Capital improvement appropriations provisions, new programs establishment and existing programs modifications, prior appropriations modifications, and bond issuance authorization

A bill for an act

relating to capital investment; authorizing spending to acquire and better public

land and buildings and for other improvements of a capital nature with certain

conditions; establishing new programs and modifying existing programs; modifying

prior appropriations; authorizing the sale and issuance of state bonds; appropriating

money; amending Minnesota Statutes 2024, sections 16A.966, subdivision 7;

446A.086, subdivision 11; 462A.37, by adding a subdivision; 474A.02, subdivision

1a; Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5; proposing

coding for new law in Minnesota Statutes, chapter 115A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1.
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CAPITAL IMPROVEMENT APPROPRIATIONS.
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(a) The sums shown in the column under "Appropriations" are appropriated from the

bond proceeds fund, or another named fund, to the state agencies or officials indicated, to

be spent for public purposes. Appropriations of bond proceeds must be spent as authorized

by the Minnesota Constitution, article XI, section 5, clause (a), to acquire and better public

land and buildings and other public improvements of a capital nature, or as authorized by

the Minnesota Constitution, article XI, section 5, clauses (b) to (j), or article XIV. Unless

otherwise specified, money appropriated in this act:

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(1) may be used to pay state agency staff costs that are attributed directly to the capital

program or project in accordance with accounting policies adopted by the commissioner of

management and budget;

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(2) is available until the project is completed or abandoned subject to Minnesota Statutes,

section 16A.642;

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(3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,

should not be used for projects that can be financed within a reasonable time frame under

Minnesota Statutes, section 16B.322 or 16C.144; and

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(4) is available for a grant to a political subdivision after the commissioner of management

and budget determines that an amount sufficient to complete the project as described in this

act has been committed to the project, as required by Minnesota Statutes, section 16A.502.

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(b) Unless otherwise specified, appropriations in this article from the general fund or

from the trunk highway fund are made in fiscal year 2027 and are onetime appropriations.

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APPROPRIATIONS

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Sec. 2.
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UNIVERSITY OF MINNESOTA
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$

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74,800,000

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To the Board of Regents of the University of

Minnesota to be spent in accordance with

Minnesota Statutes, section 135A.046.

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Sec. 3.
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MINNESOTA STATE COLLEGES AND

UNIVERSITIES
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$

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74,800,000

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To the Board of Trustees of the Minnesota

State Colleges and Universities to be spent in

accordance with Minnesota Statutes, section

135A.046.

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Sec. 4.
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EDUCATION
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$

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2,000,000

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To the commissioner of education for Mary

C. Murphy library construction grants under

Minnesota Statutes, section 134.45.

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Sec. 5.
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MINNESOTA STATE ACADEMIES
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Subdivision 1.

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Total Appropriation

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$

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3,450,000

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To the commissioner of administration for the

purposes specified in this section.

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Subd. 2.

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Asset Preservation

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2,500,000

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For capital asset preservation improvements

and betterments on both campuses of the

Minnesota State Academies, to be spent in

accordance with Minnesota Statutes, section

16B.307.

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Subd. 3.

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Student Center Predesign

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500,000

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To predesign the renovation or replacement

of existing spaces for a new student center on

the Deaf School Campus.

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Subd. 4.

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Therapy Pool Improvements Predesign

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450,000

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To predesign the construction of the

replacement and relocation of the therapy pool

and therapeutic hot tub and renovations to the

existing pool area, including related building

and site improvements.

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Sec. 6.
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PERPICH CENTER FOR ARTS

EDUCATION
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$

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1,300,000

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To the commissioner of administration for

capital asset preservation improvements and

betterments at the Perpich Center for Arts

Education, to be spent in accordance with

Minnesota Statutes, section 16B.307.

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Sec. 7.
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NATURAL RESOURCES
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Subdivision 1.

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Total Appropriation

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$

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62,000,000

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(a) To the commissioner of natural resources

for the purposes specified in this section.

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(b) The appropriations in this section are

subject to the requirements of the natural

resources capital improvement program under

Minnesota Statutes, section 86A.12, unless

this section or the statutes referred to in this

section provide more specific standards,

criteria, or priorities for projects than

Minnesota Statutes, section 86A.12.

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Subd. 2.

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Natural Resources Asset Preservation

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30,000,000

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For the preservation and replacement of

state-owned facilities and recreational assets

operated by the commissioner of natural

resources to be spent in accordance with

Minnesota Statutes, section 84.946.

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Subd. 3.

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Betterment of Buildings

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3,000,000

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For acquisition, predesign, design, and

construction to replace existing facilities that

no longer meet the business needs of the

department or to acquire or construct new

facilities.

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Subd. 4.

