MN SF3342

Authorizes the sale and issuance of up to $19,000,000 in state appropriation bonds (net of costs) for Phase 2 of the Lewis and Clark Regional Water System project, including pipeline completion to Magnolia, extension to Lincoln-Pipestone Rural Water System near Adrian, and engineering/design for final phase to Worthington.

Authorizes an additional $11,500,000 in appropriation bonds (net of costs) for Phase 3 of the project, extending from Adrian to Worthington, constructing a reservoir in Nobles County and meter building in Worthington, and installing a supervisory control and data acquisition (SCADA) system.

Requires a minimum $9,000,000 nonstate match commitment before bonds can be sold for each project phase; proceeds credited to a special Lewis and Clark bond proceeds fund in state treasury.

Appropriates up to $1,351,000 annually from the general fund for fiscal years 2017-2038 to pay principal and interest on Phase 2 bonds, and up to $855,000 annually for fiscal years 2018-2039 for Phase 3 bonds.

Bonds are not public debt and not backed by state's full faith and credit; bonds can be canceled if legislature fails to appropriate sufficient debt service funds in any fiscal year.