1.1 	A bill for an act
1.2 	relating to disaster relief; providing money to match and supplement federal 
1.3 	disaster assistance for property damaged by the floods of August 2007; providing 
1.4 	for temporary waivers of certain program requirements and other relief; 
1.5 	providing for flood enrollment impact aid to school districts; providing for 
1.6 	property tax abatements and reimbursements; modifying certain property tax and 
1.7 	aid provisions in designated counties; facilitating use of federal money to rebuild 
1.8 	I-35W bridge over the Mississippi River in the city of Minneapolis; providing aid 
1.9 	to local governments and individuals affected by floods, fires, drought, and other 
1.10 	disasters; appropriating money;amending Minnesota Statutes 2006, sections 
1.11 	273.123; 273.124, subdivision 14; 275.065, by adding a subdivision.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1
1.14 	SOUTHEAST MINNESOTA FLOOD RELIEF

1.15 	Section 1. FLOOD RELIEF APPROPRIATION SUMMARY.
 1.16 	The amounts shown in this section summarize direct appropriations made in this 
1.17 	article.

1.18 | SUMMARY
1.19 | Public Safety | $ | 19,500,000
1.20 | Transportation | | 51,000,000
1.21 | Natural Resources | | 6,700,000
1.22 | Board of Water and Soil Resources | | 3,000,000
1.23 | Pollution Control Agency | | 1,000,000
1.24 | Employment and Economic Development | | 45,000,000
1.25 | Housing Finance Agency | | 18,000,000
1.26 | Minnesota Historical Society | | 250,000
1.27 | Education | | 584,000
1.28 | Revenue | | 1,000,000
2.1 | Bond Sale Expenses | | 75,000
2.2 | TOTAL | $ | 146,609,000
2.3 | General Fund | | 65,334,000
2.4 | Petroleum Tank Cleanup Fund | | 1,000,000
2.5 | Trunk Highway Fund | | 5,000,000
2.6 | Bond Proceeds Fund | | 29,255,000
2.7 | Trunk Highway Fund Bond Proceeds Account | | 20,020,000
2.8 | State Transportation Fund | | 26,000,000

2.9 | Sec. 2. FLOOD RELIEF APPROPRIATIONS.
2.10 		Subdivision 1.Appropriations. The sums in the column under 
2.11 	"APPROPRIATIONS" are appropriated from the bond proceeds fund to be spent to 
2.12 	acquire and to better publicly owned land and buildings and other public improvements of 
2.13 	a capital nature, and from other named funds, for relief as specified in this article from the 
2.14 	flooding that occurred on or after August 18, 2007, in the area of Southeast Minnesota 
2.15 	designated under Presidential Declaration of Major Disaster, DR-1717, whether included 
2.16 	in the original declaration or added later by federal government action, referred to in this 
2.17 	article as "the area included in DR-1717." The appropriations are for fiscal year 2008, 
2.18 	except that appropriations of bond proceeds or for capital improvements are available until 
2.19 	the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642. If 
2.20 	there is a shortage of money for a program or project funded in this article, or in the money 
2.21 	available for state and local match under Minnesota Statutes, section 12.221, unused 
2.22 	general fund money appropriated for any other program or project in this article may be 
2.23 	transferred by an interagency agreement approved by the commissioner of finance to 
2.24 	cover the shortfall. The commissioner shall report the transfers to the chairs of the senate 
2.25 	finance and house of representatives ways and means committees. The appropriations in 
2.26 	this article are one time.
2.27 		Subd. 2.Repayment. (a) Notwithstanding Minnesota Statutes, section 161.04, 
2.28 	subdivision 1, a state agency that receives emergency federal money for a project funded 
2.29 	in this article must credit the federal money to the fund from which the agency received an 
2.30 	appropriation for that project, in an amount equal to the federal money, up to the amount of 
2.31 	the appropriation in this article. The commissioner of finance may approve other methods 
2.32 	for repaying state money with federal emergency money.
3.1 	(b) A local government that receives federal money for a project funded in this 
3.2 	article must repay to the state an amount equal to the federal money, up to the amount 
3.3 	of the state grant used for that project. The repayment must be credited to the fund from 
3.4 	which the local government received the appropriation for that project in this article.

3.5 | | | | | | APPROPRIATIONS

3.6 | Sec. 3. PUBLIC SAFETY | | | |

3.7 | Subdivision 1.Total Appropriation | | | $ | 20,500,000
3.8 	The amounts that may be spent for each 
3.9 	purpose are specified in the following 
3.10 	subdivisions.

3.11 | Subd. 2.State Match for Individual Assistance | | | | 2,000,000
3.12 	For the state match for federal disaster 
3.13 	assistance to individuals under Minnesota 
3.14 	Statutes, section 12.221. This appropriation 
3.15 	is from the general fund.

3.16 | Subd. 3.State and Local Match | | | | 15,000,000

3.17 | Appropriations by Fund
3.18 | General | | 2,000,000
3.19 | Bond Proceeds | | 13,000,000
3.20 	For the state and local match for federal 
3.21 	disaster assistance to state agencies and 
3.22 	political subdivisions under Minnesota 
3.23 	Statutes, section 12.221.
3.24 	The appropriation from the bond proceeds 
3.25 	fund is available to fund 100 percent of the 
3.26 	state and local match obligations for publicly 
3.27 	owned capital improvement projects incurred 
3.28 	through the receipt of federal disaster 
3.29 	assistance.

3.30 | Subd. 4.Grants for Debris Removal and Burial | | | | 2,500,000
3.31 	For grants to counties for costs related to 
3.32 	the burial and removal of debris from rural 
4.1 	residences and farms from the August 2007 
4.2 	flood damage. The commissioner may 
4.3 	require documentation of costs. Grants are 
4.4 	available for debris removal and burial costs 
4.5 	not covered by private insurance or federal 
4.6 	reimbursement. This appropriation is from 
4.7 	the general fund.

4.8 | Sec. 4. TRANSPORTATION | | | |

4.9 | Subdivision 1.Total Appropriation | | | $ | 51,000,000
4.10 	The amounts that may be spent for each 
4.11 	purpose are specified in the following 
4.12 	subdivisions.

4.13 | Subd. 2.Infrastructure Investment Support | | | | 5,000,000
4.14 	From the trunk highway fund.

4.15 | Subd. 3.State Trunk Highways and Bridges | | | | 20,000,000
4.16 	From the bond proceeds account in the trunk 
4.17 	highway fund for the reconstruction and 
4.18 	repair of trunk highways and trunk highway 
4.19 	bridges that are located in the area included 
4.20 	in DR-1717 and that suffered flood-related 
4.21 	damage in 2007.

