Minnesota Legislature
HF 2701
1st Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/28/2014 01:55pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to disaster relief; creating a disaster assistance contingency account;
1.3requiring transfer of unused disaster relief appropriations to the disaster
1.4assistance contingency account; establishing a disaster relief cost-share
1.5relationship between the state, local governments, and American Indian tribes
1.6and bands; authorizing state public disaster assistance in the absence of federal
1.7public disaster assistance; appropriating money;amending Minnesota Statutes
1.82012, sections 12.03, by adding subdivisions; 12.221, subdivision 4, by adding a
1.9subdivision; 12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision
1.103; 12A.15, subdivision 1; 16A.28, by adding a subdivision; proposing coding for
1.11new law as Minnesota Statutes, chapter 12B.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.15 Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision
1.16to read:
1.17 Subd. 5d. Local government. "Local government" has the meaning given in Code
1.18of Federal Regulations, title 44, section 206.2 (2012).
1.19 Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to
1.20read:
1.21 Subd. 6b. Nonfederal share. "Nonfederal share" has the meaning given in section
1.2212A.02, subdivision 7.
1.23 Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:
2.1 Subd. 4. Subgrant agreements; state share. (a) The state director, serving as the
2.2governor's authorized representative, may enter into subgrant agreements with eligible
2.3applicants to provide federal and state financial assistance made available as a result
2.4of a disaster declaration.
2.5(b) When state funds are used to provide the FEMA Public Assistance Program
2.6cost-share requirement for a local government, the state director must award a local
2.7government 100 percent of the nonfederal share of the local government's FEMA Public
2.8Assistance Program costs.
2.9 Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision
2.10to read:
2.11 Subd. 6. Disaster assistance contingency account; appropriation. (a) A disaster
2.12assistance contingency account is created in the special revenue fund in the state treasury.
2.13Money in the disaster assistance contingency account is appropriated to the commissioner
2.14of public safety to provide:
2.15(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
2.16(2) state public disaster assistance to eligible applicants under chapter 12B.
2.17(b) For appropriations under paragraph (a), clause (1), the amount appropriated is
2.18100 percent of any nonfederal share for state agencies and local governments. Money
2.19appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the
2.20nonfederal share for publicly owned capital improvement projects.
2.21(c) For appropriations under paragraph (a), clause (2), the amount appropriated
2.22is the amount required to pay eligible claims under chapter 12B, as certified by the
2.23commissioner of public safety.
2.24(d) By January 15 of each year, the commissioner of management and budget shall
2.25submit a report to the chairs and ranking minority members of the house of representatives
2.26Ways and Means Committee and the senate Finance Committee detailing state disaster
2.27assistance appropriations and expenditures under this subdivision during the previous
2.28calendar year.
2.29(e) The governor's budget proposal submitted to the legislature under section 16A.11
2.30must include recommended appropriations to the disaster assistance contingency account.
2.31The governor's appropriation recommendations must be informed by the commissioner of
2.32public safety's estimate of the amount of money that will be necessary to:
2.33(1) provide 100 percent of the nonfederal share for state agencies and local
2.34governments that will receive federal financial assistance from FEMA during the next
2.35biennium; and
3.1(2) fully pay all eligible claims under chapter 12B.
3.2(f) Notwithstanding section 16A.28:
3.3(1) funds appropriated or transferred to the disaster assistance contingency account
3.4do not lapse but remain in the account until appropriated; and
3.5(2) funds appropriated from the disaster assistance contingency account do not lapse
3.6and are available until expended.
3.7 Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:
3.8 Subd. 2. Appropriation. "Appropriation" means an appropriation provided in law
3.9specifically to implement this chapter, including but not limited to a statutory appropriation
3.10to provide the required cost-share for federal disaster assistance under section 12.221.
3.11 Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
3.12to read:
3.13 Subd. 6. Local government. "Local government" has the meaning given in section
3.1412.03, subdivision 5d.
