilities Authority for the 
5.12 	purposes specified in this section.

5.13	Subd. 2.State Match for Federal Grants
 				6,000,000
	
5.14 	To match federal grants for the clean water 
5.15 	revolving fund for wastewater treatment under 
5.16 	Minnesota Statutes, section 446A.07. This 
5.17 	appropriation must be used for qualified 
5.18 	capital projects.

5.19	Subd. 3.Water Infrastructure Funding Program
 				14,652,000
	
5.20 	For grants to eligible municipalities under the 
5.21 	wastewater infrastructure funding program 
5.22 	under Minnesota Statutes, section 446A.072, 
5.23 	for wastewater projects listed on the Pollution 
5.24 	Control Agency's project priority list in the 
5.25 	fundable range under the clean water revolving 
5.26 	fund program.

5.27
5.28	Subd. 4.Point Source Implementation Grants 
Program
 				38,348,000
	
5.29 	For grants to eligible municipalities under the 
5.30 	point source implementation grants program 
5.31 	under Minnesota Statutes, section 446A.073. 
5.32 	This appropriation must be used for qualified 
5.33 	capital projects.

6.1	Sec. 7. BOND SALE EXPENSES
 			$
	102,000
	
6.2 	To the commissioner of management and 
6.3 	budget for bond sale expenses under 
6.4 	Minnesota Statutes, section 16A.641, 
6.5 	subdivision 8.

6.6 	Sec. 8. BOND SALE AUTHORIZATION.
 6.7 	To provide the money appropriated in this act from the bond proceeds fund, the 
6.8 	commissioner of management and budget shall sell and issue bonds of the state in an amount 
6.9 	up to $102,402,000 in the manner, upon the terms, and with the effect prescribed by 
6.10 	Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article 
6.11 	XI, sections 4 to 7.

6.12 	Sec. 9.  REPEALER.
 6.13 	Minnesota Statutes 2018, section 16A.969, and Laws 2018, chapter 214, article 6, section 
6.14 	4, are repealed.

6.15 	Sec. 10. Minnesota Statutes 2018, section 116P.08, subdivision 1, is amended to read:
6.16 		Subdivision 1.Expenditures. (a) Money in the trust fund may be spent only for:
6.17 	(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;
6.18 	(2) research that contributes to increasing the effectiveness of protecting or managing 
6.19 	the state's environment or natural resources;
6.20 	(3) collection and analysis of information that assists in developing the state's 
6.21 	environmental and natural resources policies;
6.22 	(4) enhancement of public education, awareness, and understanding necessary for the 
6.23 	protection, conservation, restoration, and enhancement of air, land, water, forests, fish, 
6.24 	wildlife, and other natural resources;
6.25 	(5) capital projects for the preservation and protection of unique natural resources;
6.26 	(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural 
6.27 	resources that otherwise may be substantially impaired or destroyed in any area of the state;
6.28 	(7) administrative and investment expenses incurred by the State Board of Investment 
6.29 	in investing deposits to the trust fund; and
6.30 	(8) administrative expenses subject to the limits in section 116P.09; and.
7.1 	(9) to pay principal and interest on special appropriation trust fund bonds issued pursuant 
7.2 	to section 16A.969 and other law.
7.3 	(b) In making recommendations for expenditures from the trust fund, the commission 
7.4 	shall give priority to funding programs and projects under paragraph (a), clauses (1) and 
7.5 	(6). Any requests for proposals issued by the commission shall clearly indicate these 
7.6 	priorities.

7.7 	Sec. 11. EFFECTIVE DATE.
 7.8 	This article is effective the day following final enactment.

7.9 	ARTICLE 2
7.10 	CORRECTIONS TO 2018 ACT

7.11 	Section 1. Minnesota Statutes 2018, section 161.088, subdivision 2, is amended to read:
7.12 		Subd. 2.Program authority; funding. (a) As provided in this section, the commissioner 
7.13 	shall establish a corridors of commerce program for trunk highway construction, 
7.14 	reconstruction, and improvement, including maintenance operations, that improves commerce 
7.15 	in the state.
7.16 	(b) The commissioner may expend funds under the program from appropriations to the 
7.17 	commissioner that are:
7.18 	(1) made specifically by law for use under this section;
7.19 	(2) at the discretion of the commissioner, made for the budget activities in the state roads 
7.20 	program of operations and maintenance, program planning and delivery, or state road 
7.21 	construction; and
7.22 	(3) made for the corridor investment management strategy program, unless specified 
7.23 	otherwise.
7.24 	(c) The commissioner shall include in the program the cost participation policy for local 
7.25 	units of government.
7.26 	(d) The commissioner may use up to 17 percent of any appropriation to the program for 
7.27 	program delivery.