4.22

4.23

Subd. 4.Local Road and Bridge Rehabilitation 
and Replacement

26,000,000

4.24 	From the state transportation fund, as 
4.25 	provided in Minnesota Statutes, section 
4.26 	174.50, for grants to local governments 
4.27 	for capital costs related to rehabilitation 
4.28 	and replacement of local roads and bridges 
4.29 	damaged or destroyed by flooding in the area 
4.30 	included in DR-1717.
4.31 	A grantee must submit to the commissioner 
4.32 	of transportation final plans for each project 
4.33 	before grant money may be released for the 
5.1 	project. The commissioner shall determine 
5.2 	project priorities, review project plans in 
5.3 	light of those priorities, and, if necessary, 
5.4 	require changes to the plans to ensure the 
5.5 	most prudent use of limited state resources. 
5.6 	If a local government receives federal money 
5.7 	for a project funded under this section, the 
5.8 	local government must repay to the state, for 
5.9 	deposit in the state transportation fund, an 
5.10 	amount equal to the federal funding, up to 
5.11 	the amount of the state grant.
5.12 	For grants under this subdivision, the 
5.13 	requirements of Minnesota Statutes, section 
5.14 	174.50, subdivisions 5, 6, 6a, and 7, are 
5.15 	waived.

5.16 | Sec. 5. NATURAL RESOURCES | | | |

5.17 | Subdivision 1.Total Appropriation | | | $ | 6,700,000
5.18 	The amounts that may be spent for each 
5.19 	purpose are specified in the following 
5.20 	subdivisions.

5.21 | Subd. 2.Facility Damage | | | | 4,200,000
5.22 	From the bond proceeds fund to rehabilitate 
5.23 	and replace state facilities and restore natural 
5.24 	resources in the area included in DR-1717 
5.25 	that were damaged by the floods of August 
5.26 	2007.

5.27 | Subd. 3.Flood Hazard Mitigation  Grants | | | | 2,000,000
5.28 	From the bond proceeds fund for the state 
5.29 	share of flood hazard mitigation grants for 
5.30 	capital improvements to prevent or alleviate 
5.31 	flood damage under Minnesota Statutes, 
5.32 	section 103F.161, in the area included in 
5.33 	DR-1717.
6.1 	The commissioner shall determine project 
6.2 	priorities as appropriate, based on need. 
6.3 	This appropriation may be used to buy out 
6.4 	substantially damaged structures.
6.5 	To the extent that the cost of a project funded 
6.6 	by this appropriation in a given municipality 
6.7 	exceeds two percent of the median household 
6.8 	income in the municipality multiplied by the 
6.9 	number of households in the municipality, 
6.10 	this appropriation is also for the local share 
6.11 	of the project.

6.12 | Subd. 4.Stream Debris Removal | | | | 500,000
6.13 	To remove flood debris from streams 
6.14 	in the area included in DR-1717. This 
6.15 	appropriation is from the general fund.

6.16

6.17

Sec. 6. BOARD OF WATER AND SOIL 
RESOURCES

$

3,000,000

6.18 	To acquire conservation easements from 
6.19 	landowners on marginal lands in the area 
6.20 	included in DR-1717 that were damaged by 
6.21 	the floods of August 2007 in order to protect 
6.22 	soil and water quality and to support fish and 
6.23 	wildlife habitat as provided in Minnesota 
6.24 	Statutes, section 103F.515.
6.25 	The payment maximums for improvements 
6.26 	to the land under Minnesota Statutes, 
6.27 	section 103F.515, subdivision 6, paragraph 
6.28 	(a), clause (1), are waived for permanent 
6.29 	easements acquired in the area included in 
6.30 	DR-1717. The board may waive provisions 
6.31 	of Minnesota Rules, chapter 8400, for 
6.32 	easements acquired in the area included in 
6.33 	DR-1717.
7.1 	Up to 20 percent of this appropriation may be 
7.2 	used by the board to implement the program.

7.3 | Sec. 7. POLLUTION CONTROL AGENCY | | | $ | 1,000,000
7.4 	Notwithstanding Minnesota Statutes, section 
7.5 	115C.08, subdivision 4, this appropriation is 
7.6 	from the petroleum tank release cleanup fund 
7.7 	for grants to safely rehabilitate buildings 
7.8 	if a portion of the rehabilitation cost is 
7.9 	attributable to petroleum contamination or to 
7.10 	buy out property substantially damaged by a 
7.11 	petroleum tank release.
7.12 	This appropriation is available until June 
7.13 	30, 2009. Any unused portion of the 
7.14 	appropriation must be returned to the 
7.15 	petroleum tank release cleanup fund.

7.16

7.17

Sec. 8. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

7.18 | Subdivision 1.Total Appropriation | | | $ | 45,000,000
7.19 	The amounts that may be spent for each 
7.20 	purpose are specified in the following 
7.21 	subdivisions.

7.22 | Subd. 2.Minnesota Investment Fund | | | | 35,000,000
7.23 	For transfer to the Minnesota investment fund 
7.24 	for grants to local units of government for 
7.25 	locally administered grants or loan programs 
7.26 	for businesses directly and adversely affected 
7.27 	by the flood, including businesses that 
7.28 	provide residential, health care, child care, 
7.29 	social, or other services on behalf of the 
7.30 	Department of Human Services to residents 
7.31 	of the area included in DR-1717.
7.32 	Criteria and requirements must be locally 
7.33 	established with the approval of the 
8.1 	commissioner. For the purposes of this 
8.2 	appropriation, Minnesota Statutes, sections 
8.3 	116J.8731, subdivisions 3, 4, 5, and 7; 
8.4 	116J.993; 116J.994; and 116J.995, are 
8.5 	waived. Businesses that receive grants or 
8.6 	loans from this appropriation must set goals 
8.7 	for jobs retained and wages paid within the 
8.8 	area included in DR-1717.
8.9 	Before any grants under this subdivision are 
8.10 	awarded to a local unit of government, the 
8.11 	commissioner of employment and economic 
8.12 	development shall report to the chairs of the 
8.13 	senate finance and house of representatives 
8.14 	ways and means committees the criteria and 
8.15 	requirements to be used by local units of 
8.16 	government in the grant or loan programs 
8.17 	they will administer. This appropriation is 
8.18 	from the general fund.