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Acquisition and Betterment of Public

Lands

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2,000,000

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(a) For the betterment of public lands and

other improvements of a capital nature. The

commissioner shall determine project priorities

as appropriate under Minnesota Statutes,

section 86A.12. Any reforestation shall be

conducted in accordance with Minnesota

Statutes, section 89.002, subdivision 2.

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(b) For acquisition of public lands for the

purposes described in Minnesota Statutes,

section 86A.12, subdivision 2. The

commissioner shall determine project priorities

as appropriate under Minnesota Statutes,

section 86A.12.

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Subd. 5.

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Wildfire Aviation Infrastructure

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5,000,000

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For predesign, design, construction, and

equipping new public safety infrastructure

upgrades at the Brainerd Regional Airport to

support the agency's emergency response for

wildfires, search and rescue operations, and

other agency needs.

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Subd. 6.

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Accessibility

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2,000,000

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For the design and construction of accessibility

improvements at state parks, recreation areas,

and wildlife management areas.

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Subd. 7.

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Dam Renovation, Repair, Removal

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10,000,000

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(a) For design, engineering, and construction

to repair, reconstruct, or remove publicly

owned dams and respond to dam safety

emergencies on publicly owned dams. The

commissioner shall determine project priorities

as appropriate under Minnesota Statutes,

sections 103G.511 and 103G.515.

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(b) If the commissioner determines that a

project is not ready to proceed, this

appropriation may be used for other projects

on the commissioner's priority list.

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Subd. 8.

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Flood Hazard Mitigation

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9,000,000

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(a) For the state share of flood hazard

mitigation grants for publicly owned capital

improvements to prevent or alleviate flood

damage under Minnesota Statutes, section

103F.161.

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(b) Project priorities shall be determined by

the commissioner as appropriate, based on

need and consideration of available leveraging

of federal, state, and local funds.

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(c) To the extent practicable and consistent

with the project, recipients of appropriations

for flood control projects in this subdivision

shall create wetlands that are eligible for

wetland replacement credit to replace wetlands

drained or filled as the result of repair,

reconstruction, replacement, or rehabilitation

of an existing public road under Minnesota

Statutes, section 103G.222, subdivision 1,

paragraphs (l) and (m).

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(d) To the extent that a municipality has

provided nonstate, nonfederal funds toward

the cost of a project that exceeds two percent

of the median household income in the

municipality multiplied by the number of

households in the municipality, this

appropriation is also for the local share of the

project.

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Subd. 9.

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Parks and Trails Local and Regional

Recreation Grants

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1,000,000

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For matching grants under Minnesota Statutes,

section 85.019.

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Subd. 10.

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Unspent Appropriations

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The unspent portion of an appropriation for a

project in this section that is complete, upon

written notice to the commissioner of

management and budget, is available for asset

preservation under Minnesota Statutes, section

84.946. Minnesota Statutes, section 16A.642,

applies from the date of the original

appropriation to the unspent amount

transferred.

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Sec. 8.
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POLLUTION CONTROL AGENCY
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Subdivision 1.

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Total Appropriation

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$

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7,150,000

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To the Pollution Control Agency for the

purposes specified in this section.

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Subd. 2.

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Statewide Drinking Water

Contamination Mitigation Program

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2,150,000

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For projects or grants under Minnesota

Statutes, section 115B.245. Of this

appropriation, $650,000 is from the general

fund.

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Subd. 3.

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Sustainable Construction and

Demolition Waste

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5,000,000

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For grants under Minnesota Statutes, section

115A.535.

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Sec. 9.
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BOARD OF WATER AND SOIL

RESOURCES
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Subdivision 1.

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Total Appropriation

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$

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14,000,000

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To the Board of Water and Soil Resources for

the purposes specified in this section.

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Subd. 2.

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Local Government Roads Wetland

Replacement Program

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5,000,000

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To acquire land or permanent easements and

to restore, create, enhance, and preserve

wetlands to replace those wetlands drained or

filled as a result of the repair, reconstruction,

replacement, or rehabilitation of existing

public roads as required by Minnesota

Statutes, section 103G.222, subdivision 1,

paragraphs (l) and (m). Notwithstanding

Minnesota Statutes, section 103G.222,

subdivision 3, the board may implement the

wetland replacement program statewide. The

purchase price paid for acquisition of land or

perpetual easement must be a fair market value

as determined by the board. The board may

enter into agreements with the federal

government, other state agencies, political

subdivisions, nonprofit organizations, fee title

owners, or other qualified private entities to

acquire wetland replacement credits in

accordance with Minnesota Rules, chapter

8420. Up to five percent of this appropriation

may be used for restoration and enhancement.

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Subd. 3.