3.15 Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
3.16to read:
3.17 Subd. 7. Nonfederal share. "Nonfederal share" means that portion of total FEMA
3.18Public Assistance Program costs that is no more than 25 percent and is not eligible for
3.19FEMA reimbursement.
3.20 Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
3.21 Subd. 3. Nonduplication of federal assistance. State assistance may not duplicate
3.22or supplement eligible FEMA Public Assistance Program assistance. For eligible Public
3.23Assistance Program costs, any statematching cost-share money made available for
3.24that assistance must be disbursed by the Department of Public Safety to a state agency,
3.25localpolitical subdivision, Indian tribe government, or other applicant. State assistance
3.26distributed by a state agency, other than the Department of Public Safety, to apolitical
3.27subdivision local government or other applicant for disaster costs that are eligible for
3.28FEMA Public Assistance Program assistance constitutes an advance of funds. Such
3.29advances must be repaid to the applicable state agency when the applicant has received
3.30the FEMA Public Assistance Program assistance, and whatever statematching cost-share
3.31 money may be made available for that assistance, from the Department of Public Safety.
4.1 Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:
4.2 Subdivision 1. Statematch cost-share for federal assistance. State appropriations
4.3may be usedfor payment of the state match for federal disaster assistance to pay 100
4.4percent of the nonfederal share for state agencies. If authorized in law, state appropriations
4.5may be used to pay all or a portion of the local share of the match for federal funds for
4.6political subdivisions and local governments under section
12.221 . An appropriation from
4.7the bond proceeds fund may be usedto fund federal match obligations as cost-share for
4.8federal disaster assistance for publicly owned capital improvement projectsresulting from
4.9the receipt of federal disaster assistance.
4.10 Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision
4.11to read:
4.12 Subd. 9. Disaster assistance. (a) The commissioner of management and budget
4.13must transfer the unexpended and unencumbered balance of a general fund disaster
4.14assistance appropriation that expires as provided under this section or as otherwise provided
4.15by law to the disaster assistance contingency account in section 12.221, subdivision 6.
4.16(b) Expired disaster assistance transferred to the disaster assistance contingency
4.17account is available for appropriation as provided under section 12.221, subdivision
4.186, regardless of the specific disaster event or purpose for which the expired disaster
4.19assistance was originally appropriated.
4.20(c) The commissioner must report each transfer to the chairs of the house of
4.21representatives Ways and Means Committee and the senate Finance Committee.
4.22(d) For the purposes of this subdivision, "disaster assistance appropriation" means
4.23an appropriation from the general fund to provide cost-share required for federal disaster
4.24assistance or to provide other state disaster assistance under chapter 12A or 12B.
4.25 Sec. 11. EFFECTIVE DATE.
4.26This article is effective the day following final enactment.
4.29 Section 1. [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL
4.30AID.
4.31This chapter establishes a state public assistance program to provide cost-share
4.32assistance to local governments that sustain significant damage on a per capita basis but
5.1are not eligible for federal disaster assistance or corresponding state assistance under
5.2chapter 12A.
5.3 Sec. 2. [12B.15] DEFINITIONS.
5.4 Subdivision 1. Application. The definitions in this section apply to this chapter.
5.5 Subd. 2. Applicant. "Applicant" means a local government that applies for state
5.6disaster assistance under this chapter.
5.7 Subd. 3. Commissioner. "Commissioner" means the commissioner of public safety.
5.8 Subd. 4. Director. "Director" means the director of the Division of Homeland
5.9Security and Emergency Management in the Department of Public Safety.
5.10 Subd. 5. Disaster. "Disaster" means any catastrophe, including but not limited
5.11to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic
5.12eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire,
5.13flood, or explosion.
5.14 Subd. 6. FEMA. "FEMA" means the Federal Emergency Management Agency.
5.15 Subd. 7. Incident period. "Incident period" means the time interval of a disaster as
5.16delineated by specific start and end dates.