8.19 | Subd. 3.Public Infrastructure | | | | 10,000,000
8.20 	From the bond proceeds fund to the public 
8.21 	facilities authority for grants to local units 
8.22 	of government to assist with the cost of 
8.23 	rehabilitation and replacement of publicly 
8.24 	owned infrastructure, including storm 
8.25 	sewers, wastewater and municipal utility 
8.26 	service, and drinking water systems for any 
8.27 	costs incurred on or after August 18, 2007.
8.28 	For the purposes of this appropriation, 
8.29 	criteria, limitations, and repayment 
8.30 	requirements in Minnesota Statutes, sections 
8.31 	446A.07, 446A.072, and 446A.081, are 
8.32 	waived.

8.33 | Sec. 9. HOUSING FINANCE | | | |

8.34 | Subdivision 1.Total Appropriation | | | $ | 18,000,000
9.1 	The appropriations in this section are from 
9.2 	the general fund, for transfer to the housing 
9.3 	development fund for the programs specified 
9.4 	in this section. The amounts that may be 
9.5 	spent for each purpose are specified in the 
9.6 	following subdivisions.

9.7

9.8

Subd. 2.Economic Development and Housing 
Challenge

16,000,000

9.9 	For the economic development and housing 
9.10 	challenge program under Minnesota Statutes, 
9.11 	section 462A.33, for housing assistance in 
9.12 	the area included in DR-1717.
9.13 	For assistance under this subdivision, 
9.14 	the requirements of Minnesota Statutes, 
9.15 	section 462A.33, subdivisions 3 and 5, 
9.16 	and Minnesota Rules, part 4900.3632, are 
9.17 	waived.

9.18 | Subd. 3.Capacity Building Grants | | | | 1,000,000
9.19 	For grants under Minnesota Statutes, section 
9.20 	462A.21, subdivision 3b, to local units of 
9.21 	government, including regional consortia, 
9.22 	in the area included in DR-1717 to assess 
9.23 	housing and related needs and to develop and 
9.24 	implement community and regional plans to 
9.25 	meet those needs and to provide capacity to 
9.26 	implement recovery plans.

9.27 | Subd. 4.Disaster Relief Contingency Fund | | | | 1,000,000
9.28 	To reimburse the disaster relief contingency 
9.29 	fund established under Minnesota Statutes, 
9.30 	section 462A.21, subdivision 29, for amounts 
9.31 	spent in response to the flooding of August 
9.32 	2007 in the area included in DR-1717.

9.33

9.34

Sec. 10. MINNESOTA HISTORICAL 
SOCIETY

$

250,000

10.1 	For historic site cleanup, repair, and 
10.2 	replacement costs related to the floods of 
10.3 	August 2007. This appropriation is from the 
10.4 	general fund.

10.5 | Sec. 11. EDUCATION | | | |

10.6 | Subdivision 1.Total Appropriation | | | $ | 584,000
10.7 	The appropriations in this section are from 
10.8 	the general fund. The amounts that may be 
10.9 	spent for each purpose are specified in the 
10.10 	following subdivisions.

10.11

10.12

Subd. 2.Independent School District No. 239, 
Rushford-Peterson

10.13 | (a) Flood Enrollment Impact Aid | | | | 89,000
10.14 	The commissioner of education shall pay to 
10.15 	the school district flood enrollment impact 
10.16 	aid equal to $5,394 times the number of 
10.17 	pupils lost as a result of the floods of August 
10.18 	2007. The district must provide to the 
10.19 	commissioner of education documentation 
10.20 	of the number of pupils in average daily 
10.21 	membership lost as a result of the flood.

10.22 | (b) Disaster Relief Facilities Grant | | | | 250,000
10.23 	For facilities cleanup, repair, and replacement 
10.24 	costs related to the floods of August 2007 not 
10.25 	covered by the district's insurance settlement 
10.26 	or through Federal Emergency Management 
10.27 	Agency payments. The commissioner of 
10.28 	education may request the school district 
10.29 	to provide necessary information before 
10.30 	awarding a grant.

10.31 | (c) Pupil Transportation Aid | | | | 40,000
11.1 	For increased costs associated with 
11.2 	transporting students as a result of the floods 
11.3 	of August 2007.

11.4

11.5

Subd. 3.Independent School District No. 238, 
Mabel-Canton

50,000

11.6 	For facilities cleanup, repair, and replacement 
11.7 	costs related to the floods of August 2007 not 
11.8 	covered by the district's insurance settlement 
11.9 	or through Federal Emergency Management 
11.10 	Agency payments. The commissioner of 
11.11 	education may request the school district 
11.12 	to provide necessary information before 
11.13 	awarding a grant.

11.14

11.15

Subd. 4.Independent School District No. 294, 
Houston

60,000

11.16 	For facilities cleanup, repair, and replacement 
11.17 	costs related to the floods of August 2007 not 
11.18 	covered by the district's insurance settlement 
11.19 	or through Federal Emergency Management 
11.20 	Agency payments. The commissioner of 
11.21 	education may request the school district 
11.22 	to provide necessary information before 
11.23 	awarding a grant.

11.24

11.25

Subd. 5.Independent School District No. 857, 
Lewiston

5,000

11.26 	For increased costs associated with 
11.27 	transporting students as a result of the floods 
11.28 	of August 2007.

11.29

11.30

Subd. 6.Disaster Relief Facilities Grants to 
Other Districts

90,000

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

12.6 | Sec. 12. REVENUE | | | $ | 1,000,000
12.7 	To reimburse counties for property tax 
12.8 	abatements on flooded property under section 
12.9 	18.

12.10 | Sec. 13. BOND SALE EXPENSES | | | $ | 75,000
12.11 	To the commissioner of finance for bond sale 
12.12 	expenses under Minnesota Statutes, section 
12.13 	16A.641, subdivision 8.

12.14 | Appropriations by Fund
12.15 | Bond proceeds | | 55,000
12.16 | Trunk highway | | 20,000

12.17 	Sec. 14. BOND SALE AUTHORIZATION.
 12.18 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
12.19 	from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the 
12.20 	state in an amount up to $29,255,000 in the manner, upon the terms, and with the effect 
12.21 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
12.22 	Constitution, article XI, sections 4 to 7.
12.23 		Subd. 2.Trunk highway fund. To provide the money appropriated in this act from 
12.24 	the bond proceeds account in the trunk highway fund, the commissioner of finance shall 
12.25 	sell and issue bonds of the state in an amount up to $20,020,000 in the manner, upon the 
12.26 	terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
12.27 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amount 
12.28 	requested by the commissioner of transportation. The proceeds of the bonds, except 
12.29 	accrued interest and any premium received on the sale of the bonds, must be credited to a 
12.30 	bond proceeds account in the trunk highway fund.
12.31 		Subd. 3.Transportation fund. To provide the money appropriated in this act from 
12.32 	the state transportation fund, the commissioner of finance shall sell and issue bonds of the 
12.33 	state in an amount up to $26,000,000 in the manner, upon the terms, and with the effect 
13.1 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
13.2 	Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest 
13.3 	and any premium received on the sale of the bonds, must be credited to a bond proceeds 
13.4 	account in the state transportation fund.