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Reinvest in Minnesota (RIM) Reserve

Program

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9,000,000

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To acquire conservation easements from

landowners to preserve, restore, create, and

enhance wetlands and associated uplands of

prairie and grasslands, and to restore and

enhance rivers and streams, riparian lands, and

uplands of prairie and grasslands, in order to

protect soil and water quality, support fish and

wildlife habitat, reduce flood damage, and

provide other public benefits. The provisions

of Minnesota Statutes, section 103F.515, apply

to this program. The board shall give priority

to leveraging federal money by enrolling

targeted new lands or enrolling

environmentally sensitive lands that have

expiring federal conservation agreements. The

board is authorized to enter into new

agreements and amend past agreements with

landowners as required by Minnesota Statutes,

section 103F.515, subdivision 5, to allow for

restoration. Up to five percent of this

appropriation may be used for restoration and

enhancement.

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Sec. 10.
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AGRICULTURE
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$

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1,380,000

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To the commissioner of administration for

capital asset preservation improvements and

betterments at the potato inspection facility

located in East Grand Forks, to be spent in

accordance with Minnesota Statutes, section

16B.307.

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Sec. 11.
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RURAL FINANCE AUTHORITY
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$

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50,000,000

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From the bond proceeds account in the rural

finance administration fund to the Rural

Finance Authority for the purposes set forth

in the Minnesota Constitution, article XI,

section 5, paragraph (h), to purchase

participation interests in or to make direct

agricultural loans to farmers under Minnesota

Statutes, chapter 41B. This appropriation is

for the beginning farmer program under

Minnesota Statutes, section 41B.039; the loan

restructuring program under Minnesota

Statutes, section 41B.04; the seller-sponsored

program under Minnesota Statutes, section

41B.042; the agricultural improvement loan

program under Minnesota Statutes, section

41B.043; and the livestock expansion loan

program under Minnesota Statutes, section

41B.045. All debt service on bond proceeds

used to finance this appropriation must be

repaid by the Rural Finance Authority under

Minnesota Statutes, section 16A.643. Loan

participations must be priced to provide full

interest and principal coverage and a reserve

for potential losses. Priority for loans must be

given first to basic beginning farmer loans,

second to seller-sponsored loans, and third to

agricultural improvement loans.

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Sec. 12.
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MINNESOTA ZOOLOGICAL

GARDEN
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$

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4,000,000

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To the Minnesota Zoological Board for capital

asset preservation improvements and

betterments to infrastructure and exhibits at

the Minnesota Zoo, to be spent in accordance

with Minnesota Statutes, section 16B.307.

Notwithstanding the specified uses of money

under Minnesota Statutes, section 16B.307,

this appropriation may be used to replace

buildings that are in poor condition, outdated,

and no longer support the work of the

Minnesota Zoological Garden; to construct

and renovate trails and roads on the Minnesota

Zoological Garden site; and to renovate animal

exhibits to meet modern animal welfare

standards, address animal and staff safety

issues, and improve the viewing experience

for guests.

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Sec. 13.
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ADMINISTRATION
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Subdivision 1.

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Total Appropriation

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$

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88,448,000

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To the commissioner of administration for the

purposes specified in this section.

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Subd. 2.

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Capital Asset Preservation and

Replacement Account

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10,000,000

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To be spent in accordance with Minnesota

Statutes, section 16A.632.

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Subd. 3.

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Capitol Complex - Physical Security

Upgrades Phase III

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41,008,000

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For the continuation of the design,

construction, and equipping required to

upgrade the physical security elements and

systems for the Capitol Mall and the buildings

listed in this subdivision, their attached tunnel

systems, their surrounding grounds, and

parking facilities as identified in physical

security studies conducted in 2017, 2022, and

2025. Upgrades include but are not limited to

the installation of bollards, blast protection,

infrastructure security screen walls, door

access controls, emergency call stations,

surveillance systems, security kiosks, lighting

system upgrades, locking devices, and traffic

and crowd control devices. This appropriation

includes money for work associated with the

following buildings: Administration,

Ag/Health Lab, Andersen, BCA Maryland,

State Capitol, Capitol Complex Power Plant

and Shops, and Parking Facilities, Centennial,

Freeman, Governor's Residence, Judicial

Center, Minnesota History Center, Stassen,

Senate, and Veterans Service. Of this amount,

$13,804,000 is from the general fund to be

used at the Retirement Systems building and

for nonbondable security improvements in the

buildings, facilities, and surrounding grounds

as provided in this subdivision. Additionally,

general fund money shall be used on the

Capitol Complex to update the emergency

distributed antenna system utilized by first

responders.

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Subd. 4.

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Capitol Building Asset Preservation

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5,546,000

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From the general fund for capital asset

preservation improvements, betterments, and

preventative maintenance to the State Capitol

building. Notwithstanding Minnesota Statutes,

section 16B.24, subdivision 5, paragraph (d),

the commissioner of administration shall not

collect rent to recover building depreciation

costs for any included asset preservation

appropriations utilized for the repairs and

maintenance of the State Capitol building paid

for from this appropriation.

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Subd. 5.

