<a id="pl.1.3"></a><var>1.3</var>requiring transfer of unused disaster relief appropriations to the disaster <br/>
<a id="pl.1.4"></a><var>1.4</var>assistance contingency account; establishing a disaster relief cost-share <br/>
<a id="pl.1.5"></a><var>1.5</var>relationship between the state, local entities, and American Indian tribes and <br/>
<a id="pl.1.6"></a><var>1.6</var>bands; authorizing state public disaster assistance in the absence of federal public <br/>
<a id="pl.1.7"></a><var>1.7</var>disaster assistance; appropriating money;amending Minnesota Statutes 2012, <br/>
<a id="pl.1.8"></a><var>1.8</var>sections 12.03, by adding subdivisions; 12.221, subdivision 4, by adding a <br/>
<a id="pl.1.9"></a><var>1.9</var>subdivision; 12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision <br/>
<a id="pl.1.10"></a><var>1.10</var>3; 12A.15, subdivision 1; 16A.28, by adding a subdivision; proposing coding for <br/>
<a id="pl.1.11"></a><var>1.11</var>new law as Minnesota Statutes, chapter 12B.<br/>
<a id="pl.1.12"></a><var>1.12</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.15"></a><var>1.15</var>    Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision <br/>
<a id="pl.1.16"></a><var>1.16</var>to read:<br/>
<a id="pl.1.17"></a><var>1.17</var>    Subd. 5d. <b>Local entity.</b> "Local entity" has the meaning given in Code of Federal <br/>
<a id="pl.1.18"></a><var>1.18</var>Regulations, title 44, section 206.2 (2012), and also includes privately owned electrical <br/>
<a id="pl.1.19"></a><var>1.19</var>cooperatives eligible for FEMA assistance.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.1.20"></a><var>1.20</var>    Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to <br/>
<a id="pl.1.21"></a><var>1.21</var>read:<br/>
<a id="pl.1.22"></a><var>1.22</var>    Subd. 6b. <b>Nonfederal share.</b> "Nonfederal share" has the meaning given in section <br/>
<a id="pl.1.23"></a><var>1.23</var>12A.02, subdivision 7.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.1.24"></a><var>1.24</var>    Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subd. 4. <b>Subgrant agreements</b><b>; state share</b><b>.</b> (a) The state director, serving as the <br/>
<a id="pl.2.2"></a><var>2.2</var>governor's authorized representative, may enter into subgrant agreements with eligible <br/>
<a id="pl.2.3"></a><var>2.3</var>applicants to provide federal and state financial assistance made available as a result <br/>
<a id="pl.2.4"></a><var>2.4</var>of a disaster declaration.<br/>
<a id="pl.2.5"></a><var>2.5</var>(b) When state funds are used to provide the FEMA Public Assistance Program <br/>
<a id="pl.2.6"></a><var>2.6</var>cost-share requirement for a local entity, the state director must award a local entity 100 <br/>
<a id="pl.2.7"></a><var>2.7</var>percent of the nonfederal share of the local entity's FEMA Public Assistance Program costs.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.2.8"></a><var>2.8</var>    Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision <br/>
<a id="pl.2.9"></a><var>2.9</var>to read:<br/>
<a id="pl.2.10"></a><var>2.10</var>    Subd. 6. <b>Disaster assistance contingency account; appropriation.</b> (a) A disaster <br/>
<a id="pl.2.11"></a><var>2.11</var>assistance contingency account is created in the special revenue fund in the state treasury. <br/>
<a id="pl.2.12"></a><var>2.12</var>Money in the disaster assistance contingency account is appropriated to the commissioner <br/>
<a id="pl.2.13"></a><var>2.13</var>of public safety to provide:<br/>
<a id="pl.2.14"></a><var>2.14</var>(1) cost-share for federal assistance under section 12A.15, subdivision 1; and<br/>
<a id="pl.2.15"></a><var>2.15</var>(2) state public disaster assistance to eligible applicants under chapter 12B.<br/>
<a id="pl.2.16"></a><var>2.16</var>(b) For appropriations under paragraph (a), clause (1), the amount appropriated <br/>
<a id="pl.2.17"></a><var>2.17</var>is 100 percent of any nonfederal share for state agencies and local entities. Money <br/>
<a id="pl.2.18"></a><var>2.18</var>appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the <br/>
<a id="pl.2.19"></a><var>2.19</var>nonfederal share for publicly owned capital improvement projects.<br/>
