1.2relating to capital investment; appropriating money for capital improvement
1.3projects; modifying grant programs; authorizing the Housing Finance Agency
1.4to issue housing infrastructure bonds;amending Minnesota Statutes 2012,
1.5sections 12A.16, subdivision 5; 174.50, subdivisions 6b, 7; 174.52, subdivision
1.63; 462A.37, subdivision 2, by adding subdivisions.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.9    The sums shown in the column under "Appropriations" are appropriated from the
1.10general fund to the state agencies or officials indicated, to be spent for public purposes.
1.11Unless otherwise specified, the appropriations in this act are available until the project is
1.12completed or abandoned subject to Minnesota Statutes, section 16A.642.

1.13	SUMMARY
1.14	University of Minnesota		30,000,000
1.15	Minnesota State Colleges and Universities		30,650,000
1.16	Natural Resources		11,900,000
1.17	Agriculture		325,000
1.18	Public Safety		225,000
1.19	Transportation		74,250,000
1.20	Metropolitan Council		2,518,000
1.21	Human Services		46,512,000
1.22	Employment and Economic Development		500,000
1.23	Minnesota Historical Society		1,868,000
1.24	TOTAL	$	198,748,000

1.25

APPROPRIATIONS

1.26

Sec. 2. UNIVERSITY OF MINNESOTA

$

30,000,000

2.1To the Board of Regents of the University
2.2of Minnesota for Higher Education Asset
2.3Preservation and Replacement (HEAPR),
2.4to be spent in accordance with Minnesota
2.5Statutes, section 135A.046.

2.6 2.7

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

2.8

Subdivision 1.Total Appropriation

$

30,650,000

2.9To the Board of Trustees of the Minnesota
2.10State Colleges and Universities for the
2.11purposes specified in this section.

2.12 2.13

Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)

30,000,000

2.14To be spent in accordance with Minnesota
2.15Statutes, section 135A.046.

2.16 2.17

Subd. 3.Alexandria Technical and Community College

650,000

2.18For equipment maintenance and acquisition
2.19for manufacturing programs at Alexandria
2.20Technical and Community College, including
2.21the machine tool and welding programs,
2.22and any other appropriate programs as
2.23determined by the college.

2.24

Sec. 4. NATURAL RESOURCES

2.25

Subdivision 1.Total Appropriation

$

11,900,000

2.26To the commissioner of natural resources for
2.27the purposes specified in this section.

2.28

Subd. 2.Flood Hazard Mitigation

9,900,000

2.29(a) For the state share of flood hazard
2.30mitigation grants for publicly owned capital
2.31improvements to prevent or alleviate flood
2.32damage under Minnesota Statutes, section
2.33103F.161. Levee projects, to the extent
3.1practical, shall meet the state standard of
3.2three feet above the 100-year flood elevation.
3.3Project priorities shall be determined by the
3.4commissioner as appropriate and based on
3.5need.
3.6(b) This appropriation includes money for
3.7the projects in Montevideo and Moorhead.
3.8(c) For any project listed in this subdivision
3.9that the commissioner determines is not
3.10ready to proceed or does not expend all the
3.11money allocated to it, the commissioner may
3.12allocate that project's money to a project on
3.13the commissioner's priority list.
3.14(d) To the extent that the cost of a project
3.15exceeds two percent of the median household
3.16income in a municipality or township
3.17multiplied by the number of households in the
3.18municipality or township, this appropriation
3.19is also for the local share of the project.

3.20

Subd. 3.Forestry Seed Processing Facilities

2,000,000

3.21To construct, furnish, and equip an expansion
3.22to the cold storage and processing facilities
3.23at Badoura Nursery to support consolidated
3.24bareroot production; construct and equip
3.25improved seed development, processing,
3.26and storage facilities at Badoura Nursery;
3.27construct, furnish, and equip greenhouse
3.28and laboratory facilities at General Andrews
3.29Nursery site to support expanded tree
3.30improvement operations; and to upgrade
3.31irrigation and artificial propagation bed
3.32infrastructure at the General Andrews
3.33Nursery site.