5.17 Subd. 8. Local government. "Local government" has the meaning given in section
5.1812.03, subdivision 5d.
5.19 Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
5.20 Subdivision 1. Payment required; eligibility criteria. The director, serving as
5.21the governor's authorized representative, may enter into grant agreements with eligible
5.22applicants to provide state financial assistance made available as a result of a disaster
5.23that satisfies all of the following criteria:
5.24(1) the state or applicable local government declares a disaster or emergency during
5.25the incident period;
5.26(2) damages suffered and eligible costs incurred are the direct result of the disaster;
5.27(3) federal disaster assistance is not available to the applicant because the governor
5.28did not request a presidential declaration of major disaster, the president denied the
5.29governor's request, or the applicant is not eligible for federal disaster assistance because
5.30the state or county did not meet the per capita impact indicator under FEMA's Public
5.31Assistance Program;
5.32(4) the applicant incurred eligible damages that, on a per capita basis, equal or
5.33exceed 50 percent of the countywide per capita impact indicator under FEMA's Public
5.34Assistance Program;
6.1(5) the applicant assumes responsibility for 25 percent of the applicant's total
6.2eligible costs; and
6.3(6) the applicant satisfies all requirements in this chapter.
6.4 Subd. 2. Considerations; other resources available. When evaluating applicant
6.5eligibility under subdivision 1, the director must consider:
6.6(1) the availability of other resources from federal, state, local, private, or other
6.7sources; and
6.8(2) the availability or existence of insurance.
6.9 Sec. 4. [12B.30] ELIGIBLE COSTS.
6.10 Subdivision 1. Eligible costs. Costs eligible for payment under this chapter are
6.11those costs that would be eligible for federal financial assistance under FEMA's Public
6.12Assistance Program.
6.13 Subd. 2. Ineligible costs. Ineligible costs are all costs not included in subdivision
6.141, including but not limited to:
6.15(1) ordinary operating expenses, including salaries and expenses of employees and
6.16public officials that are not directly related to the disaster response;
6.17(2) costs for which payment has been or will be received from any other funding
6.18source;
6.19(3) disaster-related costs that should, in the determination of the director, be covered
6.20and compensated by insurance; and
6.21(4) projects and claims totaling less than $1,000.
6.22 Sec. 5. [12B.35] APPLICANT'S SHARE.
6.23An applicant's share of eligible costs incurred must not be less than 25 percent. The
6.24substantiated value of donated materials, equipment, services, and labor may be used as
6.25all or part of the applicant's share of eligible costs, subject to the following:
6.26(1) all items and sources of donation must be indicated on the application and any
6.27supporting documentation submitted to the commissioner;
6.28(2) the rate for calculating the value of donated, nonprofessional labor is the
6.29prevailing federal minimum wage;
6.30(3) the value of donated equipment may not exceed the highway equipment rates
6.31approved by the commissioner of transportation; and
6.32(4) the value of donated materials and professional services must conform to market
6.33rates and be established by invoice.
7.1 Sec. 6. [12B.40] APPLICATION PROCESS.
7.2(a) The director must develop application materials and may update the materials as
7.3needed. Application materials must include instructions and requirements for assistance
7.4under this chapter.
7.5(b) An applicant has 30 days from the end of the incident period or the president's
7.6official denial of the governor's request for a declaration of a major disaster to provide the
7.7director with written notice of intent to apply. The director may deny an application due to
7.8a late notice of intent to apply.
7.9(c) Within 60 days after the end of the incident period or the president's official denial
7.10of the governor's request for a declaration of a major disaster, the applicant must submit a
7.11complete application to the director. A complete application includes the following:
7.12(1) the cause, location of damage, and incident period;
7.13(2) documentation of a local, tribal, county, or state disaster or emergency
7.14declaration in response to the disaster;
7.15(3) a description of damages, an initial damage assessment, and the amount of
7.16eligible costs incurred by the applicant;
7.17(4) a statement or evidence that the applicant has the ability to pay for at least 25
7.18percent of total eligible costs incurred from the disaster; and
7.19(5) a statement or evidence that the local government has incurred damages equal to
7.20or exceeding 50 percent of the federal countywide threshold in effect during the incident
7.21period.