<a id="pl.2.20"></a><var>2.20</var>(c) For appropriations under paragraph (a), clause (2), the amount appropriated <br/>
<a id="pl.2.21"></a><var>2.21</var>is the amount required to pay eligible claims under chapter 12B, as certified by the <br/>
<a id="pl.2.22"></a><var>2.22</var>commissioner of public safety.<br/>
<a id="pl.2.23"></a><var>2.23</var>(d) By January 15 of each year, the commissioner of management and budget shall <br/>
<a id="pl.2.24"></a><var>2.24</var>submit a report to the chairs and ranking minority members of the house of representatives <br/>
<a id="pl.2.25"></a><var>2.25</var>Ways and Means Committee and the senate Finance Committee detailing state disaster <br/>
<a id="pl.2.26"></a><var>2.26</var>assistance appropriations and expenditures under this subdivision during the previous <br/>
<a id="pl.2.27"></a><var>2.27</var>calendar year.<br/>
<a id="pl.2.28"></a><var>2.28</var>(e) The governor's budget proposal submitted to the legislature under section 16A.11 <br/>
<a id="pl.2.29"></a><var>2.29</var>must include recommended appropriations to the disaster assistance contingency account. <br/>
<a id="pl.2.30"></a><var>2.30</var>The governor's appropriation recommendations must be informed by the commissioner of <br/>
<a id="pl.2.31"></a><var>2.31</var>public safety's estimate of the amount of money that will be necessary to:<br/>
<a id="pl.2.32"></a><var>2.32</var>(1) provide 100 percent of the nonfederal share for state agencies and local entities <br/>
<a id="pl.2.33"></a><var>2.33</var>that will receive federal financial assistance from FEMA during the next biennium; and<br/>
<a id="pl.2.34"></a><var>2.34</var>(2) fully pay all eligible claims under chapter 12B.<br/>
<a id="pl.2.35"></a><var>2.35</var>(f) Notwithstanding section 16A.28:<br/>
<a id="pl.3.1"></a><var>3.1</var>(1) funds appropriated or transferred to the disaster assistance contingency account <br/>
<a id="pl.3.2"></a><var>3.2</var>do not lapse but remain in the account until appropriated; and<br/>
<a id="pl.3.3"></a><var>3.3</var>(2) funds appropriated from the disaster assistance contingency account do not lapse <br/>
<a id="pl.3.4"></a><var>3.4</var>and are available until expended.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.3.5"></a><var>3.5</var>    Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 2. <b>Appropriation.</b> "Appropriation" means an appropriation provided in law <br/>
<a id="pl.3.7"></a><var>3.7</var>specifically to implement this chapter, including but not limited to a statutory appropriation <br/>
<a id="pl.3.8"></a><var>3.8</var>to provide the required cost-share for federal disaster assistance under section 12.221.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.3.9"></a><var>3.9</var>    Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision <br/>
<a id="pl.3.10"></a><var>3.10</var>to read:<br/>
<a id="pl.3.11"></a><var>3.11</var>    Subd. 6. <b>Local entity.</b> "Local entity" has the meaning given in section 12.03, <br/>
<a id="pl.3.12"></a><var>3.12</var>subdivision 5d.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.3.13"></a><var>3.13</var>    Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision <br/>
<a id="pl.3.14"></a><var>3.14</var>to read:<br/>
<a id="pl.3.15"></a><var>3.15</var>    Subd. 7. <b>Nonfederal share.</b> "Nonfederal share" means that portion of total FEMA <br/>
<a id="pl.3.16"></a><var>3.16</var>Public Assistance Program costs that is no more than 25 percent and is not eligible for <br/>
<a id="pl.3.17"></a><var>3.17</var>FEMA reimbursement.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.3.18"></a><var>3.18</var>    Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:<br/>
<a id="pl.3.19"></a><var>3.19</var>    Subd. 3. <b>Nonduplication of federal assistance.</b> State assistance may not duplicate <br/>
<a id="pl.3.20"></a><var>3.20</var>or supplement eligible FEMA Public Assistance Program assistance. For eligible Public <br/>
<a id="pl.3.21"></a><var>3.21</var>Assistance Program costs, any state matching cost-share money made available for that <br/>
<a id="pl.3.22"></a><var>3.22</var>assistance must be disbursed by the Department of Public Safety to a state agency, local <br/>