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Centennial Office Building Demolition

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19,494,000

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To complete design and demolition of the

Centennial Office Building and associated

infrastructure as the first phase of overall site

redevelopment. This appropriation may also

be used to design and complete hazardous

materials abatement and to design, construct,

and equip stormwater management, fiber

cabling, security, landscaping, pedestrian

tunnel modifications, Centennial parking ramp

modifications, and related infrastructure. Of

this amount, $1,600,000 is from the general

fund to relocate the cellular distributed antenna

head-end system from the Centennial Office

Building to the Freeman Building.

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Subd. 6.

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Space Efficiency and Modernization

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12,400,000

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From the general fund to design, construct,

renovate, furnish, and equip space to meet

tenant space needs in the Transportation

Building. Of this amount, $400,000 is for

tenant relocation and other nonbondable costs.

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Sec. 14.
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AMATEUR SPORTS COMMISSION
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Subdivision 1.

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Total Appropriation

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$

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5,500,000

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To the Minnesota Amateur Sports

Commission for the purposes specified in this

section.

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Subd. 2.

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Asset Preservation

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4,500,000

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For asset preservation improvements and

betterments of a capital nature at the National

Sports Center in Blaine, to be spent in

accordance with Minnesota Statutes, section

16B.307.

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Subd. 3.

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Mighty Ducks

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1,000,000

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For grants to local units of government under

Minnesota Statutes, section 240A.09. This

appropriation must not be used to acquire ice

resurfacing or edging equipment.

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Sec. 15.
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MILITARY AFFAIRS

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Subdivision 1.

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Total Appropriation

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$

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6,000,000

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To the adjutant general for the purposes

specified in this section.

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Subd. 2.

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Duluth Hangar Design

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3,500,000

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To predesign and design the construction of

a new hangar to hold aircraft at the Duluth

International Airport in support of the 148th

Fighter Wing of the Minnesota Air National

Guard to replace existing hangars.

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Subd. 3.

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Asset Preservation

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2,500,000

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For asset preservation improvements and

betterments at readiness centers statewide, to

be spent in accordance with Minnesota

Statutes, section 16B.307.

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Sec. 16.
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PUBLIC SAFETY
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$

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46,833,000

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To the commissioner of administration to

acquire land, design, construct, furnish, and

equip the expansion and renovation of the

Bureau of Criminal Apprehension Bemidji

Regional Facility. This appropriation may also

be used to design and complete hazardous

materials abatement.

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Sec. 17.
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TRANSPORTATION
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Subdivision 1.

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Total Appropriation

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$

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68,000,000

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To the commissioner of transportation for the

purposes specified in this section.

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Subd. 2.

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High-Priority Pavement Projects

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50,000,000

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From the bond proceeds account in the trunk

highway fund for construction, reconstruction,

and improvement of trunk highways, including

design-build contracts. Projects to construct,

reconstruct, or improve trunk highways from

this appropriation must follow eligible

investment priorities identified in the

Minnesota State Highway Investment Plan.

The commissioner may use up to 17 percent

of the amount for program delivery.

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Subd. 3.

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Port Development Assistance

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4,000,000

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For grants under Minnesota Statutes, chapter

457A. Any improvements made with the

proceeds of these grants must be publicly

owned.

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Subd. 4.

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Drainage Asset Management

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4,000,000

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From the trunk highway fund to inventory,

assess, and repair hydraulic assets with

prioritization of highway culvert and storm

sewer rehabilitation, flood resiliency

improvement projects, and long-term

monitoring of hydraulic infrastructure,

including costs attributable to related training,

inspection, and monitoring. This appropriation

is not an appropriation for a capital

improvement project within the meaning of

Minnesota Statutes, section 16A.642,

notwithstanding the requirements in section

1, paragraph (a).

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Subd. 5.

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Transportation Building Consolidation

and Remodel

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10,000,000

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To the commissioner of administration to

design, construct, remodel and equip space in

the Transportation Building. Of this

appropriation, $8,000,000 is from the trunk

highway fund, and $2,000,000 is from the

general fund.

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Sec. 18.
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METROPOLITAN COUNCIL
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Subdivision 1.

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Total Appropriation

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$

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6,000,000

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To the Metropolitan Council for the purposes

specified in this section.

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Subd. 2.

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Metropolitan Cities Inflow and

Infiltration Grants

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5,000,000

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For inflow and infiltration grants under

Minnesota Statutes, section 473.5491.

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Subd. 3.

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Metropolitan Regional Parks and Trails

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1,000,000

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For the cost of improvements and betterments

of a capital nature and acquisition by the

council and metropolitan parks implementing

agencies as defined in Minnesota Statutes,

section 473.351, of regional recreational

open-space lands in accordance with the

council's policy plan as provided in Minnesota

Statutes, section 473.147. This appropriation

must not be used to purchase easements.

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Sec. 19.
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DIRECT CARE AND TREATMENT
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Subdivision 1.