13.5 	Sec. 15. WAIVERS AUTHORIZED.
 13.6 		Subdivision 1.Flood hazard mitigation grants; Department of Natural 
13.7 	Resources. The maximum grant award under Minnesota Statutes, section 103F.161, 
13.8 	subdivision 2, is waived for grants for the area included in DR-1717.
13.9 		Subd. 2.State erosion, sediment, and water quality control cost-share program; 
13.10 	Board of Water and Soil Resources. The Board of Water and Soil Resources may 
13.11 	waive the requirements for cost-share contracts under Minnesota Rules, parts 8400.0900, 
13.12 	8400.1405, and 8400.1600, in the affected geographic area included in DR-1717. The 
13.13 	waiver applies to all existing and future contracts to address critical conservation problems 
13.14 	resulting from flooding that are funded in whole or in part with state money, to the extent 
13.15 	that combined federal and state funding does not exceed 100 percent. All existing state 
13.16 	cost-share grant agreements in the area included in DR-1717 are extended to June 30, 2009. 

13.17 	Sec. 16. USE OF NATIONAL EMPLOYMENT GRANT.
 13.18 	To ensure efficient use of disaster money, contractors working on projects funded 
13.19 	under this act should, to the extent practicable, hire employees who are available through 
13.20 	a grant, if any, from the United States Department of Labor to the Department of 
13.21 	Employment and Economic Development for assistance for the area included in DR-1717.

13.22 	Sec. 17. HUMAN SERVICES PROVIDER PAYMENTS CONTINUED.
 13.23 	The commissioner of human services may continue, until March 31, 2008, to 
13.24 	reimburse parties under contract with the commissioner of human services as of August 
13.25 	18, 2007, for residential, health care, child care, social, or other services provided on 
13.26 	behalf of the Department of Human Services to a resident of the area included in DR-1717, 
13.27 	notwithstanding that the resident has been compelled by the floods of August 2007 to 
13.28 	relocate outside the party's service area. A party seeking reimbursement must apply to the 
13.29 	commissioner on a form prescribed by the commissioner and certify that the party intends 
13.30 	to resume normal operations as soon as recovery from the flood damage permits.

13.31 	Sec. 18. PROPERTY TAX ABATEMENTS FOR FLOODED PROPERTY; 
13.32 	REIMBURSEMENT.
 14.1 		Subdivision 1.Authorization. Notwithstanding the requirements of Minnesota 
14.2 	Statutes, section 375.192, the county board of a qualified county may grant abatements 
14.3 	of 50 percent of the taxes, including the tax imposed under Minnesota Statutes, section 
14.4 	275.025, but excluding special assessments, on eligible property for taxes payable in 
14.5 	2007 as provided in this section. The owner of the property is not required to apply for 
14.6 	the abatement.
14.7 		Subd. 2.Definitions. (a) As used in this section, the terms defined in this 
14.8 	subdivision have the meanings given them.
14.9 	(b) "Qualified county" means a county located in the area included in DR-1717.
14.10 	(c) "Eligible property" means a parcel of taxable property located in a qualified 
14.11 	county that contains a structure that has been determined by the assessor to have lost over 
14.12 	50 percent of its estimated market value due to flooding and flood damage. In the case of 
14.13 	agricultural property, the abatement is limited to: (1) the taxes on the parcel attributable to 
14.14 	the value of the house, garage, and surrounding one acre, if the house has lost over 50 
14.15 	percent of its estimated market value, and (2) the tax attributable to the value of any farm 
14.16 	buildings and structures that have lost over 50 percent of their estimated market value.
14.17 		Subd. 3.County administration. (a) As soon as practicable, local and county 
14.18 	assessors in qualified counties shall notify the county board and property owners of parcels 
14.19 	of property eligible for the abatement under this section.
14.20 	(b) By September 30, 2007, each qualifying county shall notify the commissioner of 
14.21 	revenue of the amount of flood-related market value loss in the county. The commissioner 
14.22 	must notify each county of its apportioned share of the reimbursement for abatements as 
14.23 	determined under subdivision 4 by October 7, 2007.
14.24 	(c) If the county board grants an abatement under this section to a property for which 
14.25 	over 50 percent of the total property tax payable in 2007 has been paid before the granting 
14.26 	of the abatement, the amount paid in excess of 50 percent must be refunded.
14.27 	(d) The county must grant any abatements under this section by October 31, 2007, 
14.28 	and must notify the commissioner of revenue of the total amount of abatements granted.
14.29 	(e) The commissioner of revenue must determine the amount of and pay the 
14.30 	reimbursements required under subdivision 4 by November 15, 2007.
14.31 		Subd. 4.Reimbursement apportioned. The commissioner of revenue shall 
14.32 	reimburse counties for property taxes abated under this section, up to the amount 
14.33 	appropriated for that purpose and apportioned to the qualified counties. The reimbursement 
14.34 	must be only for property taxes imposed by the county and other local taxing jurisdictions 
14.35 	within the county that are actually abated under this section. The commissioner shall 
14.36 	apportion the appropriation based on the amount of flood-related market value loss in each 
15.1 	county. The total reimbursement, including the amount of the state tax imposed under 
15.2 	Minnesota Statutes, section 275.025, must not exceed each county's apportioned amount.