7.22(d) The director must review the application and supporting documentation for
7.23completeness and may return the application with a request for more detailed information.
7.24The director may consult with local public officials to ensure the application reflects the
7.25extent and magnitude of the damage and to reconcile any differences. The application is
7.26not complete until the director receives all requested information.
7.27(e) If the director returns an application with a request for more detailed information
7.28or for correction of deficiencies, the applicant must submit all required information within
7.2930 days of the applicant's receipt of the director's request. The applicant's failure to
7.30provide the requested information in a timely manner without a reasonable explanation
7.31may be cause for denial of the application.
7.32(f) The director has no more than 60 days from the receipt of a complete application
7.33to approve or deny the application, or the application is deemed approved. If the director
7.34denies an application, the director must send a denial letter. If the director approves an
7.35application or the application is automatically deemed approved after 60 days, the director
7.36must notify the applicant of the steps necessary to obtain reimbursement of eligible
8.1costs, including submission of invoices or other documentation substantiating the costs
8.2submitted for reimbursement.
8.3 Sec. 7. [12B.45] CLAIMS PROCESS.
8.4 Subdivision 1. Claims; appeal. (a) An applicant must submit to the director
8.5completed claims for payment of actual and eligible costs on forms provided by the
8.6director. All eligible costs claimed for payment must be documented and consistent with
8.7the eligibility provisions of this chapter.
8.8(b) If the director denies an applicant's claim for payment, the applicant has 30 days
8.9from receipt of the director's determination to appeal in writing to the commissioner. The
8.10appeal must include the applicant's rationale for reversing the director's determination. The
8.11commissioner has 30 days from receipt of the appeal to uphold or modify the director's
8.12determination and formally respond to the applicant. If, within 30 days of receiving
8.13the commissioner's decision, the applicant notifies the commissioner that the applicant
8.14intends to contest the commissioner's decision, the Office of Administrative Hearings shall
8.15conduct a hearing under the contested case provisions of chapter 14.
8.16 Subd. 2. Final inspection. Upon completion of all work by an applicant, the
8.17director may inspect all work claimed by the applicant. The applicant must provide the
8.18director with access to records pertaining to all claimed work and must permit the director
8.19to review all records relating to the work.
8.20 Subd. 3. Closeout. The director must close out an applicant's disaster assistance
8.21application after all of the following occur:
8.22(1) eligible work is complete;
8.23(2) the applicant receives the final amount due or pays any amount owed under
8.24section 12B.50; and
8.25(3) any extant or scheduled audits are complete.
8.26 Subd. 4. Audit. (a) An applicant must account for all funds received under this
8.27chapter in conformance with generally accepted accounting principles and practices. The
8.28applicant must maintain detailed records of expenditures to show that grants received under
8.29this chapter were used for the purpose for which the payment was made. The applicant
8.30must maintain records for five years and make the records available for inspection and
8.31audit by the director or the state auditor. The applicant must keep all financial records for
8.32five years after the final payment, including but not limited to all invoices and canceled
8.33checks or bank statements that support all eligible costs claimed by the applicant.
8.34(b) The director or state auditor may audit all applicant records pertaining to an
8.35application or payment under this chapter.
9.1 Sec. 8. [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT
9.2REQUIRED.
9.3If an applicant subsequently recovers eligible costs from another source after
9.4receiving payment under this chapter, the applicant must pay the commissioner an amount
9.5equal to the corresponding state funds received within 30 days. The commissioner must
9.6deposit any repayment in the disaster response contingency account in section 12.221,
9.7subdivision 6.
9.8 Sec. 9. EFFECTIVE DATE.
9.9This article is effective the day following final enactment.