<a id="pl.3.23"></a><var>3.23</var>political subdivision, Indian tribe entity, or other applicant. State assistance distributed by <br/>
<a id="pl.3.24"></a><var>3.24</var>a state agency, other than the Department of Public Safety, to a political subdivision local <br/>
<a id="pl.3.25"></a><var>3.25</var>entity or other applicant for disaster costs that are eligible for FEMA Public Assistance <br/>
<a id="pl.3.26"></a><var>3.26</var>Program assistance constitutes an advance of funds. Such advances must be repaid to the <br/>
<a id="pl.3.27"></a><var>3.27</var>applicable state agency when the applicant has received the FEMA Public Assistance <br/>
<a id="pl.3.28"></a><var>3.28</var>Program assistance, and whatever state matching cost-share money may be made available <br/>
<a id="pl.3.29"></a><var>3.29</var>for that assistance, from the Department of Public Safety.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.3.30"></a><var>3.30</var>    Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subdivision 1. <b>State </b><b>match</b><b> cost-share</b><b> for federal assistance.</b> State appropriations <br/>
<a id="pl.4.2"></a><var>4.2</var>may be used for payment of the state match for federal disaster assistance to pay 100 <br/>
<a id="pl.4.3"></a><var>4.3</var>percent of the nonfederal share for state agencies. If authorized in law, state appropriations <br/>
<a id="pl.4.4"></a><var>4.4</var>may be used to pay all or a portion of the local share of the match for federal funds for <br/>
<a id="pl.4.5"></a><var>4.5</var>political subdivisions and local entities under section 
         <statute_ref>12.221</statute_ref>. An appropriation from <br/>
<a id="pl.4.6"></a><var>4.6</var>the bond proceeds fund may be used to fund federal match obligations as cost-share for <br/>
<a id="pl.4.7"></a><var>4.7</var>federal disaster assistance for publicly owned capital improvement projects resulting from <br/>
<a id="pl.4.8"></a><var>4.8</var>the receipt of federal disaster assistance.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.4.9"></a><var>4.9</var>    Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision <br/>
<a id="pl.4.10"></a><var>4.10</var>to read:<br/>
<a id="pl.4.11"></a><var>4.11</var>    Subd. 9. <b>Disaster assistance.</b> (a) The commissioner of management and budget <br/>
<a id="pl.4.12"></a><var>4.12</var>must transfer the unexpended and unencumbered balance of a general fund disaster <br/>
<a id="pl.4.13"></a><var>4.13</var>assistance appropriation that expires as provided under this section or as otherwise provided <br/>
<a id="pl.4.14"></a><var>4.14</var>by law to the disaster assistance contingency account in section 12.221, subdivision 6.<br/>
<a id="pl.4.15"></a><var>4.15</var>(b) Expired disaster assistance transferred to the disaster assistance contingency <br/>
<a id="pl.4.16"></a><var>4.16</var>account is available for appropriation as provided under section 12.221, subdivision <br/>
<a id="pl.4.17"></a><var>4.17</var>6, regardless of the specific disaster event or purpose for which the expired disaster <br/>
<a id="pl.4.18"></a><var>4.18</var>assistance was originally appropriated.<br/>
<a id="pl.4.19"></a><var>4.19</var>(c) The commissioner must report each transfer to the chairs of the house of <br/>
<a id="pl.4.20"></a><var>4.20</var>representatives Ways and Means Committee and the senate Finance Committee.<br/>
<a id="pl.4.21"></a><var>4.21</var>(d) For the purposes of this subdivision, "disaster assistance appropriation" means <br/>
<a id="pl.4.22"></a><var>4.22</var>an appropriation from the general fund to provide cost-share required for federal disaster <br/>
<a id="pl.4.23"></a><var>4.23</var>assistance or to provide other state disaster assistance under chapter 12A or 12B.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 11. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.4.25"></a><var>4.25</var>This article is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.4.28"></a><var>4.28</var>    Section 1. <b>[12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL </b><br/>
<a id="pl.4.29"></a><var>4.29</var><b>AID.</b><br/>
<a id="pl.4.30"></a><var>4.30</var>This chapter establishes a state public assistance program to provide cost-share <br/>