15.3 	Sec. 19. 2007 FLOOD LOSS; CITY REPLACEMENT AID.
15.4 		Subdivision 1.Flood net tax capacity loss. The county assessor of each qualified 
15.5 	county shall compute a hypothetical city taxable net tax capacity for each city in the 
15.6 	county based upon market values for assessment year 2008 and the class rates that were in 
15.7 	effect for assessment year 2007. The amount, if any, by which the assessment year 2007 
15.8 	total taxable net tax capacity of the city exceeds the hypothetical taxable net tax capacity 
15.9 	of the city is the city's "flood net tax capacity loss." A county assessor of a qualified county 
15.10 	that contains a city that has a flood net tax capacity loss that exceeds five percent of its 
15.11 	assessment year 2007 total taxable net tax capacity shall certify the city's flood net tax 
15.12 	capacity loss to the commissioner of revenue by August 1, 2008.
15.13 	As used in this section, a "qualified county" is a county located within the area 
15.14 	included in DR-1717.
15.15 		Subd. 2.Flood loss aid. In 2009, each city with a flood net tax capacity loss equal 
15.16 	to or greater than five percent of its assessment year 2007 total taxable net tax capacity is 
15.17 	entitled to flood loss aid equal to the flood net tax capacity loss times the city's average 
15.18 	local tax rate for taxes payable in 2008.
15.19 		Subd. 3.Duties of commissioner. The commissioner of revenue shall determine 
15.20 	each city's aid amount under this section. The commissioner shall notify each eligible city 
15.21 	of its flood loss aid amount by August 15, 2008. The commissioner shall make payments 
15.22 	to each city after July 1, and before July 20, 2009.
15.23 		Subd. 4.Optional city expenditure. A city that receives aid under this section 
15.24 	may choose to expend a portion of the aid received for repair of county roads located 
15.25 	within the city.
15.26 		Subd. 5.Appropriation. The amount necessary to pay the aid amounts under this 
15.27 	section in fiscal year 2010, for calendar year 2009, is appropriated to the commissioner of 
15.28 	revenue from the general fund.

15.29 	Sec. 20. DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS 
15.30 	PROPERTY TAXES.
 15.31 	(a) Notwithstanding Minnesota Statutes, section 279.01, subdivision 1, a penalty 
15.32 	does not accrue if, because of the 2007 floods, a taxpayer is unable to pay the second 
15.33 	half of the payable 2007 property taxes on class 3a or 3b property, as classified under 
15.34 	Minnesota Statutes, section 273.13, subdivision 24, that is in a county in the area included 
16.1 	in DR-1717. To qualify for this extended due date for the second half payment, the 
16.2 	taxpayer must have paid the first half of the payable 2007 taxes by May 16, 2007, and 
16.3 	must pay the second half of the payable 2007 taxes by May 15, 2008.
16.4 	(b) If the second half of the payable 2007 property taxes is paid after May 15, 2008, 
16.5 	then all penalties that would have occurred since the due date under Minnesota Statutes, 
16.6 	section 279.01, subdivision 1, must be charged on the amount of the unpaid tax.
16.7 	(c) The property taxpayer shall attach to the payment a statement that the property is 
16.8 	located in the area included in DR-1717 and qualifies for an extension under this section.

