HF 1

1st Engrossment - 85th Legislature, 2007 1st Special Session (2007 - 2007) Posted on 12/15/2009 12:00am

A bill for an act
relating to disaster relief; providing money to match and supplement federal
disaster assistance for property damaged by the floods of August 2007; providing
for temporary waivers of certain program requirements and other relief;
providing for flood enrollment impact aid to school districts; providing for
property tax abatements and reimbursements; modifying certain property tax and
aid provisions in designated counties; facilitating use of federal money to rebuild
I-35W bridge over the Mississippi River in the city of Minneapolis; providing
aid to local governments and individuals affected by floods, fires, drought, and
other disasters; authorizing sale of state bonds; appropriating money; amending
Minnesota Statutes 2006, sections 18E.04, subdivision 4; 72A.20, subdivision
12; 273.124, subdivision 14; proposing coding for new law in Minnesota
Statutes, chapter 273; repealing Minnesota Statutes 2006, section 273.123.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

SOUTHEAST MINNESOTA FLOOD RELIEF

Section 1. new text begin FLOOD RELIEF APPROPRIATION SUMMARY.
new text end

new text begin The amounts shown in this section summarize direct appropriations made in this
article.
new text end

new text begin SUMMARY new text end
new text begin Public Safety new text end	new text begin $ new text end	new text begin 19,500,000 new text end
new text begin Transportation new text end		new text begin 51,000,000 new text end
new text begin Natural Resources new text end		new text begin 6,700,000 new text end
new text begin Board of Water and Soil Resources new text end		new text begin 4,000,000 new text end
new text begin Pollution Control Agency new text end		new text begin 1,000,000 new text end
new text begin Employment and Economic Development new text end		new text begin 45,000,000 new text end
new text begin Housing Finance Agency new text end		new text begin 18,000,000 new text end
new text begin Minnesota Historical Society new text end		new text begin 250,000 new text end
new text begin Education new text end		new text begin 584,000 new text end
new text begin Human Services new text end		new text begin 200,000 new text end
new text begin Revenue new text end		new text begin 1,000,000 new text end
new text begin Bond Sale Expenses new text end		new text begin 75,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 147,809,000 new text end
new text begin General Fund new text end		new text begin 65,034,000 new text end
new text begin Petroleum Tank Cleanup Fund new text end		new text begin 1,000,000 new text end
new text begin Trunk Highway Fund new text end		new text begin 5,000,000 new text end
new text begin Bond Proceeds Fund new text end		new text begin 30,255,000 new text end
new text begin Trunk Highway Fund Bond Proceeds Account new text end		new text begin 20,020,000 new text end
new text begin State Transportation Fund new text end		new text begin 26,000,000 new text end

Sec. 2. new text begin FLOOD RELIEF APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin The sums in the column under
"APPROPRIATIONS" are appropriated from the bond proceeds fund to be spent to
acquire and to better publicly owned land and buildings and other public improvements of
a capital nature, and from other named funds, for relief as specified in this article from the
flooding that occurred on or after August 18, 2007, in the area of Southeast Minnesota
designated under Presidential Declaration of Major Disaster, DR-1717, whether included
in the original declaration or added later by federal government action, referred to in this
article as "the area included in DR-1717." The appropriations are for fiscal year 2008,
except that appropriations of bond proceeds or for capital improvements are available until
the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642. If
there is a shortage of money for a program or project funded in this article, or in the money
available for state and local match under Minnesota Statutes, section 12.221, unused
general fund money appropriated for any other program or project in this article may be
transferred by an interagency agreement approved by the commissioner of finance to
cover the shortfall. The commissioner shall report the transfers to the chairs of the senate
finance and house of representatives ways and means committees. The appropriations in
this article are one time.
new text end

new text begin Subd. 2. new text end

new text begin Repayment. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 161.04,
subdivision 1, a state agency that receives emergency federal money for a project funded
in this article must credit the federal money to the fund from which the agency received an
appropriation for that project, in an amount equal to the federal money, up to the amount of
the appropriation in this article. The commissioner of finance may approve other methods
for repaying state money with federal emergency money.
new text end

new text begin (b) A local government that receives federal money for a project funded in this
article must repay to the state an amount equal to the federal money, up to the amount
of the state grant used for that project. The repayment must be credited to the fund from
which the local government received the appropriation for that project in this article.
new text end

					new text begin APPROPRIATIONS new text end

Sec. 3. new text begin PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 19,500,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Match for Individual Assistance new text end

new text begin 2,000,000 new text end

new text begin For the state match for federal disaster
assistance to individuals under Minnesota
Statutes, section 12.221. This appropriation
is from the general fund.
new text end

new text begin Subd. 3. new text end new text begin State and Local Match new text end

new text begin 15,000,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end		new text begin 2,000,000 new text end
new text begin Bond Proceeds new text end		new text begin 13,000,000 new text end

new text begin For the state and local match for federal
disaster assistance to state agencies and
political subdivisions under Minnesota
Statutes, section 12.221.
new text end

new text begin The appropriation from the bond proceeds
fund is available to fund 100 percent of the
state and local match obligations for publicly
owned capital improvement projects incurred
through the receipt of federal disaster
assistance.
new text end

new text begin Subd. 4. new text end new text begin Grants for Debris Removal and Burial new text end

new text begin 2,500,000 new text end

new text begin For grants to counties for costs related
to the burial and removal of debris from
residences and farms from the August 2007
flood damage. The commissioner may
require documentation of costs. Grants are
available for debris removal and burial costs
not covered by private insurance or federal
reimbursement. This appropriation is from
the general fund.
new text end