<a id="pl.4.31"></a><var>4.31</var>assistance to local entities that sustain significant damage on a per capita basis but are not <br/>
<a id="pl.4.32"></a><var>4.32</var>eligible for federal disaster assistance or corresponding state assistance under chapter 12A.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.5.1"></a><var>5.1</var>    Sec. 2. <b>[12B.15] DEFINITIONS.</b><br/>
<a id="pl.5.2"></a><var>5.2</var>    Subdivision 1. <b>Application.</b> The definitions in this section apply to this chapter.<br/>
<a id="pl.5.3"></a><var>5.3</var>    Subd. 2. <b>Applicant.</b> "Applicant" means a local entity that applies for state disaster <br/>
<a id="pl.5.4"></a><var>5.4</var>assistance under this chapter.<br/>
<a id="pl.5.5"></a><var>5.5</var>    Subd. 3. <b>Commissioner.</b> "Commissioner" means the commissioner of public safety.<br/>
<a id="pl.5.6"></a><var>5.6</var>    Subd. 4. <b>Director.</b> "Director" means the director of the Division of Homeland <br/>
<a id="pl.5.7"></a><var>5.7</var>Security and Emergency Management in the Department of Public Safety.<br/>
<a id="pl.5.8"></a><var>5.8</var>    Subd. 5. <b>Disaster.</b> "Disaster" means any catastrophe, including but not limited <br/>
<a id="pl.5.9"></a><var>5.9</var>to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic <br/>
<a id="pl.5.10"></a><var>5.10</var>eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire, <br/>
<a id="pl.5.11"></a><var>5.11</var>flood, or explosion.<br/>
<a id="pl.5.12"></a><var>5.12</var>    Subd. 6. <b>FEMA.</b> "FEMA" means the Federal Emergency Management Agency.<br/>
<a id="pl.5.13"></a><var>5.13</var>    Subd. 7. <b>Incident period.</b> "Incident period" means the time interval of a disaster as <br/>
<a id="pl.5.14"></a><var>5.14</var>delineated by specific start and end dates.<br/>
<a id="pl.5.15"></a><var>5.15</var>    Subd. 8. <b>Local entity.</b> "Local entity" has the meaning given in section 12.03, <br/>
<a id="pl.5.16"></a><var>5.16</var>subdivision 5d.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.5.17"></a><var>5.17</var>    Sec. 3. <b>[12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.</b><br/>
<a id="pl.5.18"></a><var>5.18</var>    Subdivision 1. <b>Payment required; eligibility criteria.</b> The director, serving as <br/>
<a id="pl.5.19"></a><var>5.19</var>the governor's authorized representative, may enter into grant agreements with eligible <br/>
<a id="pl.5.20"></a><var>5.20</var>applicants to provide state financial assistance made available as a result of a disaster <br/>
<a id="pl.5.21"></a><var>5.21</var>that satisfies all of the following criteria:<br/>
<a id="pl.5.22"></a><var>5.22</var>(1) the state or applicable local entity declares a disaster or emergency during the <br/>
<a id="pl.5.23"></a><var>5.23</var>incident period;<br/>
<a id="pl.5.24"></a><var>5.24</var>(2) damages suffered and eligible costs incurred are the direct result of the disaster;<br/>
<a id="pl.5.25"></a><var>5.25</var>(3) federal disaster assistance is not available to the applicant because the governor <br/>
<a id="pl.5.26"></a><var>5.26</var>did not request a presidential declaration of major disaster, the president denied the <br/>
<a id="pl.5.27"></a><var>5.27</var>governor's request, or the applicant is not eligible for federal disaster assistance because <br/>
<a id="pl.5.28"></a><var>5.28</var>the state or county did not meet the per capita impact indicator under FEMA's Public <br/>
<a id="pl.5.29"></a><var>5.29</var>Assistance Program;<br/>
<a id="pl.5.30"></a><var>5.30</var>(4) the applicant incurred eligible damages that, on a per capita basis, equal or <br/>
<a id="pl.5.31"></a><var>5.31</var>exceed 50 percent of the countywide per capita impact indicator under FEMA's Public <br/>
<a id="pl.5.32"></a><var>5.32</var>Assistance Program;<br/>
<a id="pl.5.33"></a><var>5.33</var>(5) the applicant assumes responsibility for 25 percent of the applicant's total <br/>
<a id="pl.5.34"></a><var>5.34</var>eligible costs; and<br/>
<a id="pl.5.35"></a><var>5.35</var>(6) the applicant satisfies all requirements in this chapter.<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 2. <b>Considerations; other resources available.</b> When evaluating applicant <br/>