7.28 	Sec. 2. Laws 2018, chapter 214, article 1, section 16, subdivision 2, is amended to read:

7.29	Subd. 2.Local Road Improvement Fund Grants
 				78,600,000
	
8.1 	(a) From the bond proceeds account in the 
8.2 	state transportation fund as provided in 
8.3 	Minnesota Statutes, section 174.50, for trunk 
8.4 	highway corridor projects under Minnesota 
8.5 	Statutes, section 174.52, subdivision 2, for 
8.6 	construction and reconstruction of local roads 
8.7 	with statewide or regional significance under 
8.8 	Minnesota Statutes, section 174.52, 
8.9 	subdivision 4, or for grants to counties to assist 
8.10 	in paying the costs of rural road safety capital 
8.11 	improvement projects on county state-aid 
8.12 	highways under Minnesota Statutes, section 
8.13 	174.52, subdivision 4a.
8.14 	(b) Of this amount, $13,500,000 is for a grant 
8.15 	to the city of Dayton for design, engineering, 
8.16 	environmental analysis, property and easement 
8.17 	acquisition, construction, and reconstruction 
8.18 	of local roads in conjunction with an 
8.19 	interchange on marked Interstate Highway 94 
8.20 	near Hennepin County State-Aid Highway 
8.21 	101, known as Brockton Lane, in Dayton.
8.22 	(c) Of this amount, $6,100,000 is for a grant 
8.23 	to the city of Inver Grove Heights to 
8.24 	predesign, design, engineer, acquire 
8.25 	right-of-way property and temporary and 
8.26 	permanent easements, inspect, and construct 
8.27 	or reconstruct: (1) realignment of Dakota 
8.28 	County State-Aid Highway 63, known as 
8.29 	Argenta Trail, in Inver Grove Heights, from 
8.30 	northerly of its intersection with Amana Trail 
8.31 	to the anticipated future alignment of 65th 
8.32 	Street, then west to the existing Argenta Trail 
8.33 	alignment, and in anticipation of the 
8.34 	development of an interchange of Argenta 
8.35 	Trail and marked Interstate Highway 494; and 
9.1 	(2) expansion from two lanes to four lanes of 
9.2 	Dakota County State-Aid Highway 26, known 
9.3 	as 70th Street West, in Inver Grove Heights, 
9.4 	from the border with Eagan to through the 
9.5 	intersection with Argenta Trail as realigned, 
9.6 	to the intersection of Highway 26 with Trunk 
9.7 	Highway 3, known as Robert Street.
9.8 	(d) Of this amount, $9,000,000 is for a grant 
9.9 	to Carver County following a jurisdictional 
9.10 	transfer to Carver County of the affected 
9.11 	segment of marked Trunk Highway 101. The 
9.12 	appropriation may be used for design, 
9.13 	right-of-way acquisition, engineering, and 
9.14 	reconstruction of the segment transferred to 
9.15 	the county that is between Pioneer Trail and 
9.16 	Flying Cloud Drive, including grade 
9.17 	separation of a multipurpose pedestrian and 
9.18 	bicycle trail from the segment for the 
9.19 	Minnesota River Bluffs Regional Trail and a 
9.20 	regional trail along marked Trunk Highway 
9.21 	101.

9.22 	Sec. 3. Laws 2018, chapter 214, article 1, section 16, subdivision 7, is amended to read:

9.23
9.24	Subd. 7.Brooklyn Park - Trunk Highway 169 
and 101st Avenue Interchange Project
 				4,000,000
	
9.25 	$4,000,000 is from the bond proceeds account 
9.26 	in the state transportation fund for a grant to 
9.27 	the city of Brooklyn Park for preliminary and 
9.28 	final design, engineering, environmental 
9.29 	analysis, right-of-way acquisition, and 
9.30 	construction of an interchange located at 
9.31 	Trunk Highway 169 and 101st Avenue in the 
9.32 	city of Brooklyn Park.