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Total Appropriation

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$

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42,500,000

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To the commissioner of administration for the

purposes specified in this section.

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Subd. 2.

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Asset Preservation

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23,700,000

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For asset preservation improvements and

betterments of a capital nature, to be spent in

accordance with Minnesota Statutes, section

16B.307, at facilities operated by Direct Care

and Treatment.

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Subd. 3.

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St. Peter Water and Sewer

Construction

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18,800,000

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To design, construct, and equip upgrades and

the replacement of water, sanitary, and storm

sewer infrastructure at the St. Peter Campus.

This appropriation may also be used to design

and complete hazardous materials abatement.

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Sec. 20.
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VETERANS AFFAIRS
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Subdivision 1.

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Total Appropriation

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$

new text end

new text begin

86,072,000

new text end

new text begin

To the commissioner of administration for the

purposes specified in this section.

new text end

new text begin

Subd. 2.

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new text begin

Asset Preservation

new text end

new text begin

23,700,000

new text end

new text begin

For asset preservation improvements and

betterments of a capital nature at the veterans

homes in Minneapolis, Hastings, Fergus Falls,

Montevideo, Bemidji, Preston, Silver Bay,

and Luverne, and the state veterans cemeteries

at Little Falls, Preston, and Duluth, to be spent

in accordance with Minnesota Statutes, section

16B.307.

new text end

new text begin

Subd. 3.

new text end

new text begin

Minneapolis Veterans Home

new text end

new text begin

17,200,000

new text end

new text begin

To design, construct, furnish, and equip the

renovation of the Minneapolis Veterans home

Building 16. This appropriation may also be

used to design and complete hazardous

materials abatement.

new text end

new text begin

Subd. 4.

new text end

new text begin

Hastings Veterans Home

new text end

new text begin

45,172,000

new text end

new text begin

To design, construct, furnish, and equip the

renovation of administrative and residential

buildings and infrastructure at the Minnesota

Veterans Home, Hastings campus. This

appropriation includes money to design and

complete demolition of all or portions of

buildings and other structures deemed

unnecessary or undesirable for the

development of the project, site preparation,

and asbestos removal and hazardous materials

abatement.

new text end

Sec. 21.
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CORRECTIONS
new text end

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Subdivision 1.

new text end

new text begin

Total Appropriation

new text end

new text begin

$

new text end

new text begin

114,939,000

new text end

new text begin

To the commissioner of administration for the

purposes specified in this section.

new text end

new text begin

Subd. 2.

new text end

new text begin

Asset Preservation

new text end

new text begin

52,921,000

new text end

new text begin

For asset preservation improvement and

betterments of a capital nature at the

Minnesota correctional facilities statewide to

be spent in accordance with Minnesota

Statutes, section 16B.307. Of this amount,

$1,000,000 is from the general fund.

Notwithstanding the specified uses of money

under Minnesota Statutes, section 16B.307,

the commissioner may use the general fund

appropriation for capital expenditures allowed

under Minnesota Statutes, section 16B.307,

that do not constitute betterments and capital

improvements within the meaning of the

Minnesota Constitution, article XI, section 5,

clause (a). The report required under

Minnesota Statutes, section 16B.307,

subdivision 2, shall include a list of all projects

that have been paid for with this appropriation.

new text end

new text begin

Subd. 3.

new text end

new text begin

Minnesota Correctional Facility - Rush

City

new text end

new text begin

60,668,000

new text end

new text begin

To predesign, design, construct, furnish, and

equip a new building addition and to design,

renovate, and equip existing space to provide

incarcerated persons services at the Rush City

Correctional Facility. This appropriation may

also be used to design and complete hazardous

materials abatement.

new text end

new text begin

Subd. 4.

new text end

new text begin

Facility Consolidation

new text end

new text begin

350,000

new text end

new text begin

For predesign of consolidation and expansion

of correctional facilities statewide.

new text end

new text begin

Subd. 5.

new text end

new text begin

Minnesota Correctional Facility -

Faribault

new text end

new text begin

1,000,000

new text end

new text begin

From the general fund for demolition of four

buildings at the Faribault Correctional Facility

campus.

new text end

new text begin

Subd. 6.

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Unspent Appropriations

new text end

new text begin

The unspent portion of an appropriation for a

Department of Corrections project in this

section that is complete, upon written notice

to the commissioner of management and

budget, is available for asset preservation

under Minnesota Statutes, section 16B.307.