16.9 	Sec. 21. Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:
16.10 		Subd. 14.Agricultural homesteads; special provisions. (a) Real estate of less than 
16.11 	ten acres that is the homestead of its owner must be classified as class 2a under section 
16.12 	273.13, subdivision 23, paragraph (a), if:
16.13 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
16.14 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
16.15 	Service, or (iii) land administered by the Department of Natural Resources on which in 
16.16 	lieu taxes are paid under sections 477A.11 to 477A.14;
16.17 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 
16.18 	20 acres;
16.19 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
16.20 	combination of townships or cities from the homestead; and
16.21 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal 
16.22 	to at least 50 percent of the market value of the house, garage, and one acre of land.
16.23 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
16.24 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
16.25 	properties, as long as the homestead remains under the same ownership, the owner owns a 
16.26 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
16.27 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
16.28 	to property that qualified under this paragraph for the 1998 assessment.
16.29 	(b)(i) Agricultural property consisting of at least 40 acres shall be classified as the 
16.30 	owner's homestead, to the same extent as other agricultural homestead property, if all 
16.31 	of the following criteria are met:
16.32 	(1) the owner, the owner's spouse, the son or daughter of the owner or owner's 
16.33 	spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively 
16.34 	farming the agricultural property, either on the person's own behalf as an individual or 
16.35 	on behalf of a partnership operating a family farm, family farm corporation, joint family 
17.1 	farm venture, or limited liability company of which the person is a partner, shareholder, or 
17.2 	member;
17.3 	(2) both the owner of the agricultural property and the person who is actively 
17.4 	farming the agricultural property under clause (1), are Minnesota residents;
17.5 	(3) neither the owner nor the spouse of the owner claims another agricultural 
17.6 	homestead in Minnesota; and
17.7 	(4) neither the owner nor the person actively farming the property lives farther 
17.8 	than four townships or cities, or a combination of four townships or cities, from the 
17.9 	agricultural property, except that if the owner or the owner's spouse is required to live in 
17.10 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
17.11 	the agricultural property, may live more than four townships or cities, or combination of 
17.12 	four townships or cities from the agricultural property.
17.13 	The relationship under this paragraph may be either by blood or marriage.
17.14 	(ii) Real property held by a trustee under a trust is eligible for agricultural homestead 
17.15 	classification under this paragraph if the qualifications in clause (i) are met, except that 
17.16 	"owner" means the grantor of the trust.
17.17 	(iii) Property containing the residence of an owner who owns qualified property 
17.18 	under clause (i) shall be classified as part of the owner's agricultural homestead, if that 
17.19 	property is also used for noncommercial storage or drying of agricultural crops.
17.20 	(c) Noncontiguous land shall be included as part of a homestead under section 
17.21 	273.13, subdivision 23, paragraph (a), only if the homestead is classified as class 2a 
17.22 	and the detached land is located in the same township or city, or not farther than four 
17.23 	townships or cities or combination thereof from the homestead. Any taxpayer of these 
17.24 	noncontiguous lands must notify the county assessor that the noncontiguous land is part of 
17.25 	the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer 
17.26 	must also notify the assessor of the other county.
17.27 	(d) Agricultural land used for purposes of a homestead and actively farmed by a 
17.28 	person holding a vested remainder interest in it must be classified as a homestead under 
17.29 	section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, 
17.30 	any other dwellings on the land used for purposes of a homestead by persons holding 
17.31 	vested remainder interests who are actively engaged in farming the property, and up to 
17.32 	one acre of the land surrounding each homestead and reasonably necessary for the use of 
17.33 	the dwelling as a home, must also be assessed class 2a.
17.34 	(e) Agricultural land and buildings that were class 2a homestead property under 
17.35 	section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain 
17.36 	classified as agricultural homesteads for subsequent assessments if:
18.1 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
18.2 	homestead as a result of the April 1997 floods;
18.3 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, 
18.4 	or Wilkin;
18.5 	(3) the agricultural land and buildings remain under the same ownership for the 
18.6 	current assessment year as existed for the 1997 assessment year and continue to be used 
18.7 	for agricultural purposes;
18.8 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 
18.9 	miles of one of the parcels of agricultural land that is owned by the taxpayer; and
18.10 	(5) the owner notifies the county assessor that the relocation was due to the 1997 
18.11 	floods, and the owner furnishes the assessor any information deemed necessary by the 
18.12 	assessor in verifying the change in dwelling. Further notifications to the assessor are not 
18.13 	required if the property continues to meet all the requirements in this paragraph and any 
18.14 	dwellings on the agricultural land remain uninhabited.
18.15 	(f) Agricultural land and buildings that were class 2a homestead property under 
18.16 	section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain 
18.17 	classified agricultural homesteads for subsequent assessments if:
18.18 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
18.19 	homestead as a result of damage caused by a March 29, 1998, tornado;
18.20 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, 
18.21 	LeSueur, Nicollet, Nobles, or Rice;
18.22 	(3) the agricultural land and buildings remain under the same ownership for the 
18.23 	current assessment year as existed for the 1998 assessment year;
18.24 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles 
18.25 	of one of the parcels of agricultural land that is owned by the taxpayer; and
18.26 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
18.27 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
18.28 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
18.29 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
18.30 	are not required if the property continues to meet all the requirements in this paragraph 
18.31 	and any dwellings on the agricultural land remain uninhabited.
18.32 	(g) Agricultural property consisting of at least 40 acres of a family farm corporation, 
18.33 	joint family farm venture, family farm limited liability company, or partnership operating 
18.34 	a family farm as described under subdivision 8 shall be classified homestead, to the same 
18.35 	extent as other agricultural homestead property, if all of the following criteria are met:
19.1 	(1) a shareholder, member, or partner of that entity is actively farming the 
19.2 	agricultural property;
19.3 	(2) that shareholder, member, or partner who is actively farming the agricultural 
19.4 	property is a Minnesota resident;
19.5 	(3) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
19.6 	member, or partner claims another agricultural homestead in Minnesota; and
19.7 	(4) that shareholder, member, or partner does not live farther than four townships or 
19.8 	cities, or a combination of four townships or cities, from the agricultural property.
19.9 	Homestead treatment applies under this paragraph for property leased to a family 
19.10 	farm corporation, joint farm venture, limited liability company, or partnership operating a 
19.11 	family farm if legal title to the property is in the name of an individual who is a member, 
19.12 	shareholder, or partner in the entity.
19.13 	(h) To be eligible for the special agricultural homestead under this subdivision, an 
19.14 	initial full application must be submitted to the county assessor where the property is 
19.15 	located. Owners and the persons who are actively farming the property shall be required 
19.16 	to complete only a one-page abbreviated version of the application in each subsequent 
19.17 	year provided that none of the following items have changed since the initial application:
19.18 	(1) the day-to-day operation, administration, and financial risks remain the same;
19.19 	(2) the owners and the persons actively farming the property continue to live within 
19.20 	the four townships or city criteria and are Minnesota residents;
19.21 	(3) the same operator of the agricultural property is listed with the Farm Service 
19.22 	Agency;
19.23 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
19.24 	(5) the property's acreage is unchanged; and
19.25 	(6) none of the property's acres have been enrolled in a federal or state farm program 
19.26 	since the initial application.
19.27 	The owners and any persons who are actively farming the property must include 
19.28 	the appropriate Social Security numbers, and sign and date the application. If any of the 
19.29 	specified information has changed since the full application was filed, the owner must 
19.30 	notify the assessor, and must complete a new application to determine if the property 
19.31 	continues to qualify for the special agricultural homestead. The commissioner of revenue 
19.32 	shall prepare a standard reapplication form for use by the assessors.
19.33 	(i) Agricultural land and buildings that were class 2a homestead property under 
19.34 	section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain 
19.35 	classified agricultural homesteads for subsequent assessments if:
20.1 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
20.2 	homestead as a result of damage caused by the August 2007 floods;
20.3 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, 
20.4 	Steele, Wabasha, or Winona;
20.5 	(3) the agricultural land and buildings remain under the same ownership for the 
20.6 	current assessment year as existed for the 2007 assessment year;
20.7 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles 
20.8 	of one of the parcels of agricultural land that is owned by the taxpayer; and
20.9 	(5) the owner notifies the county assessor that the relocation was due to the August 
20.10 	2007 floods, and the owner furnishes the assessor any information deemed necessary by 
20.11 	the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
20.12 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
20.13 	are not required if the property continues to meet all the requirements in this paragraph 
20.14 	and any dwellings on the agricultural land remain uninhabited.

20.15 	Sec. 22. Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision 
20.16 	to read:
20.17 		Subd. 11.Waiver for disasters and emergencies. A county or local government in 
20.18 	the area included in DR-1717 may petition the commissioner in writing to waive some or 
20.19 	all of the requirements of this section to the extent that their performance or applicability 
20.20 	is significantly hindered by the disaster or emergency. The commissioner may grant the 
20.21 	waiver for truth-in-taxation estimates for 2007 payable 2008.

20.22 	Sec. 23. EFFECTIVE DATE.
 20.23 	Except as otherwise specified, this act is effective the day following final enactment.

20.24 	ARTICLE 2
20.25 	I-35W BRIDGE COLLAPSE

20.26 	Section 1. PUBLIC SAFETY.
 20.27 	$2,000,000 is appropriated from the general fund to the commissioner of public 
20.28 	safety for fiscal year 2008 for the state match for federal disaster assistance to political 
20.29 	subdivisions under Minnesota Statutes, section 12.221, for the I-35W bridge collapse.
20.30 	This is a onetime appropriation.

20.31 	Sec. 2. TRANSPORTATION.
 21.1 	$53,237,000 in federal grants and aids for the I-35W bridge collapse is appropriated 
21.2 	to the commissioner of transportation for the purposes specified in the federal grant. This 
21.3 	appropriation is in addition to appropriations under Laws 2007, chapter 143, article 1, 
21.4 	section 3.