9.33 	Sec. 4. Laws 2018, chapter 214, article 1, section 16, subdivision 11, is amended to read:

9.34	Subd. 11.Corridors of Commerce
 				400,000,000
	
10.1 	(a) From the bond proceeds account in the 
10.2 	trunk highway fund for the corridors of 
10.3 	commerce program under Minnesota Statutes, 
10.4 	section 161.088.
10.5 	(b) This appropriation is available in the 
10.6 	amounts of:
10.7 	(1) $150,000,000 in fiscal year 2022;
10.8 	(2) $150,000,000 in fiscal year 2023; and
10.9 	(3) $100,000,000 in fiscal year 2024.
10.10 	(c) From this appropriation, The commissioner 
10.11 	must select projects for the corridors of 
10.12 	commerce program solely using the results of 
10.13 	the spring 2018 evaluation for the corridors 
10.14 	of commerce program, in order based on total 
10.15 	score, and. In addition to the projects selected 
10.16 	for funding in the first round from the spring 
10.17 	2018 evaluation, the commissioner must select 
10.18 	at least two projects located outside the 
10.19 	Department of Transportation metropolitan 
10.20 	district. If funds are insufficient for an 
10.21 	identified project, the commissioner must 
10.22 	either select the identified project, or select 
10.23 	one or more alternative projects that are (1) 
10.24 	for a segment within the project limits of the 
10.25 	identified project; and (2) also identified and 
10.26 	scored in the spring 2018 evaluation process. 
10.27 	For projects located outside the Department 
10.28 	of Transportation metropolitan district, the 
10.29 	commissioner must not select a project located 
10.30 	in a county within which a project was 
10.31 	selected for funding in the first round in the 
10.32 	spring 2018 evaluation for the corridors of 
10.33 	commerce program.
11.1 	(d) The appropriation in Laws 2017, First 
11.2 	Special Session chapter 3, article 2, section 2, 
11.3 	subdivision 1, is available for the projects 
11.4 	selected under paragraph (c) that the 
11.5 	commissioner determines are ready to proceed.
11.6 	(e) The appropriation in this subdivision is 
11.7 	available for any projects selected by the 
11.8 	commissioner using the results of the 
11.9 	evaluation for the corridors of commerce 
11.10 	program conducted in spring 2018.
11.11 	(f) This appropriation cancels as specified 
11.12 	under Minnesota Statutes, section 16A.642, 
11.13 	except that the commissioner of management 
11.14 	and budget shall count the start of 
11.15 	authorization for issuance of state bonds as 
11.16 	the first day of the fiscal year during which 
11.17 	the bonds are available to be issued, and not 
11.18 	as the date of enactment of this section.

11.19 	Sec. 5. Laws 2018, chapter 214, article 1, section 17, subdivision 7, is amended to read:

11.20	Subd. 7.White Bear Lake Trail and Route
 				4,000,000
	
11.21 	(a) To the Metropolitan Council for grants to 
11.22 	complete design and construction of a multiuse 
11.23 	paved trail and route for pedestrians, bicycles, 
11.24 	and wheelchairs around White Bear Lake in 
11.25 	Ramsey and Washington Counties.
11.26 	(b) $2,600,000 of this appropriation is for a 
11.27 	grant to Ramsey County to design and 
11.28 	construct trail improvements, consistent with 
11.29 	the completed preliminary engineering, along 
11.30 	South Shore Boulevard between White Bear 
11.31 	Avenue and marked Trunk Highway 120 and 
11.32 	to pave an existing dirt path within the Ramsey 
11.33 	County Beach and Water Park from the 
12.1 	entrance to the park at Highway 96 to the 
12.2 	northeast edge of the park.
12.3 	(c) $1,400,000 of this appropriation is for a 
12.4 	grant to the city of Mahtomedi to design and 
12.5 	construct and design, construct, and equip 
12.6 	elements of the trail and route along or 
12.7 	proximate to Birchwood Road, Wildwood 
12.8 	Beach Road, and on or in the proximity of 
12.9 	Briarwood Road, consistent with the 
12.10 	completed preliminary engineering, and final 
12.11 	design and specification, subject to approval 
12.12 	of the commissioner of transportation with 
12.13 	regard to elements of the trail and route that 
12.14 	are within or adjacent to the right-of-way of 
12.15 	marked Trunk Highway 244.