Minnesota Statutes, section 16A.642, applies

from the date of the original appropriation to

the unspent amount transferred.

new text end

Sec. 22.
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EMPLOYMENT AND ECONOMIC

DEVELOPMENT
new text end

new text begin

Subdivision 1.

new text end

new text begin

Total Appropriation

new text end

new text begin

$

new text end

new text begin

5,000,000

new text end

new text begin

To the commissioner of employment and

economic development for the purposes

specified in this section.

new text end

new text begin

Subd. 2.

new text end

new text begin

Greater Minnesota Business

Development Public Infrastructure

new text end

new text begin

2,500,000

new text end

new text begin

For grants under Minnesota Statutes, section

116J.431.

new text end

new text begin

Subd. 3.

new text end

new text begin

Transportation Economic Development

Infrastructure

new text end

new text begin

2,500,000

new text end

new text begin

For grants under Minnesota Statutes, section

116J.436.

new text end

Sec. 23.
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PUBLIC FACILITIES AUTHORITY
new text end

new text begin

Subdivision 1.

new text end

new text begin

Total Appropriation

new text end

new text begin

$

new text end

new text begin

106,000,000

new text end

new text begin

To the Public Facilities Authority for the

purposes specified in this section.

new text end

new text begin

Subd. 2.

new text end

new text begin

State Match for Federal Grants to State

Revolving Loan Programs

new text end

new text begin

19,000,000

new text end

new text begin

To match federal capitalization grants for the

clean water revolving fund under Minnesota

Statutes, section 446A.07, and the drinking

water revolving fund under Minnesota

Statutes, section 446A.081. This appropriation

must be used for qualified capital projects.

new text end

new text begin

Subd. 3.

new text end

new text begin

Water Infrastructure Funding Program

new text end

new text begin

20,000,000

new text end

new text begin

(a) For grants to eligible municipalities under

the water infrastructure funding program under

Minnesota Statutes, section 446A.072.

new text end

new text begin

(b) $10,000,000 of this appropriation is for

wastewater projects listed on the Pollution

Control Agency's project priority list in the

fundable range under the clean water revolving

fund program.

new text end

new text begin

(c) $10,000,000 of this appropriation is for

drinking water projects listed on the

commissioner of health's project priority list

in the fundable range under the drinking water

revolving fund program.

new text end

new text begin

(d) After all eligible projects under paragraph

(b) or (c) have been funded in a fiscal year,

the Public Facilities Authority may transfer

any remaining, uncommitted money to eligible

projects under a program defined in paragraph

(b) or (c) based on that program's project

priority list.

new text end

new text begin

Subd. 4.

new text end

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Point Source Implementation Grants

Program

new text end

new text begin

45,000,000

new text end

new text begin

For grants to eligible municipalities under the

point source implementation grants program

under Minnesota Statutes, section 446A.073.

This appropriation must be used for qualified

capital projects.

new text end

new text begin

Subd. 5.

new text end

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Lead Service Line Replacement

new text end

new text begin

7,000,000

new text end

new text begin

From the general fund for grants to eligible

entities under the Lead Service Line

Replacement program under Minnesota

Statutes, section 446A.077.

new text end

new text begin

Subd. 6.

new text end

new text begin

Emerging Contaminants Grant

Program

new text end

new text begin

15,000,000

new text end

new text begin

For grants to eligible municipalities under the

Emerging Contaminants Grant Program under

Minnesota Statutes, section 446A.082.

new text end

Sec. 24.
new text begin
MINNESOTA HOUSING FINANCE

AGENCY
new text end

new text begin

$

new text end

new text begin

10,000,000

new text end

new text begin

To the Minnesota Housing Finance Agency

to finance the costs of rehabilitation to

preserve public housing under Minnesota

Statutes, section 462A.202, subdivision 3a.

For purposes of this section, "public housing"

means housing for low-income persons and

households financed by the federal

government and publicly owned. Priority may

be given to proposals that maximize nonstate

resources to finance the capital costs and

requests that prioritize health, safety, and

energy improvements. The priority in

Minnesota Statutes, section 462A.202,

subdivision 3a, for projects to increase the

supply of affordable housing and the

restrictions of Minnesota Statutes, section

462A.202, subdivision 7, do not apply to this

appropriation.

new text end

Sec. 25.
new text begin
MINNESOTA HISTORICAL

SOCIETY
new text end

new text begin

$

new text end

new text begin

3,500,000

new text end

new text begin

To the Minnesota Historical Society for capital

improvements and betterments at state historic

sites, buildings, landscaping at historic

buildings, exhibits, markers, and monuments,

to be spent in accordance with Minnesota

Statutes, section 16B.307. The society shall

determine project priorities as appropriate

based on need.

new text end

Sec. 26.
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BOND SALE AUTHORIZATION.
new text end

new text begin

(a) To provide the money appropriated in this act from the bond proceeds fund, and to

provide for expenses authorized in Minnesota Statutes, section 16A.641, subdivision 8,

paragraph (c), the commissioner of management and budget shall sell and issue bonds of

the state in an amount up to $812,372,000 in the manner, upon the terms, and with the effect

prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota

Constitution, article XI, sections 4 to 7.