21.5 	Sec. 3. EFFECTIVE DATE.
 21.6 	This article is effective the day following final enactment.

21.7 	ARTICLE 3
21.8 	OTHER STATEWIDE DISASTER RELIEF

21.9 	Section 1. FORAGE AND FEED GRANTS.
 21.10 	$2,000,000 is appropriated from the general fund to the commissioner of agriculture 
21.11 	for fiscal year 2008 for grants to Minnesota livestock producers who have lost forage or 
21.12 	other feed due to flood or drought. For the purposes of flood relief, eligible producers must 
21.13 	operate a livestock operation and corresponding acreage in Dodge, Fillmore, Houston, 
21.14 	Olmsted, Steele, Wabasha, or Winona County. For the purposes of drought relief, eligible 
21.15 	producers must operate a livestock operation and corresponding acreage in counties that 
21.16 	have been classified all or in part as D3 by the U.S. Drought Monitor in 2007. The 
21.17 	commissioner must make payments to livestock producers on a per head animal basis up 
21.18 	to a maximum of $5,000 for a single producer or entity.
21.19 	Applicants must demonstrate that they have incurred forage or feed losses directly 
21.20 	attributable to either flood or drought in 2007 and must provide documentation of the 
21.21 	losses as required by the commissioner. The commissioner, with the approval of the chairs 
21.22 	of the policy and finance agricultural committees of the legislature, must develop a claim 
21.23 	application, payment rates, verification procedures, and payment delivery protocols. 
21.24 	All applications for grants under this section must be received by the commissioner 
21.25 	on or before December 13, 2007. The commissioner must distribute grants to eligible 
21.26 	applicants as a pro rata amount of the total appropriation. Applications and eligibilities 
21.27 	under this section are not subject to rules under Minnesota Statutes, chapter 14. 

21.28 	Sec. 2. RURAL FINANCE AUTHORITY.
 21.29 	$500,000 is appropriated from the general fund to the Rural Finance Authority for 
21.30 	the disaster recovery loan program under Minnesota Statutes, section 41B.047, for the 
21.31 	purpose of assisting eligible farmers in a designated agricultural disaster area.
21.32 	This is a onetime appropriation.

22.1 	Sec. 3. CROOKSTON FLOOD AID.
 22.2 	$200,000 is appropriated from the general fund in each of the fiscal years 2008 
22.3 	and 2009 to the commissioner of revenue to be paid to the city of Crookston for flood 
22.4 	recovery and mitigation issues.
22.5 	This is a onetime appropriation.

22.6 	Sec. 4. BROWNS VALLEY FLOOD AID.
 22.7 	$100,000 is appropriated from the general fund in each of the fiscal years 2008 and 
22.8 	2009 to the commissioner of revenue to be paid to the city of Browns Valley to assist in 
22.9 	recovery from flooding that occurred March 14, 2007.
22.10 	This is a onetime appropriation.

22.11 	Sec. 5. GRAND MARAIS AND COOK COUNTY FIRE AID.
 22.12 	$500,000 is appropriated from the general fund in each of the fiscal years 2008 and 
22.13 	2009 to the commissioner of revenue to be paid to the city of Grand Marais and to Cook 
22.14 	County for costs related to the Ham Lake fire of 2007. The aid provided in this section 
22.15 	must be used for nonreimbursed, uninsured costs of repairing roads and rights-of-way; 
22.16 	sprinkler systems for structures; costs incurred by volunteer fire departments, including 
22.17 	replacement of portable sprinkler systems, and repair of vehicles; debris removal and 
22.18 	disposal costs; erosion control and water quality protection assistance and coordination; 
22.19 	repair, replacement, and improvement of communications equipment and infrastructure 
22.20 	for the city and county public safety and human services network and emergency response 
22.21 	centers. The total amount of the aid must be divided between the city of Grand Marais and 
22.22 	Cook County in proportion to their amounts of eligible costs.