12.16 	Sec. 6. Laws 2018, chapter 214, article 1, section 21, subdivision 28, is amended to read:

12.17
12.18	Subd. 28.St. Paul - Southeast Asian Language 
Job Training Facilities
 				5,500,000
	
12.19 	For a grant to the city of St. Paul to predesign, 
12.20 	design, renovate, construct, furnish, and equip 
12.21 	a bus driver and mechanics training facility 
12.22 	on Acker Sycamore Street in St. Paul for 
12.23 	training drivers and mechanics through 
12.24 	programming primarily in the Southeast Asian 
12.25 	languages, and to predesign, design, renovate, 
12.26 	construct, furnish, and equip a training facility 
12.27 	on Plato Avenue in St. Paul to be used during 
12.28 	renovation of the Acker Street facility and for 
12.29 	use as a training facility for health care, 
12.30 	manufacturing, and information technology 
12.31 	jobs through programming primarily in the 
12.32 	Southeast Asian languages. This appropriation 
12.33 	may be used to acquire property for these 
12.34 	purposes. The city of St. Paul may enter into 
12.35 	a lease or management agreement with a 
13.1 	nonprofit corporation for either or both of 
13.2 	these facilities under Minnesota Statutes, 
13.3 	section 16A.695.

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

13.5 	Sec. 7. Laws 2018, chapter 214, article 1, section 22, subdivision 4, is amended to read:

13.6	Subd. 4.Arden Hills - Water Main
 				500,000
	
13.7 	For a grant to the city of Arden Hills to install 
13.8 	a water main extending along Highway 96 10, 
13.9 	from Highway 10 96 to Interstate Highway 
13.10 	35W.

13.11 	Sec. 8. Laws 2018, chapter 214, article 1, section 25, subdivision 3, is amended to read:

13.12	Subd. 3.Trunk Highway Fund
 				418,000
	
13.13 	From the bond proceeds account in the trunk 
13.14 	highway fund for bond sale expenses under 
13.15 	Minnesota Statutes, sections 16A.641, 
13.16 	subdivision 8, and 167.50, subdivision 4.
13.17 	Notwithstanding Minnesota Statutes, section 
13.18 	16A.642, subdivision 1, $400,000 of this 
13.19 	amount does not cancel under the terms of that 
13.20 	subdivision, and is available until December 
13.21 	31, 2028.

13.22 	Sec. 9. Laws 2018, chapter 214, article 1, section 26, subdivision 1, is amended to read:
13.23 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act from 
13.24 	the bond proceeds fund, the commissioner of management and budget shall sell and issue 
13.25 	bonds of the state in an amount up to $776,699,000 $776,639,000 in the manner, upon the 
13.26 	terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, 
13.27 	and by the Minnesota Constitution, article XI, sections 4 to 7.

13.28 	Sec. 10. Laws 2018, chapter 214, article 3, section 7, subdivision 1, is amended to read:
13.29 		Subdivision 1.Appropriation. $2,000,000 is appropriated from the bond proceeds 
13.30 	account in the state transportation fund to the commissioner of transportation for a grant to 
14.1 	Anoka County for engineering, design, and right-of-way acquisition required for construction 
14.2 	of an underpassa railroad crossing grade separation on Anoka County State-Aid Highway 
14.3 	56, otherwise known as Ramsey Boulevard, under at the Burlington Northern Santa Fe 
14.4 	Railroad in the city of Ramsey and associated improvements on U.S. Trunk Highway 10/169 
14.5 	in the city of Ramsey.

14.6 	Sec. 11. Laws 2018, chapter 214, article 3, section 11, is amended to read:
14.7 	Sec. 11. ELY TRAILHEAD DEVELOPMENT; HOSPITAL ACCESS 
14.8 	IMPROVEMENTS.
 14.9 	(a) $1,300,000 is appropriated from the bond proceeds fund to the commissioner of 
14.10 	natural resources for a grant to the city of Ely to predesign, design, construct, furnish, and 
14.11 	equip a trailhead facility with parking, visitor information, and restrooms for trail users on 
14.12 	the west end of the city near marked Trunk Highway 169. This appropriation does not 
14.13 	require a nonstate contribution. Money from this appropriation not needed to complete the 
14.14 	trailhead project may be used to predesign an extension to Pattison Street to provide a direct 
14.15 	connection from marked Trunk Highway 169 to St. Louis County Highway 21 and improve 
14.16 	access to the Ely Bloomenson Community Hospital campus and emergency services building.
14.17 	(b) To provide the money appropriated in this section from the bond proceeds fund, the 
14.18 	commissioner of management and budget shall sell and issue bonds of the state in an amount 
14.19 	up to $1,300,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 
14.20 	Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, 
14.21 	sections 4 to 7.