<a id="pl.6.2"></a><var>6.2</var>eligibility under subdivision 1, the director must consider:<br/>
<a id="pl.6.3"></a><var>6.3</var>(1) the availability of other resources from federal, state, local, private, or other <br/>
<a id="pl.6.4"></a><var>6.4</var>sources; and<br/>
<a id="pl.6.5"></a><var>6.5</var>(2) the availability or existence of insurance.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.6.6"></a><var>6.6</var>    Sec. 4. <b>[12B.30] ELIGIBLE COSTS.</b><br/>
<a id="pl.6.7"></a><var>6.7</var>    Subdivision 1. <b>Eligible costs.</b> Costs eligible for payment under this chapter are <br/>
<a id="pl.6.8"></a><var>6.8</var>those costs that would be eligible for federal financial assistance under FEMA's Public <br/>
<a id="pl.6.9"></a><var>6.9</var>Assistance Program.<br/>
<a id="pl.6.10"></a><var>6.10</var>    Subd. 2. <b>Ineligible costs.</b> Ineligible costs are all costs not included in subdivision <br/>
<a id="pl.6.11"></a><var>6.11</var>1, including but not limited to:<br/>
<a id="pl.6.12"></a><var>6.12</var>(1) ordinary operating expenses, including salaries and expenses of employees and <br/>
<a id="pl.6.13"></a><var>6.13</var>public officials that are not directly related to the disaster response;<br/>
<a id="pl.6.14"></a><var>6.14</var>(2) costs for which payment has been or will be received from any other funding <br/>
<a id="pl.6.15"></a><var>6.15</var>source;<br/>
<a id="pl.6.16"></a><var>6.16</var>(3) disaster-related costs that should, in the determination of the director, be covered <br/>
<a id="pl.6.17"></a><var>6.17</var>and compensated by insurance; and<br/>
<a id="pl.6.18"></a><var>6.18</var>(4) projects and claims totaling less than $1,000.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.6.19"></a><var>6.19</var>    Sec. 5. <b>[12B.35] APPLICANT'S SHARE.</b><br/>
<a id="pl.6.20"></a><var>6.20</var>An applicant's share of eligible costs incurred must not be less than 25 percent. The <br/>
<a id="pl.6.21"></a><var>6.21</var>substantiated value of donated materials, equipment, services, and labor may be used as <br/>
<a id="pl.6.22"></a><var>6.22</var>all or part of the applicant's share of eligible costs, subject to the following:<br/>
<a id="pl.6.23"></a><var>6.23</var>(1) all items and sources of donation must be indicated on the application and any <br/>
<a id="pl.6.24"></a><var>6.24</var>supporting documentation submitted to the commissioner;<br/>
<a id="pl.6.25"></a><var>6.25</var>(2) the rate for calculating the value of donated, nonprofessional labor is the <br/>
<a id="pl.6.26"></a><var>6.26</var>prevailing federal minimum wage;<br/>
<a id="pl.6.27"></a><var>6.27</var>(3) the value of donated equipment may not exceed the highway equipment rates <br/>
<a id="pl.6.28"></a><var>6.28</var>approved by the commissioner of transportation; and<br/>
<a id="pl.6.29"></a><var>6.29</var>(4) the value of donated materials and professional services must conform to market <br/>
<a id="pl.6.30"></a><var>6.30</var>rates and be established by invoice.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.6.31"></a><var>6.31</var>    Sec. 6. <b>[12B.40] APPLICATION PROCESS.</b><br/>
<a id="pl.7.1"></a><var>7.1</var>(a) The director must develop application materials and may update the materials as <br/>
<a id="pl.7.2"></a><var>7.2</var>needed. Application materials must include instructions and requirements for assistance <br/>
<a id="pl.7.3"></a><var>7.3</var>under this chapter.<br/>
<a id="pl.7.4"></a><var>7.4</var>(b) An applicant has 30 days from the end of the incident period or the president's <br/>
<a id="pl.7.5"></a><var>7.5</var>official denial of the governor's request for a declaration of a major disaster to provide the <br/>
<a id="pl.7.6"></a><var>7.6</var>director with written notice of intent to apply. The director may deny an application due to <br/>
<a id="pl.7.7"></a><var>7.7</var>a late notice of intent to apply.<br/>
<a id="pl.7.8"></a><var>7.8</var>(c) Within 60 days after the end of the incident period or the president's official denial <br/>
<a id="pl.7.9"></a><var>7.9</var>of the governor's request for a declaration of a major disaster, the applicant must submit a <br/>