Sec. 4. new text begin TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 51,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Infrastructure Operation and Maintenance new text end

new text begin 5,000,000 new text end

new text begin From the trunk highway fund.
new text end

new text begin Subd. 3. new text end new text begin State Trunk Highways and Bridges new text end

new text begin 20,000,000 new text end

new text begin From the bond proceeds account in the trunk
highway fund for the reconstruction and
repair of trunk highways and trunk highway
bridges that are located in the area included
in DR-1717 and that suffered flood-related
damage in 2007.
new text end

new text begin Subd. 4. new text end new text begin Local Road and Bridge Rehabilitation and Replacement new text end

new text begin 26,000,000 new text end

new text begin From the state transportation fund, as
provided in Minnesota Statutes, section
174.50, for grants to local governments
for capital costs related to rehabilitation
and replacement of local roads and bridges
damaged or destroyed by flooding in the area
included in DR-1717.
new text end

new text begin A grantee must submit to the commissioner
of transportation final plans for each project
before grant money may be released for the
project. The commissioner shall determine
project priorities, review project plans in
light of those priorities, and, if necessary,
require changes to the plans to ensure the
most prudent use of limited state resources.
If a local government receives federal money
for a project funded under this section, the
local government must repay to the state, for
deposit in the state transportation fund, an
amount equal to the federal funding, up to
the amount of the state grant.
new text end

new text begin For grants under this subdivision, the
requirements of Minnesota Statutes, section
174.50, subdivisions 5, 6, 6a, and 7, are
waived.
new text end

Sec. 5. new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 6,700,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Facility Damage new text end

new text begin 4,200,000 new text end

new text begin From the bond proceeds fund to rehabilitate
and replace state facilities and restore natural
resources in the area included in DR-1717
that were damaged by the floods of August
2007.
new text end

new text begin Subd. 3. new text end new text begin Flood Hazard Mitigation Grants new text end

new text begin 2,000,000 new text end

new text begin From the bond proceeds fund for the state
share of flood hazard mitigation grants for
capital improvements to prevent or alleviate
flood damage under Minnesota Statutes,
section 103F.161, in the area included in
DR-1717.
new text end

new text begin The commissioner shall determine project
priorities as appropriate, based on need.
new text end

new text begin This appropriation may be used to buy out
substantially damaged structures.
new text end

new text begin To the extent that the cost of a project funded
by this appropriation in a given municipality
exceeds two percent of the median household
income in the municipality multiplied by the
number of households in the municipality,
this appropriation is also for the local share
of the project.
new text end

new text begin Subd. 4. new text end new text begin Flood Response and Recovery new text end

new text begin 500,000 new text end

new text begin For nonbondable expenditures in the area
included in DR-1717, including removal of
flood debris from streams. This appropriation
is from the general fund.
new text end

Sec. 6. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total appropriation new text end

new text begin $ new text end

new text begin 4,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin RIM Conservation Easements new text end

new text begin 1,000,000 new text end

new text begin From the bond proceeds fund to acquire
easements from landowners on marginal
lands in the area included in DR-1717 that
were damaged by the floods of August 2007
in order to protect soil and water quality
and to support fish and wildlife habitat as
provided in Minnesota Statutes, section
103F.515.
new text end

new text begin Up to 20 percent of this appropriation may be
used by the board to implement the program.
new text end

new text begin Subd. 3. new text end new text begin Erosion, Sediment, and Water Quality Control Cost-Share Program new text end

new text begin 3,000,000 new text end

new text begin From the general fund to install, repair, or
rehabilitate erosion and sediment control
projects in the area included in DR-1717 that
were damaged by the floods of August 2007
in order to protect soil and water quality and
to support fish and wildlife habitat.
new text end

new text begin Up to 20 percent of this appropriation may be
used by the board to implement the program.
new text end

Sec. 7. new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin Notwithstanding Minnesota Statutes,
sections 115C.08, subdivision 4, and
115C.09, subdivision 3i, this appropriation is
from the petroleum tank release cleanup fund
for grants to safely rehabilitate buildings
if a portion of the rehabilitation cost is
attributable to petroleum contamination or to
buy out property substantially damaged by a
petroleum tank release.
new text end

new text begin This appropriation is available until June
30, 2009. Any unused portion of the
appropriation must be returned to the
petroleum tank release cleanup fund.
new text end

Sec. 8. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 45,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Minnesota Investment Fund new text end

new text begin 35,000,000 new text end

new text begin For transfer to the Minnesota investment
fund for grants to local units of government
for locally administered grants or loan
programs for businesses and nonprofit
organizations directly and adversely affected
by the flood, including those that provide
residential, health care, child care, social, or
other services on behalf of the Department
of Human Services to residents of the area
included in DR-1717. Assistance under this
subdivision is not limited to businesses.
new text end

new text begin Payments may be made for property damage
and cleanup, and to reimburse parties under
contract, provider agreement, or other
arrangement with the commissioner of
human services as of August 18, 2007, for
residential, health care, child care, social,
or other services provided on behalf of
the Department of Human Services to a
resident of the area included in DR-1717,
notwithstanding that:
new text end

new text begin (1) the resident has been compelled by the
floods of August 2007 to relocate outside the
party's service area; or
new text end

new text begin (2) the party is unable to provide services
to the resident due to flood damage to the
party's place of business.
new text end

new text begin Criteria and requirements must be locally
established with the approval of the
commissioner. For the purposes of this
appropriation, Minnesota Statutes, sections
116J.8731, subdivisions 3, 4, 5, and 7;
116J.993; 116J.994; and 116J.995, are
waived. Businesses that receive grants or
loans from this appropriation must set goals
for jobs retained and wages paid within the
area included in DR-1717.
new text end

new text begin Before any grants under this subdivision are
awarded to a local unit of government, the
commissioner of employment and economic
development shall report to the chairs of the
senate finance and house of representatives
ways and means committees the criteria and
requirements to be used by local units of
government in the grant or loan programs
they will administer. This appropriation is
from the general fund.
new text end

new text begin Subd. 3. new text end new text begin Public Infrastructure new text end

new text begin 10,000,000 new text end

new text begin From the bond proceeds fund to the public
facilities authority for grants to local units
of government to assist with the cost of
rehabilitation and replacement of publicly
owned infrastructure, including storm
sewers, wastewater and municipal utility
service, and drinking water systems for any
costs incurred on or after August 18, 2007.
new text end

new text begin For the purposes of this appropriation,
criteria, limitations, and repayment
requirements in Minnesota Statutes, sections
446A.07, 446A.072, and 446A.081, are
waived.
new text end

