The bill appropriates $8,000,000 from the bond proceeds fund to the Public Facilities Authority for a grant to the city of Cottonwood. This funding is designated for the design, construction, and equipping of Phase 1 of the replacement of aging public infrastructure, which includes improvements to the city's sanitary sewer system, drinking water distribution system, street reconstruction, and necessary upgrades for better municipal water quality through connection to the Lincoln Pipestone Rural Water system.

Additionally, the bill authorizes the commissioner of management and budget to sell and issue state bonds up to the amount of $8,000,000 to provide the necessary funding. The bond sale will be conducted in accordance with existing Minnesota statutes and constitutional provisions. The effective date of this section is set for the day following its final enactment.