<a id="pl.7.10"></a><var>7.10</var>complete application to the director. A complete application includes the following:<br/>
<a id="pl.7.11"></a><var>7.11</var>(1) the cause, location of damage, and incident period;<br/>
<a id="pl.7.12"></a><var>7.12</var>(2) documentation of a local, tribal, county, or state disaster or emergency <br/>
<a id="pl.7.13"></a><var>7.13</var>declaration in response to the disaster;<br/>
<a id="pl.7.14"></a><var>7.14</var>(3) a description of damages, an initial damage assessment, and the amount of <br/>
<a id="pl.7.15"></a><var>7.15</var>eligible costs incurred by the applicant;<br/>
<a id="pl.7.16"></a><var>7.16</var>(4) a statement or evidence that the applicant has the ability to pay for at least 25 <br/>
<a id="pl.7.17"></a><var>7.17</var>percent of total eligible costs incurred from the disaster; and<br/>
<a id="pl.7.18"></a><var>7.18</var>(5) a statement or evidence that the local entity has incurred damages equal to or <br/>
<a id="pl.7.19"></a><var>7.19</var>exceeding 50 percent of the federal countywide threshold in effect during the incident <br/>
<a id="pl.7.20"></a><var>7.20</var>period.<br/>
<a id="pl.7.21"></a><var>7.21</var>(d) The director must review the application and supporting documentation for <br/>
<a id="pl.7.22"></a><var>7.22</var>completeness and may return the application with a request for more detailed information. <br/>
<a id="pl.7.23"></a><var>7.23</var>The director may consult with local public officials to ensure the application reflects the <br/>
<a id="pl.7.24"></a><var>7.24</var>extent and magnitude of the damage and to reconcile any differences. The application is <br/>
<a id="pl.7.25"></a><var>7.25</var>not complete until the director receives all requested information.<br/>
<a id="pl.7.26"></a><var>7.26</var>(e) If the director returns an application with a request for more detailed information <br/>
<a id="pl.7.27"></a><var>7.27</var>or for correction of deficiencies, the applicant must submit all required information within <br/>
<a id="pl.7.28"></a><var>7.28</var>30 days of the applicant's receipt of the director's request. The applicant's failure to <br/>
<a id="pl.7.29"></a><var>7.29</var>provide the requested information in a timely manner without a reasonable explanation <br/>
<a id="pl.7.30"></a><var>7.30</var>may be cause for denial of the application.<br/>
<a id="pl.7.31"></a><var>7.31</var>(f) The director has no more than 60 days from the receipt of a complete application <br/>
<a id="pl.7.32"></a><var>7.32</var>to approve or deny the application, or the application is deemed approved. If the director <br/>
<a id="pl.7.33"></a><var>7.33</var>denies an application, the director must send a denial letter. If the director approves an <br/>
<a id="pl.7.34"></a><var>7.34</var>application or the application is automatically deemed approved after 60 days, the director <br/>
<a id="pl.7.35"></a><var>7.35</var>must notify the applicant of the steps necessary to obtain reimbursement of eligible <br/>
<a id="pl.8.1"></a><var>8.1</var>costs, including submission of invoices or other documentation substantiating the costs <br/>
<a id="pl.8.2"></a><var>8.2</var>submitted for reimbursement.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.8.3"></a><var>8.3</var>    Sec. 7. <b>[12B.45] CLAIMS PROCESS.</b><br/>
<a id="pl.8.4"></a><var>8.4</var>    Subdivision 1. <b>Claims; appeal.</b> (a) An applicant must submit to the director <br/>
<a id="pl.8.5"></a><var>8.5</var>completed claims for payment of actual and eligible costs on forms provided by the <br/>
<a id="pl.8.6"></a><var>8.6</var>director. All eligible costs claimed for payment must be documented and consistent with <br/>
<a id="pl.8.7"></a><var>8.7</var>the eligibility provisions of this chapter.<br/>
<a id="pl.8.8"></a><var>8.8</var>(b) If the director denies an applicant's claim for payment, the applicant has 30 days <br/>
<a id="pl.8.9"></a><var>8.9</var>from receipt of the director's determination to appeal in writing to the commissioner. The <br/>
<a id="pl.8.10"></a><var>8.10</var>appeal must include the applicant's rationale for reversing the director's determination. The <br/>