Sec. 9. new text begin HOUSING FINANCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 18,000,000 new text end

new text begin The appropriations in this section are from
the general fund, for transfer to the housing
development fund for the programs specified
in this section. The amounts that may be
spent for each purpose are specified in the
following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Economic Development and Housing Challenge new text end

new text begin 16,000,000 new text end

new text begin For the economic development and housing
challenge program under Minnesota Statutes,
section 462A.33, for housing assistance in
the area included in DR-1717.
new text end

new text begin For assistance under this subdivision,
the requirements of Minnesota Statutes,
section 462A.33, subdivisions 3 and 5,
and Minnesota Rules, part 4900.3632, are
waived.
new text end

new text begin Subd. 3. new text end new text begin Capacity Building Grants new text end

new text begin 1,000,000 new text end

new text begin For grants under Minnesota Statutes, section
462A.21, subdivision 3b, to local units of
government, including regional consortia,
in the area included in DR-1717 to assess
housing and related needs and to develop
and implement community and regional
plans to meet those needs and to provide
capacity to implement recovery plans.
This appropriation is also for the costs of
additional testing of wells where bacteria has
been found.
new text end

new text begin This appropriation is also for the costs of a
licensed well contractor to decontaminate
any private domestic wells after the second
sample result shows positive for bacteria.
new text end

new text begin The Department of Health shall conduct
indoor air quality investigation and
sampling in public facilities and nonprofit
organizations. $100,000 will be appropriated
from the capacity building grants for this
purpose.
new text end

new text begin Subd. 4. new text end new text begin Disaster Relief Contingency Fund new text end

new text begin 1,000,000 new text end

new text begin To reimburse the disaster relief contingency
fund established under Minnesota Statutes,
section 462A.21, subdivision 29, for amounts
spent in response to the flooding of August
2007 in the area included in DR-1717.
new text end

Sec. 10. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin For historic structure cleanup, repair, and
replacement costs related to the floods of
August 2007. This appropriation is from the
general fund.
new text end

Sec. 11. new text begin EDUCATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 584,000 new text end

new text begin The appropriations in this section are from
the general fund. The amounts that may be
spent for each purpose are specified in the
following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Independent School District No. 239, Rushford-Peterson new text end

new text begin (a) new text end new text begin Flood Enrollment Impact Aid new text end

new text begin 89,000 new text end

new text begin The commissioner of education shall pay to
the school district flood enrollment impact
aid equal to $5,394 times the number of
pupils lost as a result of the floods of August
2007. The district must provide to the
commissioner of education documentation
of the number of pupils in average daily
membership lost as a result of the flood.
new text end

new text begin (b) new text end new text begin Disaster Relief Facilities Grant new text end

new text begin 250,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
new text end

new text begin (c) new text end new text begin Pupil Transportation Aid new text end

new text begin 40,000 new text end

new text begin For increased costs associated with
transporting students as a result of the floods
of August 2007.
new text end

new text begin Subd. 3. new text end new text begin Independent School District No. 238, Mabel-Canton new text end

new text begin 50,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
new text end

new text begin Subd. 4. new text end new text begin Independent School District No. 294, Houston new text end

new text begin 60,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
new text end

new text begin Subd. 5. new text end new text begin Independent School District No. 857, Lewiston new text end

new text begin 5,000 new text end

new text begin For increased costs associated with
transporting students as a result of the floods
of August 2007.
new text end

new text begin Subd. 6. new text end new text begin Disaster Relief Facilities Grants to Other Districts new text end

new text begin 90,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant. School districts not
included in subdivisions 2 to 5 must be given
priority in the allocation of this appropriation.
new text end

Sec. 12. new text begin HUMAN SERVICES new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin For the purposes of section 18.
new text end

new text begin This appropriation is from the general fund.
new text end

Sec. 13. new text begin REVENUE new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin To reimburse counties for property tax
abatements on damaged property under
section 19.
new text end

Sec. 14. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 75,000 new text end

new text begin To the commissioner of finance for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.
new text end

new text begin Appropriations by Fund new text end
new text begin Bond proceeds new text end		new text begin 55,000 new text end
new text begin Trunk highway new text end		new text begin 20,000 new text end

Sec. 15. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this act
from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $30,255,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Trunk highway fund. new text end

new text begin To provide the money appropriated in this act from
the bond proceeds account in the trunk highway fund, the commissioner of finance shall
sell and issue bonds of the state in an amount up to $20,020,000 in the manner, upon the
terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
and by the Minnesota Constitution, article XIV, section 11, at the times and in the amount
requested by the commissioner of transportation. The proceeds of the bonds, except
accrued interest and any premium received on the sale of the bonds, must be credited to a
bond proceeds account in the trunk highway fund.
new text end

new text begin Subd. 3. new text end

new text begin Transportation fund. new text end

new text begin To provide the money appropriated in this act from
the state transportation fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $26,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest
and any premium received on the sale of the bonds, must be credited to a bond proceeds
account in the state transportation fund.
new text end

Sec. 16. new text begin WAIVERS AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Flood hazard mitigation grants; Department of Natural
Resources. new text end

new text begin The maximum grant award under Minnesota Statutes, section 103F.161,
subdivision 2, is waived for grants for the area included in DR-1717.
new text end

new text begin Subd. 2. new text end

new text begin State erosion, sediment, and water quality control cost-share program;
RIM easements; Board of Water and Soil Resources. new text end

new text begin (a) The Board of Water and Soil
Resources may waive the provisions of Minnesota Rules, chapter 8400, in the affected
geographic area included in DR-1717 on land damaged by the floods of August 2007. The
waiver applies to all existing and future contracts to address critical conservation problems
resulting from flooding that are funded in whole or in part with state money, to the extent
that combined federal and state funding does not exceed 100 percent. All existing state
cost-share grant agreements in the area included in DR-1717 are extended to June 30, 2009.
new text end

new text begin (b) The payment maximums for improvements to the land under Minnesota Statutes,
section 103F.515, subdivision 6, paragraph (a), clause (1), are waived for easements
acquired in the geographic area included in DR-1717 on land damaged by the floods of
August 2007.
new text end