3.34

Sec. 5. AGRICULTURE

$

325,000

4.1To the commissioner of agriculture for a grant
4.2to the Aitkin County Agricultural Society
4.3to predesign, design, construct, furnish, and
4.4equip a shared food service building that
4.5can be separated into three smaller food
4.6preparation areas. This appropriation does
4.7not require a nonstate contribution.

4.8

Sec. 6. PUBLIC SAFETY

$

225,000

4.9To the commissioner of public safety for a
4.10grant to the city of Cyrus to acquire land for
4.11and to predesign, design, construct, furnish,
4.12and equip a facility to accommodate the city
4.13hall with community meeting space and the
4.14fire department. This appropriation does not
4.15require a nonstate contribution.

4.16

Sec. 7. TRANSPORTATION

4.17

Subdivision 1.Total Appropriation

$

74,250,000

4.18To the commissioner of transportation for the
4.19purposes specified in this section.

4.20 4.21

Subd. 2.Local Bridge Replacement and Rehabilitation

21,750,000

4.22To match federal money and to replace
4.23or rehabilitate local deficient bridges as
4.24provided in Minnesota Statutes, section
4.25174.50. To the extent practicable, the
4.26commissioner shall expend the funds as
4.27provided under Minnesota Statutes, section
4.28174.50, subdivision 6a, 6b, or 6c.
4.29$11,750,000 of this appropriation is for a
4.30grant to Hennepin County to restore and
4.31recondition the Franklin Avenue Bridge.
4.32This appropriation is not available until the
4.33commissioner of management and budget
4.34determines that at least $16,500,000 is
5.1committed to the project from nonstate
5.2sources.

5.3 5.4

Subd. 3.Local Road Improvement Fund Grants

49,500,000

5.5(a) For construction and reconstruction
5.6of local roads with statewide or regional
5.7significance under Minnesota Statutes,
5.8section 174.52, subdivision 4, or for grants to
5.9counties to assist in paying the costs of rural
5.10road safety capital improvement projects on
5.11county state-aid highways under Minnesota
5.12Statutes, section 174.52, subdivision 4a.
5.13(b) This appropriation includes funding for
5.14the following projects:
5.15(1) a grant to the city of Richfield for the
5.1677th Street underpass project;
5.17(2) a grant to Anoka County for the U.S.
5.18Highway 10 and County State-Aid Highway
5.1983 (Armstrong Boulevard) project;
5.20(3) a grant to Ramsey County for the road
5.21improvements related to the Twin Cities
5.22Army Ammunition Plant redevelopment
5.23project; and
5.24(4) a grant for $250,000 to Pine Lake
5.25Township in Otter Tail County for
5.26improvements to Nitche Lake Road between
5.27County Road 8 and County Road 53 in Pine
5.28Lake Township.
5.29(c) Of this appropriation, $11,448,000
5.30is for materials and supplies related to
5.31road repair resulting from effects of the
5.322013-2014 winter season. By September
5.331, 2014, the commissioner shall apportion
5.34funds to counties in the same manner as
5.35county state-aid highway funds provided
6.1for calendar year 2014 under Minnesota
6.2Statutes, section 162.07; and $3,552,000 is
6.3for materials and supplies related to road
6.4repair resulting from effects of the 2013-2014
6.5winter season. By September 1, 2014, the
6.6commissioner shall apportion funds to cities
6.7in the same manner as municipal state-aid
6.8street funds provided for calendar year 2014
6.9under Minnesota Statutes, section 162.13.

6.10

Subd. 4.Safe Routes to School

1,000,000

6.11For grants under Minnesota Statutes, section
6.12174.40.

6.13

Subd. 5.Port Development Assistance

2,000,000

6.14For grants under Minnesota Statutes, chapter
6.15457A. Any improvements made with the
6.16proceeds of these grants must be publicly
6.17owned.

6.18

Sec. 8. METROPOLITAN COUNCIL

6.19

Subdivision 1.Total Appropriation

$

2,518,000

6.20To the Metropolitan Council for the purposes
6.21specified in this section.