new text end

new text begin

(b) To provide the money appropriated in this section from the bond proceeds account

in the trunk highway fund, the commissioner of management and budget shall sell and issue

bonds of the state in an amount up to $50,050,000 in the manner, upon the terms, and with

the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota

Constitution, article XIV, section 11, at the times and in the amounts requested by the

commissioner of transportation. The proceeds of the bonds, except accrued interest and any

premium received from the sale of the bonds, must be deposited in the bond proceeds account

in the trunk highway fund.

new text end

Sec. 27.
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CANCELLATION; BOND SALE AUTHORIZATION REDUCTIONS.
new text end

new text begin

$62,372,000 of the appropriation in Laws 2023, chapter 72, article 1, section 19,

subdivision 3, is canceled. The bond sale authorization in Laws 2023, chapter 72, article 1,

section 27, subdivision 1, is reduced by the same amount.

new text end

Sec. 28.
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BOND SALE SCHEDULE.
new text end

new text begin

The commissioner of management and budget shall schedule the sale of state general

obligation bonds so that, during the biennium ending June 30, 2027, no more than

$1,177,027,000 will need to be transferred from the general fund to the state bond fund to

pay principal and interest due and to become due on outstanding state general obligation

bonds. During the biennium, before each sale of state general obligation bonds, the

commissioner of management and budget shall calculate the amount of debt service payments

needed on bonds previously issued and shall estimate the amount of debt service payments

that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the

amount of bonds scheduled to be sold so as to remain within the limit set by this section.

The amount needed to make the debt service payments is appropriated from the general

fund as provided in Minnesota Statutes, section
16A.641
.

new text end

Sec. 29.
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EFFECTIVE DATE.
new text end

new text begin

This article is effective the day following final enactment.

new text end

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 16A.966, subdivision 7, is amended to read:

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds issued under

subdivision 2, paragraph (a), and interest credited to the special appropriation state response

to releases bond proceeds fund are appropriated as follows:

(1) to the commissioner of the Pollution Control Agency for removal and remedial

actions as specified in subdivision 2, paragraph (a), at the following sites: the Esko

Groundwater Contamination Superfund site; the city of Duluth Dump #1 Superfund site;

the Perham Arsenic site;
new text begin
the Hibbing Gas Manufacturing Plant Site;
new text end
and the Precision Plating

State Superfund site; and

(2) to the commissioner for debt service on the bonds including capitalized interest,

nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and

payments under any agreements entered into under subdivision 2, paragraph (d), as permitted

by state and federal law.

Sec. 2.

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[115A.535] SUSTAINABLE CONSTRUCTION AND DEMOLITION WASTE

TRANSITION GRANTS PROGRAM.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Grant program established.

new text end

new text begin

The commissioner may make grants to

assist with the capital costs of infrastructure projects necessary to assist eligible grantees

with the transition away from the use of unlined construction and demolition landfills.

new text end

new text begin

Subd. 2.

new text end

new text begin

Eligible grantees.

new text end

new text begin

For purposes of this section, "eligible grantee" means:

new text end

new text begin

(1) for projects funded from the sustainable construction and demolition waste transition

grant account in the bond proceeds fund, a city, county, solid waste management district

established pursuant to sections 115A.62 to 115A.72, sanitary district, or township; or

new text end

new text begin

(2) for projects funded from the sustainable construction demolition waste transition

grant account in the general fund, any person.

new text end

new text begin

Subd. 3.

new text end

new text begin

Accounts.

new text end

new text begin

(a) A sustainable construction and demolition waste transition grant

account is established in the bond proceeds fund. The account consists of state bond proceeds

appropriated to the commissioner for this purpose. Money in the account may only be

expended to acquire land or an interest in land, predesign, design, construct, and improve

public infrastructure projects that further the purposes of this section.

new text end

new text begin

(b) A sustainable construction and demolition waste transition grant account is established

in the general fund. The account consists of money as provided by law and any other money

donated, allotted, transferred, or otherwise provided to the account. Money in the account

may only be expended to acquire land or an interest in land, predesign, design, construct,

and improve public or private infrastructure projects that further the purposes of this section.

new text end

new text begin

Subd. 4.

new text end

new text begin

Sustainable construction and demolition waste infrastructure grants.

new text end

new text begin

(a)

The commissioner may make grants to eligible grantees for infrastructure to process and

manage construction and demolition waste, including projects related to collection,

processing, waste reduction, reuse, recycling, resource recovery and disposal, and projects

addressing hazardous substances, toxic pollutants, and problem materials in the construction

and demolition waste stream. Components may also process and manage nonconstruction

and demolition waste as an ancillary function. Projects must be consistent with the policies

established under section 115A.02.

new text end

new text begin

(b) Grants awarded under this subdivision may cover up to 75 percent of the eligible

expenses of a project.