Sec. 17. new text begin USE OF NATIONAL EMERGENCY GRANT.
new text end

new text begin The expenditure of $3,000,000 of a federal National Emergency Grant is approved
and is appropriated to the commissioner of employment and economic development
for the purposes for which it was received.
new text end

new text begin To ensure efficient use of disaster money, contractors working on projects funded
under this act should, to the extent practicable, hire employees who are available through
a grant, if any, from the United States Department of Labor to the Department of
Employment and Economic Development for assistance for the area included in DR-1717.
new text end

Sec. 18. new text begin HUMAN SERVICES COSTS NOT OTHERWISE REIMBURSED.
new text end

new text begin The commissioner of human services may pay providers who were under contract,
provider agreement, or other arrangement with the commissioner of human services as of
August 18, 2007, for evacuation, transportation, or medical or remedial services provided
to vulnerable residents necessary to assure the health and safety of medical assistance
recipients during and up to 60 days following the floods and damage included in DR-1717,
to the extent that those services are not otherwise covered by federal disaster assistance,
private insurance, or other existing state or federal human services funding. This funding
shall be allocated at the discretion of the commissioner, and, to the extent approved by the
federal Centers for Medicare and Medicaid Services, some or all of the funding may be
distributed in the form of medical assistance payments.
new text end

Sec. 19. new text begin PROPERTY TAX ABATEMENTS FOR DAMAGED PROPERTY;
REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding the requirements of Minnesota
Statutes, section 375.192, the county board of a qualified county may grant abatements
of 50 percent of the taxes, including the tax imposed under Minnesota Statutes, section
275.025, but excluding special assessments, on eligible property for taxes payable in
2007 as provided in this section. The owner of the property is not required to apply for
the abatement.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Qualified county" means a county located in the area included in DR-1717 or a
county containing property damaged by the Ham Lake fire of 2007.
new text end

new text begin (c) "Eligible property" means a parcel of taxable property located in a qualified
county that contains a structure that has been determined by the assessor to have lost
over 50 percent of its estimated market value due to flood or fire damage. In the case of
agricultural property, the abatement is limited to: (1) the taxes on the parcel attributable to
the value of the house, garage, and surrounding one acre, if the house has lost over 50
percent of its estimated market value, and (2) the tax attributable to the value of any farm
buildings and structures that have lost over 50 percent of their estimated market value.
new text end

new text begin Subd. 3. new text end

new text begin County administration. new text end

new text begin (a) As soon as practicable, local and county
assessors in qualified counties shall notify the county board and property owners of parcels
of property eligible for the abatement under this section.
new text end

new text begin (b) By October 31, 2007, each qualifying county shall notify the commissioner of
revenue of the amount of flood-related or fire-related market value loss in the county. The
commissioner must notify each county of its apportioned share of the reimbursement for
abatements as determined under subdivision 4 by November 7, 2007.
new text end

new text begin (c) If the county board grants an abatement under this section to a property for which
over 50 percent of the total property tax payable in 2007 has been paid before the granting
of the abatement, the amount paid in excess of 50 percent must be refunded.
new text end

new text begin (d) The county must grant any abatements under this section by November 30, 2007,
and must notify the commissioner of revenue of the total amount of abatements granted.
new text end

new text begin (e) The commissioner of revenue must determine the amount of and pay the
reimbursements required under subdivision 4 by December 15, 2007.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement apportioned. new text end

new text begin The commissioner of revenue shall
reimburse counties for property taxes abated under this section, up to the amount
appropriated for that purpose and apportioned to the qualified counties. The reimbursement
must be only for property taxes imposed by the county and other local taxing jurisdictions
within the county that are actually abated under this section. The commissioner shall
apportion the appropriation based on the amount of flood-related or fire-related market
value loss in each county. The total reimbursement, including the amount of the state
tax imposed under Minnesota Statutes, section 275.025, must not exceed each county's
apportioned amount.
new text end

Sec. 20.

new text begin 2007 FLOOD LOSS; CITY REPLACEMENT AID.
new text end

new text begin Subdivision 1. new text end

new text begin Flood net tax capacity loss. new text end

new text begin The county assessor of each qualified
county shall compute a hypothetical city taxable net tax capacity for each city in the
county based upon market values for assessment year 2008 and the class rates that were in
effect for assessment year 2007. The amount, if any, by which the assessment year 2007
total taxable net tax capacity of the city exceeds the hypothetical taxable net tax capacity
of the city is the city's "flood net tax capacity loss." A county assessor of a qualified county
that contains a city that has a flood net tax capacity loss that exceeds five percent of its
assessment year 2007 total taxable net tax capacity shall certify the city's flood net tax
capacity loss to the commissioner of revenue by August 1, 2008.
new text end

new text begin As used in this section, a "qualified county" is a county located within the area
included in DR-1717.
new text end

new text begin Subd. 2. new text end

new text begin Flood loss aid. new text end

new text begin In 2009, each city with a flood net tax capacity loss equal
to or greater than five percent of its assessment year 2007 total taxable net tax capacity is
entitled to flood loss aid equal to the flood net tax capacity loss times the city's average
local tax rate for taxes payable in 2007.
new text end

new text begin Subd. 3. new text end

new text begin Duties of commissioner. new text end

new text begin The commissioner of revenue shall determine
each city's aid amount under this section. The commissioner shall notify each eligible city
of its flood loss aid amount by August 15, 2008. The commissioner shall make payments
to each city after July 1, and before July 20, 2009.
new text end

new text begin Subd. 4. new text end

new text begin Optional city expenditure. new text end

new text begin A city that receives aid under this section
may choose to expend a portion of the aid received for repair of county roads located
within the city.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the aid amounts under this
section in fiscal year 2010, for calendar year 2009, is appropriated to the commissioner of
revenue from the general fund.
new text end

