HF 2701

2nd Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 05/05/2014 09:25 a.m.

1.1A bill for an act 1.2relating to disaster relief; creating a disaster assistance contingency account; 1.3requiring transfer of unused disaster relief appropriations to the disaster 1.4assistance contingency account; establishing a disaster relief cost-share 1.5relationship between the state, local entities, and American Indian tribes and 1.6bands; authorizing state public disaster assistance in the absence of federal public 1.7disaster assistance; appropriating money;amending Minnesota Statutes 2012, 1.8sections 12.03, by adding subdivisions; 12.221, subdivision 4, by adding a 1.9subdivision; 12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision 1.103; 12A.15, subdivision 1; 16A.28, by adding a subdivision; proposing coding for 1.11new law as Minnesota Statutes, chapter 12B. 1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.13ARTICLE 1 1.14DISASTER ASSISTANCE; FEDERAL AID GRANTED 1.15    Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision 1.16to read: 1.17     new text begin Subd. 5d. new text end new text begin Local entity. new text end new text begin "Local entity" has the meaning given in Code of Federal new text end 1.18 new text begin Regulations, title 44, section 206.2 (2012), and also includes privately owned electrical new text end 1.19 new text begin cooperatives eligible for FEMA assistance. new text end 1.20    Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to 1.21read: 1.22     new text begin Subd. 6b. new text end new text begin Nonfederal share. new text end new text begin "Nonfederal share" has the meaning given in section new text end 1.23 new text begin 12A.02, subdivision 7. new text end 1.24    Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read: 2.1    Subd. 4. Subgrant agreements new text begin ; state share new text end . new text begin (a) new text end The state director, serving as the 2.2governor's authorized representative, may enter into subgrant agreements with eligible 2.3applicants to provide federal and state financial assistance made available as a result 2.4of a disaster declaration. 2.5 new text begin (b) When state funds are used to provide the FEMA Public Assistance Program new text end 2.6 new text begin cost-share requirement for a local entity, the state director must award a local entity 100 new text end 2.7 new text begin percent of the nonfederal share of the local entity's FEMA Public Assistance Program costs. new text end 2.8    Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision 2.9to read: 2.10     new text begin Subd. 6. new text end new text begin Disaster assistance contingency account; appropriation. new text end new text begin (a) A disaster new text end 2.11 new text begin assistance contingency account is created in the special revenue fund in the state treasury. new text end 2.12 new text begin Money in the disaster assistance contingency account is appropriated to the commissioner new text end 2.13 new text begin of public safety to provide: new text end 2.14 new text begin (1) cost-share for federal assistance under section 12A.15, subdivision 1; and new text end 2.15 new text begin (2) state public disaster assistance to eligible applicants under chapter 12B. new text end 2.16 new text begin (b) For appropriations under paragraph (a), clause (1), the amount appropriated new text end 2.17 new text begin is 100 percent of any nonfederal share for state agencies and local entities. Money new text end 2.18 new text begin appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the new text end 2.19 new text begin nonfederal share for publicly owned capital improvement projects. new text end 2.20 new text begin (c) For appropriations under paragraph (a), clause (2), the amount appropriated new text end 2.21 new text begin is the amount required to pay eligible claims under chapter 12B, as certified by the new text end 2.22 new text begin commissioner of public safety. new text end 2.23 new text begin (d) By January 15 of each year, the commissioner of management and budget shall new text end 2.24 new text begin submit a report to the chairs and ranking minority members of the house of representatives new text end 2.25 new text begin Ways and Means Committee and the senate Finance Committee detailing state disaster new text end 2.26 new text begin assistance appropriations and expenditures under this subdivision during the previous new text end 2.27 new text begin calendar year. new text end 2.28 new text begin (e) The governor's budget proposal submitted to the legislature under section 16A.11 new text end 2.29 new text begin must include recommended appropriations to the disaster assistance contingency account. new text end 2.30 new text begin The governor's appropriation recommendations must be informed by the commissioner of new text end 2.31 new text begin public safety's estimate of the amount of money that will be necessary to: new text end 2.32 new text begin (1) provide 100 percent of the nonfederal share for state agencies and local entities new text end 2.33 new text begin that will receive federal financial assistance from FEMA during the next biennium; and new text end 2.34 new text begin (2) fully pay all eligible claims under chapter 12B. new text end 2.35 new text begin (f) Notwithstanding section 16A.28: new text end 3.1 new text begin (1) funds appropriated or transferred to the disaster assistance contingency account new text end 3.2 new text begin do not lapse but remain in the account until appropriated; and new text end 3.3 new text begin (2) funds appropriated from the disaster assistance contingency account do not lapse new text end 3.4 new text begin and are available until expended. new text end 3.5    Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read: 3.6    Subd. 2. Appropriation. "Appropriation" means an appropriation provided in law 3.7specifically to implement this chapter new text begin , including but not limited to a statutory appropriation new text end 3.8 new text begin to provide the required cost-share for federal disaster assistance under section 12.221 new text end . 