new text end

new text begin

(c) In awarding a grant under this subdivision, preference shall be given to projects that:

new text end

new text begin

(1) assist with the creation of a regional system to transition away from unlined landfilling

of construction and demolition waste;

new text end

new text begin

(2) reduce the amount of construction and demolition waste that is disposed of through

the prioritization of waste reduction, reuse, recycling, resource recovery, and other means

to prevent disposal;

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new text begin

(3) serve environmental justice areas; and

new text end

new text begin

(4) maximize environmental, human health, and economic benefits.

new text end

new text begin

Subd. 5.

new text end

new text begin

Construction and demolition enhanced landfill cover grants.

new text end

new text begin

(a) The

commissioner may make grants to eligible grantees for final enhanced cover systems to

assist with the closure of unlined construction and demolition landfills.

new text end

new text begin

(b) Grants awarded under this subdivision may cover up to 50 percent of the eligible

expenses of a project.

new text end

new text begin

(c) In awarding a grant under this subdivision, preference shall be given to projects that:

new text end

new text begin

(1) assist with the creation of a system to transition away from unlined landfilling of

construction and demolition waste;

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new text begin

(2) serve environmental justice areas;

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new text begin

(3) demonstrate an effective cover design based on the Hydrologic Evaluation of Landfill

Performance (HELP) model that will protect groundwater by mitigating the release and

spread of contamination due to the landfill; and

new text end

new text begin

(4) provide a site-specific evaluation of risk to human health and the environment and

compliance status.

new text end

Sec. 3.

Minnesota Statutes 2024, section 446A.086, subdivision 11, is amended to read:

Subd. 11.

Amount of debt obligation authorized.

The amount of debt outstanding

under this section must not exceed
deleted text begin
$1,000,000,000
deleted text end
new text begin
1,500,000,000
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 4.

Minnesota Statutes 2024, section 462A.37, is amended by adding a subdivision to

read:

new text begin

Subd. 2l.

new text end

new text begin

Additional authorization.

new text end

new text begin

In addition to the amount authorized in subdivisions

2 to 2k and 3a, the agency may issue up to $50,000,000 in one or more series to which the

payments under this section may be pledged.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 462A.37, subdivision 5, is amended

to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the

commissioner of management and budget the actual amount of annual debt service on each

series of bonds issued under this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure

bonds issued under subdivision 2a, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a), not to exceed $6,400,000 annually. The amounts

necessary to make the transfers are appropriated from the general fund to the commissioner

of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure

bonds issued under subdivision 2b, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a), not to exceed $800,000 annually. The amounts

necessary to make the transfers are appropriated from the general fund to the commissioner

of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure

bonds issued under subdivision 2c, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a), not to exceed $2,800,000 annually. The amounts

necessary to make the transfers are appropriated from the general fund to the commissioner

of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure

bonds issued under subdivision 2d, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure

bonds issued under subdivision 2e, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure

bonds issued under subdivision 2f, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure

bonds issued under subdivision 2g, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure

bonds issued under subdivision 2h, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

(j) Each July 15, beginning in 2026 and through 2047, if any housing infrastructure

bonds issued under subdivision 2j, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

(k) Each July 15, beginning in 2027 and through 2048, if any housing infrastructure

bonds issued under subdivision 2k, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section
462A.21, subdivision 33
,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

new text begin

(l) Each July 15, beginning in 2028 and through 2049, if any housing infrastructure

bonds issued under subdivision 2l, or housing infrastructure bonds issued to refund those

bonds, remain outstanding, the commissioner of management and budget must transfer to

the housing infrastructure bond account established under section 462A.21, subdivision 33,

the amount certified under paragraph (a). The amounts necessary to make the transfers are

appropriated from the general fund to the commissioner of management and budget.

new text end

deleted text begin

(l)
deleted text end
new text begin
(m)
new text end
The agency may pledge to the payment of the housing infrastructure bonds the

payments to be made by the state under this section.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 6.

Minnesota Statutes 2024, section 474A.02, subdivision 1a, is amended to read:

Subd. 1a.

Aggregate bond limitation.

"Aggregate bond limitation" means
deleted text begin
up to 55

percent of the reasonably expected aggregate basis of a residential rental project and the

land on which the project is or will be located.
deleted text end
new text begin
the greater of:
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new text begin

(1) 30 percent of the reasonably expected aggregate basis of a residential rental project

and the land on which the project is or will be located; or

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new text begin

(2) the maximum supportable permanent amortizing debt, subject to a maximum of 40

percent of the reasonably expected aggregate basis of a residential rental project and the

land on which the project is or will be located.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027.

new text end

Sec. 7.
new text begin
BCA MARYLAND BUILDING.
new text end

new text begin

Notwithstanding any law, rule, or ordinance to the contrary, a building permit under the

State Building Code is not required to construct a new perimeter eight-foot security fence

and access controls at the BCA Maryland Building site, as enacted in Laws 2023, chapter

72, article 1, section 15, subdivision 3.

new text end