Sec. 21. new text begin DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS
PROPERTY TAXES.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 279.01, subdivision 1, a penalty
does not accrue if, because of the 2007 floods, a taxpayer is unable to pay the second
half of the payable 2007 property taxes on class 3a or 3b property, as classified under
Minnesota Statutes, section 273.13, subdivision 24, that is in a county in the area included
in DR-1717. To qualify for this extended due date for the second half payment, the
taxpayer must have paid the first half of the payable 2007 taxes by May 16, 2007, and
must pay the second half of the payable 2007 taxes by December 31, 2007.
new text end

new text begin (b) If the second half of the payable 2007 property taxes is paid after December 31,
2007, then all penalties that would have occurred since the due date under Minnesota
Statutes, section 279.01, subdivision 1, must be charged on the amount of the unpaid tax.
new text end

new text begin (c) The property taxpayer shall attach to the payment a statement that the property is
located in the area included in DR-1717 and qualifies for an extension under this section.
new text end

Sec. 22. new text begin WAIVER OF TRUTH-IN-TAXATION REQUIREMENTS.
new text end

new text begin A county or local government in the area included in DR-1717 may petition the
commissioner in writing to waive some or all of the requirements of Minnesota Statutes,
section 275.065, to the extent that their performance or applicability is significantly
hindered by the disaster or emergency. The commissioner may grant the waiver for
truth-in-taxation for taxes payable in 2008.
new text end

Sec. 23.

Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:

Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than
ten acres that is the homestead of its owner must be classified as class 2a under section
273.13, subdivision 23, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in
lieu taxes are paid under sections 477A.11 to 477A.14;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least
20 acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal
to at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property consisting of at least 40 acres shall be classified as the
owner's homestead, to the same extent as other agricultural homestead property, if all
of the following criteria are met:

(1) the owner, the owner's spouse, the son or daughter of the owner or owner's
spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively
farming the agricultural property, either on the person's own behalf as an individual or
on behalf of a partnership operating a family farm, family farm corporation, joint family
farm venture, or limited liability company of which the person is a partner, shareholder, or
member;

(2) both the owner of the agricultural property and the person who is actively
farming the agricultural property under clause (1), are Minnesota residents;

(3) neither the owner nor the spouse of the owner claims another agricultural
homestead in Minnesota; and

(4) neither the owner nor the person actively farming the property lives farther
than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.

The relationship under this paragraph may be either by blood or marriage.

(ii) Real property held by a trustee under a trust is eligible for agricultural homestead
classification under this paragraph if the qualifications in clause (i) are met, except that
"owner" means the grantor of the trust.

(iii) Property containing the residence of an owner who owns qualified property
under clause (i) shall be classified as part of the owner's agricultural homestead, if that
property is also used for noncommercial storage or drying of agricultural crops.

(c) Noncontiguous land shall be included as part of a homestead under section
273.13, subdivision 23, paragraph (a), only if the homestead is classified as class 2a
and the detached land is located in the same township or city, or not farther than four
townships or cities or combination thereof from the homestead. Any taxpayer of these
noncontiguous lands must notify the county assessor that the noncontiguous land is part of
the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer
must also notify the assessor of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a
person holding a vested remainder interest in it must be classified as a homestead under
section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
any other dwellings on the land used for purposes of a homestead by persons holding
vested remainder interests who are actively engaged in farming the property, and up to
one acre of the land surrounding each homestead and reasonably necessary for the use of
the dwelling as a home, must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain
classified as agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
or Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 1997 assessment year and continue to be used
for agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30
miles of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in dwelling. Further notifications to the assessor are not
required if the property continues to meet all the requirements in this paragraph and any
dwellings on the agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
classified agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood,
LeSueur, Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph
and any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property consisting of at least 40 acres of a family farm corporation,
joint family farm venture, family farm limited liability company, or partnership operating
a family farm as described under subdivision 8 shall be classified homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

(1) a shareholder, member, or partner of that entity is actively farming the
agricultural property;

(2) that shareholder, member, or partner who is actively farming the agricultural
property is a Minnesota resident;

(3) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(4) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph for property leased to a family
farm corporation, joint farm venture, limited liability company, or partnership operating a
family farm if legal title to the property is in the name of an individual who is a member,
shareholder, or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an
initial full application must be submitted to the county assessor where the property is
located. Owners and the persons who are actively farming the property shall be required
to complete only a one-page abbreviated version of the application in each subsequent
year provided that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within
the four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service
Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include
the appropriate Social Security numbers, and sign and date the application. If any of the
specified information has changed since the full application was filed, the owner must
notify the assessor, and must complete a new application to determine if the property
continues to qualify for the special agricultural homestead. The commissioner of revenue
shall prepare a standard reapplication form for use by the assessors.

new text begin (i) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain
classified agricultural homesteads for subsequent assessments if:
new text end

new text begin (1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;
new text end

new text begin (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted,
Steele, Wabasha, or Winona;
new text end

new text begin (3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 2007 assessment year;
new text end

new text begin (4) the dwelling occupied by the owner is located in this state and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
new text end

new text begin (5) the owner notifies the county assessor that the relocation was due to the August
2007 floods, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph
and any dwellings on the agricultural land remain uninhabited.
new text end

Sec. 24. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise specified, this act is effective the day following final enactment.
new text end

ARTICLE 2

I-35W BRIDGE COLLAPSE

Section 1. new text begin PUBLIC SAFETY.
new text end

new text begin $2,000,000 is appropriated from the general fund to the commissioner of public
safety for fiscal year 2008 for the state and local match for federal disaster assistance to
political subdivisions under Minnesota Statutes, section 12.221, for the I-35W bridge
collapse.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 2. new text begin TRANSPORTATION.
new text end

new text begin $53,237,000 in federal grants and aids for the I-35W bridge collapse is appropriated
to the commissioner of transportation for the purposes specified in the federal grant. This
appropriation is in addition to appropriations under Laws 2007, chapter 143, article 1,
section 3.
new text end

Sec. 3.