14.22 	Sec. 12. Laws 2018, chapter 214, article 3, section 13, is amended to read:
14.23 	Sec. 13. REFORESTATION AND STAND IMPROVEMENT.
 14.24 	(a) $3,000,000 is appropriated from the bond proceeds fund to the commissioner of 
14.25 	natural resources to provide for reforestation and stand improvement on state forest lands 
14.26 	to meet the reforestation requirements of Minnesota Statutes, section 89.002, subdivision 
14.27 	2, including purchasing native seeds and native seedlings, planting, seeding, site preparation, 
14.28 	and protection on state lands administered by the commissioner.
14.29 	(b) To provide the money appropriated in this section from the bond proceeds fund, the 
14.30 	commissioner of management and budget shall sell and issue bonds of the state in an amount 
14.31 	up to $3,000,000 in the manner, upon the terms, and with the effect prescribed by Minnesota 
15.1 	Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, 
15.2 	sections 4 to 7.

15.3 	Sec. 13. Laws 2018, chapter 214, article 3, section 14, is amended to read:
15.4 	Sec. 14. APPLICATION.
 15.5 	Appropriations in this article are subject to article 1, section 1. The appropriation in 
15.6 	section 9 8 is from the local road improvement fund.

15.7 	Sec. 14. Laws 2018, chapter 214, article 3, section 15, is amended to read:
15.8 	Sec. 15. REDUCTIONS.
 15.9 	The following appropriations are reduced in article 1:
15.10 	(1) $2,900,000 from the Merit Center;
15.11 	(2) $2,000,000 from TED;
15.12 	(3) $2,000,000 from Corrections Asset Prevention; and
15.13 	(4) $15,000,000 from Local Road and Bridge the appropriation in article 1, section 16, 
15.14 	subdivision 2.

15.15 	Sec. 15. REPEALER.
 15.16 	Laws 2018, chapter 214, article 3, sections 7, subdivision 2; 8, subdivision 2; 9, 
15.17 	subdivision 2; and 10, subdivision 2, are repealed.

15.18 	Sec. 16. EFFECTIVE DATE.
 15.19 	This article is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: H0080-1 

16A.969 ENVIRONMENT AND NATURAL RESOURCES TRUST FUND APPROPRIATION BONDS.Subdivision 1.Definitions. 
(a) The definitions in this subdivision apply to this section. 

(b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of the state payable during a biennium from one or more of the following sources: 

(1) money appropriated by law from the environment and natural resources trust fund in any biennium for debt service due with respect to obligations described in subdivision 2; 

(2) proceeds of the sale of obligations described in subdivision 2; 

(3) payments received for that purpose under agreements and ancillary arrangements described in subdivision 2, paragraph (d); and 

(4) investment earnings on amounts in clauses (1) to (3). 

(c) "Debt service" means the amount payable in any biennium of principal, premium, if any, and interest on appropriation bonds. 

(d) "Environment and natural resources trust fund" or "trust fund" means the fund established under the Minnesota Constitution, article XI, section 14, and governed by that section and chapter 116P. 

Subd. 2.Authorization to issue appropriation bonds; accounts. 
(a) Subject to the limitations of this subdivision, the commissioner may sell and issue appropriation bonds of the state under this section for public purposes and in amounts as provided by law. This authorization meets the public purposes established by the Minnesota Constitution, article XI, section 14, and chapter 116P and shall be a supplement to the traditional sources of funding for environment and natural resources activities. 

(b) The special appropriation trust fund bond proceeds fund is established in the state treasury. Proceeds of the appropriation bonds issued and sold must be credited to the special appropriation trust fund bond proceeds fund. A bond payments account is established in the special appropriation trust fund bond proceeds fund. All income from investment of the bond proceeds, as estimated by the commissioner, must be deposited into the account and is appropriated to the commissioner for the payment of principal and interest on the appropriation bonds. 

(c) Appropriation bonds may be issued in one or more issues or series on the terms and conditions the commissioner determines to be in the best interests of the state, but the term on any series of appropriation bonds may not exceed 20 years. The appropriation bonds of each issue and series thereof shall be dated and bear interest, and may be includable in or excludable from the gross income of the owners for federal income tax purposes. 