6.22

Subd. 2.Maplewood - Fish Creek Trail

318,000

6.23For a grant to the city of Maplewood to
6.24acquire and develop approximately 70 acres
6.25of land along Fish Creek to be included
6.26within the Fish Creek Natural Greenway, a
6.27park of regional and historical significance
6.28located in Ramsey County within the
6.29Mississippi National River and Recreation
6.30Area. This appropriation is not available
6.31until the commissioner of management and
6.32budget determines that an amount sufficient
7.1to complete the acquisition is committed to
7.2the project from nonstate sources.

7.3

Subd. 3.I-35E Pedestrian Shared Use Walkway

200,000

7.4For a grant to the city of St. Paul to construct
7.5a pedestrian shared use walkway on the
7.6east side of I-35E from Arlington Avenue
7.7to Cuyuga Street. This appropriation is
7.8not available until the commissioner of
7.9management and budget determines that at
7.10least an equal amount has been committed to
7.11the project from nonstate sources.

7.12 7.13

Subd. 4.West St. Paul - North Urban Regional Trail Bridge

2,000,000

7.14For a grant to the city of West St. Paul to
7.15predesign, design, and construct a pedestrian
7.16bridge for the North Urban Regional Trail as
7.17an overpass of Robert Street in the area near
7.18Wentworth Avenue in West St. Paul. This
7.19appropriation may also be used to acquire
7.20property or purchase rights-of-way needed
7.21for bridge construction. This appropriation
7.22is not available until the commissioner of
7.23management and budget has determined that
7.24at least an equal amount has been committed
7.25to the project from nonstate sources.

7.26

Sec. 9. HUMAN SERVICES

7.27

Subdivision 1.Total Appropriation

$

46,512,000

7.28To the commissioner of administration, or
7.29another named agency, for the purposes
7.30specified in this section.

7.31 7.32

Subd. 2.Minnesota Security Hospital - St. Peter

41,317,000

7.33(a) To design and perform asbestos
7.34and hazardous materials abatement and
8.1demolition; to complete the design of, and to
8.2construct, furnish, and equip the first phase of
8.3a two-phase project to remodel existing, and
8.4to develop new residential, program, activity,
8.5and ancillary facilities for the Minnesota
8.6Security Hospital on the upper campus of the
8.7St. Peter Regional Treatment Center. This
8.8appropriation includes funding to design the
8.9second phase of the project. Upon substantial
8.10completion of the first phase of this project,
8.11any unspent portion of this appropriation is
8.12available to design, perform asbestos and
8.13hazardous materials abatement, perform
8.14demolition, and to construct, renovate,
8.15furnish, and equip the second phase.
8.16(b) The commissioner of human services
8.17shall promulgate rules to establish new
8.18licensing requirements and a new licensing
8.19category for maximum security units at the
8.20Minnesota Security Hospital at St. Peter no
8.21later than July 1, 2015.

8.22 8.23

Subd. 3.Early Childhood Learning and Child Protection Facilities

5,000,000

8.24To the commissioner of human services for
8.25grants under Minnesota Statutes, section
8.26256E.37, to construct and rehabilitate early
8.27childhood learning and child protection
8.28facilities. Notwithstanding the limits on
8.29grant amounts in Minnesota Statutes, section
8.30256E.37, a grant from this appropriation
8.31for an individual facility may be for up to
8.32$1,000,000.
8.33Notwithstanding the limitations on grant
8.34amounts in Minnesota Statutes, section
8.35256E.37, or this subdivision, $3,000,000 of
8.36this appropriation is for a grant to Hennepin
9.1County to predesign, design, renovate,
9.2furnish, and equip the early childhood center
9.3at the YWCA of Minneapolis. The grant to
9.4Hennepin County is not available until the
9.5commissioner of management and budget
9.6determines that at least an equal amount has
9.7been committed to the project from nonstate
9.8sources.

9.9

Subd. 4.Advocating for Change Together

195,000

9.10For grave markers or memorial monuments
9.11for the Remembering with Dignity Project as
9.12administered by the organization Advocating
9.13for Change Together for unmarked graves
9.14on public land of deceased residents of state
9.15hospitals or regional treatment centers.

9.16 9.17

Sec. 10. EMPLOYMENT AND ECONOMIC DEVELOPMENT

$

500,000

9.18To the commissioner of employment and
9.19economic development for Innovative
9.20Business Development Public Infrastructure
9.21Grants under Minnesota Statutes, section
9.22116J.435.