Minnesota Statutes 2006, section 72A.20, subdivision 12, is amended to read:

Subd. 12.

Unfair service.

Causing or permitting with such frequency to indicate a
general business practice any unfair, deceptive, or fraudulent act concerning any claim or
complaint of an insured or claimant including, but not limited to, the following practices:

(1) misrepresenting pertinent facts or insurance policy provisions relating to
coverages at issue;

(2) failing to acknowledge and act reasonably promptly upon communications with
respect to claims arising under insurance policies;

(3) failing to adopt and implement reasonable standards for the prompt investigation
of claims arising under insurance policies;

(4) refusing to pay claims without conducting a reasonable investigation based
upon all available information;

(5) failing to affirm or deny coverage of claims within a reasonable time after proof
of loss statements have been completed;

(6) not attempting in good faith to effectuate prompt, fair, and equitable settlements
of claims in which liability has become reasonably clear;

(7) compelling insureds to institute litigation to recover amounts due under an
insurance policy by offering substantially less than the amounts ultimately recovered in
actions brought by the insureds;

(8) attempting to settle a claim for less than the amount to which reasonable persons
would have believed they were entitled by reference to written or printed advertising
material accompanying or made part of an application;

(9) attempting to settle claims on the basis of an application which was altered
without notice to, or knowledge or consent of, the insured;

(10) making claims payments to insureds or beneficiaries not accompanied by a
statement setting forth the coverage under which the payments are being made;

(11) making known to insureds or claimants a policy of appealing from arbitration
awards in favor of insureds or claimants for the purpose of compelling them to accept
settlements or compromises less than the amount awarded in arbitration;

(12) delaying the investigation or payment of claims by requiring an insured,
claimant, or the physician of either to submit a preliminary claim report and then requiring
the subsequent submission of formal proof of loss forms, both of which submissions
contain substantially the same information;

(13) failing to promptly settle claims, where liability has become reasonably clear,
under one portion of the insurance policy coverage in order to influence settlements under
other portions of the insurance policy coverage;

(14) failing to promptly provide a reasonable explanation of the basis in the
insurance policy in relation to the facts or applicable law for denial of a claim or for the
offer of a compromise settlement;

(15) requiring an insured to provide information or documentation that is or would
be dated more than five years prior to or five years after the date of a fire loss, except for
proof of ownership of the damaged property new text begin ;
new text end

new text begin (16) stating or implying to an insured that filing a claim related to the I-35W bridge
collapse for no-fault motor vehicle insurance benefits would or may result in cancellation
or nonrenewal of the insured's policy or in a surcharge or other future increase in premium
rates, when any such consequence of filing the claim would be prohibited by law;
new text end

new text begin (17) failing to promptly inform an insured who files a claim related to the I-35W
bridge collapse and described in section 65B.133, subdivision 5a, of the provisions of that
law, both orally and in writing new text end .

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 3

OTHER STATEWIDE DISASTER RELIEF

Section 1. new text begin AGRICULTURE.
new text end

new text begin $3,700,000 is appropriated from the general fund to the commissioner of agriculture
for flood and drought recovery assistance to affected agricultural producers. The
commissioner, in consultation with the chairs of the House and Senate agriculture finance
committees, shall develop eligibility criteria and may allocate funding among the
following areas according to need: livestock investment grants, organic certification
assistance, forage production loss offsets for livestock producers, no-interest disaster
recovery loans, water sampling and analysis related to the incident at a Rushford
agricultural chemical facility, and grants to the Board of Trustees of the Minnesota State
Colleges and Universities for mental health counseling support to farm families and
business operators through farm business management programs. For the purposes
of flood relief, eligible producers must operate an agricultural operation in the area
included in DR-1717. For the purposes of drought relief, eligible producers must operate
an agricultural operation in counties classified all or in part as D3 by the U.S. Drought
Monitor during calendar year 2007.
new text end

Sec. 2. new text begin CROOKSTON FLOOD AID.
new text end

new text begin $200,000 is appropriated from the general fund in each of the fiscal years 2008
and 2009 to the commissioner of revenue to be paid to the city of Crookston for flood
recovery and mitigation issues.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 3. new text begin BROWNS VALLEY FLOOD AID.
new text end

new text begin $100,000 is appropriated from the general fund in each of the fiscal years 2008 and
2009 to the commissioner of revenue to be paid to the city of Browns Valley to assist in
recovery from flooding that occurred March 14, 2007.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 4. new text begin GRAND MARAIS AND COOK COUNTY FIRE AID.
new text end

new text begin $500,000 is appropriated from the general fund in each of the fiscal years 2008
and 2009 to the commissioner of public safety to be paid to the city of Grand Marais
and to Cook County for costs related to the Ham Lake fire of 2007. The aid provided
in this section must be used for nonreimbursed, uninsured costs of repairing roads
and rights-of-way; sprinkler systems for structures; costs incurred by volunteer fire
departments, including replacement of portable sprinkler systems, and repair of vehicles;
debris removal and disposal costs; erosion control and water quality protection assistance
and coordination; repair, replacement, and improvement of communications equipment
and infrastructure for the city and county public safety and human services network and
emergency response centers. The total amount of the aid must be divided between the city
of Grand Marais and Cook County in proportion to their amounts of eligible costs.
new text end

Sec. 5.

Minnesota Statutes 2006, section 18E.04, subdivision 4, is amended to read:

Subd. 4.

Reimbursement payments.

(a) The board shall pay a person that is
eligible for reimbursement or payment under subdivisions 1, 2, and 3 from the agricultural
chemical response and reimbursement account for 80 percent of the total reasonable and
necessary corrective action costs greater than $1,000 and less than or equal to $350,000.

(b) A reimbursement or payment may not be made until the board has determined
that the costs are reasonable and are for a reimbursement of the costs that were actually
incurred.