(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter into agreements and ancillary arrangements relating to the appropriation bonds, including but not limited to trust indentures, grant agreements, lease or use agreements, operating agreements, management agreements, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payments made or received according to the agreement or ancillary arrangement shall be made from or deposited as provided in the agreement or ancillary arrangement. The determination of the commissioner included in an interest exchange agreement that the agreement relates to an appropriation bond shall be conclusive. 

(e) The commissioner may enter into written agreements or contracts relating to the continuing disclosure of information necessary to comply with or facilitate the issuance of appropriation bonds in accordance with federal securities laws, rules, and regulations, including Securities and Exchange Commission rules and regulations in Code of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants with purchasers and holders of appropriation bonds set forth in the order or resolution authorizing the issuance of the appropriation bonds, or a separate document authorized by the order or resolution. 

(f) The appropriation bonds are not subject to chapter 16C. 

Subd. 3.Form; procedure. 
(a) Appropriation bonds may be issued in the form of bonds, notes, or other similar instruments, and in the manner provided in section 16A.672. In the event that any provision of section 16A.672 conflicts with this section, this section shall control. 

(b) Every appropriation bond shall include a conspicuous statement of the limitation established in subdivision 6. 

(c) Appropriation bonds may be sold at either public or private sale upon such terms as the commissioner shall determine are not inconsistent with this section and may be sold at any price or percentage of par value. Any bid received may be rejected. 

(d) Appropriation bonds must bear interest at a fixed or variable rate. 

(e) Notwithstanding any other law, appropriation bonds issued under this section shall be fully negotiable. 

Subd. 4.Refunding bonds. 
The commissioner may issue appropriation bonds for the purpose of refunding any appropriation bonds then outstanding, including the payment of any redemption premiums on the bonds, any interest accrued or to accrue to the redemption date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of the commissioner, be applied to the purchase or payment at maturity of the appropriation bonds to be refunded, to the redemption of the outstanding appropriation bonds on any redemption date, or to pay interest on the refunding bonds and may, pending application, be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be invested and reinvested in obligations that are authorized investments under section 11A.24. The income earned or realized on the investment may also be applied to the payment of the appropriation bonds to be refunded or interest or premiums on the refunded appropriation bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the proceeds and any investment income may be returned to the trust fund or, if applicable, the special appropriation trust fund bond proceeds fund for use in any lawful manner. All refunding bonds issued under this subdivision must be prepared, executed, delivered, and secured by appropriations in the same manner as the appropriation bonds to be refunded. 

Subd. 5.Appropriation bonds as legal investments. 
Any of the following entities may legally invest any sinking funds, money, or other funds belonging to them or under their control in any appropriation bonds issued under this section: 

(1) the state, the investment board, public officers, municipal corporations, political subdivisions, and public bodies; 

(2) banks and bankers, savings and loan associations, credit unions, trust companies, savings banks and institutions, investment companies, insurance companies, insurance associations, and other persons carrying on a banking or insurance business; and 

(3) personal representatives, guardians, trustees, and other fiduciaries. 

Subd. 6.No full faith and credit; state not required to make appropriations. 
The appropriation bonds are not public debt of the state, and the full faith, credit, and taxing powers of the state are not pledged to the payment of the appropriation bonds or to any payment that the state agrees to make under this section. Appropriation bonds shall not be obligations paid directly, in whole or in part, from a tax of statewide application on any class of property, income, transaction, or privilege. Appropriation bonds shall be payable in each fiscal year only from amounts that the legislature may appropriate for debt service for any fiscal year, provided that nothing in this section shall be construed to require the state to appropriate money sufficient to make debt service payments with respect to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which the legislature shall not have appropriated amounts sufficient for debt service, or (2) the date of final payment of the principal of and interest on the appropriation bonds. 

Subd. 7.Appropriation for debt service and other purposes. 
Notwithstanding section 116P.05, subdivision 2, paragraph (b), the amount needed to pay principal and interest on appropriation bonds issued under this section and as authorized by other law is appropriated each fiscal year from legally available amounts in the environment and natural resources trust fund to the commissioner, subject to repeal, unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6, for deposit into the bond payments account established for such purpose in the special appropriation trust fund bond proceeds fund. Investment income earned on proceeds of the appropriation bonds issued under this section shall be deposited in the bond payments account and is appropriated to the commissioner. 

Subd. 8.Waiver of immunity. 
The waiver of immunity by the state provided for by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary contracts to which the commissioner is a party.