9.12 Section 1. TRANSFER; EMERGENCY MANAGEMENT.
9.13On July 1, 2014, the commissioner of management and budget shall transfer
9.14$3,000,000 from the general fund to the disaster assistance contingency account
9.15established in Minnesota Statutes, section 12.221, subdivision 6.
1.3requiring transfer of unused disaster relief appropriations to the disaster
1.4assistance contingency account; establishing a disaster relief cost-share
1.5relationship between the state, local governments, and American Indian tribes
1.6and bands; authorizing state public disaster assistance in the absence of federal
1.7public disaster assistance; appropriating money;amending Minnesota Statutes
1.82012, sections 12.03, by adding subdivisions; 12.221, subdivision 4, by adding a
1.9subdivision; 12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision
1.103; 12A.15, subdivision 1; 16A.28, by adding a subdivision; proposing coding for
1.11new law as Minnesota Statutes, chapter 12B.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.15 Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision
1.16to read:
1.17 Subd. 5d. Local government. "Local government" has the meaning given in Code
1.18of Federal Regulations, title 44, section 206.2 (2012).
1.19 Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to
1.20read:
1.21 Subd. 6b. Nonfederal share. "Nonfederal share" has the meaning given in section
1.2212A.02, subdivision 7.
1.23 Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:
2.1 Subd. 4. Subgrant agreements; state share. (a) The state director, serving as the
2.2governor's authorized representative, may enter into subgrant agreements with eligible
2.3applicants to provide federal and state financial assistance made available as a result
2.4of a disaster declaration.
2.5(b) When state funds are used to provide the FEMA Public Assistance Program
2.6cost-share requirement for a local government, the state director must award a local
2.7government 100 percent of the nonfederal share of the local government's FEMA Public
2.8Assistance Program costs.
2.9 Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision
2.10to read:
2.11 Subd. 6. Disaster assistance contingency account; appropriation. (a) A disaster
2.12assistance contingency account is created in the special revenue fund in the state treasury.
2.13Money in the disaster assistance contingency account is appropriated to the commissioner
2.14of public safety to provide:
2.15(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
2.16(2) state public disaster assistance to eligible applicants under chapter 12B.
2.17(b) For appropriations under paragraph (a), clause (1), the amount appropriated is
2.18100 percent of any nonfederal share for state agencies and local governments. Money
2.19appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the
2.20nonfederal share for publicly owned capital improvement projects.
2.21(c) For appropriations under paragraph (a), clause (2), the amount appropriated
2.22is the amount required to pay eligible claims under chapter 12B, as certified by the
2.23commissioner of public safety.
2.24(d) By January 15 of each year, the commissioner of management and budget shall
2.25submit a report to the chairs and ranking minority members of the house of representatives
2.26Ways and Means Committee and the senate Finance Committee detailing state disaster
2.27assistance appropriations and expenditures under this subdivision during the previous
2.28calendar year.
2.29(e) The governor's budget proposal submitted to the legislature under section 16A.11
2.30must include recommended appropriations to the disaster assistance contingency account.
2.31The governor's appropriation recommendations must be informed by the commissioner of
2.32public safety's estimate of the amount of money that will be necessary to:
2.33(1) provide 100 percent of the nonfederal share for state agencies and local
2.34governments that will receive federal financial assistance from FEMA during the next
2.35biennium; and
3.1(2) fully pay all eligible claims under chapter 12B.
3.2(f) Notwithstanding section 16A.28:
3.3(1) funds appropriated or transferred to the disaster assistance contingency account
3.4do not lapse but remain in the account until appropriated; and
3.5(2) funds appropriated from the disaster assistance contingency account do not lapse
3.6and are available until expended.
3.7 Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:
3.8 Subd. 2. Appropriation. "Appropriation" means an appropriation provided in law
3.9specifically to implement this chapter, including but not limited to a statutory appropriation
3.10to provide the required cost-share for federal disaster assistance under section 12.221.