(c) The board may make periodic payments or reimbursements as corrective action
costs are incurred upon receipt of invoices for the corrective action costs.

(d) Money in the agricultural chemical response and reimbursement account is
appropriated to the commissioner to make payments and reimbursements directed by
the board under this subdivision.

(e) The board may not make reimbursement greater than the maximum allowed
under paragraph (a) for all incidents on a single site which:

(1) were not reported at the time of release but were discovered and reported after
July 1, 1989; and

(2) may have occurred prior to July 1, 1989, as determined by the commissioner.

(f) The board may only reimburse an eligible person for separate incidents within a
single site if the commissioner determines that each incident is completely separate and
distinct in respect of location within the single site or time of occurrence.

(g) Except for an emergency incident, the board may not reimburse or pay for more
than 60 percent of the corrective action costs of an eligible person or for an incident within
five years of a previous incident at a single site resulting from a site recontamination.

new text begin (h) The deduction of $1,000 and 20 percent from the $350,000 remuneration may be
waived by the board if the incident took place on or after August 18, 2007, and was caused
by flooding associated with Presidential Declaration of Major Disaster DR-1717.
new text end

Sec. 6.

new text begin [273.1231] TAX RELIEF FOR DESTROYED PROPERTY;
DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of sections 273.1231 to 273.1235, the
following words, terms, and phrases have the meanings given them in this section unless
the language or context clearly indicates that a different meaning is intended.
new text end

new text begin Subd. 2. new text end

new text begin Disaster or emergency. new text end

new text begin "Disaster or emergency" means:
new text end

new text begin (1) a major disaster as determined by the president of the United States;
new text end

new text begin (2) a natural disaster as determined by the secretary of agriculture;
new text end

new text begin (3) a disaster as determined by the administrator of the small business administration;
or
new text end

new text begin (4) a tornado, storm, flood, earthquake, landslide, explosion, fire or similar
catastrophe, as a result of which a local emergency is declared pursuant to section 12.29.
new text end

new text begin Subd. 3. new text end

new text begin Disaster or emergency area. new text end

new text begin (a) "Disaster or emergency area" means a
geographic area for which:
new text end

new text begin (1)(i) the president of the United States, the secretary of agriculture, or the
administrator of the small business administration has determined that a disaster exists
pursuant to federal law, or
new text end

new text begin (ii) a local emergency has been declared pursuant to section 12.29; and
new text end

new text begin (2) an application by the local unit of government requesting property tax relief under
this section has been received by the governor and approved by the executive council.
new text end

new text begin (b) The executive council must not approve an application unless:
new text end

new text begin (1) a completed disaster survey is included; and
new text end

new text begin (2) within the boundaries of the applicant, (i) the average damage for the buildings
that are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were
damaged, or the total dollar amount of damage to all taxable buildings equals or exceeds
one percent of the total taxable market value of buildings for the applicant as reported to
the commissioner of revenue under section 270C.89, subdivision 2, for the assessment in
the year prior to the year of the damage.
new text end

new text begin Subd. 4. new text end

new text begin Homestead property. new text end

new text begin "Homestead property" means a homestead dwelling
that is classified as class 1a, 1b, 1c, or 2a property or a manufactured home or sectional
home used as a homestead and taxed pursuant to section 273.125, subdivision 8, paragraph
(b), (c), or (d).
new text end

new text begin Subd. 5. new text end

new text begin Nonhomestead property. new text end

new text begin "Nonhomestead property" means any class of
taxable real or personal property except homestead property and property that is required
by law to be appraised for property tax purposes by the commissioner of revenue.
new text end

new text begin Subd. 6. new text end

new text begin Net tax. new text end

new text begin "Net tax" means the market value and net tax capacity taxes
imposed on real and personal property under section 272.01, including the levy under
section 275.025, after the subtractions listed in section 273.1393, clauses (2) to (9). Net
tax excludes special assessments regardless of how computed.
new text end

new text begin Subd. 7. new text end

new text begin Reassessed market value. new text end

new text begin "Reassessed market value" means the taxable
market value of the property established for the January 2 assessment in the year that the
disaster or destruction occurs, as adjusted by the county assessor or the commissioner of
revenue to reflect the loss in market value caused by the damage. As soon as practical, the
assessor or commissioner shall report the reassessed value to the county auditor.
new text end

Sec. 7.

new text begin [273.1232] TAX RELIEF FOR DESTROYED PROPERTY; GENERAL
PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Reassessments required. new text end

new text begin For the purposes of sections 273.1231
to 273.1235, the county assessor must reassess all damaged property in a disaster or
emergency area, and the county assessor or the commissioner of revenue as appropriate
shall reassess all property for which an application is submitted under section 273.1233 or
273.1235.
new text end

new text begin Subd. 2. new text end

new text begin Local tax rates. new text end

new text begin Except as otherwise required by law, the county auditor
must compute local tax rates for taxes payable in the year following the year in which the
damage occurred using the values established for the January 2 assessment.
new text end

Sec. 8.

new text begin [273.1233] TAX RELIEF FOR DESTROYED PROPERTY; LOCAL
OPTION DISASTER ABATEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Abatement authorization. new text end

new text begin (a) Notwithstanding section 375.192,
a county board may grant an abatement of net tax for homestead and nonhomestead
property under the provisions of this paragraph for taxes payable in the year in which
the destruction occurs if:
new text end

new text begin (1) the owner submits a written application to the county assessor as soon as
practical after the damage has occurred;
new text end

new text begin (2) the owner submits a written application to the county board as soon as practical
after the damage has occurred; and
new text end

new text begin (3) the county assessor determines that 50 percent or more of a homestead dwelling
or other building has been (i) unintentionally or accidentally destroyed, or (ii) destroyed
by arson or vandalism by someone other than the owner.
new text end

new text begin Abatements granted under this paragraph are not subject to approval by the
commissioner of revenue.
new text end

new text begin (b) Notwithstanding sections 270C.86 and 375.192, the commissioner of revenue
may grant an abatement of net tax for property that the commissioner is required by law to
appraise for taxes payable in the year in which the destruction occurs if:
new text end