9.23 9.24

Sec. 11. MINNESOTA HISTORICAL SOCIETY

$

1,868,000

9.25To the Minnesota Historical Society to be
9.26allocated to county and local jurisdictions
9.27as matching money for historic preservation
9.28projects of a capital nature, as provided in
9.29Minnesota Statutes, section 138.0525.

9.30    Sec. 12. Minnesota Statutes 2012, section 12A.16, subdivision 5, is amended to read:
9.31    Subd. 5. Waivers authorized. The requirements of section 174.50, subdivisions 5,
9.326, 6a, and to 7, are waived for grants under subdivision 3.

10.1    Sec. 13. Minnesota Statutes 2012, section 174.50, subdivision 6b, is amended to read:
10.2    Subd. 6b. Bridge engineering and design costs in smaller cities. Until June 30,
10.32007, (a) The commissioner may make grants from the state transportation fund to a
10.4home rule or statutory city with a population of 5,000 or less and a net tax capacity of
10.5under $200,000 for design and preliminary, engineering, and construction of bridges
10.6on city streets.
10.7(b) Grants under this subdivision are subject to the procedures and criteria
10.8established under subdivisions 5 and, 6, and 7.
10.9(c) Grants may be used for:
10.10(1) 100 percent of the design and preliminary engineering costs that are in excess of
10.11$10,000;
10.12(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
10.13(3) 100 percent of the bridge construction work costs.
10.14Total grants under this subdivision to all cities may not exceed $200,000.

10.15    Sec. 14. Minnesota Statutes 2012, section 174.50, subdivision 7, is amended to read:
10.16    Subd. 7. Bridge grant program requirements; rulemaking. (a) The commissioner
10.17of transportation shall develop rules, procedures for application for grants, conditions of
10.18grant administration, standards, and criteria as provided under subdivision 6, including
10.19bridge specifications, in cooperation with road authorities of political subdivisions, for use
10.20in the administration of funds appropriated to the commissioner and for the administration
10.21of grants to subdivisions.
10.22(b) The maximum use of standardized bridges is encouraged. Regardless of the size
10.23of the existing bridge, a bridge or replacement bridge is eligible for assistance from the
10.24state transportation fund if a hydrological survey indicates that the bridge or replacement
10.25bridge must be ten feet or more in length.
10.26(c) As part of the standards or rules, the commissioner shall, in consultation with
10.27local road authorities, establish a minimum distance between any two bridges that cross
10.28over the same river, stream, or waterway, so that only one of the bridges is eligible for a
10.29grant under this section. As appropriate, the commissioner may establish exceptions from
10.30the minimum distance requirement or procedures for obtaining a variance.
10.31(d) Political subdivisions may use grants made under this section to construct or
10.32reconstruct bridges, including but not limited to:
10.33(1) matching federal aid grants to construct or reconstruct key bridges;
10.34(2) paying the costs to abandon an existing bridge that is deficient and in need of
10.35replacement but where no replacement will be made; and
11.1(3) paying the costs to construct a road or street to facilitate the abandonment of
11.2an existing bridge if the commissioner determines that the bridge is deficient, and that
11.3construction of the road or street is more economical than replacement of the existing
11.4bridge.
11.5(e) Funds appropriated to the commissioner from the Minnesota state transportation
11.6fund shall be segregated from the highway tax user distribution fund and other funds
11.7created by article XIV of the Minnesota Constitution.

11.8    Sec. 15. Minnesota Statutes 2012, section 174.52, subdivision 3, is amended to read:
11.9    Subd. 3. Advisory committee. (a) The commissioner shall establish an a local road
11.10improvement program advisory committee consisting of five members, including:
11.11(1) one county commissioner;
11.12(2) one county engineer;
11.13(3) one city engineer;
11.14(4) one city council member or city administrator representing a city with a
11.15population over 5,000; and
11.16(5) one city council member or city administrator representing a city with a
11.17population under 5,000.
11.18(b) The advisory committee shall provide recommendations to the commissioner
11.19regarding expenditures from the trunk highway corridor projects account accounts
11.20established in this section.
11.21(b) (c) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