3.9    Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision 3.10to read: 3.11     new text begin Subd. 6. new text end new text begin Local entity. new text end new text begin "Local entity" has the meaning given in section 12.03, new text end 3.12 new text begin subdivision 5d. new text end 3.13    Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision 3.14to read: 3.15     new text begin Subd. 7. new text end new text begin Nonfederal share. new text end new text begin "Nonfederal share" means that portion of total FEMA new text end 3.16 new text begin Public Assistance Program costs that is no more than 25 percent and is not eligible for new text end 3.17 new text begin FEMA reimbursement. new text end 3.18    Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read: 3.19    Subd. 3. Nonduplication of federal assistance. State assistance may not duplicate 3.20or supplement eligible FEMA Public Assistance Program assistance. For eligible Public 3.21Assistance Program costs, any state matching new text begin cost-share new text end money made available for that 3.22assistance must be disbursed by the Department of Public Safety to a state agency, local 3.23political subdivision, Indian tribe new text begin entity new text end , or other applicant. State assistance distributed by 3.24a state agency, other than the Department of Public Safety, to a political subdivision new text begin local new text end 3.25 new text begin entity new text end or other applicant for disaster costs that are eligible for FEMA Public Assistance 3.26Program assistance constitutes an advance of funds. Such advances must be repaid to the 3.27applicable state agency when the applicant has received the FEMA Public Assistance 3.28Program assistance, and whatever state matching new text begin cost-share new text end money may be made available 3.29for that assistance, from the Department of Public Safety. 3.30    Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read: 4.1    Subdivision 1. State match new text begin cost-share new text end for federal assistance. State appropriations 4.2may be used for payment of the state match for federal disaster assistance to new text begin pay 100 new text end 4.3 new text begin percent of the nonfederal share for new text end state agencies. If authorized in law, state appropriations 4.4may be used to pay all or a portion of the local share of the match for federal funds for 4.5political subdivisions new text begin and local entities new text end under section 12.221. An appropriation from 4.6the bond proceeds fund may be used to fund federal match obligations new text begin as cost-share for new text end 4.7 new text begin federal disaster assistance new text end for publicly owned capital improvement projects resulting from 4.8the receipt of federal disaster assistance. 4.9    Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision 4.10to read: 4.11     new text begin Subd. 9. new text end new text begin Disaster assistance. new text end new text begin (a) The commissioner of management and budget new text end 4.12 new text begin must transfer the unexpended and unencumbered balance of a general fund disaster new text end 4.13 new text begin assistance appropriation that expires as provided under this section or as otherwise provided new text end 4.14 new text begin by law to the disaster assistance contingency account in section 12.221, subdivision 6. new text end 4.15 new text begin (b) Expired disaster assistance transferred to the disaster assistance contingency new text end 4.16 new text begin account is available for appropriation as provided under section 12.221, subdivision new text end 4.17 new text begin 6, regardless of the specific disaster event or purpose for which the expired disaster new text end 4.18 new text begin assistance was originally appropriated. new text end 4.19 new text begin (c) The commissioner must report each transfer to the chairs of the house of new text end 4.20 new text begin representatives Ways and Means Committee and the senate Finance Committee. new text end 4.21 new text begin (d) For the purposes of this subdivision, "disaster assistance appropriation" means new text end 4.22 new text begin an appropriation from the general fund to provide cost-share required for federal disaster new text end 4.23 new text begin assistance or to provide other state disaster assistance under chapter 12A or 12B. new text end 4.24    Sec. 11. new text begin EFFECTIVE DATE. new text end 4.25 new text begin This article is effective the day following final enactment. new text end 4.26ARTICLE 2 4.27DISASTER ASSISTANCE; ABSENT FEDERAL AID 4.28    Section 1. new text begin [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL new text end 4.29 new text begin AID. new text end 4.30 new text begin This chapter establishes a state public assistance program to provide cost-share new text end 4.31 new text begin assistance to local entities that sustain significant damage on a per capita basis but are not new text end 4.32 new text begin eligible for federal disaster assistance or corresponding state assistance under chapter 12A. new text end 5.1    Sec. 2. new text begin [12B.15] DEFINITIONS. new text end 5.2     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin The definitions in this section apply to this chapter. new text end 5.3     new text begin Subd. 2. new text end new text begin Applicant. new text end new text begin "Applicant" means a local entity that applies for state disaster new text end 5.4 new text begin assistance under this chapter. new text end 5.5     new text begin Subd. 3. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of public safety. new text end 5.6     new text begin Subd. 4. new text end new text begin Director. new text end new text begin "Director" means the director of the Division of Homeland new text end 5.7 new text begin Security and Emergency Management in the Department of Public Safety. new text end 5.8     new text begin Subd. 5. new text end new text begin Disaster. new text end new text begin "Disaster" means any catastrophe, including but not limited new text end 5.9 new text begin to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic new text end 5.10 new text begin eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire, new text end 5.11 new text begin flood, or explosion. new text end 5.12     new text begin Subd. 6. new text end new text begin FEMA. new text end new text begin "FEMA" means the Federal Emergency Management Agency. new text end 5.13     new text begin Subd. 7. new text end new text begin Incident period. new text end new text begin "Incident period" means the time interval of a disaster as new text end 5.14 new text begin delineated by specific start and end dates. new text end 5.15     new text begin Subd. 8. new text end new text begin Local entity. new text end new text begin "Local entity" has the meaning given in section 12.03, new text end 5.16 new text begin subdivision 5d. new text end 5.17    Sec. 3. new text begin [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS. new text end 5.18     new text begin Subdivision 1. new text end new text begin Payment required; eligibility criteria. new text end new text begin The director, serving as new text end 5.19 new text begin the governor's authorized representative, may enter into grant agreements with eligible new text end 5.20 new text begin applicants to provide state financial assistance made available as a result of a disaster new text end 5.21 new text begin that satisfies all of the following criteria: new text end 5.22 new text begin (1) the state or applicable local entity declares a disaster or emergency during the new text end 5.23 new text begin incident period; new text end 5.24 new text begin (2) damages suffered and eligible costs incurred are the direct result of the disaster; new text end 5.25 new text begin (3) federal disaster assistance is not available to the applicant because the governor new text end 5.26 new text begin did not request a presidential declaration of major disaster, the president denied the new text end 5.27 new text begin governor's request, or the applicant is not eligible for federal disaster assistance because new text end 5.28 new text begin the state or county did not meet the per capita impact indicator under FEMA's Public new text end 5.29 new text begin Assistance Program; new text end 5.30 new text begin (4) the applicant incurred eligible damages that, on a per capita basis, equal or new text end 5.31 new text begin exceed 50 percent of the countywide per capita impact indicator under FEMA's Public new text end 5.32 new text begin Assistance Program; new text end 5.33 new text begin (5) the applicant assumes responsibility for 25 percent of the applicant's total new text end 5.34 new text begin eligible costs; and new text end 5.35 new text begin (6) the applicant satisfies all requirements in this chapter. new text end 6.1     new text begin Subd. 2. new text end new text begin Considerations; other resources available. new text end new text begin When evaluating applicant new text end 6.2 new text begin eligibility under subdivision 1, the director must consider: new text end 6.3 new text begin (1) the availability of other resources from federal, state, local, private, or other new text end 6.4 new text begin sources; and new text end 6.5 new text begin (2) the availability or existence of insurance. new text end 6.6    Sec. 4. new text begin [12B.30] ELIGIBLE COSTS. new text end 6.7     new text begin Subdivision 1. new text end new text begin Eligible costs. new text end new text begin Costs eligible for payment under this chapter are new text end 6.8 new text begin those costs that would be eligible for federal financial assistance under FEMA's Public new text end 6.9 new text begin Assistance Program. new text end 6.10     new text begin Subd. 2. new text end new text begin Ineligible costs. new text end new text begin Ineligible costs are all costs not included in subdivision new text end 6.11 new text begin 1, including but not limited