3.11 Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
3.12to read:
3.13 Subd. 6. Local government. "Local government" has the meaning given in section
3.1412.03, subdivision 5d.
3.15 Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
3.16to read:
3.17 Subd. 7. Nonfederal share. "Nonfederal share" means that portion of total FEMA
3.18Public Assistance Program costs that is no more than 25 percent and is not eligible for
3.19FEMA reimbursement.
3.20 Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
3.21 Subd. 3. Nonduplication of federal assistance. State assistance may not duplicate
3.22or supplement eligible FEMA Public Assistance Program assistance. For eligible Public
3.23Assistance Program costs, any state
3.24that assistance must be disbursed by the Department of Public Safety to a state agency,
3.25local
3.26distributed by a state agency, other than the Department of Public Safety, to a
3.27
3.28FEMA Public Assistance Program assistance constitutes an advance of funds. Such
3.29advances must be repaid to the applicable state agency when the applicant has received
3.30the FEMA Public Assistance Program assistance, and whatever state
3.31 money may be made available for that assistance, from the Department of Public Safety.
4.1 Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:
4.2 Subdivision 1. State
4.3may be used
4.4percent of the nonfederal share for state agencies
4.5
4.6
4.7the bond proceeds fund may be used
4.8federal disaster assistance for publicly owned capital improvement projects
4.9
4.10 Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision
4.11to read:
4.12 Subd. 9. Disaster assistance. (a) The commissioner of management and budget
4.13must transfer the unexpended and unencumbered balance of a general fund disaster
4.14assistance appropriation that expires as provided under this section or as otherwise provided
4.15by law to the disaster assistance contingency account in section 12.221, subdivision 6.
4.16(b) Expired disaster assistance transferred to the disaster assistance contingency
4.17account is available for appropriation as provided under section 12.221, subdivision
4.186, regardless of the specific disaster event or purpose for which the expired disaster
4.19assistance was originally appropriated.
4.20(c) The commissioner must report each transfer to the chairs of the house of
4.21representatives Ways and Means Committee and the senate Finance Committee.
4.22(d) For the purposes of this subdivision, "disaster assistance appropriation" means
4.23an appropriation from the general fund to provide cost-share required for federal disaster
4.24assistance or to provide other state disaster assistance under chapter 12A or 12B.
4.25 Sec. 11. EFFECTIVE DATE.
4.26This article is effective the day following final enactment.
4.29 Section 1. [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL
4.30AID.
4.31This chapter establishes a state public assistance program to provide cost-share
4.32assistance to local governments that sustain significant damage on a per capita basis but
5.1are not eligible for federal disaster assistance or corresponding state assistance under
5.2chapter 12A.
5.3 Sec. 2. [12B.15] DEFINITIONS.
5.4 Subdivision 1. Application. The definitions in this section apply to this chapter.
5.5 Subd. 2. Applicant. "Applicant" means a local government that applies for state
5.6disaster assistance under this chapter.
5.7 Subd. 3. Commissioner. "Commissioner" means the commissioner of public safety.
5.8 Subd. 4. Director. "Director" means the director of the Division of Homeland
5.9Security and Emergency Management in the Department of Public Safety.
5.10 Subd. 5. Disaster. "Disaster" means any catastrophe, including but not limited
5.11to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic
5.12eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire,
5.13flood, or explosion.
5.14 Subd. 6. FEMA. "FEMA" means the Federal Emergency Management Agency.
5.15 Subd. 7. Incident period. "Incident period" means the time interval of a disaster as
5.16delineated by specific start and end dates.
5.17 Subd. 8. Local government. "Local government" has the meaning given in section
5.1812.03, subdivision 5d.