new text begin (1) the owner submits a written application to the commissioner as soon as practical
after the damage has occurred;
new text end

new text begin (2) the owner forwards a copy of the written application to the county board as soon
as practical after the damage has occurred; and
new text end

new text begin (3) the commissioner determines that 50 percent or more of the property has been
(i) unintentionally or accidentally destroyed, or (ii) destroyed by arson or vandalism by
someone other than the owner.
new text end

new text begin Abatements granted under this paragraph are not subject to approval by the county
board of the county where the property is located.
new text end

new text begin Subd. 2. new text end

new text begin Abatement limits and allowances. new text end

new text begin (a) In the case of a property located
within a disaster or emergency area, the abatement under this section is limited to the
difference between (i) the net tax on the property computed using the market value of
the property established for the January 2 assessment in the year in which the damage
occurred, and (ii) the net tax computed using the reassessed value.
new text end

new text begin (b) In the case of property not located in a disaster or emergency area, the abatement
under this section is limited to the result obtained by multiplying the difference in the net
tax on the property computed using the market value of the property established for the
January 2 assessment in the year in which the damage occurred, and the net tax computed
using the reassessed value, times a fraction, the numerator of which is the number of
months in the assessment year that the structure was not usable and the denominator
of which is 12. If a structure was usable for a fraction of a month, that month is not
included in the numerator.
new text end

new text begin (c) If application is made after payment of all or a portion of the taxes being abated,
the portion already paid shall be refunded to the taxpayer by the county treasurer as soon
as practical.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement, levy, and appropriation. new text end

new text begin (a) If the destruction occurs as
a result of a disaster or emergency and the property is located in a disaster or emergency
area, the county auditor shall certify the abatements granted under this section to the
commissioner of revenue for reimbursement to each taxing jurisdiction in which the
damaged property is located. The commissioner shall make the payments to the taxing
jurisdictions containing the property, other than school districts and the state, at the time
distributions are made under section 473H.10, subdivision 3. Reimbursements to school
districts shall be made as provided in section 273.1392. No reimbursement is to be paid
to the state treasury.
new text end

new text begin (b) Local taxing authorities may levy in the following year the amount of
unreimbursed tax dollars lost as a result of the reductions granted pursuant to this
subdivision outside of any statutory restriction as to levy amount or tax rate.
new text end

new text begin (c) There is annually appropriated from the general fund to the commissioner of
revenue an amount necessary to make the payments required by this section.
new text end

Sec. 9.

new text begin [273.1234] TAX RELIEF FOR DESTROYED PROPERTY;
HOMESTEAD AND DISASTER CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Credit provided. new text end

new text begin The county auditor shall compute a credit for taxes
payable in the year following the year in which the damage or destruction occurred for
each reassessed homestead within the county that is located within a disaster or emergency
area. The credit is equal to the difference in the net tax on the property computed using the
market value of the property established for the January 2 assessment in the year in which
the damage occurred and as computed using the reassessed value.
new text end

new text begin Subd. 2. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall certify the credits
granted under this section to the commissioner of revenue for reimbursement to each
taxing jurisdiction in which the damaged property is located. The commissioner shall
make the payments to the taxing jurisdictions containing the property, other than
school districts and the state, at the time distributions are made under section 473H.10,
subdivision 3. Reimbursements to school districts shall be made as provided in section
273.1392. No reimbursement is to be paid to the state treasury.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin There is annually appropriated from the general fund
to the commissioner of revenue an amount necessary to make the payments required
by this section.
new text end

Sec. 10.

new text begin [273.1235] TAX RELIEF FOR DESTROYED PROPERTY; LOCAL
OPTION DISASTER CREDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Credit provided. new text end

new text begin The county board may grant a credit for taxes
payable in the year following the year in which the damage or destruction occurred for:
(1) homestead properties that do not qualify for a credit under section 273.1234; and (2)
nonhomestead property meeting the requirements under section 273.1233.
new text end

new text begin Subd. 2. new text end

new text begin Credit calculation. new text end

new text begin In the case of a property located within a disaster
or emergency area, the credit is equal to the difference between (i) the net tax on the
property computed using the market value of the property established for the January 2
assessment in the year in which the damage occurred, and (ii) the net tax computed using
the reassessed value. In the case of property not located in a disaster or emergency area,
the credit under this section is equal to the result obtained by multiplying the difference in
the net tax on the property computed using the market value of the property established
for the January 2 assessment in the year in which the damage occurred, and the net
tax computed using the reassessed value, times a fraction, the numerator of which is
the number of months in the assessment year that the structure was not usable and the
denominator of which is 12. If a structure was usable for a fraction of a month, that
month is not included in the numerator.
new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall certify the credits
granted under this section for property within a disaster or emergency area to the
commissioner of revenue for reimbursement to each taxing jurisdiction in which the
damaged property is located. The commissioner shall make the payments to the taxing
jurisdictions containing the property, other than school districts and the state, at the time
distributions are made under section 473H.10, subdivision 3. Reimbursements to school
districts shall be made as provided in section 273.1392. No reimbursement is to be paid
to the state treasury. No reimbursement is to be made for credits to property not located
in a disaster or emergency area.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin There is annually appropriated from the general fund
to the commissioner of revenue an amount necessary to make the payments required
by this section.
new text end

Sec. 11. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In the next edition of Minnesota Statutes, the Revisor of Statutes shall replace the
references to section 273.123 in sections 273.11, 273.1392, and 273.1393 with references
to sections 273.1231 to 273.1235.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 273.123, new text end new text begin is repealed.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 and 11 are effective the day following final enactment. Sections 6 to
10 and 12 are effective (1) beginning for taxes payable in 2008 for all properties, (2) for
taxes payable in 2007 and thereafter for property damaged on or after the day following
final enactment, and (3) beginning for taxes payable in 2006 for property destroyed by
arson or vandalism in calendar year 2006 and thereafter.
new text end