<a id="pl.8.11"></a><var>8.11</var>commissioner has 30 days from receipt of the appeal to uphold or modify the director's <br/>
<a id="pl.8.12"></a><var>8.12</var>determination and formally respond to the applicant. If, within 30 days of receiving <br/>
<a id="pl.8.13"></a><var>8.13</var>the commissioner's decision, the applicant notifies the commissioner that the applicant <br/>
<a id="pl.8.14"></a><var>8.14</var>intends to contest the commissioner's decision, the Office of Administrative Hearings shall <br/>
<a id="pl.8.15"></a><var>8.15</var>conduct a hearing under the contested case provisions of chapter 14.<br/>
<a id="pl.8.16"></a><var>8.16</var>    Subd. 2. <b>Final inspection.</b> Upon completion of all work by an applicant, the <br/>
<a id="pl.8.17"></a><var>8.17</var>director may inspect all work claimed by the applicant. The applicant must provide the <br/>
<a id="pl.8.18"></a><var>8.18</var>director with access to records pertaining to all claimed work and must permit the director <br/>
<a id="pl.8.19"></a><var>8.19</var>to review all records relating to the work.<br/>
<a id="pl.8.20"></a><var>8.20</var>    Subd. 3. <b>Closeout.</b> The director must close out an applicant's disaster assistance <br/>
<a id="pl.8.21"></a><var>8.21</var>application after all of the following occur:<br/>
<a id="pl.8.22"></a><var>8.22</var>(1) eligible work is complete;<br/>
<a id="pl.8.23"></a><var>8.23</var>(2) the applicant receives the final amount due or pays any amount owed under <br/>
<a id="pl.8.24"></a><var>8.24</var>section 12B.50; and<br/>
<a id="pl.8.25"></a><var>8.25</var>(3) any extant or scheduled audits are complete.<br/>
<a id="pl.8.26"></a><var>8.26</var>    Subd. 4. <b>Audit.</b> (a) An applicant must account for all funds received under this <br/>
<a id="pl.8.27"></a><var>8.27</var>chapter in conformance with generally accepted accounting principles and practices. The <br/>
<a id="pl.8.28"></a><var>8.28</var>applicant must maintain detailed records of expenditures to show that grants received under <br/>
<a id="pl.8.29"></a><var>8.29</var>this chapter were used for the purpose for which the payment was made. The applicant <br/>
<a id="pl.8.30"></a><var>8.30</var>must maintain records for five years and make the records available for inspection and <br/>
<a id="pl.8.31"></a><var>8.31</var>audit by the director or the state auditor. The applicant must keep all financial records for <br/>
<a id="pl.8.32"></a><var>8.32</var>five years after the final payment, including but not limited to all invoices and canceled <br/>
<a id="pl.8.33"></a><var>8.33</var>checks or bank statements that support all eligible costs claimed by the applicant.<br/>
<a id="pl.8.34"></a><var>8.34</var>(b) The director or state auditor may audit all applicant records pertaining to an <br/>
<a id="pl.8.35"></a><var>8.35</var>application or payment under this chapter.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 8. <b>[12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT </b><br/>
<a id="pl.9.2"></a><var>9.2</var><b>REQUIRED.</b><br/>
<a id="pl.9.3"></a><var>9.3</var>If an applicant subsequently recovers eligible costs from another source after <br/>
<a id="pl.9.4"></a><var>9.4</var>receiving payment under this chapter, the applicant must pay the commissioner an amount <br/>
<a id="pl.9.5"></a><var>9.5</var>equal to the corresponding state funds received within 30 days. The commissioner must <br/>
<a id="pl.9.6"></a><var>9.6</var>deposit any repayment in the disaster response contingency account in section 12.221, <br/>
<a id="pl.9.7"></a><var>9.7</var>subdivision 6.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.9.8"></a><var>9.8</var>    Sec. 9. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.9.9"></a><var>9.9</var>This article is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.9.12"></a><var>9.12</var>    Section 1. <b>TRANSFER; EMERGENCY MANAGEMENT.</b><br/>
<a id="pl.9.13"></a><var>9.13</var>On July 1, 2014, the commissioner of management and budget shall transfer <br/>
<a id="pl.9.14"></a><var>9.14</var>$3,000,000 from the general fund to the disaster assistance contingency account <br/>
<a id="pl.9.15"></a><var>9.15</var>established in Minnesota Statutes, section 12.221, subdivision 6.<br/>