to: new text end 6.12 new text begin (1) ordinary operating expenses, including salaries and expenses of employees and new text end 6.13 new text begin public officials that are not directly related to the disaster response; new text end 6.14 new text begin (2) costs for which payment has been or will be received from any other funding new text end 6.15 new text begin source; new text end 6.16 new text begin (3) disaster-related costs that should, in the determination of the director, be covered new text end 6.17 new text begin and compensated by insurance; and new text end 6.18 new text begin (4) projects and claims totaling less than $1,000. new text end 6.19    Sec. 5. new text begin [12B.35] APPLICANT'S SHARE. new text end 6.20 new text begin An applicant's share of eligible costs incurred must not be less than 25 percent. The new text end 6.21 new text begin substantiated value of donated materials, equipment, services, and labor may be used as new text end 6.22 new text begin all or part of the applicant's share of eligible costs, subject to the following: new text end 6.23 new text begin (1) all items and sources of donation must be indicated on the application and any new text end 6.24 new text begin supporting documentation submitted to the commissioner; new text end 6.25 new text begin (2) the rate for calculating the value of donated, nonprofessional labor is the new text end 6.26 new text begin prevailing federal minimum wage; new text end 6.27 new text begin (3) the value of donated equipment may not exceed the highway equipment rates new text end 6.28 new text begin approved by the commissioner of transportation; and new text end 6.29 new text begin (4) the value of donated materials and professional services must conform to market new text end 6.30 new text begin rates and be established by invoice. new text end 6.31    Sec. 6. new text begin [12B.40] APPLICATION PROCESS. new text end 7.1 new text begin (a) The director must develop application materials and may update the materials as new text end 7.2 new text begin needed. Application materials must include instructions and requirements for assistance new text end 7.3 new text begin under this chapter. new text end 7.4 new text begin (b) An applicant has 30 days from the end of the incident period or the president's new text end 7.5 new text begin official denial of the governor's request for a declaration of a major disaster to provide the new text end 7.6 new text begin director with written notice of intent to apply. The director may deny an application due to new text end 7.7 new text begin a late notice of intent to apply. new text end 7.8 new text begin (c) Within 60 days after the end of the incident period or the president's official denial new text end 7.9 new text begin of the governor's request for a declaration of a major disaster, the applicant must submit a new text end 7.10 new text begin complete application to the director. A complete application includes the following: new text end 7.11 new text begin (1) the cause, location of damage, and incident period; new text end 7.12 new text begin (2) documentation of a local, tribal, county, or state disaster or emergency new text end 7.13 new text begin declaration in response to the disaster; new text end 7.14 new text begin (3) a description of damages, an initial damage assessment, and the amount of new text end 7.15 new text begin eligible costs incurred by the applicant; new text end 7.16 new text begin (4) a statement or evidence that the applicant has the ability to pay for at least 25 new text end 7.17 new text begin percent of total eligible costs incurred from the disaster; and new text end 7.18 new text begin (5) a statement or evidence that the local entity has incurred damages equal to or new text end 7.19 new text begin exceeding 50 percent of the federal countywide threshold in effect during the incident new text end 7.20 new text begin period. new text end 7.21 new text begin (d) The director must review the application and supporting documentation for new text end 7.22 new text begin completeness and may return the application with a request for more detailed information. new text end 7.23 new text begin The director may consult with local public officials to ensure the application reflects the new text end 7.24 new text begin extent and magnitude of the damage and to reconcile any differences. The application is new text end 7.25 new text begin not complete until the director receives all requested information. new text end 7.26 new text begin (e) If the director returns an application with a request for more detailed information new text end 7.27 new text begin or for correction of deficiencies, the applicant must submit all required information within new text end 7.28 new text begin 30 days of the applicant's receipt of the director's request. The applicant's failure to new text end 7.29 new text begin provide the requested information in a timely manner without a reasonable explanation new text end 7.30 new text begin may be cause for denial of the application. new text end 7.31 new text begin (f) The director has no more than 60 days from the receipt of a complete application new text end 7.32 new text begin to approve or deny the application, or the application is deemed approved. If the director new text end 7.33 new text begin denies an application, the director must send a denial letter. If the director