22.23 	Sec. 6. Minnesota Statutes 2006, section 273.123, is amended to read:
22.24 	273.123 REASSESSMENT OF HOMESTEAD PROPERTY DAMAGED BY A 
22.25 	DISASTER.
22.26 		Subdivision 1.Definitions. For purposes of this section (a) "disaster or emergency" 
22.27 	means
22.28 	(1) a major disaster as determined by the president of the United States;
22.29 	(2) a natural disaster as determined by the secretary of agriculture;
22.30 	(3) a disaster as determined by the administrator of the small business administration; 
22.31 	or
22.32 	(4) a tornado, storm, flood, earthquake, landslide, explosion, fire or similar 
22.33 	catastrophe, as a result of which a local emergency is declared pursuant to section 12.29. 
23.1 	(b) "disaster or emergency area" means an area
23.2 	(1) in which the president of the United States, the secretary of agriculture, or the 
23.3 	administrator of the small business administration has determined that a disaster exists 
23.4 	pursuant to federal law or in which a local emergency has been declared pursuant to 
23.5 	section 12.29; and 
23.6 	(2) for which an application by the local unit of government requesting property 
23.7 	tax relief under this section has been received by the governor and approved by the 
23.8 	Executive Council.
23.9 	(c) "homestead property" means homestead dwelling that is classified as class 1, or 
23.10 	2a property or a manufactured home or sectional home used as a homestead and taxed 
23.11 	pursuant to section 273.125, subdivision 8, paragraph (b), (c), or (d). 
23.12 		Subd. 2.Reassessment of homestead property. The county assessor shall reassess 
23.13 	all homestead property located within a disaster or emergency area which is physically 
23.14 	damaged by the disaster or emergency ~~and shall adjust the valuation~~for purposes of 
23.15 	computing the credits under subdivision 4 for taxes payable the following year to reflect 
23.16 	the loss in market value caused by the damage ~~as follows: Subtract the market value of~~ 
23.17 	~~the property as reassessed from the market value of the property as assessed for January~~ 
23.18 	~~1 of the year in which the disaster or emergency occurred; multiply the remainder by a~~ 
23.19 	~~fraction, the numerator of which is the number of full months remaining in the year on the~~ 
23.20 	~~date the disaster or emergency occurred, and the denominator of which is 12; subtract the~~ 
23.21 	~~product of the calculation from the market value of the property as assessed for January 1~~ 
23.22 	~~of the year in which the disaster or emergency occurred; the remainder is the estimated~~ 
23.23 	~~market value to be used for taxes payable the following year~~. The assessor shall report 
23.24 	to the county auditor the net tax capacity based on the assessment of January ~~1~~ 2 of the 
23.25 	year in which the disaster or emergency occurred and the net tax capacity based on the 
23.26 	reassessment made pursuant to this subdivision.
23.27 		Subd. 2a.Application requirements. A request for property tax relief shall be 
23.28 	considered by the Executive Council only if the following requirements are met by the 
23.29 	local unit of government submitting the request:
23.30 	(1) a completed disaster survey shall be included with the request;
23.31 	(2) the average dollar amount of damage for the homes which are damaged and 
23.32 	located within the geographic boundaries of the applicant shall be $5,000 or more; and
23.33 	(3) either (a) at least 25 homes located within the geographic boundaries of the 
23.34 	applicant must have been damaged or destroyed; or (b) the total dollar amount of damage 
23.35 	to all of the damaged homes located within the geographic boundaries of the applicant 
24.1 	shall be equal to at least one percent of the total market value of all homestead property 
24.2 	located within the geographic boundaries of the applicant.
24.3 		Subd. 3.Computation of local tax rates. When computing local tax rates, the 
24.4 	county auditor shall use the valuation reported by the assessor for the assessment made on 
24.5 	January ~~1~~ 2 of the year in which the disaster or emergency occurred.
24.6 		Subd. 4.Credit provided; state reimbursement. The county auditor shall 
24.7 	calculate the tax on the property described in subdivision 2 based on the assessment 
24.8 	made on January 2 of the year in which the disaster or emergency occurred. The county 
24.9 	auditor shall also calculate the tax on the property described in subdivision 2 based on 
24.10 	the reassessed net tax capacity determined under subdivision 2. The difference between 
24.11 	the tax determined on the January 2 ~~gross~~ net tax capacity and the tax ~~actually payable~~
24.12 	based on the reassessed ~~gross~~ net tax capacity determined under subdivision 2 shall be 
24.13 	provided as a credit to the taxpayer and shall be reimbursed to each taxing jurisdiction 
24.14 	in which the damaged property is located. The amount shall be certified by the county 
24.15 	auditor and reported to the commissioner of revenue. The commissioner shall make the 
24.16 	payments to the taxing jurisdictions, other than school districts, containing the property 
24.17 	at the time distributions are made under section 473H.10, subdivision 3, in the same 
24.18 	proportion that the ad valorem tax is distributed. 
24.19 		Subd. 5.Computation of credits. The amounts of any credits or tax relief which 
24.20 	reduce the gross tax shall be computed upon the reassessed gross tax capacity determined 
24.21 	under subdivision 2. For purposes of the property tax refund, property taxes payable, as 
24.22 	defined in section 290A.03, subdivision 13, and net property taxes payable, as defined 
24.23 	in section 290A.04, subdivision 2d, shall be computed upon the reassessed gross tax 
24.24 	capacity determined under subdivision 2. 
24.25 		Subd. 6.Appropriation. There is annually appropriated from the general fund 
24.26 	to the commissioner of revenue an amount necessary to make the payments required 
24.27 	by this section.
24.28 		Subd. 7.Local option; other property. (a) The owner of homestead property 
24.29 	~~not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5~~ or of 
24.30 	nonhomestead property may receive a reduction in the amount of taxes payable on the 
24.31 	property for the year in which the destruction occurs, and the owner of homestead 
24.32 	property not qualifying for an adjustment in valuation under subdivisions 1 to 5 or of 
24.33 	nonhomestead property may receive a reduction in the amount of taxes payable on the 
24.34 	property in the following year if:
25.1 	~~(a)~~ (1) 50 percent or more of the homestead dwelling or other structure, as 
25.2 	established by the county assessor, is unintentionally or accidentally destroyed and the 
25.3 	homestead is uninhabitable or the other structure is not usable;
25.4 	~~(b)~~ (2) the owner of the property makes written application to the county assessor as 
25.5 	soon as practical after the damage has occurred; and
25.6 	~~(c)~~ (3) the owner of the property makes written application to the county board.
25.7 	The county board may grant a reduction in the amount of property tax which the 
25.8 	owner must pay on the qualifying property in the year of destruction and in the following 
25.9 	year. Any reduction in the amount of tax payable which is authorized by county board 
25.10 	action shall be calculated based upon the number of months that the home is uninhabitable 
25.11 	or the other structure is unusable~~.~~, unless the destruction occurred as a result of a disaster 
25.12 	or emergency and is in a disaster or emergency area, in which case the reduction may 
25.13 	reduce the tax to the net tax capacity based on a reassessed value multiplied by the local 
25.14 	tax rate. If the reduction is computed based on the number of months that the home 
25.15 	is uninhabitable or the other structure is unusable, the amount of net tax due from the 
25.16 	taxpayer shall be multiplied by a fraction, the numerator of which is the number of months 
25.17 	the dwelling was occupied by that taxpayer, or the number of months the other structure 
25.18 	was used by the taxpayer, and the denominator of which is 12. For purposes of this 
25.19 	subdivision, if a structure is occupied or used for a fraction of a month, it is considered a 
25.20 	month. "Net tax" is defined as the amount of tax after the subtraction of all of the state 
25.21 	paid property tax credits. If application is made following payment of all property taxes 
25.22 	due for the year of destruction, the amount of the reduction granted by the county board 
25.23 	shall be refunded to the taxpayer by the county treasurer as soon as practical.
25.24 	Any reductions or refunds approved by the county board shall not be subject to 
25.25 	approval by the commissioner of revenue.
25.26 	The county board may levy in the following year the amount of tax dollars lost to the 
25.27 	county government as a result of the reductions granted pursuant to this subdivision.
25.28 	(b) In the case of a disaster or emergency, the county auditor shall certify 
25.29 	the reductions determined under paragraph (a) to the commissioner of revenue for 
25.30 	reimbursement to each taxing jurisdiction in which the damaged property is located. The 
25.31 	commissioner shall make the payments to the taxing jurisdictions containing the property, 
25.32 	other than school districts, at the time distributions are made under section 473H.10, 
25.33 	subdivision 3, in the same proportion that the ad valorem tax is distributed.

25.34 	Sec. 7. TEMPORARY WAIVER OF FEES, ASSESSMENTS, OR TAXES.
 26.1 	Notwithstanding any law to the contrary, for fiscal years 2007 and 2008, an agency, 
26.2 	with the approval of the governor, may waive fees that would otherwise be charged for 
26.3 	agency services. The waiver of fees must be confined to areas affected by flooding 
26.4 	within counties included in a federal disaster declaration and to the minimum periods of 
26.5 	time necessary to deal with the emergency situation. The agency must promptly report 
26.6 	the reasons for and the impact of any suspended fees to the chairs of the legislative 
26.7 	committees that oversee the policy and budget of the agency.
26.8 	This section expires December 31, 2007.

26.9 	Sec. 8. EFFECTIVE DATE.
 26.10 	This article is effective the day following final enactment.