5.19 Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
5.20 Subdivision 1. Payment required; eligibility criteria. The director, serving as
5.21the governor's authorized representative, may enter into grant agreements with eligible
5.22applicants to provide state financial assistance made available as a result of a disaster
5.23that satisfies all of the following criteria:
5.24(1) the state or applicable local government declares a disaster or emergency during
5.25the incident period;
5.26(2) damages suffered and eligible costs incurred are the direct result of the disaster;
5.27(3) federal disaster assistance is not available to the applicant because the governor
5.28did not request a presidential declaration of major disaster, the president denied the
5.29governor's request, or the applicant is not eligible for federal disaster assistance because
5.30the state or county did not meet the per capita impact indicator under FEMA's Public
5.31Assistance Program;
5.32(4) the applicant incurred eligible damages that, on a per capita basis, equal or
5.33exceed 50 percent of the countywide per capita impact indicator under FEMA's Public
5.34Assistance Program;
6.1(5) the applicant assumes responsibility for 25 percent of the applicant's total
6.2eligible costs; and
6.3(6) the applicant satisfies all requirements in this chapter.
6.4 Subd. 2. Considerations; other resources available. When evaluating applicant
6.5eligibility under subdivision 1, the director must consider:
6.6(1) the availability of other resources from federal, state, local, private, or other
6.7sources; and
6.8(2) the availability or existence of insurance.
6.9 Sec. 4. [12B.30] ELIGIBLE COSTS.
6.10 Subdivision 1. Eligible costs. Costs eligible for payment under this chapter are
6.11those costs that would be eligible for federal financial assistance under FEMA's Public
6.12Assistance Program.
6.13 Subd. 2. Ineligible costs. Ineligible costs are all costs not included in subdivision
6.141, including but not limited to:
6.15(1) ordinary operating expenses, including salaries and expenses of employees and
6.16public officials that are not directly related to the disaster response;
6.17(2) costs for which payment has been or will be received from any other funding
6.18source;
6.19(3) disaster-related costs that should, in the determination of the director, be covered
6.20and compensated by insurance; and
6.21(4) projects and claims totaling less than $1,000.
6.22 Sec. 5. [12B.35] APPLICANT'S SHARE.
6.23An applicant's share of eligible costs incurred must not be less than 25 percent. The
6.24substantiated value of donated materials, equipment, services, and labor may be used as
6.25all or part of the applicant's share of eligible costs, subject to the following:
6.26(1) all items and sources of donation must be indicated on the application and any
6.27supporting documentation submitted to the commissioner;
6.28(2) the rate for calculating the value of donated, nonprofessional labor is the
6.29prevailing federal minimum wage;
6.30(3) the value of donated equipment may not exceed the highway equipment rates
6.31approved by the commissioner of transportation; and
6.32(4) the value of donated materials and professional services must conform to market
6.33rates and be established by invoice.
7.1 Sec. 6. [12B.40] APPLICATION PROCESS.
7.2(a) The director must develop application materials and may update the materials as
7.3needed. Application materials must include instructions and requirements for assistance
7.4under this chapter.
7.5(b) An applicant has 30 days from the end of the incident period or the president's
7.6official denial of the governor's request for a declaration of a major disaster to provide the
7.7director with written notice of intent to apply. The director may deny an application due to
7.8a late notice of intent to apply.
7.9(c) Within 60 days after the end of the incident period or the president's official denial
7.10of the governor's request for a declaration of a major disaster, the applicant must submit a
7.11complete application to the director. A complete application includes the following:
7.12(1) the cause, location of damage, and incident period;
7.13(2) documentation of a local, tribal, county, or state disaster or emergency
7.14declaration in response to the disaster;
7.15(3) a description of damages, an initial damage assessment, and the amount of
7.16eligible costs incurred by the applicant;
7.17(4) a statement or evidence that the applicant has the ability to pay for at least 25
7.18percent of total eligible costs incurred from the disaster; and
7.19(5) a statement or evidence that the local government has incurred damages equal to
7.20or exceeding 50 percent of the federal countywide threshold in effect during the incident
7.21period.