approves an new text end 7.34 new text begin application or the application is automatically deemed approved after 60 days, the director new text end 7.35 new text begin must notify the applicant of the steps necessary to obtain reimbursement of eligible new text end 8.1 new text begin costs, including submission of invoices or other documentation substantiating the costs new text end 8.2 new text begin submitted for reimbursement. new text end 8.3    Sec. 7. new text begin [12B.45] CLAIMS PROCESS. new text end 8.4     new text begin Subdivision 1. new text end new text begin Claims; appeal. new text end new text begin (a) An applicant must submit to the director new text end 8.5 new text begin completed claims for payment of actual and eligible costs on forms provided by the new text end 8.6 new text begin director. All eligible costs claimed for payment must be documented and consistent with new text end 8.7 new text begin the eligibility provisions of this chapter. new text end 8.8 new text begin (b) If the director denies an applicant's claim for payment, the applicant has 30 days new text end 8.9 new text begin from receipt of the director's determination to appeal in writing to the commissioner. The new text end 8.10 new text begin appeal must include the applicant's rationale for reversing the director's determination. The new text end 8.11 new text begin commissioner has 30 days from receipt of the appeal to uphold or modify the director's new text end 8.12 new text begin determination and formally respond to the applicant. If, within 30 days of receiving new text end 8.13 new text begin the commissioner's decision, the applicant notifies the commissioner that the applicant new text end 8.14 new text begin intends to contest the commissioner's decision, the Office of Administrative Hearings shall new text end 8.15 new text begin conduct a hearing under the contested case provisions of chapter 14. new text end 8.16     new text begin Subd. 2. new text end new text begin Final inspection. new text end new text begin Upon completion of all work by an applicant, the new text end 8.17 new text begin director may inspect all work claimed by the applicant. The applicant must provide the new text end 8.18 new text begin director with access to records pertaining to all claimed work and must permit the director new text end 8.19 new text begin to review all records relating to the work. new text end 8.20     new text begin Subd. 3. new text end new text begin Closeout. new text end new text begin The director must close out an applicant's disaster assistance new text end 8.21 new text begin application after all of the following occur: new text end 8.22 new text begin (1) eligible work is complete; new text end 8.23 new text begin (2) the applicant receives the final amount due or pays any amount owed under new text end 8.24 new text begin section 12B.50; and new text end 8.25 new text begin (3) any extant or scheduled audits are complete. new text end 8.26     new text begin Subd. 4. new text end new text begin Audit. new text end new text begin (a) An applicant must account for all funds received under this new text end 8.27 new text begin chapter in conformance with generally accepted accounting principles and practices. The new text end 8.28 new text begin applicant must maintain detailed records of expenditures to show that grants received under new text end 8.29 new text begin this chapter were used for the purpose for which the payment was made. The applicant new text end 8.30 new text begin must maintain records for five years and make the records available for inspection and new text end 8.31 new text begin audit by the director or the state auditor. The applicant must keep all financial records for new text end 8.32 new text begin five years after the final payment, including but not limited to all invoices and canceled new text end 8.33 new text begin checks or bank statements that support all eligible costs claimed by the applicant. new text end 8.34 new text begin (b) The director or state auditor may audit all applicant records pertaining to an new text end 8.35 new text begin application or payment under this chapter. new text end 9.1    Sec. 8. new text begin [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT new text end 9.2 new text begin REQUIRED. new text end 9.3 new text begin If an applicant subsequently recovers eligible costs from another source after new text end 9.4 new text begin receiving payment under this chapter, the applicant must pay the commissioner an amount new text end 9.5 new text begin equal to the corresponding state funds received within 30 days. The commissioner must new text end 9.6 new text begin deposit any repayment in the disaster response contingency account in section 12.221, new text end 9.7 new text begin subdivision 6. new text end 9.8    Sec. 9. new text begin EFFECTIVE DATE. new text end 9.9 new text begin This article is effective the day following final enactment. new text end 9.10ARTICLE 3 9.11TRANSFER 9.12    Section 1. new text begin TRANSFER; EMERGENCY MANAGEMENT. new text end 9.13 new text begin On July 1, 2014, the commissioner of management and budget shall transfer new text end 9.14 new text begin $3,000,000 from the general fund to the disaster assistance contingency account new text end 9.15 new text begin established in Minnesota Statutes, section 12.221, subdivision 6. new text end