11.22    Sec. 16. Minnesota Statutes 2012, section 462A.37, subdivision 2, is amended to read:
11.23    Subd. 2. Authorization. (a) The agency may issue up to $30,000,000 in aggregate
11.24principal amount of housing infrastructure bonds in one or more series to which the
11.25payment made under this section may be pledged. The housing infrastructure bonds
11.26authorized in this subdivision may be issued to fund loans, on terms and conditions the
11.27agency deems appropriate, made for one or more of the following purposes:
11.28(1) to finance the costs of the construction, acquisition, and rehabilitation of
11.29supportive housing for individuals and families who are without a permanent residence;
11.30(2) to finance the costs of the acquisition and rehabilitation of foreclosed or
11.31abandoned housing to be used for affordable rental housing and the costs of new
11.32construction of rental housing on abandoned or foreclosed property where the existing
11.33structures will be demolished or removed;
12.1(3) to finance that portion of the costs of acquisition of abandoned or foreclosed
12.2 property that is attributable to the land to be leased by community land trusts to low- and
12.3moderate-income homebuyers, and to the extent feasible, projects should help mitigate
12.4racial disparities in homeownership rates and promote economic integration; and
12.5(4) to finance the costs of acquisition and rehabilitation of federally assisted rental
12.6housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
12.7of federally assisted rental housing, including providing funds to refund, in whole or in
12.8part, outstanding bonds previously issued by the agency or another government unit to
12.9finance or refinance such costs.
12.10(b) Among comparable proposals for permanent supportive housing, preference
12.11shall be given to permanent supportive housing for veterans and other individuals or
12.12families who:
12.13(1) either have been without a permanent residence for at least 12 months or at
12.14least four times in the last three years; or
12.15(2) are at significant risk of lacking a permanent residence for 12 months or at least
12.16four times in the last three years.
12.17(c) Among comparable proposals for acquisition of land to be leased by community
12.18land trusts, the agency shall give preference to the acquisition of abandoned or foreclosed
12.19property and the acquisition of property located in a foreclosure priority area identified by
12.20the agency. Proposals for the acquisition of property that is not foreclosed or abandoned
12.21or in a foreclosure priority area must include a rationale for not targeting foreclosed or
12.22abandoned properties or properties in foreclosure priority areas.
12.23EFFECTIVE DATE.This section is effective the day following final enactment for
12.24bonds authorized in 2014 and thereafter.

12.25    Sec. 17. Minnesota Statutes 2012, section 462A.37, is amended by adding a
12.26subdivision to read:
12.27    Subd. 2a. Additional authorization. In addition to the amount authorized in
12.28subdivision 2, the agency may issue up to $80,000,000 of housing infrastructure bonds in
12.29one or more series to which the payments made under this section may be pledged.

12.30    Sec. 18. Minnesota Statutes 2012, section 462A.37, is amended by adding a
12.31subdivision to read:
12.32    Subd. 5. Additional appropriation. (a) The agency must certify annually to the
12.33commissioner of management and budget the actual amount of annual debt service on
12.34each series of bonds issued under subdivision 2a.
13.1(b) Each July 15, beginning in 2016 and through 2037, if any housing infrastructure
13.2bonds issued under subdivision 2a remain outstanding, the commissioner of management
13.3and budget must transfer to the housing infrastructure bond account established under
13.4section 462A.21, subdivision 32, the amount certified under paragraph (a), not to exceed
13.5$6,400,000 annually. The amounts necessary to make the transfers are appropriated from
13.6the general fund to the commissioner of management and budget.
13.7(c) The agency may pledge to the payment of the housing infrastructure bonds the
13.8payments to be made by the state under this section.

13.9    Sec. 19. APPROPRIATIONS GIVEN EFFECT ONCE.
13.10    If an appropriation in this act is enacted more than once in the 2014 legislative
13.11session for the same purpose, the appropriation must be given effect only once. If the
13.12appropriations for the same purpose are for different amounts, the lowest of the amounts is
13.13the one to be given effect.

13.14    Sec. 20. EFFECTIVE DATE.
13.15Except as otherwise provided, this act is effective the day following final enactment.