7.22(d) The director must review the application and supporting documentation for
7.23completeness and may return the application with a request for more detailed information.
7.24The director may consult with local public officials to ensure the application reflects the
7.25extent and magnitude of the damage and to reconcile any differences. The application is
7.26not complete until the director receives all requested information.
7.27(e) If the director returns an application with a request for more detailed information
7.28or for correction of deficiencies, the applicant must submit all required information within
7.2930 days of the applicant's receipt of the director's request. The applicant's failure to
7.30provide the requested information in a timely manner without a reasonable explanation
7.31may be cause for denial of the application.
7.32(f) The director has no more than 60 days from the receipt of a complete application
7.33to approve or deny the application, or the application is deemed approved. If the director
7.34denies an application, the director must send a denial letter. If the director approves an
7.35application or the application is automatically deemed approved after 60 days, the director
7.36must notify the applicant of the steps necessary to obtain reimbursement of eligible
8.1costs, including submission of invoices or other documentation substantiating the costs
8.2submitted for reimbursement.
8.3 Sec. 7. [12B.45] CLAIMS PROCESS.
8.4 Subdivision 1. Claims; appeal. (a) An applicant must submit to the director
8.5completed claims for payment of actual and eligible costs on forms provided by the
8.6director. All eligible costs claimed for payment must be documented and consistent with
8.7the eligibility provisions of this chapter.
8.8(b) If the director denies an applicant's claim for payment, the applicant has 30 days
8.9from receipt of the director's determination to appeal in writing to the commissioner. The
8.10appeal must include the applicant's rationale for reversing the director's determination. The
8.11commissioner has 30 days from receipt of the appeal to uphold or modify the director's
8.12determination and formally respond to the applicant. If, within 30 days of receiving
8.13the commissioner's decision, the applicant notifies the commissioner that the applicant
8.14intends to contest the commissioner's decision, the Office of Administrative Hearings shall
8.15conduct a hearing under the contested case provisions of chapter 14.
8.16 Subd. 2. Final inspection. Upon completion of all work by an applicant, the
8.17director may inspect all work claimed by the applicant. The applicant must provide the
8.18director with access to records pertaining to all claimed work and must permit the director
8.19to review all records relating to the work.
8.20 Subd. 3. Closeout. The director must close out an applicant's disaster assistance
8.21application after all of the following occur:
8.22(1) eligible work is complete;
8.23(2) the applicant receives the final amount due or pays any amount owed under
8.24section 12B.50; and
8.25(3) any extant or scheduled audits are complete.
8.26 Subd. 4. Audit. (a) An applicant must account for all funds received under this
8.27chapter in conformance with generally accepted accounting principles and practices. The
8.28applicant must maintain detailed records of expenditures to show that grants received under
8.29this chapter were used for the purpose for which the payment was made. The applicant
8.30must maintain records for five years and make the records available for inspection and
8.31audit by the director or the state auditor. The applicant must keep all financial records for
8.32five years after the final payment, including but not limited to all invoices and canceled
8.33checks or bank statements that support all eligible costs claimed by the applicant.
8.34(b) The director or state auditor may audit all applicant records pertaining to an
8.35application or payment under this chapter.
9.1 Sec. 8. [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT
9.2REQUIRED.
9.3If an applicant subsequently recovers eligible costs from another source after
9.4receiving payment under this chapter, the applicant must pay the commissioner an amount
9.5equal to the corresponding state funds received within 30 days. The commissioner must
9.6deposit any repayment in the disaster response contingency account in section 12.221,
9.7subdivision 6.
9.8 Sec. 9. EFFECTIVE DATE.
9.9This article is effective the day following final enactment.
9.12 Section 1. TRANSFER; EMERGENCY MANAGEMENT.
9.13On July 1, 2014, the commissioner of management and budget shall transfer
9.14$3,000,000 from the general fund to the disaster assistance contingency account
9.15established in Minnesota Statutes, section 12.221, subdivision 6.