The bill appropriates $13,700,000 from the bond proceeds fund to the commissioner of natural resources for flood hazard mitigation grants specifically for the Redpath impoundment project, which is sponsored by the Bois de Sioux Watershed District. The funds are intended for publicly owned capital improvements aimed at preventing or alleviating flood damage, in accordance with Minnesota Statutes, section 103F.161. The bill outlines that levee projects should ideally meet a state standard of three feet above the 100-year flood elevation, and project priorities will be determined by the commissioner based on need. Additionally, if any project is deemed not ready to proceed or does not utilize all allocated funds, the commissioner has the authority to reallocate those funds to other priority projects.

To finance the appropriated amount, the bill authorizes the commissioner of management and budget to sell and issue state bonds up to $13,700,000, following the procedures outlined in Minnesota Statutes, sections 16A.631 to 16A.675, and the Minnesota Constitution. The effective date of this section is set for the day following its final enactment.